Congressman Pete Olson today voted in favor of H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.  The bill passed the House by a vote of 277-148.  The Senate already passed the bill, which will now go to the President for his signature, blocking the largest tax hike in American history.

“I will not violate my pledge to the people of the 22^nd District by allowing them to be hit with the largest tax hike in American history. Failure to pass this bill meant middle-class families would lose around $100 per week out of their paychecks”, said Olson. “Delaying until January would only give Senate Democrats and the White House incentive to make spending and tax hike demands– spending and taxes that were avoided by passing the bill today.  This vote allows Texans to continue to keep more of their hard-earned money instead of sending it to Washington to fuel more wasteful spending.”

Texans also benefit from the provision that allows taxpayers to deduct state and local sales taxes instead of the deduction for state and local income taxes since we do not pay state income tax.  

“Crushing tax hikes will destroy any chance of economic recovery, leading to job losses and less money in family budgets”, said Olson.  “History has proven that reducing taxes increases revenue which can be used to pay down our massive debt.

“Republicans forced the President and congressional Democrats to extend the Bush tax cuts and we remain committed to cutting spending and bringing the bloated federal budget into line next year.  While this bill is not perfect, it protects the conservative tax policies America needs to get back on track.  Close to 90 percent of the bill’s “costs”, as defined by the Congressional Budget Office, are tax relief.  We cannot let perfect prevent what is right for America.”

The legislation maintains current tax rates on wage and investment income as well as other pro-family policies, such as marriage penalty relief and the $1,000 child tax credit.  H.R. 4853 also keeps the Alternative Minimum Tax at bay for millions of middle class families.  On the Death Tax, the legislation prevents an increase to 55% and instead lowers it to 35%.   These provisions will protect tens of millions of families and small businesses from paying $625 billion more in taxes. 

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