GOP Willing to Raise Middle Class Taxes While Protecting Millionaires

Washington, DC -- Congressman Eliot Engel (D-NY-17) voted against the House Republican Majority’s proposal to extend key provisions which must be completed before the end of the calendar year.  Changes made by the Majority would actually make things worse for far too many families.  In addition, they have attached unrelated measures which do not belong in this package, and are solely designed to make the legislation fail in the Senate in order for the House GOP Majority to score political points with supporters.  Rep. Engel’s remarks on the House floor can be viewed here - http://www.youtube.com/watch?v=vXWO9l3DzrQ&feature=youtu.be

Last year, Congress enacted legislation to reduce the Social Security payroll tax by 2% for employees, continue extended unemployment insurance benefits and delay a previously scheduled 25% reduction in the Medicare reimbursement rate for physician services (Doc Fix).   Despite agreeing that an extension is needed, the usual political gamesmanship has taken place in both the House and the Senate while the clock ticks down on these measures.

“The Republicans claim they understand the importance of these middle class tax breaks, and the desperate need by our millions of unemployed to maintain benefits while they search for work.  However, they have chosen not to do what is right for these families in need, but to use the opportunity to force their agenda upon the American people.  They claimed when they took over the House that they would not package unpopular bills with ‘must-pass’ legislation, but would go one issue at a time.  That pledge didn’t even last the year,” said Rep. Engel. “The Keystone pipeline and the EPA rules included in the package have no business being included.  The changes with the EPA would permit continued emissions from incinerators and industrial boilers of mercury, lead, arsenic, and other carcinogenic metals -- even where reducing emissions would be cost-effective and technologically feasible.”

The 12-term Congressman added, “The only reason those two unrelated measure are in there is for the Majority to lure more of its conservative members into yes votes.  Another way of securing yes votes would be to just pass a clean extension of the expiring tax measures.  Not only would it pass, but it would pass overwhelmingly with bipartisan support.”

The GOP version of the expiring tax measures alters some key points.  It extends federal benefits for the long-term unemployed, but modifies the program to cut 40 possible weeks (reducing the maximum state and federal duration of benefits from 99 weeks to 59 weeks) while also imposing new requirements on laid-off workers seeking unemployment benefits. It adds taxes to the unemployed for long-term need, and disqualifies them from taking part in the food stamps program. 

“It really doesn’t make any sense punishing people for having to receive unemployment.  It is not as if these benefits do anything more than enable people to feed and clothe their family.  In 2010, over three million Americans emerged from poverty thanks to having unemployment benefits.  Almost 240,000 New Yorkers will lose their unemployment benefits under this bill.  Haven’t the unemployed been through enough already?” asked Rep. Engel.  He added that by slashing the amount of people receiving unemployment insurance, it will remove $50 billion from the economy, hinder recovery and add to the jobless numbers.  Benefits for those facing long-term unemployment have helped to create hundreds of thousands of jobs in the last several years. 

The costs of extended the tax breaks are entirely offset by spending cuts and other savings provisions.  It would:

• Increase Medicare premiums on higher-income beneficiaries.  The threshold for being classified as high income would be reduced to $80,000 annually for individuals and $160,000 for couples (reduced from $85,000 and $165,000 respectively).
• Slash funding for the Affordable Care Act,
• Increase loan guarantee fees charged by Fannie Mae and Freddie Mac.

“Republicans have a chance to show the American people that our government can function in a bipartisan manner.  Congressional approval ratings are at an all-time low, mainly because the American people see this kind of partisan brinksmanship constantly.  The typical middle class family would see a tax hike of $1,500 if Congress fails to act.  Yet the Republican-led House refuses to even talk about having the top 1% of Americans pay a little more in taxes.   This bill forces millions of seniors to pay more for health care while giving the 300,000 wealthiest Americans another free pass.  This is completely unacceptable – we cannot solve our debt problem on the backs of our working families.   I call on my Republican colleagues to remember why we were elected and to work with Democrats to pass what should be common sense legislation together,” said Rep. Engel.

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