Rigell Supports Middle Class Tax Relief and Job Creation Act

Press Release

Today Representative Scott Rigell (VA-2) voted for the Middle Class Tax Relief and Job Creation Act. The Act extends the payroll tax holiday for businesses, continues unemployment benefits for those in need, and provides for a two year extension of the Medicare "doc fix." The bill passed the House 234-193 and now goes to the Senate for consideration.

"This is a bipartisan compromise that provides relief to the middle class while continuing to create an environment that will allow for job creation," Rigell said. "This is the best alternative before us right now. Over 90% of the savings come from provisions similar to those the President has already supported. My hope is the Senate and the President will see this and that we'll be able to enact this much-needed relief for Americans."

The bill is fully offset over a 10 year period based on Congressional Budget Office estimates. See the CBO Score of this bill.

More about the impact of the "Middle Class Tax Relief & Job Creation Act":
Extends Current Payroll Tax Relief, Protects Social Security

-Provides a one year extension of the current payroll tax rate (4.2%), without raising taxes on America's job creators, which will save the average American family $1,000.
Reforms Unemployment Insurance Program and Extends Benefits for Americans Struggling in Today's Economy

-The bill permanently reforms the federal unemployment insurance (UI) program by reducing waste, cutting costs, and increasing state flexibility (such as allowing states to drug screen and test applicants as well as use UI funds, to operate reemployment programs).

-UI will use a two-step process to gradually reduce current maximum benefits from 99 weeks to 59 weeks, ending the expansions signed into law by President Obama.
-Studies have shown these actions will help get Americans back to work faster.

Cuts Spending to Offset Costs

-The bill includes cuts of up to $183.4 billion in government programs, not job crushing tax hikes, in order to fully reimburse the Social Security trust fund for extending current payroll tax relief, as well as pay for the UI insurance benefits. This includes:

-Extending the current pay freeze for certain federal workers, including Members of Congress

-Limiting government benefits for millionaires & billionaires

-Targeting fraud and abuse, by reforming entitlement programs

Creates American Jobs

-The bill accelerates a decision on the bipartisan Keystone XL energy pipeline, which will create an estimated 100,000 high paying domestic jobs and will support American energy dependence.

-Employers will receive 100% business expensing through 2012 to make it easier to invest now in new machinery and equipment, to grow their business and create jobs.

-The bill includes a provision to stop the harmful Environmental Protection Agency's Boiler Maximum Achievable Control Technology (MACT) regulation, which will protect more than 200,000 American jobs and help keep down rising energy prices.

-To spur billions of dollars in private investment and create thousands of jobs, the bill will include spectrum auctions to advance wireless broadband services throughout the country.

Includes a "Doc Fix" to Protect Medicare Beneficiaries

-Includes a 2-year paid for "doc fix", the longest stretch of time in nearly a decade, to avoid large cuts in physician payment rates, ensuring that Medicare beneficiaries have access to doctors.

-Repeals (and saves) $8 billion of Affordable Care Act mandatory funding from the unaccountable prevention and public health "slush" fund.

-Forces the repayment of improper taxpayer-funded subsidies in the Affordable Care Act to reduce fraud, waste, and abuse. This provision reduces the deficit by $13.4 billion.

-Saves billions by updating and reducing waste in the provider payment methodologies.

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