This week Rep. Ralph Hall (TX-04) voted to pass legislation focused on job creation and economic growth through a two-part tax plan.H.R. 8, the Job Protection and Recession Prevention Act of 2012, which passed 256-171, extends tax relief that is scheduled to expire January 1, 2013. H.R. 6169, the Pathway to Job Creation through a Simpler, Fairer Tax Code Act of 2012, which passed 232-189, simplifies the tax code for American families and small businesses.
"America is now stretching into its 42nd consecutive month of unemployment at 8% or higher and our Gross Domestic Product (GDP) growth for the year's second quarter has slowed from 1.9% to 1.5%," said Hall. "Despite our nation's weak economy and high unemployment, the President is now demanding higher taxes on small businesses and job creators."
Hall continued, "Raising taxes will not save our weak economy, create jobs, or solve our debt crisis - in fact, it will have the opposite effect. If we fail to renew the tax cuts expiring January 1st, a family of four earning $50,000 a year would see their taxes increase by nearly $2,200. Accounting firm Ernst & Young has also reported the President's tax hike proposal on nearly 1 million small business owners could cost the economy over 700,000 jobs." In order to keep up with population growth, a minimum of 150,000 jobs must be created. Last month, 80,000 new jobs were added.
"Americans cannot afford higher taxes and the drastic impact it would have on the economy. Republicans are fighting for tax relief for all Americans and small business owners. Allowing people to keep their money in their own pocketbooks, coupled with responsible federal budgeting and simplifying the tax code, provides more room for economic growth and job creation as small business owners are able to grow their businesses and hire new workers."
The Job Protection and Recession Prevention Act would:
Maintain the rate of 15% on capital gains and dividends;
Maintain the estate tax rate exemption at 35% and $5 million exemption instead of defaulting to 55% rate exemption and $1 million exemption;
Protect the middle class from being ensnared in the Alternative Minimum Tax (AMT) for 2012 and 2013; and
Extend small business expensing, the current $1,000 child tax credit, and marriage penalty relief.
The Pathway to Job Creation through a Simpler, Fairer Tax Code Act reforms the current tax code by:
Reducing the current six tax brackets down to just two (10 and 25 percent);
Establishing a corporate rate of 25 percent, helping to make America competitive in the global marketplace;
Eliminating the alternative minimum tax;
Transitioning America to a more competitive territorial tax system; and
Maintaining revenue levels in the range of historic norms (18-19 percent of gross domestic product).
"Job creation and economic growth are my top priorities, and I will continue to fight in Washington so constituents in my district can feel more confident in America's economy, those who are looking for work can find good jobs, and people can provide for their families."