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November 1, 2010

GET TO WORK: Stop the Obama Tax Hikes

THE ISSUE

President Obama and his allies in Congress have made clear they want to raise taxes on January 1, further weakening the American economy, hurting families and costing America jobs. This must be stopped.

THE FACTS

  • The Obama Tax Hikes. These will hit many Americans. These hikes include reducing the child tax credit, re-imposing the marriage penalty, raising taxes on small businesses (the American jobs engine), raising dividend taxes (draining seniors’ incomes), raising capital gains taxes (diverting money from job-creating investments) and raising some personal tax rates.
  • Households Are Already Taxed Enough. American households are sending too much of their income to Washington, even with the 2001 and 2003 tax relief. For 2008, the average household paid $21,616 in taxes.
  • The Return of the Death Tax. Under the Obama tax hikes, the death tax, now at 0 percent, will be raised to a top rate of 55 percent with a $1 million exemption. Misleadingly sold as an easy way to soak only the “rich”, the death tax discourages saving and investing, undermines job-creation, suppresses productivity and wage growth, and hurts those who have their savings tied up in land and other hard-to-sell assets. Studies show it costs the economy more in lost growth than it raises in revenue.
  • The Problems with the Alternative Minimum Tax. Congress created the Alternative Minimum Tax in 1969 to prevent the wealthiest 155 Americans from avoiding taxes completely, but never indexed the tax to account for inflation. As a result, the AMT now imposes taxes on an ever-increasing number of middle-income taxpayers. Moreover, the AMT forces many Americans to figure out their taxes twice, under the regular tax regime and then under the AMT tax regime, to determine which amount they must pay.
  • Corporate Taxes Are Too High. Our corporate income rate, at 40 percent, is the second highest in the industrialized world. The average rate for industrialized nations is a substantially lower 26.3 percent. This obviously puts America at a huge disadvantage in the global competition for jobs-creating investment.

CONGRESS MUST

  • Block the Obama Tax Hikes. The current lower taxes must be made permanent for all individuals, businesses, and investors. Government must get out of the way so the American economy can grow and create jobs.
  • Permanently Eliminate the Death Tax. Congress must stick with current policy and permanently repeal the death tax once and for all.
  • Eliminate the Alternative Minimum Tax. Congress has enacted temporary patches from time to time to ameliorate the impact of the AMT on a growing number of taxpayers. Congress should repeal the Alternative Minimum Tax for good.
  • Repeal the Obamacare Taxes. As part of the repeal of the Obamacare statute, Congress should eliminate the Obamacare taxes, including the “surtax” on dividends and capital gains which hinders economic growth and job creation.
  • Lower Corporate Income Taxes. The top U.S. corporate tax rate should be reduced to 25 percent to help eliminate the incentive to move businesses and jobs overseas.

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