One of the best ways we can help improve our economy is by making sure money stays in the pockets of taxpayers.
When consumers have more money, they spend more. When they spend more, manufacturers and service providers are able to expand their operations. When businesses expand operations, they hire more workers. And when more Americans are earning a salary, there are more consumers who will turn around and purchase more products. That’s why keeping taxes low is one of my top priorities in Congress.
Small businesses and working families have tightened their belts enough, given the down national economy. We just can’t afford to hit them with another tax increase.
I also recognize that problems with our tax code are not limited to a high tax rate. Our current tax structure is too complex. Americans and small businesses alike spend too much time and resources trying to figure out what taxes they owe.
The time for tax reform is long overdue. I strongly support a pro-growth comprehensive reform package that puts Americans and small businesses first.
I have long supported an approach that not only makes the tax code and the tax filing process simpler but also keeps more money where it belongs: in your pocket. First, we must ensure the tax code allows businesses to compete on a level playing field so they can better innovate and grow. This means eliminating unnecessary loopholes.
Second, our overall tax structure can be simplified. For example, in April 2013, the House passed a budget that would reduce the number of individual tax brackets from six to two: one would pay 10 percent, the other 25. We must also look at and streamline other areas, including the collection, enforcement and filing process.
Finally, tax reform must lower the overall tax rate for both businesses and individuals. We cannot balance the budget through relentless tax increases – especially increases on small businesses. Job creators must be encouraged to reinvest more money into the economy, putting America back to work and broadening the tax base.
As a small business owner for over 20 years, I understand the importance of supporting our nation’s entrepreneurs and reducing the federal burdens placed on them. By supporting small businesses, we open new markets for American products, decrease prices for consumers, and create better American jobs.
All too often, I hear from small business owners about the federal government’s over-burdensome taxes and the fear they have about the devastating impact irresponsible political rhetoric will have on the way their business operates.
The bottom line is that we must reduce the income tax rates for all Americans. Because so many small business owners pay taxes as individuals, lower individual tax rates will provide tremendous relief to local job creators and help spark economic activity in the District and across the country.