Op-Eds

Friday, July 27 is Stop the Tax Hike Day, a day dedicated to preventing tax hikes and highlighting the larger need for comprehensive tax reform. Having worked at my family’s small business, I understand the challenges that other small businesses and job creators face in our current economic climate. Couple that with President Obama’s recent demands to allow tax rates to increase for everyone making more than $200,000 annually ($250,000 for couples), this plan would further stifle our fragile economy by raising taxes on thousands of small businesses.

According to the Joint Committee on Taxation, using President Obama’s own calculations, approximately 940,000 of our fastest-growing small businesses and job creators would be affected. 

A July Ernst & Young study shows that in Kentucky alone, approximately 9,700 jobs would disappear and the tax hike would cost the state’s economy $2.2 billion. With both a state and national unemployment rate of 8.2 percent, we cannot afford to lose more jobs and create even more economic uncertainty.

The ambiguity created by the looming expiration of the 2001 and 2003 tax rates hinders small businesses across this country. Job creation is at an all time low and it will only get worse if taxes are raised on job creators. This tax hike would mean fewer jobs, lower wages, less investment and a smaller economy. That’s enough to point our country in the direction of another recession.

That’s why I support a one-year extension of all current tax rates. This would allow Congress to continue to debate comprehensive tax reform to make the tax code fairer for everyone. It will retain the existing rates for all income levels and for capital gains, dividends and death taxes. It would also keep the child tax credit, alternative-minimum tax patch and protection from the marriage penalty.

This is not a partisan issue – President Obama signed legislation passed by Congress that prevented any tax hikes in 2010. Citing the current economic situation, President Obama said it would not be in our nation’s best interest to raise rates. Our economy remains weak and raising taxes will only prevent expansion and growth.

When I consider legislation pending before me, I routinely ask myself if a measure will help create an environment to grow jobs and encourage investment.  Our nation is at a tipping point and I will not support tax hikes on America’s job creators, especially at a time when our nation is in jeopardy of falling off the fiscal cliff.