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“YES” on the McConnell/Hatch Tax Hike Prevention Act amendment to S. 3412
July 25, 2012
NTU urges all Senators to vote “YES” on the McConnell/Hatch Tax Hike Prevention Act amendment to S. 3412. This amendment provides urgently needed tax relief for millions of Americans and at least attempts to get the ball rolling for significant Tax Code reform.
In contrast to Sen. Reid’s (D-NV) tax-hike plan, the McConnell/Hatch proposal extends the 2001/2003 tax relief for taxpayer across the board. It also includes a two-year Alternative Minimum Tax (AMT) “patch” sparing over 30 million middle-class families from being slammed with a multi-billion-dollar tax hike in both 2013 and 2014 tax hike that would have stripped those families of more than $3,000 apiece each year..
While NTU has consistently advocated for a full repeal of the repugnant death tax, rather than ignoring the growing crisis for thousands of family farms and businesses, the McConnell/Hatch proposal extends the current rate of 35 percent with a $5 million exemption, sparing many jobs. The amendment also requires the Senate Finance Committee to undertake a comprehensive overhaul of the Tax Code comprising simplification, lower income and corporate tax rates, and a repeal of the AMT.
The McConnell/Hatch amendment imparts some additional certainty for taxpayers and an economy facing numerous tax hikes, including the billions of dollars in new or higher taxes in the President’s Affordable Care Act. However, it is dismaying that Congress has once again allowed our economy to walk up to the edge of this brink with only temporary policies to buy more time for indecision. One approach Congress could take immediately is to adopt one of several Tax Code termination measures introduced in various forms over the past several years, which have a sunset process for the current tax law and an expedited legislative mechanism for consideration of tax reform – prompting consideration of bolder measures than the Amendment’s instruction language would seem to permit.
Taxpayers need more than a bare minimum of reform: they need long-term, substantial relief. Scrapping the code and repealing the death tax are two ways to not only leave more money in the wallets of hard-working taxpayers, but also provide real stimulus and growth to our struggling economy. Congress should be focused on long-term prosperity, not election-year stopgaps.
Roll call votes on the McConnell/Hatch amendment will be significantly weighted in our Annual Rating of Congress.If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700