As Congress and the incoming Obama administration work to tackle the struggling economy, most of the ideas being offered have multi-billion dollar price tags. But many in Congress, including Congresswoman Kay Granger (TX-12), believe we can better serve the economy by letting taxpayers keep more of the money they earn, rather than simply expecting them to pay for more government spending.

In response, Granger signed on to Congressman Louie Gohmert’s (TX-01) tax holiday bill, H.R. 143, to relieve Americans from paying their federal taxes for a period of two months. The bill would provide an alternative to more bailouts and would reduce 2009 income taxes by almost 17 percent.

“I think this is a practical solution,” Granger said. “Not every option has to include spending billions of dollars.  I think most Americans would be surprised at the amount they could save if they didn’t have to pay federal taxes for two months.”

Gohmert first introduced his tax holiday legislation last year, but with the Presidential election and shortened Congressional schedule, his bill was never voted on.  His new legislation, introduced last week, would eliminate the Treasury Secretary’s authority to use the remaining $350 billion in bailout funding, ensuring those funds can’t be used for that purpose.  Instead, his bill would grant a two-month tax freeze on all federal income taxes based on wages earned and FICA withholding that normally would come out of Americans’ paychecks.

“From the overwhelming number of voices across the nation that have expressed their support for this tax holiday, it is clear that this fight is far from over,” said Gohmert. “My bill would provide relief to taxpayers and do a better job of stimulating our economy by letting the people who know the market best decide which companies or industries are most deserving of their hard-earned dollars.”

Rep. Gohmert’s website and American Solutions, a think tank founded by former Speaker of the House Newt Gingrich, report that Americans pay $101.6 billion per month in personal income tax and $65.6 billion per month in FICA tax. If Gohmert’s bill became law, the two-month tax holiday would still cost less than the remaining $350 billion in bailout funds sought by the Treasury.

“I applaud Congressman Gohmert for his ingenuity,” Granger said. “Now is the perfect time to put all ideas on the table for consideration, and taxpayers can spend – or save -- $350 billion of their own money better than the government can.”