There is no question we need to lower taxes for people at all levels of income, from our job creators to our friends and neighbors who have fallen on hard times. Excessive regulation and taxes are a deterrent to business expansion and income.
I voted for legislation that will extend the tax cuts for two more years. Passage of this legislation is the first step in bringing about a stable economy. Tennesseans should not face a tax increase in this economic climate. Although I believe these tax cuts should be made permanent, passage of this legislation will help alleviate some worries many small businesses, families and farmers were facing if these tax cut extensions were to expire.
While balancing the federal budget with reduced spending, we must lower corporate and individual tax rates to promote greater savings and investment. Both the 2001 and 2003 tax cuts need to be extended permanently.
The 2001 bill cut individual income tax rates across the board, eliminated the death tax and marriage penalty, created an adoption tax credit and a 10 percent income bracket. The 2003 tax cut lowered capital gains and dividends taxes to 15 percent. At a time of economic uncertainty, the worst thing we could do is raise the cost of capital, which is one reason these tax cuts are so important to extend. Furthermore, I think it’s time to end the taxation of unemployment benefits. It’s absurd that while on one hand we would give unemployment benefits to those who have lost their jobs; with the other we take that benefit away by taxing it as income.
I have cosponsored H.R. 470, The Economic Recovery and Middle Class Tax Relief Act, which contains a number of common-sense tax changes that will promote economic growth and overturn decades of misguided policy. Allowing our workers and families to keep more of what they earn and save - while giving entrepreneurs and small businesses incentives to grow - are the best ways to stimulate the economy. Tax cuts, along with incentives such as tax credits for capital investment, are a vital step toward jump-starting our economy.