Focus on Massachusetts’ Strengths. Massachusetts is uniquely positioned to come out stronger than ever from the most recent recession. Massachusetts has one of the most hard working and highly-educated workforce with the highest-quality academic resources to provide innovative support, and we have an active venture capital community. In addition, the Commonwealth is emerging as a technological leader, particularly in the field of communications. Yet, the high cost of doing business in Massachusetts remains a barrier to market access. With the right policies we can reduce the barriers to market entry and ensure ensure health growth and job opportunities. As a member of Congress Karla Romero will propose an 8 point plan to strengthen our economy by utilizing the strengths of our Commonwealth:
The following are some details of Karla's pro-growth, pro-jobs agenda:
Helping Individuals, families, and small businesses. Today's economy is the worst that has been seen in two generations. Americans today are struggling to afford their mortgage payments or to put food on the table for their families. Many people who find themselves in these situations are living paycheck-to-paycheck hoping to get by. Karla Romero applauds the resiliance of these individuals and families, especially those that are making every effort avoid foreclosure for the to good of their credit score and greater benefit of the neighborhood in which they live. The health of our economy depends on people being able to afford the cost of living and being able to support their families. That is why Karla Romero believes we must provide financial broad based relief to families and individuals, the consumers that drive 70 percent of economy. To ensure a strong recovery we need to restore and raise consumer confidence by increasing the purchasing power of individuals, families, and small businesses. To this end Karla Romero believes that we must lower marginal individual income tax rates to a rate structure of 8, 14, and 23 percent. In addition, Karla believes we must reform the federal withholding tax, an antiquated holdover from the World War II era. Additionally, Karla is dedicated to amending the alternative minimum tax (AMT), a tax that hits those earn between $100,000 to $250,000 particularly hard. The AMT, plain and simply, is a tax that stands as a barrier to upward mobility, which is simply un-American. These measures could, on average, save a married couple up to $6,000. These measures will also ensure that half of all small businesses, that pay taxes under the individual tax code, will have the resources needed to operate.
Easing Financial Pressure On Those Who Are Unemployed. Two years after the worst economic collapse since the Great Depression, nearly 9 million of our fellow Americans are still without work. Many of these people have not been able to find work for more than six months. Thus far the Congress has had to extend the length over time of which people can continue to collect unemployment benefits twice. Yet still, millions are struggling with the costs of supporting their family, while at the same time trying to find work. Karla Romero believes that it unfair to tax those that are actively searching for new work. As a member of Congress Karla will fight to make unemployment benefits tax free. Karla Romero will also implement a back to work model which allows individuals to use unemployment money as payment during a trial period with a new employer. This incentive makes it easier to train new workers at no cost to employers.
Stabilizing Worker Pensions and Helping Employers Invest in the Future. The stock market decline has not only had consequences on Americans’ savings, it has also put significant strain on employers and the pension plans they offer their employees. Rules mandating plans to recognize the majority of their losses in 2008 immediately and make up for those losses quickly are leaving many companies with unaffordable obligations, which could force employers to stop offering pension plans altogether. To help ensure the stability of these employee pension plans, and allow employers to retain jobs and weather the economic storm, as a member of Congress Karla Romero will advocate for a measure that temporarily provides an increased glide path for recognizing losses and two additional years to resolve funding shortfalls. The measure would, however, require employers to continue making interest payments to their pension plans to prevent shortfalls from growing larger.
Building an Environment More Friendly to Capital Formation. Businesses in the United States are burdened with some of the highest tax rates amongst developed countries, second only to Japan. In 2011, capital gains tax rates for taxpayers in the top four income brackets are set to move higher. At year-end, the current 15% tax rate on capital gains for assets held one-year-or-more will rise to 20% for individuals earning approximately $34,000-or-more and married couples earning $68,000 or higher. Karla Romero plans to make our nation a more attractive place for businesses of all sizes to set up shop and allocate capital by reducing the corporate income tax to 12.5%, abolishing the the withholding tax, doing away with the Federal unemployment tax, eliminating the capital gains tax, and repealing the estate tax. Doing away with the capital gains tax will increase growth in real GDP by a little more than 0.23 percentage points per year, lower the unemployment rate by 0.7 percent, and raise productivity growth by 0.5 percentage points a year. Ending the estate tax will The combined effect of these policies will result in the annual creation of over 2.3 million jobs.
Move to a competitive territorial tax system. To bring the U.S. system more in line with our international trading partners’, we recommend changing the way we tax foreign-source income by moving to a territorial system. Under such a system, income earned by foreign subsidiaries and branch operations (e.g., a foreign-owned company with a subsidiary operating in the United States) is exempt from their country’s domestic corporate income tax. Therefore, under a territorial system, most or all of the foreign profits are not subject to domestic tax.
