SENATOR COLLINS REITERATES CALL FOR IMMEDIATE TWO-YEAR EXTENSION OF TAX RELIEF PROVISIONS; CALLS ON CONGRESS TO TACKLE TAX REFORM
U.S. Senator Susan Collins today released this statement reiterating her call for an immediate two-year extension of the 2001 and 2003 tax relief provisions for all Americans, following the release of the Department of Labor's monthly unemployment report for November.
"Today's dismal unemployment numbers underscore the urgent need to extend tax relief for all Americans. Unless Congress acts before the New Year, Americans and small businesses will face an automatic tax increase of nearly $2.7 trillion - one of the largest tax increases in our history. With the economy still weak, and with unemployment numbers nearing 10 percent, the last thing we need is a job-killing tax hike.
"Some who argue that top earners should not be protected from this tax increase are ignoring the fact that there are some 750,000 pass-through small businesses in the top two tax brackets. A tax increase on top earners is a tax increase on these small businesses and thus, a tax on jobs, at a time when we should be doing all we can to stimulate the creation of more jobs.
"I have heard from many small businesses in Maine who would be hurt by this tax increase. Higher taxes hurt these small companies by taking away capital they need to grow and to add jobs. The fact is, this tax increase would make it difficult, if not impossible, for entrepreneurs to grow their businesses and make the necessary investments to stay competitive. When small businesses can't invest and grow, they can't add jobs.
"One Maine employer estimates that every one percent increase in its tax rate means one fewer worker for five full years. Stated another way, the tax increase scheduled to occur on January 1st would wipe out jobs for five workers, for five years, just at this one business. If that is the impact at one small business in Maine, imagine the impact on jobs nationwide.
"President Obama's own former budget director, Peter Orszag, has argued that failing to extend tax relief would "make an already stagnating job market worse." Economist Mark Zandi has estimated that raising taxes on top earners would cost us 770,000 jobs over the next two years. He cautions that earners in the top brackets are responsible for 'one fourth of all U.S. personal outlays,' and that a pullback in spending by these taxpayers could 'derail the recovery.'
"America needs jobs - not higher taxes. I once again urge my colleagues to come together around this reasonable, two-year compromise that will get us through the recession and send a strong signal to the business community to invest and create jobs. This two-year period would also give Congress the opportunity to undertake comprehensive tax reform to make our system fairer, simpler, and more pro-growth."
Video of Senator Collins' floor speech:
"Today's dismal unemployment numbers underscore the urgent need to extend tax relief for all Americans. Unless Congress acts before the New Year, Americans and small businesses will face an automatic tax increase of nearly $2.7 trillion - one of the largest tax increases in our history. With the economy still weak, and with unemployment numbers nearing 10 percent, the last thing we need is a job-killing tax hike.
"Some who argue that top earners should not be protected from this tax increase are ignoring the fact that there are some 750,000 pass-through small businesses in the top two tax brackets. A tax increase on top earners is a tax increase on these small businesses and thus, a tax on jobs, at a time when we should be doing all we can to stimulate the creation of more jobs.
"I have heard from many small businesses in Maine who would be hurt by this tax increase. Higher taxes hurt these small companies by taking away capital they need to grow and to add jobs. The fact is, this tax increase would make it difficult, if not impossible, for entrepreneurs to grow their businesses and make the necessary investments to stay competitive. When small businesses can't invest and grow, they can't add jobs.
"One Maine employer estimates that every one percent increase in its tax rate means one fewer worker for five full years. Stated another way, the tax increase scheduled to occur on January 1st would wipe out jobs for five workers, for five years, just at this one business. If that is the impact at one small business in Maine, imagine the impact on jobs nationwide.
"President Obama's own former budget director, Peter Orszag, has argued that failing to extend tax relief would "make an already stagnating job market worse." Economist Mark Zandi has estimated that raising taxes on top earners would cost us 770,000 jobs over the next two years. He cautions that earners in the top brackets are responsible for 'one fourth of all U.S. personal outlays,' and that a pullback in spending by these taxpayers could 'derail the recovery.'
"America needs jobs - not higher taxes. I once again urge my colleagues to come together around this reasonable, two-year compromise that will get us through the recession and send a strong signal to the business community to invest and create jobs. This two-year period would also give Congress the opportunity to undertake comprehensive tax reform to make our system fairer, simpler, and more pro-growth."
Video of Senator Collins' floor speech:
