Sessions Supports Economic Stimulus Legislation As Important First Step for Needed Tax Relief

U.S. Congressman Pete Sessions (R-Dallas) today released the following statement in support of the economic stimulus legislation the House of Representatives passed today:

“Today, I joined my colleagues in the House in supporting the economic stimulus legislation, representing the bipartisan agreement of President Bush and congressional leaders. From decreasing the tax burden on middle-class families to providing tax relief for American businesses, this legislation represents an important first step in addressing the need for comprehensive tax relief, which is essential for long-term economic growth.

“I am pleased that this legislation recognizes the importance of business expensing to economic growth. By offering a nearly $50 billion expensing incentive to spur business investment in new equipment, this pro-growth provision will allow American business to reinvest in their businesses and grow our economy by hiring new workers. I urge Congress to build on these pro-growth principles by passing and enacting the EXPENSE Act (H.R. 1250), legislation that I have introduced which allows businesses to determine their own depreciation schedules and allocate their resources more efficiently as the market demands—not as dictated by an arbitrary expensing table.

“Additionally, Congress must make permanent the tax relief provided in 2001 and 2003, including the child tax credit, state and local sales tax deduction, and tax relief on capital gains and dividends. As President Bush noted in his State of the Union address, failure to renew these important tax cuts will result in an average tax increase of $1,800 for nearly 116 million taxpayers. American families and businesses deserve certainty in their tax obligation, and making this tax relief permanent will encourage long-term economic growth and stability.

“Lastly, I believe that Congress should reduce the corporate income tax rate from 35% to 25% to ensure that American businesses can continue to grow, produce jobs, and remain competitive in the global marketplace. As an original cosponsor of the Economic Growth Act (H.R. 5109), I believe that this pro-growth legislation encourages long-term growth and represents an effective alternative to today’s short-term economic stimulus bill. In addition to providing full, immediate business expensing, the Economic Growth Act would reduce the top corporate tax rate from 35% to 25%, end the capital gains tax on inflation, and simplify the capital gains rate structure.

“In an effort to build on today’s economic stimulus agreement, I will work with my colleagues in Congress to provide comprehensive tax relief that will further relieve the tax burden on American families, encourage business investment and job creation, and advance long-term economic growth.”