With an unemployment rate expected to remain stuck above 8 percent, August 2012 will likely mark yet another month of the worst economic recovery since the Great Depression. At this point after the previous five recessions, economic growth averaged 4.4 percent, or double the current rate of recovery.
We are faced with an economy which desperately wants to recover, but is restrained by uncertainty from Washington and the failure of a Senate which refuses to act, and a president who fails to lead.
This latest report clearly indicates our economic recovery cannot handle additional strain.
In August, I voted to extend for all American families the tax rates established by the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003.
I agree with President Clinton — I do not believe that it makes economic sense to raise taxes on anyone during the type of down economy in which we find ourselves. A range of studies have been conducted by financial firms, policy analysts and think tanks to determine the economic cost of failure to extend the 2001 and 2003 tax rates — the conclusions are alarming.
One report states that as a result of the expiration of the 2001 and 2003 tax cuts and the new taxes being imposed through administration policies, the average family in Pennsylvania’s 8th Congressional District can expect to pay nearly $4,500 more in taxes in 2013.
These tax hikes, left unchanged, will drain over $20.5 billion from Pennsylvania’s economy at a time of anemic economic growth and discouraging jobs numbers.
The non-partisan Congressional Budget Office in a May 2012 report expressed concerns that immediate tax increases would represent an added drag on the weak economic expansion.
A July report by Ernst & Young analysts cautioned that “higher marginal tax rates will result in a small economy, fewer jobs, less investment and lower wages. Specifically … higher taxes will have significant adverse economic effects in the long-run: lowering output, employment, investment, the capital stock, and real-after tax wages when the resulting revenue is used to finance additional government spending.”
The report also warns that reduced work effort and labor force participation resulting from higher taxes will reduce long-term economic output by more than $200 billion and destroy over 710,000 jobs.
These tax hikes will have such a profound effect on the economy given the prevalence of LLCs and S-Corporations. In these small businesses, business income is taxed at an individual rate, through the owner. This type of organization is common, with the National Association of Manufacturers reporting that nearly 70 percent of its members are operated as an LLC or S-Corporation.
The negative effects of raising taxes on all families and our small-business job creators are clear. Congress must not fail in the task so plainly laid out before it. The House has done its job, the Senate must now act to prevent these economically devastating tax hikes.
Ultimately, however, debates over specific tax rates seem almost irrelevant when high-wealth individuals and corporations are able to employ armies of lobbyists, lawyers, and accountants to manipulate a complicated and broken tax code rife with exemptions and loopholes to avoid paying their fair share.
When corporations like GE manage to pay nothing in corporate income taxes, middle income families and small-business owners have been unfairly forced to pick up the slack.
In the long term, a simpler, fairer and flatter code which encourages, not punishes, success and forces everyone to pay their fair share will help promote investment in our economy and the creation of good, family-sustaining jobs. In the short term, Congress must not raise taxes on the middle class and job creators at a time when we need our economy to recover.
In my visits to 100 businesses in 100 days this summer, the message from job creators has been consistent in term of what Congress should do to put our economy back on the right track. Excessive regulation has been at the top of the list with reforming the tax code and reining in health care costs.
As such, I worked to have the House Financial Services Sub-Committee on Capital Markets mark-up the Fostering Innovation Act (HR 6161), which I authored, aimed at reducing burdensome regulations on emerging job creators. The bill was favorably reported to the full committee.
With the Supreme Court upholding the Affordable Care Act as a tax on middle income families, I have outlined ways to make health care more affordable and accessible without increasing taxes in a bipartisan fashion.
Faced with what has proven to be a summer of uncertainty, the small-business community has struggled with managing the “unknowns” regarding health care, energy prices, regulations, and taxation. It is time to provide them with the certainty they need to grow. This is essential to our economic recovery.
I urge the Senate and the president to join me in providing some certainty to Bucks County job creators by stopping the tax hike looming on Jan. 1.
Congressman Michael Fitzpatrick, serves the 8th District, which comprises all of Bucks County and small parts of Montgomery County and Philadelphia.
Argumentum posted at 8:54 am on Mon, Sep 10, 2012.
Greetings, McFilline: here's a Fitz lie, from his Guest Opinion above: "Supreme Court upholding the Affordable Care Act as a tax on middle income families."
mcfilline posted at 12:44 pm on Sat, Sep 8, 2012.
Whitey -
First of all I don't care what Fitz did when he wasn't a congressman. Second, the dems were in control of Congress two years prior to the financial meltdown. They were too busy getting sweet heart deals from Countrywide to pay attention. Barney Frank stated "All is well" Guess what ...it wasn't. Chris Dodd was facing possible corruption and ethic charges and decided not to seek re-election.
