Tax Smart America� Reports New Tax Breaks Help Business, Working Families, and Senior Citizens Alike

May 15, 2006; 04:00 AM

San Diego, CA - Tax Smart America® reported today that recent passage of the tax bill now ready for signature by President Bush, has something for everyone, from business owners, senior citizens and working families.

With the passage of the recent tax law now ready for signature by President Bush, there truly is something for everyone, from business owners, senior citizens and working families in this legislation.

For Business

Under the new law, small business will be allowed increased expensing for equipment purchases and related depreciation deductions, thus allowing small firms to expense $100,000 (from $25,000) through 2009.

For Working Families

Alternative Minimum Tax provisions extend the exemption levels though the end of 2006 but at a higher level -- $62,550 (married) and $42,500 (other). The Alternative Minimum Tax (AMT) is a key issue facing the President’s Advisory Panel on Federal Tax Reform.

For Senior Citizens

The tax bill will extend the life of the 15 percent rate of tax on most capital gains and qualifying dividends for two years until the end of 2010, preventing a tax increase at the start of 2009. The rate will be reduced to zero in 2008 for taxpayers in the 10- and 15-percent tax brackets.

According to a recent report by the Tax Foundation, a sizable percentage of taxpayers who claim dividend and capital gain income are in fact over age 55, and the majority of taxpayers over age 55 claim some form of capital gains or dividend income.

The mission of the Tax Foundation is to educate taxpayers about sound tax policy and the size of the tax burden borne by Americans at all levels of government. From its founding in 1937, the Tax Foundation has been grounded in the belief that the dissemination of basic information about government finance is the foundation of sound policy in a free society.

For a complete copy of the Tax Foundation’s report, you can visit their web site at www.taxfoundation.org

President Bush has been quoted as saying, "I applaud the Senate for passing important tax relief that will help keep our economy strong and growing."

The President has for many weeks been pressuring Capital Hill lawmakers to reach a deal, which included the investment tax cuts, despite their cost in terms of revenues.

The President added, "This legislation prevents an enormous tax hike that the American people do not want and would not welcome. The bill will extend policies that have helped our economy flourish."

The President also added that his tax policies have led to 18 straight quarters of economic growth, including 4.8 percent growth in the last quarter.

Company Spokesman for Tax Smart America®, Daniel Love stated “We are happy to see this bill pass and we will begin as early as next week helping clients and tax professionals alike understand how the new laws will help them before the end of the tax year in 2006.”

About Tax Smart America® Business Center

Tax Smart America® recently announced it is well underway in its nationwide launch of the Tax Smart America® Business Center License Program to tax professionals, as an alternative to old-style franchise models.

With tax professionals from more than 100 cities now actively learning about this exciting alternative to franchising, the company sees great opportunity for tax professionals who truly desire to operate both year round and specialize in working with small business owners using the Tax Smart America® Business Center program.

The company has created a number of business support programs offered only at an approved Tax Smart America® Business Center. Clients who use an approved tax professional under the program are invited to attend business support workshops to better understand basic operations from payroll to recordkeeping.

A business client is then free to select from a variety of business support services and engage the approved Tax Smart America® Specialist to assist in implementing these important services much like a team approach in developing an overall game plan for the business client.

The company’s expansion plans are an effort to provide small and mid-sized CPA and Tax Firms with an alternative to the more traditional expensive old-style franchise systems, such as those of H&R Block (HRB), Jackson-Hewitt (JTX), and Liberty Tax Services.

With estimates reported at more than 60,000 to 70,000 new business start ups each month, the company believes its plans are well positioned to attract tax professionals of all types away from competitors who seem to remain fixed on the more traditional franchise and corporate-owned store model, as well as independent tax firms who desire the benefits offered in the business license models.

Tax Smart America®, Tax Smart Centers of America™, Tax Smart University™ and 59-Minute Solutions™, are licensed registered trademarks of (Smart America Group Enterprises). The company offers unique business model and educational systems for tax professionals under a unique license agreement as an alternative to old-style franchising such as that of H&R Block (HRB), Jackson-Hewitt, (JTX), and Liberty Tax.