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Public Statements

Larsen Votes Against Reckless Tax Cuts

Location: Washington, DC

Larsen Votes Against Reckless Tax Cuts

Washington, D.C. - Today U.S. Rep. Rick Larsen (WA-02) voted against the final version of the Tax Reconciliation Bill (H.R. 4297) that will extend a variety of tax cuts and increase the federal deficit by approximately $70 billion over the next five years.

Larsen released the following statement on his vote:

"It is critical for Americans to understand the impact of the growing federal deficit. This growth translates into higher interest rates for mortgages, credit cards, and student loans. It slows economic growth and investment. And it represents the irresponsible legacy we are leaving our children."

"I strongly support tax relief for the middle class. But this bill is fiscally reckless and shortchanges middle class taxpayers in favor of tax breaks for the wealthy."

"This legislation extends the capital gains and dividends tax breaks until 2010. A middle class family earning less than $50,000 will save an average of $10 per year from the extension of this tax benefit. In contrast, American families earning over $1 million will save an average of $41,400 a year.

"Congress had the opportunity to extend tax relief to working families without increasing the deficit. Instead, we were handed a bill that favors the wealthy and eliminates deductions that benefit the middle class."

H.R. 4297 extends the Alternative Minimum Tax (AMT) for one additional year. The bill does not extend several tax provisions such as the research and development tax credit, the tax deduction for student loans, tax deductions for teacher's classroom expenses, and the deduction for state and local sales taxes for states with no income tax, like Washington.

The final version of the Tax Reconciliation Bill was approved by the House of Representatives by a vote of 244 to 185.


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