From: Office of Sen. Trent Lott Filed 5/17/06 GCN
U.S. Senator Trent Lott of Mississippi joined President Bush at the White House Wednesday afternoon to witness the signing of the Tax Increase Prevention Act.
“This is a victory for working Americans of all incomes,” Senator Lott said. “In Mississippi alone, it will reduce the rates on capital gains taxes on home and property sales and on dividends for 148,000 folks, and it will enable 181,000 small business men and women to quadruple their business expensing.”
The new law also prevents the onerous alternative minimum tax (AMT) – an added tax on income – from touching millions of Americans by exempting it from middle income earners making up to $62,550 for married couples and $42,500 for single tax filers.
“The AMT currently impacts around three million people annually,” Senator Lott said. “If we don’t continue to patch it, the AMT is projected to reach 30 million families by the end of the decade and 40 million families by 2013. I have fought to completely abolish the AMT, and in 1999, we passed legislation to do just that. Unfortunately, that bill was vetoed by President Clinton. The provision in today’s new law will keep up to 15 million Americans (mostly middle income) from being hit by this stealth tax next year.
Senator Lott heralded the Tax Increase Prevention Act, written in the Senate Finance Committee on which he serves, for coming at a much-needed time as so many Americans recover from Katrina’s unprecedented disaster. “It continues the trend of the 2003 and 2004 tax relief measures which reduced the taxes of almost 900,000 Mississippians, reduced the marriage penalty for 244,000 married couples in our state and increased the child tax credit for 278,000 married couples in Mississippi,” he said. “These measures have kept our economy growing amid unprecedented threats from terrorism and soaring energy prices. Tax relief as an economic stimulus works, and we will continue tax policies that encourage growth, entrepreneurship, low unemployment and sound personal investment. And I will not be satisfied until all these tax cuts are made permanent.”