Lynn Jenkins on Tax Reform

Strong believer in the economic power of lower taxes

Our economy will flourish when taxes are low. In Congress, I will vote to make the 2001 and 2003 tax cuts permanent, including elimination of the Marriage Penalty Tax.

Repeal the Death Tax.

A BILL to repeal the Federal estate and gift taxes:
• Subtitle B of the Internal Revenue Code of 1986 (relating to estate, gift, and generation-skipping taxes) is hereby repealed.
• The repeal shall apply to estates of decedents dying, gifts made, and generation-skipping transfers made after the date of the enactment of this Act.

Replace income tax & employment tax with FairTax.

• Repeals the income tax, employment tax, and estate and gift tax.
• Imposes a national sales tax on the use or consumption in the United States of taxable property or services.
• Sets the sales tax rate at 23% in 2011, with adjustments to the rate in subsequent years.
• Allows exemptions from the tax for property or services purchased for business, export, or investment purposes, and for state government functions.
• Prohibits the funding of the Internal Revenue Service (IRS) after FY2013.
• Establishes in the Department of the Treasury: (1) an Excise Tax Bureau to administer excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and (2) a Sales Tax Bureau to administer the national sales tax.
• Terminates the sales tax imposed by this Act if the Sixteenth Amendment to the U.S. Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this Act.

Taxpayer Protection Pledge: no new taxes.

Politicians often run for office saying they won't raise taxes, but then quickly turn their backs on the taxpayer. The idea of the Pledge is simple enough: Make them put their no-new-taxes rhetoric in writing.

In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. While ATR has the role of promoting and monitoring the Pledge, the Taxpayer Protection Pledge is actually made to a candidate's constituents, who are entitled to know where candidates stand before sending them to the capitol. Since the Pledge is a prerequisite for many voters, it is considered binding as long as an individual holds the office for which he or she signed the Pledge.

Since its rollout with the endorsement of President Reagan in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts.

No European-style VAT (value-added tax).

RESOLUTION Opposing the imposition of a value-added tax:
• Whereas a value-added tax (VAT) is a type of sales tax that is assessed on goods at every stage of production;
• Whereas a VAT is a hidden tax that is ultimately passed along to consumers, but is embedded into the price of goods and services and therefore not transparent to the consumer;
• Whereas the average tax burden levied by the Federal Government since 1980 has been 18% of GDP;
• Whereas, within the next 15 years, Federal taxes are projected to rise to the highest level in US history;
• Whereas adding a VAT on top of the existing Federal income tax would increase the burden on United States taxpayers to unprecedented levels;
• Whereas the average VAT rate in Europe has risen from 5% when the tax was first introduced in the 1960s to 20% today;
• Whereas European countries that have imposed a VAT have seen their total tax burden rise to an average of over 40% of GDP;
• Whereas such high levels of taxation and spending crowd out private investment, which stifles economic growth and leads to chronically high levels of unemployment;
• Whereas the IRS has calculated that US taxpayers spend approximately $200 billion and 7.6 billion hours a year to comply with Federal tax laws;
• Whereas a VAT would only add another layer of complexity and compliance costs to a fundamentally unsound tax system;
• Whereas the burden of a VAT would fall most heavily on low-income and middle-class Americans; and
• Whereas a VAT would do nothing to restore fiscal accountability in Washington, but would simply bankroll wasteful and inefficient Federal Government spending:
• Now, therefore, be it Resolved, That--
• It is the sense of the House of Representatives that imposing a value-added tax would be a massive tax increase that would cripple families on fixed income and only further push back the US economic recovery; and
• the House of Representatives opposes a value-added tax.

Member of House Ways and Means Committee.

The Committee of Ways and Means is the chief tax-writing committee of the United States House of Representatives. Members of the Ways and Means Committee cannot serve on any other House Committees, though they can apply for a waiver from their party's congressional leadership. The Committee has jurisdiction over all taxation, tariffs and other revenue-raising measures, as well as a number of other programs including:

• Social Security
• Unemployment benefits
• Medicare
• Enforcement of child support laws
• Temporary Assistance for Needy Families, a federal welfare program
• Foster care and adoption programs