Senate GOP Leader McConnell: "A Payroll Tax Cut That Doesn't Punish Job Creators"

The president seems to have an obsession with punishing the job creators in America for some or various reasons.  Thankfully, the Republican Party in both the Senate and in the House of Representatives are not going to let him get away with taxing the most productive citizens  --  the job creators  --  in America.

Indeed, the Republican Leader in the United States Senate, Senator Mitch McConnell said this yesterday regarding Barack Obama and his fellow left-wing Democrats in the Senate wanting to punish job creators in America with gigantic tax increases: “This week, as we all know, the Senate is debating the extension of a temporary payroll tax cut that the two parties agreed to last year to help those struggling in a bad economy. But before getting into any detail about the various proposals that are being considered for extending this temporary tax cut, I think it’s important to establish a couple of things at the outset.

“First, the debate we’re having this week is not about whether to extend this temporary relief for the millions of working Americans out there who are struggling as a result of the ongoing jobs crisis. It’s about whether we should help those who are struggling in a bad economy by punishing the private sector businesses that the American people are counting on to help turn this economy around.

“The President and Democrats in Congress are saying we ought to recoup the revenue we won’t get from one group of taxpayers by socking it to another group, a significant number of whom happen to be employers. What this really means is that one way or another they want the money coming back to Washington — so that the President and his allies in Congress can divvy it up how they want, protecting and aiding the politically-favored few."

Senator McConnell ended his speech on the Senate floor yesterday by saying this: "That’s why Republicans are proposing a very different approach to paying for this extension. We can maintain this tax relief without raising taxes on job creators. If past experience shows us anything, it’s that Washington will only spend every dime it gets and then some anyway. We need to find a solution that doesn’t give more power to Washington. We’ll never get this economy going again or help people create the wealth and jobs that America needs, if we continue to allow Washington to dictate all the rules of the game when it comes to our economy.

“At the end of the day, the real question in this debate isn’t whether lawmakers in Washington should or shouldn’t extend some temporary stimulus, but whether the American people should continue to allow Washington to have so much power over their lives. That’s what this debate is really about.”

The balance of Senate Republican Leader McConnell's speech is directly below, along with a couple press releases from the Senate Republican Communications Center:

A Payroll Tax Cut That Doesn’t Punish Job Creators

‘So Republicans will put aside their misgivings and support this extension, not because we believe as the President does that another short-term stimulus will turn this economy around.  But because we know it will give some relief to struggling workers out there who continue to need it nearly three years into this presidency. Americans shouldn’t have to suffer any more than they already are for the Democrats’ failed economic policies. Republicans reject the idea that the way to help people is for the government to write them a check every once in a while or adjust their pay stub at a time of our choosing.  We think it’s time to get past the idea that government should be the sole arbiter of people’s futures and livelihoods. We need to get government out of the business of picking winners and losers. And that’s why Republicans think the real answer is broad-based tax reform that clears out the deductions and the loopholes and the special carve-outs for those who are rich enough or politically-connected enough to benefit from them.’

 

Washington, D.C. – U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Wednesday regarding a proposed extension to the payroll tax cut and the need to provide tax relief without raising taxes on job creators:

“This week, as we all know, the Senate is debating the extension of a temporary payroll tax cut that the two parties agreed to last year to help those struggling in a bad economy.

“But before getting into any detail about the various proposals that are being considered for extending this temporary tax cut, I think it’s important to establish a couple of things at the outset.

“First, the debate we’re having this week is not about whether to extend this temporary relief for the millions of working Americans out there who are struggling as a result of the ongoing jobs crisis. It’s about whether we should help those who are struggling in a bad economy by punishing the private sector businesses that the American people are counting on to help turn this economy around.

“The President and Democrats in Congress are saying we ought to recoup the revenue we won’t get from one group of taxpayers by socking it to another group, a significant number of whom happen to be employers. What this really means is that one way or another they want the money coming back to Washington — so that the President and his allies in Congress can divvy it up how they want, protecting and aiding the politically-favored few.

