Tax Cut for 95 Percent of Americans Takes Effect Today
Washington, DC - DNC Chairman Tim Kaine praised the Making Work Pay Tax Cut, a hallmark piece of the $787 billion American Recovery and Reinvestment Act, which goes into effect today. The Making Work Pay tax cut will provide most working families $800 a year in tax relief through reduced payroll deductions.
"America's working families will have more to spend and more to save as a result of the Making Work Pay tax cut, a key piece of President Obama's plan to stimulate the economy, which takes effect today," Kaine said. "Thanks to strong leadership by President Obama, Speaker Pelosi and Majority Leader Reid, 95 percent of Americans will have extra cash in their pockets starting this week. Unlike the tax cuts implemented over the previous eight years- which mostly benefited the wealthiest Americans - this plan will help middle class Americans pay their bills and put food on the table. President Obama inherited a $1.3 trillion deficit and the worst economic crisis since the Great Depression, yet his Administration moved quickly and passed this historic recovery plan one month after taking office. The Making Work Pay plan is one of the fastest tax cuts to take place in United States history. This new tax benefit will work in coordination with President Obama's broader plans to create jobs and invest in clean energy, healthcare and education to revive our economy, ease the financial burdens on working families, and build a foundation for long-term prosperity."