Rep. Cathy McMorris Rodgers (R-WA), Vice Chair of the House Republican Conference, voted for legislation today that would extend the current tax rates for one year, stopping a record $4.5 trillion tax hike scheduled to take effect on January 1, 2013.
"At a time when America is suffering through the worst economy since the Great Depression, I couldn't think of a worse idea than raising taxes on any American," said Rep. McMorris Rodgers. "President Obama's plan to raise taxes is a job killer, and House Republicans are determined to stop it. The bill we passed today will extend the current tax rates for all Americans, providing much-needed tax certainty. By removing the threat of "taxmageddon,' our bill will bolster America's economy and create jobs."
According to the Joint Committee on Taxation, the President's tax plan will hit almost one million small businesses and 53 percent of all small business income.
According to Ernst & Young, it will destroy over 700,000 jobs nationwide, including 15,000 in Washington State.
Today's legislation -- H.R. 8, the Job Protection and recession Prevention Act of 2012 -- extends several key tax provisions:
* Continues the marriage penalty relief
* Maintains the currentchild credit
* Maintains a 15% dividend and capital gains rate
* Maintains the current estate tax and prevents a 20% increase
* Sets higher small business expensing limits
* Provides a 2-year Alternative Minimum Tax patch
Tomorrow, the House will consider H.R. 6169, the Pathway to Job Creation through a Simpler, Fairer Tax Code Act of 2012, which would require the House and Senate to consider legislation containing the following principles for tax reform, included in the last two House-passed budgets:
· (1) Consolidation of the current individual income tax brackets into not more than two brackets and a top rate of not more than 25 percent
· (2) Reduction in the corporate tax rate to not more than 25 percent
· (3) Repeal of the Alternative Minimum Tax
· (4) Broadening of the tax base to maintain revenue between 18 and 19 percent of the economy
· (5) Change from a ""worldwide'' to a ""territorial'' system of taxation
Coupled together, H.R. 8 and H.R. 6169 will ensure that individual tax rates will not increase while comprehensive, pro-growth tax reform is crafter under expedited procedures in 2013.