Rep. Peters Helps Pass Tax Cuts for Hardworking Students and Families
– Today, U.S. Congressman Scott Peters (CA-52) voted in favor of a large tax policy package that reduces the tax burden of tens of millions of Americans. The Protecting Americans from Tax Hikes Act of 2015 makes permanent a number of credits that lower Federal Income Tax bills for working families, including the Child Tax Credit, the American Opportunity Tax Credit, and the Earned Income Tax Credit.
“Increasing opportunity for hardworking Americans means making it easier for them to provide for their families, pay off their mortgages, and afford college for their children.” Rep. Peters said. “Federal Income Taxes should not be a barrier to families working hard toward the American dream, and this bipartisan legislation will keep thousands of dollars in the pockets of parents, students, and working people.”
The Child Tax Credit allows families to save $1,000 on their Federal Income Taxes for every dependent they claim. The American Opportunity Tax Credit credits students up to $2,500 on their taxes for tuition and college-related expenses. The Earned Income Tax Credit (EITC) reduces the tax burden for working and middle class Americans, and is adjusted based on income and number of dependents. In 2012, 3.2 million Californians claimed an average of $2,271 in returns via the EITC.
Rep. Peters continued by highlighting provisions that benefit San Diego’s innovation and research economy, including a permanent extension of the Research and Development Tax Credit, and a delay of the implementation of the medical device tax.
“For research and development, we have had the worst of both worlds – we would give a last minute extension whenever it was about to expire, but we never extended the incentive far enough in advance to actually spur investment. Now, with the credit made permanent, innovators know they can rely on this tax incentive to invest in their ideas,” Peters said, adding, “Since coming to Congress, I was in repeated contact with both the White House and Congressional leadership to make clear the importance of repealing the medical device tax. We should be making it easier for entrepreneurs to start their ventures and create jobs, but the medical device tax has penalized innovators in the San Diego region and the over 11,000 workers they support. This two-year delay is an important victory for San Diego’s innovation economy, and I will continue to work to permanently repeal the medical device tax.”
Between San Diego, Imperial, Orange, and Riverside Counties there are nearly 250 medical device companies directly employing 11,100 workers, according to BIOCOM. The medical device industry supports nearly $10 billion in economic activity each year in the region and 48,000 direct, indirect, and induced jobs.
“AdvaMed appreciates the tireless efforts of Rep. Peters and his staff since his election to Congress to address the medical device tax. Working with research advocates, patient groups, medical technology companies and others, a broad bipartisan legislative effort to suspend the tax has finally come to fruition. Suspending this tax is a win for medical progress and continued research and development,” said JC Scott, senior executive vice president, AdvaMed.
Congressman Peters concluded, “This legislation is not perfect, and it once again highlights the pressing need for comprehensive tax and budget reform. However, today’s vote will give families and businesses certainty for next year as we continue to work to grow the economy and create jobs.”