by Congressman Erik Paulsen
In a few short months on Jan. 1, all Americans will see their taxes increased unless action is taken. Last week, I participated in a Jobs Roundtable with members of the Twin West and Eden Prairie Chambers of Commerce. I heard directly from more than 20 small business leaders who described firsthand the drastic effects the looming tax hikes could have on their ability to grow and hire. They all echoed the same sentiment: Washington needs to provide confidence for small businesses to be able to expand their operations and hire new workers. And, raising taxes will not help the economy.
Here are some statistics about tax hike scheduled to take place on January 1st and how it could impact you.
If the tax hike takes effect…
A family of four earning $50,000 per year could pay almost $2,200 in higher taxes (five times more than they are paying now)
A single mom earning $36,000 per year could pay more than $1,100 in higher taxes (double what she is paying now)
Married senior citizens earning $40,000 per year could pay nearly $1,700 in higher taxes (double what they are paying now)
This week, I voted to keep tax rates where they are and stop what would be the largest tax hike in American history. The legislation we passed in the House saves 710,000 jobs -- 14,500 in Minnesota alone.
More importantly, I believe we need comprehensive tax reform. Did you know that the U.S. tax code is over 3.8 million words long? And over the past 10 years, there have been more than 4,428 changes to the tax code, averaging more than one each and every day!
The House also passed key principles and a timeframe for real tax reform. I believe we can find bipartisan consensus and produce a tax code that is fairer, simpler and more competitive. We need to eliminate special interest loopholes that only favor a few. This framework will allow the real work to be done to ensure that our economy recovers, our nation’s job creators are able to grow and expand, and families are treated fairly.
Also this week, I joined my colleague Congressman Ron Kind (D - WI) in penning an opinion piecefor The Hill newspaper regarding tax reform.
New Role—Chairman Paulsen
After a sudden resignation by one of my colleagues due to a family health issue, I was named as the new Chairman of the Ways & Means Subcommittee on Human Resources. I look forward to this new challenge of leading the subcommittee, which oversees welfare reform and important programs such as Temporary Assistance for Needy Families (TANF), Unemployment Insurance, and Supplemental Security Income.
Read coverage of the announcement from MPR.
Read coverage of the announcement from MinnPost.