“And this really sums up the whole story of this President and the economic policies he’s promoted over the past few years: send your money to Washington — so the President and his allies in Congress can spend it their way, on things like turtle tunnels or bailing out politically-connected investors at failing solar companies. The Democrats can say they just want some people to pay a little bit more to cover this or that dubious proposal. But what they don’t tell you is that 80 percent of the people they want to tax are business owners — in other words, the very people we’re counting on to create the jobs that we need in this country. Think about that: the Democrats’ response to the jobs crisis we’re in right now is to raise taxes on those who create jobs. This isn’t just counterproductive. It’s absurd.

“And that brings me to my second point, which is this: the only reason we’re even talking about extending a temporary cut in the payroll tax right now; the only reason we’re even talking about extending unemployment insurance right now, is because President Obama’s economic policies have failed working Americans. Democrats and liberal pundits are fond of saying that Republicans are rooting against the economy. But it’s easy to refute that one. If Republicans wanted the economy to stall, we’d just stand on the sidelines and wave through everything this president and his Democrat allies in Congress propose. That’s what the Democrats did for two years, and now we’re living with the results. Unemployment’s still stuck at around nine percent. Fourteen million Americans are looking for work and can’t find it. Millions more are underemployed or have given up on finding a job altogether. And here we are, three years into this presidency, still talking about temporary stimulus measures.

“So Republicans will put aside their misgivings and support this extension, not because we believe as the President does that another short-term stimulus will turn this economy around.

“But because we know it will give some relief to struggling workers out there who continue to need it nearly three years into this presidency. Americans shouldn’t have to suffer any more than they already are for the Democrats’ failed economic policies. Republicans reject the idea that the way to help people is for the government to write them a check every once in a while or adjust their pay stub at a time of our choosing.

“We think it’s time to get past the idea that government should be the sole arbiter of people’s futures and livelihoods. We need to get government out of the business of picking winners and losers. And that’s why Republicans think the real answer is broad-based tax reform that clears out the deductions and the loopholes and the special carve-outs for those who are rich enough or politically-connected enough to benefit from them.

“If you’re a small business owner, we don’t think you should have to have an army of tax lawyers on staff to figure out how to keep your business profitable and your employees on the payroll. If you’re an individual, you shouldn’t have to hire an accountant to keep from getting ripped off by the IRS. We think Americans are ready for tax reform that makes the system fair for everybody — that levels the playing field, so people and small businesses can compete without having to beg for favors or loopholes. And we’re going to keep pressing for it. And part of that is looking beyond these temporary stimulus measures.

“Let’s be very clear about this: the Democrats’ quick-fix approach has failed. Nearly three years have passed since Democrats passed the mother of all stimulus bills, and we’ve got 1.3 million fewer jobs in this country than we had when the President signed it into law. And yet they’re still at it. Republicans in the House have passed an avalanche of legislation aimed at liberating the private sector and getting this economy growing again. It all dies at the Senate door. Democrats just aren’t interested. With Democrats in control of two-thirds of government in Washington, all we get is more temporary stimulus and calls to raise taxes on the very people we’re counting on to jolt this economy back to life. And that’s why we’re standing here, three years into this administration, still talking about temporary stimulus measures paid for by permanent tax hikes.

“Democrats just don’t seem interested in doing anything that will lead to real economic growth. They’re stuck on stimulus. They’re stuck on government. They’re stuck on economic policies that have already failed. So we’re not arguing against extending this payroll tax cut. We just think we shouldn’t be punishing job creators to pay for it. And we think that if this kind of temporary relief engineered at some lawmaker’s whim is the sum and substance of the Democrats’ plan for getting this economy going again, we’re really in trouble. The American people don’t want a temporary allowance from Democrats in Washington. They want us to get out of the way and lift the burdens to growth so they can get this economy going.

