Vote Comes Despite High Unemployment & Warnings From Farmers & Small Business Owners That Higher Taxes Would “Devastate” Job Growth

Just as she’s done over 150 times during her career in Washington, Michigan’s liberal Senator Debbie Stabenow stood with President Obama today and voted for a massive tax hike on Michigan small businesses, families, farmers and ranchers.  Stabenow even voted to reinstate the massive death tax, despite previously claiming to oppose it.

“Liberal Debbie Stabenow has never met a tax hike that she didn’t like and once again, standing behind President Obama was more important for Senator Stabenow than standing up for Michigan farmers and small business owners,” National Republican Senatorial Committee (NRSC) spokesman Lance Trover said today.  “Under Senator Stabenow and President Obama’s watch we’ve seen 41 straight months of unemployment above 8 percent, an almost $16 trillion debt and over 1,100 days without a budget.  If Michiganders want to reverse course and restore common sense in Washington, they can start by retiring Debbie Stabenow in November.”

Remarkably, Stabenow’s vote came just hours after President Obama’s own Treasury Secretary testified before a House Committee and admitted that the “economy is not growing fast enough and unemployment is very high.”  

Stabenow’s vote should hardly come as a surprise since she voted against both the 2001 and 2003 tax relief packages.

Interestingly, Stabenow is also on record saying she supports reducing the estate tax.

BACKGROUND.…

Treasury Secretary Timothy Geithner Admitted Just Today That “The Economy is Not Growing Fast Enough.” GEITHNER: “But I’ll tell you my general view on this. The economy is not growing fast enough. Unemployment is very high. Huge amount of damage left in the housing market.” (House Financial Services Committee, U.S. House Of Representatives, Hearing, 7/25/12)

Stabenow Voted Against The 2001 Republican Tax Cuts. “Adoption of the conference report on the bill that would reduce taxes by $1.35 trillion through fiscal 2011 through income tax rate cuts, relief of the ‘marriage penalty,’ a phaseout of the federal estate tax, doubling the child tax credit, and providing incentives for retirement savings. A new 10 percent tax rate would be created retroactive to Jan. 1, and taxpayers would get rebate checks this summer of $300 for singles and $600 for couples. The bill would double the $500-per-child tax credit by 2010 and make it refundable; raise the estate tax exemption to $1 million in 2002 and phase out the tax over 10 years; increase the standard deduction for married couples to double that of singles over five years, beginning in 2005; and increase annual contribution limits for Individual Retirement Accounts to $5,000.” (H.R. 1836, CQ Vote #170: Adopted (thus cleared for the president) 58-33: R 46-2; D 12-31, 5/26/01, Stabenow Voted Nay)

Stabenow Voted Against The 2003 Republican Tax Cuts. “Adoption of the conference report on the bill that would provide $350 billion in tax breaks over 11 years. It would provide $20 billion in state aid that consists of $10 billion for Medicaid and $10 billion to be used at states’ discretion. The agreement includes a new top tax rate of 15 percent on capital gains and dividends through 2007 (5 percent for lower-income taxpayers in 2007 and no tax in 2008). Income tax cuts enacted in 2001 and scheduled to take effect in 2006 would be accelerated. The child tax credit would increase to $1,000 through 2004. The standard deduction for married couples would be double that for a single filer through 2004. Tax breaks for businesses would include increasing the deduction that small businesses could take on investments to $100,000 through 2005.” (H.R. 2, CQ Vote #196: Adopted (thus cleared for the president), with Vice President Cheney casting a ‘yea’ vote to break the tie, 50-50: R 48-3; D 2-46; I 0-1, 5/23/03, Stabenow Voted Nay) 

In 2006, Stabenow Claimed She Supported “Reducing The Estate Tax.” STABENOW: “My record is clear on consistently supporting common sense, fiscally responsible tax cuts for American workers and their families. I have voted for eliminating the marriage penalty, increasing child care tax credits, reducing the estate tax.” (“Bouchard, Stabenow Weigh In On Issues,” The Associated Press, 10/3/06) 

