Saturday, January 24, 2009

The Conservative Stimulus Plan That Actually Makes Sense

At least some Republicans still believe in Conservatism and fiscals responsibility.

Here is a proposal from The Republican Study Committee (RSC) not being reported in the media.

The Republican Study Committee is a group of over 100 House Republicans organized for the purpose of advancing a conservative social and economic agenda in the House of Representatives.

The Republican Study Committee is dedicated to: -- a limited and Constitutional role for the federal government, -- a strong national defense, -- the protection of individual and property rights, -- and the preservation of traditional family values. The group has played a major role in key policy areas including budget, appropriations, taxes, education, Social Security reform, defense, deregulation, and general government reform. The Republican Study Committee is an independent research arm for Republicans.

The Republican Study Committee (RSC) is introducing the Economic Recovery and Middle-Class Tax Relief Act of 2009—to provide some much-needed, incentive-based relief to job creators and to reduce the cost that government imposes on middle-class families.

The RSC’s Economic Recovery and Middle-Class Tax Relief Act is designed to provide broad,growth-oriented, permanent incentives for economic activity across all sectors and industries, with immediate application and sustained, long-term implications. This will ensure that Washington takes a back seat to Main Street and job creators are empowered to do what they do best—create jobs.

Highlights: The RSC’s Economic Recovery and Middle-Class Tax Relief Act is based on three main themes: 1) Support Families through Tax Relief; 2) Provide Economic Relief or American Businesses and Entrepreneurs; and 3) Save Future Generations from a Crushing Debt Burden.

Support Families through Tax Relief:

  • Five Percent Across the Board Income Tax Cut.
  • Increase the Child Tax Credit from $1,000 to $5,000.
  • Make the Lower 15% Rate on Capital Gains and Dividends Permanent.
  • Repeal the Alternative Minimum Tax on Individuals.
  • Permanently Repeal Required Distributions on Retirement Accounts.
  • Make All Withdrawals from IRAs Tax- and Penalty-Free During 2009.
  • Increase by 50% the Tax Deduction on Student Loans and the Tax Deduction on Qualified Higher Education Expenses.

Provide Economic Relief or American Businesses and Entrepreneurs

Full, Immediate Expensing. By uncapping and accelerating the expensing, this provision would encourage the purchase of assets with which to grow a business.

Significant Reduction in the Top Corporate Income Tax Rate. The bill would immediately cut the top corporate income tax rate from 35% to 25%, aligning it with the average rate in the European Union. By allowing businesses to keep more of the money they earn, this provision would encourage the expansion of businesses, the hiring of more workers, and an acceleration of investment, while making American companies more competitive internationally.

End the Capital Gains Tax on Inflation. By effectively reducing the amount of a gain that is taxable, this provision would encourage the movement of capital in 2009 and spur voluminous economic investment.

Simplify the Capital Gains Rate Structure. By encouraging corporations to sell unwanted assets, this provision would unleash funds and materials with which to create jobs and grow the economy.

Make the R and D Tax Credit Permanent: The purpose of this tax provision is to spur research and development in the private sector.

Extend the Carryback Period for Net Operating Losses to Seven Years. This legislation would extend this period from two years to seven years, which will smooth out changes in business income, and incentivize private sector investment and job creation.

And finally, The Crushing Debt Burden, the best part!

1) NO Trillion Dollar Spending Spree. Even before Congress enacts one penny of spending from a “stimulus” bill currently being put together by Speaker Nancy Pelosi and Senator Harry Reid, this year’s deficit is projected to be, by far, the highest peacetime deficit in the history of the country— 8.3% of GDP. And this is because federal spending is projected to be 24.9% of GDP (also the highest figure in American history, excepting World War II), even before any new spending is enacted. This legislation does not contain one penny of new spending, and rejects the idea that massive new government spending will lead to an economic recovery. Borrowing from one part of the economy and redistributing it to others will not grow the economy.

RegularFolksUnited has these comments from supporters of the Republican plan.

"The RSC's tax cuts are sorely needed in this environment. Currently, businesses are burdened by an above average corporate tax rate and investors have little reason to go near the stock market...If you want to encourage economic growth, you need legislation that will change incentives and give people a reason to invest, produce, and hire more workers." - Pat Toomey, President, Club for Growth

"By stepping forward with a limited government economic stimulus package, the RSC is helping to keep the torch of freedom burning bright. While it is likely the Democrats will ram through their own, bloated, big - government stimulus, people will see as we begin to slip deeper into recession that the bold ideas of the RSC, centered on freedom and empowering the individual, are the only true way towards economic recovery." - Dick Armey, Chairman, FreedomWorks

"Unlike other so-called 'stimulus' ideas supported by the Pelosi-Obama-Reid troika, the ideas contained in your bill set the stage for strong growth in 2009 and permanently after that...Your bill should be the conservative alternative to trillion-dollar bailouts and massive spreading of wealth." - Grover Norquist, Chairman, Americans for Tax Reform.

'Small Business and Entrepreneurship Council' and 'American Conservative Union' Give Support, according to an RSC press release 1/23/2009.

See if your Representative is a member here. Spread this information around, get your friends talking about this pro-growth, tax cut plan vs. the Democrats wasteful, pork-laden plan.

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