Issue Position: Taxes and Spending

Issue Position

Tax Relief

Providing Tax Relief for Pennsylvania Families and Businesses

Raising taxes during an economic downturn is the last thing that government should be doing. Congress should be cutting spending and putting more money back into the pockets of families, seniors and job creators.

Jim supports extending the 2001 and 2003 tax cuts which, if left to expire, would force an average $2,000 per year tax increase on Pennsylvania families and $4,000 on small businesses, according to the US Department of the Treasury. Many popular tax provisions, including marriage penalty relief, the child tax credit, elimination of the death tax, reductions in dividend rates that help seniors and families invest, and the 10% tax bracket for low income families, would all reset to higher levels. In fact, the repeal of the marriage penalty was originally introduced by Congressman Gerlach and signed into law by the President in 2003 as part of that very important tax relief initiative.

While some politicians use a politically convenient talking point while speaking in favor of raising the top two income tax rates "for the wealthy," the reality is the non-partisan Joint Committee on Taxation found that this tax increase would hit half of small business owners in this country. And, because small businesses account for 70% of job creation in America, this ill-timed tax increase would have a major impact on job growth and economic recovery.

Jim has consistently voted to protect middle class taxpayers from the Alternative Minimum Tax, opposes reinstating the "death tax" that unfairly penalizes family-owned farms and small businesses, and has opposed a new "value-added tax," which would further cripple our manufacturing industry in the US and stifle job growth.

Protecting Taxpayers from Wasteful Government Spending and Massive Debt

Jim Gerlach voted against the 2010 budget, increases in our national debt limit, and supports a balanced budget amendment that would prevent Congress from enacting budgets that spend more than the government has.

Last year's budget spent $1.4 trillion more than the government took in, and this year Washington is well on its way to take on another $1.3 trillion in debt. The massive new debt accrued in just two years will surpass the entire federal budget for 2006. The staggering amount of money being spent in Washington is putting us on a path to doubling the national debt in five years and tripling it in 10 years, according to the President's own budget estimates.

With projections of Washington running annual $1 trillion deficits, and government actuaries claiming the current path is "unsustainable," Congress must look to end the spending addiction and put America on a stable fiscal path. Our debt crisis is mortgaging away the future of our kids and grandkids, and sinking us deeper in debt to foreign countries - ultimately jeopardizing our national security.

Jim has never voted for a congressional pay-raise, and has voted against wasteful government projects like the Bridge to Nowhere.