ATR President Grover Norquist sent the following letter today to Senate Republican Leader Mitch McConnell (R-Ky.):
On behalf of Americans for Tax Reform, I wish to support S. 3773, the “Tax Hike Prevention Act of 2010.” I would urge all senators who wish to avoid a job-killing, massive tax hike in January to co-sponsor this bill.
S. 3773 prevents nearly $4 trillion in tax hikes over the next decade. Specifically, it would:
- Keep income tax rates right where they are. That means that the lowest rate would remain at 10 percent, rather than rising to 15 percent. It also means that the top rate (at which a majority of small business profits pay tax) would stay at 35 percent, rather than rising to 39.6 percent
- Keep the capital gains and dividends tax rate at 15 percent. Under the Obama-Reid-Pelosi tax hike, the capital gains tax rate is set to rise to 20 percent in 2011. The dividends top rate is set to rise to an astounding 39.6 percent in 2011
- Keep the death tax from rising to a 55 percent top rate with a small $1 million exemption. Instead, the death tax would be 35 percent with a generous $5 million exemption to protect most small businesses and family farms
- Prevent tax hikes on families, including a return of the marriage penalty and cutting the child tax credit in half
- Index the alternative minimum tax (AMT) to inflation. Under S. 3773, the number of AMT taxpayers should remain constant, rather than the sharp rise in AMT families that the Obama-Reid-Pelosi tax hike would result in.
S. 3773, the “Tax Hike Prevention Act of 2010” is a common-sense bill. It simply keeps in place the tax structure America has lived under for the past decade. It avoids a huge tax hike in the midst of a weak economy that will kill jobs. It’s supported by the American people, and should be voted on by the Senate before the election.