Congresswoman McCollum's Statement on the Small Business Tax Credit
I rise in strong opposition to H.R. 9, the so-called Small Business Tax Cut Act. This bill is an incredible waste of taxpayer money that will do nothing to grow America's economy or create jobs.
House Republicans admit that H.R. 9 will add $46 billion to federal deficits and force our country to borrow more money from foreign countries such as China. They argue deficit-spending is worthwhile because their bill will create jobs and stimulate economic growth. Unfortunately, there is absolutely no evidence to support their claim. The nonpartisan Joint Committee on Taxation determined the economic impact of this Republican bill is ''so small as to be incalculable.''
The country's wealthiest individuals and corporations are the true beneficiaries of this legislation. H.R. 9 will provide over 125,000 millionaires with an average tax cut of $58,000. According to the nonpartisan Tax Policy Center, nearly half of the bill's benefits go to individuals with annual income over $1 million even though this group comprises just 0.5 percent of all taxpayers and 4 percent of all small-business employers. The largest tax breaks in this bill go to law partners, corporate consultants, lobbyists, hedge fund managers, and other highly profitable, private enterprises that do not need extra support from America's taxpayers.
The tax benefits in H.R. 9 are so poorly targeted that reality-show stars Donald Trump, Paris Hilton and Kim Kardashian qualify as "small businesses'' and will receive taxpayer-financed handouts. In fact, this legislation provides tax breaks to pornography shops and corporations that ship American jobs overseas.
This legislation represents a new low point for the House Republican majority. It is so flawed that even fellow conservatives are mocking the bill. The Wall Street Journal editorial page calls H.R. 9 a ''tax gimmick.'' Former economic advisor to President Reagan Bruce Bartlett said H.R. 9 ''will do nothing whatsoever to increase employment. It is nothing more than an election year give-away to a favored Republican constituency and should not be taken seriously.''
H.R. 9 is a signal to the American people that House Republicans are officially out of ideas for creating jobs. This bill merely recycles the Bush Administration's failed economic policies that ballooned the national debt and produced the lowest rate of job creation since World War Two. The nonpartisan Congressional Budget Office analyzed a range of policies that could be enacted to strengthen the economy and promote economic growth: this measure ranked second to last.
I urge my Republican colleagues to abandon this dead-end legislation and instead, join with Democrats to support proven job creation measures, including bonus depreciation for main street businesses.