Big Taxes for Small Business: Where’s Hanabusa on Planned Tax Hike?

News Release from www. NRCC.org

Washington- In another attempt to distract from their record of runaway spending and economic failure, House Democrats have handed down new marching orders to Democratic candidate Colleen Hanabusa. Their latest strategy to gloss over their job-killing agenda is to instruct loyal followers like Hanabusa and her Washington friends to highlight the party’s so-called small business agenda. Likely missing from the latest directive, however, is any mention that Washington Democrats are pushing forward with a plan to slam small businesses with massive tax hikes that are certain to kill jobs, prevent businesses from hiring, and set the already-struggling economy back even more.

“Colleen Hanabusa can parrot her party’s talking points all they want, but the truth is that Washington Democrats have spent their time in Congress making it harder for small businesses to grow and create jobs for Hawaii workers,” said NRCC Communications Director Ken Spain. “The proof is in the results. The Democrats’ small business agenda’ has driven unemployment up to nearly ten percent and now she and her party leaders are ready to make the problem worse with a massive tax hike that small businesses simply cannot afford. With November’s elections right around the corner, the question is simple: Would Hanabusa back her party’s reckless agenda?

Democrat leaders in Washington are shifting their message once again as they attempt to salvage their prospects for November:

“House Democrats are planning a coordinated effort to highlight the party's small-business agenda this week, hoping to build momentum for stalled jobs legislation while hammering Republicans for obstructionism.

“As part of the push, Democratic incumbents and candidates are scheduling business-themed campaign events throughout the country. With an eye toward boosting its chances in November, the party also plans to release a report highlighting accomplishments by freshman and sophomore lawmakers - many of whom are among the most vulnerable this fall.” (Russell Berman, “House Democrats to Push Party Small-Business Agenda This Week,” The Hill, 8/23/10)

But a cornerstone of the Democrats’ small business agenda is a massive tax hike that will slam business owners who have already been set back by job-killing legislation forced onto them by Hanabusa's Washington friends:

“Port is among a dozen small-business owners around the country interviewed by Dow Jones Newswires who said the increase in personal tax rates could hurt their ability to make new investments or hire workers. Tax cuts enacted under President George W. Bush are slated to expire at the end of this year…Because most small firms are structured so that they pay individual rather than corporate income taxes, some would be caught by an increase in personal tax rates.” (Martin Vaughan and Corey Boles, “Small Businesses Fear Hit from Rise in Tax Rates,” Wall Street Journal, 8/23/10)

While Democrats attempt to brush aside the impact of these tax hikes, the simple truth is that they will hammer the small businesses that would drive economic recovery:

“Republicans point to data from the same [Joint Committee on Taxation] study showing that half of the $1 trillion in income projected to be earned by pass-through entities such as partnerships and S corporations in 2011 would be taxed at the higher rates.” (Martin Vaughan and Corey Boles, “Small Businesses Fear Hit from Rise in Tax Rates,” Wall Street Journal, 8/23/10)

With small businesses already suffering, what will it take for Colleen Hanabusa's Democrat friends to finally back off their latest job-killing plan and get out of the way of economic recovery?

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Democrats Want to Slam Small Businesses with Massive Tax Hike