Without extension, every taxpaying family faces a major tax hike in January
Westford, MA – Yesterday, the United States Congress voted 256-171 in favor of extending the “Bush era” tax cuts. Representative Niki Tsongas voted with her party and against Massachusetts families by voting against the tax cut extension, as data shows that the people in her district will face an average tax increase of more than $4000.00 in 2013. (The Heritage Foundation)
House Democrats claim those who make more money can afford to pay more money. Hence, their opposition to extending tax cuts for everyone.
“This is politics at its best,” said 3rd District Congressional Candidate Jon Golnik. “The Democrats believe ‘class-warfare’ is a good election year message so are trying to create it on the floor of the House. It may sound good to say you support middle class tax cuts and big bad Republicans favor the wealthy, but that is not the facts. Everyone will be hurt if all extensions aren’t made.”
This vote comes on the heels of a US Senate Democratic backed bill that would have extended the tax cuts for just a portion of Americans, leaving any small business owner with a $200,000 income or higher with a massive tax hike in the midst of a struggling economy and terrible jobs market.
“Once again Niki Tsongas and the Democratic party are seeking to pay for their inability to reign in their reckless spending by raising taxes. We do not have a revenue problem in this country. We have a spending problem. We have become the federal government’s ATMs that the Washington, DC elite access to pay for their government expanding agenda.” said Golnik. “The reality is without extending tax cuts to everyone, we will see an increase of taxes on nearly one million small businesses who file their business taxes at the individual tax rate. You do not increase taxes on small businesses, or any business, when we are in the middle of a jobs crisis, and you cannot increase the costs to an employer and expect that employer to create jobs.”
According to the National Federation of Individual Business (NFIB), small businesses have created nearly 70% of new U.S. jobs in recent years. An NFIB survey also states, “the businesses most likely to face a tax increase by raising the top two rates are businesses employing between 20 and 250 employees. According to U.S. Census data, businesses with between 20 and 299 workers employ more than 25 percent of the total workforce.”
“My question is, in the midst of a economic and jobs crisis, how could Niki Tsongas vote to increase taxes on anyone?” Golnik questioned. “This is not the time to be raising taxes on small business owners. How do you argue that if you raise taxes on employers they will run out and hire more employees? Aren’t they struggling enough in this economy? Hostility to small business owners is unmistakably a matter of policy for Representative Tsongas.”
According to NFIB CEO Dan Danner, “at least 75 percent of small businesses file taxes on business income at the individual rate, and reinvest those earnings to grow the business and hire workers.”
According to the National Association of Manufacturers (NAM), “[a]bout 68 percent of all manufacturers are organized as S-corporations or other entities that file at the individual rate.”2
According to the Joint Committee on Taxation (JCT), raising taxes “only” on those owners of small businesses with incomes above $200,000 / $250,000 would still subject approximately 50% of small business income to a tax increase. (Waysandmeans.house.gov)
What plan do Niki Tsongas and House Democrats have? They voted to increase taxes while we have economic growth under 2% and an unemployment rate over 8% for 41 months and counting.
“Last week Sen. Patty Murray, D-Wash., a member of her party's leadership, said if there was no deal by January, her party would be willing to let all the tax cuts expire to pressure Republicans to give ground.” http://seattletimes.nwsource.com/html/politics/2018756868_apuscongresstaxfight.html
“If the Democrats let the tax extensions lapse for everyone for the purpose of pressuring ‘Republicans to give ground’, they are literally playing with the financial security of millions of struggling families in this country,” Golnik noted. “According to the White House itself, if the tax cuts are not extended, 114 million families will face an average $1600 tax hike next year.” http://www.whitehouse.gov/sites/default/files/uploads/middleclassreport_7_24_2012.pdf
Golnik noted his ideas for an improvement in the employment market, “Let’s extend the tax cuts for everyone and make it permanent. We have the highest corporate tax rate in the world at 35%. If we want businesses to stop moving overseas for business climates that have more business friendly tax and regulatory regimes, let’s lower that to 25% to keep them here and allow them to grow and hire. Regulations increase the cost of doing business and our private sector is drowning in red tape. The cost of implementing regulations takes away from the ability of businesses to grow and hire. Let’s have a comprehensive review of all pending regulation and impose a one year moratorium on all new regulations so businesses have time to recover. Finally, we must repeal the job-killing health care law (Obamacare) and instead institute real reform that will address the cost of medicine.
“Business has no certainty with regard to future tax and regulatory policies. This climate of uncertainty means businesses aren’t secure and will be reluctant to hire. One needs to look no further than the anemic private sector hiring of last month at a paltry 80,000. The Government Accountability Office (GAO) audited one-third of the budget and found more than 200 billion in duplicative programs. Let’s audit the entire budget and cut those duplicative programs.”
Jon Golnik has been speaking about these issues on the campaign trail and in the coming weeks will be releasing a full comprehensive plan to address the needs of the struggling economy.
For more information on Jon Golnik, check out his website at www.jongolnik.com.
Paid for by the People for Jon Golnik