Washington, D.C. - Today, U.S. Rep. Rick Larsen (WA-02) voted in favor of a Democratic alternative to the Republican tax cut bill (H.R. 4297).

“I strongly support middle class tax relief.  The question isn’t whether or not Congress should extend tax relief,” Larsen said. “The question is whether we pay for those tax cuts as we go, or if we write yet another IOU to our children and increase the deficit.”

“Our incoming chairman of the Federal Reserve told the Senate that it is unusual for any tax cut to completely offset its own revenue loss,” Larsen pointed out.

H.R. 4297 extends a variety of tax cuts, including the capital gains and dividends tax breaks for two years and increases the deficit by $56 billion over five years. The Democratic alternative that Larsen supported strikes the extension of the capital gains and dividend tax cuts, which predominantly favor the wealthy, and pays for the measure by reducing the size of tax cuts for those with incomes over $1 million for joint returns.

Important to Washington state, the bill would also extend by one year the tax deduction of state and local retail sales taxes.

“The Democratic tax cut bill makes fiscally responsible tax cuts that protect the middle class without piling on more debt,” Larsen said.

The Democratic substitute bill would exempt every family making less than $200,000 from the Alternative Minimum Tax (AMT). It also includes $42 billion in tax cuts over five years targeted to spur economic growth such as the research and development tax credit and small business expensing.