|Corrigan Times - Local News
Copyright 2012 - Polk County Publishing Company
Brady brings gloomy message for small businesses
BY MARTHA CHARREY
LIVINGSTON – Failing tostop tax hikes coming at the endof this year will increase taxeson small businesses, shrink theeconomy, lower wages and costover 700,000 jobs in America,Congressman Kevin Brady, RTheWoodlands, said Fridaymorning.Brady made the commentsduring a “Stop the Tax HikeDay” tour through District 8.Meeting in Livingston, he saidthe Senate voted this week toincrease taxes on small businesses.“A study by Ernst & Youngstates that President Obama’splan to raise taxes on smallbusiness owners and familiesearning more than $250,000will lower the wages of Americanworkers by nearly two percent(1.8 percent) shrink theU.S. economy and cost 700,000jobs, 57,000 of them in Texas.”This week the Senate approvedObama’s plan to increasetaxes on the wealthy. TheSenate voted 51-48 to extendBush-era rates for all taxpayersexcept the wealthiest 2 percent,according to reports.In a press conference, Obamacongratulated the Senate afterthe vote saying, “House Republicansare now the only peopleleft in Washington holding hostagethe middle-class tax cuts.It’s time for House Republicansto drop their demand for another$1-trillion giveaway to thewealthiest Americans and giveour families and small businessesthe fi nancial securityand certainty that they need.”Referring to the Obama recovery,Brady said, “It is theweakest recovery since WorldWar II, small businesses alongMain Street are struggling andso are a lot of hardworking taxpayers.This study proves thatwhile the President is shootingat the so-called wealthy, his taxhikes will actually hit hardestour small businesses and middle-class workers who’ll seetheir paychecks shrink.”Brady announced that HouseRepublicans will take up legislationnext week to stop theObama $4.3 trillion tax hike,lay out principles for a fairer,simpler tax code and guaranteean up-or-down vote by Congresson tax reform next year.The measure will also preventthe Death Tax from springingback to life and stop the alternativeminimum tax from capturing31 million middle classfamilies.While Brady said the Republicanswill take up legislationnext week to stop the tax hikes,he added that the outcome is almostcertainly stalemated untilafter the November elections.“The outcome of the debatescould mean an averageof $3,600 a year in taxesfor middle-class families and$2,000 to retirees around LakeLivingston, “Brady said.“We’ve got to stop the taxhikes,” Brady reiterated.Automatic spending cutsset to start in 2013 could slashgovernment spending by $1.2trillion in the next decade, butit also could be devastating, accordingto Brady.Major tax relief expiringDec. 31, include GOP Tax Relief,Alternative Minimum Tax,Death Tax, payroll tax holiday,Capital Gains, Child Tax Credit,Marriage Penalty, collegetax credits and small businessexpensing, according to Brady.“Automatic tax cuts to themilitary will drastically reduceour nation’s defense capabilities,”Brady said.“An additional 100,000 soldiers,sailors, Marines andairmen would be separatedfrom service. Those reductionswould lead to the smallestground force since 1940; a fl eetof fewer than 230 ships, thesmallest level since 1915; thesmallest tactical fi ghter forcein the history of the Air Force,”Brady said.“The impact to Texas wouldbe $5.44 billion in lost earningsand $7.92 billion decreasein Gross State Product,” Bradysaid. “Texas jobs lost would include21,925 active duty military;12,014 civilian employees;91,575 private sector jobsfor a total loss of jobs in Texasamounting to 125,514.”House Republicans passedlegislation earlier this year thatwould cut $7.7 billion in federalfood-stamp spending inthe fi rst year, require federalworkers to contribute more toretirement plans, end grants forhealth insurance exchanges, putlimits on Medicaid payments,implement other entitlementreforms and trim federal spending,Brady said.“This plan was unfortunatelyopposed,” he said, adding, “Itwill create a big impact on thesecurity and military jobs inAmerica.”RED TAPE vs. SMALLBUSINESSBrady, who serves as vicechairman of the Joint EconomicCommittee, introduced a chartconstructed using informationposted on the Obama Administration’swebsite for the SmallBusiness Administration andthe Internal Revenue Service.“It illustrates how excessivered tape impedes small and otherbusinesses from expandingtheir operations and enlargingtheir workforces.” Brady said.“Many businesses have indicatedthat they are not hiringbecause of red tape. Red tapecreated by government costsbusiness owners an additional$10,000 for every worker,”Brady said.“There have been 2,500 regulationsadded just since NewYear’s,” he said 10ESTATE TAX DEBATE “The death tax continues to harm the economy,” Brady said. It is estimated that since its creation in 1916, the federal estate tax has taken as much capital stock from the American economy, $1.1 trillion, as it has generated in federal revenue, $1.2 trillion, he said. “A bill to abolish the death tax has 218 cosponsors in the House of Representatives and its drawing strong support and momentum within the chamber,” Brady said. “Our economy and federal tax revenues would grow faster if the death tax were simply abolished,” he said. “Washington often talks about fairness. How is it fair that you work your whole life and sometimes several lifetimes as families build a business or farm only to have Washington swoop in and take up half of what you have built a lifetime of, that is not fair at all,” Brady said. He introduced Polk County rancher Patricia Snook and her family attending the meeting. “They have been in the ranching business since 1917 and since that time paid estate taxes two times and currently paying again for the third time. That’s just not right,” Brady said. Brady said that more than half of the House has signed a bill he has introduced to abolish the estate tax before November’s election. “We already have the sup-port of 37 Senators, all of them Republicans,” Brady said. Ending his presentation on Obama Care, Brady said, “We need to repeal it and replace it with some common sense. You can do it at the ballot box if you want to repeal Obama Care in November. ”Taking comments from the audience, Polk County business owner Kenneth Yarbrough gave an example of a local gas station owner who is required to have three employees be certified to sale gasoline. “This is an example of frivolous things brought down on small business by the Environmental Protection Agency,” Brady said. Yarbrough went on to say that people of America in 1700 paid more to protect our freedom than today. “We are under the tyranny of Washington. We need to finance candidates that will change Washington,” Yarbrough said. Another man asked, “Why isn’t Congress holding the President to the law? “Until we change the law it is difficult. We revise it in the House and it sits in the Senate,” Brady said. Another question that stirred the emotions of many attending the meeting had to do with the Internet and the United Nations plan to govern it. Under the International Tele-communications Union (ITUU) the United Nations would be-come the governor of the Inter-net, which means American citizens would be subject to rules, regulations and censorship threatening First and Fourth Amendment rights of Americans. “Get us out of the United Nations,” said Mark Birdwell. “Stay with us and reverse the Senate and White House so we can reverse Washington,” Brady said. “At the end of the day all the power is with you – the voter.” Birdwell disagreed. In a sub-sequent interview he said many of the candidates elected in the wake of the public’s plummeting opinion of Congress have not delivered on any of their promises to make government more accountable, reduce spending or reduce tax burdens on families. Birdwell’s family was also financially devastated by the so-called death tax while he was a freshman in college. His parents were killed simultaneously in a small plane crash in Giddings in the 1970s. Since his mother’s career was a homemaker who was raising five children, her children were still minors or attending college not entitled to survivor benefits — unless she had worked outside the home an additional quarter before starting her family. Subsequent cuts to Social Security end survivor benefits as soon as a child turns 18. Their father had been self-employed in the oil industry. Sixty-seven percent of the family’s assets went to paying estate taxes.