Johnson City Press - Staff
Sen. Lamar Alexander, R-Tenn., announced said recently that he would join fellow Republican senators in introducing legislation to make permanent the tax cuts of 2001 and 2003, which will otherwise expire under the budget passed last month.
“The Democratic leadership’s budget would result in a $2,052 tax hike for a Tennessee family of four earning $40,000 a year,” Alexander said in a news release.
The Republican tax legislation would make permanent the current individual income tax rate structure of 35, 33, 28 and 25 percent. Those rates, which were reduced from 39.6, 36, 31, and 28 percent in 2001, are slated to return to the higher levels at the end of 2010.
In addition to making those reduced tax rates permanent, the measure would:
• Fully repeal the death tax.
• Fully repeal the Alternative Minimum Tax.
• Make permanent the current capital gains and dividends tax rates.
• Make permanent the current increased limits on small-business expensing.
• Make permanent the research and development tax credit.
• Renew Trade Promotion Authority for 5 more years.