Stop the Tax Hike
Top Line Messaging Themes
August 1, 2012
(Courtesy of the Ways and Means Committee)
The Choice: Destroy Jobs or Create Jobs?
GOP Plan: (1) Stop the Job-Killing Tax Hike, and
(2) Create More Jobs Through a Simpler, Fairer Tax Code
This week, America will see clearly the two different visions Republicans and Democrats are putting forward. The House Republican plan (1) stops the tax hike looming at the end of the year and (2) puts in place expedited procedures to ensure Congress does its job next year, making the tax code simpler and fairer in order to create more jobs. According to independent economists, this tax reform, when coupled with spending cuts, will lead to the creation of more than 1 million jobs in the first year alone.
Democrats will offer a very different plan. The Democrat plan raises taxes on nearly 1 million small business owners and, according to a study by Ernst & Young, destroys over 700,000 American jobs.
This is the choice America faces: A Democrat plan to raise taxes and destroy over 700,000 U.S. jobs, or the Republican plan to make the tax code simpler and fairer and create over 1 million new jobs for American workers.
The Obama Economy
The Obama economy has hit middle-class families hard. For 41 consecutive months, the U.S. unemployment rate has been at or above 8 percent, and nearly 13 million Americans are currently looking for work. Despite these facts, Democrats are insisting on job-killing tax increases. If they don’t get these tax increases, they have openly threatened to raise taxes on every American who pays income taxes.
Stop the Tax Hike
The Democrat tax increase would kick in on January 1, 2013, due to the scheduled expiration of the low-tax policies originally enacted in 2001 and 2003, and extended with bipartisan support in 2010.
The non-partisan Congressional Budget Office estimates that these tax increases, when paired with the rest of the policies that constitute the fiscal cliff we face at the end of this year, could cost America 2 to 3 million jobs.
Bipartisan Support to Stop the Tax Hike
There should be bipartisan support to stop the tax hike. Consider the following:
To learn more about the impending tax increases, read the “Ticking Tax Bomb” series: Part I provides an overview, Part II focuses on typical taxpayers, Part III shows the impact on middle-class families, Part IV focuses on the impact on seniors, and Part V focuses on the impact on small businesses.
A Simpler, Fairer Tax Code Will Help Create Jobs
In addition to preventing job-killing tax hikes, Republicans will take action to boost economic growth and create jobs by providing a fairer, simpler tax code that lowers rates and closes special-interest loopholes.
When coupled with spending restraint, the commonsense tax reform policies written by the Ways and Means Committee and included in the last two House-passed budgets will lead to the creation of 1 million jobs in the first year alone. These reforms include:
Force Congress to Do Its Job
In three of the last five years, everything from underlying marginal income tax rates to rates on investment income has been scheduled to rise sharply – creating uncertainty for families and employers. As part of the effort to help strengthen the American economy and restore tax fairness, we will pass a fast-track process to enact comprehensive tax reform in 2013.
Building on the more than 30 different examples of “expedited procedures,” such as Trade Promotion Authority, already in law, the House Republican tax plan will include specific timelines for the House and Senate to act on comprehensive tax reform next year.