Tax Relief, Unemployment Insurance Reauthorization, And Job Creation Act Of 2010
Mr. Chair, I rise in support of this tax compromise with strong reservations. This bill contains some highly objectionable provisions like unnecessary tax breaks for the wealthiest two percent of Americans and an estate tax modification…
Mr. Chair, I rise in support of this tax compromise with strong reservations. This bill contains some highly objectionable provisions like unnecessary tax breaks for the wealthiest two percent of Americans and an estate tax modification that will only benefit the richest 6,600 households across the country. These two items alone will cost $129 billion, which could alternatively be used for deficit reduction. However, I cannot in good conscience allow all of Rhode Island's businesses and families to suffer onerous tax increases at a time when jobs are scarce and people are pinching pennies just to put food on the table.
Providing tax cuts to millionaires and billionaires is both financially unjust and fiscally irresponsible given our current budgetary challenges, but this compromise protects 98 percent of Americans from significant tax increases set to take effect January 1, 2011, and has the potential to create the private sector jobs than can sustain an economic recovery.
This legislation extends the 2001 and 2003 tax cuts for all income levels for two years, and prevents middle-income Rhode Islanders from being hit with higher tax rates under the Alternative Minimum Tax (AMT). It also contains several provisions that would assist families and stimulate our economic recovery, which has been frustratingly slow in Rhode Island as state unemployment has lingered at 12.5 percent.
This compromise includes a 13 month extension of Unemployment Insurance for the thousands of Rhode Islanders who are unable
to find work. I have spoken to countless constituents who want to work and are actively looking for employment, but they cannot find jobs. Cutting off their only means of support before the holidays would be an unconscionable dereliction of our responsibilities as members of Congress.
Businesses stand to benefit from a two-year extension of the Research and Development Tax Credit, incentives for clean energy production, and a new accelerated depreciation provision, which will allow a 100 percent write off of capital expenditures in 2011 and 50 percent in 2012. These incentives will ease the tax burden on Rhode Island companies seeking to expand their operations and grow their business, providing an extra boost to our local economy.
For Rhode Island families, this proposal includes a two-year increase of the full Child Tax Credit and Earned Income Tax Credit. Together, these provisions will provide ongoing tax cuts to 12 million lower income families. In addition, it fully extends the American Opportunity Tax Credit for two years to ensure more people can afford higher education.
Finally, this bill establishes a year-long tax holiday, providing $112 billion in relief by cutting the Social Security payroll tax by two percent. Hard working Rhode Islanders could use a little extra income in their pockets--money that will ultimately be spent and pumped back into the economy to create more jobs. This temporary measure will have no negative impact on Social Security. That said, I will not allow this measure to be used as a springboard toward a permanent reduction of Social Security tax revenues that threatens the program's solvency and breaks the promise we have made to our seniors, veterans and disabled Americans.
Madam Speaker, this compromise is neither a perfect nor permanent solution to our economic challenges, but the cost of inaction is something I'm not willing to pass along to my constituents. If a better deal were possible, I would take it. In fact, I was proud to vote for middle class tax relief just two weeks ago, but my Republican colleagues rejected this common sense bill and it failed to pass the Senate. So now we are faced with a choice--accept this compromise or continue playing politics. The time for politics is over. We have less than two weeks before everybody's tax burden increases. I urge my colleagues to act before our time is up.