Legislative Priorities
A FAIR AND FISCALLY RESPONSIBLE TAX POLICY

Representative Robert T. Matsui has been a leader in helping Democrats become the party of fiscal responsibility. A staunch ally in President Clinton’s fight for balanced budgets and middle class tax cuts, Matsui has a substantial record of prudent financial management. He stood sentry over public finance while Republicans in control of the House have offered profligate budget plans to borrow and spend, at the expense of future generations. For more than two decades, he has used his position on the Ways & Means Committee, which is charged with writing the nation’s tax policy, to advance his goal of a balanced and fair revenue code that employs innovative incentives to achieve meaningful and measurable policy objectives.

According to the Congressional Budget Office, the federal government will spend around $25 trillion over the next ten years, and Matsui is committed to a revenue structure that ensures fiscal responsibility. Aware that any spending in excess of revenues raids the Social Security and Medicare trust funds and puts America’s future prosperity at risk, Matsui has first and foremost opposed the growing disconnect between revenues and expenditures. In, Matsui has repeatedly advocated trigger mechanisms that protect Social Security and Medicare by allowing spending or tax-cutting only if the government has available funds.

Matsui is also an experienced legislator in using tax code incentives to promote economic growth and stimulus. He helped create the Research and Development Tax Credit in 1981 to fuel innovation in the American economy and has been a leader in ensuring its extension while calling for Congress to make the credit permanent. A staunch advocate of renewable energy and defender of the environment, Matsui has also introduced many energy tax incentives, including the lead Democratic energy tax bill of the 107th Congress. Eminently concerned with tax fairness, Matsui cosponsored and actively worked to enact the Tax Reform Act of 1986 that closed numerous loopholes and helped bring balance back to the tax system. These reforms removed about 6 million working poor persons from the federal tax rolls and stiffened the minimum tax for corporations and individuals who paid less than their share. In the same spirit of tax equity, Matsui was instrumental in the 1993 expansion of the Earned-Income Tax Credit for working poor families with children. He has sought IRS reform to ensure fairness by protecting tax compliance while respecting taxpayer rights. Throughout his work, Matsui has earned a reputation for innovation and attention to detail on highly specialized tax provisions.

Current Agenda-107^th Congress

• Stop Republican Raids on the Social Security and Medicare Trust Funds.
• Close Tax Loopholes Allowing Rich Billionaires and Companies to Avoid Paying Their Share.
• Provide Targeted Tax Relief for the Middle Class and Business Investment.
• Make Tax Credits for Lowest-Income Americans Refundable.
• Modernize Tax Code by Removing Outdated Revenue Provisions.