FROM THE OFFICE OF PUBLIC AFFAIRS

September 23, 2004
JS-1945

Snow Applauds Congress for Keeping Economic Recovery on Track & Simplifying the Tax Code

I applaud Congress for taking action to keep our economic recovery on track and prevent a tax increase on nearly 94 million Americans, especially lower and middle income families who benefit from the lowest 10% bracket, the increased child credit, marriage penalty relief and alternative minimum tax relief (AMT). These provisions, enacted in the Jobs & Growth Tax Relief Act of 2003, expire at the end of the year.

In addition to extending the provisions enacted in the Jobs & Growth Tax Relief Act of 2003, the Conference Report provides assistance to those who are bearing the greatest burden and paying the highest sacrifice to wage the war against terrorism - our military personnel and their families.  Allowing military families to include tax-free combat pay when calculating their refundable child credit and earned income tax credit will, in many instances, increase the credits to which they are entitled. 

H.R. 1308 "Working Families Tax Relief Act of 2004," includes a provision similar to the Administration's proposal to create a uniform definition of a child for tax purposes.  This provision helps realize the President's overall goal of simplifying the Tax Code by creating one definition for the dependent exemption, head-of-household filing status, Earned Income Tax Credit, child credit, and dependent care tax credit.  This uniform definition will make it easier for families to claim the different tax benefits and will help reduce errors.

Finally, the conferees took the added step of extending many of the annual expiring tax provisions that are included in the President's budget request and that are beneficial to many of our nation's businesses and individuals.  The Research and Development tax credit, in particular, is vital to encouraging the technological innovation important to our continued economic growth.

I look forward to swift Congressional action to pass this legislation, because extending these provisions will help our economy to continue expanding and creating jobs at increased levels of growth both now and in the future. 

-30-