Aug 2, 2012
Congressman Bob Latta (R-Bowling Green) supported tax legislation on the House floor this week that would extend tax relief for nearly a million small business owners and provide a pathway to tax reform.
H.R. 8, the Job Protection and Recession Prevention Act, prevents tax increases that are set to take place by the end of the year, and instead will maintain the tax levels that were agreed upon on a bipartisan basis in 2010.
“According to an independent study, these scheduled tax increases will destroy more than 700,000 jobs in the U.S. and shrink the wages of struggling Americans by 1.8 percent. Additionally, if the current tax levels are not extended, a family of four earning $50,000 a year will see a tax increase of nearly $2,200,” said Congressman Latta.
“During a time when hardworking families and small business owners are already struggling in this economy, the last thing they need is the threat of tax a hike coming this January. I believe policies that include low tax rates, when coupled with controlled spending, will help to spur economic growth and create the jobs we so desperately need,” Latta continued.
In addition to the one-year tax extensions at current levels, the bill maintains the 2010 estate tax compromise, which keeps the current $5 million exemption and 35 percent rate.
“The estate tax, or also know as the death tax, is a huge concern facing our families, farmers, and small business owners. This tax punishes the hard work and investments families have made during their lifetime, forcing many of them to sell off land, equipment, and assets in order to pay the tax,” Latta said.
H.R. 6169, the Pathway to Job Creation through a Simpler, Fairer Tax Act, will require Congress to consider comprehensive tax reform legislation under an expedited timeline. Under the bill, expedited procedures would be applied to a tax reform bill containing the following policies:
- Consolidation of the current individual income tax brackets into not more than two brackets and a top rate of not more than 25 percent;
- Reduction in the corporate tax rate to not more than 25 percent;
- Repeal of the Alternative Minimum Tax;
- Broadening of the tax base to maintain revenue between 18 and 19 percent of the economy; and
- Change from a ‘‘worldwide’’ to a ‘‘territorial’’ system of taxation.
“It is estimated that each year Americans spend 7.6 billion hours trying to comply with our current tax code. With more than 60,000 pages, the tax code is burdensome and overcomplicated with pages of deductions, exclusions, exemptions, and credits, which makes it difficult for anyone to navigate. Our tax code is long overdue for a comprehensive reform that encourages savings and investment,” Congressman Latta concluded.