Tomorrow, the Making Work Pay tax credit passed under the American Recovery and Reinvestment Act goes into effect and families across the country will be seeing more money in their paychecks. The Making Work Pay Tax Credit provides immediate and sustained relief to about 95 percent of American workers and their families. Most working individuals will receive $400 a year and working families will receive $800 a year through reduced payroll deductions and taxpayers do not have to take any action to receive this tax credit.
The Making Work Pay tax cut will put more money in workers' paychecks each week, helping to jumpstart our economy and provide some much-needed relief to Americans who are having a difficult time making ends meet. Congress passed the American Recovery and Reinvestment Act one month after President Obama took office, giving workers across the country one of the fastest tax cuts in our nation's history.
Putting more money directly into the hands of 95 percent of working Americans is only the beginning. This week, Congress will pass a budget blueprint for America that cuts taxes for middle-income Americans by $1.5 trillion, cuts the deficit by two-thirds, creates new jobs through investments in health care, clean energy and education, while cutting spending to its lowest level in a generation.
With the Making Work Pay tax credit, President Obama and Congress have made clear that American families are at the top of our agenda.
Leader Steny Hoyer:
We have already seen real results from the American Recovery and Reinvestment Act, including jobs saved and created across the country. Tomorrow, we will see another result: tax relief for middle-class Americans.
Much of the focus of the economic recovery bill was assistance to middle-income families. The 'Making Work Pay' tax credit will start showing up in paychecks tomorrow, with credits each month adding up to $400 for adults and $800 for families over the course of a year. This additional money in their paycheck as a result of this tax credit is vital to working families who are struggling to pay their bills and make ends meet during this recession.
This Democratic Congress has consistently fought for the needs of the middle-class in America, and the 'Making Work Pay' tax credit is just one more piece of our efforts to help them face the current economic crisis.