One tax increase away from slipping into another recession
By Cong. Quico" Canseco
Texas Insider Report: AUSTIN Texas Last week I visited Don Pedros Mexican Restaurant in San Antonio one of many small businesses in the 23rd District of Texas
that will be negatively impacted by the tax hikes scheduled to take place in January of 2013. Like most small businesses across America its not just the owners of Don Pedros that will be hurt by a massive tax increase but
also their employees customers and the local community that benefit from the restaurants generosity made possible by its success.
According to the Congressional Budget Office failure to extend current income tax rates and deal with the Alternative Minimum Tax will increase taxes on small businesses and working Americans by $4.6 trillion over ten years and $232 billion in 2013 alone. With this in mind businesses are already cutting back investments and waiting to hire more employees to attempt to plan for the sharp increase in taxes they will pay if the hike is not stopped. Yet another bit of uncertainty created in our already struggling economy brought on by the policies of the current administration.
Now is not the time to raise taxes on our small business owners and struggling families. In August of 2009 President Obama himself said: You dont raise taxes in a recession…because that would just suck up take more demand out of the economy and put business in a further hole."
If Congress were to implement the plan promoted by the current administration to increase the top two individual rates 53 of business income reported on individual returns would be hit by
the tax hike according to the non-partisan Joint Committee on Taxation. The National Federation of Independent Business reported that 75 of small business owners pay taxes at the individual rate.
In short those responsible for the majority of economic growth in this country our small businesses and local entrepreneurs would be hit the hardest.
With our nation experiencing abysmal economic growth 1.5 for the second quarter small business owners dont need more taxes but more certainty. Raising taxes will dampen any possibility of an economic recovery.
The House of Representatives voted this week to stop the tax hike because we understand that small business owners need to keep more of their hard earned dollars to invest in their business and hire new employees.
Were one tax increase away from slipping into a recession and as long as Im in the House I will work to stop tax hikes that will harm my constituents and the economy.
A former small business owner and lifelong Texan Congressman Canseco proudly represents the 23rd District of Texas. You may contact Congressman Canseco at: http://canseco.house.gov
