Over 1.5 Million Oregonians will Benefit from Reduced Tax Burden
Washington, DC – Today, the U.S. Senate passed an economic growth package containing over $330 billion in much needed tax relief. The legislation also includes a provision granting $20 billion in fiscal relief to the states. Senator Gordon Smith (R-OR) worked to insert this provision when the Senate Finance Committee considered the legislation.
"While letting families keep more of their money, the growth package will help small businesses create jobs and get our economy moving again," Smith said. "At the same time, Oregon will get $216 million to help pay for our health care, education, and infrastructure needs."
The $20 billion provision is modeled after legislation Senator Smith introduced with Senator John Rockefeller (D-WV) in January. The funds will be divided between the Federal Medical Assistance Percentage, which dictates the federal share of the Medicaid program, and direct assistance to state governments. When the bill is enacted, the Oregon Health Plan stands to receive $100.3 million over the next 18 months. In addition, Oregon will receive $116.3 million in direct aid.
The tax relief included in the bill will help Oregonians in various ways:
900,000 Oregonians will benefit from the elimination of the marriage penalty
Over 308,000 Oregon taxpayers will gain from immediately increasing the child tax credit to $1000
Over 300,000 Oregon families will see their taxes on capital gains and dividends reduced
Over 1.1 million Oregon taxpayers will benefit from expansion of the 10% tax bracket and from accelerated marginal rate reductions
The U.S. House of Representatives passed the legislation last night. It will now go to the president for his signature.
