On Tax Day, Americans Benefit from Major Tax Cuts
April 14, 2010
Tomorrow is known as tax day, and this year taxpayers can take advantage of more than 25 different tax cuts worth more than $800 billion passed by this Congress designed to help working families and small businesses.
“We have focused on cutting taxes for ordinary Americans,” said Congressman Mike Thompson (D-CA). “And it's worked. According to IRS figures, the average tax refund this year is $3,000, which is nearly 9.4% larger than last year's average. The Recovery Act was the largest tax cut in history, and it's making a difference for working families.”
A report released this week by the Citizens for Tax Justice shows that since January 2009, 98% of American families have seen their taxes cut. These tax cuts saved working families and individuals an average of $1,158 on their tax returns. Bruce Bartlett, President Reagan's domestic policy advisor, noted that “federal taxes are very considerably lower by every measure since Obama became president.”
Congressman Thompson highlighted several tax cuts he thought were making a particularly important impact on our communities:
Congress also provided important tax breaks to businesses, including expanded small business expensing, bonus depreciation, small business loss carrybacks, and increased incentives to invest in small businesses. And, the Recovery Act provides over $20 billion in tax credits over ten years to promote renewable energy and energy efficiency incentives, including Congressman Thompson's provisions that make it easier for homeowners and small businesses to access solar technology.
Thompson has been a leading champion in Congress for tax cuts that promote sustainability and conservation of natural resources. These include a deduction for land placed in conservation easements and tax breaks for solar manufacturers.
To find out what tax cuts you may qualify for, check the White House online tax calculator by clicking here.
“We have focused on cutting taxes for ordinary Americans,” said Congressman Mike Thompson (D-CA). “And it's worked. According to IRS figures, the average tax refund this year is $3,000, which is nearly 9.4% larger than last year's average. The Recovery Act was the largest tax cut in history, and it's making a difference for working families.”
A report released this week by the Citizens for Tax Justice shows that since January 2009, 98% of American families have seen their taxes cut. These tax cuts saved working families and individuals an average of $1,158 on their tax returns. Bruce Bartlett, President Reagan's domestic policy advisor, noted that “federal taxes are very considerably lower by every measure since Obama became president.”
Congressman Thompson highlighted several tax cuts he thought were making a particularly important impact on our communities:
- The Making Work Pay tax credit - Ninety-five percent of working families received the Recovery Act's Making Work Pay tax credit of $400 for an individual or $800 for married couples filing jointly in their 2009 paychecks - and will continue to see these benefits in 2010. In our district, 249,000 families are benefiting from the Making Work Pay tax credit.
- Tax credits for college expenses - More than four million additional students will be able to attend college thanks to this tax credit, which provides eligible families and students with up to $2,500 in tax savings.
- Tax credits for energy efficient renovations - Taxpayers are eligible for up to $1,500 in tax credits for making energy-efficient improvements to their homes, such as adding insulation and installing energy efficient windows.
- Alternative Minimum Tax - 26 million middle-class families are protected from the alternative minimum tax, including 45,000 tax filers in the 1st Congressional District. The tax was originally designed to affect the very wealthy, but has not been adjusted to reflect inflation since it was originally written.
Congress also provided important tax breaks to businesses, including expanded small business expensing, bonus depreciation, small business loss carrybacks, and increased incentives to invest in small businesses. And, the Recovery Act provides over $20 billion in tax credits over ten years to promote renewable energy and energy efficiency incentives, including Congressman Thompson's provisions that make it easier for homeowners and small businesses to access solar technology.
Thompson has been a leading champion in Congress for tax cuts that promote sustainability and conservation of natural resources. These include a deduction for land placed in conservation easements and tax breaks for solar manufacturers.
To find out what tax cuts you may qualify for, check the White House online tax calculator by clicking here.