We can Create Jobs through Tax Relief
Yesterday was a whirlwind day. I spoke to the DeSoto County Republican Women and the Hernando Tax Day Tea Party. I then drove across the district to speak to the Columbus Tax Day Tea Party. Click here to view an article about the Hernando Tea Party. Click here to view my Columbus Tea Party Speech. I am in the district every day working hard for your vote.
Now that tax day has passed, I’m reminded of the duty all conservatives most uphold in regards to taxing and spending. It is our obligation to fight against tax increases of any kind. We are Taxed Enough Already. Hard working Americans live on fixed budgets and so should the government. We need conservatives in Congress who will advocate for a drastic overhaul of the federal tax code to surge federal revenues and job growth. The Bush Tax cuts are set to expire at the end of this year and Democrats are only advocating policies that will ultimately raise taxes. I can’t help to wonder how difficult next year’s Tax Day maybe for American families.
Last week, Federal Reserve Chairman, Ben Bernanke, cited our deficit as the biggest threat to the stability of our economy. He proposes that we either raise taxes or reign in entitlement spending. I advocate freezing spending at pre-TARP and Stimulus levels. Chairman Bernanke warned that our country cannot pay for every federal government program that Congress wants. But we know Members of Congress, worried about reelection, will not cut the pork and spending to bring back fiscal sanity. It is going to take a conservative fighter, committed to term limits, who is unafraid to end the back room dealings of pork barreling, career politicians. I’ll pledge to bring sensibility and responsibility back to the budgetary process and return prosperity and jobs to our country.
In addition to a spending freeze, our country needs significant tax reductions. Federal income taxes have been cut four times in the past century, and each time the economy has grown vigorously and tax revenues have expanded substantially. Runaway spending, not tax cuts, increase the debt. President Reagan championed the Economic Recovery Tax Act. The measure cut federal income tax brackets by 25 percent, implemented the Accelerated Cost Recovery System and a 10 percent Investment Tax Credit for businesses. The bill utilized free market principles that in a short period of time lowered unemployment from nearly 10 percent in 1982 to 5.5 percent by 1989. Our economy grew at robust rates for the next twenty-five years while simultaneously creating unparalleled wealth for individuals and some forty-three million new jobs.
While on the campaign trail, I am often asked, Henry how will ending the pork barrel spending and cutting taxes creates jobs? How do you propose we jump start our economy? I think the model President Reagan enacted can serve as a blue print. We need to freeze spending followed quickly with a comprehensive tax overhaul. The below are a few ideas that I support.
First, individuals need a simplified federal tax code which taxes at two rates, 10 percent on adjusted gross income for individuals who make less than $50,000 and $100,000 for joint filers. Higher income individuals and joint filers should be taxed at a standard 25 percent rate. Generous deductions should remain in place.
Second, we need to remove taxes on unearned revenue such as capital gains, interest and dividends. Current practices essentially tax individuals twice. This will encourage individuals to invest their savings, therefore, allowing banks to loan more money so businesses can expand. Additionally, our country needs a full repeal of the estate tax both at the individual and business level.
Third, we need to repeal the alternative minimum tax. This is just a government accounting gimmick to tax middle-income earners more. The ceiling of income requirements for the AMT is reduced nearly every year, thus affecting millions of individuals and families.
Fourth, for U.S. businesses to invest and create more jobs, we need to eliminate the corporate business tax. American businesses will gain a competitive advantage against foreign companies and exports will increase while decreasing outsourcing of American jobs. In place of the corporate income tax, I support a business consumption tax of 8.5 percent after expenses are subtracted from revenues. This low rate would spur direct foreign investment into our country and enable U.S. small and large businesses to expand their operations and increase employment.
Fifth, businesses need immediate tax relief. Tax savings today are more essential than tax savings years away. I support immediate tax deductions on investments and accelerated depreciation of assets, so that companies can remain profitable through paying less taxes.
Big government, higher taxes, and socialistic policies will only make us poorer in the long run. But if we take steps to freeze spending, lower taxes and reduce regulation, we’ll soon have an expanding economy and put people back to work. However, many will resist these measures. We need to elect conservatives fighters who will fight for a massive tax overhaul. Right now, next year’s Tax Day will be difficult, but if we elect a new breed of conservative fighters to Congress, we can save our country and protect the freedom that taxes inherently steal from us all.
This is part I in a two part series discussing taxes and jobs in Mississippi and America.