WASHINGTON. D.C. – House Majority Whip Kevin McCarthy (CA-22) today released “Taxation Nation: Angelo’s Story,” a new video in which third generation restaurant owner-operator Michael Passalacqua tells the 73-year-old story of Angelo’s Restaurant, drawing the connection between the health of America’s restaurant industry with the local economies their business revenue goes to support and what effect President Barack Obama’s tax hike would have on communities like Washington, PA.
“My family has been in business for 73 years and I truly see us as a fabric of the community,” Michael says in the video. “This economy is just absolutely teetering and raising taxes on anybody at this particular time seems to me to be relatively foolish.”
Michael paints the grim reality facing an industry whose sole source of income comes from consumer spending, saying: “It’s just going to be tons of money dropped right out of the economy immediately.”
America’s restaurants employ nearly one in 10 Americans and are responsible for approximately 537,900 jobs in Pennsylvania according to the National Restaurant Association. Not only are they a major source of employment, but 93% of food locations are small businesses employing fewer than 50 employees.
On July 9, 2012, President Obama announced his plan to increase taxes on almost a million small businesses – a move that independent analysts at Ernst & Young confirm would result in 710,000 fewer Americans jobs and reduce economic output by 1.3% in 2013.
Last Friday, it was reported that second quarter GDP grew at only 1.5% – down from 2.0% in the previous quarter – as consumer spending reduced significantly.
This week, House Republicans led by Majority Whip McCarthy will vote to ensure that no American family or small business sees their taxes increased right now.
“With the economy already at a near stand still, the President’s proposed tax hike on American small businesses comes at the worst possible time for job creators,” Majority Whip McCarthy said. “Independent reports confirm that raising taxes on more than 900,000 small businesses threatens 710,000 jobs and would reduce economic output by 1.3%. It just doesn’t make any sense to punish American families and small businesses already struggling to make ends meet in this tough economy.”