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Pete’s Perspective on Taxes in the House Budget
Washington,
Apr 9 -
Last week, the House set the table for the largest tax increase in history by passing the budget for 2010. I opposed it because the U.S. economy cannot afford crippling tax increases on working families and small businesses compiled with record deficit spending.
As the country lies in the midst of a recession, it would only be prolonged by harmful tax increases that fund ineffective Washington programs and stifles entrepreneurship.
Tucked in the budget are several initiatives and assumptions to increase taxes by $1.4 trillion over the next 10 years. The budget would resurrect the Death Tax, impose taxes on the American oil industry and allow a new tax on charitable giving.
Markedly, the budget will increase income taxes, harming many small businesses that pay taxes at the top two individual rates. Small businesses make up 98.5 percent of all employers in the state of Michigan and create 60 to 80 percent of all new jobs in America.
The budget would also assume President Obama’s signature Making Work Pay Tax Credit would not be allowed to continue and eliminates the patches enacted to prevent the Alternative Minimum Tax from impacting middle-class families.
I voted for an alternative budget that along with reducing the deficit would simplify the tax code and decrease rates, reducing the burden on families. For instance, married couples making less than $100,000 would be taxed at 10 percent. It would also decrease the corporate tax rate from 35 percent to 25 percent, increasing the competitiveness of businesses and creating more jobs at home.
As Congress continues the budget process over the weeks ahead, I will continue to advocate for solutions that fund necessary programs, does not burden future generation with unmanageable debt and promotes job growth.
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