[Congressional Record Volume 156, Number 160 (Tuesday, December 7, 2010)]
[Extensions of Remarks]
[Pages E2071-E2072]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              MIDDLE CLASS TAX RELIEF OF 2010 (H.R. 4853)

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                       Thursday, December 2, 2010

  Ms. McCOLLUM. Mr. Speaker, I rise in strong support of the Middle 
Class Tax Relief Act of 2010 (HR. 4853). This important legislation 
will extend middle class tax cuts, help

[[Page E2072]]

spur economic growth in America, and assist the vast majority of 
Americans, many of whom are struggling through a recovering economy.
  In January 2001, when I was sworn-in as a new member of Congress, 
President Clinton was ending his second-term, and the Federal 
Government was projected to run a 10-year surplus of $5.6 trillion. 
During the eight years of the Clinton administration, the U.S. economy 
created 21 million private sector jobs and incomes of middle-class 
families were rising. It was a time of economic prosperity. Tax rates 
allowed America to grow, fully pay for the cost of the Federal 
Government, and reduce the national debt. These years proved that 
responsible fiscal policymaking and a strong economy were not 
compatible with the Republican governing ideology we see today.
  Only weeks into my first-term, President George W. Bush Republican 
leaders in Congress made cutting taxes and massive increases of federal 
spending their priorities. In 2001 and 2003, Republicans in Congress 
passed the Bush tax cuts at a cost to the federal budget of $2.3 
trillion. I voted against these tax cuts because they were fiscally 
irresponsible and unnecessary. During the Bush presidency, I also voted 
against the pre-emptive war in Iraq and the Medicare Part D giveaway to 
the pharmaceutical industry. Combined these irresponsible policies 
added $4 trillion to our national debt in less than 10 years.
  Today, our country is slowly recovering from a severe economic 
recession, private sector jobs are starting to be created, and families 
across America are fighting to get ahead. President Obama and Democrats 
in Congress have taken aggressive actions to create and save jobs while 
preventing a second Great Depression from crippling our economy.
  The 2001 and 2003 Bush tax cuts are scheduled to sunset at the end of 
this month. Republicans included a sunset in those laws because 
exposing the real cost of making them permanent threatened 
congressional support. In other words, the cost of the tax cuts were so 
fiscally unsustainable that Republicans were forced to allow them to 
expire, placing their fate in the hands of a future Congress.
  With these tax cuts about to expire and the federal budget in crisis, 
it is time for honesty with the American people and responsible 
policymaking. At a time when federal taxes are the lowest share of GDP 
since 1950 and the budget deficit is at $1.3 trillion, we should all 
have concerns about our country's fiscal future. At the same time, we 
have a fragile economy and high unemployment which is squeezing middle-
class families. Congress has hard choices to make on taxation, 
spending, and entitlements that will impact our economy, our federal 
budget, and the long-term security of our families.
  To protect the economy until robust job growth returns, I will vote 
in favor of the Middle Class Tax Relief Act of 2010 (HR. 4853), which 
extends the middle-class tax cuts on taxable earnings of up to $250,000 
and up to $200,000 for individuals. Under this legislation, 97 percent 
of American families and small businesses will receive a tax cut. It 
includes an extension of marriage penalty relief, the earned income tax 
credit, and the $1,000 child tax credit. In addition, the bill also 
permanently extends the reduced rates on capital gains and dividends 
for middle income families.
  For the wealthiest 3 percent of Americans, I do not support extending 
the Bush tax cuts. The cost of extending these cuts would cost the 
American taxpayer $700 billion dollars over the next 10 years. History 
shows that tax cuts for the wealthiest Americans are the wrong way to 
strengthen the economy and do not create jobs. President Bush had the 
worst jobs record of any President since the Great Depression, actually 
shrinking the private sector by and losing 4.6 million American 
manufacturing jobs over eight years. At a time when we have soaring 
budget deficits, our country simply cannot afford to borrow the $700 
billion cost of these tax giveaways just to give the most fortunate 
Americans another tax break.
  The passage of H.R. 4853 will help millions of middle class families 
all across the nation weather the economic storm, while letting the tax 
cuts for wealthiest Americans expire. Congress has an obligation to 
work to sustain this economic recovery, help the private sector create 
jobs, and ensure the long-term fiscal well-being of the Federal 
Government. This is a critical time for our country and I believe we 
must work together to provide tax relief to the middle class families 
hit hardest by the recession. I urge my colleagues to join me in voting 
for the Middle Class Tax Relief Act of 2010.

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