‘With the highest unemployment rate in 25 years, most people don’t see the sense in raising taxes on small business. And I’m one of them’
WASHINGTON, DC – U.S. Senate Republican Leader Mitch McConnell made the following statement on the Senate floor Wednesday regarding the Budget:
“Americans are starting to get the idea about the Administration’s Budget — that it taxes too much, spends too much, and borrows too much, especially in the midst of an economic crisis.
“On taxes, the Budget includes the largest tax hike in history, diverts billions from charities at a time when Americans are looking to these charities even more than they usually might. And it raises taxes on small businesses.
“Small businesses account for nearly three fourths of all new private sector jobs in America. The Budget’s tax on small businesses would cause many of them to see their taxes go up significantly. This tax hits the general contractor down the street, the family restaurant, the start-up technology firm, and many of the other businesses that people deal with or work at all across the country every single day.
“These businesses are the engines of our economy. They’re struggling. And they’ll struggle even more once these tax hikes go into effect. Small businesses with more than 20 workers, which account for two-thirds of the small business workforce, get hit hard. The President’s budget includes a tax increase on more than half of them.
“These businesses are run by men and women who make decisions based on considerations like how much they’re taxed, and if they’ve got less money coming in as a result of higher taxes, they cut jobs, put off buying new equipment, and they take fewer of the risks that have always made the U.S. economy so vibrant and innovative.
“Hundreds of thousands of Americans are losing their jobs every month. Many of these jobs are at small businesses. Higher taxes will only force these businesses to shed even more jobs.
“I understand the Administration’s desire to make good on its promises, but taxes on job creators in a recession is not the right approach. With the highest unemployment rate in 25 years, most people don’t see the sense in raising taxes on small business. And they're absolutely right.”