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Earlier today the White House indicated support for the Baucus-Grassley ‘tax extenders’ package that would continue nearly $150 billion in tax breaks and a one year patch for the Alternative Minimum Tax. Also included in the package are new taxes on energy, hedge fund managers and investment brokers, and extending the federal unemployment insurance surtax.
At a time when Americans are struggling under high energy prices, a tax increase on energy producers will only serve as a disincentive to production, further exasperating the pain at the pump.
We are also facing a crisis on Wall Street, and raising taxes on investors and hedge fund managers is counterproductive to ensuring liquidity in capital markets.
Rather than simply extending a patchwork of tax code complexity, Congress should have taken this as an opportunity for making America more competitive to reforming the personal and corporate tax code simpler, fairer, and flatter.
FreedomWorks President Matt Kibbe commented,
“In recent weeks congress has proved it can move quickly to bailout and reshape of markets, so it should be perfectly capable of taking on the big issues of tax complexity. This is another missed opportunity at comprehensive reform. FreedomWorks also is disappointed that Senators Baucus and Grassley are raising taxes on energy companies when Congress should be moving to take barriers down to greater energy production.”