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With the support of Congressman Bill Posey (R-Rockledge), the House of Representatives passed legislation to extend the current income tax rates for all Americans, avoiding what would have amounted to the largest tax increase in history. Passage of this bill amounts to several hundred dollars per month in continued lower taxes for the average family. Posey committed to vote against the pork-laden $1.1 trillion spending bill should Speaker Pelosi bring it forward for a vote.

“Allowing taxes to increase would further hamper job growth and unfairly penalize working families struggling to make ends meet,” said Congressman Posey. “This two year extension will allow Congress more time to craft legislation providing for longer-term economic growth. While I’m pleased to see the current lower tax rates extended, Congressional leaders should not have waited until the eleventh hour to address this issue,” added Posey. “It’s uncertainty like this that continues to hamper our nation’s ability to recover and create jobs.”

Specifically, the legislation will allow the current tax rates - the “Bush tax cuts” - set in place in 2001 and 2003 to stay the same for another two years, extend the $1,000 per child tax credit, prevent an increase in capital gains taxes, adjust the alternative minimum tax and provide some death tax relief. The bill also includes a 13 month extension of unemployment benefits for out-of-work Americans. This bill did not include earmark spending and was solely related to changes in the tax code.

This tax relief bill is not to be confused with the pork-laden $1.1 trillion omnibus spending bill that was being considered in the Senate. That 2,000 page bill includes nearly 7,000 earmarks, and was written behind closed doors. Last night Senate Democrat Leader Harry Reid removed the bill from Senate consideration. Rep. Posey committed to voting against that massive spending bill if it is resurrected saying, “The omnibus spending bill is completely irresponsible and is the type of high jinks that Americans are fed up with. Hopefully, the United States Senate got the message.”

Details of the tax relief extension can be found HERE.