Dr. Dan Benishek (MI-01) today again called for a full extension of current tax rates after a recent economic study from Ernst & Young suggested that over 700,000 jobs will be lost nationwide if President Barack Obama's plan to increase tax rates on small business owners is enacted.
"Keeping taxes low for our job-providers is essential to help Northern Michigan's economy grow. This report illustrates what will happen if President Obama's job-killing tax plan is enacted and our small businesses are hit with a massive tax hike next year. I have visited business owners all over the First District and they are telling me that President Obama's higher taxes will hurt their companies and force them to lay off employees," said Benishek, a doctor from Iron River and lifelong resident of Michigan's Upper Peninsula.
The recent report from Ernst & Young, analyzing the long term economic impact of President Obama's plan to raise taxes on job providers, suggests that up to 710,000 jobs will be lost nationwide if the plan is adopted. The report indicates that Michigan will lose as many as 21,300 jobs and reduce overall economic output in the state by $5.2 billion.
"The President has said he thinks the private sector is "doing fine,' but it's not, and it will get even worse if he raise taxes on our small businesses. As a doctor who ran a small business, I strongly support extending all of the current tax rates to provide some economic certainty to our job creators and allow them to keep more of their own money," added Benishek.
Unless action is taken by the President and Congress, the current tax rates put in place in 2001 and 2003 will expire on January 1, 2013.