Responding to your message (Ben Nelson D-Ne on extending tax cuts)

[Omaha Steve]

Thank you for contacting me regarding tax cuts enacted into law during the presidency of George W. Bush. I appreciate hearing from you on this issue.



During my time in the Senate, I have voted to extend important tax cuts, including legislation to mitigate the effects of the Alternative Minimum Tax (AMT) on middle-income taxpayers, extend the capital gains and dividends tax cuts to keep the economy going strong, and extend tax breaks for the small businesses which make up the vast majority of Nebraska's economy. In May 2001, I voted in favor of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), P.L. 107-16; and in May 2003, I voted for the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA), P.L. 108-27. The EGTRRA reduced marginal income tax rates, provided marriage tax penalty relief, temporary relief from the AMT, and increased the child tax credit. The JGTRRA accelerated the implementation of certain tax reductions which were being phased in under the EGTRRA. The JGTRRA also reduced the tax rate on dividends and long-term capital gains income, effective through 2008.



As you know, Congress now faces the decision of whether or not to let these tax cuts expire. The tax cuts were first enacted under reconciliation rules; and as a result, all of the provisions are scheduled to sunset by the end of 2010. I recognize your concerns regarding federal revenue and will continue to work with my colleagues on ways to rein in the budget deficit as Congress considers tax and budget issues.



Regarding the extension of tax cuts for those families earning more than $250,000 a year, I believe that not extending these tax cuts for some period of time would be equivalent to instituting a tax increase at a very critical time for our nation's economy. I support extending all of the expiring tax cuts until Nebraska's and the nation's economy is in better shape, and perhaps longer. Raising taxes in a weak economy could impair recovery.



Extending all of these tax cuts provides certainty for families and businesses in Nebraska and nationwide. Today, many businesses are sitting on cash because of uncertainty, which is holding back economic development across America.



Thank you again for taking the time to share your thoughts on the EGTRRA and JGTRRA. I realize the importance of this issue to you and always appreciate hearing from civic-minded Nebraskans such as yourself. Please do not hesitate to contact me again on any issue of importance to you.

Sincerely,

Ben Nelson
U.S. Senator

[coti]

1. Doesn't matter. Put the middle-class bill in front of him and he'll have to vote for it. nt