Today, the House voted 277 to 148 to extend tax relief to every West Virginian taxpayer.
The tax compromise passed the Senate on Wednesday by a vote of 81-19. Without Congressional action, every taxpayer and most small businesses would be hit with a massive tax hike on January 1, 2011.
"This is the right choice for the American people, and the right choice for our economy," Capito stated. "People across the board agree that increasing taxes at this time would take our economy in exactly the wrong direction. Now that the tax rates are set for the next two years, families can budget accordingly and small businesses can make plans to expand and grow."
The legislation includes extensions of the child tax credit, marriage penalty relief and education tax credits. It also alleviates the excessive burden that would be placed on small businesses. Capito has long-stated that raising taxes with near-10% unemployment and a sluggish private sector is not the way to get our economy back on track.
Capito noted her concerns with the bill's price tag, but has been committed to ensuring West Virginians don't see their taxes increase in the New Year.
"The American people should not be seen as an open coffer when times get tough. Raising taxes right now would have meant taking money away from West Virginians and putting it in the government's purse to spend on wasteful, redundant programs. The responsible way to reduce the deficit is stop the out-of-control spending," stated Capito. "When it comes down to it, Washington has a spending problem, not a revenue problem."
Capito is a Member of the Economic Recovery Working Group which launched YouCut, a project designed to change the culture of spending into a culture of saving in Washington. Millions of Americans have voted on spending cuts they want to see the House enact, and thousands more have suggested their own ideas on how Congress can save. The new Republican Majority has promised to bring weekly spending cut votes to the floor each week.
"Getting this vote through was tough at times, but at the end of the day I think everyone realized we were making a decision that would affect personal budgets as well as the strength of our economy. Giving the American people a tax break was the right thing to do," concluded Capito.