Senator Reid: Bush Budget Raises Taxes, Harms Nevada's Middle Class

February 5, 2008 -- Washington, D.C. – On a conference call with Nevada reporters, Nevada Senator Harry Reid discussed how President Bush’s 2009 budget raises taxes for Nevada’s middle class.

“President Bush’s priorities continue to be dramatically out of sync with Nevada’s working families,” said Reid. “His most recent budget blueprint is no different. It raises taxes on hundreds of thousands of Nevada families by excluding the sales tax deduction, as well as the deduction for college tuition. These are important deductions that Nevada families rely on. At a time when Nevada families are feeling the effects of a weakened economy, the president should not be trying to raise their taxes.”

Sales Tax
This deduction provided tax fairness to residents in states like Nevada that have no state or local income taxes. In 2005 more than 346,000 Nevadans took deductions totaling more than $500 million as a result of this provision in the law. Despite the President’s failure to include this measure in his budget, Congress will work to extend this deduction.

Education
Previously, families with income up to $130,000 could deduct up to $4,000 of tuition. Families with incomes between $130,000 and $160,000 could deduct $2,000 of tuition. Like the sales tax deduction, this deduction expired at the end of 2007 and Congress will work to renew it this year. Protecting these deductions not only helps Nevada families that are struggling, it will help our economy by putting more money in the wallets of our state’s working families.

Source: Senator Harry Reid