The Economic Freedom Act

[Zander]

One of the toughest challenges we face in the economy is job creation. Government either has policies that foster the creation of jobs or policies that hinder it. Obama's Big Gigantic Government has spent Trillions upon Trillions bailing out Union members, Bankers, and Big Business. Yet, by practically any measure, the "stimulus" has failed and the economy is still losing jobs. Over 16% underemployed is not a pretty picture.

It is time to change course and take actions that have been proven to work. Representative Jim Jordan (R-OH) has sponsored a new bill "the Economic Freedom Act" (H.R. 5029), that I believe is a step in the right direction. Here are the details:

Economic Freedom Act - Congressman Jim Jordan

The Economic Freedom Act will help create jobs by:

* Reducing The Payroll Tax by Half for 2010. Provides immediate relief by increasing workers' paychecks and improving the bottom line for employers.

* Eliminating The Capital Gains Tax. Encourages the risk-taking and investment that is at the heart of the entrepreneurial spirit.

* Reducing the Corporate Tax Rate to 12.5%. Improves America's competitiveness in the global market and provides incentives for expansion and job creation.

* Permanently Eliminating the Death Tax. Ensures that small businesses and family farms, the engines of our economy, will continue creating jobs for future generations.

* Providing Immediate Business Expensing. Encourages long-term reinvestment in business, increasing competitiveness and creating jobs.

The bill would also save money by terminating TARP and repealing the remaining stimulus. I sent my Congressman an e-mail today urging him to support this bill.

 

[topspin]

that will be hugely popular among independents and republicans.

Obama better hope his last third of the stimulus kicks the ecomony in gear or the next republican President will be rolling this out.

 

[Immanuel]

Looks to me like all that it does is to cut taxes. It does not seem to address the real problem and that is spending. Also, to rely on those cuts to reduce unemployment is pie in the sky... hopey-changey kind of thinking.

At first glance, I don't hold out much hope for this.

Immie

 

[topspin]

I think you'd have instant above average growth. The payroll tax is how they should have done the stimulus. IE give it to mainstreet not wallstreet. The fact that some guy got to keep his house in the hamptons doesn't do a lot for the economy.

 

[Toro]

This looks like something that will permanently increase the deficit.

On the spending side, he is saying we should end temporary spending programs. Well, most of the TARP money - which was used almost exclusively to backstop the financial system - has been used and is now being returned, so there isn't any "spending" to be saved there.

The stimulus has earmarked $500 billion in spending. Thus far, a little over half has been spent. The rest are tax cuts. Am I to assume that the bill would end the stimulus tax cuts as well? There are still $120 billion in budget-busting tax cuts to come. Or are all tax cuts good, no matter what the affect on the deficit? I'm assuming, given the tenor of his bill, that he still wants the tax cuts part of the stimulus, thus total savings from his spending cuts is $130 billion. And that is a one-time savings. His tax cuts are ongoing.

Recovery.gov

Capital gains taxes in a typical year are almost that alone. Everything added together will merely add to the deficit.

 

[Oddball]

What tax cuts?

Screwing around with withholding tables doesn't cut anyone's tax rates.

 

[editec]

One of the toughest challenges we face in the economy is job creation. Government either has policies that foster the creation of jobs or policies that hinder it. Obama's Big Gigantic Government has spent Trillions upon Trillions bailing out Union members, Bankers, and Big Business.

?

Yet, by practically any measure, the "stimulus" has failed and the economy is still losing jobs. Over 16% underemployed is not a pretty picture.

It is time to change course and take actions that have been proven to work. Representative Jim Jordan (R-OH) has sponsored a new bill "the Economic Freedom Act" (H.R. 5029), that I believe is a step in the right direction. Here are the details:

Economic Freedom Act - Congressman Jim Jordan

The Economic Freedom Act will help create jobs by:

* Reducing The Payroll Tax by Half for 2010. Provides immediate relief by increasing workers' paychecks and improving the bottom line for employers.

* Eliminating The Capital Gains Tax. Encourages the risk-taking and investment that is at the heart of the entrepreneurial spirit.

* Reducing the Corporate Tax Rate to 12.5%. Improves America's competitiveness in the global market and provides incentives for expansion and job creation.

* Permanently Eliminating the Death Tax. Ensures that small businesses and family farms, the engines of our economy, will continue creating jobs for future generations.

* Providing Immediate Business Expensing. Encourages long-term reinvestment in business, increasing competitiveness and creating jobs.

The bill would also save money by terminating TARP and repealing the remaining stimulus. I sent my Congressman an e-mail today urging him to support this bill.

Here's the bill in discussion.

