U.S. Sen. David Vitter today opposed legislation that would have not only increased taxes on small business owners and job creators, but also would have increased the death tax, impacting Louisiana farmers and other small businesses like seafood producers.
"This vote on the Democrats' tax increase represents vastly different approaches to small business. Almost all Republicans and one Democrat said we shouldn't raise taxes on them, particularly in this horrible economy. 51 Democrats including Mary voted to raise hundreds of billions of dollars of taxes on them -- not only because 75 percent of all small businesses pay taxes through the individual rates, but because the death tax on family businesses would go up enormously," Vitter said.
Vitter supported the alternative bill which would have kept tax rates at their current level for one year. The bill he opposed increases taxes for individuals who earn $200,000 ($250,000 per couple) and includes huge increases to the death tax, bringing the current number of family estates getting taxed from 3600 to 55,200. It also increased the number of farms that will be hit by 24 times and the number of small businesses by 13 times.
An Ernst and Young study done for the National Federation of Independent Businesses shows that the tax increase legislation would reduce economic activity in Louisiana by 3.3 billion dollars and will cost the state 10,200 jobs -- 710,000 nationwide.