Government Bytes: The Official Blog of National Taxpayers Union

The Official Blog of National Taxpayers Union

You want stimulus? We got it.

Posted by Kristina Rasmussen - January 14, 2009

NTU has endorsed the Economic Recovery and Middle-Class Tax Relief Act.
(H.R. 470).

While some in Congress are considering spending upwards of $1 trillion on government programs and projects, we 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.

Instead, 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).

Thoughts? Add Comment -

Terry Mock said on Jan 15 2009 at 7:57am
Sustainable Stimulus

Sustainable Land Development: Building a Bridge to a New Global Culture
http://www.sldtonline.com/content/view/580/1/

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Executive Director
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www.SLDI.org
www.SLDTonline.com
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www.LDBreakthroughs.com
SLDI Newsletter - http://www.sldi.org/newService/SLDIJan2009.html

Promoting and enabling land development worldwide that balances the needs of people, planet & profit - for today and future generations.