Rep. Ron Kind, a member of the tax-writing House Ways and Means Committee, last night voted for fiscal responsibility, opposing the Middle Class Tax Relief Act of 2010.
"The last thing we need in this fragile economy is to raise taxes and increase the burden on hard-working American families and small businesses. That's why we passed such a bill in the House two weeks ago -- extending tax relief to small businesses and families making less than $250,000.
"The bill that came before us last night, however, irresponsibly increases the deficit by extending tax relief beyond working families and small businesses to the wealthiest two percent of taxpayers who need them the least. Without finding spending cuts in the federal budget to pay for these cuts for millionaires, this bill will add almost $1 trillion to the deficit -- more than the cost of the entire American Recovery Act. We cannot afford to borrow billions of dollars from China and add to the debt of our children and grandchildren. This is fiscally irresponsible and economically wrong. For those calling for the extension of tax relief for wealthy Wall Street bankers, they should find corresponding spending cuts in the budget to pay for them.
"On top of the cost, there is no indication that these upper income tax cuts spur job growth. Under the Bush Administration, these cuts were enacted to spur job creation yet in the entire eight years of the previous administration we had zero net job growth and the slowest decade of economic growth since the 1930s. The policy of these tax cuts has clearly failed.
"The effective tax for the wealthiest two percent is only 17 percent after they itemize and deduct their expenses -- a lower effective tax rate than what most working families pay. This is a call for tax simplicity so we can eliminate special interest loopholes and restore fairness to the tax code. Giving the nation's wealthiest families a tax break is unfair to hard-working Americans and unfair to future generations. Unfortunately, the political leadership in both parties today believes that bipartisan compromise means that each gets what they want without paying for it."