2010 Tax cut expiration - Nancy Pelosi

AGA7d

Oct 21.

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MARIA BARTIROMO: But-- on the tax issue, allowing the Bush tax cuts to expire would essentially be tax increase.

NANCY PELOSI: That wasn't a tax increase. It is-- it is-- eliminating a tax-- decrease that was there. It's-- it was controversial to begin with. It is-- a boon to those who have had it for now. But I think that you will see that happen. So-- and that is-- that affects, what? The upper two percent of our population. What we're trying to do is lower co-- taxes for the middle class, relieve burdens-- on business. So that we can be competitive in job creation. And I think you'll see some interesting things emerge-- from the conversations we're having now.

MARIA BARTIROMO: I'm just wondering if now is the appropriate time. I mean-- now, given the fact that we are still in this fragile recovery. Would you rethink-- allowing those tax cuts to expire, given that we are still pretty vulnerable, in terms of the economic recovery.

NANCY PELOSI: I don't think many people here see, nor do the American people see those tax cuts at the high end as being job-creating. They don't-- they think that that's part of the reason we're in the fiscal, the budgetary situation that we're in, because those tax cuts cost money. And-- they were-- a cost to our budget, without any commensurate-- impact on the economy for job creation. To return money-- to the treasury. So, nobody sees those as a job-creator. And-- and-- the-- the fact is, is we have to be acting in a fiscally sound way. And we can't afford those taxes. We never could. Those tax cuts.
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So democrats who opposed the Bush tax cut are likely to let it expire. That's gonna be a big negative for the consumption next year and after.