Contact: Van Wanggaard
John Kerry Realizes What John Lehman Doesn’t
[RACINE] – Earlier this week, several Democrats on Capitol Hill hinted at the possibility of allowing the Bush-era tax cuts to continue. The tax cuts, which liberals ardently bashed as “tax cuts for the rich,” are set to expire, but some Democrats (most notably Sen. John Kerry) are changing their tune and admitting that the cuts need to remain in place to stimulate the nation’s economy.
Just last year, a similar debate took place during the 2009-10 state budget deliberations. Incumbent Senator John Lehman (D-Racine) and his liberal allies argued that to close the multi-billion dollar budget deficit, tax increases on Wisconsin’s top-earners were necessary.
A new income tax bracket was created that increased the top marginal tax rate to 7.75%, which was estimated by the Legislative Fiscal Bureau to affect over 28,000 taxpayers. The problem with Senator Lehman’s logic is that this $287 million tax increase doesn’t just pull money from the wallets of “rich people.” It is a direct tax increase levied on our state’s job creators: small businesses. 70% (or almost 20,000) of those affected by the tax increase are small businesses filing as S-Corps or sole proprietors.
“Senator Lehman has repeatedly attacked me for supporting tax cuts for the rich, but that is nothing more than desperate election-year rhetoric to deflect attention away from the huge tax hit that he levied on Racine’s small business community,” Wanggaard stated.
“We can’t trust Senator Lehman to do what’s right for Racine. He has proven time and time again that he will sacrifice local jobs to pay for pet projects backed by liberal special-interests. Lehman is spinning his wheels to figure out how to justify this job-killing tax assault to his constituents.”
As Racine County suffers from nearly double-digit unemployment, this move is yet another blow to companies that are struggling to make ends meet. It will certainly lead to lost jobs, and will likely lead to businesses shutting down or moving out of the area.
“John Kerry realizes that hammering job-creators with tax increases is bad economic policy. It is unfortunate for Racine that John Lehman doesn’t.”