Lower Taxes, Larger Refunds This Tax Day
Tax Refunds Up Ten Percent This Year
Congressman Henry Cuellar (TX-28) today announced that this tax day, April 15, 2010, millions of American families, businesses and hard-working Texans will see lower taxes and larger refunds thanks to the economic stimulus package passed by Congress in 2009, and the health care reform and jobs bills signed into law this year.Congressman Henry Cuellar (TX-28) today announced that this tax day, April 15, 2010, millions of American families, businesses and hard-working Texans will see lower taxes and larger refunds thanks to the economic stimulus package passed by Congress in 2009, and the health care reform and jobs bills signed into law this year.
“These are record-setting tax cuts for 95 percent of the nation’s hard-working families,” said Congressman Cuellar. “For the majority of Americans, tax refunds are up an average of ten percent thanks to the unprecedented action we’ve taken to lower taxes. This puts hard-earned money back into the pockets of everyday people.”
The American Recovery and Reinvestment Act, also know as the “stimulus” package, has already provided over $160 billion in tax relief for families and businesses as a result of over 25 new tax cuts for individuals, homebuyers, small businesses and the self-employed.
The non-partisan organization Citizens for Tax Justice estimates these tax cuts saved individuals and families an average of $1,158 on taxes this year. The “Making Work Pay” tax cut, passed by Congress, reduced withholding on wages in 2009 for most individuals by $400 and $800 for married couples. The Recovery Act also provided the “American Opportunity Credit” of up to $2,500 for college tuition, plus first-time home buyer credits worth $8,000.
Health care reform included immediate tax cuts for the nation’s small businesses with fewer than 25 employees. If these businesses purchase health insurance for their workers and have average annual wages of $50,000 or less, they immediately qualify for tax credits of up to 35 percent of their employees’ premiums. Beginning in 2014, this increases to 50 percent of those premiums and it’s estimated that 60 percent of the nation’s small businesses will qualify for these tax cuts.
The Hiring Incentives to Restore Employment (HIRE) Act also provides a payroll tax holiday to businesses that hire unemployed workers and an income tax credit of $1,000 for businesses that retain those employees. Signed by the President this year, HIRE also includes small business capital expenditure tax credits of up to $250,000, letting small businesses benefit from tax cuts in these tough economic times.
“When you add up the benefits, there are more tax cuts for average Americans and small businesses,” said Congressman Cuellar. “This is good for our families and for those hard-working people at home.”
For a list of tax cuts included in the Recovery Act, health care reform, the HIRE Act and other legislation, please visit: http://majorityleader.gov/docUploads/TaxBreaks2010.pdf
To see the Citizens for Tax Justice report, please visit: http://ctj.org/pdf/truthaboutobamataxcuts.pdf
Congressman Henry Cuellar is a member of the U.S. House Homeland Security, Agriculture, and Government Oversight & Reform Committees in the 111th Congress. Accessibility to constituents, education, health care, economic development, and national security are his priorities. Congressman Cuellar is also a Senior Whip and member of the Blue Dog Coalition.