The House Ways & Means Committee released a report last week that says President Obama’s plan to raise taxes on families and small businesses next year “would have a devastating effect on the economy.” That’s why the House will vote next month to stop all of the tax hikes. According to The Hill:
“The GOP leadership and the House Ways and Means Committee are busy crafting legislation to extend all tax cuts, especially as the economy continues to struggle, with the intention of passing a measure before the August recess, a senior GOP aide told The Hill on Thursday. …
“Republicans are committed to ensuring no taxpayer, whether an individual, family or job creator, is hit with a tax increase, the aide said.
“The plan would prevent the tax increase for all income levels while laying a foundation for passing and enacting comprehensive reform in 2013, they said.”
The Heritage Foundation says the president’s plan for tax hikes “will slow job creation and wage growth.” After three years of Obama administration policies that have left us with high unemployment, stagnant wages, and rising prices, “Americans at all income levels will feel the pain” if it goes into effect.
For example, “Heritage research shows that families will see an average tax increase of $4,138. Baby boomers’ average increase will be $4,223, and low-income taxpayers can expect a $1,207 increase. Millennials will be hit with an average hike of $1,099, and retirees $857.”
And because the threat of the “largest tax increase in history” is “clouding jobs and family finances now,” Speaker John Boehner says “[t]he president should assure the nation that when [the House-passed bill stopping the tax hike] gets to his desk he’ll sign it into law.”
By proactively preventing these massive tax hikes, we can end some of the uncertainty facing families and job creators, and help boost economic growth. Extending all rates for another year will also give the House time to craft a fairer, simpler tax code that lowers rates and closes special interest loopholes.