The debate about encouraging economic growth, lowering taxes and controlling the deficit has taken center stage as we approach the expiration of the tax cuts enacted in 2001 and 2003. I believe that we must take action to extend all the tax rates that have been in effect for almost ten years. There is never a good time to raise taxes if we want to encourage small business to grow and create jobs, particularly in a bad economy. According to Congress’ Joint Committee on Taxation, the proposed Obama tax increases will raise taxes on 50% of all small business income. And it is small business that has created 2 out of every 3 new private sector jobs over the last fifteen years.
In a recent CNNMoney.com survey, only 10% of the economists surveyed endorsed the Obama plan to extend the tax cuts for only the lower and middle class taxpayers and raise the tax rates on the top two brackets. The vast majority of the economists surveyed said that extending the tax cuts for all taxpayers is the most important thing that Congress can do to help the economy. High tax rates stifle economic growth and it is a good economy that makes everything else possible.
A growing economy allows companies to create jobs, encourages entrepreneurship and creates opportunity and upward mobility for all citizens. It provides the basis for a balanced budget and reduced government debt, enables us to maintain a strong national defense and allows us to keep our promises to our seniors, our veterans, our allies and business partners.
As a small business owner, I understand the economic challenges facing us today. First and foremost, we need to pursue policies that promote private sector job growth. We have a President and a Democrat-controlled Congress who believe that a policy of more spending and higher taxes is the answer. I strongly disagree. I know that higher tax rates will not put more Americans to work. We need to implement policies that encourage businesses to grow and expand by putting money in the private sector and not in the hands of the government.
I understand that business prospers when government gets out of the way. The federal government can ask business owners to either pay more taxes or hire more people. Small business cannot do both.
The prosperity of America is directly linked to a good economy. During challenging economic times, it is critical that our leaders focus first and foremost on tax policies that will encourage economic growth and job creation for the people of America. I am committed to fighting for principles I believe in – limited government, less government spending and lower taxes – and I believe a focus on these fundamental principles will result in a growing economy.