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President Obama is once again calling for an extension of the current income tax rates for middle class Americans but he is also demanding an increase for Americans making more than $250,000 per year. At issue is the so-called "Bush tax cuts." The original plan passed in 2001 but Senate Democrats forced the cuts to be removed at the end of 2010. At that time, Congress and President Obama agreed to extend the rates for another two years. Obama wants an extension of another year for those below the top tax bracket and Republicans want a year's extension for all taxpayers.
Rep. Lee Terry, R-Neb., is a member of the House Energy and Commerce Committee. He says while Obama is demanding that wealthier Americans pay their "fair share," the real victims in this effort are small-business owners.
"It's all politics," Terry told WND. "He's just posturing for the election."
Terry says the majority of small businesses file their taxes as individuals and many of them bring in over $250,000 per year. He says this is exactly the wrong time to be making life tougher for America's business owners.
"You're actually going to stall any growth of our economy. It's already anemic now, so why would you impact what little growth there is?"
Terry also says extending tax rates for a year does not provide any certainty for business owners - even if all tax brackets get a year's reprieve. He adds that a year's extension could give Congress enough time to welcome a new president and put forth some permanent changes in the tax code.