VIDEO RELEASE: “This is Small Business America”
WASHINGTON. D.C. – House Majority Whip Kevin McCarthy (CA-22) released “This is Small Business America,” a video highlighting the small business S corporations like Gorski Engineering and its 17 employees whose taxes stand to increase if President Obama’s tax hike goes into effect.
“This notion of $250,000 being the top 2% or the wealthy people in America ignores the way most small businesses work in America,” Jerry Gorski said in the video. “We just went through a horrible climate where our work was off 40%…We went through every bit of money that we set aside for a rainy day but it’s been a long rainy day. And now our company has figured out how to survive in this economy and the first thing we want to do with any income I have is tax it? That’s uncertainty.”
Gorski Engineering, founded in 1954, is a sub chapter S corporation that employs 17 people about 15 miles away from President Obama’s scheduled stop at Hatfield, PA-based Rodon Group Factory.
“The President is heading to Pennsylvania today in full campaign mode to make the argument to the American people that tax rate increases are the only solution to our nation’s economic woes,” McCarthy said. “He’s wrong. What our country needs is a boost in economic growth so our job creators, like Jerry Gorski, can start hiring again. Tax rate increases don’t stimulate economic growth – they drain small businesses of the capital they need to grow and expand their operation. Small businesses employ the majority of Americans and are the engines of our economy. They will also be the most adversely affected by an increase in tax rates.
“The White House proposal offered yesterday by Treasury Secretary Timothy Geithner shows that the Administration is interested in scoring a political victory at the expense of our country’s Jerry Gorskis. It is my hope that President Obama stops merely giving lip service to the idea of a ‘balanced approach’ to prevent the fiscal cliff and will actually come to the negotiating table where Republicans have already offered serious solutions.”
Small Business Facts:
- President Obama’s tax hike on small businesses would destroy more than 700,000 jobs and lead to lower wages, according to analysis by independent accounting firm Ernst & Young.
- According to the Joint Committee on Taxation, a tax rate hike will hurt nearly one million small businessesacross the country.
- Most small businesses file their taxes on an individual return. According to NFIB, nearly 75% of small firms are organized as “pass through” entities, such as sole proprietorships, partnerships or LLCs, where business income is passed through and taxed at the individual rate.
- Pass-through businesses are highly sensitive to individual rates. Ernst & Young’s analysis showed that a 5% increase in the individual tax rate reduced by 10% the number of owners making capital investments.
About Jerry Gorski:
Jerry Gorski, the President/CEO of Gorski Engineering, graduated from Clarkson University with a B.S. in Civil Engineering in 1982. Since, his education has continued with computer training at Cabrini College and Management Planning and Control courses at Ursinus College. Jerry is currently seated as the National Chairmen of the Associated Builders and Contractors for which he has dedicated years of service. He is also affiliated with the Design/Build Institute of America, the National Workforce Development Committee and the Pennsylvania Society of Professional Engineers. Jerry began his career in construction at the age of 14, when he started working for his Father’s company, Gorski Construction, and has been dedicated to the field ever since.