At the beginning of next year, American families will face an unprecedented tax increase affecting how much money they bring home, investment income and even the medical devices which so many rely on for better quality of life. The impending tax increases, known as Taxmageddon, will inflict damage across all sectors of the economy, hurting individuals, small businesses and manufacturers alike.
Some of the concrete examples of how Taxmageddon will affect us are:
South Carolinians are staring at the specter of an average tax increase of $2,796.
In the First District alone, we'll see an increase of on average $3,705.
Nationwide people in the lowest bracket will see their tax burden increase by 50 percent.
The child tax credit, which stands at $1000 today, will lower to $500 starting next year.
Additionally, small businesses across the country that file as individuals, which are the majority of small businesses, are looking at an increase of up to 13 percent. That's 13 percent less they can use to create jobs, expand and innovate.
Also, the current top-level dividend tax rate is 15 percent. If nothing is done, that will increase to 43.4 percent. Maintaining a low dividend rate is a benefit for Americans of all ages and income levels. Those affected by this tax increase are oldest and most middle income Americans:
63 percent of dividend returns are from taxpayers age 50 and older
32 percent of dividend returns are from taxpayers age 65 and older
68 percent of dividend returns are from returns with incomes less than $100,000
40 percent of dividend returns are from returns with incomes less than $50,000
And these don't even take into account the taxes raised by the President's health care reform, which will be to the tune of more than $800 billion.
To combat these job-crushing tax increases that will touch basically every American family, the House has already voted to repeal the President's health care plan and will at the end of this month vote to ensure taxes are not raised on anyone. Raising taxes is not the answer -- cutting spending is the answer.
In short, I am committed stopping the tax hike and preventing taxmageddon, because American families and job creators simply can't afford it.