U.S. Rep. Scott Tipton, R-Cortez, introduced his first piece of legislation in the U.S. House of Representatives on Tuesday.
The bill, House Resolution 1074, is aimed at reducing corporate income, capital gains and dividends tax rates to 10 percent each as opposed to the current combined level of 39 percent.
Through the proposed legislation, the Cortez native hopes to stimulate business investment, job creation and economic growth.
I made a commitment during my campaign to level the playing field by reducing tax rates on job creators to spur on economic growth, Tipton said in a prepared statement from his office. As our country struggles to recover from the worst economic downturn since the Great Depression, our economy is in dire need of a shot in the arm.
The United States holds the second highest combined corporate income tax rate of any developed nation in the Organization for Economic Cooperation and Development, according to the statement from Tiptons office. At more than 39 percent, the U.S. combined rate is far above the OECD average of 25 percent, making the U.S. comparatively unattractive to businesses looking to expand operations and create jobs. By cutting the federal corporate income tax rate to 10 percent, the U.S. can be globally competitive once again, and attract business investment, job creation, and economic growth, according to Tiptons office.
History has proven that capital gains tax revenues increase when rates are reduced, according to Tiptons office. This was the case after each of the recent capital gains tax cuts in 1981, 1997 and 2003. A common misconception is that capital gains tax cuts only benefit wealthy Americans, but the reality is that in 2005, 47 percent of tax returns reporting capital gains also reported household incomes under $50,000. Furthermore, capital gains taxes hit middle-class Americans harder because they can exercise less control over when they realize capital gains.
We need to provide relief to American families and small businesses and provide the incentive for investment in our economy, Tipton said. By reducing corporate income tax, capital gains and dividends tax rates to 10 percent, and making these tax cuts permanent, we can again unlock capital investment, encourage job creation, and drive economic recovery.
Back in Colorado, Tipton has written a letter in support of a bicycle race near Grand Junction that he argues would benefit the economy of Mesa County.
A request for the 2011 Quiznos Pro Challenge bicycle race to travel through Colorado National Monument was declined. After a conversation with the parks director, Tipton wrote a letter to John Wessels, regional director for the National Park Service, to allow the race to travel through the monument.
Last Thursday I was troubled to read that Mesa Countys unemployment rate is currently at 11.9 percent, Tipton wrote. The communities near Colorado National Monument have been particularly hard hit by the recession and are now looking for ways to create jobs and get back on track.
The race was conceived by Lance Armstrong and attracts 126 professional riders, the races Web site states.
U.S. Sen. Mark Udall, D-Colo., and Colorado Gov. John Hickenlooper also have written letters in support of the event.
Reach Reid Wright at [email protected]