U.S. Congressman Fred Upton

Washington, DC, Aug 2 - Representative Fred Upton (R-St. Joseph) voted today for legislation that lays the groundwork for enacting pro-growth tax reform in 2013.  The “Pathway to Job Creation through a Simpler, Fairer Tax Code Act of 2012” (H.R. 6169) would establish an expedited timeline for Congress to consider comprehensive tax reform legislation this upcoming spring.  Upton supports broad restructuring of the federal tax system to provide relief for Michigan families as well as to give American businesses the certainty they need to compete and create good-paying jobs.  H.R. 6169 passed the House by a vote of 232-189 and now heads to the Senate for consideration.  Today’s vote to overhaul the nation’s tax system coincides with yesterday’s House passage of bipartisan legislation (H.R. 8) that blocks a massive tax increase from hitting all U.S. taxpayers on January 2, 2013, in part by extending current income tax rates for one year. 

“If there is one thing that Michigan job creators need right now it is greater certainty to hire, invest, and plan for the long term,” said Upton.  “In the face of high unemployment, the administration remains tone deaf to the plight of American employers, adding to the costs of doing business through higher taxes and increased regulation.  Simplifying our massive and overly complex federal tax code will help Michigan employers compete and provide much needed relief for struggling families here at home and around the country.”

In order for such tax reform legislation to receive expedited treatment in the House and Senate next year,  H.R. 6169 further stipulates that such a package must contain proposals to: 1) consolidate the six current individual income tax brackets into two brackets of 10 and not more than 25 percent; 2) reduce the corporate income tax rate to not more than 25 percent; 3) repeal the alternative minimum tax (AMT); 4) broaden the tax base so that revenues comprise between 18 and 19 percent of gross domestic product (GDP); and 5) reform the current system of foreign taxation.

Providing tax relief is particularly important as the national unemployment has remained above 8 percent for 41 consecutive months – 48 months in Michigan – and nearly 13 million Americans find themselves looking for work.