Congressman Pete Olson

Representing the 22nd District of Texas

OLSON VOTES TO STOP OBAMA'S TAX HIKES & DEVELOP TAX REFORMS

August 2, 2012
Press Release

WASHINGTON, DC – Rep. Pete Olson (TX-22) voted this week to protect taxpayers from President Obama’s proposed tax hikes, and develop a plan to simplify our tax code to spur job creation. Last night, Olson voted for H.R. 8, the Job Protection and Recession Prevention Act, a bill to prevent the largest tax hike in history by extending all current tax rates for one year. The bill passed the House by a bipartisan vote of 256 to 171.

Today, Olson voted to develop a framework for comprehensive tax reform for all Americans by supporting H.R. 6169, the Pathway to Job Creation through a Simpler, Fairer Tax Code Act. The bill calls for expedited consideration of a plan to stabilize tax rates and protects taxpayers by reducing complexity, lowering marginal tax rates, broadening the base, and reducing tax burdens imposed on married couples and families. The bill passed the House by a vote of 232 to 189.

Rep. Olson said,"There is bipartisan opposition to the President’s tax hike proposal. Key Democrats and economists agree, it's irresponsible toallow a climate of uncertainty to continue when households and businesses must plan for the future. We have a duty to provide small businesses with the stability they need to expand and create American jobs. Our bipartisan efforts to simplify our tax code will provide relief to families and employers, making it easier for Americans to plan and save."

Statistics on President Obama’s tax hike proposal:

·         The accounting firm Ernst & Young confirmed in a nonpartisan reportthat the President’s tax proposal will shrink the U.S. economy by 1.3%, or $200 billion.

·         The report also confirmed that if the tax hike takes effect, it will cost over 700,000 Americans their jobs and will lead to lower wages.

·         Nearly 57,000 Texans can expect to lose their jobs from this proposed tax hike, which will also shrink Texas’ economic output by 17.5% unless the Senate and President follow the House’s lead in stopping this tax hike.

·         A new Gallup surveyasked Americans to rank their top priorities for the next president – number one was “creating good jobs.” Raising taxes ranked dead last.

H.R. 8 highlights:

·         Provide a one year extension of all current individual tax rates, including the 15 % top rate on capital gains and dividends

·         Extend for one year the estate tax rates at their current levels, the $1,000 child tax credit, marriage penalty relief and certain educational tax credits

H.R. 6169 highlights:

·         Consolidate the 6 current individual income tax brackets into 2 brackets of 10 and 25%

·         Reduce the corporate income tax rate to not more than 25%

·         Repeal the alternative minimum tax (AMT)

·         Broaden the tax base so that tax revenues comprise between 18 and 19% of Gross Domestic Product (GDP)

·         Reform the current system of foreign taxation

###

Media Contact: Melissa Kelly

202-225-5951