Congressman Sensenbrenner (R-WI) voted today to stop at tax hike from hitting Wisconsin families and small businesses. The House passed H.R. 8 to block all tax increases scheduled for the end of the year.

The House is also expected to consider legislation, H.R. 6169, the Pathway to Job Creation through a Simpler, Fairer Tax Code Act, to provide a path  for comprehensive tax reform that will make our tax code fairer and globally competitive.

“America is fighting a record-breaking 41 months of 8 percent-plus unemployment and measly 1.5 percent economic growth; why would we want to make it more difficult for small businesses to create jobs? It doesn’t make sense to hit Americans or job creators with a bigger tax bill.

President Obama’s call for tax hikes will cost 710,000 jobs, according to a recent report by Ernst and Young.  However, businesses in Wisconsin are feeling the pressure and uncertainty of the looming tax hike, as reported in today’s Milwaukee Journal Sentinel: Manufacturing slows amid political uncertainties.

“The looming tax hike has got businesses paralyzed with uncertainty. Manufacturers in Wisconsin are in a holding pattern because people don’t know what to expect from Washington with health care or taxes. I support this legislation to stop the job-killing tax hikes and prepare Congress to undertake long term reform to make America’s tax code simpler, fairer, and more competitive. We can give job creators a hand and get Uncle Sam off of their backs and out of the way.”

Key provisions of H.R. 8 (Courtesy of Ways and Means Committee):

  • Maintain existing tax rates and thus prevent a tax hike on January 1, 2013,
  • Continue marriage penalty relief,
  • Maintain the $1,000 child credit,
  • Maintain a 15% top rate on dividends and capital gains,
  • Preserve repeal of PEP and Pease,
  • Maintain the estate tax at its 2011 and 2012 parameters (indexed for inflation),
  • Provide higher Sec. 179 small business expensing limits,
  • Provide a two-year AMT patch (covering 2012 and 2013)