Small business owner Chris Collins today released a letter he has sent to Congresswoman Kathy Hochul asking her to join with him and stand up to President Barack Obama's plan to pass a devastating tax increase which would instantly raise taxes on nearly 1 million small businesses nationwide, including thousands in the 27th Congressional District.
"As someone who has spent a career in the private sector, I have seen firsthand the devastating effects tax increases have on the ability of small businesses to thrive and create good paying jobs for Western New York families. I am one of the countless small business owners who have forgone a salary to meet a payroll, and ensure that their employees can cash a paycheck. That's why I know how crippling any tax increase on small businesses can be," Collins wrote.
"That's also why I am proposing a plan that I hope we can work on together to introduce and pass in Washington to protect middle class families and small businesses while I know you have embraced the President and his policies, I am urging you to break ranks with him just once, and support this plan which actually encourages growth, cuts taxes on middle class families and small businesses, and establishes a forward-looking plan to rebuilding the American economy," Collins continued.
On Wednesday, the House is expected to vote on a one year extension of the 2001 & 2003 middle class and small business tax cuts. Failure to extend the tax cuts would result in a massive tax increase on families and small businesses at the end of 2012.
In addition, the measure includes protecting the Child Tax Credit at its current level and continuing the relief from the Marriage Penalty. Previously, Congresswoman Hochul has stated her opposition to the measure being considered by the House. (Hochul Press Release, July 27, 2012)
The full text of the letter is included below:
July 30, 2012
The Honorable Kathy Hochul
325 Essjay Road
Suite 405
Williamsville, NY 14221
Dear Congresswoman Hochul:
I am writing to you today both as a constituent and a small business owner who employs hundreds of Western New Yorkers, many of whom reside in the 27th Congressional District.
As someone who has spent a career in the private sector, I have seen firsthand the devastating effects tax increases have on the ability of small businesses to thrive and create good paying jobs for Western New York families. I am one of the countless small business owners who have forgone a salary to meet a payroll, and ensure that their employees can cash a paycheck. That's why I know how crippling any tax increase on small businesses can be.
That's also why I am proposing a plan that I hope we can work on together to introduce and pass in Washington to protect middle class families and small businesses.
Unfortunately, our current economic status has stagnated as a result of President Barack Obama's failed economic policies. And while I know you have embraced the President and his policies, I am urging you to break ranks with him just once, and support this plan which actually encourages growth, cuts taxes on middle class families and small businesses, and establishes a forward-looking plan to rebuilding the American economy.
1. Extend the 2001 & 2003 Small Business and Middle-Class Tax Cuts.
First, we must extend the 2001 and 2003 small business and middle class tax cuts that are set to expire at the end of this year. While I know you have not owned, run or managed a small business, I can assure you that any increase in taxes on small businesses would be devastating to the economy. As the Joint Committee on Taxation cited, failure to extend these tax cuts would instantly raise taxes on nearly 1 million small businesses -- including thousands in the 27th Congressional District. It will cost us the very jobs we so desperately need.
In addition, voting against extending these tax cuts would raise taxes on married couples, families with children, and entry-level employees looking to establish themselves and build their careers. Failure to extend these tax cuts would raise taxes on just about everyone -- and that's simply not right.
2. Reduce the small-business and corporate tax rate to 25%
We are the highest taxed nation in the world. Simply put, that means fewer jobs, less growth and a future that grows increasingly less secure. By reducing the top tax rate on small businesses and corporations, we can give companies certainty, jump-start their businesses, and free up critically needed capital for them to reinvest in their facilities, research and development, and human resources. By giving small businesses more after-tax income, we will see a new investment in our crippled economy.
3. Consolidate Tax Brackets and Create a Smarter, Simpler Tax Code
The American tax system is cumbersome, complicated and confusing. Small businesses would exponentially benefit from a smarter, simpler tax code. One of the first things we can do is consolidate the current 6 tax brackets into three tax brackets, none of which tax individuals and small businesses at a rate higher than 25%, This would free entrepreneurs and owners to focus on growing their businesses and serving customers, not worrying about the IRS and whether they filled out every bureaucratic form correctly.
4. Eliminate the Death and Alternative Minimum Tax
Hidden taxes like the AMT and the death tax are part of the reason why our economy is stalling and cannot grow. By double-taxing family farms and small businesses when they are passed from generation to generation, we are penalizing success. And, by keeping in place the AMT, we are imposing stealth taxes on middle class families, who know how to spend their money better than the government. By eliminating these taxes, we can free up capital and equip a new generation of entrepreneurs and dreamers to build a better future for themselves and their families.
I realize that we are locked in an aggressive battle for the 27th Congressional district. But once in awhile, politics must take a backseat to fixing the future of our country. I hope you will join me and sponsor this plan in Congress to get our economy moving again. I look forward to working with you on this.
Sincerely,
CHRIS COLLINS
Small Business Owner