GOODLATTE VOTES TO PREVENT TAX INCREASES ON AMERICAN FAMILIES AND SMALL BUSINESSES
Washington, DC: Congressman Goodlatte issued this statement following House passage of H.R. 8, the Job Protection and Recession Prevention Act of 2012, which provides a one year extension of all current tax rates. This bipartisan legislation passed the House of Representatives by a vote of 256 to 171.
“Without Congressional action, five months from today nearly every American will be facing an increase in their tax bill. These tax increases will hit individuals, families, and small businesses alike. With our economy still struggling to recover, the last thing we need are crushing tax increases.
Today I was pleased to support bipartisan legislation which provides certainty for American families and small businesses by stopping this looming tax hike. Failure to act could mean that a family of four earning $50,000 a year will see their taxes increase nearly $2,200 per year and the total tax increase would be more than $4 trillion over the next decade. Small businesses, the economic engine of our country, want to invest in their firms and hire new workers, but instead they are bracing for these costly tax increases which will affect nearly 1 million business owners. Quite simply tax increases are the wrong prescription for job creation and economic growth.
Lower taxes mean citizens can keep more of their own money and are fundamental to economic recovery. When we lower the tax burden on America's families, we encourage investment, savings and general entrepreneurship.
While halting these devastating tax increases is critical to economic recovery, the Congress must also enact meaningful tax reform. It is evident that our tax code is no longer working in a fair manner for Americans. Our current tax code is chocked full of exceptions, deductions, and corporate loopholes that have allowed some businesses and wealthy individuals to escape paying their fair share in taxes. Tax reform is needed to ensure a more equitable tax code. That is why I introduced the Tax Code Termination Act, which abolishes the Internal Revenue Code and calls on Congress to approve a new Federal tax system. My legislation would finally force Congress to fully confront reform of our complicated tax system.”
Key Features H.R. 8, the Job Protection and Recession Prevention Act of 2012:
The legislation provides a one-year extension of the following tax policies originally enacted in 2001 and 2003 and then extended again in 2010.
• Maintain existing tax rates and thus prevent a tax hike on January 1, 2013,
• Continue marriage penalty relief,
• Maintain the $1,000 child credit,
• Maintain a 15% top rate on dividends and capital gains,
• Preserve repeal of the Personal Exemption Phaseout (PEP) and the limitation on itemized deduction (Pease),
• Maintain the estate tax at its 2011 and 2012 parameters (indexed for inflation),
• Provide higher Sec. 179 small business expensing limits,
• Preserve certain education-related benefits; and
• Provide a two-year AMT patch (covering 2012 and 2013)