Congressman Bob Latta (R-Bowling Green) issued the following statement regarding the House vote on H.R. 8, the American Taxpayer Relief Act:
"Tonight, I supported a bill that provides tax relief for hardworking American families, making permanent tax cuts that Republicans originally crafted and enacted in 2001 and 2003, and prevented the largest tax hike in American history.
"Besides making permanent the tax rates for singles at $400,000 and for married couples at $450,000, this bill will prevent 26 million Americans from paying the Alternative Minimum Tax (AMT) and helps our small businesses and farmers by keeping the death tax exemption level at $5 million. In addition to extending permanent tax relief for small businesses and middle class families, I am pleased to see the bill included an extension of the farm bill, which will prevent current law from allowing milk prices to skyrocket, as well as repealing the pay increase for Members of Congress and White House staff.
"Our first step to avoiding the fiscal cliff has been taken, but in order to achieve a truly balanced approach and put our economy back on the path to prosperity, we must work towards comprehensive tax reform, reducing our deficit, and cut the out-of-control spending that is occurring in Washington."
Provisions in H.R. 8, the American Taxpayer Relief Act are:
· Marginal tax rates -- permanent extension of current policy up to $400,000 for singles and $450,000 for married couples
· Capital gains and dividends -- makes permanent the 15% top capital gains and dividends up to $400,000 for singles and $450,000 for married couples; 20% rate for both above threshold
· Death tax -- permanent extension of current policy on portability and unification with a $5 million exemption indexed for inflation and a 40% top rate
· Alternative Minimum Tax (AMT) for individuals -- permanently indexes AMT for inflation, protecting millions of Americans from an unexpected tax increase
· Child tax credit -- makes permanent the refundable $1,000 child tax credit, preventing a reversion to the $500 level
· No increase in the debt limit -- remains at $16.394 trillion
· Repeals the Community Living Assistance Services and Supports (CLASS) Act entitlement -- long term care program contained in Obamacare (PPACA)
· Contains a 1 year extension of the "doc fix", the Sustainable Growth Rate (SGR), which ensures providers are paid for caring for Medicare patients, thus protecting seniors' access to health care
· Farm bill -- provides a 1 year extension of the 2008 Farm Bill, avoiding reverting back to 1949 law
· Prevents any cost-of-living adjustment to the pay for Members of Congress for FY 2013