WASHINGTON – Continuing in his efforts in Congress to reach a compromise on tax cuts due to expire at the end of the month, U.S. Rep. Bill Pascrell, Jr. (D-NJ-8) today took to the House floor to advocated for a plan that would give a tax cut to every American taxpayer.
“This past September, I along with Congressmen Capuano, Higgins and Owens proposed a compromise that provides tax relief for American families and gives Congress the fiscal flexibility to address our long term deficit,” said Pascrell, a member of the House Ways and Means Committee, speaking on the floor of the U.S. House of Representatives. “I’m proud to say the Joint Committee on Taxation has confirmed that this plan cost significantly less and provides greater flexibility to reduce the national deficit than other plans currently on the table.”
A video of Rep. Pascrell’s speech can viewed here: http://www.c-spanvideo.org/videoLibrary/clip.php?appid=599223662
The Joint Committee on Taxation found that Rep. Pascrell’s plan would cost $8.274 billion to provide a one-year extension of the current tax rates for income earned between $200,000 for individuals and $250,000 for families and $500,000. In contrast, the Republican plan calls for a 10-year extension for the nation’s wealthiest population at a cost of $700 billion.
Additionally, Rep. Pascrell’s plan for a five-year extension of the middle class tax rates is estimated to cost $801.5 billion over 10 years, which is $748.5 billion less than plans proposed by Congressional Republicans and President Obama. Both alternatives call for a 10-year extension of these rates at a cost of $1.55 trillion.
Prior to adjournment for the fall recess, there was near universal bipartisan agreement to extend the middle class portion of the current tax rates, i.e. individuals making less than $200,000 and families making less than $250,000. There was also consensus that the current tax rates should be continued 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.
The Pascrell 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.
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