US Rep Bass Statement on Tax Reform Legislation

WASHINGTON – Congressman Charles F. Bass (NH-02) issued the following statement this evening after the House of Representatives passed legislation (H.R. 6169) to require Congress to consider any tax reform legislation under an expedited process that meets specific criteria, including repealing the alternative minimum tax, reducing the corporate tax rate, broadening the base to generate revenue, and consolidating tax brackets.

Bass said:

“The legislation passed by the House today provides a framework toward comprehensive tax reform intended to make our tax code fairer, simpler and more competitive.  By eliminating unnecessary loopholes and special interest deductions, we can lower tax rates for families and employers while broadening the tax base to ensure everyone pays their fair share. 

“The principles for reform established in today’s bill are similar to those in the bipartisan budget I helped introduced based on the Simpson-Bowles Commission that would increase revenue through the reform of our tax code and decrease spending in a responsible manner.  It is time for compromise and for both sides to come together to develop real solutions.  Today’s vote is a start in that direction and I am willing to consider other serious proposals to reform our nation’s tax code and find common ground for a final solution.  However, we must get past the political rhetoric of saying we can solve our nation’s problems with just raising taxes on one segment of our population or suggesting that only more spending cuts are needed, which is both inaccurate and insincere.

“In today’s weak economy, revenue as a percentage of Gross Domestic Product (GDP) is around 15 percent and spending as a percentage of GDP is near 24 to 25 percent.  At the time the United States was running a budget surplus, revenue and spending were both around 20 percent of GDP.  We must get back to these levels by cutting the size of government and increasing revenue through a strong economy and through reforming our tax code to broaden the base and ensure everyone is paying their fair share.

“I will continue to work with my colleagues on both sides of the aisle to prevent our nation from falling off the “fiscal cliff” at the end of the year and to get our nation back to the point where it is strong, vibrant, and prosperous for our children and grandchildren.”

http://bass.house.gov

NH House Passes LLC Reforms

CONCORD – House Speaker William O’Brien (R-Mont Vernon) and House Majority Leader D.J. Bettencourt (R-Salem) offered the following statements on the passage of Senate Bill 203, which revises and rewrite existing laws regarding limited liability companies (LLC) to making them more user-friendly.

House Speaker William O’Brien

“This is one more pro-business step we have taken to help the creation of good, new jobs here in New Hampshire. We need to get the Granite State back in the game of being competitive and helping our citizens.”

House Majority Leader D.J. Bettencourt

“These changes will make it easier for entrepreneurs to start small business and expand and hire employees. Our first goal was always to create jobs, and we have taken huge strides in that regard. The numbers bear this out, since the last Election Day, unemployment has dropped by one percent, and New Hampshire’s unemployment rate is among the lowest in the nation. This is a huge sea change from the past legislatures that passed many new regulations, increased state spending by a whopping 25%, and passed over 100 news taxes and fees. We have not lost focus on why we were sent here and will continue our efforts to create jobs, to bring fiscal responsibility to state government and to restore accountability.”

CEI - Today in the News: Central Planning, Stimulus and Tax Reform.

Central Planning

Senator Chris Dodd recently authored the "Livable Communities Act."

CEI's Senior Fellow Chris Horner explains why this bill is nothing more than a federal government power grab.

"Livability and the like serve as the rationale for all manner of intrusions. Innovation Newsbriefs in October 2009 noted that it was "the Administration's intent to increase the federal role in shaping local development patterns and influencing travel behavior. 'Smart growth' planning and shifting more automobile travel to public transportation have been long-standing goals of progressive planners and assorted anti-sprawl activists, but these goals may now become a matter of federal policy under the Administration's 'livability' initiative."

 

Stimulus & Deficits President Obama has proposed $50 billion more in deficit spending after his original $800 billion stimulus package failed. CEI's Counsel for Special Projects Hans Bader argues that this will simply subsidize waste. "The $50 billion Obama proposes is supposedly for infrastructure spending, but his administration defines "infrastructure" so broadly that the money could be used for all sorts of boondoggles that do not improve transportation."

Tax Reform

As mentioned yesterday, Barack Obama has proposed a tax write-off for businesses.

Director of CEI's Center for Investors and Entrepreneurs John Berlau argues that President Obama’s new economic recovery plan deserves one qualified cheer.

"His call for 100 percent first-year expensing for plants and equipment and making permanent the research and development tax credits, with some important tweaks, would positively affect incentives for growth."



CEI - Stimulus, Tax Reform, and Incandescent Light Bulbs

Stimulus & Deficits

In the Richmond-Times Dispatch editorial, "The Recovery Act Worked," Michael Cassidy wrongly denies that the $800 billion stimulus package "will make the federal deficit worse." 

CEI's Counsel for Special Projects Hans Bader points out that, according to the CBO, the stimulus will shrink the economy "in the long run."

"In the short run, the CBO claimed the impact of the stimulus was positive. But that conclusion was based on economic theory, not real-world data. The CBO did not take into account how regulations in the stimulus package destroyed jobs in America's export sector. Nor did it take into account how 79 percent of the stimulus package's green jobs funding went to foreign firms."

Tax Reform Barack Obama has recently proposed a tax write-off for businesses. CEI's Senior Fellow Chris Horner explains why this new tax policy may actually reduce carbon emissions. "President Obama’s imminent proposal to allow businesses to expense capital equipment through the end of next year is something my colleagues at CEI — particularly Marlo Lewis — have been advocating for some time. Not as “stimulus” (though it should have some stimulative effect — if not enough of one to overcome the negative effect of Obama’s refusal to maintain current income-tax rates in 2011). But as an emissions-reduction scheme."

Incandescent Light Bulbs

The last major US factory making incandescent light bulbs is closing this month.

CEI's General Counsel Sam Kazman argued last year against the government's decision to ban incandescent bulbs.  He referenced a 1980s town in Iowa that gave out 18,000 free fluorescents in an effort to conserve electricity.  The plan to save energy did not work.

"Despite the fact that over half of the town's households participated, electricity use actually rose by 8 percent. Once people realized they could keep their lights on at lower cost, they kept them on longer."