Straight Talk: Stop the Tax Hike on Small Firms

Statement

Dear Friends,

President Obama said it well in 2009: You don't raise taxes in a recession. He was right; at least, back then. In 2012, President Obama and the Democrat leadership are openly advocating a tax hike on nearly a million small business owners, despite the economy. Today's announcement that July unemployment increased to 8.3 percent underscores the importance of stopping this misguided tax hike on our job creators. Now at 42 straight months of at least 8 percent unemployment, we must remember nearly 13 million people are in need of paychecks. For every job available, 3.5 people are competing for it.

The House of Representatives voted on Wednesday to stop the tax hike. Our nation is experiencing a recession-like economy right now, and the basic economic principle that you don't raise taxes in a recession definitely applies. Just one week ago, the Commerce Department announced the economy (the nation's GDP) grew by a sluggish 1.5 percent in the second quarter. In 2010, President Obama joined Republicans to stop tax hikes when that same statistic was a much better 3.5 percent. We have heard no reasonable explanation from the President for abandoning the wise economic principle that you don't raise taxes in an economy like this.

The House vote to stop the tax hike is an important step, but the Senate must join us in taking action. The nation has an unemployment crisis. Raising taxes on 940,000 small businesses -- proven job creators -- is bound to make it worse.

Sam Graves
Chairman

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