U.S. Rep. Ron Kind (D-WI) today recognized findings from a new report highlighting tax cuts included in the American Recovery and Reinvestment Act.
According to the Citizens for Tax Justice (CTJ), a public policy organization specializing in federal tax issues, "the major tax cuts enacted in the 2009 economic stimulus bill actually reduced federal income taxes for tax year 2009 for 98% of all working families and individuals."
"Most people don't realize that tax cuts are the biggest individual piece of the Recovery Act," said Rep. Kind. "President Obama and Congress gave 95% of working Americans one of the largest tax cuts in history through the Recovery Act. And as you file your 2009 income taxes, you may qualify for a series of other tax cuts. And if you missed out on any of these tax cuts, there is still time to amend your 2009 return."
Taxpayers in western Wisconsin and across the county can benefit from tax savings including:
* Nearly $100 Billion - Tax relief provided through the Recovery Act so far that has gone directly in the pockets of working families.
* Nearly $3,000 - The record average tax refund taxpayers are seeing this tax season.
* Nearly 10% - The percentage average tax refunds are up this year - something the IRS says is largely due to Recovery Act tax credits.
* 95% - The percentage of working families benefiting from the Recovery Act's Making Work Pay tax credit, making it the broadest tax credit in the history of the country.
* Up to $2,500 - The expanded amount eligible taxpayers can collect with the American Opportunity Credit to help cover college expanses thanks to the Recovery Act.
* Up to $8,000 - The amount new homebuyers can collect this year for purchasing their first home thanks to the Recovery Act's expansion of the First-Time Homebuyers Tax Credit. $6,500 - the amount qualified non-first time homebuyers can collect.
* 700,000 - The number of new homeowners who qualified for the First-Time Homebuyers Tax Credit through the Recovery Act in 2009.
* Up to $1,500 - The amount homeowners can collect this year on improvements made to their homes like energy-efficient windows, doors and insulation thanks to Recovery Act tax credits.
Small businesses and family farms also benefit from the Recovery Act. The Recovery Act spurs investments in small businesses by cutting the capital gains tax on investors in small businesses who buy stock (in the next two years) and hold it for more than five years. The Act also extends enhanced small business expensing, which doubles the amount small businesses can immediately write off their taxes for capital investments and purchases of new equipment made in 2009 from $125,000 to $250,000 and increases cash flow by providing a 5-year carryback of 2008 net operating losses for small businesses.
"According to the Citizens for Tax Justice, working people in Wisconsin received $1,138, on average, from these breaks. These tax cuts are easing the burden on families, small businesses, and family farms struggling to make ends meet, while injecting more demand into the economy to create jobs in western Wisconsin."