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Courtesy Jose Borjon,

Bill would provide more money in their paychecks, supports families and the economy

 Washington, D.C. – Today, Congressman Henry Cuellar (TX-28) announced his new bill, the Tax Cuts for America Act of 2011, a legislative package that would support American families by providing permanent tax incentives and credits.

 “In order to create jobs and grow the American economy we must put more money in the pockets of hard-working families,” Cuellar said. “My constituents tell me that they need more money to invest, spend and save and the federal government can learn to do more with less.”

 H.R. 1601 would make permanent tax breaks for hard-working school teachers, active and reserve military personnel, charitable donations and state and local sales taxes: 

• Deduction for certain expenses of elementary and secondary school teachers;

• Employer-provided educational assistance;

• Student loan interest deduction;

• Treatment of military basic housing allowances under low-income housing credit;

• Above-the-line deduction for qualified tuition and related expenses;

• Employer Wage Credit for activated military reservists;

• Deduction for State and local general sales; and

• Enhanced charitable deduction for contributions of book inventories to public schools.

 In addition, the bill enacts educational tax credits and deductions, which include deductions for certain expenses of elementary and secondary school teachers. This particular provision supports teachers and other educators for expenses on amounts paid for books, supplies, computer equipment, or other education-related materials used in the classroom.

 “Our teachers incur costs everyday to support their professions,” Cuellar said. “I thank them for their dedication to their work of educating our children and this provision of the bill helps them deduct for expenses they may incur.”

 The tax package also includes higher education tax credits. Employer-provided educational assistance gives employers tax credits if they choose to aid employees seeking higher education.

 The bill also provides students with interest deductions on qualified student loans. This will support a large portion of students who are supporting their efforts to earn a higher education through loans. 

 The bill also includes a provision that provides basic housing allowance payments made to military personnel and families for determining low-income housing tax credit eligibility, including two Texas bases. The bill includes Employer Wage Credit for Activated Military Reservists, which allows a small business employer to take credit for the differential wage payments if their employee is called to active duty with the Armed forces.

 “Every day, men and women of our armed forces put their lives at risk for the well being of our country,” Congressman Cuellar said. “Our military personnel serve our nation diligently. The employer wage credit for employees who are active duty members of the uniformed services will support their career in the military and within current employer’s small business.”
The tax package allows businesses that make charitable contributions of book inventories to public schools to receive a deduction.