House Push for $11.5B Tax Increase Stalls, As Does GDP

By July 30, 2010Economy, Taxation, Trade

The House had a full debate on the floor Thursday on H.R. 5893, the Investing in American Jobs and Closing Tax Loopholes Act. By “Closing Tax Loopholes,” supporters mean raising taxes on U.S. businesses with global operations, and the National Association of Manufacturers sent a Key Vote letter opposing the bill.

The final vote on the bill was postponed, postponed, and as the floor session continued into Friday morning, postponed. It was never held, and so far there’s no sign of a vote today, and the House is scheduled to leave soon for its August recess.

It may be that a majority of House members recognized that raising taxes on manufacturers and other businesses — jobs creators — is a terrible idea. Today’s Commerce Department announcement that second quarter 2010 GDP growth was just 2.4 percent, indicating a slowing recovery, should give Representatives further reason for restraint. (BLS news release, Los Angles Times, Economy slows sharply in second quarter.”)

The floor debate on H.R. 5893 started on page H6355 of The Congressional Record. Rep. Dave Camp (R-MI), the ranking member of the House Ways & Means Committee, cited the NAM’s letter on page H6367.

UPDATE (10:45 a.m.): Rep. Camp just said the bill did not come to a vote because the Republicans had a motion to recommit that would have passed. The House is now debating H.R. 5982, which appears to be a bill that also has tax increases on businesses with overseas operations. Rep. Scott Murphy (D-NY) calls it the “Small Business Tax Relief Act,” says it would repeal the additional IRS 1099 reporting required under the new health care law. Bill was just introduced today.

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