King, Dreier Unveil Fair and Simple Tax Act
Rep. Peter King (R-Seaford) joins today with Rep. David Dreier (R-CA), Grover Norquist, president of Americans for Tax Reform, and other members of Congress to unveil a new tax proposal that will simplify the tax code, save Americans billions in tax dollars, and promote economic growth. The legislation, H.R. 5105, is appropriately named the Fair and Simple Tax Act, or FAST Act.
"With so much uncertainty about the future of the economy, I believe Congress must be proactive and implement a solution that allows Americans to keep and manage more of their hard-earned money," said King. "This is why I am an original cosponsor of the FAST Act."
The FAST Act cuts the current 6-bracket income tax structure in half, creating three simple brackets of 10% (under $40,000), 15 % (40,000-$150,000), and 30 % (over $150,000). It also repeals the estate tax and the gift tax, and reduces the individual capital gains tax rate from 15% to 10%. Additionally, it increases America's global competitiveness by reducing the corporate tax rate from 35% to 25%.
The bill gives Americans better control of their healthcare and savings. It provides a $7,500 tax deduction for individuals and a $15,000 tax deduction for families who do not have employee-sponsored health care, so they will have extra funds to purchase healthcare or invest in a Health Savings Account. It also creates three new tax-free savings accounts, to encourage savings without penalty.
"The FAST Act is a pro-growth, pro-America plan," said King. "It helps families save, encourages investment, and increases global competitiveness to create more jobs. At a time when stimulating the American economy is a top priority, cutting taxes is the common sense solution."
Other original cosponsors of H.R. 5105 are Republican Whip Roy Blunt (R-MO), Rep. Eric Cantor (R-VA), Rep. Charlie Dent (R-PA), Rep. Vito Fossella (R-NY), Rep. Wally Herger (R-CA), Rep. Mary Bono Mack (R-CA), Rep. Candice Miller (R-MI), Rep. George Radanovich (R-CA), Rep. Ed Royce (R-CA), and Rep. Pete Sessions (R-TX). Companion legislation was introduced in the Senate by Senator Kit Bond (R-MO).