Tax Reform Key To Rebuilding Economic Growth

WASHINGTON, DC – “The federal government has tremendous power to reach into the pockets of every American and take out what it wants to fund its activities.  People are willing to grant government that power as long as they believe the system to be fair and that it takes no more money than is necessary to achieve important national goals,” said Congressman Mac Thornberry (TX-13).  “I am very concerned that this compact between the people and their government is now broken.  That is why I have sponsored or cosponsored this package of tax reform legislation.”

“Smart tax policy could help end the recession and get the economy growing again.  Small business is the engine that drives the American economy, so the effect of tax policy on small business is especially important,” noted Congressman Thornberry. “In these troubled economic times, we need to help small businesses survive and grow.  Unfortunately, many of the Obama Administration’s tax proposals are likely to hurt, not help small business.”

Congressman Thornberry proposed the following “smart tax” goals that are keys to rebuilding economic growth:

1. Congress should make clear that taxes will not go up.  Small business needs the certainty of no tax increases so they can have the confidence to grow and invest.

2. The tax code should not punish those who work hard and are successful.  We want small business owners and others to work hard, grow their business, and be able to pass along what they have earned to their children.

3. The tax code should encourage capital formation so that small businesses can create jobs and expand.

4. Rather than penalize industry, the tax code should bolster key industries, such as the energy industry, upon which our entire economy depends.

5. Congress should undertake major reform to simplify the tax code.

In order to achieve these goals Congressman Thornberry has sponsored or cosponsored the following bills:

H.R.205, a bill to permanently repeal the Death Tax;

H.R.25, The FAIR TAX promotes freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States;

H.R.470, amends the Internal Revenue Code of 1986 to provide for permanent tax incentives for economic growth;

H.R. 301, the Economic Growth Through Tax Stimulus Act of 2009, a bill to make the 2001 and 2003 tax relief permanent; Further reduce marginal individual income tax rates by 5% for the next five years; Reduce the top business and individual income tax rate to 25% for the next five years and to increase expensing for small business;

H.R.871, a bill to amend the Internal Revenue Code of 1986 to provide that the taxable income limit on the allowance for depletion shall not apply in 2008 to domestic marginal oil or gas wells;

H.R. 1470, the Equity for Our Nation’s Self-Employed Act.  A bill to allow the self-employed to deduct the cost of health insurance premiums as a business expense and to forego payroll (FICA) taxes on these costs;

H.R. 982, a bill to terminate the Internal Revenue Code of 1986.

“Government taxation can reward some while it punishes others, and the wrong tax policies will prolong the recession and even make it worse,” concluded Thornberry.  “I am extremely concerned that unless serious tax reform is enacted we will soon have a system that is all punishment and no reward for small business.”