Q: Do you keep January’s tax hikes?
A: No. Tax rates went up in January. The House Republican budget calls for lower tax rates for all Americans.
The House Republican budget’s revenues assumptions are consistent with current law. But rather than rely on a broken, unfair tax code, this budget advances a framework for fundamental tax reform to create jobs and increase wages. Democrats are now asking for more tax hikes. They want to take more from families so they can spend more in Washington. The President already got the revenue he asked for. Balancing the budget requires we tackle the real problem: out-of-control spending.
Q: Do you keep the Obamacare tax increases?
A: No. The House Republican budget repeals Obamacare. It calls for fundamental tax reform. The question facing policymakers is, “Do you think Obamacare’s tax hikes are the best way to fund government?” House Republicans don’t. That’s why we repeal Obamacare and reform the tax code.
Q: How do the tax proposals in this budget compare to those put forward by President Obama’s bipartisan Fiscal Commission?
A: Our principles are the same as theirs: Lower rates to promote growth. Broaden the base to increase fairness. But unlike the commission, we don’t let government’s share of the economy rise to a record high of 21 percent. Instead, we keep government’s take much closer to its historical average. Washington can’t solve its spending problems by taking more money from families. They have to write a budget. Washington should do the same. By returning government to its proper role, this budget brings spending in line with taxes—not the other way around.
Q: Won’t this budget hurt homeowners and charitable giving by removing the mortgage-interest and charitable-contribution tax deductions?
A: The House Republican budget doesn’t address tax deductions. The Ways and Means Committee will ultimately make that decision. It will continue an open dialogue that this committee began last year. This budget advances a framework for pro-growth tax reform, as Ways and Means continues to build a consensus on how to simplify the tax code while encouraging job creation.
Q: Does this budget include special tax breaks for oil companies?
A: No. In fact, it does the opposite. This budget calls for fundamental tax reform that closes the loopholes that distort economic activity. It does call for an increase in safe, environmentally responsible domestic-energy exploration. But it includes no subsidies to promote this goal. Expanding American energy production would actually increase revenues collected from energy companies, while at the same time lowering gas prices and creating jobs in America.
Q: Does this budget include special tax breaks for moving jobs overseas?
A: No. In fact, this budget calls for comprehensive tax reform that would remove the barriers that discourage companies from investing profits they’ve made overseas in new jobs here at home. By lowering the world’s highest corporate tax rate and moving to a “territorial” tax system that doesn’t tax income earned abroad twice, this budget would promote more job creation in this country.
Q: Would the House Republican tax-reform framework disproportionately benefit higher-income earners, as suggested by the Tax Policy Center?
A: The Tax Policy Center did not analyze the House Republican budget, nor did it analyze the tax-reform framework provided by the House Ways and Means Committee. They instead analyzed a plan that has their own set of assumptions, choosing to ignore any possible base-broadening provisions and leaving their analysis incontrovertibly incomplete. This year, the House Ways and Means Committee will advance legislation to lower rates for all Americans and clear out special-interest carve outs. A fair and simple tax code could maintain current levels of progressivity by targeting the tax preferences that disproportionately favor higher-income earners. There is a bipartisan consensus to scrap the broken tax code and replace it with one that results in more jobs and higher wages. If both sides work together, we can get it done this year.