U.S. Rep. Steven C. LaTourette (R-OH) today voted against H.R. 4853, which extends some of the Bush-era tax cuts but raises taxes for others, saying it will harm Ohio small businesses.
"To raise taxes at a time when the economy continues to struggle and people are out of work is nuts. To treat some American taxpayers differently than others is nuttier," LaTourette said. "I was greatly encouraged the President was willing to negotiate with both parties on taxes and greatly discouraged that Speaker Pelosi had to lob a dead-end stink bomb on the House Floor that gums up the process."
The bill, if it became law, could mean a tax hike for 123,000 small businesses in Ohio that file taxes as subchapter S corporations, meaning business and personal income are combined for tax purposes. LaTourette said this can create the misperception that the small business owner is wealthy because the business income and owner's income are lumped together.
The bill passed by a vote of 234-188, but LaTourette said the Senate is not expected to consider it. Current tax rates expire at the end of the month. If Congress fails to act on the issue, all Americans who pay taxes will see their taxes rise next year, LaTourette said.
LaTourette said he hopes negotiations regarding tax cut extensions continue, saying businesses across the country are reluctant to hire, invest or expand due to uncertainty about the future of current tax rates.