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Foxx highlights benefits of 2001 and 2003 tax cuts, Democrat’s threat to tax cuts

Tax Day 2007 marks both low and high points in U.S. tax history. The Republican tax cuts in 2001 and 2003 lowered taxes to near-record lows. In fact, the average federal tax rate for a four-person family earning the median income is 13.1 percent—the lowest it has been in 40 years. But at the same time, Congressional Democrats passed a federal budget blueprint last month that assumes the expiration of the Republican tax cuts by 2010—to the tune of a more than $390 billion tax hike over five years.

“Tax Day 2007 is a reminder of the benefits of pro-growth Republican policies for North Carolina taxpayers,” Rep Virginia Foxx said. “While the tax code is broken, Republican policy has alleviated the damage the income tax does to taxpayers and helped bring America four straight years of economic growth as well as 7.5 million new jobs.”

For evidence that tax cuts are working, taxpayers need look no farther than the fact that this year Americans will receive an average refund of $2,394. These steadily increasing refunds are a tangible result of the Republican tax cuts which killed the marriage penalty, created a new lower 10 percent tax bracket and increased the child tax credit from $500 to $1,000.

However, the federal budget blueprint passed by the Democrats would eliminate each of these fiscally sound tax cuts.

“Unfortunately for millions of North Carolinians the Democrats seem bent on raising their taxes,” Foxx said. “Tax Day is a reminder that the progress we have made to reduce people’s tax burdens is endangered by the Democrat’s tax and spend agenda.”

Americans agree. A survey release by the non-partisan Tax Foundation this month found that a majority of adults believe the federal tax code is complex and in need of major reform and that their income taxes are “too high.”