WASHINGTON - Ways and Means Committee Chairman Charles B. Rangel (D-NY) issued the following response to emerging details on Senate amendments to the bipartisan economic stimulus package:
"House Democrats have accepted the reality that tax cuts for businesses is the political price for a bipartisan economic stimulus package to provide economic assistance to those who would be most likely to spend the money and fuel our economy.
"Nowhere have economists indicated that providing assistance to businesses through bonus depreciation or enhanced expensing would provide the same bang for our buck as targeted relief to individuals and families.
"Speaker Pelosi should be commended for her work to ensure that we provide a tax cut to 117 million Americans - 35 million of whom work and contribute to payroll taxes, but make too little to pay income tax. While this relief will reach those who so desperately need it and will spend it into the economy, we cannot ignore the importance of so many other policies that were fought for, but rebuffed - not on economic arguments, but on political ideology.
"Now, the Senate indicates they will open up the bipartisan House stimulus package to improve the benefits provided. If they can somehow manage to do so in a limited fashion by including unemployment benefits, food stamps, Medicaid or heating assistance, that would improve on the solid foundation of the House package.
"But, rumor has it that they are going to eliminate the income cap on the tax rebate, which would open Pandora’s Box. By eliminating the income cap, we would only further grow the divide between rich and poor that has already grown so much under President Bush’s tax policies. I am concerned that this expansion would jeopardize the entire stimulus package.
"So, while I understand that the Senate may not want to immediately accept the House bill, they are walking on very thin ice."
