On New Year's Day, the Senate approved a bipartisan agreement to prevent a massive tax hike on millions of American taxpayers. While imperfect, this agreement shielded 99 percent of Kentuckians from the painful effects of a middle-class tax hike the President seemed all too willing to impose.
Following passage of the agreement, Senator McConnell said: “If I had my way taxes would not have gone up on anyone, but the unavoidable fact was that if we had sat back and done nothing, taxes would have gone up dramatically on every single American, and I simply couldn’t allow that to happen.”
Now that the debate over revenue is over, it is time to focus on cutting government spending.
Click the image above to view the video
Senator McConnell spoke on the Senate floor this week about the need to stop the out-of-control spending in Washington. He said: “In a couple of months, the President will ask us to raise the nation’s debt limit. We cannot agree to increase that borrowing limit without agreeing to reforms that lower the avalanche of spending that’s creating this debt in the first place. It’s not fair to the American people. And it’s not fair to our children, who we’re asking to foot the bill. And the health of our economy requires it.
“So now is the time to get serious about spending. And if the past few weeks have taught us anything, that means the President needs to show up early this time. The American people will not tolerate the kind of last-minute crises that we’ve seen again and again over the past four years as a result of this President’s chronic inactivity and refusal to lead on the pressing issues of the day.
“We don’t need speeches. We need action, now. And we need courage. Because the only way we’re going to address the spending that’s at the root of our nation’s fiscal problems is if the President is willing to bring the members of his party to the table, and get them to rise above the partisan voices on the Left who treat every penny of government spending as sacred.
“Hopefully, that kind of cooperation will be forthcoming. But if not, we’ll have several opportunities in the coming months to force the conversation that Washington needs to have. The first such opportunity, as I’ve said, surrounds the President’s upcoming request for us to raise the debt ceiling. After that, there’s the CR. But let me be clear: there is no need for drama, and we don’t want any.”
Click HERE to read an op-ed by Senator McConnell that appeared on Yahoo! News.
McConnell Permanently Stops Death Tax Hike
During negotiations on the fiscal cliff, Senator McConnell was able to prevent a massive increase in the death tax, which would negatively impact thousands of Kentucky farm families. The tax relief for family farms, ranches and small business that Senator McConnell fought for since 2001 was made permanent for the first time in the fiscal cliff legislation, which Senator McConnell secured during talks with Vice President Joe Biden.
Mark Haney, President of the Farm Bureau, praised Senator McConnell's efforts and said: "Providing Kentucky farm families relief from the federal estate tax has long been a national priority of Kentucky Farm Bureau. We appreciate the diligence of Senate Republican Leader Mitch McConnell to successfully incorporate a permanent $5 million estate tax exemption into the recently-passed fiscal cliff legislation. Even as the fiscal cliff approached, Senator McConnell was determined to keep the interests of Kentucky’s farm families and their financial stability at the forefront of the debate.”
Without this change, family farms and small businesses valued at $1 million or more would have been taxed at 55 percent starting in 2013. This new agreement sets a permanent 40 percent rate on those valued at more than $5 million (indexed to inflation), ensuring that family farms and small businesses valued less than $5 million never have a death tax liability. Married couples may be able to benefit even more if their combined assets are valued at less than $10 million.
Senator McConnell said: "I am pleased that we permanently prevented a massive increase in the death tax which will help Kentucky farmers plan for the next generation. This is good news for Kentucky farmers who want to keep the farm in the family and would otherwise have to sell part or all of their assets or the farm itself to settle their tax burden.”
On the Air
Senator McConnell joined Terry Meiners on WHAS Radio in Louisville and Greg Dunker on WKYX in Paducah to discuss the fiscal cliff. He also joined Hugh Hewitt on the air. Click the image below to listen.
Keep up with the latest news and alerts from our nation's capital as well as updates on things happening back home in Kentucky by becoming a fan of Senator McConnell's Facebook page, and get the latest news from Senator McConnell's press office on Twitter at @McConnellPress.
