Tax Pledge Alert: ATR Will Keyvote Against H.R. 1586 (State Bailout Bill)
Vote in Support Violates Taxpayer Protection Pledge
Americans for Tax Reform will rate a vote AGAINST H.R. 1586 today in the House. This bill increases spending on government school funding and Medicaid. It “pays for” this new spending (in part) with $9.8 billion in income tax increases. Because this bill is a NET INCOME TAX HIKE, it violates the Taxpayer Protection Pledge that 174 Congressmen have made to their constituents and the American people.
H.R. 1586 violates the Taxpayer Protection Pledge. ATR will be key-voting against it.
The tax increases in question are all tax hikes on U.S. employers doing business overseas. By raising these taxes, it will be more likely that jobs and entire companies will be shipped overseas. The U.S. has the highest corporate income tax rate in the developed world, and double-taxes international income on top of this. Tax relief in the law is intended to combat the worst effects of this double-taxation. Removing the tax relief and raising taxes will only serve to push jobs and businesses out of the country. The proper way to handle these tax provisions is in the context of international tax reform which is—at worst—tax revenue-neutral and involves a lower corporate tax rate. Raising taxes to pay for a state budget bailout is bad economics and bad tax policy.