Enzi Aims to Halt One of the Largest Tax Increases in History

Press Release

Pushes for permanent debt solutions in 2011

U.S. Senator Mike Enzi, R-Wyo., today voted to move forward on a bill to prevent one of the largest tax increases in American history with the goal of forming a more permanent solution to address the nation's fiscal dilemma in the next Congress.

The Senate voted 83-15 in favor of moving forward with the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4835). The bill is a bipartisan effort to prevent a looming tax hike on Jan. 1, 2011, which would affect every American taxpayer and small business. But this is just a first step in the process. Next, the Senate will vote on some amendments to change the bill.

"This impending tax increase has been breathing down taxpayers' necks long enough. It will indeed be a "Happy New Year' for taxpayers if this bill is finalized," Enzi said, an accountant who serves on the Budget and Finance Committees. "Congress needs to promote growth and the best place to start is with small businesses. Small businesses create two-thirds of all new jobs and this bill will help them expand and hire new workers. This bill is crucial to help protect individuals, families and small businesses across the entire country."

The bill includes a two-year extension of the middle-class and small business tax relief from 2001 and 2003, which will benefit all Americans paying income taxes and millions of small businesses. Also included are a two-year extension of the Alternative Minimum Tax (AMT) relief, which will help more than 21 million middle-class taxpayers, and two years of extended estate tax relief, which will protect small businesses and family farms.

The Senate will continue debating the bill with a final vote expected later this week.

Next up: Put permanent solutions into place in 2011

"This bill addresses the nation's need for extending tax relief but it isn't perfect. With the time crunch Congress is facing, a temporary measure has to be passed to help prevent a massive tax hike. With the new Congress just around the corner, I look forward to working immediately on more permanent solutions to the nation's debt and deficit problems," Enzi said.

Enzi supports the efforts of the Republican Conference to address Congress' spending addiction and sees resolutions recently approved by the Conference as a good way to begin getting the nation's fiscal house in order. The Republican Conference passed resolutions to cap discretionary spending at 2008 levels, ban earmarks for the 112th Congress, cancel approximately $12 billion in unspent federal stimulus funds, support a balanced budget Constitutional amendment, freeze hiring on non-security federal employees, forbid unfunded mandates on state and local governments, and ban any new entitlement programs.

Enzi also advocates for Congress to stick to using "emergency" funds strictly for emergencies. Currently, millions of dollars in non-emergency funds are labeled as such and only add to the deficit. Emergency funding should be planned for in the budget since, unfortunately, some disasters will occur each year. Another important step is to reform Medicare, Medicaid, Social Security and other entitlement programs to help address their growing deficits.8

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