MEASURE PREVENTS UNFAIR TREATMENT OF FLORIDA RESIDENTS BY CONTINUING DEDUCTION OF STATE AND LOCAL SALES TAXES
 

“The American people continue to send a loud message that job creation and economic growth are their top priorities, and with 15 million Americans looking for work, we cannot allow a tax increase on everyone at the end of this year,” said Rep. Cliff Stearns (R-Sixth).  “Enactment of this bill will reduce the fog of uncertainty that hampers vigorous economic growth.  The public expects a bipartisan focus on the nation’s priorities, and this measure reflects that.”

Stearns voted to approve H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act, which passed 277 to 148.  The bill extends for two years the 2001 and 2003 tax relief provisions that are expiring at the end of this month for two years.  Noted Stearns, “This includes the reduced top tax rate of 35%, maintaining the bottom rate of 10%, the $1,000 dollar child credit, the marriage penalty relief, and the 15% rate on dividends and capital gains. The bill also has a one-year reduction of 2% in the employee portion of the Social Security payroll tax, putting more money into the pockets of every working American.”

H.R. 4853 continues to provide current unemployment benefits through 2011. “Hard hit Florida has an unemployment rate exceeding the national level, and my community faces 14% unemployment,” pointed out Stearns.“I support maintaining this safety net for those out of work, but it should be paid for either with unspent stimulus funds or by reducing spending elsewhere.  However, the overall weakness of the economy requires approval of this agreement, and under the new majority next year, Congress should act responsibly and pay for continuing these benefits.”

Added Stearns, “This bill also extends for two years the tax deduction for state and local sales taxes, making the tax system equitable for the citizens of Florida and other states that rely on sales taxes instead of state income taxes since state income taxes are still deductible without this bill.  In addition, it extends tax credit provisions for small businesses, among them the research and development tax credit and the credit for eligible small businesses owned by activated military reservists.”

Although the “death tax” was eliminated this year, under current law it would return with a rate of up to 55% and a $1 million exemption for next year and beyond.  This bill provides one rate of 35% and a $5 million exemption for two years.