In advance of Tax Day, Rep. Ben Ray Luján highlighted a study by the Citizens for Tax Justice (CTJ), a public policy organization specializing in federal tax issues, showing that 99 percent of working families in New Mexico received a tax cut in 2009 through the American Recovery and Reinvestment Act, which Rep. Luján supported. According to CTJ, "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" across the country.
"Throughout New Mexico, tax cuts enacted in 2009 put money into the pockets of working families," said Rep. Luján. "I was proud to vote for tax cuts for 99 percent of New Mexico's working families through the American Recovery and Reinvestment Act, and I will continue fighting for families throughout New Mexico."
According to the study, individuals in New Mexico received an average of $1,012 from tax breaks enacted by Congress. Individuals and families at all income brackets income levels received tax cuts. Expanding the Child Tax Credit and Earned Income Tax Credit helped families in lower income brackets while the Making Work Pay Credit helped middle class families.
The study reviewed the tax cuts under the American Recovery and Reinvestment Act:
* The "Making Work Pay" tax credit gave most working people a $400 refundable tax credit. This credit is worth $800 to most working married couples. More than 94 percent of all working families and individuals received this tax cut.
* Changes to the $1,000 per-child tax credit and the earned-income tax credit gave an average of $872 each to 12 million, mostly low-income working families with children.
* Relief from the Alternative Minimum Tax for 2009 reduced taxes for 25 million mostly upper-income couples and individuals.
* A new, partially refundable education credit was also enacted for 2009.
A former Reagan policy advisor, Bruce Bartlet, recognized the tax relief under this Congress and the Obama Administration, " federal taxes are very considerably lower by every measure since Obama became president."