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Six Ways the “Protecting Americans from Tax Hikes” Act Helps American Taxpayers

December 16, 2015

The “Protecting Americans from Tax Hikes” act will grow our economy and help American taxpayers keep more of their hard-earned dollars. This bipartisan, pro-growth bill:

Delivers Certainty to American Taxpayers

  • By making a number of temporary tax provisions permanent, this legislation delivers predictability, clarity, and certainty for individuals, families and job creators. Americans will no longer have to worry each December if Congress will take action to extend certain tax relief policies.

Prevents Tax Increases

  • The provisions in this bill will prevent a significant immediate tax increase on millions of Americans. And in years to come, individual Americans and U.S. businesses will no longer have to worry if Congress will take action to extend important tax relief policies like:
    • Allowing State sales tax deductions;
    • Providing small business tax relief, including increased small business expensing; and
    • Offering incentives for innovation, including the research and development tax credit.

Grows our Economy

  • By delivering permanent tax relief to America’s job creators, this legislation will make it easier for employers to plan ahead, hire new workers, grow their businesses, and invest in their communities.

Serves as a Bridge to Comprehensive Tax Reform

  • This bill lays the groundwork for historic reforms that will fix our broken tax code. Instead of spending months each year debating temporary tax extensions, Congress will be able to focus on the comprehensive tax reform we all agree our country needs. Americans deserve a simpler, fairer and flatter tax code that’s built for growth, and this bill will help make that possible.

Prevents Fraud and Abuse

  • This legislation includes a number of provisions designed to strengthen the integrity of tax credit programs that today have high rates of improper payments, fraud, and abuse.  While these provisions are significant, they are only a small down payment on Republican efforts to make these tax credit programs more accountable. In the new year, Congress will take more actions to ensure the right amount of tax credits are paid out and that people can’t take advantage of the current broken tax system.

Reins in the IRS

  • This bill includes a series of reforms that have previously passed the House designed to rein in the power of the IRS and better protect taxpayers, such as:
    • Firing IRS employees who take politically motivated actions against taxpayers;
    • Requiring IRS employees to respect the taxpayer bill of rights; and
    • Prohibiting IRS employees from using personal e-mail accounts for official business.