December 14, 2010

Statement from Senator Joe Manchin Regarding Vote on Tax Cut Compromise

Sen. Joe Manchin today released the following statement regarding the Senate’s vote to invoke cloture on the motion to concur in a message from the House on H.R. 4853, with the Reid-McConnell substitute tax amendment, entitled The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010:

"The stark choice we face is between doing nothing, which would result in a massive tax increase, as well as less help for the unemployed and small businesses, or extending all the tax cuts for a temporary time, which will provide much-needed relief for all Americans. With our economy fragile and jobs scarce, I sincerely believe doing nothing would be a worse outcome for our nation and the economy. Therefore, I am supporting the bipartisan tax cut compromise.

“However, let me also be clear, I have grave concerns over our rising national debt and budget deficits. While we did not address this important issue here, I am committed and dedicated to getting our nation's fiscal house in order. In the next Congress, I believe we must show a bipartisan determination to get this done, and I will work with Republicans and Democrats to ensure we achieve a more promising fiscal future for our nation.”

Additional Background regarding Reid-McConnell substitute tax amendment, entitled The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010:

· Extension of the 2001, 2003 tax cuts and tax relief for working families: The bi-partisan compromise legislation extends current income tax rates for two years for all income levels. The legislation also extends current tax policies designed to help working families, including the child tax credit, the earned income tax credit and the American Opportunity Tax Credit. Additionally, Alternative Minimum Tax reforms proposed in the bill would ensure that approximately 21 million families are not hit with a tax increase, which could equal an increase of more than $2,000 for the typical family. The bill also extends relief from the marriage penalty for individual taxpayers filing joint returns.     

· Extension of Additional Unemployment Benefits through the end of 2011:An estimated 2 million American workers will lose unemployment benefits if Congress does not extend these programs.  Workforce West Virginia estimates that more than 10,000 West Virginians are in danger of losing benefits if a compromise in Congress cannot be reached.   

· One-Year Employee-side Payroll Tax Holiday: The payroll tax cut will immediately increase take home pay for more than 155 million American workers. This tax holiday has no negative impact on Social Security because it provides for a transfer of General Revenues to the Social Security Trust Fund.

· Assistance for Businesses to help create jobs: The legislation provides a two-year extension of the Research & Development tax credit and other business tax incentives.  In addition, the bill permits all businesses to depreciate 100 percent of investments in new business equipment placed in service in 2011, and 50 percent depreciation for new business equipment placed in service in 2012.