Conservative House Republicans at noon today introduced their version of an economic stimulus package that they say will ensure “Washington takes a back seat to Main Street.”
The Republican Study Committee plan contains a series of growth-oriented measures that would reduce taxes and cut spending.
According to the RSC press release, “The RSC’s Economic Recovery and Middle-Class Relief Act is based on three main themes: 1) Support Families through Tax Relief; 2) Economic Relief for American Businesses and Entreprenuers; and 3) Save Future Generations from a Crushing Debt Burden.”
The plan includes a 5% across the board income tax cut for individuals and families, an increase in the child tax credit from $1,000 to $5,000 and makes the 15% capital gains tax rate permanent.
Also in the proposal are measures for business, including cutting the top corporate tax rate from 35% to 25%, making the research and development tax credit permanent and indexing the capital gains tax for inflation.
The conservative plan rejects the “trillion dollar spending spree” that Democrats including President-elect Barack Obama are offering to stimulate the economy.
“This legislation does not contain one penny of new spending, and rejects the idea that massive new government spending will lead to an economic recovery. Borrowing from one part of the economy and redistributing it to others will not grow the economy,” according to the House Study Committee plan.
The proposal includes a 1% reduction in discretionary spending in the fiscal 2009 budget except for Defense and Veterans spending.