Hoyer: Marylanders' Tax Burden Eased by Recovery Act Relief

WASHINGTON, DC - Congressman Steny H. Hoyer (D-MD) released the following statement on tax day, noting that Maryland families will see lower taxes and larger tax refunds as a result of the American Recovery and Reinvestment Act signed into law last year. Altogether, the Recovery Act has provided $262 billion in tax relief to American families and businesses, resulting in an increase in the average tax refund of 10% over last year - up to $3,000.

"Thanks to tax-cutting measures like the Recovery Act, Marylanders are receiving significantly higher refunds as they file their taxes this year," stated Congressman Hoyer. "In fact, the average refund is up 10% - to about $3,000 - and according to the Citizens for Tax Justice, 98% of families have seen their taxes cut. Most of those gains are due to the Recovery Act and the focus by the President and this Congress on providing relief to help working families and small businesses."

Forty percent of the American Recovery and Reinvestment Act was made up of job-creating tax cuts for businesses and families, including the Making Work Pay tax credit that provided relief to 2.1 million Maryland families. In a little more than a year since the Recovery Act was signed into law, and after other measures put into place, Marylanders are seeing the real benefits of tax cuts and credits during this tax season.

"The Recovery Act's tax cuts included benefits for families raising children, buying new homes and cars, and receiving unemployment insurance," stated Hoyer. "Businesses have also benefitted from the Recovery Act, which helps them invest in new equipment, take bigger write-offs, and attract investment."

In addition to the Recovery Act, Congress has passed a number of other tax cuts aimed at creating jobs and boosting businesses, including a tax holiday for businesses that hire and retain unemployed workers, and increased tax incentives to spur investment in small businesses.

"Tax relief for families and businesses is an integral part of our economic recovery, and the reason why former Reagan economic advisor Bruce Bartlett has observed that ‘federal taxes are very considerably lower by every measure since Obama became president,'" concluded Hoyer.

Providing significant relief to help working families has been a central focus of the President's and Congress' agenda- and as Marylanders file their taxes, they will take advantage of those benefits. For additional information on how Congress has returned more money to American families this year, click here for a document outlining the tax cuts passed and enacted by President Obama and this Congress. Here's another look at the benefits that millions of Americans can claim as a result:

Health Reform: The health reform legislation recently signed into law includes the largest health care tax cut in history for middle class families, helping to make insurance much more affordable for millions of families. Here's a more extensive list of how the benefits available to middle class families for quality and affordable health insurance:

• The largest health care tax cut in history for middle class families.
• Americans buying the same coverage they have today in the individual market will see premiums fall by 14 to 20 percent compared to what they would pay without health insurance reform and by as much as 3% for those who get coverage through their employers.
• The Small Business Health Care Tax Credit can cover up to 35 percent of the premiums a small business pays to cover its workers. In 2014, the rate will increase to 50 percent
• Reduces out-of-pocket expenses so insurance doesn't still leave families holding the bag
• Bans lifetime limits on coverage

The Recovery Act: As the President noted in his last Weekly Address, you can get a good handle on how the Recovery Act might help you out on your taxes through our Tax Savings Tool. Here's a glance at the benefits to working families and small businesses:

• Over $160 Billion - Tax relief provided through the Recovery Act so far to families and businesses.
• Nearly $3,000 - The record average tax refund taxpayers are seeing this tax season, something the IRS says is largely due to the Recovery Act.
• Nearly 10% - The percentage average tax refunds are up this year - something the IRS says is largely due to Recovery Act tax credits.
• 95% - The percentage of working families benefiting from the Recovery Act's Making Work Pay tax credit, making it the broadest tax credit in the history of the country.
• $800 - The amount most married couples are collecting through their paychecks this year thanks to the Recovery Act's Making Work Pay tax credit. Individuals collected $400 this year thanks to Making Work Pay.
• Up to $2,500 - The expanded amount eligible taxpayers can collect with the American Opportunity Credit to help cover college expanses thanks to the Recovery Act.
• Up to $8,000 - The amount new homebuyers can collect this year for purchasing their first home thanks to the Recovery Act's expansion of the First-Time Homebuyers Tax Credit.
• Up to $1,500 - The amount homeowners can collect this year on improvements made to their homes like energy-efficient windows, doors and insulation thanks to Recovery Act tax credits.
• 65% - The amount by which the Recovery Act cut the cost of COBRA health insurance premiums for unemployed workers last year through an up-front tax credit.