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Washington, Oct 4, 2004 - Today, the Working Families Tax Relief Act of 2004 [H.R. 1308] was signed into law. This legislation passed the House in March with Congressman Royce's support. It extends relief from the unfair marriage penalty tax, keeps the newly created 10 percent tax bracket for low-income Americans, and ensures the full 1,000 dollars per child tax credit.

"If Congress had not acted to make these tax relief provisions permanent and get it to the President's desk, millions of American taxpayers would have been saddled with higher taxes next year and on into the future," said Royce.

In 2001, Congress passed, and the President signed into law, a tax relief plan that is benefiting millions of Americans by putting more money in their pockets. However some of the provisions of that plan were set to expire in 2005 and 2010. By extending, and making permanent, these provisions today, this newly enacted law will prevent tax increases on millions of American families next year. It will also allow them to plan for the future knowing that their taxes will not increase.

Because of this tax relief law, 94 million Americans will have a lower tax bill next year, including 70 million women and 38 million families with children. In fact, a family of four with an income of 40,000 dollars will save more than 900 dollars on their taxes next year.

This law also supports military men and women living in combat zones by providing nearly 200 million dollars of assistance in the form of higher child credit refunds and earned income tax credits.

Middle-class taxpayers will also be protected from the Alternative Minimum Tax by exempting from it the first 58,000 dollars of a married couple's income. Without this AMT relief, taxpayers would be saddled with an extra 23 billion dollars AMT levy through 2005.

"Allowing Americans to keep more of their money and not forcing them to send it off to Washington is keeping our economy rolling. The tax relief passed in 2001 and made permanent by today's action has help millions of families pay bills and small businesses create jobs," said Royce.