Smith Opposes Tax Hike Proposal

Press Release

Smith Opposes Tax Hike Proposal

Congressman Adrian Smith (R-NE) today criticized a proposed House Ways and Means tax plan which would increase the individual income top tax rate in the U.S. from 35 to 44 percent and would adversely affect approximately 10 million taxpayers - including small business owners, farmers and ranchers.

"This is absolutely the wrong policy direction for America and, unfortunately, the consequences of failed congressional leadership on tax issues. For generations - from Kennedy to Reagan to today - lower taxes have kept our economy strong.

"People are working harder; families are more burdened than ever before just to maintain their standard of living. The last thing we should do is hike taxes. This is precisely the type of proposal Nebraskans have long opposed, and I will continue to do so should it reach the floor," Smith said.

The proposed surtax is on adjusted gross income, not taxable income - eroding tax deductions for mortgage interest, charitable giving, medical expenses, state and local taxes, and the standard deduction.

Households with incomes of more than $200,000 would pay rates as high as 19.6 percent on capital gains and dividends, instead of the current rate of 15 percent.

The proposed tax increase is an attempt to curb the Alternative Minimum Tax (AMT), which next year will expand to affect 21 million households.

Smith is a cosponsor of legislation (H.R. 1366) which would eliminate the AMT altogether without having to raise taxes.

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