WASHINGTON--Rep. Roger Williams, R-Austin, will introduce this week the first part of a seven-bill tax reform plan meant to stimulate small business expansion, bolster economic growth and reduce unemployment--even if it means increasing the budget deficit.
Williams said Tuesday afternoon that the plan, called Jumpstart America, is based on years of input from business owners and his own four decades of experience running his family car dealership. The primary goal is to get more cash flowing away from the government and into small businesses, which Williams said will increase employment.
"Right now it's not the American Dream, it's the American scheme that we're all fighting," he said. "You have to release the pressure off small business to allow investment, and this will do that."
Jumpstart America consists of seven bills that cut personal and corporate income tax, payroll tax and capital gains tax. Others create incentives for corporations to repatriate money held in foreign accounts, and allow businesses to write off all of the money they spend on certain equipment immediately.
If enacted, Williams said he believes the plan can bring unemployment down to 5 percent, drive growth up to 4 percent of GDP per year and take millions of Americans off of entitlement programs.
"I'm convinced that the problems we've got today in America, all the way from the things we see on the streets of Baltimore, you name it: It can all be fixed by people having a job and getting a paycheck," said Williams, referring to the April protests and riots in response to the death of Freddie Grey, who died from injuries suffered after being arrested by Baltimore police.
The plan doesn't include spending cuts, and Williams said an analysis of Jumpstart found that it would increase the deficit for two years before the potential economic benefits kick into gear. He's also working with the conservative Americans for Tax Reform and the Tax Foundation to gather data about how Jumpstart would impact the economy.
Though Williams said reducing spending and the national debt are important, he called Jumpstart a crucial first step and rejected the idea of a revenue-neutral plan.
"We don't deal with that term, because that is not a private sector term, and if you deal with revenue-neutral, you're merely saying that this is as good as America's going to be," said Williams. "I don't believe that."
Williams also recognized how it will be near impossible to get the plan passed in this session of Congress. While both Democrats and Republicans have called for a simpler, fairer tax code, Jumpstart's conservative fiscal policy fundamentals are unlikely to earn President Barack Obama's approval.
Senate Majority Leader Mitch McConnell also said tax reform won't happen until a new president takes office in 2017.
But Williams said he wants to have a plan ready for when the time is right and send a message to business community that Congress is looking out for it.
'We're a consumption-driven nation, and right now everybody's playing defense. They're holding back because they don't know what's ahead," said Williams. "We've got to be able to get things going."