Our Broken Tax Code
America's persistent high unemployment rate is directly attributable to our complex and confiscatory tax code and the constant threat of even higher taxes from this Administration. As a result of a series of expiring tax cuts and the imposition of new taxes as part of Obamacare, the largest tax increase in American history is set to take effect on January 1, 2013. Unless Congress acts, the American people will face $494 billion in higher taxes next year. This impending tax hike, together with the President's unrelenting call for even higher taxes, makes it much less likely that small businesses, job creators and entrepreneurs will hire new workers.
Those in Congress who give lip service to fiscal responsibility by insisting on raising taxes now and cutting spending later are part of the problem. Increasing taxes is a poor deficit-reduction strategy since higher taxes kill jobs and we need more taxpayers, not less, to bring revenues back to their historic level of 18 percent of gross domestic product.
The best way to grow the economy, create jobs and restore revenue is to cut taxes and get the government out of the way. That is why we should abandon our needlessly complex and unfair tax code and replace it with an alternative system that promotes work, saving and investment.
Andy Barr's Plan for Tax Reform
In Congress, I will support real tax reform that will promote growth, create jobs and unleash the American people from the burden of high taxes. It will:
Immediately stop the tax increases scheduled to take effect in 2013 and make current law permanent to eliminate the uncertainty that is preventing recovery.
Abandon the $503 billion in tax increases scheduled to take effect as part of Obamacare.
Reduce the number of tax brackets and lower marginal rates on those that remain to allow individuals, families and small businesses keep more of what they earn.
Broaden the tax base by eliminating deductions, loopholes and tax favors for special interests and the politically connected.
Eliminate the Alternative Minimum Tax.
Abolish the Death Tax.
Expand tax-free savings accounts like 401(k) plans, IRAs, 529 college savings plans, and health savings accounts (HSAs).
Allow individuals to deduct the cost of purchasing health insurance.
Make the United States the most desirable location for new business investment through a bold series of business tax cuts, including the following:
Reduce the corporate income tax rate (which is the highest in the world among developed nation) to a level competitive with other nations.
Eliminate the corporate tax on repatriated profits for American companies since those profits are used to make new capital investments, increase dividend payments to shareholders and hire new workers.
Eliminate taxes on capital gains, dividends and interest for all taxpayers to reward personal savings, encourage capital formation and make American entrepreneurs more competitive.
Allow companies to expense new equipment in the tax year purchased to spur innovation and growth in American manufacturing.