WASHINGTON – In anticipation of Congress reconvening on November 15, U.S. Rep. Bill Pascrell, Jr. (D-NJ-8) with Reps. Michael Capuano (D-MA-8), Brian Higgins (D-NY-27) and Bill Owens (D-NY-23) reintroduced a compromise to extend the 2001-03 tax cuts for the benefit of the middle class.
“The most important thing to understand is that this plan will extend tax cuts for the first $500,000 of every American’s family’s income,” said Pascrell, a House Ways and Means Committee member. “This plan identifies those tax cuts that everyone in Congress agrees should be extended. Specifically, the plan extends the current tax rates for middle class families, as well as the investment portion of the tax code that includes long-term capital gains and qualified dividends. From that foundation, we can continue working together to revitalize our nation’s economy.”
The Pascrell Compromise was originally suggested to House Speaker Nancy Pelosi (D-CA-8) and Minority Leader John Boehner (R-OH-8) on September 23, just prior to Congress’ adjournment for the current recess. The details of The Pascrell Compromise are included in the following letter, which was sent today to U.S. Senate Majority Leader Harry Reid (D-NV), U.S. Senate Finance Committee Chairman Max Baucus (D-MT) as well as keys members of the U.S. House of Representatives.
November 8, 2010
The Honorable Nancy Pelosi Office of the Speaker H-232, US Capitol Washington, DC 20515
The Honorable Harry Reid Senate Majority Leader 522 Hart Senate Office Bldg Washington, DC 20510
The Honorable Sander M. Levin Chairman House Committee on Ways and Means 1236 Longworth House Office Building Washington, DC 20515
The Honorable Max Baucus Chairman Senate Committee on Finance 511 Hart Senate Office Bldg. Washington, D.C. 20510
The Honorable John Boehner House Minority Leader H-204, US Capitol Washington, DC 20515
The Honorable Mitch McConnell Senate Minority Leader 361-A Russell Senate Office Building Washington, DC 20510
The Honorable Dave Camp Ranking Member House Committee on Ways and Means 341 Cannon House Office Building Washington, DC 20515
The Honorable Chuck Grassley Ranking Member Senate Committee on Finance 135 Hart Senate Office Building Washington, DC 20510
Dear Colleagues:
As we move towards the final session of the 111th Congress, it is clear that the most pressing issue facing this Congress is the expiration of the 2001 and 2003 Tax Cuts.
Prior to adjournment for our fall recess, there was near universal bipartisan agreement to extend the middle class portion of the current tax rates (for individuals making under $200,000 and for families making under $250,000). There was also consensus that we should extend the current tax rates on the investment portion of the tax code that includes long-term capital gains and qualified dividends. The extension of these rates is necessary in order to provide American families and the business community with certainty when planning for their futures.
An extension of these rates was unfortunately delayed by an unwillingness of both sides to compromise on whether to extend the rates for the highest tax bracket, individuals making above $200,000 annually and families making above $250,000 annually.
However, as President Obama has spoken about this past week, we now have the room to find common ground among all of our Members. As such, we would like to put forth the proposed compromise that we shared with both sides of the aisle prior to our adjournment for the fall district work period. The compromise includes: A five year extension of the current middle class tax rates for individuals making under $200,000 and families making under $250,000 annually. A five year extension of the current tax rates on long-term capital gains and qualified dividends. A one year extension of the current tax rates for individuals and joint filers making under $500,000 annually.
We would like to reiterate that this is just one proposal that may garner enough support to pass, and that this should be seen as a foundation on which to build a lasting compromise. The extension of the current tax rates for middle class families and the investment portion of the tax code should not be held hostage by partisan disagreement.
We look forward to working with both sides of the aisle to extend tax relief to all middle class families. Please find attached a copy of the original letter sent to Speaker Pelosi and Minority Leader Boehner on September 23, 2010.
Sincerely,
_____________________ ________________________ Bill Pascrell, Jr. Michael E. Capuano Member of Congress Member of Congress
____________________ ________________________ Brian Higgins Bill Owens Member of Congress Member of Congress
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