Sen. Jon Kyl (R-AZ) spoke to the NAM’s Manufacturing Summit this morning, and drawing from his position as a member of Republican leadership and the Senate Finance Committee, focused his remarks on tax policy.
The Senator expressed surprise that Senate Democrats had not moved on the estate tax at all this year, even after the tax rate fell to 0 percent as of January 1 and returns to the old, top tax rate of 55 percent after Dec. 30th. Kyl and Sen. Blanche Lincoln (D-AZ) are sponsoring legislation that would create a top tax rate of 35 percent with a $5 million deduction and indexed to inflation.
He also talked about the prospect of the 2001 and 2003 “Bush tax cuts” expiring at the end of the year. Kyle urged manufacturers to talk to their members of Congress about the competitive environment Congress is failing to encourage. Ask these questions, he suggested:
How do you intend to enable American businesses to compete, if we have a very high corporate tax rate, if the capital gains and dividend rates go back up to where they were, and you in effect tax capital formation by allowing the top two brackets to be increased. How is that going to enable us to compete? When people say, we’re going to punish American because they’re taking jobs overseas, obviously they’re getting cause and effect relationship just exactly backwards. The question is, what’s driving us overseas?
The Senator also warned against the financial regulatory reform legislation, saying it will do as much harm to job creation as the health care legislation.
We’ve have sound files of his remarks, separated into his speech and Q&A.
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