It's a grand idea if you happen to be very wealthy

<H3>SECTION 1. SHORT TITLE.

• This Act may be cited as the `Economic Freedom Act of 2010'.

SEC. 2. ZERO PERCENT CAPITAL GAINS RATE FOR INDIVIDUALS AND CORPORATIONS.

• (a) Zero Percent Capital Gains Rate for Individuals-

• • (1) IN GENERAL- Paragraph (1) of section 1(h) of the Internal Revenue Code of 1986 is amended by striking subparagraph (C), by redesignating subparagraphs (D) and (E) and subparagraphs (C) and (D), respectively, and by amending subparagraph (B) to read as follows:

• • • `(B) 0 percent of the adjusted net capital gain (or, if less, taxable income);'.

• • (2) ALTERNATIVE MINIMUM TAX- Paragraph (3) of section 55(b) is amended by striking subparagraph (C), by redesignating subparagraph (D) as subparagraph (C), and by amending subparagraph (B) to read as follows:

• • • `(B) 0 percent of the adjusted net capital gain (or, if less, taxable excess), plus'.

• • (3) REPEAL OF SUNSET OF REDUCTION IN CAPITAL GAINS RATES FOR INDIVIDUALS- Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 shall not apply to section 301 of such Act.

• (b) Zero Percent Capital Gains Rate for Corporations-

• • (1) IN GENERAL- Section 1201 of the Internal Revenue Code of 1986 is amended by redesignating subsection (b) as subsection (c), and by striking subsection (a) and inserting the following new subsections:

• `(a) General Rule- If for any taxable year a corporation has a net capital gain, then, in lieu of the tax imposed by sections 11, 511, 821(a) or (c), and 831(a), there is hereby imposed a tax (if such tax is less than the tax imposed by such sections) which shall consist of the sum of--

• • `(1) a tax computed on the taxable income reduced by the amount of the net capital gain, at the rates and in the manner as if this subsection had not been enacted,

• • `(2) 0 percent of the adjusted net capital gain (or, if less, taxable income),

• • `(3) 25 percent of the excess (if any) of--

• • • `(A) the unrecaptured section 1250 gain (or, if less, the net capital gain (determined without regard to subsection (b)(2)), over

• • • `(B) the excess (if any) of--

• • • • `(i) the sum of the amount on which tax is determined under paragraph (1) plus the net capital gain, over

• • • • `(ii) taxable income, plus

• • `(4) 28 percent of the amount of taxable income in excess of the sum of the amounts on which tax is determined under the preceding paragraphs of this subsection.

• `(b) Definitions and Special Rules- For purposes of this section--

• • `(1) IN GENERAL- The terms `adjusted net capital gain' and `unrecaptured section 1250 gain' shall have the respective meanings given such terms in section 1(h).

• • `(2) DIVIDENDS TAXED AT NET CAPITAL GAIN- Except as otherwise provided in this section, the term `net capital gain' has the meaning given such term in section 1(h)(11).'.

• • (2) ALTERNATIVE MINIMUM TAX- Section 55(b) of such Code is amended by adding at the end the following new paragraph:

• • `(4) MAXIMUM RATE OF TAX ON NET CAPITAL GAIN OF CORPORATIONS- The amount determined under paragraph (1)(B)(i) shall not exceed the sum of--

• • • `(A) the amount determined under such paragraph computed at the rates and in the same manner as if this paragraph had not been enacted on the taxable excess reduced by the net capital gain, plus

• • • `(B) the amount determined under section 1201.'.

• • (3) TECHNICAL AMENDMENTS-

• • • (A) Section 1202(a) of such Code is amended by striking `50 percent' and inserting `100 percent'.

• • • (B) Section 1445(e)(1) of such Code is amended by striking `35 percent (or, to the extent provided in regulations, 15 percent)' and inserting `0 percent'.

• • • (C) Section 1445(e)(2) of such Code is amended by striking `35 percent' and inserting `0 percent'.

• • • (D) Section 7518(g)(6)(A) of such Code is amended by striking `15 percent (34 percent in the case of a corporation)' and inserting `0 percent'.

• • • (E) Section 607(h)(6)(A) of the Merchant Marine Act, 1936 is amended by striking `15 percent (34 percent in the case of a corporation)' and inserting `0 percent'.

• (c) Effective Date-

• • (1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2009.

• • (2) WITHHOLDING- The amendments made by subparagraphs (A) and (B) of subsection (b)(3) shall take apply to dispositions and distributions after the date of the enactment of this Act.

SEC. 3. REDUCTION IN CORPORATE INCOME TAX RATES.

