FOR IMMEDIATE RELEASE: August 1^st, 2012

Paulsen Votes to Block Job Crushing Tax Hike

Stops Tax Hike & Creates Jobs Through Comprehensive Tax Reform

Washington, D.C. – Rep. Erik Paulsen (MN-03), member of the House Ways and Means Committee, today voted in favor of H.R. 8, the Job Protection and Recession Prevention Act, legislation to stop the looming year-end tax hikes which could cost 710,000 American jobs. The plan extends current income tax rates for one year. In addition to stopping the job-crushing tax hikes, the House tomorrow will vote on H.R. 6169, the Pathway to Job Creation through a Simpler, Fairer Tax Code Act, to boost economic growth and job creation by providing an outline for a fairer, simpler, and more competitive tax code which lowers rates and closes special-interest loopholes.

“Last week, I heard directly from Minnesota small business leaders on the impact these tax hikes would have on their ability to create jobs here in our community. Today’s legislation stops the tax hikes threatening every American at the end of the year – giving small businesses and families the certainty needed to help weather these tough economic times. Moving forward, we must create a clear path towards reforming our outdated tax code to make it simpler, fairer and more competitive.” 

Key Initiatives Included in the Legislation
The House passed bill provides a one-year extension of the current tax policies and serves as a bridge to tax reform in 2013. The legislation would also:

• Maintain existing tax rates and thus prevent a tax hike on January 1, 2013,

• Continue marriage penalty relief, 

• Maintain the $1,000 child credit, 

• Maintain a 15% top rate on dividends and capital gains, 

• Preserve repeal of PEP and Pease, 

• Maintain the estate tax at its 2011 and 2012 parameters (indexed for inflation), 

• Provide higher Sec. 179 small business expensing limits, 

• Preserve certain education-related benefits; and

• Provide a two-year AMT patch (covering 2012 and 2013)

During the 112^th Congress, the House Ways and Means Committee has laid the ground work for comprehensive tax reform, working with a diverse group of experts, and holding more than 20 public hearings. H.R. 6169 includes specific timelines for House and Senate action on comprehensive tax reform next year. 

For more information on Rep. Paulsen’s work in Congress visit www.paulsen.house.gov.

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