Slaughter Says Stimulus Package Provided 25 Major Tax Cuts to Families This Year

April 2010

Congresswoman Louise Slaughter (NY-28) told Western New Yorkers that it is because of the Recovery Act that 25 new tax cuts exist, part of more than $800 billion in tax cuts for working families and small businesses that this Congress passed since last year.

“Many people don’t realize that tax cuts are the biggest individual piece of the Recovery Act,” said Slaughter, a strong supporter of the American Recovery and Reinvestment Act. “When we passed the Recovery Act, we gave 95 percent of working Americans one of the largest tax cuts in history and provided incentives to attend college, make energy-saving home improvements, purchase a home for the first time or buy a new car.”

Taxpayers in Western New York and across the country can claim a variety of benefits on their 2009 tax returns, including:

The Making Work Pay tax credit – Ninety-five percent of working families are already receiving the Recovery Act’s Making Work Pay tax credit of $400 for an individual or $800 for married couples filing jointly in their 2009 paychecks – and will continue to see these benefits in 2010. In New York’s 28th District, 243,000 families are benefiting from the Making Work Pay tax credit.

Tax credits for college expenses – Families and students are eligible for up to $2,500 in tax savings under the American Opportunity Credit as well as enhanced benefits under 529 college savings plans, which helps families and students pay for college expenses. More than four million additional students will be able to attend college thanks to this tax credit, more than 295,000 of them in New York.

The First Time Homebuyers tax credit – First time homebuyers can get a credit of up to $8,000 for homes purchased by April 30, 2010 under the First Time Homebuyer tax credit. In New York, 58,787 households have already taken advantage of the First Time Homebuyers tax credit.

Tax credits for energy efficient renovations – Taxpayers are eligible for up to $1,500 in tax credits for making energy-efficient improvements to their homes, such as adding insulation and installing energy efficient windows.
The vehicle sales tax deduction – Taxpayers can deduct the state and local sales taxes they paid for new vehicles purchased from Feb. 17, 2009 through Dec. 31, 2009 under the vehicle sales tax deduction.

Expanded family tax credits – Moderate income families with children may be eligible for an increase in the Earned Income Tax Credit and the additional Child Tax Credit.

Tax-free unemployment benefits – Thanks to the Recovery Act, individuals who received unemployment insurance in 2009 do not have to pay taxes on the first $2,400 of such earnings directly helping 857,000 New Yorkers.
To find out what tax cuts you may qualify for, check the White House online tax calculator by clicking here.

Unlike the Bush tax cuts which focused on the wealthy, this Congress has enacted more than $800 billion in broad-based tax cuts for working American families. These include the Recovery Act, the largest health care tax cut in history, job-creating tax incentives to spur hiring of out-of-work Americans, and tax credits and accelerated write offs for small businesses.

Bruce Bartlett, President Reagan’s domestic policy advisor, noted that “federal taxes are very considerably lower by every measure since Obama became president.”