Congress should cut the top marginal tax rate for individuals as its newest stimulus, Sen. Jim DeMint (R-S.C.) said Tuesday.
The conservative senator said that not only should the Congress keep in place the tax cuts enacted earlier this decade by President George W. Bush, but also cut the top rate even further.
"What we need to do is what I've proposed and many Republicans is, first of all, we stop this tax explosion that's scheduled for next year," DeMint said during an appearance on Fox News. "The Bush tax cuts expire. Every tax that you can think of goes up -- capital gains, alternative minimum, marriage penalty. It all comes back into play."
But DeMint said that if Congress wants to really create jobs, it should slash the 35 percent rate currently faced by the wealthiest individuals and corporations (i.e., with an income in 2009 higher than $373,000).
"But we also need to just cut the top marginal rate for individuals and corporations so that we're more competitive and companies can look way out in the future and know they'll have a competitive tax rate," DeMint said.
The conservative senator dismissed President Barack Obama's idea of one-year tax breaks for businesses, combined with increased federal spending initiatives, as lacking an understanding of economics and business.
"He's never worked in a business," DeMint said. "He doesn't know how to run a business or create jobs."