By law, all current income tax rates will expire on Jan. 1 and all Americans will see tax increases. Those in the lowest tax bracket will see the steepest increases from 10 to 15 percent. Congressman Tom Reed is warning of the devastating effect on small business if the current tax rates are allowed to expire. Reed voted to maintain the current tax rates, but the Senate has not done so.
"In the House, we have been focused on steps to avoid these increases," Reed said. "I voted to prevent the scheduled Jan. 1 tax increases at all levels. While I don't support any tax increases on Americans, we need to be especially cautious of Washington taking more from our small businesses and working families with tax increases.
"We need to carefully prioritize how the federal government spends taxpayer dollars and live within our means," Reed said. "Certainty that we are dealing with our debts and certainty regarding tax rates will bring more investment into creating the products of tomorrow. That means new jobs and career opportunities."
According to Reed, Senate Democrats on the other hand, are willing to sit by and let the current tax rates expire at the end of the year.
"We need to act to make sure our nation isn't pushed over the fiscal cliff because of the inaction of some," Reed cautioned. "My opponent and those who support the looming tax increases turn a blind eye to the small businesses that will be impacted at the end of the year."
"My opponent believes that increased government borrowing, spending and taxing will solve our economic problems," Reed continued. "We've seen this policy fail before. It is the same policy that helped to get us an additional $1.1 trillion in debt this year alone. We need to change the trajectory this country is on and we need to prevent the upcoming tax increases for small businesses and families."
By law, taxes will automatically increase Jan. 1 unless action is taken. The House passed legislation, the Job Protection and Recession Prevention Act, to prevent the scheduled increases.