House Votes on Walberg's Tax Increase Prevention Act

Press Release

U.S. Congressman Tim Walberg (R-MI) today issued the following statement after the House voted on his bill, the Tax Increase Prevention Act (H.R. 2734). Walberg's legislation would stop tax increases on raising children, earning money, saving and investing, operating a small business, adopting a child, paying off college loans and even dying.

"There is little debate right now on Capitol Hill about whether the American economy is struggling. The real conversation in living rooms across the country is about how to get our economy moving again. Essentially this debate boils down to one question: Should America promote economic growth and job creation or raise taxes to destroy jobs and economic opportunity?

"With so much money already being wasted in Washington, I believe it is wrong for Congress to try and take more money out of the paychecks of hard-working Americans. I have always held the conviction that American citizens should keep as much of their hard-earned money as possible. With Americans facing rising health care costs, high energy prices and economic instability, the absolute last thing families need is to be hit with a massive, job-killing tax increase.

"Today, all House members had to decide which side of this debate they are on. By forcing a vote on my bill, The Tax Increase Prevention Act, representatives had to choose whether or not they support Speaker Pelosi's budget proposal that, in total, is the single largest tax increase ever proposed in the history of the United States, a $3,000 per taxpayer tax increase.

"This vote is just the beginning in a long battle over America's economic future. The way to create jobs, spur economic growth and encourage new investment and job growth is to make tax relief permanent. I will continue pushing Congress to pass my bill and stop a $683 billion, job-destroying tax increase."

BACKGROUND:

Unless Congress passes H.R. 2734, Congressman Walberg's Tax Increase Prevention Act, the following tax increases will occur in 2011:

- Marginal income tax rates will increase as follows:
--35% bracket will increase by 13 percent
--33% bracket will increase by 9 percent
--28% bracket will increase by 11 percent
--25% bracket will increase by 10 percent
--10% bracket will increase by 50 percent

- Capital gains rates for individuals will increase from 15% and 0% to 20% and 10%.

- Restoration of the marriage penalty tax.

- The child tax credit will be slashed 50 percent, raising taxes by $500 per child.

- The death tax will go from 0% to 55%.
Source: Joint Committee on Taxation and Americans for Tax Reform

More Information: http://www.house.gov/jct/x-1-08.pdf

Source