CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Boehner Rejects Tax Hikes

Boehner Rejects Tax Hikes

by Leroy Baker, Tax-News.com, Washington

20 September 2011


As a warning to President Barack Obama in his formulation of further proposals to reduce the United States fiscal deficit, the Speaker of the House of Representatives, John Boehner, reiterated that the Republican Party would not countenance any more increases to taxation.

During a speech to the Economic Club of Washington, and in a reference to the President’s proposals within his American Jobs Act recently put before Congress that included payroll tax cuts aimed at increasing employment in the country, Boehner confirmed that the proposals will be considered by Republicans, and there were “opportunities for common ground".

However, he warned that while employers will hire if they have the right incentives, the incentives have to outweigh the costs. "Businesses are not going to hire someone for a USD4,000 tax credit if government mandates impose long-term costs on them that significantly exceed the temporary credit. In recent years, such mandates have been overwhelming,” he said.

He considered that “private-sector job creators of all sizes have been pummelled by decisions made in Washington. They have been slammed by uncertainty from the constant threat of new taxes, out-of-control spending, and unnecessary regulation from a government that is always micromanaging, meddling, and manipulating.”

While Boehner pointed out that it is clear that the US tax code needs to be fundamentally reformed, he said that “the first instinct out of Washington is to come up with a host of new tax credits that make the tax code more complex.”

On the contrary, in his opinion, while it is impossible that it could rewrite the tax code in the short time it has available, the Joint Select Committee on Deficit Reduction, that is currently formulating a plan to reduce the aggregate deficit over the next decade by a further USD1.5 trillion, could “lay the groundwork for tax reform in the future that will enhance the environment for economic growth.”

“The Joint Committee can develop principles for broad-based tax reform that will lower rates for individuals and corporations while closing deductions, credits, and special carve-outs in our tax code,” he added. “And I hope it will.”

“And if we’re going to tackle tax reform, we should do it all,” he continued. “Making short-term fixes in exchange for long-term flawed policy is not tax reform. Tax reform should deal with the whole tax code, both the personal side and the corporate side, and it should result in a code that is simpler and fairer to everyone.”

He emphasized, however, that tax increases are not a viable option for the Joint Committee. "It’s a very simple equation," he said. "Tax increases destroy jobs. And the Joint Committee is a jobs committee. Its mission is to reduce the deficit that is threatening job creation in our country.”

“When it comes to producing savings to reach its deficit reduction target,” he concluded, “the Joint Select Committee has only one option: spending cuts and entitlement reform.”

TAGS: tax | economics | fiscal policy | tax credits | United States | tax reform

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »