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“NO” on the motion to invoke cloture on the motion to proceed to S. 3412, the so-called “Middle Class Tax Cut Act.”
July 25, 2012
NTU urges all Senators to vote “NO” on the motion to invoke cloture on the motion to proceed to S. 3412, the so-called “Middle Class Tax Cut Act.” Instead of taking this opportunity to provide relief for all taxpayers, the legislation includes job-killing tax hikes that will undermine an already anemic economic recovery.
Senator Reid’s (D-NV) tax hike plan includes: a $50.5 billion tax hike on families and small businesses making over $250,000, higher tax rates on investments (in addition to a pending health care surtax), and a $31.2 billion tax hike on 43,100 family farms, ranches, small businesses, and estates.
Among the most damaging tax hikes poised to strike in 2013 is a return to pre-2001 death tax levels of 55 percent with a $1 million exemption. At a time when unemployment is persistently above 8 percent and 23 million Americans are unemployed or underemployed, Senator Reid’s legislation ignores this urgent economic threat. We can’t afford this massive tax on potential job creators, who could otherwise grow businesses passed along to them intact. According to the nonpartisan Joint Committee on Taxation (JCT), under S. 3412, the number of “estates” hit by the tax will increase from 3,600 to 55,700. Among those footing much higher bills will be 24times more farmers and 13 times more small business owners. These Americans often do not have the liquid assets required to pay this large tax, forcing families to lay off workers or sell the property.
Ernst and Young have also reported that higher taxes for the top two marginal tax rates, a policy embodied in S. 3412, will shrink the economy by 1.3 percent and cause 710,000 jobs to be shed from our workforce. Together, by attacking the capital that underpins our economy, the numerous tax hikes in this bill will create lower wages, less investment, and economic contraction. S. 3412 isn’t so much a tax on “the rich” as it is a tax on our future.
Congress has a spending problem, not a revenue problem. Rather than further choking our economic engine with tax hikes, Congress needs to get serious about reducing expenditures, as well as reforming the current tax laws to make them simpler and fairer.
Roll call votes on S. 3412 will be heavily weighted in our Annual Rating of Congress.If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700