As an alternative to drinking yourself into a stupor and sobbing dejectedly as the D.C. Democrats embark on a major spendfest, how about this:
The Republican Study Committee has introduced the Economic Recovery and Middle-Class Relief Act of 2009 as an alternative to the Democrats’ big-spending stimulus plan. Click through for either the full text or highlights as well as letters of support from Americans for Tax Reform and the National Taxpayers Union. It includes:
- A 5% across the board income tax cut (all six federal rates would be cut)
- An increase in the child tax credit from $1,000 to $5,000
- Permanently lowering capital gains tax to 15% (the rate cuts from 2003 expire in 2010)
- Repeal of the Alternate Minimium Tax on individuals
- Permanently repeal required distributions on retirement accounts (suspended for 2009, but goes back into effect in 2010)
- Making all withdrawals from IRAs tax and penalty free in 2009
- Increasing by 50% the tax deduction on student loans and qualified higher education costs
- Full, immediate expensing for businesses all costs of assets (uncaps and accelerates exepensing which will encourage capital spending)
- Reduction of the corporate tax rate from 35% to 25% (for all you contintental types, that would align our rate with the average rate in the EU)
- End capital gains tax on inflation and simplify the capital gains rate structure
- Make the R&D tax credit permanent (originally enacted as part of Reagan’s Economic Recovery Tax Act of 1981)
- Extend the carryback period for net operating losses to seven years
This bill contains NO NEW SPENDING, unlike the “stimulus” bill the Dems are pushing which will put us at an unprecedented peacetime deficit (about 8.3% of the GDP). The bill also contains a one percent reduction to Fiscal Year 2009 discretionary spending, excepting Defense and Military Construction, which is a step toward further spending restraint.
All fiscal conservatives should contact their congressman and support this bill. It is a no-brainer.