Pelosi wants vote on permanent extension of middle class tax rates

House Minority Leader Nancy Pelosi wants Speaker John Boehner to bring a vote on a permanent extension of the tax rates for the middle class as early as next week.

In a letter being released Wednesday, the California Democrat said the revenues for raising tax rates for those earning more than $1 million a year could be used to help pay down the deficit.

“It is unacceptable to hold tax cuts for the middle class hostage to extending multi-billion dollar tax breaks for millionaires, Big Oil, special interests, and corporations that ship jobs overseas,” Pelosi wrote to Boehner.

Boehner spokesman Michael Steel issued this one-sentence response: "Speaker Boehner has already announced that the House will act to stop the tax hike on every American taxpayer."

Pelosi’s rhetoric echoes that of Senate Majority Leader Harry Reid, who said Tuesday that the impending fight over tax cuts could be resolved “tomorrow” if Republicans would extend tax rates for everyone but the wealthy.

But Pelosi and the White House differ on their numbers – President Barack Obama has maintained that the Bush tax rates should end for those making more than $250,000. A Democratic source explained Pelosi’s move: if Republicans didn’t agree to her proposal, it would make it “clear they are standing with millionaires and endangering the economic security of the middle class.”

Read the full text of Pelosi’s letter, after the jump.

May 23, 2012

The Honorable John Boehner

Speaker of the House of Representatives

United States Capitol

H-232, The Capitol

Washington, DC 20515



Dear Speaker Boehner:



Without further delay, the Majority Leadership should schedule a vote on extension of the middle-income tax cuts, as early as next week, to increase certainty for millions of American taxpayers and for the economy. We should not delay passing this legislation that will help afford all Americans the opportunity to reach their goals and realize the promise of the American Dream.



We must ask the very wealthiest Americans to pay their fair share. Democrats believe that tax cuts for those earning over a million dollars a year should expire and that we should use the resulting revenues to pay down the deficit.



By ensuring that the middle-income tax cuts do not expire, we will put money into the pockets of American consumers, saving the typical middle-income family thousands of dollars per year. Extension of this middle-income tax cut will inject demand into our markets and strengthen small businesses. By investing in both the short-term growth of our economy and the long-term prosperity of our nation, it will empower the entrepreneurial spirit of the American people. We cannot afford another manufactured crisis that unnecessarily threatens the full faith and credit of the United States and jeopardizes our economic recovery.



Extending middle-income tax cuts that benefit nearly all Americans is not controversial. Congressional leaders across the ideological spectrum agree that we should not be raising taxes on middle-income people at this delicate time in our recovery from the worst recession in 70 years. It is unacceptable to hold tax cuts for the middle class hostage to extending multi-billion dollar tax breaks for millionaires, Big Oil, special interests, and corporations that ship jobs overseas.



I urge you to allow the House to vote on the permanent extension of middle-income tax cuts now and for Democrats and Republicans to work together to strengthen our middle class, create jobs, and grow our economy in a balanced and fiscally responsible way.



Thank you for your consideration.



best regards,





NANCY PELOSI

Democratic Leader