Garamendi Votes for Fair and Fiscally Responsible Middle Class Tax Cuts
August 1, 2012
Also, Rejects Budget Busting Tax Breaks for Millionaires and Billionaires
WASHINGTON, DC – Today, Congressman John Garamendi (D-Fairfield, CA) voted against H.R. 8, a Republican bill that would raise taxes on the middle class in order to shovel wasteful giveaways to millionaires, billionaires, and large corporations. While opposing this bill, he voted in strong support of H.R. 15, a Democratic bill for middle class tax cuts that are fair, fiscally responsible, and expand economic opportunity. Congressman Garamendi is also a co-author of legislation that extends the existing estate tax rate, which imposes a 35% tax on estates over $5 million for individuals and $10 million for couples, thus limiting the estate tax to less than 0.2% of all estates across the country.
The Republican tax bill, H.R. 8, gives the average millionaire a $160,000 tax cut while giving about 25 million low and middle income American families an average tax hike of $1,000 by slashing the Child Tax Credit, the Earned Income Tax Credit, and the American Opportunity Tax Credit, which helps make college more affordable for middle class families.
The House Republican tax bill would even place an additional tax burden on many military families. For example, an Air Force Sergeant with eight years' service, who is married with three young children at home, would pay $1,118 more under the Republican plan.
"Instead of asking more from middle class families, who are struggling to make ends meet, we need everyone to pay their fair share," said Congressman Garamendi. "By lowering rates for billionaire hedge fund managers, the Republican Tax Bill will add $50 billion to the deficit, raise taxes on the middle class, and slash crucial investments in our economic prosperity, such as teachers in the classroom, preventative health care, and ground breaking energy research."
Garamendi continued, "Meanwhile, Democrats have offered a Make It In America agenda to create jobs and expand economic opportunity for everyone. We have passed seventeen major tax cuts to strengthen the middle class and help small businesses grow and prosper. I call on my colleagues to join us to create a level playing field, where everyone who plays by the rules can live out their dreams."
The Democratic Tax Bill cuts taxes for every American up to $250,000 of income. 98% of individuals and 97% of small businesses will not pay a penny more in taxes. For a list of tax cuts for small businesses that President Obama has signed into law, click here.