• (a) In General- Subsection (b) of section 11 of the Internal Revenue Code of 1986 is amended to read as follows:

• `(b) Amount of Tax- The amount of the tax imposed by subsection (a) shall be 12.5 percent of taxable income.'.

• (b) Conforming Amendments-

• • (1) Section 55(b)(1)(B)(i) of such Code is amended by striking `20 percent' and inserting `12.5 percent'.

• • (2) Section 280C(c)(3)(B)(ii)(II) of such Code is amended by striking `maximum rate of tax under section 11(b)(1)' and inserting `rate of tax under section 11(b)'.

• • (3) Section 832(b)(1) of such Code is amended by striking `rates provided in section 11(b)' and inserting `rate provided in section 11(b)'.

• • (4) Sections 244(a)(2)(B), 247(a)(2)(B), 527(b)(1), 835(e), 852(b)(1), 857(b)(4)(A), 860G(c)(1), 904(b)(3)(E)(ii)(II), and 1375(a) of such Code is amended by striking `highest rate of tax' and inserting `rate of tax'.

• • (5) Sections 860E(e)(2)(B), 860E(e)(6)(A)(ii), 860K(d)(2)(A)(ii), 860K(e)(1)(B)(ii), 1446(b)(2)(B), and 7874(e)(1)(B) of such Code are each amended by striking `highest rate of tax specified in section 11(b)(1)' and inserting `rate of tax specified in section 11(b)'.

• • (6) Section 904(b)(3)(D)(ii) of such Code is amended by striking `(determined without regard to the last sentence of section 11(b)(1))'.

• • (7) Section 962 of such Code is amended by striking subsection (c) and by redesignating subsection (d) as subsection (c).

• • (8) Section 1201(a) of such Code is amended--

• • • (A) by striking `35 percent (determined without regard to the last 2 sentences of section 11(b)(1))' and inserting `15 percent', and

• • • (B) by striking `35 percent' in paragraph (2) and inserting `15 percent'.

• • (9) Section 1561(a) of such Code is amended--

• • • (A) by striking paragraph (1) and by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively,

• • • (B) by striking `The amounts specified in paragraph (1), the' and inserting `The',

• • • (C) by striking `paragraph (2)' and inserting `paragraph (1)',

• • • (D) by striking `paragraph (3)' both places it appears and inserting `paragraph (2)',

• • • (E) by striking `paragraph (4)' and inserting `paragraph (3)', and

• • • (F) by striking the fourth sentence.

• • (10) Subsection (b) of section 1561 of such Code is amended to read as follows:

• `(b) Certain Short Taxable Years- If a corporation has a short taxable year which does not include a December 31 and is a component member of a controlled group of corporations with respect to such taxable year, then for purposes of this subtitle, the amount to be used in computing the accumulated earnings credit under section 535(c)(2) and (3) of such corporation for such taxable year shall be the amount specified in subsection (a)(1) divided by the number of corporations which are component members of such group on the last day of such taxable year. For purposes of the preceding sentence, section 1563(b) shall be applied as if such last day were substituted for December 31.'.

• (c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2009.

SEC. 4. ESTATE TAX REPEAL MADE PERMANENT.

• Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to title V of such Act.

SEC. 5. ELECTION TO EXPENSE BUSINESS ASSETS.

• (a) In General- Section 179 of the Internal Revenue Code of 1986 is amended to read as follows:

`SEC. 179. ELECTION TO EXPENSE CERTAIN DEPRECIABLE BUSINESS ASSETS.

• `(a) Treatment as Expenses- A taxpayer may elect to treat the cost of any property to which this section applies as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which such property is placed in service.

• `(b) Property to Which Section Applies-

• • `(1) IN GENERAL- This section shall apply to property--

• • • `(A) which is--

• • • • `(i) tangible property (to which section 168 applies), or

• • • • `(ii) computer software (as defined in section 197(e)(3)(B)) which is described in section 197(e)(3)(A)(i), to which section 167 applies,

• • • `(B) which is section 1245 property (as defined in section 1245(a)(3)) or 1250 property (as defined in section 1250(c)), and

• • • `(C) which is acquired by purchase for use in the active conduct of a trade or business.

• • Such term shall not include any property described in section 50(b) and shall not include air conditioning or heating units.

• • `(2) PURCHASE DEFINED- For purposes of paragraph (1), the term `purchase' means any acquisition of property, but only if--

• • • `(A) the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267(b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants),

• • • `(B) the property is not acquired by one component member of a controlled group from another component member of the same controlled group, and

• • • `(C) the basis of the property in the hands of the person acquiring it is not determined--

• • • • `(i) in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or

• • • • `(ii) under section 1014(a) (relating to property acquired from a decedent).

