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Contact:
Joseph Rendeiro
(202) 776-1566
jrendeiro@nclr.org
Washington, D.C.—Yesterday, the Senate voted down an extension of the federal payroll tax cut, which would have provided much-needed relief to workers. The legislation failed due to Congress’s inability to compromise on how to pay for the extension. NCLR (National Council of La Raza) is dismayed that the gridlock in Congress prevented the passage of another piece of legislation that is essential to sustaining this country’s fragile economic growth.
“Instead of acting responsibly to strengthen our economy and give us a shot in the arm, Congress is doing the exact opposite, effectively choking us by stunting much-needed economic activity,” said Eric Rodriguez, Vice President of the Office of Research, Advocacy, and Legislation at NCLR. “Extending the payroll tax cut would free up money in the pockets of shoppers and allow them to spend more, which would ultimately enable employers to hire more people. Closing such a vital window of opportunity is incredibly dangerous and could put our already fragile economy at risk of another recession.”
“Other types of tax credits could also have been effective, but the payroll tax cut is the option that went furthest in this debate,” added Rodriguez. “NCLR believes that the payroll tax cut should only be used temporarily, that other options should be pursued, and that the Social Security Trust Fund must be protected.”
The news of Congress’s failure to extend the payroll tax cut coincides with the release of NCLR’s latest Monthly Latino Employment Report. The report looks at how the unemployment crisis has affected Hispanic young adults and provides recommendations for a comprehensive employment policy agenda for America’s workforce.
For more information about unemployment among Latinos, please read this month’s report, Young Latinos in the Workforce.
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