DeLauro, Hinchey Fight for Tax Cuts for All Americans

Washington, DC – Representatives Rosa DeLauro (CT-3), Ranking Member of the Labor, Health, and Human Services Appropriations Subcommittee, and Maurice Hinchey (NY-22) introduced the Extended Tax Relief for All Act today.

This legislation will amend the tax compromise package passed in December to ensure that all Americans are able to benefit from the 2% social security payroll tax cut, which took the place of the Making Work Pay (MWP) refundable tax credit. For most individuals, this change meant paying less in taxes. But for those making less than $20,000, the dollar amount of the 2% payroll tax reduction is actually less than the dollar amount of the MWP tax credit. This legislation will provide a refundable tax credit to these individuals to make up the difference.

"During the debate in December over extending the Bush tax cuts for all Americans a common refrain was that we ought to not raise tax rates on anyone, including the wealthiest two percent of Americans. Unfortunately, under last year's tax compromise, some of our workers are indeed paying more taxes. Some of our most vulnerable citizens are being punished by a tax structure that was supposed to benefit everyone, and it is just not right," said Congresswoman DeLauro. "Additionally, it has been shown that lower-income workers are more likely to spend rather than save take home pay, pumping more money into the economy thereby creating jobs and economic growth. This bill will make up the difference for these workers, and ensure our tax policies are fair to every American."

"It's no wonder that billionaires are booming and the middle class is melting. If you own an oil company, you're getting one of the largest tax cuts in history this year, but if you pump gas and make less than $20,000 a year, your federal tax burden will actually be higher than it was last year," said Congressman Hinchey. "If you are a senior making $10,000 a year, your tax bill will go up by $200. That may not seem like a lot to some people, but to a working person on a fixed income it can make the difference. That's why we need to pass this bill - so that working people don't get a tax hike while CEOs get a tax break. It's only fair."