Last night Rep. Ken Calvert (R-CA) voted in favor of the Middle Class Tax Relief Act of 2010 (H.R. 4853) which prevents a tax increase on working Americans, small businesses and job-creating investments. The bill passed the House by a vote of 277 to 148.
"The last thing our economy needs right now is crushing tax increases, and I was pleased to see that these tax hikes will not be added to the backs of hard-working Americans," Rep. Calvert said. "Stopping all the job-killing tax hikes scheduled for January 1, 2011 is an important first step to help our economy. The strength of our economy can be measured by the ability of private businesses to grow, invest and hire. As a former small business owner, I fully understand the crucial role small businesses play in the district and throughout the country, and I will be doing everything I can to see to it that these low tax rates are extended permanently."
H.R. 4853 temporarily extends many crucial tax provisions through December 31, 2012, including the Alternative Minimum Tax (AMT) relief; individual income rates; capital gains and dividends; child tax credit; marriage penalty relief; adoption and child care tax credit; and earned income tax credit. It also reduces the Death Tax to 35 percent (down from 55 percent next year) and increases the exemption amount to $5 million per spouse (up from $1 million next year).
Without passage of this bill, $3.8 trillion in tax increases would have kicked in on January 1, 2011 and would have been paid for by every taxpayer and most small businesses. Middle-class families would have lost roughly $100 per week out of their paychecks, and ultimately it would have been a disaster for family budgets, employers and the economy. H.R. 4853 received broad support from the business community, large and small, including endorsements from the U.S. Chamber of Commerce, the National Federation of Independent Businesses and the Business Roundtable.