Mar 12 2008

Graham Amendment Extends Bush Tax Cuts

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) has introduced an amendment to the Senate Budget Resolution to extend the 2001 and 2003 Bush tax cuts.  A Senate vote on the Graham Amendment is expected on Thursday.

“Do we really want to raise taxes on Americans who are already struggling to make ends meet?” questioned Graham.  “Millions of taxpayers and businesses will see their tax bills literally increase overnight if we don’t make the Bush tax cuts permanent.  We will drive companies offshore and create fewer jobs here at home.”

Graham noted that if the tax cuts are not made permanent 116 million taxpayers will see their tax bill increase an average of $1,800. 

The Graham amendment makes room in the budget to make permanent:

  • The current marginal tax rates of 35, 33, 28, and 25 percent.  If they are allowed to expire
  • December 31, 2010 the new rates will be 39.6, 36, 31 and 28 percent.
  • Lower rates on capital gains and dividends.
  • College tuition deduction
  • Includes the Kyl language on estate tax relief – a $5 million exemption with a 35 percent top rate.

“If we don’t pass my amendment there is going to be a major tax increase coming to millions of hard-working Americans,” said Graham.  “At a time when people need more money for their families and businesses at home, it’s time to make the Bush tax cuts permanent.”