Bush Tax Rates/Unemployment Insurance Reauthorization Position and More

The following is in response to my letter dated December 2, 2010:

Dear Mr. MacDonald,

Thank you for passing along your concerns regarding unemployment insurance benefits and expiring tax policy. As always, I value your input on this and other issues, and strive to keep you updated on the important issues facing us today.

I understand your concerns about providing additional unemployment benefits to those hardest hit by the recent economic downturn. Like you, I recognize the importance of this assistance for individuals in Massachusetts and across the country who have lost their jobs and are hurting in this difficult time. As you may know, over the past few months, Congress has repeatedly extended unemployment benefits. In fact, since January 2009, Congress has extended these benefits seven times. Since joining the Senate in February, I’ve supported these extensions. My position, however, has been that if we are going to extend unemployment benefits, we should pay for that additional spending by cutting wasteful spending elsewhere rather than increasing the deficit.

Most recently, on November 30, 2010, when the current extension expired, I introduced a bill to provide funding for another round of unemployment benefits, the Emergency Unemployment Benefits Extension Act of 2010 (S. 3990). Like my proposed solution to extend unemployment this past summer, this bill would pay for the much needed unemployment benefits by redirecting other unspent federal dollars, rather than borrowing more and adding to our astronomical, $13 trillion debt. In a budget reaching into the trillions, there are billions of dollars in old earmarks and other wasteful spending that remain in accounts—sometimes for years—that may never be spent for their originally stated purpose. I believe unemployment is a higher priority, and that we should use those funds to pay for UI rather than putting more spending on the taxpayer’s credit card and burdening our children and grandchildren with an unsustainable level of debt.

I also understand your concerns about tax policy and deficits. At a time when we have 9.8% unemployment, I think it is wrong to allow the existing tax rates to go up. On both sides of the aisle, there is a recognition that our annual deficits are primarily the result of too much federal spending, rather than too little taxation. At this time, it is crucial that we allow Americans to keep more of their own hard-earned money, which gives them the freedom to spend or save it as they choose, rather than surrendering it to the government. Without action this Congress, taxes would go up on everyone—including the small business owners that are extremely important job creators. If small business owners are hit with significantly higher taxes, they will inevitably lay off workers, reduce workers’ hours, or cut benefits. There is bi-partisan agreement among economists that avoiding a major tax increase is important to make sure that we do not suffer a “double-dip” recession, which would further depress government tax revenues.

That said, Congress must get serious about working together to get our fiscal house in order for the long haul. We need a focused step-by-step approach that includes bi-partisan tax reforms to simplify the tax code. Like many, I believe that our tax code is too complicated and littered with loopholes and giveaways for special interests. In fact, experts across the spectrum agree that we could lower tax rates and also raise the same or more revenue than we do today if we simplified the tax code, broadened the tax base, and created a more level playing field. I am hopeful that in the next Congress, we can work together on these reforms, along with a plan to significantly reduce federal spending over the longer-term in order to truly address our nation’s fiscal imbalances.

Currently, Congress is debating legislation that would extend current tax policy, as well as continue unemployment benefits at their current levels through the end of 2011. On December 15, 2010, the Senate approved this compromise on a bipartisan basis. While I wish the new spending was offset with other cuts, I support this legislation because it will help get our economy back on track by allowing people to keep more of the money they earn. It is good for American families, for small businesses, and for individuals in Massachusetts and across the country. Please be assured that I will continue working with the White House and my Senate colleagues on both sides of the aisle to cut federal spending, reform our tax code and lower our national debt.

Again, thank you for passing along your concerns. If I can ever be of assistance to you in the future, please do not hesitate to contact me or visit my website at www.scottbrown.senate.gov.

Sincerely,

Scott P. Brown
United States Senator