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Public Statements

Democrats' 2011 Tax Hikes to Strike Small Businesses & Working Families


Location: Washington, DC

Rep. Howard P. "Buck" McKeon (R-CA) issued the following statement to highlight the intention of the Obama Administration and Speaker Nancy Pelosi to direct the largest tax increase in U.S. history on families and small businesses starting on January 1, 2011.

"The Majority has been running up historic levels of spending and national debt, and to pay for it, is primed to raise taxes on hardworking American families and small businesses. The Democrats' tax increases will mean higher taxes for married couples and anyone paying income taxes, in addition to new, stricter mandates and increases on small business owners.

"Small businesses account for the greatest number of jobs in America, and yet, they are taking the brunt of Democrats' overspending and government expansion. The Majority's flawed policies are stifling economic growth and job creation and will ultimately keep America in a recession. What we need are lower taxes to promote increased spending and growth driven by the private-sector. With all the new mandates and taxes, businesses and workers are waiting anxiously to see what happens next."

The lead Republican for the Ways and Means Committee, Rep. Dave Camp (R-MI), recently released new information from Congress' non-partisan tax analysts showing that the Democrats' looming tax hikes will cost millions of American taxpayers thousands of dollars in additional taxes next year.

The Joint Committee on Taxation confirmed that if the tax hikes go into effect as scheduled on January 1, 2011:

* 31 million families will pay an average of $1,033 in higher taxes next year due to a reduction in the child tax credit from $1,000 to $500;
* 35 million married couples will pay an average of $595 in higher taxes next year due to a reinstatement of the marriage penalty; and
* 88 million taxpayers will pay an average of $503 in higher taxes next year due to the elimination of the 10% tax bracket (meaning the first dollar of taxable income will instead be subject to the 15% tax rate).

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