Lipinski Votes for Bipartisan Tax Cut Compromise

Today, Congressman Dan Lipinski (IL-3) voted for the bipartisan compromise that temporarily extends tax cuts for all Americans and provides other help for middle-class families.

“During these tough economic times we cannot afford to raise taxes, especially on the struggling middle class,” Congressman Lipinski said. “Extending the tax cuts and lowering the payroll tax will put more money into the pockets of the people who need it most, and enable them to use it as they see fit, helping to promote growth and job creation.”

“There has been much criticism of some of the provisions of this compromise,” Lipinski continued. “I am not happy that the bill does not include the direct help to seniors on Social Security that I have been strongly promoting since benefits were frozen for this year and next year. Since I have been in Congress I have supported a compromise on the estate tax that I believe is better than the one included in this bill. And I believe the payroll tax cut could be done in a better way to protect the future of the Social Security Trust Fund.

“But the nature of compromise is that no one gets everything they want,” Lipinski said. “After a week of hearing claims that it would be possible to improve upon the compromise worked out by the President and the Republicans, I concluded that it is probably not possible to make any significant substantive changes without threatening the agreement. That is a chance I do not want to take, since it would result in everyone’s taxes going up on January 1 and we would likely not be able to pass most of the good provisions of this compromise in the new Congress. I voted present on the estate tax amendment because while I supported that change, I did not want to endanger the entire agreement by sending the bill back to the gridlocked Senate.”

H.R. 4853 extends the 2001 and 2003 income tax cuts for all Americans for two years, preventing a tax increase of $2,000 for a typical family, and allowing Congress to revisit the issue in light of concerns about the national debt once the economy has recovered. The bill includes a 2 percent reduction in the payroll tax for next year, which will provide total tax relief of around $120 billion. It also extends emergency unemployment relief, the child tax credit, marriage penalty relief, and capital gains and dividend tax cuts, and prevents millions of taxpayers from being hurt by the alternative minimum tax. In addition, it allows businesses to deduct the full cost of capital expenditures next year to encourage job-creating investments.

Congressman Lipinski has supported a temporary extension of all tax rates and voted last month for a bill in the House which would have extended the tax cuts for the middle class.

“I am pleased that bipartisan negotiations were able to produce a bill that members of both parties could agree on,” Congressman Lipinski said. “While it did not suit everyone in every respect – myself included – I believe the bill represents a sensible compromise. It is good for families, small businesses, and our economy as whole. I have always believed and always acted on the belief that Democrats, Republicans, and Independents should all work together to promote policies that are good for our country, especially the middle class. I am hopeful that this compromise helps lead to progress on many of the important challenges our nation is facing.”

(December 16, 2010)