Recently, I sent out a survey seeking your input on the president's possible plan for tax reform. I want to thank the more than 5,100 respondents for participating in this survey. While the survey data was collected from a random sample of emails in the Second Congressional District, it is not a scientific poll, and it is important to note this. However, the data do allow me to understand broader feelings of my constituents on this critical issue. After reviewing your responses, the biggest takeaway for me is that the vast majority of Arkansans believe it’s time to change the tax code.

Ninety-one percent of respondents supported a simplified process for individuals and families filing their taxes. Think about that – getting 91 percent support on any issue is nearly impossible, but Arkansans clearly believe that the current process is too complex and needs changing. This almost universal support is unsurprising when you consider a 2015 report from the National Taxpayers Union, which found that 94 percent of returns are filed with some kind of assistance, whether paid preparers or automatic software, and compliance costs are estimated at almost $234 billion. 

Sixty-six percent of respondents agree that there should be no Border Adjustment Tax (BAT), which is an added tax imposed on imported goods.  The same number supports a repeal of the estate tax, and 55 percent support the goal of reducing the corporate tax rate to 15 percent. These are three key issues that will have a lasting effect on economic growth, particularly the corporate tax rate.

In the United States, we have one of the highest corporate tax rates in the industrialized world. This hurts our ability to recruit new jobs to America, and it hurts our ability to keep existing American companies "American." Lowering this rate is essential to growing the number of well-paying jobs for our citizens, and it will benefit small and medium sized businesses who feel they are being taxed and regulated into extinction.  

According to the Small Business Administration, small businesses make up 99.7 percent of U.S. employer firms and 64 percent of net private sector jobs. A lower tax rate for them creates an environment where our strongest incubator of new jobs--small businesses--can thrive.

Another important data point was that 70 percent of the respondents said they are not willing to pay higher taxes to reduce the federal budget deficit. To me, this is consistent with what I hear when talking to Arkansans: the government's spending habits need to be reevaluated; our budget process is not fair to the taxpayer (particularly those who are working long hours to make ends meet); and individuals are saddled with constant tax increases, but receive little added benefit as a result. Nearly 59 percent said they want fewer government services in order to reduce taxes, 20.2 percent want government services and taxes as they are now, and 21.5 percent would rather have more government services if that meant more taxes. These data points are also important to consider when we are determining our budget. 

As I have long said, I believe tax reform is a crucial step toward re-accelerating our economy, bringing more jobs to our state, and removing the burdensome process for individuals and families who file their taxes. As we move forward in this process, I will continue to seek your input, and if you have any additional thoughts on tax reform, please reach out to me on Facebook or via email (French.Hill@mail.house.gov).

Representative French Hill

Photos for the Week

National Police Week

On Wednesday, Rep. Hill spoke on the House Floor in recognition of National Police Week. In the speech, he told the American people, "I rise today during National Police Week to pay tribute to the Nation's law enforcement men and women.

"Established in 1962 by President Kennedy, National Police Week serves as a reminder of the incredible sacrifice our police officers make every day to serve and protect the people in our States and communities.

"Just last week, Lieutenant Kevin Mainhart of the Yell County Sheriff's Department was killed in the line of duty during a traffic stop in Dardanelle, Arkansas. This tragedy reminds us of the danger that all of our men and women who police our streets have to face.

"Every American should be proud of our neighbors and fellow citizens who get up every morning, put on their uniform and badge, leave their families, and serve us all, keeping our cities and towns safe and trying to build the trust and faith among our citizens.

"I respect and appreciate the important work of our police and our law enforcement men and women in Arkansas and throughout the Nation. They deserve our gratitude. "

Click here to watch Rep. Hill's speech.

Golden Fleece for the IRS

Last week, Rep. Hill announced that this month’s Golden Fleece recipient is the Internal Revenue Service (IRS) during an interview on First News with Kevin Miller.

During the interview, Hill stated, “The IRS’ anti-fraud program [is] a really important part of what the IRS does.  Just between 2008 and 2010, they lost $458 billion a year on not capturing fraud.  They get the Golden Fleece for [their work on] a fraud program to improve their capture rate that is now over budget by $86 million. The original budget was $57 million. We need to catch fraudulent returns, but we also need the kind of management, implementation, and responsibility at the IRS to do that in the right way.”  

Listen to the entire interview here.

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