Senator Dan Coats (R-Ind.), a member of the Joint Economic Committee, today supported a proposal introduced by Senate Minority Leader Mitch McConnell (R-Ky.) and Senator Orrin Hatch (R-Utah) that would extend current tax rates for one year and put in place measures that would force Congress to begin work on reforming our nation's outdated tax system.
Coats voted against legislation introduced by Senate Democrats that would raise taxes on all Americans making at least $250,000 a year, a plan that would hurt nearly one million small business owners.
"Raising taxes on job creators in the middle of a recession will devastate our economy and hurt millions of American workers in all income brackets," Coats said. "Rather than focus on ways to protect taxpayers, the Democrats put forward a misguided plan that will slash jobs, cut wages and do nothing to generate economic growth. This is a purely political proposal intended to deflect attention away from the high unemployment and job losses that have defined the past three and half years. I continue to believe that one of the best ways to grow the economy and bring relief to hardworking taxpayers is comprehensive tax reform."
An Ernst & Young report released last week found the Democrat proposal would eliminate more than 700,000 jobs, shrink the economy by 1.3 percent, reduce investment by 2.4 percent and cut wages by nearly 2 percent. According to the report, Indiana would lose 15,400 jobs and $3.7 billion in economic output.
The Senate Democrat plan also would raise the death tax to 55 percent on all estates with over $1 million in assets beginning in January 2013. According to the Joint Committee on Taxation, the Democrats' death tax hike will hit 24 times more farms and 13 times more small businesses.
"It is wrong to tell farmers and business owners that after a lifetime of hard work and savings they must give over half of their estate to Uncle Sam instead of to their children," Coats said. "This proposal will put thousands of Hoosier farmers and job creators out of business."