WASHINGTON (CNN) – A leading Senate Republican said Sunday that the Obama administration should consider keeping marginal tax rates at current levels in order to help small businesses who may be struggling in the midst of a down economy.
“Don’t allow taxes to go up,” is how Senate Minority Whip Jon Kyl responded Sunday on CNN’s State of the Union when asked what the president could do to help with job creation as the national unemployment rates inches closer to ten percent.
“Targeted tax relief for Americans would be the quickest way out of this recession,” Kyl also told CNN Chief National Correspondent John King, “If you, for example, were to ensure that the top marginal rates do not increase, you’ll have small businesses ... be able to invest in their companies [and] hire more people. They are the job creators in the country and I think that will begin to get us out of the recession.”
Kyl rejected two major Democratic agenda items – health care reform legislation and an energy bill that would create a cap-and-trade system for emissions – as viable methods for helping the economy. Kyl said both initiatives, if enacted, would cause the economy to lose jobs.
Democratic Sen. Barbara Boxer of California disagreed.
Boxer, who recently introduced an energy bill in the Senate, said that legislation intended to deal with climate change and promote American energy independence would result in increased private capital coming into the economy.