Rep. Ron Kind today voted to permanently extend tax cuts for middle-income families and small businesses to help spur economic growth and provide assistance during these tough economic times. The Middle Class Tax Relief Act of 2010 is a critical step in providing economic security and stability for millions of Americans.
"Our working families and our small businesses need these tax cuts," said Rep. Kind. "The last thing we need in this fragile economy is to raise taxes. But maintaining these tax breaks for wealthy Wall Street bankers without finding spending cuts in the federal budget to pay for them is not fiscally responsible -- it just digs us deeper into the hole."
For all families and small businesses making less than $250,000 a year, the bill permanently extends the 2001/2003 tax cuts, including current tax rates. This means that 97 percent of American families and 97 percent of small businesses will get a tax cut. A typical middle-class family, including 99 percent of western Wisconsin, will see savings of approximately $1,000 per year. The bill also permanently extends small business expensing, allowing businesses the ability to grow and create jobs.
"We just cannot afford to borrow $700 billion from China and saddle our children and grandchildren with this debt by extending the Bush tax cuts for millionaires. We must address the deficit and that means we need to stop enacting tax cuts for the richest two percent of taxpayers who need them the least."
The non-partisan Congressional Budget Office (CBO) and most economists believe that short-term job creation is more likely to result from policies that put money in the hands of low-income and middle-income people, who are likely to invest back into the economy. In addition, according to CBO, the wealthiest taxpayers pay an effective income tax rate of only about 17 percent, a lower rate than many middle class families.
The 111th Congress has enacted 16 tax cuts for American small businesses -- $87 billion in tax cuts to spur investment, access capital, facilitate starts and hiring, and to help them afford health care. Republicans voted against 15 of the 16 small business tax cuts, and opposed closing overseas tax loopholes costing American jobs.