• • `(3) COST- For purposes of this section, the cost of property does not include so much of the basis of such property as is determined by reference to the basis of other property held at any time by the person acquiring such property.

• • `(4) CONTROLLED GROUP DEFINED- For purposes of this section, the term `controlled group' has the meaning assigned to it by section 1563(a), except that, for such purposes, the phrase `more than 50 percent' shall be substituted for the phrase `at least 80 percent' each place it appears in section 1563(a)(1).

• • `(5) COORDINATION WITH SECTION 38- No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a).

• • `(6) RECAPTURE IN CERTAIN CASES- The Secretary shall, by regulations, provide for recapturing the benefit under any deduction allowable under subsection (a) with respect to any property which is not used predominantly in a trade or business at any time.

• `(c) Election-

• • `(1) IN GENERAL- An election under this section for any taxable year shall--

• • • `(A) specify the items of property to which the election applies, and

• • • `(B) be made on the taxpayer's return of the tax imposed by this chapter for the taxable year.

• • Such election shall be made in such manner as the Secretary may by regulations prescribe.

• • `(2) ELECTION IRREVOCABLE- Any election made under this section, and any specification contained in any such election, may not be revoked except with the consent of the Secretary.'.

• (b) Effective Date- The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.

SEC. 6. PAYROLL TAX DECREASE FOR 2010.

• (a) Employees- Section 3101 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

• `(d) Reduction in Tax Rate for 2010- In the case of wages received during calendar year 2010--

• • `(1) subsection (a) shall be applied by substituting `3.1 percent' for `6.2 percent' in the table contained therein, and

• • `(2) subsection (b) shall be applied by substituting `0.725 percent' for `1.45 percent' in paragraph (6) thereof.'.

• (b) Employers- Section 3111 of such Code is amended by adding at the end the following new subsection:

• `(d) Reduction in Tax Rate for 2010- In the case of wages paid during calendar year 2010--

• • `(1) subsection (a) shall be applied by substituting `3.1 percent' for `6.2 percent' in the table contained therein, and

• • `(2) subsection (b) shall be applied by substituting `0.725 percent' for `1.45 percent' in paragraph (6) thereof.'.

• (c) Self-Employment- Section 1401 of such Code is amended by adding at the end the following new subsection:

• `(d) Reduction in Tax Rate for 2010- In the case of a taxable year beginning in 2010--

• • `(1) subsection (a) shall be applied by substituting `6.2 percent' for `12.4 percent' in the table contained therein, and

• • `(2) subsection (b) shall be applied by substituting `1.45 percent' for `2.90 percent' in paragraph (6) thereof.'.

• (d) Effective Date-

• • (1) IN GENERAL- Except as provided by paragraph (2), the amendments made by this section shall apply with respect to remuneration paid after December 31, 2009.

• • (2) SELF-EMPLOYMENT- The amendment made by subsection (c) shall apply to taxable years beginning after December 31, 2009.

SEC. 7. RESCISSION AND REPEAL IN ARRA.

• (a) Rescission- Of the discretionary appropriations made available in division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5), all unobligated balances are rescinded.

• (b) Repeal- Subtitles B and C of title II and titles III through VII of division B of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) are repealed.

SEC. 8. TERMINATION OF TARP AUTHORITY.

• Section 120 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5230) is amended to read as follows:

`SEC. 120. TERMINATION OF AUTHORITY.

• `The authorities provided under sections 101(a), excluding section 101(a)(3), and 102 shall terminate on the date of the enactment of the Economic Freedom Act of 2010.'.

SEC. 9. REQUIRING THE SALE OF STOCK AND WARRANTS RECEIVED UNDER TARP.

• Not later than the end of the 1-year period beginning on the date of the enactment of this Act, the Secretary of the Treasury shall sell all stock and warrants acquired by the Secretary under the Troubled Asset Relief Program under title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.).

</H3>

 

[Oddball]

Ever get a job or contract from a broke dick?

 

[Big Fitz]

One of the toughest challenges we face in the economy is job creation. Government either has policies that foster the creation of jobs or policies that hinder it. Obama's Big Gigantic Government has spent Trillions upon Trillions bailing out Union members, Bankers, and Big Business. Yet, by practically any measure, the "stimulus" has failed and the economy is still losing jobs. Over 16% underemployed is not a pretty picture.

