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Press Release

Tax Relief Coalition Calls for Permanent Tax Relief

TO: All Members of the U.S. Senate and House of Representatives

We are writing on behalf of the more-than-1,000 members of the Tax Relief Coalition (TRC) representing more than 1.8 million businesses.* TRC strongly supports making permanent the provisions of the 2001 and 2003 tax bills (including personal AMT relief, small business expensing, marginal rate reductions and capital gains and dividend tax rate reductions; full list of expiring provisions is attached). We urge you to act this year to extend these provisions, and to continue to work to make these provisions permanent.

We are concerned with recent reports that the capital gains and dividend tax rate reductions may not be included in this year’s tax legislation. While we are aware of the concerns about the costs of relief efforts and rising deficits, failing to extend these tax rates would seriously worsen the economic outlook. The tax cuts of 2003 resulted in the creation of $4 trillion in stock market wealth and $10 trillion in total wealth, allowing us to afford the rebuilding efforts.

Tax revenues have increased by over 15 percent this year, the largest annual increase in history; and prior to the hurricane relief measures, the deficit was being steadily reduced by the solidly growing economy and increased tax revenues. The preponderance of this historical increase in revenues is attributable to the capital gains and dividend tax rate reductions. Not extending this important tax relief this year would send the wrong signals to both companies and investors, who make investment decisions in multi-year planning cycles, and would almost certainly have a negative near-term impact on revenues.

It is vitally important that Congress continue the pro-growth tax policies that brought the country out of recession, dramatically increased revenues, and restored economic health. We urge you to include the extension of the dividend and capital gains tax rate provisions in your Reconciliation legislation this year.




Grover Norquist Stephen E. Sandherr
President Chief Executive Officer
Americans for Tax Reform Associated General Contractors

John J. Castellani John Motley
President Senior Vice President-Government Affairs
The Business Roundtable Food Marketing Institute

Matt Kibbe David French
President Senior Vice President
FreedomWorks International Foodservice Distributors Association

Mike Baroody Dirk Van Dongen
Executive Vice President President
National Association of Manufacturers National Association of Wholesaler-Distributors

Dan Danner Rob Green
Senior Vice President-Public Policy Acting Sr. Vice President-Government Affairs
National Federation of Independent National Restaurant Association

R. Bruce Josten
Executive Vice President-Government Affairs
U.S. Chamber of Commerce



Expiring Tax provisions & Tax Extenders
October 1, 2005

Expiring in 2005:

 Personal tax credits allowed against regular tax and AMT
 Research & Experimentation Tax Credit
 Work Opportunity Tax Credit
 Welfare to Work Tax Credit
 Increased individual AMT exemption
 Deduction for state and local general sales taxes
 15-year straight-line depreciation for qualified leasehold improvements
 15-year straight-line depreciation for qualified restaurant improvements
 Expensing of “brownfields” environmental remediation costs

Expiring in 2006:

 Incentives to reinvest foreign earnings in the U.S. (repatriation)
 Exceptions under subpart F for active financing income

Expiring in 2007:

 Increase in Section 179 (small business) asset expensing
 FUTA surtax of 0.2 percent

Expiring in 2008:

*Reduced Capital Gains Tax Rates
*Dividends taxed at Capital Gains Tax Rate

Expiring in 2010:

*Provisions of the Economic Growth & Tax Relief Reconciliation Act of 2001:
o Marginal Income Tax Rate reductions
o Increased Child Tax Credit
o Marriage Penalty Relief
o Various Educational provisions (increased education IRAs; permanent extension of exclusion for employer-provided assistance for undergraduate and graduate courses)
o Estate & Gift (Death) Tax and generation-skipping tax repeal
o Reduced Gift Tax rules
o Various Pension and IRA provisions (increased IRA contribution limits; IRA and pension catch-up contributions; increased retirement plan contributions)
o Increased Dependent-Care tax credit