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# *RSC Policy Brief:*

# Conservatives Demand Lower Taxes

*June 2008*

Conservatives fundamentally believe that the federal government should
do fewer things with fewer taxpayer resources, so that American citizens
and businesses can do more things with more of their own resources. Tax
relief is about returning power to the private person and the private
enterprise, by requiring that they send less money to Washington. Below
is a menu of bills introduced by RSC Members in the 110^th^ Congress
that would lessen the tax burden for individuals and businesses, thereby
reducing the reach of the federal government and increasing freedom for
all Americans.

**Rep. Paul Ryan (R-WI), RSC Chairman Jeb Hensarling (R-TX), Rep. John
Campbell (R-CA), and Michele Bachmann (R-MN)** introduced the [Taxpayer
Choice Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.03818:/)
(H.R. 3818) to repeal the Alternative Minimum Tax (AMT) on individual
taxpayers after 2006, allow taxpayers to choose an alternative income
tax system with two low rates and no special deductions, and make
permanent the capital gains and dividends rate reductions of 2003.

**Rep. Scott Garrett (R-NJ)**, **RSC Chairman Jeb Hensarling (R-TX),
Rep. John Campbell (R-CA), and Rep. Jim Jordan (R-OH)** introduced the
[Economic Growth
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.05109:/) (H.R.
5109) to allow all businesses to immediately expense---or fully deduct
on their tax returns---the costs of assets (including buildings) they
purchase for their business in the year that they buy such assets
("Section 179" expensing), reduce the top corporate *income* tax rate
from 35% to 25%, index for inflation the cost basis used when
calculating the capital gains tax on assets acquired before the end of
2008, and reduce the top corporate *capital gains* tax rate from 35% to
15%.

**Rep. Tim Walberg (R-MI)** introduced the [Tax Increase Prevention
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.02734:/) (H.R.
2734) to prevent any scheduled tax increases by making permanent the
marginal rate reductions of 2001, the capital gains and dividends tax
relief of 2003, the tax deduction for state and local sales taxes, the
tax deduction for tuition and related expenses, the increased ("Section
179") expensing allowance for business assets, and the research and
development tax credit.

**\-\-\-\-\-\--**

**Rep. Michael Burgess (R-TX)** introduced the [Freedom Flat Tax
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.01040:/) (H.R.
1040) to allow an individual or a person engaged in business activity to
choose to be subject to a flat tax (in lieu of the existing tax
provisions) of 19% for the first two years after a choice is made, and
17% thereafter.

**Rep. John Campbell (R-CA)** introduced the [Internet Consumer
Protection
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.01077:/)
(H.R.1077) to make permanent the ban on state and local taxation of
Internet access and on multiple or discriminatory taxes on electronic
commerce.

**Rep. Eric Cantor (R-VA)** introduced a bill ([H.R.
2312](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.02312:/)) to make
permanent the individual income tax rates for capital gains and
dividends.

**Rep. Eric Cantor (R-VA)** introduced the [Middle Class Jobs Protection
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.04995:/) (H.R.
4995) to reduce the maximum corporate income tax rate to 25%, increase
the ("Section 179") expensing allowance for depreciable business assets
to \$250,000 in 2008 and 2009, increase to 50% the current year bonus
depreciation allowance for certain property placed in service in 2008
and 2009, and allow additional carrybacks for certain net operating
losses and for excess business and foreign tax credit amounts arising in
2008 and 2009.

**Rep. Eric Cantor (R-VA)** introduced the [Grow American Investment Now
Jobs Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.05169:/)
(H.R. 5169) to reduce the maximum income tax rate on corporations,
including personal service corporations, from 35% to 25%.

**Rep. Mario Diaz-Balart (R-FL)** introduced a bill ([H.R.
411](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.00411:/)) to make
permanent the tax deductions for state and local sales taxes, for
certain expenses of elementary and secondary school teachers, and for
tuition and related expenses, and make permanent the Bush Tax Cut's
child tax credit expansion, marriage penalty relief, repeal of the
estate tax, and tax deduction for higher education expenses.

**Rep. Mary Fallin (R-OK)** introduced a bill ([H.R.
4845](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.04845:/)) to
exclude overtime pay from gross income.

**RC Luis Fortuño (R-PR)** introduced a bill ([H.R.
763](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.00763:/)) to make
permanent the tax deduction for income attributable to domestic
production activities in Puerto Rico.**\
**

**Rep. Trent Franks (R-AZ)** introduced the [Seniors Financial Security
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.02507:/) (H.R.
2507) to repeal the inclusion in gross income of Social Security and
tier 1 railroad retirement benefits.

