Taxes and Spending

Alternative minimum tax. Support long-term solutions to the problems created by the individual and corporate alternative minimum tax.

Capital gains and dividends. Oppose any rollback of reduced tax rates on capital gains or dividend income. Support reforms to lower capital gains and dividend income tax rates and make provisions permanent.

Capital investment. Support efforts to ensure a faster cost recovery of capital investment.

Corporate income taxes. Support efforts to reduce corporate income taxes to increase business investment and profitability.

Employment tax credits. Support permanent authorization of the Work Opportunity and Welfare-to-Work tax credits in order to provide continuity and more certainly to these programs to increase employment of disadvantaged workers and improve local economies.

Federal funding. Support state policies and programs that maximize the receipt and use of federal matching and other funds for state purposes. Support federal efforts that return a fair and equitable share of federal funds to states based on their contributions. Oppose federal efforts to establish and enforce conditions, including changes in state law, for the receipt of any state’s fair allocation of federal funds.

Federal fiscal policy. Support efforts to prohibit deficit spending and limit spending increases to some rational index, such as growth in personal income.

Federal unemployment tax. Support efforts to end what was intended to be a temporary federal unemployment tax surtax, repeal accelerated payment of federal unemployment tax and undertake a comprehensive review of the unemployment tax program to determine its effectiveness, fairness and value.

Global competition. Support tax code reforms and trade provisions that will improve the ability of U.S. companies to compete fairly in global markets. Support federal tax rates that will be more consistent with those in other countries, remove disincentives for domestic re-investment of foreign income.

Government contract withholding. Support the repeal of Section 511 of the Tax Reconciliation Act that mandates that federal, state and local governments withhold three percent from payments for goods and services. This unprecedented withholding mandate will affect all government contracts as well as other payments, such as Medicare and certain grants, is totally unrelated to any actual tax liability of a business providing goods or services and will add significant costs to both businesses and all levels of government.

Health Insurance Tax (HIT). Support the repeal of the HIT that will negatively impact the entire health care system by imposing a $100 billion onto employers and consumers. The HIT tax will cost an estimated 250,000 jobs nationally and 6,000 private sectors jobs in Texas.

Privatization. Encourage privatization of government functions where it can be shown that private, for-profit entities competing for opportunities can perform more efficiently and reduce overall government costs.

Research and development. Support efforts to increase federal support of research and development to ensure that the U.S. remains a world leader in technical innovation and Texas receives an appropriate share of support commensurate with our standing as an economic leader and exporter of technology.

Research and experimentation tax credit. Since its creation as a temporary measure in 1981, the research and experimentation tax credit has been extended thirteen times. The tax credit should be made permanent so that companies willing to invest in research and development to create jobs and expand businesses can undertake more certain long-range planning efforts.

Social Security reform. Position Social Security on a course towards solvency. Support legislation that gradually raises the retirement age for those under 55 and makes cost of living adjustments more realistic.

Tax cut rollbacks. Support efforts to make Bush tax cuts permanent.

Tax-deferred savings. Support efforts to expand and enhance opportunities for tax-deferred savings instruments.

Tax and regulatory policy. Support efforts to reform U.S. tax policy to create incentives for economic growth and foster, rather than penalize, technology investment. Oppose any attempts to generate additional revenues from businesses through revenue offsets or other indirect mechanisms such as limitations on deferral of income, changes in foreign tax credit rules, limitation on certain inventory rules, windfall profits on oil, and changes to marginal tax rates or restrictions on deferred compensation.