U.S. Rep. Ed Whitfield, (KY-01), Chairman of the House Subcommittee on Energy and Power, today voted in support of H.R. 8, the Job Protection and Recession Prevention Act of 2012, a bill that will extend the current tax rates for all Americans.
"After 41 consecutive months of nationwide unemployment at or above 8 percent, we should not increase taxes on any American, especially small business owners trying to create jobs," Whitfield said. "For our economy to get back on track, and for this great nation to thrive, we must provide families and businesses certainty that they will not be hit with a massive tax increase at the beginning of next year. I have always, and still believe that Washington has a spending problem, not a revenue problem. We need to look for ways to cut spending, not raise taxes as President Obama would like us to do."
Since the House of Representatives passed this bill, the Senate must take up and pass H.R 8, and President Obama must sign it, or millions of Americans will face an increase in their taxes. For example, if the Senate does not act:
Personal income tax on all wage earners will increase by 3-5%, including those Small Business Owners who file as individual business.
Capital Gains tax rates will increase from 15% to 23.8%
Dividend tax rates will increase from 15% to as much as 45%
Estate Taxes will increase from 35% to 55%, and the exemption will decrease from $5 million to $1 million
Marriage Penalty relief will expire and the average couple will pay $600 more per year in taxes
Adoption credits would be lost (today there is a $10,000 exemption for those families who are adopting children), and the
Child Tax Credit will be reduced from $1,000 to $500, costing every American family with children more in taxes.