Below is an article is from a “Tax Update” newsletter from U.S. Senator Gordon Smith dated April 13, 2007:
Smith Wants Bush Tax Cuts Made Permanent
Making President Bush’s tax cuts permanent is a top priority for Senator Smith. On Monday, along with Arizona Republican Senator Jon Kyl, Senator Smith will introduce the Invest in America Act. The legislation will make permanent reductions in the individual tax rates, marriage penalty relief and elimination of the death tax, as well as important economic boosters like the Research and Development Tax Credit.
Tax Hike Looming for Oregon Taxpayers
Senator Smith opposed the Senate Budget resolution this year because it will end President BushÃ¢?Ts tax cuts. These are the same tax cuts that spurred the American economy and put more money in the pockets of every Oregon taxpayer.
Several tax relief provisions are set to expire at the end of 2010, just four years from now.
Who will this impact in Oregon?
– 1.5 million individual taxpayers
– Over 400,000 married couples
– 213,000 investors
– The parents of 334,000 Oregon children
(Source: U.S. Treasury Department)
Senator Smith is using his position on the Senate Finance Committee to make this tax relief permanent.
Put the Death Tax Six Feet Under
Senator Smith is working to eliminate the death tax. Many Oregonians are planning to pass the earnings from their businesses or retirement plans on to their children. Right now, the death tax is on pace to be completely eliminated by 2010. But if nothing is done it will return at the stroke of midnight on January 1, 2011.
Instead of inheriting a nest egg or continuing a family tradition, families will be left paying a large tax bill. Without the death tax, savings grow and small businesses become job-creating legacies for one generation to pass on to the next.
In too many cases, heirs must liquidate businesses in order to meet the tax bill. A liquidated business is no longer a job creator. Small business owners are far more likely to invest in their companies and create new jobs if they are confident their firm will stay in family hands for years to come. Bringing back the death tax will only punish people who have saved.