I'm not saying that they were the only ones at fault but to read your post you would think that there were no Dems in Congress at the time.
SEC should have been more vigilant...congressmen and bankers and executives should have been brought up on charges. But weren't. The same thing is happening again with John Corzine and his "magical " company. But NO CHARGES.
mcfilline posted at 12:33 pm on Sat, Sep 8, 2012.
White - you care claiming that Fitz is a liar. OK....state where his facts are incorrect. I'll be watching.
thinkingoutloud posted at 9:42 am on Fri, Sep 7, 2012.
Broadcasters in Ohio are also reporting Rove's Crossroads and Koch Bros. AFP cutting advertising spending in Ohio. They didn't get rich betting on losing horses. Maybe the fix isn't it after all. Voter suppression efforts are losing in the courts in Ohio.
dwhite posted at 8:26 pm on Thu, Sep 6, 2012.
Willard has pulled all advertising from Pa. He is conceding the state. Give it up fitz.
no party affiliation posted at 7:42 pm on Thu, Sep 6, 2012.
They complain about rich folks and their money, yet they buy Windows software. They cry and cry about Romney having money, yet they shopped at Staples. They despise Steve jobs, while typing on a MAC and tweeting on their Iphones. They say rich people should pay more taxes and create more jobs, yet have $40,000 a plate dinners with George Clooney. The claims Unions aren't greedy, yet sports athletes make more money than most CEO's.
They lie like rugs.
ciresej posted at 7:39 pm on Thu, Sep 6, 2012.
Bluestar,
Today's job report from ADP had very little to do the stock market rally (and subsequent sell-off in US Treaurys). The news that moved markets came from Europe. The ECB announced a bond buying program that they hope will help lift market confidence of the euro-zone countries that are having trouble. Countries like Spain and Italy (Greece doesn't matter anymore). But Spain and Italy are large enough to be a real problem for the global economy should they continue to have issues financing their debt needs.
That is why the ECB is doing all it can to keep the game going. We've seen this movie before. The markets will look at the details of this latest announcement and decide if its enough. If its not, watch out for the risk off trade to return.
dwhite posted at 6:17 pm on Thu, Sep 6, 2012.
Yea how bout we get the county to stop raising our taxes. They built a 100 million dollar castle in middle of a depression and now they are out of money. People will lose their jobs and we will lose services so they can have their castle. Who didn't see this coming?
dwhite posted at 6:14 pm on Thu, Sep 6, 2012.
No party if you are going to stoop to personal attacks then I got no time for you.
Be a man and post your name. Don't be a coward.
dwhite posted at 6:12 pm on Thu, Sep 6, 2012.
That said a lot of good has also gotten done.
Dogman posted at 5:29 pm on Thu, Sep 6, 2012.
Your posts really are quite asinine. Do you know that or do you think you make sense?
Argumentum posted at 4:50 pm on Thu, Sep 6, 2012.
R-Factor lied. Here's the truth, from PolitiFact:
Here’s what we found when we looked at the question of small business tax cuts.
When asked for supporting documents, the DNC press office pointed us to a Feb. 25, 2011, posting on the official White House blog titled "Seventeen Small Business Tax Cuts and Counting." The post enumerated 17 small business tax cuts and credits created or extended through legislation signed by Obama.
Eight of them were included in American Recovery and Reinvestment Act (more commonly known as the economic stimulus bill), the Affordable Care Act (also known as the health care law), and the Hiring Incentives to Restore Employment Act (aka the HIRE Act). Among the cuts were the exclusion of up to 75 percent of capital gains on key small business investments; a tax credit for the cost of health insurance for small business employees and new tax credits for hiring Americans out of work for at least two months.
Another eight cuts came via the Small Business Jobs Act, signed by Obama in September of 2010. These included: adding deductions for business cell phone use; creating a new deduction for health care costs for the self-employed; allowing greater deductions for business start-up expenses; eliminating taxes on all capital gains from key small business investments, and raising the small business expense limit to $500,000.
Three months later, the president signed a tax bill that raised the expense limit to 100 percent of small business new investments until the end of 2011. It also extended the elimination of capital gains taxes for small business investments through the end of 2012.
no party affiliation posted at 4:38 pm on Thu, Sep 6, 2012.
How is it, that you think that YOU and the rest of the liberal loonies here, have the right to tell a a private business where he should create jobs, and where he may put his money?
Can I tell you where you should shop, and where you can put YOUR life savings?
Gee, sounds fair to me.
Dogman posted at 4:08 pm on Thu, Sep 6, 2012.