**Rep. Scott Garrett (R-NJ)** introduced the [AMT Middle Class Fairness
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.01942:/) (H.R.
1942) to allow a deduction from the Alternative Minimum Tax (AMT) for
state and local taxes and index the AMT exemption amounts for inflation
after 2006.

**Rep. Wally Herger (R-CA)** introduced the [Small Business Expensing
Expansion and Permanency
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.01797:/) (H.R.
1797) to increase and make permanent the expensing allowance for
("Section 179") small business assets to \$200,000, increase the
threshold for the phase-out of such allowance to \$800,000, and provide
for inflation adjustments to the expensing and threshold amounts.

**Rep. Wally Herger (R-CA)** introduced a bill ([H.R.
5294](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.05294:/)) to
reduce the 6.2% federal unemployment tax rate for calendar year 2008 by
0.2 percentage-points.

**Rep. Wally Herger (R-CA)** introduced a bill ([H.R.
5908](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.05908:/)) to
repeal the capital gains rate for individuals and corporations.

**Rep. Duncan Hunter (R-CA)** introduced the [Restore U.S. Manufacturing
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.03900:/) (H.R.
3900) to allow a 100% tax deduction for qualified manufacturing
activities income.

**Rep. Sam Johnson (R-TX)** introduced the [Social Security Benefits Tax
Relief Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.02158:/)
(H.R. 2158) to repeal the 1993 income tax increase on Social Security
benefits.

**Rep. Mike Pence (R-IN)** introduced the [Capital Gains Inflation
Relief Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.01261:/)
(H.R. 1261) to index for inflation the cost basis taxpayers use in
calculating their capital gains tax liabilities.

**Rep. Tom Reynolds (R-NY)** introduced the [Stealth Tax Relief
Extension Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.01112:/)
(H.R. 1112) to increase the exemption from the Alternative Minimum Tax
for individual taxpayers in 2007 (commonly known as the "AMT patch"). He
increased the same bill for 2008 ([H.R.
5031](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.05031:/)).

**Rep. Ed Royce (R-CA)** introduced the [AMT Rate Reduction
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.02253:/) (H.R.
2253) to reduce to 24% the rate of the Alternative Minimum Tax (AMT) for
individual taxpayers.

**Rep. Paul Ryan (R-WI)** introduced the [Generate Retirement Ownership
Through Long-Term Holding
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.02796:/) (H.R.
2796) to provide that no gain shall be recognized on the receipt of a
capital gain dividend distributed by a regulated investment company, if
such dividend is automatically reinvested in additional shares of the
company pursuant to a dividend reinvestment plan.

**Rep. Paul Ryan (R-WI)** introduced the Roadmap for America's Future
Act ([H.R.
6110](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.06110:/)) to,
among other things, repeal the individual Alternative Minimum Tax (AMT);
repeal the estate and gift taxes; replace the corporate income tax with
a business consumption tax; make capital gains, dividends, and interest
tax-free; and allow taxpayers to choose an alternative income tax system
with two low rates and no special deductions.

**Rep. Pete Sessions (R-TX)** introduced the [EXPENSE
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.01250:/) (H.R.
1250) to repeal the limitations on the expensing of depreciable
("Section 179") business assets and allow taxpayers to elect a two-year
recovery period for depreciable property.

**Rep. Cliff Stearns (R-FL)** introduced the [Simple Savings Tax Relief
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.00228:/) (H.R.
228) to exclude from gross income up to \$800 of interest income
annually.

**Rep. Mac Thornberry (R-TX)** introduced the [Death Tax Repeal
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.01586:/) (H.R.
1586) to repeal the federal estate, gift, and generation-skipping
transfer taxes.

**Rep. Dave Weldon (R-FL)** introduced the [Child Tax Credit
Preservation
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.03135:/) (H.R.
3135) to make permanent and index for inflation the increases in the
child tax credit enacted by the Economic Growth and Tax Relief
Reconciliation Act of 2001, the Jobs and Growth Tax Relief
Reconciliation Act of 2003, and the Working Families Tax Relief Act of
2004.

**Rep. Joe Wilson (R-SC)** introduced the [Bonus Depreciation Extension
Act](http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.00827:/) (H.R.
827) to extend, for two additional years, the bonus depreciation for
certain investment property acquired after September 10, 2001 (30%);
certain investment property acquired after May 5, 2003 (50%); and New
York Liberty Zone property.

**RSC Staff Contact: Paul Teller, <paul.teller@mail.house.gov>, (202)
226-9718**