The vote for (H.R.8) was a vote to avoid “taxmageddon”.

WASHINGTON, D.C-Yesterday, Congressman Steve Austria  voted in favor of the Job Protection and Recession Prevention Act of 2012  (H.R.8), which would prevent numerous tax rates from increasing and various credits from expiring on January 1, 2013. This impending January deadline for a massive tax increase is commonly referred to as “taxmageddon.” The bill passed the House with bipartisan support. The bill has been sent to the Senate for consideration.

“Today’s vote was critical to our families, small businesses and the job creators, in bringing them some economic certainty during these perilous times. As I travel home every weekend to meet throughout my District with hard working families who are struggling pay check to pay check and with small businesses that are fighting hard to stay afloat, it’s clear the last thing they need is the massive tax increase scheduled to kick in January if Congress fails to act now.  This bill will stop the tax hike facing every American who pays income tax and give small businesses and families the certainty they need,” said Congressman Austria.

“We don’t have a revenue problem in Washington,” continued Congressman Austria, “we have a spending problem.  We can’t attempt to balance the budget on the backs of American taxpayers by allowing these massive increases. The other danger is that these tax increases, which will total $300 billion next year, will be a tremendous job killer, destroying as many as 710,000 jobs. This is simply unacceptable. I urge the Senate and the President to protect American taxpayers from a huge disaster in January by joining in the bill passed by the House yesterday.”

 

 

Background

Specifically, the Job Protection and Recession Prevention Act of 2012 would maintain existing tax policy; including:

·         The marriage penalty relief;

·         The $1,000 child tax credit;

·         The 15% top rate on dividends and capital gains;

·         The death tax at its 2011 and 2012 parameters (indexed for inflation);

·         Preserving the repeal of PEP and Pease;

·         Providing higher Section 179 small business expensing limits;

·         Preserving certain education-related benefits, and;

·         Providing a two-year alternative minimum tax (AMT) patch

The other danger that this massive tax increase poses is that it will kill jobs. A recent study by the widely respected firm Ernst and Young found that President Obama’s tax increase would destroy more than 700,000 jobs.

American taxpayers are facing a crippling tax increase during a time of continued economic uncertainty.  Without this legislation, the death tax will increase from 35% to 55% with only a $1 million exemption; the dividend tax rate will increase from 15% to 39.6%; the AMT expiration will result in 27 million more Americans paying higher taxes, and millions more will be affected by the expiration of the child tax credit and marriage penalty. The Job Protection and Recession Prevention Act of 2012 would prevent a $300 billion tax increase next year, and the subsequent economic harm.

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