Congressman Larry Bucshon (IN-08) released the following statement following the passage of H.R. 8, the Job Protection and Recession Prevention Act. The legislation passed by a bipartisan vote of 256-171. The legislation would extend the current income tax rates for one year.
Congressman Bucshon (IN-08) states:
"Extending the current tax rates for an addition year will stop the tax hike every American faces and will provide the certainty necessary to small businesses and families during these tough economic times. Hardworking taxpayers cannot afford to send any more of their hard earned income to Washington, D.C. just to be wasted on trillion dollar deficits; job creators cannot bear the burden of the Obama administration's tax and spend policies. Failing to extend the tax code at current rates will put our nation at risk for another recession and will cause more than 700,000 Americans to lose their jobs.
"Additionally, the extension will allow Congress to begin working on comprehensive tax reform that will make the tax code simpler and fairer providing every American the opportunity to earn success. The current tax code is complicated, has too many loopholes, and fails to provide incentives for innovation."
A recent report released by the accounting firm Ernst & Young finds that letting the tax cuts expire will cost more than 710,000 American jobs.
According to the National Federation of Independent Business (NFIB), "75 percent of small businesses are organized as pass-through entities meaning they pay taxes on their business income at the individual rate."
The Joint Committee on Taxation (JCT) estimates the tax hike would hit about 940,000 small businesses.
Treasury Secretary Timothy Geithner said the following statement in regards to extending the 2001 and 2003 tax cuts in their entirety, "This legislation is good for growth, good for jobs, good for working and middle class families, and good for businesses looking to invest and expand their work force." (Fox News, 12/17/10)
Vice President Joe Biden described the current economic climate as a depression in June 2012. "It's a depression for millions and millions of Americans." (Vice President Biden, Remarks During A Campaign Event, Dubuque, IA, 6/27/12)
In the five years following the 2003 tax cuts, revenue collected by the federal government went up by more than $700 billion and the deficit went down. In contrast, over the past five years, the federal government has increased spending by 39 percent while tax rates have remained constant.