Graves Votes Against Tax Hike on Small Businesses, Farmers

Press Release

Today, U.S. Congressman Sam Graves voted against a massive tax hike on small businesses and family farmers. The tax package brought to the House floor by the majority failed to extend tax relief for many job creators, effectively raising their taxes to the highest rates in almost 10 years.

"Small businesses are the lifeblood of our economy," Graves said. "If we want to encourage a stable recovery, we must do everything we can to help them thrive. While I strongly support a permanent extension of all current tax rates, I refuse to back legislation that would punish the very entrepreneurs we rely on to create a majority of new jobs."

According to Alan Vaird of the non-partisan American Enterprise Institute, Internal Revenue Service data shows that a significant portion of those who file sole proprietorships, S corporations and partnerships on their personal returns would see their taxes go up were this legislation to become law. In fact, the National Association of Manufacturers found over 70 percent of American manufacturers will be significantly impacted by these higher rates.

The bill also does not protect small businesses and family farms from the return of the death tax next year. The death tax, which is currently repealed for 2010, will increase dramatically with a top rate of 55 percent and a low exemption amount of $1 million beginning January 1, 2011.

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