While President Obama was meeting with big business CEOs today, the Washington Post says small businesses – the ones facing the fiscal cliff’s tax rate hikes – are concerned the administration is pushing “policies that protect big companies while leaving small ones exposed to a major tax increase.”
In fact, American small businesses have a lot to fear from the fiscal cliff tax rate increases:
- According to the National Federation of Independent Business, the study by Ernst & Young discovered that the fiscal cliff tax rate hikes “would greatly impact small businesses.”
- According to the Joint Committee on Taxation, the tax rate hike will hurt nearly one million small businesses across the country.
- That means higher tax rates on more than half of all small business income – less money for successful small business owners to invest, grow, and create new jobs.
- Legislation passed by Senate Democrats imposes all of these devastating tax rate hikes on small businesses, driving us off part of the “fiscal cliff’ economists warn we should avoid.
Higher tax rates “would force small businesses to stop hiring new employees, lay off existing ones and increase prices for consumers,” writes The Daily Caller.
That’s why Speaker John Boehner and Republicans in Congress are working to avert the fiscal cliff without raising tax rates, and are calling for pro-growth tax reform, spending cuts, and entitlement reform instead. The framework outlined by Speaker Boehner last week would protect small businesses and middle class families by closing special interest loopholes and lowering tax rates.
“2013 should be the year we begin to solve our debt through tax reform and entitlement reform,” says Speaker Boehner. “This will bring jobs home, result in a stronger, healthier economy. And a stronger, healthier economy means more Americans working and more revenues – which is what the president is seeking.”