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Will Dahlkemper Pledge to Stop Tax Hikes on Small Businesses Before Skipping Town?

Will Dahlkemper Pledge to Stop Tax Hikes on Small Businesses Before Skipping Town?

While Dems Look to Adjournment, Tax Hikes on Working Families, Small Businesses are Still on the Table
Washington- As Democrats return to Washington, fresh off an eight week summer recess with another failed attempt at recovery under their belts, they are already looking to early adjournment as they attempt to dodge the tough questions on their scheduled tax hikes. While Kathy Dahlkemper and her Democrat friends face a bruising uphill battle to re-election this November, imposing tax increases on anyone, particularly on small business owners, would only prove to be more problematic for already disadvantaged Democrats. With tax hikes on the way at the end of the year, will Dahlkemper flee town and give up her last chance before Election Day to provide some much-needed relief to Pennsylvania families and small businesses?
“For the sake of our economy, Kathy Dahlkemper and Democrats in Congress must pledge not to skip town until they have passed legislation that would eliminate tax hikes for anyone, particularly on small business owners fighting for their livelihood in this recession,” said NRCC Communications Director Ken Spain. “While working families and small business owners across the country are bracing for massive tax hikes, Washington is only piling on the uncertainty as they attempt to avoid action on their scheduled tax increases. It’s time that Kathy Dahlkemper finally stand up to President Obama and the Democrats’ job-killing policies and pledge not to support adjournment unless there has been an up or down vote on stopping any and all tax hikes from occurring.”
Without action from Congress, Americans at every income level would face tax increases at the end of the year, including middle-class families and small business owners already struggling in the midst of the recession – and analysts predict that it could further devastate an already weakened economy.
“Extending the Bush tax cuts for all income levels beyond year-end would add a ‘couple tenths’ to US economic growth, while allowing the tax cuts to expire would result in ‘well over a percentage point’ hit, Jan Hatzius, chief U.S. economist at Goldman Sachs told CNBC.
“‘If everything was allowed to expire, as is the current legislation at the end of this year, that would be a major impact,’ Hatzius said.” (“Ending Bush Tax Cuts Will Hurt Economy: Goldman Analyst, CNBC, 09/13/10)
But with midterm elections looming, Congress is not expected to accomplish much.
 “As Congress returns from its August recess, it faces a full plate of legislation, including leftovers from the summer and new offerings from President Obama. But with lingering partisan rancor—and the midterm election season revving into full gear—observers wonder whether Congress will finish anything during the next month.”
“Extension of the Bush-era tax cuts could take up much of the congressional oxygen—likely carrying over into a lame-duck session after the November elections. In a speech last week in suburban Cleveland, Obama aggressively pushed his proposal to extend the tax cuts for most Americans, but to allow the rates to rise for individuals earning more than $200,000 annually and joint filers earning more than $250,000.” (Alex Parker, “Congress Not Expected To Do Much With 2010 Election Looming,” US News and World Report, 09/14/10)
In an already struggling economy, uncertainty about the Democrats’ looming tax-hikes is contributing to the nation’s unemployment crisis.
“Congress’ inability to make a decision about the fate of Bush-era tax cuts is contributing to the unemployment crisis facing the country, according to the Labor Day 2010 report by the National Association of Manufacturers (NAM).
“‘Small businesses are America’s job creators, responsible for 60 percent of the net new jobs created in the last decade,’ the report states. ‘But uncertainty about looming tax hikes has stunted employment growth and until Main Street begins to hire, the unemployment rate will remain unacceptably high.’” (Jay Heflin, “Uncertainty of Bush tax cuts affects hiring, study states,” The Hill, 09/02/10)

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