[Congressional Record Volume 156, Number 169 (Saturday, December 18, 2010)]
[Extensions of Remarks]
[Page E2178]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 TAX RELIEF, UNEMPLOYMENT INSURANCE REAUTHORIZATION, AND JOB CREATION 
                              ACT OF 2010

                                 ______
                                 

                               speech of

                            HON. LOIS CAPPS

                             of california

                    in the house of representatives

                      Thursday, December 16, 2010

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 4853) to 
     amend the Internal Revenue Code of 1986 to extend the funding 
     and expenditure authority of the Airport and Airway Trust 
     Fund, to amend title 49, United States Code, to extend 
     authorizations for airport improvement program, and for other 
     purposes:

  Mrs. CAPPS. Mr. Chair, I rise today in somewhat reluctant support of 
the Tax Relief, Unemployment Insurance Reauthorization, and Job 
Creation Act. I am supporting this bill because of the tremendous good 
it will do for middle class families in my district and throughout the 
country.
  This bill extends emergency unemployment benefits for 400,000 
Californians whose benefits have expired. Not only do these benefits 
help working families pay the bills and put food on their tables, they 
also stimulate economic growth, creating $1.63 in economic demand for 
every dollar in benefits.
  This bill also extends dozens of tax incentives that benefit middle 
class families like the college tuition deduction, child tax credit, 
marriage penalty relief, and the enhanced earned income tax credit. It 
helps small businesses expand and hire more workers by extending the 
R&D tax credit, zero percent capital gains tax on long term small 
business investments, and bonus depreciation for capital investments.
  And it also invests in a clean, renewable energy future by extending 
tax incentives for renewable fuels, energy-efficient appliances and 
home construction, and the successful Treasury Department grant program 
for renewable energy projects. These extensions will help local green 
businesses in my district like Clipper Wind, REC Solar, and CREE 
Lighting create quality green jobs that can't be shipped overseas. And 
it will stimulate our economy by expanding our use of cleaner, safer 
forms of energy.
  The bottom line is this bill will create jobs and spur economic 
growth, and these are provisions that I strongly support. However, this 
bill also continues to tilt our tax code in favor of the wealthiest 
three percent of our society. And I oppose those provisions in the 
strongest of terms.
  I support the permanent extension of current tax rates on income up 
to $250,000 and, in fact, representing an area with such a high cost of 
living, I would probably support extending that limit up to $500,000. 
But, Mr. Chair, I do not see why we should extend the reduced tax rates 
for incomes in excess of that.
  This proposal to extend the reduced tax rates that only go to 
millionaires and billionaires will cost taxpayers over $80 billion, 
simply adding to our deficit. To add insult to injury, this tax cut 
extension for the super-rich lasts for two years while emergency 
unemployment benefits last for only 13 months. And, Mr. Chair, 
according to virtually all economists these extensions will do 
virtually nothing to stimulate economic growth.
  Adding to the giveaways, Republicans insisted on ``fixing'' the 
estate tax to ensure that only 0.14 percent of estates are subject to 
the tax, adding another $68 billion to the deficit. I agree that the 
estate tax needs to be fixed, but this is not the solution. At a time 
when middle class families continue to struggle, continuing tax cuts 
that only go to millionaires and billionaires is irresponsible, 
wasteful and bad economics. These tax cuts for the super wealthy will 
add nearly $140 billion to the deficit in just two years.
  I am also very concerned that this bill includes a temporary two 
percent reduction in payroll taxes for all employees and self-employed 
individuals. While I strongly support additional tax relief to Middle 
Class families--which this achieves--the payroll tax reduction puts the 
Social Security Trust Fund at risk of losing its independent revenue 
stream. I believe we should extend the Making Work Pay Tax Credit, 
which gave targeted tax relief to those that needed it most without 
endangering the financial security of Social Security.
  Finally, the bill before us needlessly extends the excessive ethanol 
tax subsidy of 46 cents per gallon. Thanks in part to this harmful 
subsidy, the U.S. will divert nearly 40 percent of the domestic corn 
crop from food and feed to fuel this year, which will only exacerbate 
the growing problem of increasingly volatile and high commodity prices. 
Lowering this subsidy by just 10 cents per gallon would help reduce 
these harmful side effects, and save taxpayers roughly $1 billion next 
year.
  Mr. Chair, I am very disappointed that this important legislation to 
prevent a tax increase on everyday Americans has been loaded down with 
so many unnecessary and wasteful provisions. But I'm supporting this 
bill because the needs of middle class families and small businesses--
the backbone of our economy--are too important to be left to die in the 
hands of Republican leadership next Congress.
  This bill is a compromise. It's not the compromise I would have 
written. But it's the compromise that will get desperately needed help 
to the families that need it most. Time has run out and we must act now 
for the good of the American people.

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