Earlier today, Congresswoman Nancy Pelosi was re-elected to lead the Democratic caucus of the House of Representatives, as Minority Leader in the next Congress. (Other Californians that won leadership posts was Xavier Becerra, as Vice-Chair of the Democratic Caucus; and Kevin McCarthy, as Majority Whip of the Republican Caucus.)
The big debate this fall is the potential extension of the Bush-era tax cuts… and of particular controversy, the tax cuts for income above $250,000/year.
The position of still-Speaker Nancy Pelosi is clear: “The position that we have, and which is the position the president has put forth, is that everybody should get a tax cut in our country,” the outgoing Speaker told NPR. “The problem comes,” she said, “when an additional tax cut to the wealthy is two percent that will heap $700 billion in debt” upon the country’s children… Pelosi said that the cuts, instituted by the GOP in 2001 and 2003, have not been effective.”Those tax cuts have been effect for a very long time, they did not create jobs,” she said.
Even California’s moderate Democratic Senator Dianne Feinstein agrees. Earlier today, she said: “I don’t see the logic in delaying tax cuts for middle class Americans as part of an effort to make sure that the rich get richer. I would caution my Republican colleagues against holding middle-class tax cuts hostage for the benefit of the two percent of Americans who have the privilege to be wealthy.”
Tax cuts targeted to the wealthy (who might pocket the money or invest overseas) make little economic sense, especially if they need to be paid for by cutting key programs like Medicaid and Medicare that are central for our health care system, and our economy (since those health care dollars can’t be outsourced, and go directly back into local economies).
We hope the rest of the California delegation follows this lead.