It is the tradition of this House to annually extend certain tax relief items; everything from a Research and Development tax credit, to incentives for the manufacture, purchase and use of alternative fuels to credits that help offset out-of-pocket expenses teachers incur buying materials for their classrooms. I helped write many of these provisions and if the bill before us was truly a “tax extenders” bill I would be voting for it as I have in previous years.
However, Democrats seemingly have never met a tax cut they like. And, thus, the Democrats turned tax extenders into tax extenders and tax RAISERS. I want each of my colleagues to think about that for a minute – the bill before us proposes permanent tax increase and just one-year of tax relief.
Unemployment is at 10 percent. Nearly 3 million Americans have lost their job since the start of the year. The economy is continuing to hemorrhage thousands of jobs every month. Small businesses continue to struggle as credit markets remain tight.
And, this bill proposes to raise taxes on economic investment. Just yesterday the President called for a Stimulus II package to help small businesses and help start job creation. Part of that was to cut capital gains taxes on investments in small businesses, showing he understands the importance of capital to growing businesses and creating jobs. By contrast, this bill changes how carried-interest has been treated for decades and it is nothing short of a new tax on the very investments needed to start a new business and create economic growth in this country.
So, while Democrats claim they want to stimulate growth, they are actually increasing taxes in a way that will discourage job creation. And, they left more than two-dozen expiring tax relief provisions out of the bill, including the biggest of them all, the AMT patch. So, in addition to the tax increases within this bill, there are by omission close to 30 tax increases the Americans will face next year because of this bill’s shortcomings – including higher taxes for small businesses and approximately $2,600 in higher taxes for millions of middle class families.
While some of those omissions might be justified, I am disappointed that, once again, the Ways and Means Committee, held neither a hearing nor a mark-up to consider legislation within our jurisdiction.
Given the disconnect between House Democrats’ rhetoric on jobs and their votes for tax increases, it is no wonder employers are confused, new investments aren’t being made and unemployment remains so high.
I support tax extenders and that is what we should pass today; not this tax increasing, job-killing bill before us.