SBE Council notified all members of the U.S. House that it will KEY VOTE the Job Protection and Recession Prevention Act, H.R. 8 for its forthcoming Ratings of the 112th Congress. H.R. 8 is an important measure for entrepreneurs as it will extend all current tax rates through to 2013.
In 2012, extension of the tax rates was supported on a wide bipartisan basis. In the U.S. House, over 130 Democrats voted for an extension for all -- 86 of these Democrats are currently U.S. House members. Both parties came together and agreed that the economy was too weak to impose tax increases on businesses, individuals, investors and the private sector in general. With the economy showing anemic growth of 1.5% in the second quarter, one could argue that the economy is in similar shape today as it was back then.
As SBE Council noted in its KEY VOTE letter:
"As reported last week, second quarter GDP growth came in at a pitiful 1.5 percent. Raising taxes will aggravate currently weak economic conditions, driving the economy and business confidence into the ground. Access to capital is very difficult. Voting to raise taxes on entrepreneurs would worsen these conditions, and only cause more pain for small business owners and the unemployed who are counting on them to create jobs.
"Raising taxes during this tenuous economic period makes no sense. Washington should not be draining more resources out of our capital-starved economy. Entrepreneurs and the private sector need this capital for creating jobs, investing in their firms, rewarding employees, and for general business needs like paying down debt or expanding into new markets. Extending all tax rates will foster some stability, which is key for business growth and robust entrepreneurship."
The House is expected to pass H.R. 8, but given the Senate's vote last week to raise taxes on small business owners and entrepreneurs and rejecting an amendment that would extend the current tax rates for another year, it looks like small business owners will move closer to the "tax cliff," which comes at year's end.
Karen Kerrigan, President & CEO