South Dakota Democratic Party Chairman Ben Nesselhuf released the following statement after Congresswoman Kristi Noem and House Republicans defeated the payroll tax cut extension that passed the Senate with overwhelming bipartisan support:
“Congresswoman Kristi Noem and House Republicans are playing politics with South Dakota pocket books. With Noem’s vote against the bipartisan payroll tax cut compromise that passed overwhelmingly in the Senate, it appears that the only tax breaks Noem will pass without condition are tax breaks for millionaires. It’s time Noem and House Republicans quit holding everyday South Dakotans hostage for ideological gain.”
The Senate passed an bipartisan payroll tax cut extension on Saturday with 89 votes in support. Senator John Thune voted in support of the bipartisan Senate compromise. Promises by House leadership to revisit this overwhelmingly bipartisan payroll tax cut compromise risks forcing a $1000 tax hike on 500,000 South Dakotans, sacrificing up to one million jobs nationwide, and triggering another economic recession, according to Mark Zandi, chief economist at Moody’s Analytics and former advisor to John McCain’s 2008 campaign for President.
For more information, please contact Ben Nesselhuf at 605-271-5405 or ben@sddp.org
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Background
Bipartisan Senate Payroll Tax Cut Extension
Senate passes bipartisan payroll tax cut extension, 89-10. [S. Amdt 1465 to HR 3630, 12.17.11]
House defeats Senate Payroll Tax Cut Extension
“On motion that the house disagree to the Senate amendments, and request a conference.” Agreed to 229 to 193 with Noem’s support. [Roll no. 946, 12.20.11]
Tax Increase for 500,000 South Dakota families
In South Dakota, failing to pass the payroll tax cut would mean 500,000 families would face an average of $1,000 tax increase. In 2010, a two percent point payroll tax cut was signed into law, providing an estimated $108.6 billion in tax relief to roughly 159 million workers. If Congress fails to extend this tax break, it will cost the typical American working family $1,000 per year. [Office of Tax Policy – Treasury Department, 11/30/11]
Trigger Another Recession
According to Mark Zandi, chief economist at Moody’s Analytics and former advisor to John McCain’s 2008 campaign for President, failing to extend a payroll tax break into 2012 could trigger another recession. [Moody’s Analytics, 9/9/11; Reuters,10/6/11]
Cost Nearly 1 Million Jobs
According to the Economic Policy Institute, “The loss of the payroll tax holiday, a tax cut that reduces Social Security payroll tax for all workers, would lead to a reduction in GDP of $128 billion and roughly 972,000 fewer jobs in 2012.” [Economic Policy Institute, 8/5/11]