House Majority Leader Steny Hoyer (D-Md.) says Republicans are to blame for the tax hike on small businesses which will go into effect on January 1. He does not accept the premise that the Democratic leadership is responsible now to extend the lower tax rates.
HUMAN EVENTS caught up with Majority Leader Hoyer after a press conference for the Democrats’ so-called “Make It In America” agenda.
“The Republicans put in their bills that these policies, tax levels, in place now will phase out this year,” Hoyer insisted. “That was a Republican policy.”
Hoyer shifts the blame to Republicans, oddly, for lowering taxes that Democrat leaders are not sustaining.
“If they do go up, they’re going up because of the Republican policy to phase out those taxes this year,” he said.
Also, Hoyer tried to justify the Democrats inaction by denying that small businesses’ taxes will go up on January 1. He called the tax hike “spin,” and said that he “doesn’t agree” with the facts.
When asked for his response to the 20 million to 30 million people whose jobs will be affected if these lower taxes are not extended, Hoyer said, “I don’t accept that premise at all.”
After reminding the majority leader that 60% to 80% of new jobs are created by small businesses, he replied, “That’s your spin. Those aren’t the facts.”
House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.) announced that Congress is adjourning this week and not returning to Washington until early December.
The lower tax rates signed into law by President Bush in 2001 and 2003 are set to expire on December 31, which means all Americans will pay higher taxes. By adjourning now, the Democrats are leaving undecided if taxes rates will go up at the beginning of the year.
Hoyer has said that he supports keeping tax rates low on the middle class, but wants to raise taxes on those with over $250,000 of income. The Democrats claim that these people are “the rich,” so raising their taxes will bring in necessary revenue to pay for their big government spending. However, over half of those deemed “rich” are actually small businesses that file as individual taxpayers, instead of a corporation.
Currently, an estimated 20 million to 30 million Americans’ jobs depend on these individuals companies. With unemployment at over 9% and holding, crushing higher taxes on small businesses could force a scale back in employment.
These small businesses are vital to economic recovery since an estimated 60%-80% of new jobs are created by these employers. If the Democrats push through their plan to raise taxes on these small businesses, they are much less likely to hire or create new jobs.
The Democratic leadership—Pelosi, Reid and Hoyer—have refused to vote on tax cuts before the midterm elections. Voters are going to into the midterm elections without knowing if their representative in Congress will raise taxes at the beginning of the year. Hoyer’s evasion of the answer to a simple question speaks volumes.