WASHINGTON, D.C. — U.S. Rep. Charlie Dent (PA-15) issued the following statement on House passage of H.R. 1586 which imposes permanent tax increases on job creators in order to fund a second infusion of federal aid to delay state budget shortfalls for six additional months:
“This week, Congress adopted shortsighted policy that temporarily bandages the states’ budget crises, funded by permanent tax increases that will inhibit our economic recovery. While families and small businesses make difficult choices to balance their budgets, the federal government has provided a “one-time” bailout to the states to avoid budget shortfalls for 6 months. Don’t be alarmed if you’re feeling a sense of déjà-vu. At the time of its passage, the so-called Stimulus Bill, which provided significant aid to state and local governments, was touted as a “one-time appropriation.” In fact, the U.S. Department of Education referred to funding included in the measure to supplement states' education costs as “a historic infusion of funds that is expected to be temporary”.
In addition to delaying serious budgetary decision making on the state level, this legislation is paid for with counterproductive tax increases that will 'hinder job creation, decrease the competitiveness of American businesses, and deter economic growth,' according to the U.S. Chamber of Commerce. Though some of the legislation's strongest supporters have promised it will "save" or "retain" government jobs, the imposition of additional tax burdens on U.S. multinational companies eager to employ Americans will lead to greater job losses. Some estimate private sector job losses resulting from these tax increases could reach 140,000. Our economy can ill-afford additional contraction in the private sector, particularly on the heals of the 2.5 million private sector jobs that have been lost since the 2009 stimulus.
Furthermore, the impact of these tax increases will be particularly pronounced on the manufacturer sector. The National Association of Manufacturers (NAM) stated: 'An estimated 22 million people in the United States – more than 19 percent of the private sector workforce and 53 percent of all manufacturing employees – are employed by companies with operations overseas. Manufacturers feel strongly that imposing $9.6 billion in tax increases on these companies as proposed in the Senate Amendment to H.R. 1586 will jeopardize the jobs of American manufacturing employees and stifle our fragile economy.'"