Early this morning (just after midnight) the Bush-era tax rates were extended for another two years with overwhelming bipartisan support (277-148), but there was also bipartisan discontent.
The tax bill, which includes keeping rates at 2001 and 2003 levels, while returning the Death Tax on those with estates valued at $5 million, received support from U.S. Sens. Jim Webb and Mark Warner and U.S. Reps. Rob Wittman, Glenn Nye, Tom Perriello, Bob Goodlatte, Rick Boucher, and Leader-elect Eric Cantor.
U.S. Reps. Bobby Scott, J. Randy Forbes, Jim Moran and Frank Wolf did not vote in favor of the bill, but for very different reasons.
Scott and Moran voted against keeping the rates low and not hiking them, fearing future budget cuts and Forbes and Wolf opposed not making the tax-cuts permanent. (as did Michele Bachmann and Mike Pence).
Scott said:
“We already know how the incoming Republican Majority will address the deficit – all you need to do is look at the so-called Road Map for America’s Future, introduced by the incoming Republican Chairman of the Budget Committee. By starving Social Security and the rest of the Federal Budget of revenue by passing this package, we will essentially have to adopt the Republican plan and cut Social Security, let Medicare wither on the vine, cut federal college student aid programs, and gut the Education and Labor Departments in order to pay for this.”
Pence provided the conservative’s argument:
“I believe the short-term tax deal negotiated by the White House and Congressional leaders is a bad deal for taxpayers, will do little to create jobs and I cannot support it….
We perpetuate the uncertainty that’s built into our tax code.
Uncertainly is the enemy of our prosperity. And frankly, we can provide assistance to families struggling in this economy by making the hard choices to pay for it without adding to the national debt.”
And Bachmann added:
“Instead of providing economic certainty, Congress has been playing politics with the money that belongs in the pockets of hardworking Americans. In mere days, tax hikes will affect all earners unless Congress acts, but President Obama is insistent upon pairing a tax vote with unfunded spending….I am disheartened that President Obama is pushing for a so-called compromise which will only add to our deficit.”
In the end, the bipartisan support for the bill is summed up by Wittman:
“This legislation stops a massive, looming tax hike for families and businesses,” Wittman said. “In the tax debate there is one simple truth – higher taxes do not get anyone hired. Our economy continues to struggle, and unemployment is too high because of the uncertainty and skyrocketing spending coming out of Washington. This bill’s “cost” assumes that taxpayer dollars earned next year belong to the government! Only in Washington does that logic make sense. I believe that families and small businesses can spend their hard-earned money more wisely than government. This bill isn’t perfect but it’s critical that we stop this tax hike. Congress’s next step to get our economy moving is to address the debt and deficit problem – the first order of business in January. As we begin the 112th Congress, my first priority will be to rein in spending and cut out waste, fraud and abuse in the federal budget. Our future lies not in the size of government, but in the people who drive this country’s prosperity: the entrepreneurs, the innovators, and those who work hard to achieve their American Dream.”
