House Votes To Make Tax Relief Permanent

April 18, 2002

WASHINGTON, DC – Calling it the “right thing to do for America’s working families,” Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, voted today to make permanent tax relief approved with bipartisan support last year. The measure was approved today with bipartisan support, 229-198.

“As Americans paid their taxes this year, they saw the real benefits of last year’s tax relief,” Dreier said. “I doubt many people would want to see that relief stripped away in 2011. By making it permanent, we’re giving families and businesses the peace of mind they need to plan for their future. Our tax code is already confusing, we don’t need to add to the uncertainty by giving and then taking away hard earned tax relief.”

Due to an arcane Senate rule the tax relief provided by H.R. 1836, The Economic Growth and Tax Relief Reconciliation Act of 2001, will expire or “sunset” on December 31, 2010. The measure approved today in the House would repeal the sunset provision contained in H.R. 1836, making the tax relief permanent. Without the sunset repeal, the American people will face the largest tax increase in history on January 1, 2011.

During today’s debate, Dreier noted that time and time again, tax relief has actually increased federal revenues by creating economic growth. As impetus for today’s action, he also pointed to the complicated scenario families would face in planning their estates if the repeal of the death tax was reversed after ten years.

“If we sat back and allowed this tax relief to just disappear, we would be providing disincentives for business and personal investments and estate planning,” said Dreier. “This would not only be unfair, it would be bad for our economy. If not for the tax relief we passed last year, our economy would have suffered even more than it did after the awful events of September. We know we’re on the way back to economic recovery. We know that tax relief spurs economic growth, and we know we need it now more than ever.”