Taxes and the Economy

Government is now America’s “biggest business.” Federal, state, and local taxes combined are now greater than the revenues of any single industry. More than 40% of family income is now paid to the government in the form of fees or taxes. History has shown that when nations have taxed their people beyond 30% of their income that government revenue is ultimately reduced and the nation itself experiences significant decline. I am unalterably convinced that the ultimate result of increased taxes is a reduction in overall American productivity and standard of living, and to that end, I will continue to support policies which accomplish the following five common-sense economic principles:

• Cutting taxes to encourage work, savings and job-creating investment
• Eliminating red tape and bureaucracy at all levels
• Abolishing federal income tax in favor of a National Sales Tax
• Workfare replacing welfare
• Requiring prisoners to work and study

I support the implementation of a “Fair Tax” system. A fair tax system ensures that every person in the United States pays the same taxes, that the “income tax” is abolished, and that the Internal Revenue Service is done away with. After the fair tax system is initiated, each state would take care of collecting the taxes collected and turn everything over to the Treasury as required.

There is still more resistance than necessary towards the Fair Tax, and until we can move forward with this system we must cut income and corporate tax rates. Hard working Americans are taxed too much, and it is time for Congress to give real relief to people around this country. I also have pushed for the repeal of the alternative minimum tax for individual taxpayers during my tenure in the House of Representatives.

I have always supported a repeal of the infamous “Death Tax.” The U.S. Government should not be taking advantage of those who have passed away and their families by attempting to squeeze more taxes out of their estates. Government must keep their hands out of the pockets of grieving families. I also oppose any attempts to further place a tax on marriage or families.

In 2001, under President George W. Bush’s leadership, Congress enacted the Economic Growth and Tax Relief Reconciliation Act of 2001. The tax cuts included in this act were extremely instrumental in helping the economy surge and giving stability to middle class families. We need to make these tax cuts permanent in the coming years. We must further reduce dividend and capital gain tax rates and the tax deduction for state and local sales taxes. I am also a strong proponent of further tax deductions for tuition and related expenses and an increased expensing allowance for depreciable business assets.

The Economic Growth and Tax Relief Reconciliation Act of 2001 also set into motion the increases of child tax credits. These tax credits must be made permanent. The current taxing system is a burden for many families, and these child tax credits offer a much-needed respite from the taxes owed to the federal government. Members of Congress must not be afraid to make such tax credits permanent.