I think he has a mancrush on Rep. Fitzpatrick. He is quite the handsome lad you know.
thinkingoutloud posted at 3:22 pm on Thu, Sep 6, 2012.
Question Rags? You have almost 1500 posts yet the only subject you post on is Fitzyboy. Could you be him perchance or are just one of his wags?
thinkingoutloud posted at 3:19 pm on Thu, Sep 6, 2012.
So let's see the research. We saw what you guys called Murphy in 2010. At least ours speak to their identifying characteristics.
Rags2Rags posted at 3:02 pm on Thu, Sep 6, 2012.
Actually the jobs market has done significantly better once the Republican gained control of the House. Wait until they gain control of the White House and Senate...Then you will see the market take off.
Doing research may be boring, but it sure does make you look better than just calling people childish names.
Rags2Rags posted at 3:00 pm on Thu, Sep 6, 2012.
My post seems to have disappeared...If I'm double posting I apologize...
Congressman Fitzpatrick is too far right for the far left...
Congressman Fitzpatrick is too far left for the far right.
Congressman Fitzpatrick is an independent Congressman with an independent record...
Which is just right for Bucks County...
With his hard work and independent voting record...Mike Fitzpatrick has earned my vote.
Quit Whining posted at 2:42 pm on Thu, Sep 6, 2012.
npa: Don't waste your time on ole' not2 Dwhite. Anyone that tries to refute him with facts just send him to the kitchen where he puts a big pot over his head and bangs it with a wooden spoon saying "I can't hear you - I can't hear you..."
thinkingoutloud posted at 2:37 pm on Thu, Sep 6, 2012.
Taxes were at historic lows for eight years and the "job creators" stashed their cash overseas in the Caymans and Switzerland. Where were the jobs created? Not here. Filthy Fitzy and Lyin' Ryan are raiding the middle class to further the interests of the likes of the Koch boys.
Rags2Rags posted at 2:20 pm on Thu, Sep 6, 2012.
no party...You have been paying attention. Good to see...
no party affiliation posted at 1:42 pm on Thu, Sep 6, 2012.
"What specific "burdensome regulations" are you planning on reducing?"
Well. one that concerns my small business is the EPA for one. I am sure YOU and the other liberals here actually recycle your light bulbs like the EPA says, right?
wirehead posted at 12:52 pm on Thu, Sep 6, 2012.
"As such, I worked to have the House Financial Services Sub-Committee on Capital Markets mark-up the Fostering Innovation Act (HR 6161), which I authored, aimed at reducing burdensome regulations on emerging job creators. "
What specific "burdensome regulations" are you planning on reducing?
no party affiliation posted at 12:23 pm on Thu, Sep 6, 2012.
From our local liar Donny White:
"How much of that spending was new spending produced by Obama? That's right very little. We are paying for Bush's wars and RX plan and tax cuts."
Well, let's look at this way then. Bush had to rebuild a military that Clinton slashed. During Bush's term, he had to build new Humvees, new mine sweepers, Drones, and the mars missions and countless other programs......that created jobs. Great paying Union jobs. He built aircraft, he suffered the worst terorist attack in our history, and had to deal with Katrina. But wait....Obummer and Murphy all approved this spending. Remember, Congress holds the check book. Under Bush's last two years and under Obummers first couple, the Dems had control and spending went haywire. You like to say that under Clinton, the economy soared...Hmm.
I think the republicans were in control of the check books then. I will give Clinton credit with he knew how to get people to work together for a common cause. Obama and Pelosi did nothing but divide this country. The simple fact is, that this country is so divided along racial, poltical and gender lines NOW, it may take 10 yrs or so to correct it. Obama is a failure. You NEVER elect someone with no experience. We learned this from Murphy.
I'll ask you again, where did $6 trillion go? We have NOTHING to show for it. And about these 10 gazillion jobs you folks say were created under Pelosi and Obama, what type of jobs are they? They are all low paying, low skill jobs. He blew 1/2 billion on Solyndra. We'll never get that back. He screwed up Fast and Furious, and still won't give the military folks, who have been fighting for years any credit for finding and killing Bin Laden. He makes it sound as if he stepped into office and he alone found Bun Laden, and he alone engineered the mission, and if we weren't watching, he would clame he fired the rounds into Bin Laden. He does nothing but blame everyone else.
BlueStarMom posted at 12:21 pm on Thu, Sep 6, 2012.
Employment in the U.S. nonfarm private business sector increased by 201,000 from July to August, on a seasonally adjusted basis. The estimated gain from June to July was revised up from the initial estimate of 163,000 to 173,000. Employment in the private, service-providing sector expanded 185,000 in August, up from 156,000 in July. Employment in the private, goods-producing sector added 16,000 jobs in August. Manufacturing employment rose 3,000, following an increase of 6,000 in July.
