Washington, DC – Thanks to legislation led by Nevada Senator Harry Reid in partnership with the Obama Administration, Nevadans and Americans are paying less in taxes this year. As reported yesterday by the Associated Press, “You wouldn’t know it by the Tax Day rhetoric, but Americans are paying lower taxes this year, even with increases passed by many states to balance their budgets.”
The information below details Reid’s more recent work to provide tax relief for Nevada families and businesses.
REID HAS LED THE WAY IN EASING NEVADA’S TAX BURDEN
Nevada Senator Harry Reid has worked tirelessly to help families and businesses in Nevada who’ve struggled so much during this recession. Just one of the ways Reid and the Senate have been able to help is by easing the tax burden on families and businesses around the state – passing more than $1 trillion in tax cuts. Here are some recent examples of Reid’s work cutting taxes for Nevadans.
REID DELIVERED TAX RELIEF FOR WORKING FAMILIES AND BUSINESSES IN THE ECONOMIC RECOVERY ACT
Tax relief for Nevada families and businesses made up more than one third of the American Recovery and Reinvestment Act – more than $280 billion – including:
· More than $500 million for more than 1 million Nevadans through the Making Work Pay Tax Credit
· A temporary suspension of federal income taxes on the first $2,400 of unemployment benefits for laid-off workers
· A new $2,500 partially refundable tax credit for families sending their kids to college
· A one-time payment of $250 to seniors, disabled veterans, SSI recipients and other disabled workers
· An expansion of the Child Tax Credit to make more parents eligible and expand the credit for millions of parents who already receive it
· An expansion of the Earned Income Tax Credit
· Extension of the 30% tax credit for homeowners who install energy-efficient products in their homes
· Extended and expanded the federal business energy investment tax credit for solar (30%), geothermal (10%) and removed the cap on small wind
· Extended the renewable energy production tax credit to accelerate utility scale development and provided a cash grant option for developers
· Extended accelerated depreciation up to 50% for business investments in renewable energy systems
· An extension and expansion of the homebuyer tax credit
· Relief from the Alternative Minimum Tax to protect roughly 100,000 Nevadans from this tax
· Relief for small businesses allowing them to use operating losses to recover prior taxes paid
· Debt cancellation for businesses that protected 31,000 Nevada jobs at Harrah’s alone
REID AND SENATE DEMOCRATS PASSED A BUDGET WITH MORE THAN $760 BILLION IN TAX CUTS
The FY 2010 budget included more than $750 billion in tax relief over the next five years. The budget will help ease the burden on Nevadans by:
· Extending nearly all of the 2001 and 2003 tax breaks for middle class families, including the 10-percent income tax bracket, marriage penalty relief, the $1,000 child tax credit and so much more
· Providing relief from the Alternative minimum tax
· Extending the sales tax deduction for Nevadans and all Americans from states that have no income tax and providing a mechanism to make this provision permanent
REID’S LEADERSHIP LED TO EXTENSION AND EXPANSION OF HOMEBUYER AND BUSINESS TAX CREDIT
In November, Senator Reid led the passage of an extension of the new homebuyer tax credit until April 30 of this year. This tax credit has helped Nevada’s struggling housing market by making it easier for people to purchase their first house and has helped the state’s economy because every home sale puts people to work. The bill also:
· Increased access to the homebuyer tax credit by expanding the eligibility threshold and extending the credit beyond first-time homebuyers
· Provided additional relief to Members of the Armed Forces away from home on extended duty and their families by waiving repayment of the credit and extending the credit for an additional year
· Provided key relief to businesses in Nevada and around the country by expanding the net operating loss provisions in the Recovery Act for small businesses to all businesses, which is saving jobs by easing the tax burden on employers and potentially allowing them to expand as our economy recovers.
REID LED PASSAGE OF THE HIRE ACT, PROVIDING $15 BILLION IN JOB-CREATING TAX RELIEF FOR SMALL BUSINESSES
Earlier this year, Senator Reid led the passage of the HIRE Act, which will create jobs by extending additional tax relief to employers, including:
· Jobs Creation Tax Exemption: Employers hiring a person in 2010 who had been unemployed for at least 60 days will be offered an exemption from social security payroll taxes. Additionally, for every employee retained for a full year, the employer will qualify for a $1,000 income tax credit on their 2011 tax return.
· Small Business Investment Expensing: This provision helps small businesses by allowing them to write off the costs of major purchases, freeing up capital that will allow them to grow.
HEALTH INSURANCE REFORM CUTS TAXES FOR MIDDLE CLASS, PROVIDES IMMEDIATE TAX CREDITS TO HELP SMALL BUSINESSES PROVIDE COVERAGE FOR WORKERS
One of the ways the Patient Protection and Affordable Care Act will make quality affordable health insurance coverage available to nearly all Nevadans is through tax relief for families and employers, including:
· Tax credits for roughly 24,000 Nevada small businesses – available starting this year – that will make it easier for them provide health insurance to their employees
· More than $5 billion in tax credits to help more than 300,000 Nevadans afford coverage
# # #