It is time to change course and take actions that have been proven to work. Representative Jim Jordan (R-OH) has sponsored a new bill "the Economic Freedom Act" (H.R. 5029), that I believe is a step in the right direction. Here are the details:

Economic Freedom Act - Congressman Jim Jordan

The Economic Freedom Act will help create jobs by:

* Reducing The Payroll Tax by Half for 2010. Provides immediate relief by increasing workers' paychecks and improving the bottom line for employers.

* Eliminating The Capital Gains Tax. Encourages the risk-taking and investment that is at the heart of the entrepreneurial spirit.

* Reducing the Corporate Tax Rate to 12.5%. Improves America's competitiveness in the global market and provides incentives for expansion and job creation.

* Permanently Eliminating the Death Tax. Ensures that small businesses and family farms, the engines of our economy, will continue creating jobs for future generations.

* Providing Immediate Business Expensing. Encourages long-term reinvestment in business, increasing competitiveness and creating jobs.

The bill would also save money by terminating TARP and repealing the remaining stimulus. I sent my Congressman an e-mail today urging him to support this bill.

ooh I'm up for this!

 

[midcan5]

This stupidity gets older and more empty, and yet it is repeated so often you'd wonder why and how reality is so far removed from the tax ideologues on the right? Jobs are going overseas and blaming that on government may be have partial truth to it, but the incentive to move is primarily based in labor costs and unless Americans can survive on a few dollars a day ain't gonna change much.

So as an American who buys American, supports unions and fair wages, and has done some limited fighting against the outsourcing of American work, can you say the same.



"... the tax burden on America's rich is falling, not growing. The top 0.01 percent of households has seen their tax bite fall by a full 25 percentage points since 1980. That was when 'trickle down' economics began, arguing that the rich spending more would benefit everyone as a whole. But America's poor have simply been getting poorer: clearly that theory has not worked in reality."

Wake up: the American Dream is over | World news | The Observer

"There is no historical evidence that tax cuts spur economic growth. The highest period of growth in U.S. history (1933-1973) also saw its highest tax rates on the rich: 70 to 91 percent. During this period, the general tax rate climbed as well, but it reached a plateau in 1969, and growth slowed down five years later. Almost all rich nations have higher general taxes than the U.S., and they are growing faster as well."


Tax cuts spur economic growth
The Idolatry of Ideology-Why Tax Cuts Hurt the Economy by Russ Beaton
Spending Cuts Vs. Tax Increases at the State Level, 10/30/01
Myth: The rich get rich because of their merit.
The rich get rich because of their merit.



"What improves the circumstances of the greater part can never be regarded as an inconveniency to the whole. No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable." The Wealth of Nations, Adam Smith

 

[Oddball]

Companies are offshoring for many more varied reasons than merely labor costs, uncle Karl.

But thanks fore dropping by with some more overly simplistic populist yammering and socialist class warrior boilerplate.

 

[Big Fitz]

Socilists do not understand how to create jobs, because they do not understand the economic process and believe in an 'vacuum based' zero sum view of the economy. Sometimes, I think they could learn a lot about economics just by being forced to play Railroad Tycoon 3 or Sim City 4 for a month.

It'd at least teach them the basics of how to run a municipal government or grow a business more than they currently comprehend.

 

[Zander]

Lower tax rates stimulates the economy and results in increased federal revenue. Coupled with cuts in federal spending and our our economy would boom and the deficits will go away. The key is that the spending cuts must be mandatory.

 

[Toro]

Lower tax rates stimulates the economy and results in increased federal revenue. Coupled with cuts in federal spending and our our economy would boom and the deficits will go away. The key is that the spending cuts must be mandatory.

I agree.

What supply side economics really means is that you don't have to cut spending dollar for dollar for every tax cut. Depending on the type of tax, for every $1 in tax cut, you can cut spending by say $0.80 and still balance the budget. For most taxes, the marginal amount of spending per dollar of tax rises when taxes are cut. Its not a linear relationship.

The problem that I have in the OP is that the politicians promise us things and pretend there are easy choices to cut spending. Cutting TARP and the stimulus are nice, hot button topics to red meat conservatives, along with the ubiquitous "waste," but none address real budget issues.

Until we start hearing politicians say they are going to cut social security, medicare and defense and still cut taxes, then its all just political demagoguery designed to curry votes and deceive the people. People have to grow up and realize they have to make hard, not easy choices.

 

[Paulie]

As a fiscal conservative, this bill insults the shit out of me.

What a pussy ass way out for congress.

This of course would satisfy the majority of the retard wanna-be fiscal conservatives in this country, and abdicate the RINO's of actually having to grow a set of balls and make the necessary cuts in spending.

I PISS on this piece of legislation.

 

[Old Rocks]

What were the tax rates in the '50s? What was the growth rate?