Americans for Tax Reform sent today the following letter to Senator John Cornyn (R-Texas):
On behalf of Americans for Tax Reform, I am pleased to support S. 1738, a bill that would lower taxes, creating economic growth and higher employment.
With the recent failing of the CLASS Act, it has become even clearer that ObamaCare is poorly conceived and hurting the economy. Among the many reasons for the Affordable Care Act’s job-killing effect is the 3.8% surtax on ‘investment income’.
By eliminating this surtax, S.1738 will encourage investors to use their savings to grow the U.S. economy by investing in businesses. During this downturn, it is especially important that the U.S. economy attract new investments to create new businesses and to sustain competitive ones. This is the only way to get our economy growing once again, and to create jobs for the millions who are unemployed. We cannot do this with the high rates of taxation ObamaCare creates.
The independent Institute for Research on the Economics of Taxation has shown that the 3.8% surtax would lower economic growth by over 1.3%, and decrease investments by over 3.4%. With high unemployment and unstable financial markets, we cannot afford these losses. For this reason, we need to lower, not raise, taxes on investments.
I urge all senators to co-sponsor S. 1738.