Today, U.S. Representative Rick Larsen (WA-02), released the following statement about his position on the tax cut compromise. 

“I am mad at the President.  In fact his tax cut compromise has me livid.  I am as mad as those who have called me in the last week arguing against the deal.  They say the President has caved in, has given too much to the wealthiest, and has broken his promises.  I couldn't agree more. 

“If this choice was about politics, my decision would be easy: take my anger out on the President, feel better and please the progressive base in the district.  And if this was a decision between voting for the extension of middle class tax cuts and stopping the extension of the high end cuts, that would also be an easy decision.  In fact, I have already taken that vote.

“But the choice I have to make now is about the economy.  I have to decide if there is enough in the proposed package to help grow our economy to outweigh the inclusion of tax cut extensions for the wealthiest Americans and impact this will have on the debt.

“I have concluded that the needs of the unemployed and the potential for economic growth do outweigh the costs associated with the package. That is why I will vote to support this package.

“The economy is still hurting. The hangover from the Bush recession has been long. The unemployment rate is 9.8 percent and the 2011 economy is expected to grow by inches, not by the feet needed to drop unemployment much lower.

“No legitimate economic theory can argue that extending the Bush tax cuts for the wealthiest Americans will create jobs.  I am not defending them.  Remember that the Bush presidency created no new net jobs and left us with the Great Recession. 

“On the other hand, mainstream economists estimate that the job-stimulating parts of the package will add a half to a full percentage point to economic growth in the U.S.

“The Center for American Progress estimates that those elements will create 2.2 million jobs on top of what the economy will produce in 2011. 

“The extension of unemployment benefits will help those hurting the most. Every dollar of unemployment benefit creates $1.61 in other economic activity. This is important for people in Snohomish County, which is suffering from the highest unemployment rate in my district. 

“A one-year, two percent cut in the payroll tax will create 720,000 jobs through 2012. This is important to families in Skagit County that work at small and medium sized manufacturers who, as a result, will be able to take more money home each time they get a paycheck.

“The inclusion of tax credits for families paying for college is a step forward, especially if it is combined with the $5.7 billion investment in Pell Grants included in the 2011 budget.  This will help thousands of students at Western Washington University and the community colleges in the area.

“And the extension of a successful renewable energy tax credits is vital to creating thousands of good jobs in clean energy development and continuing the momentum to an economy based more on renewable energy.

“I know many share my concerns about the impact this package has on the debt and deficits. I have consistently said the number one step to shrink the deficit and control the debt is to grow the economy. If our economy is growing, it increases our capability to shrink the deficit and control the debt.

“So, looking past my anger with the President, there is a benefit to passing this package.  It contains job generating elements that will boost the economy, reduce unemployment and build the foundation necessary to start shrinking the deficit and controlling debt growth in the long-term.

“I don't like the tax cut extensions for high end earners or the estate tax compromise in this plan.  But I will still support the bill for the greater good that it will do for our economy.  And I welcome the fight that will take place when these issues resurface in 2012.

“I believe the economy will be better and unemployment will be falling in 2012 and proponents for the rich will have to find other reasons to defend high end tax cuts.  I am sure they will.  And I will defend the middle class and small businesses in my district. 

“I was elected to look out for the middle class and help the economy grow and create jobs. This package has a lot to offer in that regard. So I am going to keep my commitment to growing the economy and the middle class in order to fight another day to get a more progressive tax structure.”

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