Standing on the steps of the Stewartsville post office in Warren County's Greenwich Township, Congressman Leonard Lance today called for the need of basic tax reform to unleash a true economic and jobs recovery. Joining Lance was New Jersey state senator Michael Doherty, Warren County Freeholder Rick Gardner, Greenwich Township Deputy Mayor Elaine Emiliani and taxpayer advocates.
"Our current tax system is too complex, too costly and too burdensome," said Lance. "Individuals, working families, and businesses spend over six billion hours and more than $160 billion per year trying to do their annual taxes. It's wrong and it's why the U.S House recently passed a reform plan that calls for a simpler, flatter and fairer tax system that will restore economic opportunity and prosperity to our Nation's economy."
Earlier this month the U.S House passed a 2013 budget blueprint. Among the many initiatives to bring our Nation's spending and debt under control, this budget includes important tax reform proposals:
The House budget cuts tax rates and provides for just two individual brackets of 10% and 25%;
The budget would end the Alternative Minimum Tax, which originally was aimed at 155 of the wealthiest Americans but now ensnares a growing number of middle-class New Jersey taxpayers each year;
The blueprint promotes saving by eliminating taxes on interest, capital gains, and dividends; also eliminates the death tax;
And U.S. corporate rates would be reduced from 35 percent (currently the highest in the world) to 25 percent while nearly eliminating taxes on American corporations' earnings from overseas operations under House-passed budget.
"These proposals will make American businesses and workers more competitive and encourage reinvestment and economic growth right here at home," added Lance.
Lance noted that President Obama budget calls for new taxes on earnings, dividends and savings for many New Jersey family households and small businesses. The President's plan includes the so-called "Buffett Rule" -- a proposal that President Obama himself called, "a gimmick" that would raise at most $5 billion a year, or enough to pay one week's interest on the national debt.
"Instead of an election year gimmick that won't help the economy, it's time to focus on fundamental tax reform that promotes hard work, savings and investments to help bring forward economic growth. In an environment with trillion-dollar deficits and 8-plus percent unemployment, growth is more important than ever," concluded Lance.