Senate Democrats

Democrats Cut Taxes by $509 Billion, Putting Taxes at Lowest Level Since 1950

Since President Obama took office, Democrats successfully passed a total of $509 billion in tax cuts for American families and small businesses.  Due to these Democratic efforts, the tax burden on Americans is now at its lowest level in 60 years. [USA Today, 5/12/10; CBPP, 4/14/10]  The following list identifies the major tax cuts enacted by Democrats during the 111th Congress, despite the obstructionism and opposition of Republicans.

Grand Total of Taxes Cut by Democrats in 111th Congress: $509 Billion

American Recovery and Reinvestment Act of 2009(H.R.1:" target="_blank">P.L. 111-5;JCX-19-09)

  • Tax relief for individuals and families (e.g., Making Work Pay Credit, American Opportunity Tax Credit, first-time homebuyer credit, and AMT relief)

$232,426 million

  • Clean energy incentives

$19,963 million

  • Tax cuts for businesses

$6,150 million

  • Manufacturing recovery provisions

$1,850 million

  • Economic recovery tools (e.g., recovery zone bonds, new markets tax credit)

$6,501 million

  • Infrastructure financing tools (e.g., school construction bonds, Build America Bonds)

$19,638 million

  • Low-income housing and energy property provisions

$74 million

  • $250 refundable tax credit for federal and state pensioners not eligible for Social Security

$218 million

  • Health Coverage Tax Credit provisions

$457 million

  • Low-income housing tax credit provisions

$143 million

  • Assistance for COBRA health coverage premiums

$24,677 million

TOTAL(over 2009-2019)

$312,097 million

Patient Protection and Affordable Care Act(H.R.3590:" target="_blank">P.L. 111-148;JCX-17-10and H.R.3590.pdf" target="_blank">CBO, Table 2)

  • Tax credit to help small businesses afford health coverage

$37,000 million

  • Tax credit to help individuals afford health coverage (Exchange Premium Credits)

$106,000 million

  • Therapeutic Discovery Tax Credit (for small businesses to produce innovative medical therapies)

$900 million

  • Adoption tax credit

$1,200 million

  • Health professional state loan repayment tax relief

$100 million

TOTAL(over 2010-2019)

$145,200 million

Worker, Homeownership, and Business Assistance Act of 2009(H.R.3548:" target= "_blank">P.L. 111-92;JCX-45-09)

  • First-time homebuyer tax credit provisions

$10,823 million

  • Business tax cut (increase carryback period for net operating losses)

$10,407 million

  • Military BRAC fringe provisions

$243 million

TOTAL(over 2010-2019)

$21,473 million

Hiring Incentives to Restore Employment Act(H.R.2847:" target="_blank">P.L. 111-147;JCX-6-10)

  • Payroll tax forgiveness for hiring unemployed workers

$7,616 million

  • Business tax credit for retaining newly hired workers

$5,422 million

  • Business tax cut (increase in expensing of certain depreciable assets)

$35 million

  • Qualified Tax Credit Bonds provisions

$4,561 million

TOTAL(over 2010-2020)

$17,634 million

Small Business Jobs and Credit Act of 2010(H.R.5297:" target="_blank">P.L. 111-240;JCX-48-10)

  • Small business tax cut (modification to exclusion for gain from certain small business stock)

$518 million

  • Small business tax cut (5 year carryback of general business credit of eligible small business)

$107 million

  • Small business tax cut (general business credits of eligible small business not subject to AMT)

$977 million

  • Small business tax cut (reduction in recognition period for built-in gains tax)

$70 million

  • Small business tax cut (enhancements to section 179 property provisions)

$2,177 million

  • One-year extension of bonus depreciation

$5,454 million

  • Increase deduction for start-up business expenditures

$230 million

  • Limitation on penalty for failure to disclose reportable transactions based on resulting tax benefits

$176 million

  • Deduction for health insurance costs in computing self-employment taxes

$1,919 million

  • Cell phones and telecommunications equipment provisions

$410 million

TOTAL (over 2011-2020)

$12,038 million

Homebuyer Assistance and Improvement Act(H.R.5623:" target="_blank">P.L. 111-198;JCX-34-10)

  • Extend eligibility for the first-time homebuyer credit

$140 million

TOTAL (over 2010-2020)

$140 million

Charitable Donations for Haiti Earthquake Relief (H.R.4462:" target="_blank">P.L. 111-126;CBO)

  • Tax benefit for charitable cash contributions toward Haiti earthquake relief

$2 million

TOTAL (over 2010-2020)

$2 million

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