|
|
| |
| Foxx Report |
|
|
This week the House passed bipartisan legislation that includes my language to correct a limitation preventing the rollover of tax-deferred retirement funds into existing SIMPLE IRA accounts. The language is part of the Protecting Americans from Tax Hikes Act, which provides permanent tax relief for American families, college students, charities, small businesses and enterprises on the forefront of innovation. This legislation is an important first step on the long road to ensuring our tax system works for Americans, not against them.
SIMPLE IRAs face a 25 percent early withdrawal penalty during the first two years of their existence compared to 10 percent for other IRAs. In order to prevent account holders from unknowingly rolling their IRA funds into SIMPLE IRAs and being surprised by an increased early withdrawal penalty, current law prohibits rolling funds over into a SIMPLE IRA from other retirement accounts. However, SIMPLE IRAs have the same early withdrawal penalty as other IRAs after that initial two-year period, and consumers and financial planners have struggled with the rollover restrictions as they attempt to consolidate accounts. My language allows for rollovers into SIMPLE IRA accounts that have met the two-year threshold.
Individuals should be able to consolidate their retirement funds in a way that best meets their needs, and I’m pleased this legislation will simplify retirement planning and ensure a complex tax code does not prevent sensible financial planning decisions.
Suspending the Medical Device Tax
The Protecting Americans from Tax Hikes Act, which delivers certainty to American taxpayers and makes it easier for employers to plan ahead, hire new workers, grow their businesses and invest in their communities, also includes a provision to suspend the 2.3 percent excise tax on medical devices through 2017.
When the Democrats rammed the so-called Affordable Care Act through Congress, I joined my Republican colleagues in expressing our grave concerns over the effects of the law’s tax increases. And just as we cautioned, the excise tax on medical devices has hindered innovation as well as restricted growth and job creation in an industry that has improved the quality of life of millions around the world.
For example, Cook Medical, which employs 600 people in Winston-Salem, N.C., has paid roughly $13 million annually since the medical device tax was levied in 2013. That amounts to an increase of more than 30 percent in their taxes. As a result of the tax, the company was forced to pull back on plans to expand operations in the United States, including those located in in North Carolina’s 5th District.
Suspending this tax is only the first step. It needs to be permanently repealed and its harmful effects undone.
Omnibus Appropriations Bill
This week the House also passed a bipartisan “omnibus” spending bill to appropriate funds for the federal government by a vote of 316-113. As a legislator, I am often responsible for making a decision on the legislation before me rather than the legislation I’d like to see. While an omnibus spending bill is not ideal, this legislation includes a number of conservative victories and advances Republican priorities in spite of a divided Washington.
Among the provisions included in the bill is language that lifts the government’s 40-year-old ban on crude oil exports, which will help shift energy dependence of emerging democracies away from bad actors like Russia and Iran. The legislation also strengthens national security by tightening requirements under the visa waiver program and increasing resources for our military so that troops have what they need to carry out their mission.
Additionally the bill rejects funding for new or expanded EPA regulatory programs and holds the agency to its lowest spending levels since 2008. It also prohibits new funding for Obamacare and prevents a taxpayer bailout of Obamacare’s risk corridor program.
Earlier this year Senate Democrats vowed to block consideration of spending bills, causing the regular appropriations process to come to a halt and forcing this year-end omnibus legislation. Completing the appropriations process is Congress’ constitutional duty. It’s my sincere hope that next year the Senate will stop invoking the threat of harmful government shutdowns and complete its work under regular order as the House has done for the past five years, subjecting the vast federal bureaucracy to congressional oversight and allowing the elimination of wasteful spending on ineffective programs.
Boycott of Israel Is Attack on Academic Freedom
On Thursday I spoke on the House floor regarding the American Anthropological Association’s passage of a disgraceful resolution at its annual business meeting to boycott Israeli academic institutions.
By definition a boycott hinders study and research. It is deplorable to see leaders in America’s institutes of higher education support this stifling of academic discussion. Their actions are contradictory to the fundamental principles of academic freedom and the free exchange of ideas that they claim to promote.
While the supporters of this boycott claim to be standing up for the rights of Palestinians, what they’re actually doing is presenting a one-sided and inaccurate representation of reality in Israel and ignoring Palestinian violence. The simple truth is that throughout history, Israel has made numerous concessions in the pursuit of peace while seeking only the right to exist.
Anthropology teaches respect for cultural differences, but it’s clear some in academia didn’t learn that lesson. Let’s hope a majority of the members of the American Anthropological Association take time to understand the implications of this shameful resolution and vote no when it is put to a vote before the organization’s full membership in April.
What’s Coming Up
The House will recess for the holidays and reconvene on January 5, 2016. At this special time of year, I hope you will join me in praying for our nation's military personnel who serve America with enormous personal sacrifice and often must spend the holidays away from their loved ones. May you and your family have a blessed Christmas and a happy new year.
Sincerely,
|
|
|
|
NOTE: Please DO NOT respond to this email as this inbox is unattended. To contact my office please click here
|
|
|
