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Fiscal Responsibility and Tax Relief
As a small businessman, I am deeply concerned with our nation’s financial management. Over the last ten years, economic instability and policy changes in Washington have reduced revenues, increased spending and erased a $127 billion budget surplus. Today, our national debt has increased to over $12 trillion – an unsustainable burden that will inevitably fall on future generations.
While the current economic situation has required the government to take action to jumpstart our economy, Congress must not lose focus of its responsibility to take the necessary steps to restrain and reduce government spending. To help achieve this objective, I helped introduce and pass H.R. 2920, The Statutory Pay-As-You-Go Act of 2009. This legislation requires Congress to offset the cost of any tax cut, or increase in entitlement spending with savings from elsewhere in the federal budget. I believe that Congress should be required to make budget decisions the same way as families in Upstate New York do, and Pay-As-You-Go rules will help bring us back to a more sustainable budget.
While Pay-As-You-Go principles are a positive step toward fiscal responsibility, I am also committed to eliminating wasteful spending. In fact, in my first few months in office, I have voted to eliminate over $24 billion in government spending and have supported efforts to cut and eliminate funding for federal programs that simply should not be continued during difficult economic times. When a bill came up that would increase the budget for my own congressional office I voted against that too because during this time we are all making difficult decisions and sacrifices, and those sacrifices should not be limited to our hard-working taxpayers.
I also believe that in order to create a healthy economy, we must also work to create a fair tax policy. That is why I have worked to provide targeted tax relief to working families and small businesses. My first piece of legislation was an extension of the “Make Work Pay” tax credit. Under my legislation, taxpayers would continue to receive a refundable tax credit up to $400 for working individuals, and up to $800 for married taxpayers filing joint returns.
To help create jobs and strengthen our economy, I have co-sponsored The Small Business Formation and Job Creation Act, which provides businesses with the capital they need to create jobs, invest, and grow the economy. The legislation would increase the tax deduction for small business startup expenses from $5,000 to $20,000, and would increase the phase out limit from $50,000 to $75,000.
Finally, to help alleviate the growing burden of New York State property taxes, I have co-sponsored The Property Tax Relief Act. We are all aware that New Yorkers’ property taxes are too high and our families are overextended as a result. This legislation would extend an expiring tax law that provides a standard property tax deduction capped at $500 ($1,000 for joint filers) for homeowners who do not itemize their federal tax returns. It is estimated that this legislation would benefit 1,433,058 New Yorkers.
Along with Representatives John Hall, Maurice Hinchey, and Elliot Engel, all of whom represent the Hudson Valley in Congress, I called on Governor Paterson to immediately introduce legislation to reduce the MTA payroll tax in Dutchess County. For more information, please click here.
As a small businessman, I understand that today’s challenging economic climate has forced individuals and families to make tough choices and tighten their belts. I believe Congress should make those same sacrifices, while providing targeted relief to those who need it the most. Targeted tax relief will unleash private sector innovation, make Upstate New York more competitive, and allow businesses to grow and create jobs.
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