And Then He Said...

Dear Mr. Rodda:

Thank you for contacting me regarding tax provisions that expire this year.

I support tax cuts that are fair, equitable, and contribute to economic growth. At the same time, I believe we must be fiscally responsible when considering any proposal that could significantly impact the Federal budget. We must not allow emergency spending and outdated subsidies to continue indefinitely. Too often, special interests have hijacked Congressional tax and spending bills for their own gain, at the expense of everyone else.

I firmly believe we should implement sound fiscal policies that will help reduce our nation's $13 trillion debt. In January, the Congressional Budget Office estimated the national debt would increase by more than $6 trillion over the next 10 years. Full extension of the 2001 and 2003 tax cuts would add an additional $3 trillion to the debt over the same period. These deficit projections threaten the stability and security of the U.S. economy.

The President has proposed permanently extending the 2001 and 2003 tax cuts for individuals making less than $200,000 a year and married couples making less than $250,000. He has also proposed permanently extending tax relief from the Alternative Minimum Tax (AMT). The AMT is increasingly hitting middle-class taxpayers because, unlike the regular income tax, the AMT rates are not indexed for inflation.

Unfortunately, political partisanship has made meaningful deficit reduction and tax reform extremely difficult to achieve. That’s why I supported the creation of the bipartisan National Commission on Fiscal Responsibility and Reform. The commission is comprised of private citizens and elected officials from across the political spectrum who are tasked with recommending solutions to the nation’s long-term fiscal challenges, including changes to tax and spending policies. I am hopeful their recommendations will jump start a real debate on how to improve the nation’s fiscal outlook.

I have long championed efforts to provide tax relief for middle-class Americans, and I will continue to support legislation that helps Florida families and small businesses through this difficult time. I am glad that you took the time to send me your thoughts. Be assured that I will keep your views in mind when these matters come before the Senate.

Sincerely,
Senator Bill Nelson