TAXES

Our tax system is too complicated, burdensome and outdated. The tax code contains over 1.7 million words in it. How is the average American expected to have time to read this and understand it? We need to promote increased fairness in our tax laws and simplify the process for filing returns with the Internal Revenue Service. As your Representative, I stand committed to reducing the tax burden on families.

Since 2001, Congress has worked to reduce the tax burden on the American people. So far, Congress has passed a series of tax relief measures that have created jobs and enhanced economic growth. By returning hard-earned money to the American people, we reduce their economic burden and empower them to spend their own money in a manner they see fit.

I have been working to make these tax cuts permanent. The tax cuts have helped residents of the Fifth District keep more money in their pockets and allowed them to better provide for their families. On average, our tax cuts saved each American worker over $300 that has been used for food, clothing, bills, and debt. In times of economic troubles, most analysts agree that the only way to spur the economy is to allow Americans to keep more of their hard earned wages.

Therefore, it is no coincidence that a period of unprecedented economic growth has followed the passage of comprehensive tax relief by the Republican-led Congress. For example, in the past two years alone, the American economy has grown at an average annual rate of 4.1 percent and seen the creation of 4.4 million new jobs. These statistics demonstrate the pressing need to make these tax cuts permanent. Without permanent tax relief, every taxpaying American will see their income tax rates rise. The result would be the largest tax increase in our history and would devastate our nation's economy. I refuse to allow hardworking Americans to shoulder a massive tax increase and bear the burden of ever increasing Federal spending. Unfortunately, some of these tax relief measures were set to expire on December 31, 2005.

In response, on May 10, 2006, Congress passed the Tax Relief Act of 2006. As a result, Americans across the country will pay less in taxes this year. This legislation will maintain the reduced tax rates on dividends and capital gains for another two years and continue to protect millions of Americans from the Alternative Minimum Tax for 2006. I am pleased to say that I voted for this measure.

Unfortunately, the final version of this legislation did not include an extension of the state sales tax deduction. Millions of Americans in states like Florida face a crippling tax increase without action. However, the Estate Tax and Extension Tax Relief Act of 2006, which passed the House of Representatives on July 20, 2006, did provide a two-year extension of the state and local sales tax deduction. But our colleagues in the United States Senate refused to pass the measure so residents of our state still do not have the deduction. I will continue to fight for it.

Additionally, the Estate Tax and Extension Tax Relief Act of 2006 provides permanent estate and gift tax relief. The Act also extends for another two years the Research and Development Tax Credit as well as taxpayers can continue to deduct up to $4,000 (depending on income) in above-the-line higher education expenses. And the Act provides for an increase in the minimum wage from $5.15 to $7.25 over the next three years.

The people of the Fifth District of Florida know better than their government how to spend their hard earned money. I assure you that I will continue to vote in favor of legislation that keeps as much money as possible in your pocket and out of Washington, D.C.