Ensign says raising taxes would hurt U.S. in trade - Business

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Sep. 07, 2007
Copyright © Las Vegas Review-Journal

Ensign says raising taxes would hurt U.S. in trade

By STEVE TETREAULT
STEPHENS WASHINGTON BUREAU

John Ensign
Nevada senator says other nations around the world are 'racing to cut their taxes'

WASHINGTON -- Sen. John Ensign, R-Nev., warned Thursday against Congress raising taxes this fall, saying the United States risks its competitiveness against Asian and European nations that are "racing" in the opposite direction to cut taxes.

"The corporate income tax rate in America is the second highest in the industrialized world," Ensign said in a Senate speech. "Rather than looking for ways to raise taxes, I believe this Congress should be looking for ways to make us more competitive by lowering taxes."

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Ensign's message of low taxes, reduced spending and smaller government was not new for him. But he said he chose to speak on the topic as Congress begins to consider tax and spending bills for the fall.

The Nevada Republican joined the Senate Finance Committee this summer where new taxes are being debated both publicly and privately among senators in back rooms, he said.

"I just want to start laying down that to keep this economy strong we have to look not just at keeping taxes low but can we look at lowering other business taxes," he said following the speech.

"There are certainly some taxes I believe the (Democrats) are going to try to raise this fall," Ensign said.

Among higher-profile issues, the Finance Committee is considering bills that would change the way that private equity fund managers are taxed on millions of dollars they receive as profit for arranging complex business restructurings.

Managers now are able to count much of this "carried interest" profit as capital gains, which are taxed at 15 percent, a lower rate than if it was considered ordinary income. Bills before Congress would raise the rate on such gains to as much as 35 percent.

Ensign said lawmakers also are eyeing possible tax increases to offset the cost of "fixing" the alternative minimum tax, an added levy on a growing number of middle income taxpayers.

Also, he noted, a Democrat-adopted 2008 budget resolution assumes that some of the tax cuts Congress passed early in President Bush's term will expire as scheduled in 2010, a move that Republicans decry as a de facto tax increase.

The Democratic budget does assume that tax cuts aimed at helping the middle class, like the child tax credit, will remain and will be extended.

"Today our economy is healthy and strong because of tax relief that the Republican Congress provided," Ensign said. "But that is the past."

A spokesman for Senate Majority Leader Harry Reid, D-Nev., said Democrats have passed bills "that put working families first."

Democrats argue the Bush tax cuts lean to the wealthy.

"President Bush has not done the economy any favors," Reid spokesman Jon Summers said.

In the speech, Ensign maintained that "countries around the world including in Europe, are racing to cut their taxes."

A study of 86 countries last year by KPMG International showed that tax cuts attracted investment, with revenue losses "offset by new revenue from increased hiring and spending," he said.

"Sound familiar? It's the economic plan that in the 1980s helped raise our nation out of one of our worst economic situations," he said.

That strategy was promoted by President Reagan and "marked the longest peacetime expansion in history."

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. apdp wrote on September 07, 2007 05:10 PM: Come on with the same demo dribble. It never stops from you jerks. Taxes will go up if a dem is elected, you know it, I know and I am not talking about corporate taxes. The middle class will get shafted again. It was not a Republican that flew the planes into the towers. It was the result of a complacent two term president that was more engaged with where the next blow job was then what threats were developing against the US around the world. Put your sillary button on and continue to ignore reality, as I am sure your californee education makes you smarter then us dumb Nevadans. What a twirp JD. Jon Hamel wrote on September 07, 2007 11:19 AM: I like this John Ensign – Barry Goldwater talk. Now lets see if it can translate into some concrete action. It’s time that all Republicans adopt an Libertarian free market political stance and get away from the Republican Fascist political ones. Mr. Ensign, you are going the right direction! Bravo! EmmaJean wrote on September 07, 2007 11:15 AM: I understand the need to have low tax rates for competitiveness, etc. But we have blown that option with war funding and entitlements. Lets pay our way for a bit. apdp wrote on September 07, 2007 10:21 AM: Come on with the same demo dribble. It never stops from you jerks. Taxes will go up if a dem is elected, you know it, I know and I am not talking about corporate taxes. The middle class will get shafted again. It was not a Republican that flew the planes into the towers. It was the result of a complacent two term president that was more engaged with where the next blow job was then what threats were developing to the US around the world. Put your sillary button on and continue to ignore reality, as I am sure your california education makes you smarter then us dumb Nevadans. What a twirp. Adam wrote on September 07, 2007 09:27 AM: Hmm, those poooor corporations, the demeeeekrats want all ur money! Oh, wait, most of our money is being spent on a war or two we've been throwing around. That musta been the demeeekrats faults toooo! JD wrote on September 07, 2007 09:01 AM: The funniest part about people who think they are Republicans is that they support people who do virtually nothing to return the tax dollars we pay, to the people who pay the taxes. If you are not multi-millionaires or the CEO of a large corporation you are being conned by the Republican Party to vote for their people. Of course, you don’t know it; that’s how brainwashing works. They also count on people with marginal educations, like many in Nevada. The Republican run up of the national debt is like using a credit card that we all have to pay, the debt doesn’t go away. They have in fact just supplanted raising taxes with borrowing. The Republicans spend more than any previous administration ever has; you nitwits. Also, unless you are expecting to inherit millions of dollars from someone who is not an immediate family member, you will not benefit from the change the Republicans made to the estate tax; nits. JD wrote on September 07, 2007 08:58 AM: The funniest part about people who think they are Republicans is that they support people who do virtually nothing to return the tax dollars we pay to, the people who pay the taxes. If you are not multi-millionaires or the CEO of a large corporation you are being conned by the Republican Party to vote for their people. Of course, you don’t know it; that has brainwashing works. They also count on people with marginal educations, like many in Nevada. The Republican run up of the national debt is like using a credit card that we all have to pay, the debt doesn’t go away. They have in fact just supplanted raising taxes with borrowing; the net is that it is even more costly with the interest charges. The Republicans spend and have spent more than any previous administration ever has; you nitwits. Also, unless you are expecting to inherit millions of dollars from someone who is not an immediate family member, you will not benefit from the change the Republicans made to the estate tax; nits. apdp wrote on September 07, 2007 08:20 AM: It is evident JD is a demo. He can crack on ensign, but dingy harry is his hero. Hold on to your wallets, if JD, reid, sillary have their way, taxes go up for us poor working slobs. bruce wrote on September 07, 2007 07:52 AM: Senator Ensign is right on .Lower taxes helps everyone workers save money paying lower taxes so they can spend more,no brainer.Demacrates raise taxes,keep the people broke,go on welfare and vote demacrat to get more goverment help.raise taxes puts small business out of business.demacrats don't believe in free interprise,thay lose control. Lawrence Hyde wrote on September 07, 2007 07:36 AM: If the democrats gain any more power there will definitely be tax increases. Most liberals say they are taxing the "rich", however every time the taxes raise on the "rich" prices for the less "rich" go up. Now who is paying more the "rich" or the less rich? Read All Comments