TIBERI WORKS TO KEEP TAXES LOW
U.S. Congressman Pat Tiberi (R-OH) late yesterday introduced an amendment to the fiscal year 2008 Budget that would help keep taxes low for individual taxpayers, families and Central Ohio small businesses. The amendment would ensure the continuation of the lower marginal income tax rates Americans are now paying, as a result of the 2001 tax cuts. The amendment would also extend the new 10 percent tax bracket beyond 2010, when it is set to expire.
"Without this amendment, more than 4 million Ohioans would see their taxes increase and the country's 27 million small businesses would see their taxes balloon by nearly $4,000 a year," said Congressman Tiberi. "I believe that taxpayers know better how to spend their money than bureaucrats in Washington, D.C. Taxing our way out of deficit is not the way to encourage economic growth and actually penalizes the least fortunate by placing them back on the tax roles."
Without this measure, income taxes would increase when the tax 2001 and 2003 tax cuts expire, and the new 10 percent tax bracket, which provides relief to lower income individuals, would be eliminated. In 2005 more than 25 million tax returns fell in to the 10 percent bracket. That's one quarter of all returns with taxable income!
"Not only does the Democratic Budget hit lower income Ohioans hard by allowing the rates to increase, but some of Ohio's small businesses will have to pay nearly $4,000 more in taxes per year. In fact, nationwide, more than a half a million small businesses will see their taxes raised higher than big corporations," added Congressman Tiberi.
Members of the Budget Committee voted on Congressman Tiberi's amendment Wednesday evening. The measure failed by a party line vote of 16-22. Congressman Tiberi will continue to work with Republicans and Democrats to stop federal taxes from increasing for every American worker.