Act would be disastrous in light of our country's economic situation

Clearly, our economy is still in bad shape. Unemployment and the state of the real estate market, key indicators of economic strength, are still suffering.

Despite this, Congress might pass the American Jobs and Closing Tax Loopholes Act. This bill raises taxes on investment partnerships in real estate and other ventures by more than 150 percent and will stifle economic activity. Rep. Zack Space joined his Democrat colleagues in voting "yes," and the U.S. Senate might vote on the legislation soon.

This bill increases taxes on carried interest, taxing it higher than the current capital gains rate. It will stifle profits on commercial real estate transactions and will harm the real estate industry, whose health is vital to economic recovery. The still-fragile real estate industry cannot handle this tax increase, too.

More than 1.2 million partnerships own more than $1 trillion in commercial real estate nationwide and rely on the current system to build and revitalize our neighborhoods. Business partnerships are the primary model for development of commercial investments. The Ohio Senate passed a resolution I sponsored urging Congress to maintain the current carried interest tax rates.

This tax increase will reduce profits for entrepreneurs and disincentivize investment in projects that create jobs and economic growth. It will make it difficult for partnerships to invest in job creation and will only drive up already high unemployment.

The U.S. Conference of Mayors agrees. In a letter to Congress, they wrote the bill will "will lower tax revenues at the federal, state, and local levels and limit opportunities for redevelopment and underutilized properties, hindering job creation."

Congress must make choices to strengthen our economy, passing laws that support an environment that rewards hard work and success, not laws that overburden profitable businesses. By passing this law, Congress will be enacting a policy that would be disastrous to our country's economic stability and strength.

Rep. Space already made a poor choice by passing this tax increase. I urge Sen. Voinovich, R-Ohio, and his colleagues to make the right choice and avoid this tax increase in the midst of our economic recovery.