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Newsletter from April 22, 2012: Update from Washington


Location: Unknown

Dear Friends,

Thank you, as always, for taking a look at my newsletter. The House came back into session after Members of Congress spent two weeks back in their home districts, and two very different visions were once again presented to the American people when Congress considered tax legislation.

President Obama, and Senate Democrats held a vote on the "Buffett Rule". While it was nice to see the Senate actually do something, it's disappointing that they chose to hold a vote on an absurd gimmick like the "Buffett Rule". President Obama knew that this attempt to raise taxes never had a chance at passage, but he pushed it anyway in order to promote the class warfare theme that is defining his campaign for reelection.

The "Buffett Rule" would have virtually no effect on bringing down the deficit. The President claims it will promote tax fairness by forcing the wealthy to pay their "fair share". The trouble with this logic is that the group of taxpayers it targets already pays by far the highest proportion of their income to taxes than any other group. Furthermore, the tax would hit small businesspeople hard. This is simply bad policy, being pushed forward through divisive rhetoric.

House Republicans on the other hand pushed forward a small business tax cut this week that would allow our nation's small businesspeople to deduct 20% from their taxes over the next year. Small business is the primary force behind job creation in Arizona and around the country. There are more than 101,000 small businesses in Arizona alone, employing nearly a million people. This legislation is designed to remove a major impediment to job creation: the high taxes that businesses must give to government, rather than investing in their expansion.

Government has expanded greatly over the last few years, while small businesses have contracted. Unfortunately that's exactly what we should be expected when we saddle businesses with so many taxes and so much red tape.

I believe this small business tax cut will boost job creation, and I hope it puts us on a path toward more fundamental reform of corporate taxes. The U.S. recently achieved the dubious distinction of taxing its businesses at a higher rate than any nation in the industrialized world. That's not good for businesses or workers.

Thanks for reading, and check below for some other news, and information about upcoming events.


Rep. Ben Quayle

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