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News for Norther Colorado and the world

Monday, October 20, 2014

Gardner Votes To Block Middle Class Tax Cut

Democratic CCC2 Gardner Votes To Block Middle Class Tax Cut

Press Release

VOTE ALERT: Representative Gardner Votes To Block Middle Class Tax Cut

While Representative Cory Gardner (CO-04) continues to protect tax breaks for the ultra wealthy, today he voted to block a $1,000 middle income tax cut for 2.5 million Colorado families. Economists estimate that blocking this middle class tax cut could cost 400,000 American jobs. National Republican Congressional Committee Chairman Pete Sessions, who is responsible for Gardner’s re-election, has called the extension of the payroll tax a “horrible idea.”

“Representative Cory Gardner always defends tax breaks for the ultra wealthy, but he isn’t protecting a $1,000 tax cut for middle income Colorado families,” said Jesse Ferguson of the Democratic Congressional Campaign Committee. “Gardner had a chance to vote for this $1,000 tax cut for 2.5 million middle income Colorado families, but chose to vote with his party leadership instead.”

The nonpartisan Congressional Budget Office (CBO) found that reducing payroll taxes helps create more jobs than the tax breaks for the wealthy that Gardner continues to support.

BACKGROUND

Representative Cory Gardner voted against guaranteeing extending payroll tax relief. House Republicans, including Gardner, voted to bypass consideration of guaranteeing the extension of the payroll tax holiday beyond 2011. Without extension, payroll tax relief will expire at the end of the year. [Vote #870, 11/30/11]

2.5 Million Workers in Colorado Will Receive a Tax Break. Workers in Colorado will receive a tax break if the Payroll Tax Cut is passed by Congress. [Office of Tax Policy – Treasury Department, 11/30/11]

“Macroeconomic Advisers estimates that it would reduce GDP growth by 0.5 percent and cost the economy 400,000 jobs by the fourth quarter.” [Washington Post, 11/21/11] 

Gardner Pledged to Protect Tax Breaks. Gardner signed the Americans for Tax Reform’s Taxpayer Protection Pledge, stating that he would oppose any net reduction or elimination of deductions and credits, unless matched dollar-for-dollar by further reducing tax rates. [Americans for Tax Reform Pledge Signers, accessed 11/15/11]

Reducing Payroll Taxes on Firms Creates More Jobs Than Tax Cuts for the Wealthy. In January 2010, the nonpartisan Congressional Budget Office wrote that reducing payroll taxes for firms was among the policies “that would have the largest effect on output and employment per dollar on budgetary cost in 2010 and 2011. By contrast, policies that would temporarily increase the after-tax income of people with relatively high income, such as an across-the-board reduction in income taxes […] would have a smaller effects because such tax cuts would probably not affect the recipients’ spending significantly.” [Congressional Budget Office, 1/10]

National Federation of Independent Business: Payroll Tax Holiday Can Create Jobs. The National Federation of Independent Business has said that a payroll tax holiday for small businesses would help “struggling businesses reduce costs” and “can reduce unemployment and keep people working during a period of slowed economic growth.” [NFIB, accessed 9/16/11]

$1,000 Tax Increase. The New York Times found that extending the payroll tax “for a family earning $50,000 a year, it would amount to a savings of $1,000.”  [NY Times, 12/6/10]

 

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