Congressman Leonard Lance (NJ-07) today voted to extend through 2013 tax relief for all federal taxpayers enacted in 2001, 2003 and 2010 that is scheduled to expire Dec. 31. The bill passed the U.S. House today by a bipartisan vote of 256-172.
"Over the past several months I have met with our state job creators and heard a very loud message: stop the end-of-the-year tax hike," said Lance. "The U.S. House today has acted in a bipartisan fashion to extend the current tax rates for all Americans and provide certainty, job growth and economic prosperity to get our economy growing again."
A recent study by the Heritage Foundation shows that New Jersey's taxpayers and small businesses would be hurt disproportionately if the Bush-Obama tax rates were to expire. For example:
· New Jersey residents would see the 2nd highest tax increase in the Nation.
· Seventh District residents will see the 3rd highest tax increase in the state.
· The Seventh District ranks 22nd nationally for those states hardest hit by the expiring tax cuts.
Top accounting firm Ernst & Young recently released a study commissioned by the National Federation of Independent Business showing more than 20,000 New Jersey jobs could be lost should the tax cuts expire.
And James W. Hughes, dean of Rutgers University's Bloustein School of Planning and Public Policy, said recently that high earners in the Garden State will see their tax burden increase disproportionately compared to the rest of the country, taking more consumer buying power out of the state and hurting New Jersey's economy.
"Study after study shows raising taxes will disproportionately affect New Jersey's small businesses, taxpayers, investors and working families at a time when our state economy can least afford it," added Lance.
The U.S. House tomorrow will vote on a companion measure calling on Congress to act on comprehensive tax reform next yearthat will strengthen our economy and make our broken tax code simpler and fairer.
"Rather than higher taxes as proposed by President Obama and many congressional Democrats, we need to extend current tax rates for one year and then shift our focus to fundamental tax code reform that closes loopholes and carve-outs, lowers individual and corporate tax rates and makes the tax code simpler and less burdensome while making U.S. companies more competitive internationally," concluded the Seventh District Congressman.