Garrett Gazette - December 12, 2006
Washington,
Dec 12, 2006 -
Dear Friends:
When you file your 2006 tax return next year, you will be able to get a refund for the long-distance Federal excise taxes you have been paying on your phone bills for years. The U.S. Department of the Treasury expects to refund about $10 billion to individuals.
In fact, you will be able to request a refund for the taxes you paid between February 28, 2003 and August 1, 2006, when the tax was eliminated. To make it easier for taxpayers who may not be able to gather all their old phone bills for that period and determine the exact refund due, the IRS will offer a standard refund between $30 and $60. The standard refund, based on an average long-distance phone tax paid by similarly sized families or households over the 41-month period, will be easily applied through a single line on the standard tax forms (1040, 1040A, 1040NR, or 1040EZ). A new form is available for a refund for those individuals who don't file a regular income tax return, 1040EZ-T.
Individual taxpayers will have the option of calculating the exact tax paid as well. And, businesses and non-profit organizations can also apply for a refund using a new form, 8913. That refund will be based on actual tax paid.
For more information about this tax refund, please visit the IRS website's Telephone Excise Tax webpage at http://www.irs.gov/businesses/small/article/0,,id=160214,00.html.
Sincerely,
Scott Garrett
Member of Congress
ISSUE OF THE WEEK: ECONOMY CONTINUES ITS UPWARD TRENDS
Last week, the Federal government announced that job creation had reached more than 7 million new jobs since August 2003. This is more jobs than all the other major industrialized nations combined. The 132,000 jobs created in November represents the 39th consecutive month of job growth. Unemployment is down to 4.5 percent, which is lower than last year at this time.
Furthermore, real wages have risen by 2.8 percent over the past year, meaning an extra $1,687 for the typical family of four with two wage earners. That's real money for the family budget. Real after-tax income has also increased by 9.4 percent - or $2,777 - since 2000. As a result of these increases, consumer spending is up too. In fact, a November USA Today/Gallup poll estimates that consumers plan to spend more than $800 on gifts this holiday season, the "highest early November reading Gallup has seen since 2000." This is an indicator of strong consumer confidence and is further good news for the American economy.
Last week, Congress passed legislation, with my support, to extend several tax relief proposals to further help families fund their own priorities. For instance, the Tax Relief and Health Care Act of 2006 included provisions extending:
- The above-the-line deduction for higher education expenses
- The state and local sales tax deduction
- The above-the-line deduction for out-of-pocket teacher classroom expenses
- Itemized deduction for the cost of premiums for mortgage insurance
The same bill included a number of tax relief provisions to help small business owners fund their business needs and create jobs and to promote energy independence as well, including:
- A fifteen-year depreciation for leasehold or restaurant improvements
- The deduction for energy efficient commercial buildings
- The energy credit for businesses producing electricity from solar energy, fuel cells, or microturbines
- The reduced excise tax rate for methanol and ethanol fuel produced from coal
The Tax Relief and Health Care Act of 2006 also included important provisions to ensure that health care providers and hospitals are able to continue to provide access to quality health care. Specifically, the bill would prevent a 5.1 percent cut in provider reimbursement rates for health care providers through Medicare. Another provision would prevent the cut in Medicare reimbursement to hospitals. I fought hard to ensure that Congress would address these urgent health care needs before adjournment, and I was very pleased to see that it did.
CONGRESSMAN SCOTT GARRETT'S OFFICE COMING TO A TOWN NEAR YOU:
Congressman Garrett's staff will be holding Mobile Constituent Service Hours in a number of Fifth District towns this week. The Congressman's Constituent Service Officers are trained to act as your liaisons with Federal agencies. But, it's not always easy to make it out to one of the Congressman's district offices - in Paramus and Newton - to meet with one of them, especially when you are dealing with government red tape. These Mobile Constituent Service Hours sessions bring the Congressman's office to you. So, if you are having trouble with a Federal program, such as Medicare, veterans benefits, Social Security, or more, please feel free to come by. And, please bring copies of any relevant paperwork with you to facilitate their work.
Tuesday, December 12th
Park Ridge
10:00 am to noon
Borough Hall, 55 Park Avenu e
Tuesday, December 12th
Closter
1:30 pm to 3:30 pm
Library, 280 High Street
Wednesday, December 13th
Ramsey
10:00 am to noon
Library, 30 Wyckoff Avenue
Wednesday, December 13th
Mahwah
1:00 pm to 3:00 pm
Mahwah Senior Center, 475 Corporate Drive
Thursday, December 14th
Glen Rock
10:00 am to noon
Municipal Building, Harding Plaza
Thursday, December 14th
Wanaque
1:00 pm to 3:00 pm
Library, 616 Ringwood Avenue
In light of the busy holiday season, Mobile Constituent Service Hours regularly scheduled to be held between Monday, December 18th and Monday, January 1st will be cancelled. The schedule will resume beginning Tuesday, January 2nd.
