Schakowsky Votes Against GOP Tax Plan Favoring the Wealthy
Washington, D.C. (August 2, 2012) – Today, Rep. Jan Schakowsky released the following statement after House passage of HR 6169:
“Yesterday House Republicans extended the Bush tax cuts for the wealthy while raising taxes on military families and the middle class. Today they doubled down on that vision as they laid out their plan for what comprehensive tax reform should look like. It was more of the same: giving additional tax breaks for the richest 2%, increasing taxes on the middle class, and enacting policies that would encourage rich corporations to ship jobs and profits overseas.
Under the Republican plan, the top tax rate for even the very richest Americans would go down to 25 percent. Their proposal would give the average millionaire an astounding $331,000 tax cut, while those making less than $200,000 a year would see their taxes go up by an average of $4,500. Four or five thousand dollars may not be much to the Romney-rich, but for most Americans that money is worth a car down-payment, a college tuition bill, or their grocery bill for nearly a year.
The Republican plan would also change the tax code so that corporations would never have to pay taxes on earnings from overseas, incentivizing companies to move their operations offshore.
Democrats offered an alternative that would build the middle class, rather than squeeze it even further. Our alternative calls for tax reform that eliminates tax incentives for off shoring jobs and profits; preserves tax benefits important to the middle class, including those for healthcare, education, retirement, home ownership, and small business; and increases revenues to bring down our deficit and invest in economic growth. Democrats support protecting the tax cuts for 98% of Americans and 97% of small businesses, while letting the tax rates on income over $250,000 a year to where they were under President Clinton. Those rates would go back to 36 and 39.6 percent, still lower than the top rate under President Reagan.”