“That’s why Republicans are proposing a very different approach to paying for this extension. We can maintain this tax relief without raising taxes on job creators. If past experience shows us anything, it’s that Washington will only spend every dime it gets and then some anyway. We need to find a solution that doesn’t give more power to Washington. We’ll never get this economy going again or help people create the wealth and jobs that America needs, if we continue to allow Washington to dictate all the rules of the game when it comes to our economy.

“At the end of the day, the real question in this debate isn’t whether lawmakers in Washington should or shouldn’t extend some temporary stimulus, but whether the American people should continue to allow Washington to have so much power over their lives. That’s what this debate is really about.”

Jobs Coalition Blasts Employer Surtax

Major Jobs Groups Urge Senators To Oppose The Democrats’ ‘Anti-Growth Surtax’ On ‘America’s Job Creators,’ Employers

 ‘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

 

Republican Payroll Proposal

The Republican Proposal Extends Current Payroll Tax Relief, Reduces The Deficit By $111 Billion And Trims The Size Of The Federal Government

Prevents A Tax Increase, Protects Social Security: Provides a one year extension of the temporary Social Security tax holiday that passed in 2010, protecting all individuals from tax increases, including the job creators targeted by the Democrat plan. Ensures that the Social Security Trust Fund is not harmed by this temporary tax holiday.

Reduces The Deficit, Trims The Size Of Government: Reduces the deficit by $111 Billion. Uses The Simpson-Bowles model to freeze federal civilian salaries and reduce the size of the civilian federal work force.

  • Simpson-Bowles Plan: “Impose a three-year pay freeze on federal workers and Defense Department civilians. Out of duty and patriotism, hardworking federal employees provide a great service to this country. But in a time of budget shortfalls, all levels of government must trim back.” (Simpson-Bowles Commission, “The Moment Of Truth,” P.26, 12/10)
  • Simpson-Bowles Plan: “Over time, the Commission recommends cutting the government workforce – including civilian defense – by 10 percent, or by 200,000.” (Simpson-Bowles Commission, “The Moment Of Truth,” P.26, 12/10)
  • President Obama: “The hard truth is that getting this deficit under control is going to require broad sacrifice. And that sacrifice must be shared by the employees of the federal government.” (President Obama, Remarks By The President On The Federal Employee Pay Freeze, 11/29/10) 
  • CBO Table: “Budgetary Effects for… the Temporary Tax Holiday and Government Reduction Act” $111.5 Billion. (“Budgetary Effects For A Senate Proposal, The Temporary Tax Holiday And Government Reduction Act,” Congressional Budget Office, 11/30/11)

 

Means Tests Government Benefits For Millionaires & Billionaires: Adds a new means test to government health benefits, unemployment compensation and food stamps so that millionaires aren’t receiving federal benefits that are better targeted elsewhere.

  • President Obama: “I’ve said that means testing on Medicare… would be appropriate.” (President Obama, Press Conference, 7/15/11)
  • Sen. Dianne Feinstein (D-CA): “If you don't need them, if you are millionaire, why should you have these benefits?” (Sen. Feinstein, Floor Remarks, 1/25/10)
  • Jack Welch, Former GE Chairman: “I shouldn’t be getting Medicare benefits at the level I’m getting.” (Jack Welch, CNBC, 10/7/11)

 

Gives Millionaires & Billionaires Another Opportunity To Help With The Deficit:Includes Sen. John Thune’s ‘Buffet Rule Act of 2011,’ which makes it easy for millionaires like Warren Buffet who want to pay more taxes to reduce the federal deficit with a voluntary contribution via their tax returns.

  • Warren Buffet: “I think that people at the high end, people like myself, should be paying a lot more...” (ABC News’ “This Week,” 11/21/10)

 

No Tax Hike On Job Creators: Does not include a single dollar of new taxes on job creators.

  • President Obama: “The last thing you want to do is to raise taxes in the middle of a recession because that would just suck up -- take more demand out of the economy and put businesses in a further hole.” (NBC, 8/5/09)
  • President Obama: “You don't raise taxes in a recession.” (NBC, 8/5/09)