Sen. Cornyn Offers Amendment To Protect Small Business Owners From Higher Taxes

Sen. Cornyn Offers Amendment To Protect Small Business Owners From Higher Taxes

Measure would make it more difficult to raise income taxes on middle-class Americans

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Senate Floor Remarks

Sen. Cornyn's remarks, as prepared for delivery, are below.

"Mr. President, my amendment creates a 60-vote point of order against any legislation that raises taxes on small businesses. This is the third year in a row that I have offered this amendment to the budget. Two years ago, the Senate accepted this amendment when 63 Senators voted in favor of it. And one year ago, 58 Senators supported it.

"It is also important to note that on each occasion, this amendment received support from both Democrats and Republicans. I know there are concerns that the amendment is "corrosive but not fatal" to the budget. But while my amendment is not fatal, what is fatal, Mr. President, is increasing taxes on small businesses—who are the engine of job creation in this country.

"I know that the almost 400,000 small businesses in Texas who employ around 4 million people especially cannot afford higher taxes.

"Last month I visited Tyler, Texas- a mid-size city of a little over 100,000 people. There I had an opportunity to sit down with local business leaders, including Don Thedford. Thirty years ago, he opened Don's TV and Appliance with just one other employee. Today, Don has nearly 50 employees that sell and service appliances and electronics.

"Don was able to grow his business during this decade, in part because of the tax relief we enacted early on. Since 2000, Don has hired 8 additional workers to install and deliver appliances, 7 more service technicians, 6 more clerical workers, 4 more sales people, and 2 more management positions. Don also added a new retirement plan for all his employees, in addition to the health benefits that he's offered for years.

"Like many small business owners, Don has seen his sales fall during the recession. When families aren't buying and selling homes, there's less demand for appliances and electronics. Higher taxes could force him to lay off some of the employees he's hired - or scale back some of the benefits he's offered.

"Mr. President, we know that more than half of the small businesses with 20 or more employees will get hit with the tax increases proposed in the Administration's budget. And we also know that small businesses created a majority of the net new jobs over the past decade. And finally, we know that two-thirds of those jobs were created by businesses similar to those that are now threatened by the Administration's proposed tax increases.

"Given that the Administration has stated a goal of job creation, I am left wondering why they would want to increase taxes on those who create jobs here at home and in the communities around the country.

"I have said this every time that I have offered this amendment, Mr. President….but it bears repeating….this point of order is an insurance policy when Congress decides to look to the pocketbook of small business owners like Don for more money instead of looking at ways to eliminate waste, fraud, and abuse in government programs.

"Raising taxes before we first eliminate wasteful spending or fix the ones that are broken is the wrong signal to give to our number 1 job creators--- small businesses, who have to balance their own balance sheet and remain competitive.

"I share the Chairman's concerns about the debt; in fact I offered an amendment in committee that would have reduced it by over $55 billion, but it was defeated by the other side.

"But with concerns that families and small businesses have about the economy, now is not the time to increase taxes. As Former Chief Justice John Marshall once said, "The power to tax is the power to destroy."

"This body should not use this power to destroy jobs. For this reason, I ask my colleagues to once again support this amendment."

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