FOR IMMEDIATE RELEASE
March 3, 2011
Adam Sarvana (202) 225-2435 (Grijalva)
Tim Schumann (202) 225-4755 (Ellison)
Reps. Raúl M. Grijalva and Keith Ellison, co-chairs of the Congressional Progressive Caucus (CPC), released the following statement today on the Republican proposed middle class tax increase:
After only 54 days in the majority, Republicans have broken their promise to the American people and voted to raise taxes on middle class families. After extending the Bush tax cuts for millionaires and billionaires who created the economic crisis, Republican House Leadership today brought a bill to the floor that raises taxes on middle class families by nearly $5,000.
In short, instead of creating jobs, Republicans have launched another attack on working families.
This tax increase is part of H.R.4, a measure to repeal IRS reporting requirements mandated by last year’s health care reform law. House Democrats support repealing the "1099" requirement, which places an undue burden on small businesses by requiring them to report any annual payments of more than $600. Republicans plan to pay for this by slapping a $25 billion dollar tax increase on the middle class.
Under the scheme, if a family of four earning $88,000 a year gets a Christmas bonus of $250, they would be required to refund their entire health insurance tax credit of $4,640 to the government. Just last year, Republicans opposed Democrats' proposal to pay for "1099" repeal by closing tax loopholes for corporations that ship jobs overseas. The American people should not have to choose between small businesses and middle class families. We support a plan to stop the handouts for big business that also strengthens the middle class.
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