JOHN BOEHNER

With small businesses and every American family facing a massive tax increase exactly one month from today, Republicans are fighting to stop all of the job-killing tax hikes and end the economic uncertainty that is making it harder to create jobs.  Yesterday, House Speaker-designate John Boehner (R-OH) made clear that Republicans are standing firm in their opposition to raising taxes on any American: “Republicans made a pledge to America to cut spending and permanently stop all the tax hikes, and that’s exactly what we’re fighting for.”  

According to the non-partisan Tax Foundation, the looming tax hikes will force small businesses to pay “virtually the highest tax rates in the world on their business income,” creating “an invitation to outsource more jobs.”  (Wall Street Journal editorial, 12/1/10).  Republicans are listening to small business owners – our nation’s most important job creators – who have repeatedly warned that the looming tax hike will have a devastating impact on their ability to grow and hire new workers:

• “I own a small business. My company’s profit or loss flows directly to my personal tax return. … Increase my taxes and I won’t have the ability to expand and hire as I should. Why? Each employee I hire has to have tools, equipment and a vehicle.  If I can’t buy the vehicle and the equipment he needs to do his job, due to non-existent lending, it doesn’t make sense to hire the employee in the first place.” (Letter to the Editor, The Oklahoman, 11/26/10)

• “Curtis Hamilton says he wants to hire more programmers and buy computer hardware for his Escondido human resources firm. But he’s worried that his taxes will go up next year, and with the economy still struggling, he’s holding off. ‘It gives me pause because I don’t know whether to hang on to the cash or whether to make the investments,’ said Hamilton, 67, who founded Tri-Ad 35 years ago and now has about 100 employees.” (Los Angeles Times, 11/22/10)

• “The shipping business is highly sensitive to swings in the economy, and at Robert LeBus’ Unishippers office in Bethlehem, the last couple of years have been tight.  LeBus and his 13 employees specialize in helping companies manage logistics, the business of efficiently shipping their products to customers. … Now LeBus is worried that increased federal income taxes could take a further bite out of his operating margins if Congress allows Bush-era income tax cuts to expire.  ‘In order for me to pay my increased tax bill, I either have to raise my rates or reduce costs,’ LeBus said. ‘And the No. 1 cost point is employment.’” (The Morning Call, 11/16/10)

• “Still, anxiety persists about outsized spending, and confusion about taxes remains particularly acute among the ranks of small-business owners.  Small-business owners say they hesitate to make large investments, even in new hires, without understanding how much they’ll owe in taxes.  ‘In general, I’m frustrated,’ said Tim Boulden, the owner of Boulden Propane in Newark, who carries income from his business income onto his personal tax forms. ‘Instability and not knowing what my costs are going to be affect my decision-making and how aggressive I’m going to be.’” (The News-Journal, 11/14/10)

Democrats could have provided small business owners with the certainty they need to create jobs months ago by heeding Republicans’ call for an up-or-down vote on stopping all the job-killing tax hikes.  Instead, they delayed action, refusing to offer up any plan that does not include tax increases.  Now, with the clock quickly running out, Democratic leaders are reportedly planning to hold only a symbolic vote on taxes this week – one that has no chance of passing in the Senate, and would only reaffirm Democrats’ support for raising taxes on small businesses – a plan that even members of the Democrats’ own caucus are opposing:   

A PLEDGE TO AMERICA. In stark contrast to Democrats, Republicans remain united in their opposition to raising taxes on any American family or small business.  As Stanford economist Michael J. Boskin explains in an op-ed in today’s Wall Street Journal “[E]conomic theory, history and statistical studies reveal that more taxes and spending are more likely to harm than help the economy.  Those who demand spending control and oppose tax hikes hold the intellectual high ground.”  As part of the Pledge to America, Republicans committed to stopping all the taxes and cutting spending to restore the fiscal discipline needed to create jobs now.  Republicans will continue standing with small businesses and fighting to end the economic uncertainty that is hampering their ability to hire new workers.  The American people have spoken, and with just one month to go before the tax hike hits, it is far past time for Democrats to start listening.