Congressman Doc Hastings

Washington, Aug 1, 2012 - Today, the House of Representatives passed H.R. 8, the Job Protection and Recession Prevention Act, by a bipartisan vote of 256 to 171. This important legislation will extend current tax rates for all Americans and prevent a $4 trillion tax increase scheduled to take effect on January 1st.  

“A tax hike on American families and small businesses would be a devastating blow to our fragile economy,” said Congressman Doc Hastings, who supported the bill. “Unless Congress acts, the average family of four would see their taxes increase by $2,200 and the tax hike on small businesses could cause our economy to shed more than 700,000 jobs.”

H.R. 8, for one year, extends current income tax rates, the current estate tax and capital gains tax rate, and the child tax credit. It also prevents a return of the marriage tax penalty. Relief from the alternative minimum tax is extended for two years under this bill.

The House defeated an amendment by a bipartisan vote during consideration of this bill that would have allowed taxes to increase on 940,000 small business owners.  The amendment also would have resulted in an increase to the estate tax rate to 55 percent and the top rate capital gains tax to 20 percent. Relief from the alternative minimum tax under this proposal would be extended for one year only.

Tomorrow, the House is also expected to consider H.R. 6169, the Job Creation through a Simpler, Fairer Tax Code Act. This bill would allow comprehensive tax reform legislation that would close loopholes and simplify the tax code to be considered in 2013 under a fast-track process.

“By extending the current tax rates and reforming our tax structure, we will bring much needed certainty to our economy, allowing our job creators to grow their businesses and American families to keep more of their hard earned money,” said Hastings.