July 13, 2012, Majority Leader Reid Announced A Tax Plan That Only Extended The Tax Cuts For Those Earning Less Than $200,000. “Senate Democrats will push a one-year tax cut proposal for individual Americans earning $200,000 or less annually, setting the stage for a showdown in coming weeks with Republicans over extending the Bush tax cuts, according to a new plan circulating on Capitol Hill.” (John Bresnahan, “Senate Dems Push One-Year Tax Cut,” Politico, 7/13/12)

• “With Only 53 Democrats – And Reid Calling For A Straight Majority Vote For Any Tax Proposal – Democratic Leaders Cannot Afford To Lose Any Support.” (John Bresnahan, “Senate Dems Push One-Year Tax Cut,” Politico, 7/13/12)

ADDITIONAL BACKGROUND….

Michigan Farmers & Small Business Owners Spoke Out Against Debbie Stabenow’s Tax Hike

FARM BUREAU: “Estate taxes are especially troublesome for farmers and ranchers. [The Reid Proposal] fails to provide any estate tax relief which would allow a $1 million per person exemption and 55 percent top rate to be reinstated on Jan. 1, 2013. A $1 million exemption is not high enough to protect a typical farm or ranch able to support a family from estate taxes…”  (Letter To U.S. Senators, American Farm Bureau Federation, 7/24/12) 

CHAMBER OF COMMERCE: “Increasing taxes now will undermine economic recovery, choke off job creation, and take money out of the hands of the individuals and businesses that create jobs, spur investment, boost consumption, and promote economic growth.” (“Key Vote Alert On S. 3412, The “‘’Middle Class Tax Cut Act,’” The Chamber Of Commerce, 7/24/12) 

• “The Chamber urges you to oppose S. 3412, which would impose a massive tax hike on American businesses.” (“Key Vote Alert On S. 3412, The “‘’Middle Class Tax Cut Act,’” The Chamber Of Commerce, 7/24/12) 

NATIONAL FEDERATION OF INDEPENDENT BUSINESS: “This legislation would raise tax rates on small businesses at a particularly fragile time for the economy, stifling growth and investment when we can least afford it.” (National Federation Of Independent Business, Letter To Senators, 7/24/12)

• “This tax hike disproportionately impacts small businesses… will shrink the economy by 1.3 percent and result in the loss of 710,000 jobs.” (National Federation Of Independent Business, Letter To Senators, 7/24/12)

• “…the maximum estate tax rate will revert to 55 percent while the exemption level will drop to $ 1 million. This will increase the number of estates hit with the tax from 3,600 to 46,700, including 21,700 small businesses.” (National Federation Of Independent Business, Letter To Senators, 7/24/12)

NATIONAL ASSOCIATION OF MANUFACTURERS: “…S. 3412 would result in higher taxes for the vast majority of manufacturers in the United States, threatening their ability to create jobs. …the possibility of these tax increases has forced many manufacturers to put investment and hiring plans on hold.” (National Association Of Manufacturers, Key Manufacturing Vote Letter, 7/14/12)

• “…the bill’s plan to restore estate tax rates and exemptions to pre-2001 levels would hit thousands of family-owned SMMs across our nation.” (National Association Of Manufacturers, Key Manufacturing Vote Letter, 7/14/12)

• “As our economy struggles to regain its footing, now is not the time to increase taxes on job creators and investors.” (National Association Of Manufacturers, Key Manufacturing Vote Letter, 7/14/12)

NATIONAL ASSOCIATION OF WHOLESALER-DISTRIBUTORS: “This legislation would in fact do very great harm to the middle class it purports to help.” (National Association Of Wholesaler-Distributors, Open Letter To Senators, 7/24/12)

• “Despite the unemployment crisis, the Senate is set to vote on legislation which will indisputably make matters worse.” (National Association Of Wholesaler-Distributors, Open Letter To Senators, 7/24/12)