Research Briefing

House Dems Vote To Ditch Instead Of Voting To Protect Middle Class And Small Businesses From Tax Hike

 39 DEMOCRATS VOTE WITH HOUSE REPUBLICANS TO OPPOSE ADJOURNING BEFORE VOTING ON THE DEMS’ TAX HIKE

“Thirty-Nine Democrats, Many Of Them In Tight Races, Broke Ranks Wednesday To Vote Against Adjourning The House, A Direct Rebuke To Democratic Leaders’ Decision Not To Hold A Tax Cut Vote Before Adjourning For Elections.”  (Simmi Aujla, “Dems Rebuke Leaders On Adjournment,” Politico, 9/29/10)

Pelosi Was Called In To Cast The Deciding Vote To Adjourn Without Voting On Their Tax Hike. “The vote was so close, 210-209, that Speaker Nancy Pelosi, who rarely votes on day to day legislation, had to cast the tie breaking vote on the adjournment resolution.” (Simmi Aujla, “Dems Rebuke Leaders On Adjournment,” Politico, 9/29/10)

MIDDLE CLASS AND SMALL BUSINESSES CONTINUE FACING TAX HIKE THREAT

Dems’ Tax Hike Will Result In A $3.9 Trillion Tax Increase.  (Thomas A. Barthold, Chief of Staff For The Joint Committee On Taxation, Memo To Jon Traub and Dave Olander, 8/6/10)

The Average Middle Class Family Across The United States Will See A Tax Hike Of $1,540.  (“Effect of Expiration of Bush-Era Tax Cuts on Average Middle-Income Family, By State and Congressional District," Tax Foundation, 8/1/10)

Small Businessman Says He Hasn't Hired This Year Because His Taxes Have Increased And He Expects Them To Increase Again With The Dems' Tax Hike.  “Last year, even as he struggled through the worst of the recession, Chris Upham said revenue at his District-based real estate and construction businesses doubled -- allowing him to hire two agents. But Upham said he hasn't increased his staff thus far in 2010 and he doesn't expect to for the remainder of the year. That's because his taxes rose sevenfold. And he said he anticipates they'll increase again if the Bush tax cuts for people earning $250,000 and above expire at the end of the year.” (V. Dione Haynes, "Small Businesses Feel Squeeze By Obama's Policies," The Washington Post, 9/4/10)

Small Businesses Hesitant About Their Future Due In Part To Uncertainty Surrounding The Dems' Tax Hike.  “Joy Staveley of Flagstaff, Ariz., said it was clear to her why people are more scared to take a risk on a new business: There are more regulations, taxes and government-mandated costs -- and fears of more to come -- with President George W. Bush's tax cuts expiring soon, new healthcare rules and pending legislation on energy.” (Don Lee, "Small Business Sidelined In Slow Recovery From Recession," The Los Angeles Times, 7/3/10)

In Their August Meeting, Several Fed Officials Argued That Businesses Were “Frozen By Uncertainty About Taxes.” “Federal Reserve officials wrestled with a slew of questions about the disappointing recovery before deciding at a fractious Aug. 10 meeting to prevent their securities portfolio from shrinking, according to minutes released Tuesday. High unemployment was one issue. Several Fed officials argued that business was frozen by uncertainty about taxes, regulations and health- care costs.”  (John Hilsenrath, “Fed Wrestled With Questions, Doubts,” The Wall Street Journal, 9/1/10)