By Jay Heflin - 05/24/10 08:54 PM EDT
"There are extenders that Republicans have supported in the past, but the idea of a net tax increase ... just makes no sense at all," he said.
The bill raises $44.4 billion by limiting the use of foreign tax credits, requiring S corporations to pay employment taxes and phasing in a tax increase on investment income called "carried interest."
Pence also questioned the bill's ability to actually create jobs since it doesn't create new law, only extending provisions that taxpayers and companies have relied on for a number of years.
"As with the last jobs bill they [Democrats] passed, this one won't create jobs either," he said, adding, "After pushing through a stimulus bill in February of '09, they said [it] would keep unemployment below 8 percent and create 3 million jobs. Now unemployment is at 9.9 percent and since their last stimulus bill passed we've lost 2.7 million jobs and added $2 trillion to the national debt."
Since the extender package was introduced last week, several interest groups that normally support the extension of expiring tax breaks have come out against the bill.
The U.S. Chamber of Commerce added its name to that list earlier today. And the National Foreign Trade Council recently notified Congress that it too opposed the bill for limiting the use of foreign tax credits.
"The revenue offsets included in the extender legislation were developed in closed door meetings without input from the affected taxpayers," it stated in a paper to lawmakers. "The U.S international tax rules are complex and increasingly out of step with the rest of the world. These new revenue proposals will make American businesses less able to compete in foreign markets, will subject them to double taxation, and as a result may have significant negative consequences on worldwide American businesses and their U.S. employees."
Democratic leaders hope to complete work on the bill by week's end. Earlier today, Senate Majority Leader Harry ReidHarry ReidBlack Caucus demands Flint funding from GOP Report: Intelligence officials probing Trump adviser's ties to Russia White House preps agencies for possible shutdown MORE (D-Nev.) said he hoped that at least some Republicans in his chamber could support the measure. At least 2 Republicans have to approve of the measure for it to pass.
"It includes a host of tax credits, tax extenders and tax incentives — all of which will help put people back to work," he said. "It's something Republicans and Democrats should come together to finish because it's something we can all be proud to support."