Arizona lawmaker supports legislation aimed at laying the foundation for economic prosperity
WASHINGTON – U.S. Rep. Gabrielle Giffords joined a majority of the House in supporting legislation aimed at extending tax relief, creating jobs and promoting long-term economic growth.
“Middle class families and small businesses in Arizona and across the nation have been hit especially hard by the downturn in the economy,” said Giffords. “The bill we passed will bring them much-needed relief while laying the foundation for future economic prosperity.”
The Tax Extenders Act of 2009 passed the House of Representatives on Wednesday in a 241-to-181 vote. It now goes to the Senate.
The bill:
• Strengthens job creation by American businesses here at home and U.S. competitiveness by extending the R&D tax credit for nearly 11,000 corporations and the special rules for active financing income;
• Provides up to 30 million homeowners with property tax relief;
• Benefits 12 million families through the state and local sales tax deduction;
• Helps 4.5 million families better afford college with the tuition deduction;
• Saves 3.4 million teachers money with a deduction for classroom expenses;
• Takes steps to make sure that activated military reservists do not suffer a pay cut by providing a tax credit for small businesses that continue to pay their National Guard and Reserve employees when they are called up to serve;
• Helps businesses and individuals to invest in and succeed in certain economically depressed areas with the extension of tax incentives for Empowerment Zones and Renewal Communities, as well as the new markets tax credit;
• Provides substantial assistance for the real estate sector by (1) providing more than $5 billion to encourage improvements to retail stores, construction of restaurants and making certain other improvements to real property; (2) extending the low-income housing tax credit exchange program which has invested more than $3.7 billion in the construction of more than 49,000 low-income housing units; (3) providing nearly $3 billion to encourage economic development in economically distressed communities.
• Strengthens American-made energy with tax incentives for the production of biodiesel and renewable diesel.
The bill is paid for by ending preferential tax treatment for investment fund managers and combating offshore tax evasion.
Specifically, it closes tax loopholes that allow investment fund managers to pay a lower tax rate than other Americans. Under the bill, investment fund managers would be taxed at ordinary income rates for the service income they receive as compensation. It also provides the U.S. Treasury Department with new tools to find and prosecute individuals that hide assets overseas from the Internal Revenue Service.