U.S. Senator Orrin Hatch (R-Utah), Ranking Member of the Senate Finance Committee, says in the Weekly Republican Address that raising taxes on small businesses, as Senate Democrats voted to do this week, is the wrong solution in the middle of an economic crisis. вЂњThis isnвЂ™t the time for political games and vilifying job creators.В The President and his Washington allies need to stop holding AmericaвЂ™s economy hostage in order to raise taxes on those trying to lead our economic recovery,вЂќ said Hatch, the ranking Republican member of the Senate Finance Committee. Hatch has put forward a Republican plan that would extend all of the current tax rates while working to undertake a long overdue overhaul of AmericaвЂ™s broken tax code next year. The Weekly Republican Address is available in both audio and video format and is embargoed until 6:00 a.m. ET, Saturday, July 28, 2012. The audio of the address is availableВ here, the video will be availableВ here and you may download the addresshere.
A full transcript of the address follows:
вЂњHello. IвЂ™m Senator Orrin Hatch of Utah.
вЂњItвЂ™s sometimes hard to see how the policy debates in Washington affect you sitting at home. But thereвЂ™s a significant debate taking place that could put nearly every American on the hook to pay more taxes to Uncle Sam.
вЂњIn just over five months, middle-class families, job creators and seniors will get hit with a massive tax hike unless the President and Congress act.
вЂњThis would mean that taxes would go up on virtually every single taxpaying American.
вЂњThe Alternative Minimum TaxвЂ”designed decades ago to ensure that 154 wealthy Americans paid some income taxesвЂ”would then hit 27 million Americans with a $92 billion tax hike next year alone.
вЂњNow, what would this cost you?
вЂњA family of four earning $50,000 a year would see a $2,200 tax hike.
вЂњIf youвЂ™re a single mother with a $36,000 a year paycheck, youвЂ™d pay $1,100 more to the government.
вЂњA married couple over 65 with $40,000 in income would see their tax bill double.
вЂњAnd just under one million small businesses, who are trying to lead our economic recovery, would be hit with as much as a 17 percent tax hike.В Think about thatвЂ”one million job creators with less to invest and create jobs.
вЂњThis just doesnвЂ™t make sense.
вЂњThe uncertainty caused by this tax crisisвЂ”or TaxmageddonвЂ”is contributing to AmericaвЂ™s lackluster economic recovery. ThatвЂ™s not a Republican talking point; thatвЂ™s based on what job creators across the country are saying.
вЂњLike Brent Gines from Sandy, Utah, who said that, вЂAny increase in expenses or outlays always has a big decrease on our ability to do business.вЂ™
вЂњOr the 90 percent of small businesses who told the Chamber of Commerce that they are very concerned with Taxmageddon.
вЂњOr Federal Reserve Chairman Ben Bernanke who told Congress that our countryвЂ™s economic recovery, вЂcould be endangered.вЂ™
вЂњThe Congressional Budget Office and International Monetary Fund have both issued warnings as well.
вЂњTaxmageddon doesnвЂ™t have to happen, and the last few weeks have offered a clear choice about how we can stop it.
вЂњAs the top Republican on the Senate Finance Committee, I put forward a common-sense plan to prevent this massive tax increase, so we can undertake a long overdue overhaul of AmericaвЂ™s broken tax code next year.
вЂњUnfortunately, Washington Democrats’ default position appears to be to let everyone’s taxes skyrocket, if Congress doesn’t agree to their plan to raise taxes on one of the most productive segments of our economy.
вЂњThe group charged with representing small businesses found that 25 percent of our workforce is employed by those very small businesses that would be hit by the PresidentвЂ™s proposed tax hikes.
вЂњAnd a study by Ernst & Young found that these looming tax increases would shrink the economy by 1.3 percent and shed 710,000 Americans from the workforce.
вЂњRaising taxes as our economy continues to struggle is not a solution, and the majority of Americans and businesses understand that.
вЂњThe President once understood that as well. In 2010, he said that allowing these same tax increases вЂwould have been a blow to our economy, just as we’re climbing out of a devastating recession.вЂ™ Forty Democrats in the Senate agreedвЂ”joining Republicans to stop these potentially devastating tax hikes.
вЂњThat was the right position then, and, with grim news this week that economic growth is weaker than it was two years ago, itвЂ™s the right position today.
вЂњRegrettably, Washington Democrats have abandoned that common-sense position opting for a campaign message instead. This week Senate Democrats voted on a partisan proposal to increase taxes on small businesses and jack up the death taxвЂ”hitting 24 times more farms, ranches, and over 13 times more family businessesвЂ”by as much as 55 percent.
вЂњThe good news is their bill wonвЂ™t become law with the House of Representatives set to pass bipartisan legislation next week ensuring that no one gets an income tax hike.
вЂњNow, the President may not think that small business owners are the ones who actually built their business, but the President and his Washington allies need to listen to what you, the American people are saying. Republicans are listening, and thatвЂ™s why we put forward this common-sense plan to extend all the current tax rates, as we did in 2010, so we can work together next year to fundamentally reform our broken, costly tax code.
вЂњWhat will tax reform look like?
вЂњIt should mean lower tax rates to promote more hiring, investment, and a stronger economy.
вЂњA simpler tax code should make it easier for people to invest in new businesses, pay for our childrenвЂ™s education, and give money to charity.
вЂњThis isnвЂ™t the time for political games and vilifying job creators.В The President and his Washington allies need to stop holding AmericaвЂ™s economy hostage in order to raise taxes on those trying to lead our economic recovery.
вЂњLetвЂ™s roll up our sleeves to ensure that America remains the leader we know it to be.
вЂњThank you. May God bless you, and our great country the United States of America.вЂќ