Today, Congressman Walz voted to cut taxes for middle class American taxpayers to help fuel our economic recovery. H.R. 4853, the Middle Class Tax Relief Act of 2010, permanently extends the reduced individual income tax rates for all income under $200,000, heavily targeting middle-income workers. Upper-income Americans will continue to pay these lower rates on the portion of their income under $200,000 ($250,000 for joint filers) as well.
"By cutting taxes for the middle-class, we put money into the pockets of small businesses and hard-working families who will spend it at the local grocery store or on fixing up their homes," said Congressman Tim Walz. "Growing our economy and creating jobs will help us tackle the long-term national debt facing our country."
The tax cuts of 2001 created a new 10-percent regular income tax bracket for a portion of taxable income that was previously taxed at 15 percent. They also reduced the other regular income tax rates, which are set to expire December 31, 2010. H.R. 4853 would permanently extend the 10%, 25% and 28% rate brackets. It also permanently extends the 33% rate for income of $200,000 or less for single filers ($250,000 or less for joint filers). All Americans will benefit from this tax structure--for those making over $200,000, all income below that amount will be taxed at the lower levels as well. Additionally, it extends the child tax credit, the Earned Income Tax Credit, small business expensing, and ensures married couples do not pay more than they would if they were two individuals filing separately.