House Republican payroll tax negotiators finally returned from vacation today, but Representative Mike Kelly (PA-03) continues to oppose ending tax breaks for millionaires and billionaires in order protect middle class taxpayers from a $1,000 payroll tax hike at the end of February. Kelly would rather protect the ultra wealthy who pay less taxes than most middle income families — like Mitt Romney, who only paid 14% — and force payroll taxes to rise for 160 million middle income Americans. At the end of last year, House Republicans like Kelly nearly forced the payroll tax cut to expire.
“Representative Mike Kelly would rather have middle income taxpayers face a $1,000 payroll tax hike than have Mitt Romney and millionaires like him pay more than 14% in taxes,” said Jesse Ferguson of the Democratic Congressional Campaign Committee. “It’s like groundhog day all over again with Mike Kelly risking a $1,000 tax hike on 160 million middle income Americans just to protect tax breaks for the ultra wealthy.”
Background
Payroll Tax Conferees to Meet on January 24, 2012. “The conference committee looking to hammer out a year-long extension of the payroll tax cut will meet for the first time on Jan. 24, top lawmakers said Thursday evening.” [The Hill, 1/20/12]
Romney Paid 14% Tax Rate. “Mitt Romney took in $21.7 million in income in 2010 and paid $3 million in taxes, a tax rate of just under 14 percent, according advanced copies of the returns that were provided to several newspapers.” [ABC News, 1/24/12]
House Republicans are Refusing to Budge on Payroll Tax Positions. According to Bloomberg News, “Congressional negotiators are refusing to budge from positions that could stall talks to extend a payroll tax cut through 2012. A House-Senate conference committee aimed at breaking the deadlock may meet as soon as Jan. 24. Democrats want to impose a tax on income exceeding $1 million and are warning Republicans against seeking to attach policy proposals that aren’t linked to the tax cut, such as loosening rules on industrial emissions. Republicans oppose the tax on high earners to pay for the extension, while insisting that the full $100 billion package must be offset.” [Bloomberg, 1/19/12]
House Republican Plan Would Raise the Cost of Medicare Premiums. The Associated Press reported, “Raising taxes on millionaires may be a non-starter for Republicans, but they seem to have no problem hiking Medicare premiums for retirees making a lot less.” The House Republican bill would require many seniors to pay “as much as several hundred dollars a month additional for Medicare outpatient and prescription coverage.” [Associated Press, 12/13/11]
