CONSERVATIVE OBJECTIVES

Enact legislation to make the tax cuts of 2001 and 2003 permanent.

The tax cuts of 2001 and 2003 shortened and softened the recession and the economic blow of the terrorist attacks. The 2003 tax bill was especially effective since it not only reduced the double-taxation of dividends and capital gains, but also accelerated the income tax rate reductions from the 2001 tax bill. As a result, America is now enjoying a strong economic expansion. However, these tax policy changes are scheduled to expire by 2011. If congress lets the tax cuts expire, taxes will rise and the economy will slow down. Making the tax cuts permanent will send a signal that Congress values continued economic growth.

Enact legislation to reform or repeal the alternative minimum tax and the corporate profits tax.

Congress introduced the alternative minimum tax (AMT) for individuals more than 30 years ago as a means of ensuring that a small number of very wealthy taxpayers could not use tax preferences to avoid any tax liability. This provision has grown into an alternative tax universe that is now affecting millions of Americans. The AMT does not allow taxpayers to take credits or deductions, taxes their income at the relatively high rates of 26 percent and 28 percent, and does not adjust their tax brackets for inflation. Today, thanks to years of providing middle-class taxpayers with special credits and deductions, over 1 million taxpayers are paying the AMT. The U.S. Treasury forecasts that over 40 million taxpayers will be paying AMT taxes within 10 years. Congress should repeal the AMT as part of a major program of tax reform.

Reform the tax code by adopting a single rate, flat income tax that taxes all income once and at its source.

Unleashing the productive potential of the U.S. economy requires that Congress reform today's enormously complex, increasingly burdensome tax system. Congress should adopt a tax system that eliminates all multiple layers of taxation by taxing all income once, at its source, and at one low rate. Such a "flat tax" system would increase the incentives to work, save, and invest and vastly reduce the current barriers to economic growth raised by today's tax system.

Lawmakers should vigorously defend the principle of fiscal sovereignty by rejecting tax harmonization schemes being advocated by the EU and the OECD.

the need to compete in the global economy is a powerful reason why the United States should lower tax rates and shift to a territorial tax system--the common-sense notion of not double taxing income earned outside U.S. borders. congress and the Presidents should not accept any agreements or enact any legislation that would harmonized the U.S. tax system with that of any other country or group of countries.

Congress and the President should adopt energy and environmental policies that enhance the quality of life while facilitating the growth of national income.

An environmentally sound national energy policy would also encourage the growth of new energy supplies and smarter energy use, both of which contribute to increased economic activity and greater national income. congress should adopt a comprehensive energy policy that enhances domestic energy supplies by opening access to oil and gas reserves that are currently off-limits or restricted. further, Congress should promote diverse energy supplies including coal, nuclear, and hydropower, employing new, safer, and cleaner technologies to reduce dependence on foreign imports of oil and gas to meet increasing demand for energy. Likewise, Congress should reform restrictive regulatory regimes contained in the Clean Air Act and Clean Water Act, which increase costs and restrict energy access and supplies but in fact do little to improve the environment.

Amend the Fair Labor Standards Act (FLSA) to allow workers to take compensatory time off in place of overtime pay.

In this era of two-income families, many workers, especially those with children, would prefer to take additional time off in exchange for working overtime. A compensatory-time amendment to the FLSA would allow employers and workers to agree to just that. Comp time is a pro-worker, pro-family law that allows greater cooperation between employers and employees and reflects the reality of the modern workplace. This would reduce employer overtime costs and increase productivity.

Make unions more accountable to the rank and file.

Unions will always play a vital role in the American workplace, but they should alwyas be strictly accountable to the workers they represent. To strengthen union accountability, two changes should be made to U.S. labor law. First, an external audit should be a required part of the financial reports that unions file under the Labor-Management Reporting and Disclosure Act. Workers are entitled to know that their union is using its resources wisely, and auditing will reduce the risks of fraud and abuse. Second, no employer should be allowed to recognize a union without a secret-ballot election. Workers should always have the final say on union recognition, and a secret-ballot vote is the best way to ensure that workers' desires are accurately represeneted in this critical workplace decision.