FEDERAL SPENDING AND TAXES

“People should be able to keep more of their paychecks.”

Marty Lamb

Marty Lamb is a strong supporter of using tax cuts to stimulate our economy. He has already signed the Americans for Tax Reform “No New Taxes” pledge. As our next Congressman, you can count on him to make taxes lower and fairer.

Marty Lamb understands that new economic growth will help individual investors prepare better for their retirement, children’s education, and other future needs. Most importantly, a thriving economy will create new jobs and spur opportunity for millions of Americans.

Marty Lamb supports tax cuts to stimulate the economy and ease the burden on working Americans. On the other hand, Congressman James McGovern’s record on taxes is worse than Speaker Nancy Pelosi’s. He has a perfect record of voting against taxpayers 100% of the time.

For people of Massachusetts taxes are an especially important issue. Commonwealth residents are over-burdened with high federal, state and property taxes. Time and time again James McGovern has failed to provide 3rd District residents with any relief.

For example, McGovern voted against Marriage Tax Relief which would have reduced the marriage penalty, and reduced by 1/3 the rates paid by many taxpayers in the lowest bracket.

McGovern has also opposed repealing the estate tax which is especially hard hitting on family owned businesses.

James McGovern is the most dependable vote Speaker Pelosi has when it comes to supporting higher taxes. Like a typical Washington politician, McGovern believes that the government knows best how to spend your money.

McGovern's Troubling Tax Record
ORGANIZATION	YEAR	RATING
National Taxpayer Union	2008	F
Americans for Tax Reform	2007	0%
National Tax Limitation Committee	2007 -2008	0%

Tax Relief

Currently, our federal tax policies are not only deterring businesses from creating jobs, but they also are putting our country at a competitive disadvantage. Our tax code must encourage investment, promote growth and reward risk takers. Most importantly, the business community needs certainty when it comes to tax liability in order to invest.

When President Kennedy faced similar economic conditions, he pushed for tax cuts which resulted in 9 million new jobs and increased federal revenues. When President Reagan cut taxes, 16.4 million new jobs were generated. And when President Clinton and the Republican Congress cut taxes, the nation added jobs. During this deep recession, we need to use tax policy to create a climate for investment in jobs and investment.

End the death tax. A ‘killer’ for small family businesses, the death tax punishes savings, families and investment capital.

Implement a six-month payroll tax holiday for small businesses and the people who work for them. Three out of every 4 new jobs are created by small business. By granting companies with 25 or fewer employees a short break from paying Social Security and Medicare taxes, Congress could jump start the economy and real job creation at a much lower cost than so-called stimulus programs. Middle class workers would benefit from a little more to spend and save in their weekly pay checks.

Institute a robust investment tax credit .

Stop the rollback of the 2001 and 2003 tax cuts. A recession is absolutely the wrong time to raise taxes. Higher taxes now will only further damage the economy. Individuals face income tax increases of 10% or more on January 1 – the lowest bracket will increase 50% -- unless Congress acts. Capital gains taxes and taxes on dividends (30% increase or more) will also increase in the absence of Congressional action.

Permanently eliminate capital gains taxes on new companies. More than half of new businesses fail. In order to get people to risk capital, the federal government should create a reward for taking the risk.

Allow businesses to deduct entire cost of capital expenses for equipment, technology, and buildings from taxable income during the year purchased.

Correct the flawed corporate tax structure. When you combine state and federal taxes, our nation has the highest corporate taxes in the world. According to the United States Chamber of Commerce, the combined federal and state corporate tax is higher then France in all fifty states. Congress needs to lower the corporate tax rate to make our country more competitive in the global marketplace.

Lamb also believes that job creation and global market competitiveness can be helped by modernizing job training programs, reducing health care costs without creating a government mandate, downsizing compliance costs, keeping the dollar stable, attacking law suit abuse, and reducing the long-term threat of inflation by reining in government spending.