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Issues: Working for Taxpayers“I support the middle class tax cuts, because I believe it is critical to our economy to not over-tax hard-working lower to middle class Americans.” With a record of supporting tax reductions, balancing budgets and controlling government spending, Nebraska’s Senator Ben Nelson has put into proactive his believe that taxpayers know better what to do with their money than government bureaucrats. Since coming to the Senate in 2001, Nelson has advocated and played a key role in passing several tax cuts that were designed to put more money in the pockets of working families and spur a struggling national economy. During Nelson’s time in the U.S. Senate, six major tax cut bills or tax cut extensions have been signed into law. Senator Nelson supported all of them. Senator Nelson played a vital role in both the 2001 and 2003 tax cuts. During 2001, he was one of a handful of centrist senators that helped craft the proposal to cut taxes by $1.3 trillion that was ultimately signed into law. During the 2003 tax cut, the dynamics had changed. The economy was hurting, including the economy of nearly every state in the country. Senator Nelson joined forces with Republican Senator Susan Collins to insist that aid for the states should be part of any tax package. Nelson was frequently heard saying, “Fifteen thousand kids in Nebraska have lost health insurance in the last year. More than two thousand families have lost childcare subsidies. Twenty thousand farms may go under. Teachers are losing their jobs and all Nebraskans are paying higher taxes. Does it make sense to cut taxes in Washington while they raise them in Lincoln to meet obligations for Nebraska families?” Senator Nelson’s persistence paid off. The final $350 billion tax package included Nelson’s $20 billion to help the states, of which Nebraska received $108 million State fiscal relief helped to ensure that low-income families, children, seniors, and persons with disabilities most affected by the economic downturn received the health and social services they need. It helped to ensure sufficient financial resources for the hospitals, clinics, nursing homes, and doctors that provide these essential services. It also served as a disincentive to states to raise taxes to cover the costs of these programs. The bipartisan plan supported by Nelson provided $20 billion in federal assistance through a temporary increase in the federal Medicaid matching rate and block grants they can use for essential services or unfunded federal mandates. Senator Nelson led this nearly year-long effort, along with Senators Susan Collins (Maine), Jay Rockefeller (West Virginia), and Gordon Smith (Oregon). This bill provided immediate assistance in a time of crisis and prevented cuts in essential services when people need them most. Nebraska received more than $108 million in new funds in 2003 to help ease its budget crunch. Senator Nelson worked tirelessly to include State Fiscal Relief in the 2003 tax package because he understands that it doesn't make sense to cut taxes in Washington without doing something about the tax hikes in Lincoln and other state capitols. Since 2003, Senator Nelson has voted to extend important tax cuts, including legislation to mitigate the affects of the Alternative Minimum tax on middle-income taxpayers; legislation to extend the capital gains and dividends tax cuts to keep the economy going strong; and extensions of tax breaks for the small business which make up the vast majority of Nebraska’s economy. How do the tax cuts help you?The tax cuts Senator Nelson has supported have resulted in lower taxes for 656,000 Nebraska taxpayers. The cumulative impact of the 2001, 2003, and 2004 tax cuts (including the Economic Growth Tax Relief Reconcilation Act (EGTRRA), the Jobs and Growth Tax Relief Reconciliaiton Act (JGTRRA) and the Jumpstart Our Business Strength (JOBS) Act) has resulted in nearly $5 billion in tax relief for Nebraska taxpayers. REDUCING TAXES
NEW 10-PERCENT BRACKET
REDUCTION IN INCOME TAX RATES
REDUCTION OF MARRIAGE PENALTY
INCREASE IN CHILD TAX CREDIT
REDUCED TAX RATES ON CAPITAL GAINS AND CORPORATE DIVIDENDS
BUSINESS BENEFITS FROM TAX CUTS
SOURCE:
U.S. Department of Treasury, Office of Tax Policy, March 20, 2007 Updated: 1.31.08 |
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