Jerry Moran: “It would appear to me then that clause 5(c) of rule XXI is meaningless, since we have never changed any income tax rate…”

“It would appear to me then that clause 5(c) of rule XXI is meaningless, since we have never changed any income tax rate, increased it or decreased it, without first striking the prevailing tax rate and inserting a new tax rate. I understand that the ruling of the Chair is based upon a conclusion by the Joint Tax Commission that the provision we passed in the first day of this session does not apply to effective tax rate changes, and that in fact the change from the capital gains rate of 28 percent to 39.6 percent does not apply because we first struck the 28 percent before imposing the 39.6 percent as it applies to capital gains. Mr. Speaker, that is the way we have done every tax rate change. You first have to strike the existing change and then impose a new one. That means that subsequently, if this ruling prevails, that this body is able to increase tax rates anytime it wants simply by striking the existing rate, putting in a new rate, or, if it chooses, to say that the taxes will now apply to 110 percent of income without changing the tax rates. Mr. Speaker, this is a very dangerous precedent.”