Congressman Tom Reed voted this evening in favor of extending the current tax rates for all Americans. The vote prevents a scheduled tax increase on 940,000 small businesses on January 1, 2013. It also prevents an increase in all tax rate brackets, including the lowest tax bracket which would increase from 10 percent to 15 percent on New Year's Day.
The legislation passed today by the House also means that families with children will save an average of $1,028 in taxes each year by keeping the child tax credit at $1000. The credit is scheduled to be reduced to $500 at year's end.
"The bottom line is clear," Reed said. "The tax increases proposed by the President and the Senate will mean fewer jobs as they impact 940,000 small businesses -- that is more than 2,000 businesses per Congressional District. Can we afford to have 2,000 businesses in the Southern Tier and Finger Lakes cut jobs?" In a June survey by the National Federation of Independent Businesses, small businesses cited taxes above poor sales as the single most important problem they are facing today.
The looming tax hikes also hit hardest at the lower end of the tax bracket. "The poorest earners among us will see the biggest rate increase," Reed said. "I don't support tax increases for any Americans, let alone our small business job creators and working families."