Jim Banks on Tax Reform

Estate tax is an anti-growth policy

One of the most anti-growth tax policies is the estate tax. This tax punishes many small business owners and farmers who seek to pass on their investments of time and effort as a legacy to their children. Once he was elected to the State Senate, Jim was a leader in the fight to eliminate Indiana's Death Tax--one of only six states in the country that still assessed an inheritance tax at the time. Jim was recognized by many conservative groups and the Wall Street Journal for his work to repeal the state death tax and is the only candidate at the time of this writing who has signed a pledge to repeal the Federal estate tax as well.

Replace income tax and IRS with FairTax.

Congressional Summary: This bill imposes a national sales tax in lieu of the current income and corporate income tax, employment taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2017, with adjustments in subsequent years. U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon family size and poverty guidelines. No funding is allowed for the operations of the Internal Revenue Service after FY2019. Finally, the FairTax terminates if the 16th Amendment to the Constitution (authorizing an income tax) is not repealed within 7 years.

Supporters reasons for voting YEA: Rep. MORAN: I am all on board on tax reform, but the best solution is not tinkering with the current system; it is an overhaul of the current Tax Code. The FairTax, in my view, brings two goals front and center: to pass on to the next generation of Americans the freedoms and liberties guaranteed by our Constitution, and the opportunity for every American to live the American dream.

Opponents reasons for voting NAY: (by FairTaxWarrior.com):

• Criticisms from The Left
  • The FairTax rate is really 30%, not the 23% proponents say.
  • It`s an additional national sales tax.
  • It`s really just a windfall tax cut for the rich.
  • A sales tax is regressive, and punishes the poor unfairly.
  • It`s just a scheme to let corporations escape paying taxes.
• Criticisms from The Right:
  • The FairTax does nothing to cut government spending.
  • The 23% rate is too high.
  • It `s the largest welfare increase in history [via the Family Consumption Allowance]
• General criticisms
  • The FairTax will negatively impact the housing market [by removing the mortgage deduction].
  • Black market activity will increase.
  • The IRS won`t really be abolished.
  • The Flat (Income) Tax is a better option.
  • It will be a nightmare to transition to The FairTax from an Income Tax.

Opposes tax increases, even to balance the budget.

The Project Vote Smart Voter Guide inferred how candidates would respond to the question, 'Budget: In order to balance the budget, do you support an income tax increase on any tax bracket?' Project Vote Smart notes, `in response to the increasing unwillingness of candidates to answer issue questions, Project Vote Smart has researched Congressional candidates` public records to determine candidates` likely responses on certain key issues. These issue positions, from the year 2016, are provided [for candidates who] refused to provide voters with positions on key issues covered by the 2016 Political Courage Test, despite repeated requests. Historically, candidates have failed to complete our test due to the advice they receive from their parties and advisors and out of fear of negative attack ads.`

Supports lowering taxes to promote economic growth.

The Project Vote Smart Voter Guide inferred how candidates would respond to the question, 'Economy: Do you support lowering taxes as a means of promoting economic growth?' Project Vote Smart notes, `in response to the increasing unwillingness of candidates to answer issue questions, Project Vote Smart has researched Congressional candidates` public records to determine candidates` likely responses on certain key issues. These issue positions, from the year 2016, are provided [for candidates who] refused to provide voters with positions on key issues covered by the 2016 Political Courage Test, despite repeated requests. Historically, candidates have failed to complete our test due to the advice they receive from their parties and advisors and out of fear of negative attack ads.`