News for the Ninth

Statement

I have heard from a number of folks in the 9th District who are worried about tax increases and are interested in a new approach to government taxation in our country. I believe that Congress must address the long-term economic issues facing our nation, which is why I favor fundamental tax reform. Our current tax system is inefficient, discourages savings and investment, and hinders economic growth.

As of the writing of this column, it appears that a compromise framework has been proposed to stop tax hikes scheduled for January 1, 2011. The extension of the existing tax laws, the tax cuts of 2001 and 2003, is needed to provide our economy with some sense of certainty. Because the proposed framework that is being discussed is only a temporary extension of the existing tax laws, I believe we need to find permanent solutions.

That is why I signed on to H.R. 982, the Tax Code Termination Act, which would terminate the Internal Revenue Code of 1986.

I also believe that a constructive decision to help jumpstart our economy is to pass H.R.205, the Death Tax Repeal Act, which would permanently eliminate this onerous tax on money that families, farmers, and small businesses have already paid taxes on once. The death tax is considered one of the leading causes of the breakup of multi-generation family farms and the selling of some family-owned small businesses. Over the course of a lifetime, these assets will be taxed multiple times. For many rural Americans, their farmland makes them asset-rich and cash-poor. In the past, farm families have been forced to sell off land, equipment, and even entire farms in some cases in order to pay the high taxes imposed by the government as a result of the owner's death. Families are stripped of their livelihoods just to pay the IRS.

I am also a supporter of H.R. 4746, the Taxpayer Certainty Act. As many folks know, unless Congress acts, marginal tax rates will be higher for all taxpayers, the marriage penalty will return, the child tax credit will decrease, taxes on capital gains and dividends will increase and the death tax will return. Taxpayers need more certainty, not the looming threat of a massive tax increase in 2011 after current tax policies expire. If we want to empower Americans to get back to work and back on their feet, raising their taxes is not the answer.

We also need to address the Alternative Minimum Tax, which impacts more middle-class families every year. That is why I am a cosponsor of H.R. 240, the Individual AMT Repeal Act of 2009, which would permanently do away with this much-hated and ineffective tax.

I have met with a number of constituents who support different kinds of tax reform proposals, such as the fair tax and the flat tax. I have taken a look at the fair tax bill and plan to continue to review it in the 112th Congress. In fact, I long have conveyed my concern that because the bill includes language that terminates the sales tax imposed by the bill if the 16th Amendment to the U.S. Constitution is not repealed within seven years after enactment of the bill; it would make more sense for groups to work first to repeal the 16th Amendment. The bill's sponsor, John Linder (R-GA), has noted the importance of repealing the amendment, suggesting that he believes "that the repeal of the Amendment is an important symbolic and functional step in returning power over taxation to the people."

While I understand it is not the intention of H.R. 25 to end up with a federal income tax and a federal sales tax, it is a real possibility because there has been no push for a repeal of the 16th Amendment. Mr. Linder has said, "In my view, we simply cannot risk having both a national income tax and a national sales tax in place at the same time." That is why I believe we must first repeal the 16th Amendment. Once again, my biggest concern with the fair tax is a situation where we would have both a national income tax and a national sales tax in place at the same time. Given the administration that we have in power, one that is seemingly bent on implementing burdensome and complicated tax changes, I believe that is a valid concern.

I have also talked to folks about scrapping the current tax system and replacing it with a flat tax for all citizens. Under this system all Americans would pay the same percentage of their income in taxes with no deductions and loopholes. The flat tax and the fair tax are two proposals that would simplify our tax system and lower the middle-class tax burden.

I am hopeful that the advent of a Republican majority in Congress means we can finally get to work on addressing the long-term economic issues facing our nation. Let me be clear: I favor fundamental tax reform, and I have worked and will continue to work aggressively to change our system by supporting tax policies that foster economic growth and tax simplification.

I firmly believe that the money in your pocket is your money, not the government's, and you need to be able to keep as much of your hard-earned dollars as possible. I believe that the best stimulators of our economy are the American people. If you are allowed to keep, spend and invest as you see fit I think our economy will be just fine.

Please know that I will continue these efforts in the next Congress and will carefully examine all options when it comes to reforming our nation's tax code.

Source