Sen. Orrin Hatch, R-Utah, introduced an amendment Tuesday to extend the George W. Bush-era tax cuts to people of all income levels for another year.
The amendment would be attached to the Small Business Jobs and Tax Relief Act. President Barack Obama has proposed continuing the tax decreases only for those with an annual income below $250,000, but nearly all Republicans support Hatch’s stance. The tax cuts will expire Dec. 31 if Congress doesn’t act.
Hatch, like other Republicans, says limiting the extension would produce major hardship for small businesses, as many of them pay their taxes through their owners' personal returns, The Hill
"Unless Congress acts to prevent these massive tax increases, the vast majority of small businesses will be hit with a massive tax increase next year," Hatch said. "It is hard to conceive of a greater impediment to job creation. All of these tax increases and the economic uncertainty that they cause are going into the investment and hiring decisions of businessmen and women today."
The tax hike would have a severe negative effect on the economy, he said. “Here we are with a fragile recovery and a weak jobs market. President Obama seems content to sit idly by and allow this scheduled 4.5-trillion tax hike to occur. I believe Congress needs to act now to prevent this tax hike on America's families and job creators."
An expiration of the tax cuts may put the kibosh on economic recovery, Hatch said. "Our economy simply cannot afford to take on such a fiscal shock."
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