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Stopping tax hikes in a fragile economy
Washington, Sep 1 -
With unemployment in America still painfully high, there has been a lot of talk recently about the best way to move our economy forward. The president has spent much of his time talking about his plan to pay for more stimulus spending by allowing massive tax hikes on families and small businesses starting January 1, 2011. This is simply the wrong approach. During August, I spent plenty of time talking to employers who after seeing all of the taxes, all of the ‘stimulus’ spending, and all of the new rules handed down from Washington have decided to sit on their hands. Hitting small business – the engine of economic growth – with more jobs-killing tax hikes in this poor economy will only make matters worse. The president claims that his plan will only affect a small number of Americans, but according to an analysis by the non-partisan Committee on Joint Taxation, Congress's official tax scorekeeper, half of small business income in America will face a tax increase. It’s no wonder as most small businesses pay taxes based on the individual rate. ABC News recently talked to several small business operators who would be impacted by the president’s plan, including a manufacturer who said raising the rates would cost him an additional $30,000 to $40,000. Another small commercial printer said that the tax hikes will cost an additional $120,000 next year, and could force him to cut jobs. In another sign of the Democrats’ vehement opposition to the plight of small business, the new health law vastly expanded IRS information reporting mandate for employers. Often called “1099,” referring to the form number, in 2012 all business will be required to report to the IRS any purchases made over $600 for goods and services from other businesses. Small businesses will be particularly hurt as they will be forced to sacrifice precious time and money to comply with this unnecessary bureaucratic paperwork mandate. Please know that I strongly oppose this burdensome and costly mandate and will fight to repeal it before it goes into effect. Employers won’t be alone in feeling the pinch from President Obama’s crushing economic policies on January 1, 2011. The House’s tax-writing committee predicts: A family of four earning $50,000 per year could pay more than $2,100 in higher taxes. The child tax credit will be cut in half, from $1,000 to $500 per child, costing 31 million families an average of $1,033 in higher taxes next year. According to the Tax Foundation, Third District families will likely pay $1,895 more a year in higher taxes. That’s $1,895 that could be used to pay for the unexpected auto repair bill or a family vacation. We know that the taxing-spending-and-borrowing-binge in Washington isn’t getting our economy moving. It’s time Democrats and Republicans in Congress sat down in a bipartisan way and agreed on a real pro-growth plan. Simply put - raising taxes in this fragile economy will not create jobs. American families and small businesses want, need and deserve to keep more of their own hard-earned money. Together we can eliminate the tax hikes, stop the ‘stimulus’ spending spree, and get our economy moving again. Now is the time to act. We need an up or down vote on freezing tax rates for everyone before Election Day so the American people can see for themselves who supports or opposes small business. # # #