Published: 02-11-09
Legislation Also Raises the Debt Limit to A Record $12.14 Trillion
WASHINGTONU.S. Sen. John Cornyn a member of the Senate Finance Committee today made the following statement regarding his vote against the Democrats $1.2 trillion stimulus proposal:
I support President Obamas call for swift action to revive the nations economy and put Americans back to work. Unfortunately this proposal fails on both accounts and instead relies on bloated Washington programs digging our country deeper and deeper into debt and passing the IOUs to our children and grandchildren. This is unacceptable.
I am disappointed that what could have been a bipartisan success has resulted in a bill narrowly passed by the Senate with the support of only three Republicans. Overspending is what landed our nation in the economic turmoil we find ourselves in today and the partisan spending bill passed by Senate Democrats only exacerbates this irresponsible behaviorincreasing our nations debt limit by nearly two trillion dollars to $12.14 trillion.
Nonetheless I am committed to finding real bipartisan solutions to the economic crisis. Solutions that will have an immediate stimulative effect. Solutions that will first fix the housing crisis. Solutions that will create long-term private sector jobs and provide broad-based tax relief. Hard-working Texans deserve to keep more of their own money to spend save and invest how they see fit. I will work to ensure that this balanced solution has proper accountability and transparency measures so every taxpayer is aware of how their money is being spent and whether or not it is helping solve the problem."
Background on amendments Sen. Cornyn offered to improve the economic plan that were defeated:
Lowering the 10 percent income tax bracket:
• As written the current legislation would create a new refundable tax credit called Make America Work" that would be unavailable to individuals who earn $70000 or married couples who earn $140000 jointly.
• Sen. Cornyn believes that tax relief should be provided to all taxpayers who pay income taxes.
• Sen. Cornyn proposes lowering the 10 percent tax bracket to 5 percent for 2009 and 2010.
Reducing the Capital Gains & Dividends Tax:
• Sen. Cornyn proposes expanding the current zero tax bracket for long-term capital gains to include individuals who make up to $75000 and couples who make up to $150000.
• This would provide relief to middle-income taxpayers such as working parents who want to save and build a nest egg for retirement or sending their children to college.
• Sen. Cornyn believes that by reducing the capital gains tax we can help revitalize the sagging economy.
• Lower taxes on capital help grow investment and capital stock which will increase economic growth grow jobs and personal income.
