Manchin to Vote to Cut Taxes for 99 Percent of West Virginians
Urges Congress to pass a bipartisan, comprehensive tax reform that lowers tax rates, broadens the revenue base, closes tax loopholes, cuts spending and reduces debt
Washington, D.C. – U.S. Senator Joe Manchin (D-W.Va.) announced today in a speech on the Senate floor that he will vote to extend tax cuts for the middle class that will help more than 99 percent of West Virginians.
The Senate is expected to vote tomorrow on a proposal to extend the Bush tax cuts for families that make less than $250,000, which includes more than 99 percent of West Virginians. A competing proposal would extend all of the Bush tax cuts, including those that benefit the wealthiest Americans, at a cost of approximately $400 billion.
In his speech, Senator Manchin made it clear that short-term proposals will not solve our financial problems and he will continue to work toward bipartisan, comprehensive reform.
“As you can see – and as West Virginians know – we urgently need to put our country’s financial house back in order, and the people of West Virginia are tired of temporary solutions to our long-term problems,” Senator Manchin said. “As I have said so many times, I will work with both sides of the aisle – Democrats and Republicans – on a comprehensive solution that lowers tax rates, broadens our revenue base, closes loopholes, cuts spending and reduces our debt – like the framework proposed by the bipartisan Bowles-Simpson commission.
“Unfortunately, neither of the proposals on the Bush tax cuts will solve our long-term debt and fiscal problems. At the same time, with our debt problem getting worse every year, we must come together to take responsible and fair steps toward reducing our debt – even if they are only temporary.
“Let’s look at the two proposals that have been offered: one from my Republican colleagues in the House that unfortunately kicks the can down the road entirely and extends these tax cuts at a cost of $400 billion dollars. What people don’t know is that even though it would extend tax cuts for the wealthiest, it would actually get rid of some tax reductions for middle and low income Americans, like the expanded child tax credit. That is tremendously unfair.
“Another proposal – from the Democrats here in the Senate – would cost $250 billion, which is at least starting to move in the right direction to reduce our deficit – and it keeps a tax cut for more than 99 percent of all West Virginians.
“When considering these two proposals, I kept two priorities in mind: putting our fiscal house back in order and restoring fairness to the tax code. So, while I would prefer a bipartisan, comprehensive solution, I will support the plan to keep taxes low on families that make less than $250,000.”
According to the latest available figures from the West Virginia Department of Revenue, more than 99 percent of all West Virginians will keep their current tax rates under the proposal Senator Manchin supports.
“The fact is, we can’t keep trying temporary solutions to our serious budget problems. The truth is, these tax cuts won’t restore confidence in our government or our economy to create good jobs or keep the ones we have. They certainly won’t put our fiscal house back in order.
“What they will do is be used as fodder in political ads for the next 100 days against both sides.
“So I will continue to work across the aisle on a comprehensive, bipartisan plan because – when it comes right down to it – these tax cuts simply won’t fix the financial problems our country faces.”
Full text of Senator Manchin’s remarks as prepared for delivery are below:
I rise today to express my indescribable frustration and genuine disbelief that we are looking at two proposals that do not do enough to fix this nation’s financial problems – and that both have been predicted to fail.
I speak of the Bush tax cuts, and how those of us in the responsible middle find ourselves caught between a rock and a hard place, with a vote that offers no real solutions at all.
It is no secret that I prefer fixing the problems this country faces. We are hurtling toward $16 trillion in debt, and for the first time since the World War II era, our debt exceeds the output of our economy. Even our generals say the greatest threat this nation faces is not a foreign power or a terrorist organization – but the debt that we have created ourselves. We are staring down the barrel of insurmountable obligations for decades to come – and we are passing up a key opportunity to put this country in better shape for the next generation.
As you can see – and as West Virginians know – we urgently need to put our country’s financial house back in order, and the people of West Virginia are tired of temporary solutions to our long-term problems. As I have said so many times, I will work with both sides of the aisle – Democrats and Republicans – on a comprehensive solution that lowers tax rates, broadens our revenue base, closes loopholes, cuts spending and reduces our debt – like the framework proposed by the bipartisan Bowles-Simpson commission.
Unfortunately, neither of the proposals on the Bush tax cuts will solve our long-term debt and fiscal problems. At the same time, with our debt problem getting worse every year, we must come together to take responsible and fair steps toward reducing our debt – even if they are only temporary.
