Congressman Jim Matheson today voted for a one-year extension of expiring tax cuts to help Utah families, small businesses and the struggling economy. Matheson supported H.R. 8 -- the Job Protection and Recession Prevention Act.
"Economists warn that the worst case scenario would be to have taxes suddenly rise on January 1, when our economy is still in a fragile recovery. Nearly every Utah family and small business would be affected at a time when they are juggling housing, education, health care and energy costs," said Matheson. "This bill allows them to keep more of their hard-earned money and to have more certainty about their own family budgeting and tax-planning."
Matheson said the bill temporarily extends --through 2013-- all the reduced tax rate and other tax benefits enacted in 2001 and 2003 that are scheduled to expire on Dec. 31st. It provides a two-year "patch" to prevent the alternative minimum tax from hitting 27 million taxpayers and allows small businesses to deduct an increased amount of their capital expenditures for another year. It maintains the maximum estate tax rate of 35% while keeping the exemption amount at $5 million.
Matheson said in particular Utah families benefit from the doubled child tax credit -- from $500 to $1,000, and the 10 percent rate that applies to the first $6,000 of income for individuals and $12,000 for couples.
"Eliminating uncertainty and staying focused on growing the economy and bolstering job creation remains my highest priority," said Matheson.