U.S. Congressman Phil Gingrey, MD today joined Rep. Tom Price and other members of the Republican Study Committee in introducing an economic stimulus package aimed at cutting taxes for middle class families and providing incentives for American businesses to invest in the future of this country.
"It is a well-proven fact that tax cuts - and not increased government spending - truly stimulate the economy," said Gingrey. "The Economic Recovery and Middle-Class Tax Relief Act of 2009 provides the right kind of stimulus with significant tax cuts to families and also relieves the tax burden on small business owners allowing them to invest that money directly into their business to create new jobs. And better still, our stimulus package alternative actually reduces federal spending. At a time when families across our nation are cutting their own budgets, they aren't comfortable watching the federal government increase spending by a trillion dollars."
"Just yesterday, I spoke with a struggling small business owner from the 11th District about some of our ideas to help stimulate our economy. His response? Congressman, you're preaching to the choir.'"
Details of the RSC stimulus proposal are included below:
Provides Tax Relief for Families
Provides an across the board income tax cut of five percent
Increases the child tax credit from $1,000 to $5,000
Repeals the AMT
Permanently sets the current lower capital gains/dividends tax rate of 15%
Increases the value of the tax deduction for interest on student loans and the tax deduction for qualified higher education expenses by 50%
Makes all withdrawals from retirement accounts tax free during 2009
Provides Investment Incentives for American Businesses
Immediately cuts the top corporate income tax rate from 35% to 25%
Allows all businesses to immediately expenseor fully deduct on their tax returnsthe costs of assets they purchase for their business in the year that they buy such assets
Allows corporations to benefit from the 15% capital gains rate
Extends the carryback period for net operating losses to seven years
Begins to reign in excessive government spending
This bill sends a message to taxpayers that there are Members of Congress that intend to contain the growth of federal spending. The bill includes a one-percent reduction to non-defense/veterans FY 2009 discretionary spending. While this is a modest limit on the extent to which spending will otherwise increase compared to FY 2008, it is an important promise to the American people that we are serious about our commitment to restrain government spending.