Guest blog post by Rep. Randy Neugebauer (Tex.)
If there is one thing Democrats in Congress have proven themselves good at, its creating more uncertainty for working families and the economy. Unless Congress acts, in 155 days Americans will face the largest tax hike in history to the tune of $3.8 trillion.
What does this mean for taxpayers? Income tax rates will increase across the board, 35 million married couples would be hit by a $595 marriage penalty, and taxes would be higher on dividends and capital gains, discouraging investment. Thirty-one million families with children would pay $1,033 more due to a lower child tax credit, and the death tax would return to a maximum rate of 55 percent.
With 9.5 percent of the population unemployed, these higher taxes would come at a time when taxpayers can least afford it. The threat of the largest tax hike in history is creating widespread uncertainty for small businesses that could otherwise be creating jobs and expanding. After all, according to the Joint Committee on Taxation, 94 percent of small businesses will face higher taxes under the Democrats plan. If their taxes are going to be higher, business owners are going to hold off on hiring and expansions. The unknowns for small businesses are simply taxing the certainty out of our economy.
House Republicans have offered good, common-sense solutions, but the Majority just isnt listening. Earlier this year, I introduced the Taxpayer Certainty Act, which would prevent these pending tax hikes. As a former small business owner, I know these businesses will be the economic engine driving our economic recovery. Likewise, families who can keep more of their own money, rather than sending it to the government, will grow the economy.
Washington has created this economic uncertainty; its high time for us to end it. The federal government has a spending problem, not an income problem. Its time to give the taxpayers the certainty they deserve.
Congressman Neugebauer represents Texas' 19th congressional district.