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Pelosi Presses Boehner To Extend Bush Tax Cuts On Middle Income

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In a letter to John Boehner, House Minority Leader Nancy Pelosi presses the Speaker to abandon a key element of the GOP strategy, and extend for now the Bush tax cuts on middle- and lower income only. 

“Without further delay, the Majority Leadership should schedule a vote on extension of the middle-income tax cuts, as early as next week, to increase certainty for millions of American taxpayers and for the economy,” Pelosi writes. “We should not delay passing this legislation that will help afford all Americans the opportunity to reach their goals and realize the promise of the American Dream…. Extending middle-income tax cuts that benefit nearly all Americans is not controversial.  Congressional leaders across the ideological spectrum agree that we should not be raising taxes on middle-income people at this delicate time in our recovery from the worst recession in 70 years. It is unacceptable to hold tax cuts for the middle class hostage to extending multi-billion dollar tax breaks for millionaires, Big Oil, special interests, and corporations that ship jobs overseas.”

The middle-income Bush tax cuts benefit every family’s first $250,000. Pelosi wants Boehner to agree to extend that benefit to ever family’s first million, and let Congress further debate cuts that only benefit families earning more than that. But for the GOP that would amount to releasing a hostage without receiving a ransom. Those upper-income tax cuts will expire automatically unless Congress agrees to extend them, and Democrats will have no incentive to negotiate with Republicans on those tax cuts unless the GOP puts insists that either all the cuts get extended or none of them do. 

You can read Pelosi’s full letter below.

May 23, 2012

The Honorable John Boehner
Speaker
United States House of Representatives
Washington, D.C.  20515

Dear Speaker Boehner:

 

Without further delay, the Majority Leadership should schedule a vote on extension of the middle-income tax cuts, as early as next week, to increase certainty for millions of American taxpayers and for the economy.  We should not delay passing this legislation that will help afford all Americans the opportunity to reach their goals and realize the promise of the American Dream.

We must ask the very wealthiest Americans to pay their fair share.  Democrats believe that tax cuts for those earning over a million dollars a year should expire and that we should use the resulting revenues to pay down the deficit.  

By ensuring that the middle-income tax cuts do not expire, we will put money into the pockets of American consumers, saving the typical middle-income family thousands of dollars per year.   Extension of this middle-income tax cut will inject demand into our markets and strengthen small businesses.  By investing in both the short-term growth of our economy and the long-term prosperity of our nation, it will empower the entrepreneurial spirit of the American people.  We cannot afford another manufactured crisis that unnecessarily threatens the full faith and credit of the United States and jeopardizes our economic recovery.

Extending middle-income tax cuts that benefit nearly all Americans is not controversial.  Congressional leaders across the ideological spectrum agree that we should not be raising taxes on middle-income people at this delicate time in our recovery from the worst recession in 70 years.  It is unacceptable to hold tax cuts for the middle class hostage to extending multi-billion dollar tax breaks for millionaires, Big Oil, special interests, and corporations that ship jobs overseas.

I urge you to allow the House to vote on the permanent extension of middle-income tax cuts now and for Democrats and Republicans to work together to strengthen our middle class, create jobs, and grow our economy in a balanced and fiscally responsible way.

Thank you for your consideration.

best regards,

            
NANCY PELOSI 
Democratic Leader

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