Van Hollen Floor Statement in Support Middle Class Tax Cuts
“The middle class tax relief extends significant tax relief to every American… But what this legislation does not do is put an additional $700 billion on our national credit card…”
Washington,
Dec 2, 2010 -
Today Maryland Congressman Chris Van Hollen spoke on the floor of the House in support of the Middle Class Tax Relief Act of 2010. Below is a transcript of his remarks:
“Thank you, Mr. Speaker. Thank you, Mr. Chairman.
“I rise in strong support of this legislation as the best way to move our economy forward. The middle class tax relief extends significant tax relief to every American. Let me say that again: every American. Under this legislation, no matter how much you make, the first $250,000 will continue to benefit from today's lower rates. And given the softness in our economy and the number of households that are still struggling, that's the right thing to do.
“But what this legislation does not do is put an additional $700 billion on our national credit card, as our Republican colleagues would like to do, by extending an extra bonus tax cut to the folks at the very, very top.
“Instead, for the top 2 percent, those reporting income over $250,000, we have the Clinton-era tax rates on just that additional portion of that income. And with our annual deficits now topping $1 trillion and our national debt approaching $14 trillion, it's the right thing to do to make sure our economy is on a sustainable footing for the future. We have the bipartisan Commission debating that question right now, and yet our colleagues want to put $700 billion on our credit card.
“Now, our colleagues that we just heard have said that this is necessary to create jobs. Really? These are the tax rates that are in effect today. And during the Bush years – and during the eight years of the Bush Administration – 600,000 private sector workers lost their jobs with these rates compared to the Clinton Administration. 23 million jobs created in the Clinton administration with the old rates at that particular time. Moreover, the nonpartisan Congressional Budget Office recently looked at 11 different options for strengthening the economy. This one came in dead last.
“Now, we also heard from our colleagues that they tried to use small businesses as a smokescreen for their plan to protect this bonus break for the folks at the top. First of all, as my colleagues said, only 3 percent of small businesses are affected. Three percent – 97 percent not. But what's interesting is when you look at those 3 percent – what you find out is in the definition of the tax code, one that apparently has been used by our colleagues – people may be surprised to find a lot of mom and pop operations like Price Waterhouse Coopers, asset manager Fidelity Investments, and the private equity firm KKR fall under the pass-through income definition. Now I don’t’ know if people realize it, just the other day KKR, that ‘small business’, purchased Del Monte Foods for $4 billion.
“Now, those are all good businesses, but they're not small businesses. And they would benefit from the proposal that we and the President have made to provide 100 percent depreciation for their investments this year. That will help jobs and the economy.
“Thank you, Mr. Speaker. I urge support of the bill.”
Click here to watch the video of Congressman Van Hollen’s remarks.
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Congressman Chris Van Hollen
