Monday, September 03, 2012
Billy Long: We must simplify our nation's broken tax code
Missouri families and businesses demand a tax code that is simpler and fairer. We need to stop Washington politicians from raiding your paycheck and instead ensure you get to keep more of your hard-earned money in your pocket.
I voted for legislation that lays out an expedited process to reform the tax code in 2013. The tax code reforms in thePathway to Job Creation through a Simpler, Fairer Tax Code Act are in the last two House-passed budget resolutions. The legislation would consolidate the current six income tax brackets into two brackets (10 percent and 25 percent), reduce corporate tax rates to no more than 25 percent, eliminate the Alternative Minimum Tax, and change from a ‘‘worldwide’’ to a ‘‘territorial’’ system of taxation, in which income that is earned in a particular country is taxed only in that country. The reforms in this legislation would broaden the tax base to maintain revenue between 18 and 19 percent. of the economy.
The Pathway to Job Creation through a Simpler, Fairer Tax Code Act would reduce tax rates and the overall tax burden on American families and ensure you get to keep more of your own money.
According to independent economists, the reforms in this legislation, when coupled with spending cuts, could lead to the creation of more than 1 million jobs in the first year alone. The Democrat’s plan to raise taxes would destroy approximately 700,000 jobs according to a study by Ernst & Young.
I have championed reforming the tax code since coming to Washington in January 2011. In fact, the first piece of legislation I co-sponsored was the Fair Tax, which would eliminate the Internal Revenue Service, the income tax, employment tax, the death tax, and establish a consumption-based tax.
Our nation’s current tax code is beyond broken. We need to simplify our nation’s broken tax code and ensure it does not penalize citizens for their success.