WASHINGTON, D.C. -Ways and Means Committee Chairman Sander M. Levin (D-MI) delivered the following statement today on the House Floor during debate of H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010:
“The Democratic Majority in the House has made it crystal clear that we stand on the side of middle-income families, of unemployed workers, of small businesses - struggling in this difficult economy.
“The compromise before us clearly requires painful choices. These choices relate to each of the three criteria for judging the merits of this package: Does it add to the deficit? Does it promote economic growth? And does it promote fairness?
“For decades Republicans have unwisely promoted a view that tax cuts pay for themselves - so while making deficit reduction their rhetoric, they never have had any intention of paying for tax cuts - which add to the deficit plain and simple. Adding to the deficit is defensible if the bill meets another criterion. Does it promote economic growth?
“Adding to the deficit in the short term as a tool to promote growth that will in turn help address the long-term deficit has been the basis of vital actions taken by the Democratic Majority. Actions to stem the financial crisis, jump start the economy and save the auto industry. These were necessary steps, sometimes unpopular steps, and steps unfortunately not effectively articulated by the Administration.
“This bill does include important provisions aimed at increasing economic growth and jobs:
- unemployment insurance for millions out of work who will spend the money they receive to keep their families afloat,
- the middle income tax cut,
- the temporary reduction in payroll taxes,
- and business provisions like the R&D Tax credit, the New Markets credit and full expensing of business investment for one year.
“Unfortunately, in their zeal to undo the Recovery Act, Republicans have insisted that we not extend the successful 48C credit for advanced energy manufacturing or the Build America Bond program - programs working to re-build our economy.
“The Republicans have insisted on provisions that violate the third criterion-fairness for taxpayers. In order for the Administration to be able to include provisions that help lower and middle income families, it came at the price of assisting the very wealthy-the Republican’s priority.
“Their position has led to a package where the top six-tenths of one percent of the very wealthiest receive 20 percent of the benefits of the tax package. My amendment would strike a blow at this unfairness by replacing the highly irresponsible and unfair Kyl estate tax giveaway. The resulting $23 billion in additional borrowing won’t go to create jobs. It will be used to provide an average tax cut of more than $1.5 million to the 6,600 wealthiest estates next year. This represents less than three-tenths of one percent of all estates.
“I urge my colleagues to vote to change this egregious piece of the legislation so the American people can see clearly who puts the interest of the middle class ahead of the very wealthiest. Then the Republicans in the Senate will have a stark choice that might be painful for them. It would make it clear whose side they are on.
“I will accept the remainder of the bill because after the approach taken by Republicans in the House and the Senate these last weeks - obstructing and holding hostage everything until they get their way on the tax breaks for the very wealthy - I am not willing to put the fate of the middle class and the unemployed in the hands of the Republican Majority next year. Especially when voiced by the Senate Republican Leader - that their main priority is the failure of our President."
