“Some American business owners would face tax rates in excess of 50 percent. This is the last thing they need,” said Republican Leader on the House Committee on Ways and Means Rep. Kevin Brady (R-TX) in  Tuesday’s Republican Meeting titled “Democrats’ Tax Hikes Crush American Small Business.” 

Rep. Brady warned against Democrats’ crippling $400 billion tax hikes on small businesses, many of which are facing the difficult decision of raising prices on consumers as they face supply chain hurdles and hiring challenges.

READ: Everything You Need to Know About Democrats’ $4 Trillion Tax-and-Spend Bill

CLICK HERE to watch the full meeting.

Key excerpts from Rep. Brady’s remarks appear below.

“As you know, Friday’s miserable jobs report leaves little question as to why so many Americans are questioning President Biden’s competency to heal our economy.

 

“In March, with the help of congressional Democrats, the president rammed through nearly $2 trillion in so-called COVID stimulus. 

 

“This bill paid too many Americans more to stay home than to reconnect to work and caused prices to skyrocket. The San Francisco Federal Reserve has found that the bill contributed to the labor shortage, and by extension, inflation.

 

“And month after month, the gap between the jobs promised as a result of that bill, and the actual jobs, has remained staggeringly large. 

 

“In fact, right now the Biden jobs deficit is nearly one million jobs short of promises. No one has felt this gap more forcefully than Main Street, who for months, has faced enormous challenges in their hiring efforts.

 

“This tax-and-spend bill gives a tax cut to the top 10 percent of highest earners in the country, while giving America’s working families nothing, or in some cases a tax hike. 

 

“Mom-and-pop shops across the country are already being squeezed with hiring challenges and supply chain hurdles. Many are being forced to make the difficult decision to raise their prices, which are passed onto their consumers.

 

“In fact, this nearly $5 trillion bill includes over $400 billion in small business tax hikes and new taxes on struggling businesses.

 

“Some American business owners would face tax rates in excess of 50 percent.

 

“This is the last thing they need.”

CLICK HERE to read Rep. Brady’s full remarks as prepared for delivery.

Good morning and welcome to this Ways and Means Republican meeting examining the extent of Democrats’ devastating small business tax hikes.

 

Thank you all for being here today.  

 

I want to thank my friend and colleague, the Republican Leader for the s  tax policy subcommittee, for leading this discussion today.

 

As you know, Friday’s miserable jobs report leaves little question as to why so many Americans are questioning President Biden’s competency to heal our economy.

 

In March, with the help of congressional Democrats, the president rammed through nearly $2 trillion in so-called COVID stimulus. 

 

This bill paid too many Americans more to stay home than to reconnect to work and caused prices to skyrocket. The San Francisco Federal Reserve has found that the bill contributed to the labor shortage, and by extension, inflation. 

 

This is hitting average families hard. Since early spring, the average family has lost about $377 a month in real disposable income under this President. 

 

And month after month, the gap between the jobs promised as a result of that bill, and the actual jobs, has remained staggeringly large. 

 

In fact, right now the Biden jobs deficit is nearly one million jobs short of promises. No one has felt this gap more forcefully than Main Street, who for months, has faced enormous challenges in their hiring efforts.

 

Last month, in choosing to double down on their approach from earlier this year, House Democrats rammed through the single most reckless and irresponsible spending bill in our nation’s history.

 

If made permanent–as Democrats have insisted they would do–this tax-and-spend bill would cost nearly $5 trillion according to the Committee for a Responsible Federal Budget. 

 

This tax-and-spend bill gives a tax cut to the top 10 percent of highest earners in the country, while giving America’s working families nothing, or in some cases a tax hike.

 

In fact, this nearly $5 trillion bill includes over $400 billion in small business tax hikes and new taxes on struggling businesses.

 

Some American business owners would face tax rates in excess of 50 percent.

 

The very definition of socialism is when the government has a greater claim over your earnings than you do, and unfortunately under the Democrats’ tax rate that’s exactly what happens.

 

It’s no wonder small business optimism has plummeted. 

 

Mom-and-pop shops across the country are already being squeezed with hiring challenges and supply chain hurdles. Many are being forced to make the difficult decision to raise their prices, which are passed onto their consumers.

 

This is the last thing they need. 

 

Rewinding to just four years ago, congressional Republicans and President Trump worked together to pass a transformational tax reform that set the stage for strong economic growth. 

 

The Tax Cuts and Jobs Act created the first ever small business tax deduction.

 

And it paid off for American workers. 

 

In 2019, at least 21 million small businesses and their employees benefited by the more than $66 billion in savings the small business deduction created.

 

Before the pandemic, America recaptured the title as the most competitive economy on the planet, bringing manufacturing jobs and investment back home to America from overseas.

 

And because of these tax cuts, we saw household income increase more in one year, 2019, than during all eight years of the Obama-Biden administration combined. We saw millions of Americans lifted out of poverty, and for the first time in half a century, income inequality shrinking.

 

How did this happen? Of course, the government didn’t do that. 

 

It was Main Street businesses that invested their dollars into their workers, into technology, and into expanding, which benefited their communities.

 

Like many Americans, I worry economic growth has peaked under this Presidency. 

 

That’s why I’ve called on the Senate to suspend any further consideration of the President’s nearly $5 trillion tax-and-spend bill until he can demonstrate that he can heal this economy, get Americans back to work, and reduce inflation.

 

The last thing Main Street America needs are these job-killing tax hikes.