The Honorable Timothy Walberg
United States House of Representatives
Washington, DC 20515
Dear Representative Walberg:
On behalf of the 362,000 members of the National Taxpayers Union (NTU), I write to strongly endorse H.R. 2734, the Tax Increase Prevention Act of 2007, which would make the 2001 and 2003 federal tax cuts permanent. NTU was a leader in the original fights to enact these pro-taxpayer measures, and we're ready to work beside you to keep America's money in working people's wallets instead of government coffers. As such, any roll call votes on the Tax Increase Prevention Act of 2007 will be heavily weighted in NTU's annual Rating of Congress.
More than four years have gone by since the passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003, which cut rates on capital gains and dividends to 15 percent. At the time many naysayers predicted that budgetary catastrophe would follow this change, but their prophecies of doom have been thoroughly discredited. Amazingly, since 2003 federal government tax revenues have surpassed official estimates from the Congressional Budget Office by 68 percent! Americans used their freed-up capital to help grow a strong economy, and as a result millions of new jobs have been created while unemployment levels have fallen.
Although the tax cuts' successes are undeniable, some in Congress want to extinguish the flame of economic opportunity that the tax cuts have fueled. If the budget passed by the House of Representatives earlier this year is implemented, the average American taxpayer would face $3,026 in additional federal income taxes per year as the tax cuts are allowed to expire. Among the consequences would be higher income tax rates, a $500-per-child tax increase, a loss in deductibility for tuition and research expenses as well as state and local sales taxes, the reinstatement of a 55 percent estate tax, and a 13 percent tax hike for many small businesses. Furthermore, experts estimate that each of us would also see our personal income fall by $500 due to a weaker economy. This is a loss Americans cannot afford. Big spenders like to categorize the 2001 and 2003 tax cuts as boons to the wealthy, but the fact of the matter is that all Americans will be affected if the cuts are not extended.
So far 90 of your fellow Members of Congress have seen the wisdom in extending the 2001 and 2003 tax cuts by signing on to the Tax Increase Prevention Act of 2007. We hope more will join you as cosponsors of what could be among the most important bills under consideration in the 110th Congress.
Sincerely,
Kristina Rasmussen
Director of Government Affairs