WASHINGTON, D.C. - As Democrat leaders struggle this week to justify yet another multi-billion dollar bailout, Representative Louie Gohmert (R-TX) is demanding an end to further socialization of the economy. The Congressman officially introduced this week his alternative to Paulson's spending spree - a plan that would allow American taxpayers to keep their hard-earned dollars and decide for themselves how to revive the economy.
Gohmert's legislation (H.R. 7309) would require that ALL federal income tax based on wages earned and FICA withholding normally coming out of a paycheck be left in their paychecks for two straight months. This would dramatically increase the amount of each worker's paycheck. The tax cut would be fully paid for by ending all authority to spend another dime of Sec. Paulson's remaining $350 billion slush fund. Even wage-earners who do not make enough to pay income tax would get back their FICA or Social Security withholding so it would apply to the entire spectrum of taxpayers. The bill would do what should have been done long ago - allow taxpayers to hang on to the money they worked so hard for and use it to decide which companies deserve bailing out.
Gohmert stated, "In a matter of months, Paulson and Bernanke have committed $7.7 trillion to bailouts while individually Americans will pay $1.2 trillion in income taxes for all of 2008. We need to end the madness and implement a common-sense, free market solution to our economic woes. My plan would cost less than the remainder of the bailout, but it would provide significantly more relief to taxpayers as well as a greater economic boost. Think about how much more of your paycheck you would see if you didn't pay federal taxes for January and February 2009! These savings will allow some who are behind on their mortgages to catch up, others to trade their gas guzzlers for more efficient cars, pay off credit card debt, or take advantage of great deals in the stock market. Our ailing industries would get the stimulus they need.
"Of course, I'd love to see long-term tax relief to individuals and a cut in corporate taxes to protect our businesses and American workers. However, I also know that those who control Congress and will soon control the White House will not allow that form of extended relief to be passed anytime soon. Therefore, as some of my colleagues and I deal with the political reality of the situation, we are trying to get done what we can with the circumstances we are given. That is why we are pushing this tax holiday as an alternative to giving Sec. Paulson the remainder of his slush fund. We want to put this money into the hands of the people who will know exactly what to do with it - the American taxpayers who earned this money."
According to American Solutions, a conservative think tank founded by former Speaker of the House Newt Gingrich, Americans pay $101.6 billion per month in personal income tax and $65.6 billion per month in FICA tax. A two-month reprieve from these taxes would cost less than the remaining $350 billion in bailout funds sought by Paulson and provide taxpayers with nearly a 17% reduction in income tax for 2009. The ordinary income from wages or services performed in January and February would be entirely federal tax free. People will only pay income tax on 10 months of earnings.