Washington, DC— Senate Finance Committee member Debbie Stabenow (D-MI) and Senator Jack Reed (D-RI) held a press conference this morning to discuss Democratic efforts to pass legislation that would close loopholes that reward companies for outsourcing American jobs, and give over $18 billion in tax cuts to families and small businesses to strengthen our economy and create jobs. Democrats are urging Republicans to support this bill and stand with the middle class, not special interests.
“American businesses need immediate assistance to make new investments here at home and create jobs,” said Senator Stabenow. “The jobs bill we have before us will provide billions in tax cuts and support for small businesses across the country to hire new employees while closing loopholes that reward big corporations for outsourcing American jobs. This legislation will also provide additional tax cuts for middle-class families and a long-overdue extension of unemployment insurance for struggling households. I call on my Republican colleagues to stop protecting corporate interests and support this jobs bill so we can put Americans back to work.”
“This bill will provide tax cuts to help businesses create jobs while providing additional relief to families hit hardest by the recession,” said Senator Reed. “We have made significant progress in reversing the huge number of jobs losses under the Bush Administration, which was hemorrhaging 750,000 jobs a month. That is positive, but we have to keep the pedal to the metal, and this bill does that.”
The bill includes several key tax cuts for families and businesses, including:
- Property Tax Deduction – This bill extends the additional standard deduction for state and local property taxes to save families money on their federal tax returns. This deduction, created by Finance Committee Chairman Max Baucus (D-Mont.) in 2008, allows taxpayers who do not itemize their tax deductions to receive property tax relief as a standard deduction of $500 for single filers and $1,000 for joint filers.
- Tax Cut for College Tuition – This bill extends a tax deduction for qualified education expenses including college tuition and fees, so Americans can get the world-class education they deserve without going bankrupt in the process.
- Research and Development Tax Credit – The bill extends a tax cut for research and development to help American businesses spur innovation and grow.
- Tax Credit for Equipment Investments – The legislation allows companies to receive tax refunds on a portion of their Alternative Minimum Tax (AMT) credits if they invest in capital equipment for use in the United States.
- Tax Benefits for Capital Investments – The legislation extends a tax cut to allow restaurant owners to depreciate new construction and improvements and retail store owners to depreciate improvements over 15 years rather than 39.5 years, supporting construction jobs, encouraging economic development and saving these businesses money they can use to reinvest in their companies and hire new workers.