Campaign 2010

Oct 06, 2006

Emanuel Statement on Disappointing Jobs Numbers, Stagnant Economy

DCCC Press

Oct 6, 2006

Emanuel Statement on Disappointing Jobs Numbers, Stagnant Economy

Even Though They Constantly Tout Their Economic Achievements, President Bush and the Republican Congress Have Watched Over a Wageless Recovery That has Left Middle Class Families Behind

“Under George Bush and his Rubber Stamp Republican Congress we’ve seen trillions in new debt, tax hikes for middle class families and now more disappointing jobs numbers. It’s time for new leadership and a new direction in Congress,” said Congressman Rahm Emanuel, Chairman of the Democratic Congressional Campaign Committee. “Last week the Republican Congress left town on a wave of unprecedented tax increases for middle class families and today, with the lackluster jobs report, those families get even more disappointing news. President Bush and the Republican Congress have failed on economic security and it’s time for a new direction.”

Last Friday’s Middle Class Disappointment

Republicans raise taxes on 3.6 million Americans by refusing to extend the college tuition tax deduction. The average cost of a college education has soared by 44 percent during the Bush Administration (College Board, 10/05), yet the Republican-controlled Congress chose not to extend the popular college tuition tax deduction in this year’s tax reconciliation bill and they continue to refuse extending this tax cut as part of the larger extenders package.

Republicans raise taxes on 3.3 million American teachers by refusing to extend educator expenses tax deduction. Since 2002, teachers have been able to deduct up to $250 a year for money that they spend out of their own pockets to buy supplies for their classrooms. More than 3 million teachers nationwide have taken advantage of this deduction each year. The Republican Congress removed a two-year extension of this deduction from the tax reconciliation bill in May and continues to refuse passing an extension along with other vital tax extensions.

Republicans raise taxes on school districts in every state by refusing to extend bond program to fund school renovations. The authority for school districts to issue Qualified Zone Academy Bonds (QZAB) also expired last year. School districts use these bonds as an innovative way to fund school renovation or repairs at a much lower cost. Investors receive a federal tax credit in lieu of an interest payment, and over the life of the bond, the district can save 50 percent.

Republicans raise taxes on 12.3 million Americans by refusing to extend the state and local sales tax deduction. The following states had deductible sales taxes before the provision expired at the end of 2005: Alaska, Florida, Nevada, Washington, South Dakota, Tennessee, Texas, and Wyoming. Those Americans living in these states without income taxes will see their taxes increase because of the Republican refusal to extend the deduction for their state’s sales taxes.

Republicans raise taxes on thousands of businesses by refusing to extend important tax credits that promote job creation and innovation. Because Republicans refuse to extend the Work Opportunity Tax Credit (WOTC) and the Welfare-to-Work (WtW) tax credits, 20,000 businesses will lose their tax incentives for hiring individuals from targeted groups such as veterans and families trying to leave the welfare rolls. Republicans are also blocking the extension of the research and development (R&D) tax credit that helps 16,000 businesses in America innovate and stay competitive. Last week, a coalition of businesses wrote a letter to Congress warning: “The lapse of the credit and accompanying uncertainty have increased the costs of U.S,-based R&D…Congress should put an end to the tax on American innovation and act swiftly to restore and strengthen the federal R&D tax credit.”