Tax Relief, Unemployment Insurance Reauthorization, And Job Creation Act Of 2010
I want to thank the gentleman for yielding. Mr. Chairman, we're voting on a tax package that gives away $139 billion in tax breaks to the wealthiest 2 percent of Americans over the next 2 years in exchange for $57 billion in unemployment…
I want to thank the gentleman for yielding.
Mr. Chairman, we're voting on a tax package that gives away $139 billion in tax breaks to the wealthiest 2 percent of Americans over the next 2 years in exchange for $57 billion in unemployment compensation benefits for the next 13 months. The math just doesn't add up.
Many Members are opposed to this bill because it's bad economic policy. But it's also morally wrong. Last Friday, the Congressional Black Caucus, led by Congressman Bobby Scott, a member of the Budget Committee, proposed a fair deal by eliminating the tax giveaway to the richest in our country and by extending the middle-income tax cuts, unemployment insurance, Temporary Assistance for Needy Families, Build America Bonds, affordable housing provisions, and the earned income and child care tax credit. Our proposal would also protect Social Security by offering a tax rebate instead of a payroll tax holiday to ensure that Social Security is not cut in the future, and it would create the same amount of jobs at half the cost.
We should let the Bush tax break for the rich expire. Period. Extending them for another 2 years digs us deeper into this deficit hole--and we know who will end up paying for it. It won't be the rich. It will be the poor, low-income communities, and communities of color, who lack well-paid lobbyists to look out for their interests here on Capitol Hill. I am reminded also of what Dr. Martin Luther King, Jr., called to our attention: ``A bad check such as the one being written today will come back marked `insufficient funds.' ''
Instead of stuffing the stockings of the super rich, we need to stimulate direct job creation and economic recovery efforts. And we should not leave the chronically unemployed, those who have exhausted their 99 weeks of unemployment compensation, out of this deal. They should not be left out in the cold due to insufficient funds.
We should not allow the other side of the aisle to shove these tax breaks for the super rich down our throats in exchange for middle- income tax breaks.
As AFL-CIO President Richard Trumka said yesterday in opposition to this bill, ``Working families must not continue to bear the cost of unnecessary giveaways to the wealthiest,'' due to insufficient funds.
Congressional Black Caucus Alternative to the President's Compromise
Members of the Congressional Black Caucus (CBC) are
overwhelmingly opposed to the President's compromise with
Republicans on extending all of the Bush-era tax cuts for two
years. While we are an ideologically diverse Caucus, the CBC
has reached a consensus that we cannot support extending the
Bush-era tax cuts for the wealthiest Americans; we can
support moving forward on the following:
A 13-month extension of Emergency Unemployment Insurance
Benefits plus additional assistance for the chronically
unemployed--those Americans who have been unable to find work
for more than 99 weeks.
A payroll tax holiday or equivalent payment, such as a tax
rebate check, with guarantees that Social Security will not
be deprived of revenue.
Targeted tax relief through a 2-year extension of the Bush-
era tax cuts for hardworking middle- and low-income families
and extending the enhanced provisions included in the
American Recovery and Reinvestment Act for the Earned Income
Tax Credit, the Child Tax Credit, and the American
Opportunity Tax Credit.
The CBC proposal will cost less than half of the
President's proposed trillion dollar compromise.
Members of the Congressional Black Caucus are keenly aware
of the day-to-day struggles of hardworking American families
and the unemployed. In the long-run, we believe permanently
extending the Bush-era tax cuts will add trillions of dollars
to our national debt thus jeopardizing the fiscal solvency of
the United States Government.
This nation has difficult decisions to make in the years
ahead and the CBC believes that vital programs, such as
public education funding, financial aid for students to go to
college, child nutrition programs, Veterans benefits, Social
Security and Medicare, will all be put at risk if we
permanently extend all of the Bush-era tax cuts. We believe
the benefits of these vital programs to all Americans,
especially to middle- and low-income Americans, far outweigh
any tax cut.
It will take strong political will to make the tough
choices necessary to bring our fiscal house in order. One
such choice the Caucus made was to consider and reject
support for the proposed reduction in the estate tax, which
has a two year price tag of $60 billion and only benefits the
wealthiest 2% of American families. Rejecting that choice is
particularly timely in light of the recent defeat of a $250
payment to struggling Social Security recipients who are
going another year without a Cost-of-Living-Adjustment. As we
move ahead on ways to accelerate our economic recovery and
balance our budget, the CBC stands ready to assist the
President in a meaningful and responsible way.