Reichert Opposes Massive Tax Increases Masquerading as Tax Relief
Washington,
May 28 -
Congressman Dave Reichert (WA-08), a member of the House Ways & Means Committee, today released the following statement regarding H.R. 4213, a proposal that would implement massive, permanent tax increases, harming the ability of businesses to create jobs and compete, reducing benefits for retirees, and crippling development of promising innovations in health care:
“I wish I could have supported this bill, because there were important provisions in it that Americans need – provisions I’ve authored and fought for – including an incentive for energy efficient home construction and a key tax deduction to help our teachers who so often pay out of their pockets for classroom supplies,” Reichert said. “Congress also should’ve been able to deliver an extension of the state sales tax deduction, the R&D tax credit, and disaster recovery expensing and incentives. But with unemployment at 9.9 percent and our economy continuing to struggle, we simply cannot afford the massive tax increases on small businesses in this bill, especially the taxes on investments by American job creators.
“It makes absolutely no sense for Congress to talk about tax relief and job creation, then turn around and approve legislation that unfairly harms investment and American businesses,” Reichert continued. “Entrepreneurs and investors who risk their money – especially in attempts to create new businesses and new jobs – should be encouraged, not punished. America needs a tax code that creates incentives to take risks. Private equity firms and venture capitalists have been major drivers of our nation’s economic growth, and taxing them would not only hurt investments in start-up companies, but it would also hurt their ability to compete in a global economy.
“What’s more, this proposal is particularly bad for Washington State’s workers and economy. Many pension funds, real estate trusts, and university endowments would be hurt by the tax increases in this bill. Washington is the second-largest state investor in private equity funds in the country, and this tax could seriously hurt returns from state pension funds for Washington’s 440,000 retired state and local government employees. As if that weren’t bad enough, this tax could also hurt investments in the life sciences companies that develop cancer fighting drugs, heart disease treatments, and tools for managing diabetes. These small companies drive the promising research and innovation that can improve the health and wellness of millions of Americans.
“In short, I can’t in good conscience support this bill because it would do more harm than good. Americans are tired of business-as-usual in Congress, and I’m here to continue fighting for our citizens’ best interests.”
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