Mr Fitzptrick, the trend is rising, and doing it without your help. We don't need you. We don't want you.
BlueStarMom posted at 12:12 pm on Thu, Sep 6, 2012.
The US Chamber of Commerce is not a government entity, it is a private association, a union, for business. It suppports outsourcing as a "intelligent thing" and demanded passage of the free trade treaties, and the last one in 2005 that Fitzpatrick promised labor he would vote against was losing support in congress until the Chamber sent a letter to legislators telling them to vote for it or lose funding. Fizpatrick voted for it as did all the political liars who betrayed the people in exchange for the money to save their own jobs.
R-Factor posted at 11:54 am on Thu, Sep 6, 2012.
Boockvar and Obama are obsessed with punishing small businessmen and women with HIGHER and higher taxes, more regulations, and endless rhetorical bashing. Here's a clue: Attacking and punishing the energetic builders and creators of America does NOTHING ... absolutely nothing ... to make the attacker more successful. Boockvar's politics are simply a continuation of bitter class warfare and envy. The reason Fitzpatrick is so well-loved and accepted in the 8th district is because he constantly tries to HELP his constituents, be they small business startups or employees.
MrHarley posted at 10:27 am on Thu, Sep 6, 2012.
Don, being as you continually like to bring up the past. We democrats held the majority in both houses and the presidency yet we couldnt even pass a budget. Admit it Don, Democrats have dropped the ball as well.
Signed,
Not hiding. Robert Harley
ForDemocracy posted at 10:25 am on Thu, Sep 6, 2012.
I've had enough of republicans.
Kathy Boockvar and the Democratic Party ticket.
ForDemocracy posted at 10:21 am on Thu, Sep 6, 2012.
Says FOX news! lol!
Dogman posted at 10:07 am on Thu, Sep 6, 2012.
Two points.
1. Less than 3% of samll businesses would be affected by an increase on those making 250k and above annually, additionally, the higher tax rate does not apply to the first 250K those people report.
2. The Ernst and Young report doesn't hold up to scrutiny. It was commissioned by the US Chamber of Commerce and makes specific assumptions about the use of the additional revenue. Those assumptions have no basis in fact and so the report has been widely discredited.
The fact that Rep. Fitzpatrick uses these chestnuts in an op-ed is discouraging at best. He should be honest with his constituents.
dwhite posted at 10:03 am on Thu, Sep 6, 2012.
No party why don't you post your name?
Man up! Be a proud American!
I really do not understand how you can face yourself. You attack and hide. Come out of the closet.
How much of that spending was new spending produced by Obama? That's right very little. We are paying for Bush's wars and RX plan and tax cuts. All of which the liar Ryan voted for. You want to cut spending then the republican run house needs to DO SOMETHING. Remember they hold the check book.
BlueStarMom posted at 9:37 am on Thu, Sep 6, 2012.
The tax cut includes continuing the loop hole allowing hedge fund managers to pay 15% on compensation that should be taxed as wages.
Wall Street Journal today said ADP reports 201 thousand jobs created in August, way over the expected prediction. The Dow is rising. The country is rising.
no party affiliation posted at 9:06 am on Thu, Sep 6, 2012.
Don White, if anyone is a liar, it's you.
All your statement is missing is how Mike wants war with Iran.
Don, where did $6 trillion go. Obama and company spent more in 4 yrs, than ANY president ever has, and had no disasters like Katrina to deal with, and had NO military to build up, after Clinton dismantled it. And Don, there was NO surplus from Clinton, he left us with a addditon to the deficit.
dwhite posted at 8:01 am on Thu, Sep 6, 2012.
Wow this must be the year of the lie for republicans. Ryan tells one lie after the other and now fitz is getting in on the act.
Obama does not want to raise taxes on the middle class. To state otherwise is a lie. Obama wants to extend the tax cuts for everyone except people making over 250 grand. Fitz knows this which makes this letter a bold faced lie.
Fitz cares nothing about fair taxes. When he was a commissioner real estate in Bucks went without reassessment for 30 years. Now we are up to 40 years. The taxes in Bucks are completly unfair. He didn't care then and he does not care now.
Fitz will take care of his rich banker buddies and that is all.
What has fitz gotten done while in congress?
That whole deregulation thing worked out real goodly for the banking industry. We should do more deregulation? We have regulation because corporate America has proven time and again they will not do the right thing. They are not to be trusted!
Will Mrs Brockvar get epual time?
Hey fitz when is the next townhall? Why are you hiding.