Today Rep. Calvert (R-CA) voted against the so-called "Middle Class Tax Relief Act" (H.R. 4853), and opposed Speaker Pelosi (D-CA) and her cohorts for stifling job growth, attacking businesses and playing class politics. H.R. 4853 passed the House by a vote of 234 to 188, despite opposition from Republicans and 20 Democrats.
"With national unemployment remaining near 10 percent, and approaching 16 percent in the Inland Empire, and with the economy continuing to struggle, now is the worst possible time for a tax increase on any American," said Rep. Calvert. "Raising taxes on the very people who create jobs will only result in more unemployment and, ironically, less government revenue.
"Rather than instituting a punitive tax increase Congress must create an environment where job growth can flourish. A tax hike on business owners will do just the opposite," said Rep. Calvert. "This bill hurts small businesses, and plays class politics, pitting business owners against the so-called "middle class.' Unfortunately, H.R. 4853 continues the failed policies of the Pelosi Congress that the American people flat out rejected exactly one month ago."
An increase in the top marginal tax rate, taxes on capital gains and dividends will negatively impact businesses seeking to expand, hire and invest. An estimated 750,000 small businesses will be hit with a massive tax increase on January 1, 2011 if a tax extension is not provided for all Americans.
If enacted, H.R. 4853 would significantly impact income paying seniors who rely on capital gains and dividend income as a means for support. Additionally, this bill does nothing to protect Americans from the devastating effects of the death tax, which forces an additional tax of up to 55 percent on the property of the deceased.