WASHINGTON, DC – Congressman Jim Himes (CT-4) released the following statement after voting against a fiscally irresponsible permanent extension of the research and development tax credit. The bill provided no offset for the cost of this extension, which the nonpartisan Congressional Budget Office (CBO) estimates would add $156 billion to the deficit over the next 10 years. Meanwhile, the House Majority refuses to schedule votes on extending unemployment insurance without budgetary offsets or on comprehensive immigration reform, which would cover the full cost of permanently extending the R&D tax credit.
“I strongly support the research and development tax credit, which spurs innovation, catalyzes research and development, and creates jobs. I also support making this credit permanent so that businesses can have the certainty they need year-to-year to make these investments. But we cannot continue to blow holes in the federal budget with large, permanent, unpaid-for tax cuts. I have spent years noting that the unpaid-for Bush tax cuts helped drive huge deficits. Any definition of prudence and care demands that we pay for the permanent benefits we disperse. We need economic investment now, and we need to pass comprehensive tax reform that simplifies the tax code while raising revenue for short-term investment and long-term fiscal health to pay for it.”