Politics
Florida's Congressional Democrats Duck Tax Question
Rep. Kosmas breaks ranks in support of extending cuts; 7 members have nothing to say
Around the State
They're big spenders and quiet taxers.
More than $115 billion in new and restored taxes -- called the biggest tax hikes in U.S. history -- will kick in Jan. 1, unless the Democratic Congress acts to stop them.
But, so far, only one Florida Democratic representative, Suzanne Kosmas, has bucked her party by committing to extend the 2001 and 2003 tax reductions.
A Sunshine State News survey of Florida's 10-member Democratic congressional delegation last week found most members lying low.
Two lawmakers -- Reps. Alan Grayson, D-Orlando, and Debbie Wasserman Schultz, D-Pembroke Pines -- said through their spokespersons that they want the Bush-era tax cuts to expire at year's end.
Wasserman Schultz's spokesman Jonathan Beeton said, "She does not believe that we should continue to increase the deficit by extending tax cuts to the wealthiest 1 to 2 percent of Americans."
Similarly, Grayson spokesman Todd Jurkowski said his boss opposes "tax cuts for the rich."
But inquiries to Florida's remaining seven Democratic congressmen, including U.S. Senate hopeful Kendrick Meek, D-Miami, went unanswered.
Republicans, meantime, are turning up the heat on Democrats from coast to coast, pointing out that the majority party has the power to derail the coming tax train.
Kosmas, D-New Smyrna Beach, evidently got the message. The first-term congresswoman, in a letter to House Speaker Nancy Pelosi, stated:
“[W]e must extend these tax rates in order to give our fragile economy the time it needs to recover from the ongoing crisis. Continuing this tax relief is a common-sense measure that will ease the burden for middle-class families and provide tax certainty for small-business owners looking to invest and create jobs.
"Extending the 2001 and 2003 tax rates will provide continuing stability to the millions of families who have benefited from reduced taxes."
Kosmas continued:
"In addition, the 2001/2003 tax cuts lowered rates not only for ordinary income, but also for dividends and capital gains, which create incentives that are crucial to private-sector investment and give our small-business owners the opportunities and financial security they deserve.
"If we allow these tax rates to expire, we run the serious risk of weakening job growth and economic expansion at a time when our economy has begun to recover."
The Obama administration and Democratic leaders on Capitol Hill argue that more tax revenues are needed to shrink the budget deficit; but Kosmas, along with the Republican minority in Congress, counters that the private sector needs a break.
"The best way to reduce our deficit is to grow our economy," Kosmas wrote. "Allowing the 2001 and 2003 tax rates to expire before our economy fully recovers may reduce our ability to support our small businesses, stimulate the economy and bring our deficit under control in the future."
Contrary to Democratic claims that the Bush tax cuts benefited only the wealthy, Republicans respond that the expiration of those reductions will hurt middle-class Americans and that even the tax rates for the poorest Americans would rise.
Here are the current and future rates that will be effective Jan. 1 (income ranges are for taxpayers who are married and filing jointly):
Even for those who stay in the 15 percent bracket, taxes will increase because of higher capital gains rates (moving up to 15 to 20 percent), higher top dividend rates (15 to 39.6 percent) and the return of the estate ("death") tax, which goes from 0 to 55 percent.
In addition, higher taxes on insurers, drug makers and other health-care businesses will be passed on to everyone in the form of higher medical costs.
More than $115 billion in new and restored taxes -- called the biggest tax hikes in U.S. history -- will kick in Jan. 1, unless the Democratic Congress acts to stop them.
But, so far, only one Florida Democratic representative, Suzanne Kosmas, has bucked her party by committing to extend the 2001 and 2003 tax reductions.
A Sunshine State News survey of Florida's 10-member Democratic congressional delegation last week found most members lying low.
Two lawmakers -- Reps. Alan Grayson, D-Orlando, and Debbie Wasserman Schultz, D-Pembroke Pines -- said through their spokespersons that they want the Bush-era tax cuts to expire at year's end.
Wasserman Schultz's spokesman Jonathan Beeton said, "She does not believe that we should continue to increase the deficit by extending tax cuts to the wealthiest 1 to 2 percent of Americans."
Similarly, Grayson spokesman Todd Jurkowski said his boss opposes "tax cuts for the rich."
But inquiries to Florida's remaining seven Democratic congressmen, including U.S. Senate hopeful Kendrick Meek, D-Miami, went unanswered.
Republicans, meantime, are turning up the heat on Democrats from coast to coast, pointing out that the majority party has the power to derail the coming tax train.
Kosmas, D-New Smyrna Beach, evidently got the message. The first-term congresswoman, in a letter to House Speaker Nancy Pelosi, stated:
“[W]e must extend these tax rates in order to give our fragile economy the time it needs to recover from the ongoing crisis. Continuing this tax relief is a common-sense measure that will ease the burden for middle-class families and provide tax certainty for small-business owners looking to invest and create jobs.
"Extending the 2001 and 2003 tax rates will provide continuing stability to the millions of families who have benefited from reduced taxes."
Kosmas continued:
"In addition, the 2001/2003 tax cuts lowered rates not only for ordinary income, but also for dividends and capital gains, which create incentives that are crucial to private-sector investment and give our small-business owners the opportunities and financial security they deserve.
"If we allow these tax rates to expire, we run the serious risk of weakening job growth and economic expansion at a time when our economy has begun to recover."
The Obama administration and Democratic leaders on Capitol Hill argue that more tax revenues are needed to shrink the budget deficit; but Kosmas, along with the Republican minority in Congress, counters that the private sector needs a break.
"The best way to reduce our deficit is to grow our economy," Kosmas wrote. "Allowing the 2001 and 2003 tax rates to expire before our economy fully recovers may reduce our ability to support our small businesses, stimulate the economy and bring our deficit under control in the future."
Contrary to Democratic claims that the Bush tax cuts benefited only the wealthy, Republicans respond that the expiration of those reductions will hurt middle-class Americans and that even the tax rates for the poorest Americans would rise.
Here are the current and future rates that will be effective Jan. 1 (income ranges are for taxpayers who are married and filing jointly):
Even for those who stay in the 15 percent bracket, taxes will increase because of higher capital gains rates (moving up to 15 to 20 percent), higher top dividend rates (15 to 39.6 percent) and the return of the estate ("death") tax, which goes from 0 to 55 percent.
In addition, higher taxes on insurers, drug makers and other health-care businesses will be passed on to everyone in the form of higher medical costs.



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