WASHINGTON, D.C. – Today, U.S. Senator Angus King (I-Maine) joined with his colleagues Mark Warner (D-Va.) and Joe Manchin (D-W.V.) to express concern about the cost of the tax extenders package set to come before the Senate tomorrow. Despite his support for many of the tax policies in the legislation, such as permanent enhancements to tax credits for working families and investment incentives for businesses, Senator King worries that the $680 billion package negotiated by Congressional leadership will saddle future generations with debt because it is not offset by other spending reductions or revenue increases.

“This bill should be called the ‘Tax Your Grandchildren Act,’ because we’re cutting our own taxes, but we’re borrowing the money that otherwise would be collected, and the kids are going to have to pay it back, at some point, with interest,” said Senator King. “Ultimately for me, this is an issue of ethical stewardship. […] Our generation is not keeping our infrastructure up, is not adequately providing for the common defense, and is shifting the costs from us to our children. That’s not stewardship, that is inter-generational theft.”

The Protecting Americans from Tax Hikes Act of 2015, a $680 billion agreement reached by Congressional leaders, would extend many expired tax provisions for families and businesses and carries an enormous cost without containing any offsets in spending or revenue increases. Despite Senator King’s support for many of the bill’s individual policies – such as the Earned Income Tax Credit, the Research and Development tax credit, and tax provisions that support renewable energy – he is concerned that using this year-end, unpaid tax extenders package to advance these policies is fiscally irresponsible and only shift taxes to future generations.

Senator King has long believed that Congress needs to stop making short-sighted decisions that pass along long-term costs along to future generations. Earlier this month, he joined with several of his colleges in sending a letter to leaders of the Senate Finance Committee suggesting potential ways to pay for a tax extenders package so that it could support middle class families and businesses while also ensuring that costs  are  not passed on to future generations. Those possible cost offsets included closing certain loopholes in the tax code – such as the carried interest loophole that allows many of the highest earners to pay a lower effective tax rate than middle class workers.

Despite Senator King’s concerns, he plans to vote for the combined tax extenders-omnibus package tomorrow as part of the larger budget agreement because a vote against the bill would mean a vote  to shut down the government and create economic uncertainty in Maine and around the country.  

“I don’t have policy problems with many of those tax extenders,” said Senator King. “I do have a fundamental problem that they’re not paid for, and I just don’t think it’s honest for us to go home and say, ‘we cut your taxes,’ when our grandchildren are going to have to pay those bills with interest.”

A clip of Senator King’s remarks on the Senate floor about the tax extenders deal is available HERE.

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