Last night, a bipartisan majority of the House voted to stop President Obama’s tax hikes that Ernst & Young says would destroy more than 700,000 jobs. Today, the House will vote to begin fixing our tax code for families and small businesses – a key element of the GOP Plan for America’s Job Creators.
As Speaker John Boehner told FOX News’ Brian Kilmeade, House Republicans are “serious about reforming our tax code, bringing the rates down, make a flatter, fairer system for all Americans.” That’s because a simpler tax code that eliminates loopholes and lowers rates for everyone will help grow our economy and bring home some of the jobs that have gone overseas.
The Pathway to Job Creation through a Simpler, Fairer Tax Code Act (H.R. 6169) creates an expedited process to help make that kind of fundamental tax reform a reality. Under this bill, the House Ways & Means Committee Chairman is required to introduce legislation by April 30, 2013 – and the House must act on that bill by early June – that will:
- Simplify the tax code by consolidating the six current individual income tax brackets into no more than two at 10 and, at most, 25 percent – consistent with the House-passed budget;
- Repeal the Alternative Minimum Tax (AMT) that threatens 31 million middle class families with higher taxes;
- Create more certainty for families and small businesses by adopting permanent reforms, and eliminating the need for constant extensions and revisions that create uncertainty;
- Make American job creators more competitive by moving to a “territorial” tax system, and reducing the top rate paid by American businesses to no more than 25 percent;
- Make the tax code fairer by eliminating special interest loopholes and carve-outs that only benefit certain special interests; and much more.
Speaker Boehner released a list of 88 American economists today who agree “stopping all of the tax hikes scheduled for January 1 is necessary to prevent further job losses and damage to our nation’s economy.” But after more than three years with unemployment above 8 percent, we can’t stop there – to help grow our economy and create new jobs, we have to fix our tax code as well.