-- Randy’s Roundup --

A Weekly Newsletter from Congressman Randy Neugebauer

December 6, 2010

Political Posturing Could Prove Costly for American Taxpayers

It’s just a waiting game here in Washington. Which will come first: A bill to permanently extend tax relief to every taxpayer, or January 1st, when taxes are set to increase by $3.9 trillion? Over the past several weeks, political posturing has pushed a permanent extension of the expiring tax cuts further and further into the Lame Duck session. Last week, House Democrats made a symbolic attempt to pass a bill that would only extend the tax cuts for some Americans. A similar measure failed in the Senate over the weekend. This piecemeal policy keeps a cloud of uncertainty over the marketplace. American businesses are discouraged from hiring and expanding while the unemployment rate rose to 9.8 percent for November.  We are learning here in the House that a new proposal on the tax cuts could be up for a vote as early as this week, but it will most likely include other trade-offs in the form of extending long-term unemployment benefits. As we continue to work out the details of this legislation, there are three things to keep in mind:

1. What will be added to the tax bill? Many leaders in the House and Senate are pushing to add a full extension of long-term unemployment benefits to any tax bill brought up for a vote. Right now our nation is facing deficits over $1 trillion and if we extend long-term unemployment benefits, I think they must be paid for. One way to pay for these benefits is to utilize unused stimulus money. However, it is important to remember that the more extraneous items the Democrat Leadership adds to the tax package, the more it will hamper any movement of a bill in the House.

2. How long will tax cuts be extended? Some lawmakers are mentioning a two year extension. I have always been supportive of a permanent extension of these cuts. The Taxpayer Certainty Act, H.R. 4746, would make all of these cuts permanent for everyone, including the elimination of the death tax.

3. What will happen with the death tax/estate tax? In less than a month the death tax will return in full force at 55 percent. As Benjamin Franklin once said, “The only things we can be certain of in life are death and taxes.”  Death should not be a taxable event. This tax is unfair and penalizes a lifetime of hard work and savings. A death tax at this level is devastating, especially to farmers and ranchers trying to pass their livelihoods on to the next generation. I fully support ending the death tax altogether. It’s time this tax is finally put to death.

Both you and I know that life is full of tough decisions. Many families have been forced to cut back on Christmas gifts this year, while small businesses have been forced to let employees go this holiday season. Extending tax cuts, not raising taxes, is the solution. I hope my colleagues will join me in doing what’s best for the American people and bring some hope to the nation this Christmas.      

Positive Step Forward with U.S. – South Korea Free Trade Agreement

Late last week, the Obama Administration announced their approval of a free trade agreement between the U.S. and South Korea. At a time when the job market is slow to grow and unemployment numbers continue to climb, the announcement of this is long overdue and welcome news. While the agreement must still be approved by Korea and the U.S. Congress, I believe it is a good start in opening new markets around the world to American-made products.  The U.S. cannot solely be an economy of consumers; instead, we must continue producing quality goods here at home and exporting worldwide.

In the 19th District, the beef industry stands to gain from improving market access to American commodities in South Korea. According to J. Patrick Boyle, President and CEO of the American Meat Institute, “Once the FTA is fully implemented, beef and pork exports to South Korea could increase by $2 billion and resulting in more than 26,700 new American jobs.” This is a big plus for American farmers and ranchers and allows them to increase exports of America’s abundant food and fiber. Additionally, the people of South Korea will gain access to affordable products. This renewed cooperation will also continue to grow the bond between our nations.

I hope that this agreement will lead to renewed interest in several other trade agreements, such as Columbia and Panama, which have been held up over the past two years. With an economy in jeopardy, we should be taking every step possible to responsibly increase opportunities for American job creators.

“Question of the Week”

Do you support the DREAM Act? For more information on the DREAM Act, click here.

Please visit my website to submit your answer to this week’s question.

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As always, when events unfold in Washington, I will be sure to update you. In the meantime, do not hesitate to visit my website or call my office toll free district wide at (888) 763-1611 or my Washington, DC office at 202-225-4005.