TRI-CITY RECORD: Massive Tax Hike Looms for Michigan Families, Small Businesses
Aug 2, 2012 -
By Rep. Fred Upton
Today we stand at the edge of an economic cliff and the policy decisions made in the near term will determine whether we plummet back into recession or opt for a path to future prosperity. While job creators are showing some positive signs, unemployment and underemployment remain much too high here in Michigan and employers continue to face a hostile regulatory climate that breeds further uncertainty.
Job creation and economic growth are our primary goals, and now is the worst possible time to propose raising taxes on already-struggling Michigan families and small businesses. Without congressional action, a massive tax hike will automatically kick in on January 1st, 2013, harming all taxpayers and prolonging our recovery. The ensuing tax hike totals more than $4 trillion over the next decade, equating to a tax increase of nearly $2,200 for a family of four earning $50,000 a year.
But rather than giving small business owners the support they deserve to maintain and create jobs, the President and congressional Democrats are pushing for higher taxes. Such action would have a chilling effect on our recovery and cost hundreds of thousands of jobs in the process. That is simply the wrong direction.
This week the House will vote on legislation – H.R. 8, the Job Protection and Recession Prevention Act – to block the scheduled tax increases from taking effect. Among other things, the package extends current income tax rates for one year, maintains the $1,000 child tax credit, extends marriage penalty relief, and continues the 15 percent top rate on dividends and capital gains, which are important to both young families and retirees.
By providing our job creators and families with this relief now, we set the stage for enacting what our economy desperately needs in the near future: comprehensive, pro-growth tax reform that makes our country more competitive and the current tax code simpler and fairer to all taxpayers.
For 41 consecutive months, the national unemployment rate has been 8 percent or higher – 48 months here in Michigan. With nearly 13 million Americans looking for work – and potentially many more at risk – it is time to extend tax relief for families and employers until comprehensive tax reform can be enacted.