Lawmaker Supports Extending Existing Tax Rates to Grow Economy and Create Jobs
Congressman Chris Lee (NY-26) today voted to stop a massive tax increase scheduled to hit Western New York families and small businesses at the end of this year. Passage of tonight's bipartisan legislation extends the current tax rates for an additional two years, providing Western New York families and small businesses with a needed level of certainty.
"Raising taxes on anyone at a time when unemployment remains near 10 percent is the wrong approach at the absolute wrong time," Lee said. "Allowing Western New York families to keep more of their hard earned money and enabling small businesses to invest in themselves is a proven recipe for strengthening our economy and creating jobs. By passing this legislation tonight, we ensure that families can balance their budgets and small businesses once again know what their expenses will be so they can invest in our economy."
Lee highlighted a recent Wall Street Journal article which stated that nearly $2 trillion in cash and liquid assets are being held on the sidelines by businesses across the country, as they are unsure of what action Washington will take, further adding to the stagnation of our economy and slow job growth.
In addition to stopping the massive tax hikes scheduled to hit middle-class families, seniors, and small businesses, the bipartisan legislation ensures that Western New York's family farms will not be hit with a 55 percent death tax. The bill also includes a one-year reduction of the Social Security payroll tax and extends several other key tax provisions, such as protection from the AMT (which shields middle-class families from added taxes), marriage penalty relief, the child tax credit, lower capital gains and dividend tax rates for those saving for college or retirement, and reinstates the R&D tax credit, which Lee has been championing.
As a former manufacturer, Lee understands the how significant the R&D credit is to allowing a businesses to plan for both short- and long-term investments to grow and create jobs. Lee authored an op-ed calling for an extension to this vital incentive just a few weeks ago.
"While certainly not perfect, this bipartisan legislation will go a long way towards strengthening our economy and getting more of the hard-working men and women in our communities back to work," Lee added. "I urge the president to quickly sign this bill to ensure that Western New York families and small businesses will be able to keep of more what they earn and help grow our economy."
If this passage is not signed into law by the president before the end of this year, income tax rates for middle-class families will rise across the board.