[Congressional Record Volume 156, Number 166 (Wednesday, December 15, 2010)] [Senate] [Page S10237] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] TAX CUTS AND UNEMPLOYMENT BENEFITS Mr. NELSON of Florida. Mr. President, we are soon going to vote on the bipartisan compromise on extending the expiring tax cuts and unemployment benefits. Although, as I described yesterday, it is a bitter pill to swallow because of the extended funding that will cause the deficit to rise, I doubt there is anybody in this Chamber who wants the alternative; that is, inaction or a political stalemate which is certainly not an option. Job growth remains anemic. For many of our constituents who are struggling to make ends meet in the midst of this jobless economic recovery, unemployment benefits have already expired. Without action, on January 1, those fortunate enough to have a job would see a significant drop in their paychecks as the middle-class tax cuts enacted 10 years ago also expire, with the effect that the taxes would be going up all across the income spectrum. So out of this stark reality facing us on January 1, this is when people of good will have come together--people of good will who have different opinions, and who, as I said, have to swallow hard on some of the parts of this package. It is my intention, as we vote in just a few hours, to vote for this package. It does provide relief that is critical for middle-class families. For example, for a family making $63,000 a year, if we didn't pass this bill, and the existing tax law expired, then that income level, a family earning $63,000--their taxes would go up by $2,000. This bill prevents that. These middle-class tax cuts are extended in this legislation for a period of 2 years, and that includes the 10-percent income tax bracket, the $1,000 child tax credit, an increase in the standard deduction for married couples, and an expansion of the 15- percent tax bracket for married couples. The bill rewards work by continuing provisions in the 2009 Recovery Act that expanded the earned-income tax credit and the refundable tax credit. The bill also continues the tax credit that allows taxpayers to claim a $2,500 tax credit for all 4 years of their higher education. In my State of Florida, 600,000 Florida taxpayers benefited from that tax credit. It also has significant consequences for everybody across the board. For example, without an extension of the unemployment benefits through this coming year, 7 million unemployed workers would lose one of the last lifelines available to them. This bill is going to breathe life into the private sector through a payroll tax reduction of 2 percent for 1 year. What that does is put more money into people's pockets, which they will then go out and spend. That spending will turn over in the economy and that will produce jobs. The bill includes provisions of particular importance to my State. Our State is one of six that does not have an income tax. As you know, when you calculate your Federal income tax, you can deduct your State income tax. For those six States, we finally got a provision in 6 years ago--whereas we don't have an income tax in Florida, we have a State sales tax. We put that in, and that is a deductible item, comparable to other States that have an income tax--to deduct that in the calculation of the Federal income tax. I am pleased that this agreement extends that deduction. The bill also has an extension of section 1603, which is the Treasury grant program for renewable energy projects, to convert tax credits for the production of renewable electricity into an upfront investment tax credit, and to receive a grant in lieu of the investment tax credit. Certainly, as we are trying to move to renewable energy, that keeps that alive. It is badly needed. But what it illustrates is that there were some 20 to 25 Senators out here on the floor yesterday who were talking about our commitment to roll up our sleeves going into the next year, to try to do something about the reduction of spending and, therefore, reduction of the deficit, at the same time reforming a Tax Code that has gotten so complicated and so fraught with special interest provisions that it is crying out for reform. One way or another, we are going to have to make it happen. I believe that what we are going to vote on this afternoon is the first step of a badly needed effort toward restoring trust and confidence and starting to get our economy moving again. I yield the floor. The ACTING PRESIDENT pro tempore. The Senator from Oklahoma is recognized. ____________________