Reducing Employer Employment Costs. The payroll tax on employers is essentially a tax on employment that makes it costly to bring on additional employees. Ending the Federal unemployment tax will save employers $56 per employee.
- Cutting the cost of living and restoring consumer and small business confidence;
- Easing financial pressures on those who are unemployed;
- Stabilizing worker Pensions;
- Eliminating barriers to capital creation;
- Making investment and production more profitable;
- Lowering employer employment costs;
- Adopting legislation to make America the most friendly place for technology innovation; and
- Abolishing ineffective and harmful regulations, programs, and bureaucracies that choke off economic activity.
The following are some details of Karla's pro-growth, pro-jobs agenda:
Helping Individuals, families, and small businesses. Today's economy is the worst that has been seen in two generations. Americans today are struggling to afford their mortgage payments or to put food on the table for their families. Many people who find themselves in these situations are living paycheck-to-paycheck hoping to get by. Karla Romero applauds the resiliance of these individuals and families, especially those that are making every effort avoid foreclosure for the to good of their credit score and greater benefit of the neighborhood in which they live. The health of our economy depends on people being able to afford the cost of living and being able to support their families. That is why Karla Romero believes we must provide financial broad based relief to families and individuals, the consumers that drive 70 percent of economy. To ensure a strong recovery we need to restore and raise consumer confidence by increasing the purchasing power of individuals, families, and small businesses. To this end Karla Romero believes that we must lower marginal individual income tax rates to a rate structure of 8, 14, and 23 percent. In addition, Karla believes we must reform the federal withholding tax, an antiquated holdover from the World War II era. Additionally, Karla is dedicated to amending the alternative minimum tax (AMT), a tax that hits those earn between $100,000 to $250,000 particularly hard. The AMT, plain and simply, is a tax that stands as a barrier to upward mobility, which is simply un-American. These measures could, on average, save a married couple up to $6,000. These measures will also ensure that half of all small businesses, that pay taxes under the individual tax code, will have the resources needed to operate.
Easing Financial Pressure On Those Who Are Unemployed. Two years after the worst economic collapse since the Great Depression, nearly 9 million of our fellow Americans are still without work. Many of these people have not been able to find work for more than six months. Thus far the Congress has had to extend the length over time of which people can continue to collect unemployment benefits twice. Yet still, millions are struggling with the costs of supporting their family, while at the same time trying to find work. Karla Romero believes that it unfair to tax those that are actively searching for new work. As a member of Congress Karla will fight to make unemployment benefits tax free. Karla Romero will also implement a back to work model which allows individuals to use unemployment money as payment during a trial period with a new employer. This incentive makes it easier to train new workers at no cost to employers.
Stabilizing Worker Pensions and Helping Employers Invest in the Future. The stock market decline has not only had consequences on Americans’ savings, it has also put significant strain on employers and the pension plans they offer their employees. Rules mandating plans to recognize the majority of their losses in 2008 immediately and make up for those losses quickly are leaving many companies with unaffordable obligations, which could force employers to stop offering pension plans altogether. To help ensure the stability of these employee pension plans, and allow employers to retain jobs and weather the economic storm, as a member of Congress Karla Romero will advocate for a measure that temporarily provides an increased glide path for recognizing losses and two additional years to resolve funding shortfalls. The measure would, however, require employers to continue making interest payments to their pension plans to prevent shortfalls from growing larger.
Building an Environment More Friendly to Capital Formation. Businesses in the United States are burdened with some of the highest tax rates amongst developed countries, second only to Japan. In 2011, capital gains tax rates for taxpayers in the top four income brackets are set to move higher. At year-end, the current 15% tax rate on capital gains for assets held one-year-or-more will rise to 20% for individuals earning approximately $34,000-or-more and married couples earning $68,000 or higher. Karla Romero plans to make our nation a more attractive place for businesses of all sizes to set up shop and allocate capital by reducing the corporate income tax to 12.5%, abolishing the the withholding tax, doing away with the Federal unemployment tax, eliminating the capital gains tax, and repealing the estate tax. Doing away with the capital gains tax will increase growth in real GDP by a little more than 0.23 percentage points per year, lower the unemployment rate by 0.7 percent, and raise productivity growth by 0.5 percentage points a year. Ending the estate tax will The combined effect of these policies will result in the annual creation of over 2.3 million jobs.
Move to a competitive territorial tax system. To bring the U.S. system more in line with our international trading partners’, we recommend changing the way we tax foreign-source income by moving to a territorial system. Under such a system, income earned by foreign subsidiaries and branch operations (e.g., a foreign-owned company with a subsidiary operating in the United States) is exempt from their country’s domestic corporate income tax. Therefore, under a territorial system, most or all of the foreign profits are not subject to domestic tax.
Reducing Employer Employment Costs. The payroll tax on employers is essentially a tax on employment that makes it costly to bring on additional employees. Ending the Federal unemployment tax will save employers $56 per employee.
