|
Dear Mr. McKnight:
Thank you for taking the time to contact me about tax provisions that are set to expire at the end of 2012. I appreciate hearing from you about this issue.
In 2001 and 2003, President Bush signed into law a series of temporary tax cuts that were set to expire at the end of 2010. In December 2010, Congress extended these cuts for an additional two years. As a result, tax rates are currently scheduled to return to their pre-Bush levels on January 1, 2013.
The expiration of these tax cuts is part of a series of fiscal changes that are scheduled to occur at the end of this year. Many economists are concerned that having such a significant change in our Nation’s taxation and spending levels over such a short period of time will negatively affect the economy, possibly leading to another recession. As a result, the President and Congress are currently negotiating a proposal to prevent some of these changes from taking place. With our economy still rebounding from the recession, I believe it is critical that Congress act to protect middle-class families from a tax increase next year as a part of this process.
In July, the Senate took a first step towards preventing a tax increase on the middle-class by passing legislation that would extend existing tax rates on all income up to $200,000 ($250,000 for married couples) for one year. This would prevent a tax increase of about $2,200 on a typical middle-class family of four and extend tax relief to 97 percent of small businesses, providing them with the certainty they need to promote job creation. It would also benefit taxpayers who earn above the threshold, as they would not have to pay additional taxes on any of their income up to $200,000 or $250,000. Unfortunately, the House of Representatives has yet to act on this bill.
I appreciate hearing your thoughts on how to best deal with the many changes to our tax code that have been proposed, and I look forward to working with my colleagues to make needed reforms. As Congress works to address our Nation's fiscal problems, please be assured I will keep your views in mind.
Again, thank you for sharing your thoughts with me. Please do not hesitate to contact me in the future about this or any other matter of importance to you.
For more information on this or other issues, I encourage you to visit my website, http://casey.senate.gov. I hope you will find this online office a comprehensive resource to stay up-to-date on my work in Washington, request assistance from my office or share with me your thoughts on the issues that matter most to you and to Pennsylvania.
Sincerely,
Bob Casey
United States Senator
|
Comments(2)