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**DEPARTMENT OF THE TREASURY**

**OFFICE OF PUBLIC AFFAIRS**

For Immediate Release   CONTACT: Taylor Griffin

April 14, 2005 (202) 622-2014

***Tax Relief Provides Benefits to New Mexico Taxpayers***

WASHINGTON, DC -- New estimates released by the Treasury Department show
that

628,000 New Mexico taxpayers will enjoy a lighter burden this tax day
thanks to the Economic Growth and Tax Relief Reconciliation Act Of 2001
(EGTRRA) and The Jobs and Growth Tax Relief Reconciliation Act Of 2003
(JGTRRA).

"No one looks forward to tax day, but for millions of taxpayers across
the country, this April 15 will be less painful thanks to the
President's tax cuts," stated Treasury Secretary John Snow. "Nationwide,
110 million taxpayers will see their tax bill reduced thanks to the tax
relief supported by President Bush and enacted by Congress. That extra
money in the hands of America's families has helped to fuel the economic
recovery. Now, to continue this period of economic growth, we must make
tax relief permanent so families can plan ahead for the future. We must
also reform the tax code to make it simpler, fairer and more growth
oriented."

**REDUCING TAXES**

-   **628,000** taxpayers in New Mexico will have lower income tax bills
    under EGTRRA and JGTRRA.

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-   **140,000** business taxpayers in New Mexico can use their tax
    savings from the two acts to invest in new equipment, hire
    additional workers, and increase pay.

**NEW 10-PERCENT BRACKET**

-   **548,000** taxpayers in New Mexico will benefit from the new
    10-percent bracket enacted in EGTRRA and the JGTRRA acceleration to
    2003 of the expansions of the bracket scheduled for 2008.

**REDUCTION IN INCOME TAX RATES**

-   **117,000** taxpayers in New Mexico will benefit from the EGTRRA
    reduction in income tax rates above 15-percent and the JGTRRA
    acceleration to 2003 of the reductions scheduled for 2004 and 2006.

**REDUCTION OF MARRIAGE PENALTY**

-   **185,000** married couples in New Mexico will benefit from the
    JGTRRA acceleration to 2003 of the EGTRRA provisions that increase
    the standard deduction for joint filers to double the amount for
    single filers and increase the width of the 15-percent bracket to
    twice the width for single filers. These two provisions were
    scheduled to phase in between 2005 and 2009.

**INCREASE IN CHILD TAX CREDIT**

-   **170,000** married couples and single parents in New Mexico benefit
    from the increase in the child tax credit under EGTRRA and the
    JGTRRA acceleration to 2003 of the increase from \$600 to \$1,000
    that was scheduled to phase in between 2005 and 2010.

**REDUCED TAX RATES ON CAPITAL GAINS AND CORPORATE DIVIDENDS**

-   **115,000** taxpayers in New Mexico will benefit from the reduced
    tax rates on capital gains and corporate dividends under JGTRRA.

SOURCE: *Counts are for the number of returns filed in 2004 that would
have benefited from the package.* *These estimates are based on
tabulations from individual income tax returns processed by the Internal
Revenue Service in 2004. Most of these returns covered tax year 2003.*

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