“YES” on the Job Protection and Recession Prevention Act of 2012
Later this week, the House may vote on the Job Protection and Recession Prevention Act of 2012 (H.R.8), which would prevent numerous tax rates from increasing and various credits from expiring on January 1, 2013, commonly referred to as “taxmageddon.” Specifically, the Job Protection and Recession Prevention Act of 2012 would maintain existing tax policy; including:
- The lower rates from the 2001 and 2003 tax cuts
- The marriage penalty relief;
- The $1,000 child tax credit;
- The 15% top rate on dividends and capital gains;
- The death tax at its 2011 and 2012 parameters (indexed for inflation);
- Preserving the repeal of PEP and Pease;
- Providing higher Section 179 small business expensing limits;
- Preserving certain education-related benefits, and;
- Providing a two-year alternative minimum tax (AMT) patch
Without this legislation, the death tax will increase from 35% to 55% with just a $1 million exemption, the dividend tax rate will increase from 15% to 39.6%, the AMT will result in 27 million more Americans paying higher taxes, and millions more will be affected by the expiration of the child tax credit and marriage penalty. The Job Protection and Recession Prevention Act of 2012 would prevent a $300 billion tax increase next year, and the subsequent economic harm.
Although a permanent extension would do more for the economy in terms of providing certainty than repeated short-term extensions, this legislation would help avoid a lame-duck session during which outgoing lawmakers may be more inclined to agree to tax hikes.
Heritage Action supports H.R.8 and will include it as a key vote on our scorecard.