Congressman Supports Tax Reform and Reduction Plan
WASHINGTON DC Congressman Mac Thornberry (TX-13) today released the following statement outlining his principles for this years budget debate and vote.
Last week I released a package of tax reform principles and bills intended to encourage economic growth by focusing on small business and to make the federal tax system fairer to all taxpayers. With that background it should be no surprise that I am disappointed in the budget proposals offered by President Obama and the majority in the House.
Instead of taking this opportunity to reach across the aisle and work together to achieve a tax system that is flatter and fairer the President and his Party have offered a budget that raises taxes and spending to historic new levels."
The good news is that over the next two days there will be a debate and a number of votes on these proposals. I will be working to pass a budget that does not raise taxes and over time reduces federal spending and debt to a sensible level."
Among the amendments and alternatives to the Presidents budget that I intend to support will be one to cut taxes and reform the tax system. Specifically I hope we can pass an alternative that will allow individuals to choose to pay their federal taxes under the existing code or move to a highly simplified system that fits on a post card with few deductions and two rates. Under such a system couples would pay 10 on their first $100000 in income (singles on $50000) and 25 above that.
Capital gains and dividends would be taxed at 15 and the death tax would be repealed permanently. The proposal includes generous standard and personal exemptions such that a family of four earning $39000 would not pay any tax on that amount."
I am also looking at various proposals to help revive peoples lost savings and to create an incentive for risk-taking and investment. One attractive plan to accomplish that goal is to repeal the capital gains tax through 2010 for all taxpayers."
While repealing the death tax and the capital gains tax will help encourage small business capital formation our corporate income tax rate remains the second highest in the industrialized world. I am reviewing a variety of proposals to reduce the taxes on business to encourage them to maintain or expand their workforce."
At the end of the week when the budget debate and votes are done I think we will have a pretty clear indication whether change means rewarding individual achievement protecting property rights and encouraging economic development or whether change means an expansion of spend borrow tax and regulate."
