WASHINGTON, D.C. – Congressman Mike Thompson (CA-1) on Thursday voted against H.R. 9, the so-called “Small Business Tax Cut Act.”
The legislation, introduced by House Majority Leader Eric Cantor (VA-7) is unpaid for and would add $46 billion to the deficit, Thompson said.
“This bill will do nothing to create jobs and adds $46 billion to the deficit,” said Thompson. “Instead of spending $46 billion of borrowed money on tax breaks we can’t afford, we should help small businesses by investing in job creation so folks can afford the goods and services our small businesses provide.”
In addition to adding $46 billion to the deficit, the legislation does not require the creation of jobs.
According to the Joint Committee on Taxation, the economic impact of the bill “is so small as to be incalculable.”
Former Reagan Economic Advisor Bruce Bartlett has said this legislation “will do nothing whatsoever to increase employment. It is nothing more than an election year give-away to a favored Republican constituency and should not be taken seriously.”
H.R. 9 passed the House on Thursday by a vote of 235-173. It now goes to the Senate for consideration.
“Just yesterday in the Ways and Means Committee the House Majority voted to cut $68 billion in benefits to the elderly, disabled and poor in the name of deficit reduction,” continued Thompson. “Now today they’re turning around and adding $46 billion to the deficit. This is fiscally irresponsible, and it is wrong.”
Thompson represents California’s 1st Congressional District, which includes the Counties of Del Norte, Humboldt, Lake, Mendocino, Sonoma, Napa and Yolo. He is a senior member of the House Ways and Means Committee and the House Permanent Select Committee on Intelligence. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and sits on the bipartisan, bicameral Congressional Wine Caucus.