Well, I thank the gentleman from Pennsylvania, and just like him, I haven't been in the State legislature. I have been a small businessman all of my life. What we know about small businesses is that they are the number one job creator in…
Well, I thank the gentleman from Pennsylvania, and just like him, I haven't been in the State legislature. I have been a small businessman all of my life.
What we know about small businesses is that they are the number one job creator in America. As we heard the gentleman say awhile ago, over nearly 7 million new jobs have been created in this country in the last 3\1/2\ years. Quite honestly, most of that has been from small businesses all across this country.
One of the things that a lot of people don't know that have not had their own business is that small businesses are also big taxpayers. What they do not also realize is that in some cases we ask our small businesses to pay more taxes than we do other folks. That is because our small business people, in addition to income tax, have to pay self- employment tax.
The way you build a business in America is that you do it by taking money that you are making and reinvesting it in your business, and that is the way you grow your business. It is these growing businesses in America that have been growing America.
When I first got in the home building business, I had a young man who was a plumbing contractor, and he too was starting his new business. And he was starting it with basically one truck
and a helper. So when we started together, I had a small building business and he had a small plumbing company. What I watched my friend Bobby do over the years is build his business one truck at a time. He would work hard and pretty soon he had built up his business and he had to go buy another truck. You know what happens when a plumbing company buys another truck? They have to hire what? More people. And pretty soon he worked hard and he had to buy another truck. And you know what happened when he bought another truck? He had to hire more people.
But Bobby couldn't have bought those trucks if he hadn't been building his business, having money and capital in his business to be able to go to his banker and say, you know, I am building a business here and I have equity in my business. But what happens is the American Government says, oh, Mr. Small Businessman, you are making money, so we are going to reach in there and in some cases take half of that small business's money. So that causes the business to grow at half the rate as it could if it wasn't paying exorbitant taxes.
I would say to the gentleman from Pennsylvania, as you know, it is not just Big Government taxing, but it is the regulation that also our small businesses all across the country are worried about. When you add onto small businesses not only the carrying of a tax burden, but all of the burdens of regulation that we put on these small businesses, and on top of that you put a lawsuit environment in this country that on any given day a small businessman can lose his business, I say to my friend that small businesses are about to be entered onto the Endangered Species List.
Because, quite honestly, we have policy in this country that is not friendly to small businesses, the very businesses, the very people that have built this great Nation. And so when I hear folks on the other side of the aisle talk about we have a plan, well, I hope that plan is not to continue the trend that they have done in the past, and that is taxing small businesses out of existence. And you get a little nervous when they change the rules in this House that, as the gentleman said a while ago, that instead of taking three-fifths of this body, it only takes a simple majority to increase taxes.
Now, I do applaud our friends, the Blue Dogs, for one of the things that they said tonight, and that is that we do need to do something about deficit spending in this country. And I am ready to join across the aisle with my friends and say, let's do that by addressing spending.
If you really want to do good things for America in the future, you don't do it by taxing our small businesses out of existence. You do it by making America a more fiscally sound country. You ask the American Government to do the same thing that these small businesses do. They are not able to, whenever they need more money, to go get it from somebody else by just reaching in. You don't go to a customer after you finish the job and say, ``you know, what, I told you it was going to be one price, but I am going to charge you another price.'' You don't keep your business very long. So I want to join our friends to do that. But I do not want to join our friends on a path of taxing because I would tell you, in 2003, the unemployment rate in America was 6.1 percent. Today it is 4.5 percent. More people are employed today in America than any other time in the history of this Nation. More people own homes today than any other time in the history of this Nation. This is a prosperous time. And we got here by leaving the decision on how people spend their money to the people who make the money and not big government. Big government doesn't grow America. Americans grow America.
I thank the gentleman for having this time tonight, and I look forward to continued dialogue with my colleagues as we really talk about making sure that our American businesses don't end up on the endangered species list.
The gentleman from Pennsylvania is correct. I think one of the concerns I have about the death tax is, in many cases, it has the potential to rob some of the smaller communities in America from some of the mainstays in their community. I think about the farmer who worked for 20, 30, 40 years putting together pieces of land, making his operation a little bit larger so that he can compete today in a global economy and wants his son, our sons to be a part of that business in the future. But as the gentleman, my good friend Mr. Conaway, my neighbor to the south, said: Depending on what day he dies, he may not have any land to leave his sons, or they may have a new partner.
I do a number of town hall meetings as I travel through out my district. I have a very large district, 29,000 square miles, 27 counties. And one evening I was talking to a group of citizens in a little small community, and after that was over, I had a young woman come up to me and say, ``You know, Congressman, we have had this ranch in our family for nearly 100 years, and recently my father passed away, and we are faced with the fact that we may have to sell a part of this ranch to keep some of it.'' And I think about a small auto dealership that the founder of that built up over the years, worked hard, paid taxes already.
I think the egregious thing about this death tax is we have been talking about the taxes that have been imposed on these small businesses over the years, and they work hard and in spite of paying all those taxes, property taxes, income taxes, employment taxes, then at the end, we say, ``You did such a great job of building that business, we are going to tax it one more time.'' And in many cases, it has the potential to put those businesses out of business and take away in some cases a fairly major employer in that community.
So I think one of the things that we have been kind of saying tonight, and my colleagues, is that we are at a crossroads here, and we have some very important decisions to make on behalf of the American people here for the next few years, and I am concerned, as many of you are, that some of these businesses, if we don't act in a way to be friendlier to small business, keeping many of these tax cuts permanent, and if we don't look at permanently eliminating the death tax, that again we could really penalize these small businesses.
The gentleman makes a great point. Not only does, in many cases, it affect the families that own that property, but in many cases, let's say you have got a heating and air conditioning business here that employs 50, 60 people. And all of a sudden the founder passes away, and the next day the family has to come and say to these employees, ``I don't know whether we are going to be able to continue this business or not because we are going to have to borrow a bunch of money to pay the taxes.'' And in many cases, putting a bunch of debt on a new business or even an existing business requires servicing that debt and has an impact. And so then it is a ripple effect because that tax base that has been in that community for a number of years is in jeopardy, and the commitment and the contribution that that small business has made to that community sometimes disappears.
I think the fact that we said earlier, and I think all of us said, that America was built by these small businesses, small ranchers, doctors, entrepreneurs all across this country, we built this country that way, but we have the danger of tearing it down with a poor taxing policy.