Editorial: Tax legislation benefits the economy
It is pleasing to see Congress approve federal tax legislation that gives people a break, especially those provisions which ensure taxpayers will get to keep more of their hard-earned dollars.
Late last week, Congress passed the Protecting Americans from Tax Hikes (PATH) Act, a bipartisan legislative package. The legislation makes more than 20 tax provisions permanent, prevents tax increases for millions of Americans, and provides tax relief for small businesses.
The tax package is especially beneficial for farmers, noted California Farm Bureau Federation President Paul Wenger, who said: “This legislation will bring relief to farms and ranches in two ways. It relieves farmers, ranchers and other small business owners from tax rules that discourage investment in upgraded equipment, and it relieves us of the year-to-year uncertainty about what tax rules we live under.”
The legislation was part of the $1.14 trillion government-wide spending measure to fund every Cabinet agency through next September, and a $680 billion tax package extending dozens of breaks touching all sectors of the economy, making several of them permanent and tossing the entire cost onto the deficit.
The tax portion of the bill makes permanent several tax breaks that had to be renewed each year, taking uncertainty away from farmers. It also extends the time a small business can expense immediately rather than depreciate over time.
It also ensured tax deductions for teachers who use their own money for classroom expenses.
The bill also extended the Earned Income Tax Credit, American Opportunity Tax Credit and Child Tax Credit.
Hard-working Americans deserve a break and it is the tax burden that is sending many middle class Americans below the middle class line. This legislation should not only help those Americans, but also help the nation’s economy.