Democrats have branded nearly everything from energy legislation to a bill resuscitating expired tax as jobs proposals. In his address, Kyl reasoned the labeling was an “election-year push” by Democrats to maintain their majority. He argued that most of the proposals are “just more government spending, leading to higher deficits and more debt, and few jobs.”
“The federal government has been growing at an astonishing rate,” Kyl said. “Just last year, the government borrowed $1.4 trillion. The American economy cannot grow and create good jobs if Washington takes more and more resources out of the private economy.” The senator also criticized Democrats for not yet acting on the coming expiration of tax cuts enacted under President George W. Bush. The provisions are slated to expire at the end of the year. He warned their expiration would create a historically high tax increase.
“It comes to a total of $2 trillion in new taxes over the next 10 years. And that doesn’t include the more than $500 billion in new taxes in the health spending law,” he said, adding, “Taxes will increase on families with children, on married couples, on income, on capital gains and dividends, and even after death.”
“Since most small businesses pay taxes as individuals, the increase in marginal income tax rates will hit job creators hard. Businesses are reluctant to hire because they are unsure about their future tax costs,” Kyl said. “Congress and the President should act to prevent the coming tax increase. That would provide job creators with some much needed certainty so they can begin hiring again. Unfortunately, Democrats in Congress have yet to say whether they will prevent this massive tax hike.”
Congress is set to return from Easter recess next week and House Ways and Means Chairman Sandy Levin (D-Mich) is expected to begin the process of extending the Bush tax breaks for individuals earning less than $200,000 annually and couples earning under $250,000.
Given that it is an election year, some have wondered if Congress will extend more than just the middle class Bush tax cuts. Lobbyists say Congress has until the August break to resuscitate the measures before lawmakers become totally preoccupied with getting re-elected.