Congressman Garamendi Proudly Votes with Democrats for Permanent Tax Cuts for Middle Class and Small Businesses
GOP Obsession with Tax Cuts for Richest Americans
Weakens Economy, Garamendi Argues
WASHINGTON, DC – Congressman John Garamendi (D-Walnut Creek, CA), former chair of the California Commission for Economic Development, today joined his Democratic colleagues in voting for a package of tax cuts designed to help working and middle class Americans and to grow the economy.
"To repair our economy and create jobs, we need to put money in the hands of the people most likely to spend it," Congressman Garamendi said. "This package of tax cuts gives everyone a helping hand but wisely focuses on the needs of small businesses and working and middle class consumers: those most likely to purchase goods, drive consumer spending, and stimulate demand for new hiring."
Under the Democratic tax assistance package, everyone in America who pays taxes will receive a tax cut up to $200,000 for individuals and $250,000 for dual filers in their adjusted gross income. The income tax rates for the wealthiest two percent of Americans beyond $200,000 or $250,000 are restored to Clinton-era levels. Most economists acknowledge that tax cuts for the wealthiest in society are among the least effective ways to grow the economy, and they add $700 billion to the deficit over ten years.
"Giving the wealthiest Americans an average tax giveaway of $83,347 per person does not address the fundamental problem of our economy: not enough jobs. The wealthy are the people most likely to hoard their money at just the moment we need money gushing into shops throughout America," Garamendi explained.
"The rich will dump most of their tax windfall into things that don’t help America create jobs. After borrowing $700 billion over ten years from China to pay for tax cuts for the wealthy, we would see much of this money funneled directly into investments in foreign companies and unproductive assets," Garamendi continued. "Public policy is about choices, and that’s a bad choice. Let’s choose instead to use our limited resources to rebuild American manufacturing to create the jobs we need to stay competitive."
If the Democratic tax cut package is put into law:
The average American family will save about $1,000 a year;
97% of American families and small businesses will get tax cuts;
Almost all families with children will have access to a $1,000 a year child tax credit;
More than 25 million more Americans will be protected from the Alternative Minimum Tax;
For individuals earning $200,000 and married couples earning $250,000 in adjusted gross income, capital gains and dividends taxes will be kept at a lower 15 percent rate, saving investors about $100 billion over ten years;
Student loan interest deductions will be kept permanently at $2,500 for people earning up to $75,000; and
Small businesses will be able to permanently write-off up to $125,000 of capital expenditures.