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Thursday, August 02, 2012

A Vote for Globally Competitive Tax Rates and Comprehensive Tax Reform, H.R. 6169


Today, the U.S. House will vote on H.R. 6169  -- a bill that forges an accelerated path for the consideration of comprehensive tax reform in 2013. The measure would implement expedited procedures to enable lawmakers in both the House and Senate to overcome technical barriers that often cause bills to languish during the legislative process. 

Last week, SBE Council Member Todd Flemming, along with other small business owners, all agreed at a House Small Business Committee hearing that fixing the tax system was the single most important thing Washington can do to assist business growth and entrepreneurship.
 
In order for the expedited procedure to kick in, the legislation must be introduced by April 30 of next year and include the following:

Consolidation of the current 6 individual income tax brackets into 2, of rates not more than 10% and 25%

A corporate tax rate of not more than 25%

AMT repeal

A broadening of the base to maintain an 18%-19% of GDP revenue level

A move to a territorial system from our current worldwide system

All of these provisions are critical to making the U.S. tax system more globally competitive.   Both corporate and individual tax rates are much too high, and compliance is costly and burdensome.  If the U.S. is to move back to robust levels of investment, job creation and economic growth the tax system must be stable and globally competitive.

SBE Council will KEY VOTE H.R. 6169 as a vote for small business in its forthcoming Ratings of the 112th Congress.  

Yesterday, the U.S. House passed H.R. 8.  The legislation would extend current tax rates for all income levels and preserve the 35% estate tax rate and $5.12 million indexed exemption through 2013 (the death tax will surge to a top rate of 55% and a meager $1 million exemption at year end).  The bill passed by a vote of 256-171 -- 237 Republicans and 19 Democrats supported the bill, while 170 Democrats and 1 Republican opposed it. 

Karen Kerrigan, President & CEO

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