President Bush Calls on Congress to Make Tax Relief Permanent (Text Only)

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Tax Relief Should be Made Permanent

Unfortunately, the tax relief legislation as passed by Congress contains a provision that causes it to sunset at the end of 2010. If the sunset provision is not repealed:
Taxes would rise by an average of $1,040 for 104 million taxpayers, including workers, married couples and families with children; and
Taxes would increase by over $200 billion in 2011.

For example:

Eliminating the 10% rate bracket would cause taxes to increase by $45 billion;
Married couples would pay an additional $10 billion because marriage penalty relief provisions would not be extended; and
Restoration of the death tax and related provisions would increase taxes by $69 billion.

Failing to make the President's tax cut permanent could have other adverse effects. For example:

IRA funding limits would shrink by more than 60%; and
Other changes would make it costlier for prospective parents to adopt a special needs child or for working parents to pay for child care.

In 2011, a median-income family of 4 would see their taxes increase by $1,866 relative to an extension of the President's tax cut.

Taxes would increase by $963 (relative to extending the President's tax cut) for a single mother with one child who earns $25,000.

Tax Hike in 2011 for 4-person families

A family of four with an income equivalent to $36,268 in 2002 will face a tax hike of $2,035 in 2011.
A family of four with an income equivalent to $46,756 in 2002 will face a tax hike of $1,928 in 2011- a 100% tax increase.
A family of four with an income equivalent to $69,328 in 2002 will face a tax hike of $2,000 in 2011 - a 33% tax increase.

The time to fix this problem is now, so families can make their plans for the future today, without needlessly worrying how these plans could be jeopardized by stubborn inaction in the future. Congress should act to make the President's tax relief plan permanent.

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