Skip to main content

CONGRESSMAN LAMBORN CO-SPONSORS BILL TO CUT TAXES FOR FAMILIES & BUSINESSES

April 6, 2009

Washington

Congressman Doug Lamborn (CO-05) today announced he is co-sponsoring landmark legislation aimed at helping struggling families and businesses during this tough economy.


H.R. 470, the Economic Recovery and Middle-Class Tax Relief Act
, is designed to provide broad, permanent incentives for economic growth.


"Many families and businesses are struggling right now. However, in the rush to help, Washington should be careful not to make a bad economy even worse. Time and again, history shows when it comes to government intervention, good intentions often have disastrous outcomes. Consider Japan’s massive federal expenditures following their 1989 stock market crash. The spending had little to no impact on their recovery. Instead, today Japan is saddled with a huge government debt and went through nearly 20 years with almost no growth in gross domestic product.


"Is that really the model we want to follow? I do not think so.


"Instead, we must embrace the fundamental economic and market principles which gave us the greatest economy in the world. After a year of ineffectively throwing money at the problem, it is time for a new approach. This legislation will empower our families and businesses, not our government, to provide us renewed prosperity." – Congressman Doug Lamborn (CO-05)


Highlights of the Economic Recovery and Middle-Class Tax Relief Act


Provide Tax Relief For Families. The bill would: 1) provide an across the board income tax cut of five percent; 2) increase the child tax credit from $1,000 to $5,000; 3) repeal the Alternative Minimum Tax; 4) make the current lower capital gains/dividends tax rate of 15% permanent; 5) permanently repeal distribution requirements on retirement accounts; 6) increase by 50% the value of the tax deduction for interest on student loans and the tax deduction for qualified higher education expenses; 7) make all withdrawals from retirement accounts tax free during 2009.


Unleash America’s Businesses and Entrepreneurs. The bill would: 1) immediately cut the top corporate income tax rate from 35% to 25%; 2) allow all businesses to immediately expense – or fully deduct on their tax returns – the costs of assets they purchase for their business in the year that they buy such assets – "Section 179" expensing; 3) end the capital gains tax on inflation by indexing the cost basis used when calculating the capital gains tax on assets acquired before the end of 2009; 4) allow corporations to benefit from the 15% capital gains rate; 5) make the research and development tax credit permanent; and 6) extend the carryback period for net operating losses to seven years.


Save Future Generations from a Crushing Debt Burden. This alternative to the Pelosi-Reid stimulus plan contains NO Trillion Dollar Spending Spree. Even before Congress enacts one penny of new spending as part of any "stimulus" bill, federal spending for FY 2009 is projected to be almost 25% of the GDP, the highest figure in American history except during World War II. To send a message to taxpayers and to markets that Congress intends to contain the growth of federal spending, the bill includes a one-percent reduction to non-defense/veterans FY 2009 discretionary spending. This is a modest limit on the extent to which spending will otherwise increase compared to FY 2008, but an important first step toward a commitment to spending restraint.

# # #