Ralph Abraham on Tax Reform
Rep. ABRAHAM: This governor helped create the deficit. He voted for the majority of Governor Jindal's budgets. And we have the highest sales tax in the nation. We have lost jobs more than any other state in the nation. And it's due to taxes, taxes, taxes. I happen to have an op ed in my pocket. That was written by Gov. Edwards. And Governor, you said that raising the sales tax will kill the Louisiana economy. Congratulations, Governor, you killed it. It is because our taxes are too high.
Gov. EDWARDS: That's an absurd statement. The economy is the biggest it's ever been in our state. Personal income is the highest it's ever been. And unemployment is the lowest in 11 years. That's why we're running a surplus, because the economy is performing better.
Abraham said the tax code is a problem. "We've got to get rid of this tax code," he said. "It's overrated and it's outdated and it's leaking billions."
Repeals the federal estate, gift, and generation-skipping transfer taxes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Heritage Action Summary: This bill would repeal the estate and generation-skipping transfer taxes, as well as cut the top gift tax rate.
Heritage Foundation recommendation to vote YES: (4/16/2015): Collectively, these measures repeal the pernicious double tax known as the "death tax," and result in a tax cut of $269 billion over 10 years. The death tax hurts economic growth and therefore limits the ability of Americans to prosper. Repealing the death tax would generate an average of 18,000 jobs annually and increase the overall net worth of American households by $300 billion a year. The federal government should encourage, not punish, Americans who work and pay taxes their whole lives, save enough to support themselves through retirement, and retain the ability to fulfill the American Dream by passing along a better life to their children.
Secretary of Labor Robert Reich recommendation to vote YES: (robertreich.org 6/4/2015): At a time of historic economic inequality, it should be a no-brainer to raise a tax on inherited wealth for the very rich. Yet there's a move among some members of Congress to abolish it altogether. Today the estate tax reaches only the richest 2/10 of 1%, and applies only to dollars in excess of $10.86 million for married couples or $5.43 million for individuals. That means if a couple leaves to their heirs $10,860,001, they now pay the estate tax on $1. The current estate tax rate is 40%, so that would be 40 cents. Yet according to these members of Congress, that's still too much. Our democracy's Founding Fathers did not want a privileged aristocracy. Yet that's the direction we're going in. The tax on inherited wealth is one of the major bulwarks against it. That tax should be increased and strengthened.
Legislative outcome: Passed by the House 240-179-12; never came to vote in Senate.