Straight Talk: A Fiscal Cliff Is Imminent

Statement

Dear Friends,

As summer ends and our children start a new school year, it strikes us how fast the time goes by. Soon, the holidays and a new year will be upon us. It's normally a time of celebration, but the end of 2012 is a growing worry for taxpayers because of an impending fiscal cliff. On January 1, 2013, Americans will see the increase of numerous tax rates and expiration of tax breaks. This concern is holding back an economic recovery. Just the threat of a wave of higher taxes is enough to cause many small businesses to hold off on expansions, investments, purchases and hiring. President Obama's failure to lead and insistence on tax hikes burdens the economy during a lingering jobs crisis.

The President argues that these lower tax rates are merely expiring, making the change somehow less damaging. That's ridiculous. By January 1, the current tax rates will have been in place for a decade, making them a longstanding part of planning and budgets for small businesses. This is unquestionably a massive new tax hike, and Americans cannot absorb the blow without more job losses.

President Obama knows this -- he said so clearly in 2009 -- "you don't raise taxes in a recession." Now, he is disregarding basic economics for political division. In this burdened, stagnant economy the President is willing to let taxes skyrocket to give more revenue to the government. After 43 straight months of unemployment above 8 percent, the nation needs responsible leadership from the chief executive to create jobs, not a bigger, more powerful government.

On August 22nd, the nonpartisan Congressional Budget Office issued a report that said a recession is likely next year if Congress fails to act on the fiscal cliff. This week, a group of 298 business organizations called on the President and Members of Congress to immediately enact legislation that averts the looming tax increases. On August 1st, the House voted to pass an extension of all current tax rates, with 19 Democrats joining Republicans, however, the Senate has not taken up the bill (H.R. 6169). I hope the Senate listens to the business community and puts aside politics to do what's right on behalf of America's job creators.

Sam Graves
Chairman

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