Debbie Stabenow Voted For A Massive Tax Hike On Michigan Job Creators

What You May Have Missed Last Night….

Despite warnings from virtually every major business organization in the country that it would adversely impact job growth, U.S. Senator Debbie Stabenow (D-MI) once again voted in lockstep with President Obama last night in support of a permanent new tax on Michigan job creators.

“At a time when our country is still working to get our economy back on track, it speaks volumes about Debbie Stabenow’s misplaced priorities that she would vote for a permanent new tax hike on Michigan’s job creators,” National Republican Senatorial Committee (NRSC) spokesman Brian Walsh said today.  “Just as with the $825 billion stimulus and the trillion dollar health care bill, Debbie Stabenow would rather stand with President Obama, than stand up for Michigan.”

The Senate last night voted on two separate proposals, both with the common goal of extending the payroll tax cut by one more year for American workers.  But the Democrat proposal, which Stabenow voted for, would pay for this temporary tax cut with a permanent tax hike on Michigan job creators.  While Stabenow voted against a Republican proposal that would pay for this tax cut by adopting recommendations to trim the federal government that were put forward by the President’s own fiscal commission.

Stabenow voted for this tax hike despite a letter sent by an array of organizations representing Michigan’s job creators, including the Chamber of Commerce and NFIB, who warned that it “would seriously impair our ability” to put our unemployed back to work.

As the Wall Street Journal writes today:

• Mr. Reid’s surcharge—which would hit incomes of $1 million and above—would slam small business job creators. Congress’s Joint Committee on Taxation estimates that taxpayers will declare about $1.2 trillion of business income in 2013. Only a fraction of those small business owners and Subchapter S companies will have a net income above $1 million, but Joint Tax finds that 34% of that $1.2 trillion is on tax returns with “modified AGI [adjusted gross income] in excess of $1 million.” This means about $400 billion of business income would be subject to Mr. Reid’s profits surtax.  Mr. Obama’s own Treasury Department examined 2007 IRS data and found 392,000 returns with incomes above $1 million. Some 311,000, or more than three out of four, were classified by Treasury as “business owners.”

BACKGROUND ON JOBS COALITION LETTER TO CONGRESSS THIS WEEK….

Jobs Coalition Blasted Obama-Stabenow Tax Hike Proposal

‘Would Seriously Impair Our Ability’ ‘To Put Our Unemployed Back To Work’

“America’s job creators… are critical to the effort to rebuild our economy and create the jobs necessary to put our unemployed back to work. Unfortunately, the Senate is expected to take up yet another bill that, if enacted, would seriously impair our ability to accomplish that goal.” (Tax Relief Coalition, Letter To Congress, 11/30/11)

• “… the proposal before the Senate is a job killing punitive tax hike that moves our tax code in the exact opposite direction from where we should be going if we want to see job creation and economic growth. Thank you in advance for opposing this job-killing tax increase.” (Tax Relief Coalition, Letter To Congress, 11/30/11)

National Association Of Manufacturers: “The National Association of Manufacturers (NAM) … strongly oppose a proposal under consideration that would impose a permanent surtax on individual taxpayers with income over $1 million. Specifically, the proposal before the Senate would impose a permanent anti-growth surtax on top of an already outdated tax code.” (National Association Of Manufacturers, Letter To Senators, 11/30/11)

‘4 Out Of 5 Of The Taxpayers Who Will Face This Surtax Are Business Owners’

“Most importantly, the burden of the proposed tax increases would fall disproportionately on the income of America’s small and mid-sized businesses who pay taxes at individual rates.” (Tax Relief Coalition, Letter To Congress, 11/30/11)

• “According to a recently-released Treasury Department study, 392,000 taxpayers reported incomes exceeding $1 million in 2007, 331,000 of those returns included business income, and 311,000 were ‘business owners’ under the Treasury Department’s narrow definition. In short, the Obama Administration’s own data demonstrates that 4 out of 5 of the taxpayers who will face this surtax are business owners – and thus, increasing the tax burden on these business owners will reduce the amount of capital that they would otherwise have available to invest in their company or hire additional workers. In sum, the Senate legislation would raise tax rates on hundreds of thousands of business owners, a job killing tax hike to pay for a bill purported to strive for job creation.” (Tax Relief Coalition, Letter To Congress, 11/30/11)

“The Tax Relief Coalition (TRC), an organization of more than 1,000 trade associations, corporations and advocacy groups …” (Tax Relief Coalition, Letter To Congress, 11/30/11)

“TRC members represent 1.8 million businesses of all sizes, from every state and from every industry sector – businesses that invest in our economy and create jobs.” (Tax Relief Coalition, Letter To Congress, 11/30/11) 

US Chamber Of Commerce

National Federation Of Independent Businesses

National Association Of Manufacturers

National Association Of Wholesaler-Distributors

Associated General Contractors

International Foodservice Distributors Association

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