Friday January 30, 2009
Invest In America Act
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See also : The Invest In America Act (S. 14) was introduced in the 110th Congress on April 17, 2007, just one day after the deadline for filing tax returns for 2006. I partnered with Arizona Senator Jon Kyl on this bill, which will make certain that the tax relief Americans have experienced in recent years does not disappear. It will make permanent the individual income tax and business tax relief approved by Congress in 2001 and 2003. Present budget plans and proposed tax changes under consideration would allow these relief measures to expire and could cost taxpayers more than $700 billion dollars by 2011.
Tax relief has spurred economic growth averaging 3% annually. With more than half of all Americans owning stock, many families and retirees will benefit as the changes in capital gains and dividends taxes drop to zero in 2008 for those in the lowest income brackets.
The Invest in America Act secures a system where our economy creates jobs and private investment keeps taxes low for individuals. Congress should make these tax cuts permanent by passing this bill as soon as possible and then getting to work on simplifying the tax code.
As a member of the Senate Finance Committee, I have a responsibility to promote pro-growth tax policies for all Americans. This bill is one that does exactly that and would benefit many Idahoans. Listed below are some specifics regarding the bill:
Individual Income Tax Rates: Every American taxpayer benefits from the current income tax structure. The lower rates have also been integral to our economic growth, which has averaged 3% per year. Lower marginal rates encourage Americans to work harder and be more productive, which leads to a growing economy, low unemployment, and improving living standards for all.
- The Invest in America Act proposes to make the income tax rates permanent.
Child Credit, Marriage Penalty Relief, Other Family Provisions: The $1,000-per-child tax credit, marriage penalty relief, and other provisions enacted in recent years have been a tremendous help to millions and millions of middle and lower income families.
- The Invest in America Act proposes to make the increased child tax credit, the marriage penalty relief, the adoption tax credit, the tuition deduction, the teacher deduction, and many other provisions permanent.
Death Tax Repeal: If Congress fails to act, more than 130,000 families each year starting in 2011 will have to confront the estate tax. Family businesses, farms, and ranches are hit the hardest, as they lack the resources to plan around the tax or to pay it.
- The Invest in America Act proposes to make repeal of the death tax permanent.
AMT Repeal: The individual alternative minimum tax (AMT) was a misguided attempt to tax just “the rich,” but which has ended up hitting more and more middle-income families.
- The Invest in America Act proposes to permanently repeal the AMT.
Capital Gains, Dividends: The economy has grown strongly since the lower investment rates were enacted in 2003, as it became easier for businesses to attract capital to grow and as it became more appealing for investors to put their hard-earned savings at risk in the markets. With over half of all Americans owning stock, large numbers of middle-income families and seniors are benefiting from the lower rates, including the 5% rate, which drops to 0% in 2008.
- The Invest in America Act proposes to make the capital gains and dividends rates permanent.
Small Business Expensing: The increased expensing limits have helped countless small businesses, which create most of the new jobs in the U.S., expand their operations.
- The Invest in America Act proposes to make the increased expensing permanent.
R&D Tax Credit: Countries compete aggressively for high-value R&D projects. One important tool the U.S. uses to attract these investments is the restructured R&D tax credit.
- The Invest in America Act proposes to make the R&D tax credit permanent.
Tax Simplification: The U.S. tax system imposes a costly and annoying burden on taxpayers, with filers spending an average 30 hours to complete the typical Form 1040. Six in 10 Americans opt instead to hire a professional. The billions of dollars spent each year simply complying with the tax system could be put to a much better use.
- The Invest in America Act expresses the Sense of the Senate that Congress should consider tax simplification legislation to make the tax system fair and efficient, without raising tax rates.
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