Blumenauer Urges Extension of Payroll Tax Cuts

WASHINGTON – Rep. Earl Blumenauer, a senior member of the House Ways & Means and Budget Committees, urged Congress to pass the payroll tax cuts that would maintain and expand support for middle class families as the economy continues to struggle out of the greatest recession of our lifetimes:

“The Senate is currently debating a proposal to extend and expand the payroll tax cut, as well as pay for it. Under this proposal, employees would receive a 50% additional cut in the payroll tax and employers would have a slight reduction in the payroll tax that they pay on their employees up to the first 3.1% or $5 million of payroll.

“This would help 98% of businesses without unnecessary giveaways to large, extremely profitable corporations. And most important, it would prevent the typical family from suffering a significant increase in their taxes while the economy is still fragile. This proposal would give the average family an extra $1,500 a year to spend.

“The simple fact is that our economy and our families cannot afford to take the economic hit that is poised to pull $100 billion out of the economy with the expiration of the 2% payroll tax holiday that's scheduled to expire this year.

“Unfortunately, we have people here that are caught up in an ideology that trumps concern for the economy and the typical American family. Americans were and are ready for action that is bold, big, balanced and fair. Now, we actually can start on the road to recovery by just going on autopilot. The default that is set up that will let the Bush-era tax cuts expire and move towards automatic sequestration will actually solve most of the deficit problem that we face.

“We can adjust, we can craft, we can focus it to get the most benefit and we can start with a modest adjustment. I'd hope my colleagues will not let the worship of the top one-tenth of the economic pyramid trump concerns for the rest of the working families and the American economy."

Posted on November 30, 2011.