U.S. Representative Judy Biggert (R-IL-13) today joined the Aurora Regional Chamber of Commerce and local business leaders for a roundtable discussion on the potential impact of automatic tax hikes on jobs and growth in suburban Chicago. Hosted at the Aurora-based Alarm Detection Systems, Inc., the roundtable was attended by representatives from Valley Fastener Group, LLC; Caterpillar Inc.; BMO Harris Bank; S & S Metal Recyclers II, and others. At issue was the scheduled expiration of the 2001 and 2003 tax cuts on January 1, 2013. As a result, families and business owners face a return of the marriage penalty, the AMT, and higher rates on income, capital gains, dividends, and estates.
"Many small businesses are struggling to stay afloat, and raising taxes during this fragile recovery would be the worst thing to do," said Biggert. "An independent study estimated that the Administration's small business tax hike would cost our economy more than 700,000 jobs. Illinois employers already face so many government barriers -- the last thing they need are more burdens from Washington."
The event was held in conjunction with "Stop the Tax Hike Day" during which Members of Congress across the country visited local workplaces to gather input ahead of a scheduled House vote next week to stop all of the January 1st tax hikes. Earlier this week, the Senate voted on a party line to allow automatic tax increases on families and small businesses earning more than $250,000.
During the event, Biggert also discussed her vote this week for the Red Tape Reduction and Small Business Job Creation Act, H.R. 4078, which passed in the House. The bill would place a halt on new regulations that are expected to impose major costs on the private sector.
"A tax increase of any kind will have a devastating effect on the economic recovery," said Chris Beykirch, Business Development Director at Alarm Detection Systems, Inc. "We applaud Rep. Biggert for fighting to extend the tax cuts and protect businesses like ours."
"The economic uncertainty facing employers creates a deep sense of hesitation about pursuing growth and opening new positions," said Joseph B. Henning, IOM, ACE, President and CEO of Aurora Regional Chamber of Commerce. "Combined with other factors, these tax increases will create a perfect storm that would ripple through all segments of the economy. "We urge Congress to act quickly in the best interests of our economy to address this crisis."
"I've always said that our small business leaders hold the keys to a robust recovery," said Biggert. "The best solutions are coming from those creating the jobs here in our community, and lawmakers need to listen. I hope the Senate will rethink its misguided tax hike on businesses and join us in sending the President legislation to defuse this ticking tax bomb."