Congressman Mica, why have you cosponsored HR 25, the Fair Tax Plan?
I believe our current system of taxation has grown into a confusing, unfair and burdensome system. That does not even take into consideration the mounting cost to run a huge IRS bureaucracy or the cost of an army of CPAs and accountants to prepare the mountains of forms required by current tax law. I agree with you that there must be a better way.
The time for Congress to act on the important issue of tax reform is sooner rather than later. That is why I decided to lend my support and cosponsorship to HR 25, the Fair Tax proposal by Rep. John Linder.
As the Congress begins our 2nd session of the 110th Congress, we must ensure that a full and open debate relating to tax reform takes place. Although I am not a member of House Committee on Ways and Means which is currently considering several tax reform proposals, I have decided to support the Fair Tax because I believe it will help the process move forward.
While I do have concerns relating to the impact on home mortgage interest and charitable deductions, I believe we can develop a smooth transition to a new tax system. I am confident that once implemented the Fair Tax plan will be simpler for taxpayers and easier to understand, and eliminating the IRS will greatly reduce paperwork, bureaucracy and the drain on our economy.
For additional information or to read the Fair Tax plan, you should this link - HR 25
Congressman Mica, do you support cutting personal income taxes?
Since coming to Congress I have been a strong supporter of reducing the annual tax burden on America's families. Allowing individuals to keep more of their hard earned money promotes economic growth and is better invested in the economy than in Washington. I have supported many proposals to cut taxes on capital gains, dividends, personal income, corporations, family estates as well supported the child tax credit and marriage penalty elimination.
Congressman Mica, do you support tax reform?
I have long believed that our tax code is putnitive, inefficient and in need of reform. Congress will soon begin debate and consideration of several tax reform proposals including the flat tax and national sales tax. I agree that each of these proposals have several good aspects and will continue examining the plans.
The President's Commission on Tax Reform has also released its recommendations to overhaul our current system. I have many concerns with their proposals and do not support ending the home mortgage deducation as a means to simplifying our current tax code. Our system has significant flaws that restrict growth and it is critical that we work to enact comprehensive tax reform legislation.
Congressman Mica, why did you support the tax cuts of 2001 and 2003?
I voted for the tax cuts of 2001 and 2003 because of our need to stimulate the economy and business activity by sending less tax dollars to Washington and allowing for more consumer expenditures, investments and savings. The final measures that were passed by Congress represents a good balance between stimulating the economy and protecting against even greater national deficit. As we have seen, in 2005 federal revenues were
The economy cannot rebound unless more Americans are working, money is available for investments, and assistance is given to businesses to encourage investment. Tax reductions in this measure have created additional disposable income, increasing both consumer activity and business development. In addition, federal revenues have continued to exceed expectations and in 2005 the government received over $100 billion in unanticipated funds that cut our federal deficit by 25%.
Specifically, the Jobs and Growth Tax Act has helped stimulate the economy by:
* Reducing the highest taxes on corporate dividends and capital gains to 15 percent - 5 percent for the two lowest brackets - from 38.6 percent on dividends and 20 percent on capital gains, affecting the 50 percent of Americans who own stock;
* Accelerating the 2001 income tax rate cuts, a provision which amounted to nearly half of the tax cut and which means a larger percentage of take-home pay for many hard-working Americans after July; and
* Increasing the small-business deduction limit for equipment purchases from $25,000 to $100,000, allowing many owners to increase the size of their businesses and hire more workers.
Our economy is showing signs of revitalization and new jobs are being created every day, spurred in part by the lower tax burdens on small business owners. However, this legislation was only one step in restoring our nation’s economic strength. I remain firmly committed to reducing the burdens of excessive government regulation and litigation that is also strangling our economy. In order to continue this massive economic growth I will continue working to make the tax cuts permanent to avoid harming our economy in the future.
