In Visits with 7th District Small Businesses, Meehan Works to "Stop the Tax Hike"

Press Release

U.S. Rep. Patrick Meehan (PA-07) today visited several small businesses throughout the 7th district to discuss how tax increases slated to take effect in January would harm their business and stifle job creation as part of "Stop the Tax Hike Day." All across the country, other Members of Congress participated in small business visits throughout their districts.

"What I heard today, and what I've heard for many months, is that small businesses need Congress to stop the tax hike," Meehan said. "These small businesses and their workers are the backbone of our economy. If Congress does not act they'll face tax hikes that independent analysts say will cost 30,000 jobs in Pennsylvania. Next week Congress will vote to stop the tax hike on Pennsylvania small businesses and middle-class families."

"President Obama was right when he extended all the tax rates in 2010, saying at the time it was a "good deal for the American people.' I also agree with President Clinton's comment in June that stopping the coming tax hikes is "probably the best thing to do right now.' That will allow Congress to focus next year on tax reform without harming our economy or hurting middle-class families with massive tax increases. I appreciate the opportunity to listen to the concerns of local job creators who best explain how the tax hike hurts their ability to compete and to grow," Meehan continued.

Meehan began his day in Montgomery County at Inteprod located in Eagleville. Inteprod is a full-service provider of comprehensive engineering and manufacturing services in the medical device, medical diagnostics, and food safety diagnostics industries.

"We are a small business with 17 full time employees and we pay our taxes at the household level," said Suzanne Smethers, President of Inteprod. "The upcoming tax increases means less income to reinvest into the business, less ability to grow and hire. As we are already struggling to survive in this economy, any increases will only make our recovery more difficult."

Meehan then traveled to Edward Powell Pump and Well Drilling, located in Aston in Delaware County. This family owned small business specializes in well drilling for drinking water and geothermal applications. It has 25 employees and works throughout Delaware and Chester counties.

"We've been fortunate to see a recent growth in business through our geothermal well drilling, and have been able to expand," said David Powell, President of Edward Powell Pump and Well Drilling. "However, any tax increase at the individual level would harm the further growth of our company. Congress should be helping businesses like ours grow and hire more workers, not standing in the way or making it harder."

Later in Chester County, Meehan visited Chadds Ford Tree Service - a full scale arborist and agriculture service.

"As a sole-proprietorship, the upcoming tax hikes would hurt us," said Rob King, President of Chadds Ford Tree Service. "An increase in our taxes would significantly affect our ability to do business or grow our business."

While in Chester County, Meehan also visited The Gables at Chadds Ford. The Gables is owned by Ann and Dan Kolenick, who purchased the restaurant in 2011.

"As a small restaurant, we are concerned about excessive government regulations and higher taxes that are hurting our business growth," said Ann Kolenick, co-owner of The Gables at Chadds Ford. "We appreciated the opportunity to talk with Congressman Meehan about the issues affecting small businesses like ours."

In December 2010, President Obama signed into law a bill to extend the existing individual tax rates for two years. Had the President not signed this law, on January 1, 2011, tax rates at every income bracket would be increased and the increased child tax credit and the enhanced Earned Income Tax Credit would have vanished. The nation faces the same threat of massive tax hikes on middle class families and small businesses on January 1, 2013.

According to the National Federation of Independent Businesses (NFIB), 75 percent of small businesses pay their taxes through the individual code, meaning the proposed tax increases would hurt these small businesses and their ability to grow and create jobs. A report issued recentlyby the independent accounting firm Ernst & Young found that the proposal to raise taxes will hurt the economy and cost more than 700,000 American jobs -- including 30,000 in Pennsylvania.

The House is expected to vote on two tax related bills next week to stop the looming tax hike on small businesses and lay the groundwork for a simpler, fairer tax code that closes loopholes to help generate economic growth, job creation and revenue.

"Higher taxes to fuel more deficit spending is not the answer," Meehan said. "Instead we should stop the coming tax hike on the middle class and small businesses, and continue working to cut Washington red-tape and help job creators and entrepreneurs thrive again."

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