WHEN IT COMES TO TAX REFORM, THE DIFFERENCE BETWEEN REPUBLICANS AND DEMOCRATS IS CLEAR
Kingston Co-Sponsors Taxpayer Choice Act; Democrats Introduce The Mother Of All Tax Increases"
WASHINGTON, D.C. - Congressman Jack Kingston (R-GA/01) has signed on as a co-sponsor of H.R. 3818 - the Taxpayer Choice Act of 2007. The bill has 71 cosponsors. The Taxpayer Choice Act is a comprehensive, individual income tax reform with two principal goals: 1) eliminate the massive tax increase that will occur under the forthcoming expansion of the Alternative Minimum Tax (AMT); and 2) provide individuals an alternative tax system that is fair, simple and efficient.
"Right now, the current tax code is over 9,000,000 words and is so complicated that the average American needs an accounting degree to do their taxes. Or they have to pay someone. But with this bill, taxpayers will now have a choice: stay under the current code or choose a new, simplified system with only two income tax rates. Not only can they choose this easier system, but the bill also saves some 25 million people from getting caught up in the Alternative Minimum Tax next year."
"The Democrats have now introduced their own solution: the "mother-of-all-tax-reforms" bill. Perhaps a better name for it is "mother-of-all-tax increases" because it raises taxes on families and businesses by $1.3 trillion. The plan will result in an average $279 increase in individual income taxes next year. Republicans want to make your life simpler come tax time; Democrats just want to make it more painful."
The new simplified system under the Taxpayer Choice Act has two income tax rates: 10 percent on taxable income up to $100,000 for joint filers, and $50,000 for single filers; and 25 percent on taxable income above these amounts. Taxable income equals gross income minus a standard deduction ($25,000 for joint filers; $12,500 for single filers) and personal exemption ($3500). There are no additional credits or itemized deductions. Also, there are no tax increases and it retains a fair distribution of tax burdens. Finally, the bill also makes permanent the capital gains and dividend tax relief provisions of 2003.
The AMT was originally designed in the 1960s and aimed at preventing 155 wealthy taxpayers from exploiting loopholes in the tax code. But because it was never indexed for inflation, without AMT reform, it will ensnare 25 million taxpayers in 2007; a full 21 million more than in 2006. The Taxpayer Choice Act eliminates this tax increase.