Sessions Joins Dreier, Colleagues in Unveiling The Fair and Simple Tax Act

U.S. Congressman Pete Sessions (R-Dallas) today joined Rules Committee Ranking Member David Dreier (R-CA) and Representatives King (R-NY), Candice Miller (R-MI), Eric Cantor (R-VA), Vito Fossella (R-NY) George Radanovich (R-CA), Ed Royce (R-CA), Mary Bono Mack (R-CA), Charlie Dent (R-PA), Wally Herger (R-CA) and Roy Blunt (R-MO) to unveil The Fair and Simple Tax Act (H.R. 5105), introduced today by Ranking Member Dreier.

“Tax relief is essential to economic growth, and I fully support Mr. Dreier’s effective tax reform plan designed to relieve the tax burden on American families, encourage business investment and job creation, and facilitate continued economic growth,” Sessions stated.

The Fair and Simple Tax (FAST) Act simplifies the tax code for all Americans with a new, one-page tax filing form and with common-sense tax solutions under the following maximum income tax rates:

• 10% of income up to $40,000
• 15% of income over $40,000 and up to $150,000
• 30% of income over $150,000

Through the extension of existing tax relief and new, flexible tax-free savings accounts, the FAST Act allows taxpayers to keep more of what they earn and encourages them to save and invest through the following provisions:

• Creates new Retirement Savings Account and a new Lifetime Savings Account for up to $5,000 of tax-free contributions per year.
• Creates a new, tax-free savings Lifetime Skills Account for workers to save up to $1,000 of tax-free contributions per year for training and education.
• Provides a new health care deduction of $7,500 for individuals and $15,000 for families under the age of 65 who do not have employer healthcare coverage – and unspent money could be used for out-of-pocket health expenses.

“As families across America struggle with soaring healthcare costs, I am pleased that this common-sense tax reform bill enables families to save for medical expenses through tax deductions and Health Savings Accounts,” Sessions said. “And by allowing families and small businesses to keep more of their hard-earned dollars, more money will be available to invest back into our economy through consumer spending and business capital.”

The FAST Act also permanently extends the tax relief of 2001 and 2003, which is particularly important for the real job-creators of our economy: American businesses. By permanently extending the Research and Development Tax credit and business expensing provisions, American business will continue to have the important tools they need to compete with foreign companies. Additionally, the FAST Act includes the following pro-growth, job-creation provisions:

• Repeals the Estate and Gift taxes.
• Indexes the Individual and Corporate Alternative Minimum Tax to Inflation.
• Reduces the Corporate Income Tax from 35% to 25%.
• Reduces the Individual Capital Gains tax rate from 15% to 10%, and indexes it to inflation.

“American families and American businesses deserve certainty in their tax obligation. Not only does the FAST Act simplify the current tax chaos through less paperwork and common-sense solutions, but it also allows families to keep more of their own money and ensures that American businesses can continue to grow, create jobs, and compete with foreign companies,” Sessions concluded.