Tax Pledge Alert: ATR Will Keyvote Against Cloture on Reid Amendment to H.R. 1586
Cloture Vote Violates Taxpayer Protection Pledge
Americans for Tax Reform will rate a vote AGAINST a cloture motion on Senator Reid’s amendment to H.R. 1586. His amendment 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 33 senators have made to their constituents and the American people.
The Reid amendment violates the Taxpayer Protection Pledge. ATR will be key-voting against cloture.
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.