BREAK IN TRANSCRIPT
Mr. FRELINGHUYSEN. Mr. Chair, I rise in support of the Tax Relief Act of 2010 and urge its passage.
My Colleagues, the goal of this legislation is to prevent the imposition of the largest tax increase in the history of the world and to continue many valuable tax provisions that promote economic growth.
These goals are my goals. There Is never a good time to raise taxes, but I cannot think of a worse time to increase the tax burden on America's hard-working families and job-creating small businesses than in the middle of a weak recovery.
Like all Members, I have strongly supported extending the Bush tax rates, enacted in 2001 and 2003.
Like some of my Colleagues, I have supported extending these lower tax rates for everyone and making that extension permanent. That's why I introduced H.R. 4270 which would lock in these lower tax rates indefinitely.
The important legislation before us today includes many beneficial provisions. For example, the agreement:
Prevents tax increases on every American who pays income taxes.
Eliminates job-killing tax increases on small businesses.
Provides relief from the estate tax for family owned businesses.
Preserves the $1,000 per child tax credit and marriage penalty relief.
Blocks higher taxes on capital gains and dividends.
Protects at least 21 million households, including 1.6 million in New Jersey, from being hit by the Alternative Minimum Tax (AMT) in 2010.
Provides a one-year payroll tax cut that is worth $1,400 for the average New Jersey household.
I must acknowledge that I am not pleased that this bill prevents a tax hike on higher income Americans and small businessmen and women, which would have taken effect on New Year's Day 2011, for only two years.
Our economy does not run on temporary, stop-gap half-measures. In order to invest and grow their companies for the future--creating private sector jobs and opportunities in the process--businesses of all sizes need predictability in the tax code. They need certainty in order to plan their operations and workforce expansion. In order to spur job creation, all the tax rates should be extended as far as the eye can see!
The non-partisan Congressional Budget Office estimates that fully extending the 2001 and 2003 tax rates would add between 600,000 and 1.4 million private sector jobs in 2011 and between 900,000 and 2.7 million jobs in 2012. In addition, lower tax rates on capital gains and dividends will boost capital investment and spur economic growth.
I also have strong reservations about some of the spending included in this bill and some of the so-called tax extensions.
For example, the package extends the federal Unemployment insurance (UI) Program for another 13 months and maintains the current cap of 99 weeks of total benefits.
I understand that people need a helping hand and strongly support aiding unemployed Americans. However, the President has insisted that the cost of extending benefits be added to the country's $14 trillion debt. We can do better than this. The fact is that we CAN help the long-term unemployed AND pay for it.
Likewise, we should object to certain so-called ``tax extenders'' such as the renewed subsidies for the production and use of corn ethanol. For yet another year, $6 billion will be extracted from U.S. taxpayers to prop up the struggling ethanol industry while diverting valuable corn supplies from other worthwhile uses.
Despite these and other reasons, I will support this bipartisan agreement. I recognize that a ``no'' vote on this bill represents a ``no'' vote on the U.S. economy.
It would be nothing short of a disaster to allow the largest tax increase in U.S. history to crush American families and small business in two short weeks.
Mr. Chair, the larger debate surrounding extension of the lower Bush tax rates underscores the need for Congress to act decisively in the New Year to support private sector job creation, reduce government spending, lower our dangerous public debt and enact permanent tax reform.
BREAK IN TRANSCRIPT