At the request of President Obama for input, Congressman Boehner and House Republicans crafted an economic recovery plan using fast-acting tax relief – not slow-moving and wasteful government spending – to create jobs and put our economy back on track.
The plan promoted by Boehner provides relief to those who need it most: middle-class families, job seekers, small businesses owners, the self-employed, and home buyers. Here are the highlights:
- Immediate Tax Relief for Working Families: House Republicans propose reducing the lowest individual tax rates from 15 percent to 10 percent and from 10 percent to 5 percent. Under the proposal, a married couple filing jointly could save up to $3,200 a year in taxes.
–> Lowering the 10 percent rate to 5 percent would result in an average tax cut of $500.
–> Lowering the tax rate from 15 percent to 10 percent would result in an average tax cut of $1,157.
- Help for America’s Small Businesses: House Republicans propose to allow small businesses to take a tax deduction equal to 20 percent of their income. This will immediately free up funds for small businesses to create new jobs.
–> Small businesses (those employing 500 or fewer employees) can currently pay up to 35 percent of their income in taxes to the federal government. This is one of the highest rates among major economies of the world and Republicans want to ease the burden.
- Assistance for the Unemployed: House Republicans propose to make unemployment benefits tax free so that those looking for work can focus on providing for their families.
- Stabilizing Home Values: In order to encourage responsible buyers to enter the market and stabilize prices, House Republicans propose a home-buyers credit of $7,500 for those buyers who make a minimum down-payment of 5 percent.
- No Tax Increases to Pay for Spending: The congressional Democrats’ spending plan includes record levels of government projects and programs that will substantially increase the current deficit, without spurring a rapid economic recovery, according to the non-partisan Congressional Budget Office. House Republicans are concerned that this level of spending could result in near-term tax increases on American families and are insisting that any economic package include a provision precluding any tax increases now or in the future to pay for this new spending.
–> Speaker Nancy Pelosi (D-CA) recently said she is in favor of raising taxes “as soon as possible.”
The proposal by Congressional Democrats spends too much, too late, and won’t help our economy quickly recover. The Republican proposals let the American people keep more of what they earn to spur investment, encourage savings, and create more private-sector jobs.
Found on John Boehner U.S. Congress