Let’s look at the two proposals that have been offered: one from my Republican colleagues in the House that unfortunately kicks the can down the road entirely and extends these tax cuts at a cost of $400 billion dollars. What people don’t know is that even though it would extend tax cuts for the wealthiest, it would actually get rid of some tax reductions for middle and low income Americans, like the expanded child tax credit. That is tremendously unfair.
And another proposal – from the Democrats here in the Senate – would cost $250 billion, which is at least starting to move in the right direction to reduce our deficit – and it keeps a tax cut for more than 99 percent of all West Virginians.
When considering these two proposals, I kept two priorities in mind: putting our fiscal house back in order and restoring fairness to the tax code. So, while I would prefer a bipartisan, comprehensive solution, I will support the plan to keep taxes low on families that make less than $250,000.
According to the latest available figures from the West Virginia Department of Revenue, more than 99 percent of all West Virginians will get a break on their taxes under this proposal. And the wealthiest among us will pay the rates they did during Bill Clinton’s presidency – the greatest era of prosperity I can remember in my life.
On the other hand, the proposal that includes extending the tax cuts for the wealthiest Americans carries a heavy price for this nation: it’s about $150 billion more than the Democrats’ proposal. Given our dire budget situation, this country just can’t afford that. We simply have to prioritize and close the gap.
The fact is, we can’t keep trying temporary solutions to our serious budget problems. The truth is, these tax cuts won’t restore confidence in our government or our economy to create good jobs or keep the ones we have. They certainly won’t put our fiscal house back in order.
What they will do is be used as fodder in political ads for the next 100 days against both sides.
I cannot understand why we continue to take votes that are more about making one side look bad or taking cheap shots than actually solving problems.
So I will continue to work across the aisle on a comprehensive, bipartisan plan because – when it comes right down to it – these tax cuts simply won’t fix the financial problems our country faces.
I talk to countless business and labor leaders, and when I ask them what will encourage them not only to create jobs, but that we need to keep the jobs we already have now, the answer is simple: certainty. They need to be able to plan their next steps. They need to know that their government is working as a partner and ally, not as an adversary.
We didn’t pull these stunts in West Virginia when I was Governor. We were willing to get our hands dirty, to come to the table, to have a genuine and respectful discussion on the right direction for our state. And sometimes that led to a respectful agreement to disagree, but at least we moved forward and made a decision.
It’s been nearly two years since the bipartisan commission on reducing our debt recommended a plan that people of all political stripes support. It’s time to go back to that framework and provide this country with an honest solution.
In fact, the only thing that seems to be holding our feet to the fire right now is the sequester – which is becoming quite the scary term around here.
For people who don’t live and work in the Beltway, here’s what the sequester is: if those of us in Congress can’t agree on a real, substantial plan to fix our finances, we’ll have to make some very painful cuts in some very important areas: our Department of Defense, our schools and other domestic priorities like veterans’ services and Head Start. Both Democrats and Republicans care about those issues, so both Democrats and Republicans have some skin in the game when it comes to finding an agreement.
Because let me tell you, the reason that the sequester was put in place almost a year ago was in case we couldn’t come to an agreement on a big fix – one that the so-called Super Committee was tasked to put forward.
Well, they didn’t agree on a super fix and this is our penalty.
I really believe that the greatest mistake that we could make would be to walk away before the end of the year and not vote on a clear direction to fulfill the commitment and promises that we made to the American people – which was that we would fix the country’s financial problems or the sequester would go into effect. That’s the biggest mistake that we could make as a nation – letting the American people down.
So now, a year after Congress has failed to reach an agreement, I’m surprised to find that some of my colleagues who voted for the sequester – knowing full well that Congress needs the threat of painful cuts before we can get anything done – are complaining about something they supported. I stand with those – including the President – who are drawing a hard line in the sand on our finances.
Like it or not, this painful sequester is the lynchpin to a better agreement. It’s the only way we’re going to get to something bigger.
And a better agreement will look a lot like the bipartisan, comprehensive Bowles-Simpson framework, not the Bush tax cuts.
Because this country needs a real solution. Because this Congress needs to come together on that solution. Because if we can’t come together, there will be dire consequences for this country with or without the cuts in the sequester. I sincerely hope and pray – and will work for – a compromise, but I believe the threat of the sequester might be the only thing that will force Congress to get its job done.
Thank you, and I yield the floor.
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