New Dem Leadership Members’ Statement on PATH Act
Washington, DC – Today, the House passed the Protecting Americans from Tax Hikes (PATH) Act on a vote of 318-109. Leaders of the New Democrat Coalition released the following statement after voting no on the bill:
“As New Democrats, we support efforts to make America more competitive and grow our economy through important tax provisions such as the Research and Development Tax Credit, increased small business expensing, and the New Market Tax Credit. These and many other measures in the PATH Act would bring long overdue certainty to everyday Americans, small- and medium-sized businesses, and those who invest in the latest innovative technologies.
In addition, there are many other important provisions that provide for state and local sales tax deductions, credits for education expenses, extensions of credits for investing in wind and solar energy that would help reduce pollution, a reducation in capital gains taxes for angel investors, an expanded Earned Income Tax Credit, improvements to the Child Tax Credit, and parity for mass transit and parking benefits. Extending or making permanent such provisions has the potential to strengthen our economy by improving predictability and stability for millions of working and middle-class Americans, as well as businesses across the country.
However, the impact this package will have on the tax base and U.S. deficit in the long run will prove extremely harmful. Although it includes important policy priorities, the PATH Act is unpaid-for legislation that will add hundreds of billions of dollars to the federal deficit. Budget experts estimate it will cost at least $780 billion including interest over the ten year budget window and $2 trillion over the next two decades. If we continue to erode the tax base without serious offsets, we run the risk of harming taxpayers, reducing incentives for investing in the U.S., and placing the economic future of our country in jeopardy.
This package, while commendable for many of its policy goals, will fuel unsustainable deficit growth. Instead, we need comprehensive tax reform that broadens the tax base while lowering rates on businesses and families. The PATH Act narrows that base, and makes no effort to remove wasteful provisions such as those subsidizing NASCAR and racehorses. In the future, we look forward to working on bipartisan, deficit-neutral tax reform that promotes a better business climate supports the middle class.”
New Dem Chairman Ron Kind; New Dem Vice Chairs Jim Himes, Susan Davis and Jared Polis; and New Dem Whip John Carney signed on to this statement.
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