LettersJanuary 14, 2009 An Open Letter to the House of Representatives: Taxpayers Demand the Economic Recovery and Middle-Class Tax Relief ActDear Member of Congress:
On behalf of the 362,000 members of the National Taxpayers Union, I write to strongly endorse the Economic Recovery and Middle-Class Tax Relief Act.
While some in Congress are considering spending upwards of $1 trillion on government programs and projects, our members know this would be a grievous mistake. Shifting money from individuals to government programs (many with questionable performance records) will not "stimulate" sustainable economic growth. Government spending doesn't create wealth; it either redistributes or destroys it.
The best way to jump-start the economy is through immediate tax relief for American families and businesses. Reducing the tax burden now on individuals and institutions will ensure long-term economic prosperity later. Among the pro-growth, pro-simplification, and pro-taxpayer policy changes included in the Economic Recovery and Middle-Class Tax Relief Act:
For Individuals and Families:
- Provide every income tax bracket with a rate cut of 5 percent;
- Increase the child tax credit from $1,000 to $5,000;
- Repeal the hated Alternative Minimum Tax;
- Make the lower capital gains/dividends tax rate of 15 percent permanent;
- Repeal mandatory distribution rules for retirement accounts;
- Increase tax deductions for student loans and education expenses; and
- Make all withdrawals from retirement accounts tax- and penalty-free during 2009.
For Businesses and Entrepreneurs:
- Align the corporate tax rate with international competitors by cutting it from 35 percent to 25 percent;
- Allow immediate expensing for business purchases;
- Index the cost basis for capital gains to inflation;
- Extend the 15 percent capital gains tax rate to corporations;
- Make permanent the tax credit for research and development; and
- Extend the carryback period for net operating losses to seven years.
Unlike other approaches, the Economic Recovery and Middle-Class Tax Relief Act contains no new spending and would apply a sensible across-the-board reduction of one percent to all FY 2009 discretionary spending (excluding defense, military construction, and veterans affairs).
Roll call votes on the Economic Recovery and Middle-Class Tax Relief Act, along with votes on costly spending bills, will be heavily weighted in National Taxpayers Union’s annual Rating of Congress.
Sincerely,
Kristina Rasmussen
This letter is available in PDF.
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