Daily Archives: February 17, 2012

Congressman Frank Pallone’s Statement on Payroll Tax Cut, Unemployment Insurance and Medicare Doc Fix

WASHINGTON D.C.—On Friday, February 17, 2012, Congressman Frank Pallone, Jr. spoke on the floor of the House of Representatives on the extension of the Payroll Tax Cut, Unemployment Insurance and Medicare doctor’s payment fix. The bill will continue vital programs that provide tax cuts averaging $1,000 for more that 160 millions Americans, extend unemployment insurance payments for those who are out of work through no fault of their own and ensure that doctors can continue to treat Medicare patients. While the extensions of the programs are critical, Congressman Pallone expressed his disappointment that the programs have been saved by cutting benefits to federal workers and payments to hospitals and nursing facilities.

The following is the statement Congressman Pallone delivered on the House Floor:

Thank you, M. Speaker. Today’s payroll tax conference agreement will provide $1,000 in the pockets of more than 160 million Americans and ensure that approximately 3.5 million Americans will continue to benefit from much needed unemployment insurance. We have also protected seniors’ ability to see their doctors with an SGR fix through the end of the year.

Despite these critical provisions, this is a difficult vote to take. I am greatly disappointed over how these extensions are offset. First, the unemployment extension is paid for on the backs of middle class Federal workers. These hardworking men and women continue to be targeted in this Congress – but yet they are not the reason for our nation’s deficits. Meanwhile, my Republican colleagues refuse to require the wealthiest few to pay their fair share.

Secondly, the SGR fix is being paid for with critical health care dollars. In fact, the bill slashes one of the most important investments this country has ever made in preventive health. That is extremely short-sighted. We cannot continue down that path or we will never address the real cost concerns of our health care system.

Sadly, the bill also manages to cut from one provider – hospitals and nursing homes – to help pay for another – physicians. We cannot rob Peter to pay Paul and our health care system cannot sustain further provider cuts. Meanwhile, there is still no permanent solution to an ongoing SGR problem that cannot continue to be kicked down the road again.

I will vote in favor of this bill, but I do so with grave reservations. Thank you.

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Filed under Congressman Frank Pallone, House Floor statement, Medicare, payroll tax, tax cuts, unemployment benefits

As A Matter Of Fact…Reality Check: Income Taxes Don’t Impede Economic Growth

by Jon Whiten | Published in NJPP Blog: As a Matter of Fact …

As Gov. Chris Christie prepares to unveil the specifics of his proposed 10-percent income tax cut at next week’s budget address, he’s working under a key tenet of conservative economics: that high tax rates harm economic growth.

There’s just one problem, according to a new national report by the Institute on Taxation and Economic Policy (ITEP): that tenet doesn’t match up with reality.

These claims are based largely on misleading analyses generated by Arthur Laffer, long-time spokesman of a supply-side economic theory that President George H. W. Bush once called “voodoo economics” because of its bizarre insistence that tax cuts very often lead to higher revenues. Recently, Laffer’s consulting firm has been very successful (with the help of the American Legislative Exchange Council, Americans for Prosperity, and the Wall Street Journal’s editorial page) in spreading the talking point that the nine states without personal income taxes have economies that far outperform those in the nine states with the highest top tax rates.

In reality, however, residents of “high rate” income tax states are actually experiencing economic conditions at least as good, if not better, than those living in states lacking a personal income tax.

The report pits the nine “high rate” states identified by Laffer (a list that includes New Jersey) against the nine states that don’t have a broad-based personal income tax in three categories: growth per capita, median family income and unemployment rate.

From 2001 to 2010, the “high rate” states have seen stronger growth per capita and less erosion of median family income, while the average unemployment rate has been the same as the un-taxed states.

The bottom line, according to ITEP?

“There is no reason for states to expect that reducing or repealing their income taxes will improve the performance of their economies.”

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Filed under As a Matter of Fact, blog, Gov. Chris Christie, income taxes, Institute on Taxation and Economic Policy (ITEP), New Jersey Policy Perspective