Blumenauer: End Trillion Dollar Giveaway to Top 2%
Tax reform is a very complicated, very difficult endeavor. True reform—even if it benefits our country and citizens broadly—creates short-term winners and losers. Today, the House of Representatives had the opportunity to vote on the Senate-passed extension of tax cuts. Unlike the Republican plan that actually raises taxes on 25 million families by $1,000 on average by cutting the Child Tax Credit and the Earned income Tax Credit, and by reducing tax credits for education, the Senate-passed bill offered by House Democrats would give tax cuts to 100% of Americans on their first $250,000 of income.
Instead of passing this sensible bill, Republicans want to extend tax cuts for the richest 2% of Americans, giving an annual cut of $160,000 to the average millionaire and driving the country even further into unnecessary debt. It's not right.
Republicans also rejected my amendment that would have reinstated a sensible estate tax. My amendment would have protected family farms and small businesses without offering giveaways to super-wealthy estates. It would also have provided a measure of predictability to an area of tax law that has remained unsettled for 12 years.
Claims that letting the tax cuts expire for the richest 2% will hurt the economy are baseless. Under President Clinton, the richest 2% paid a higher rate than they do now and we saw 22 million jobs created during his presidency. Under President Bush, we saw only 5% of that job growth.
It's time to settle this issue, give all Americans a tax cut on the first $250,000 they make, and not waste nearly a trillion dollars over ten years giving more handouts to millionaires.
Democrats: Tax Cuts for Certainty and Fairness for Everyone
GOP: Holds Middle Class & Small Business Hostage for the Richest 2%
Democratic Plan (H.R. 15) | Republican Plan (H.R. 8) | |
Extend 2001 & 2003 Tax Cuts for the Middle Class | Yes. | Yes. |
Extend 2001/2003 Tax Cuts on Income Above $250,000 | No. All taxpayers continue to get tax cuts on the first $250,000 in income | Yes. More tax breaks for the richest 2 percent, providing $160,000 for the average millionaire -- on top of the $1 million that they received over the last 9 years |
EXTEND TAX CUTS FOR STUDENTS AND WORKING FAMILIES | YES. Continues current law on the American Opportunity Tax Credit for college, Child Tax Credit, and the Earned Income Tax Credit | No. Raises taxes on 25 million families by $1,000 on average, by allowing the credit for college to end, as well as the expansion of the Child Tax Credit and the EITC |
Small Business Expensing | MORE. Provides $297 million more than the GOP plan in small business tax relief -- allowing small businesses to write off more of their investments in capital equipment – up to $250,000 for purchases of new equipment of up to $800,000 | LESS.Reduces the amount that small businesses can write off for capital equipment – down to $127,000 for purchases of new equipment of up to $510,000 |
Deficit | DOWN. Ending tax cuts for the richest 2% reduces the deficit by $930 billion over 10 years | UP. Increases the deficit by $50 billion in one year for more tax cuts for the richest 2% |
Estate Tax | FISCALLY RESPONSIBLE. H.R. 16 ensures 99.7% of estates will not face any estate tax liability -- returning to the 2009 estate tax levels, with a $7 million exemption (per couple) and 45 percent rate | MORE FOR A FEW.Provides more tax breaks averaging $2.4 million for the wealthiest 3,600 estates -- extending current law for one year, with a $10 million exemption (per couple) and 35 percent rate |
Alternative Minimum Tax | 1 Year extension | 2 Year extension |
Capital Gains & Dividends | Extends current 15% rate for those making up to $250,000; returns to 20% for those making over $250,000 | Extends current special 15% rate for taxpayers, including those making over $250,000 |