Freshman Dems oppose Pelosi's tax increase

By Mike Soraghan
Posted: 07/17/09 02:23 PM [ET]

Twenty-one freshman Democratic House members have signed a letter opposing their leadership's plan to raise taxes to finance a healthcare overhaul.

Rep. Jared Polis (D-Colo.) circulated the letter, saying that the income surtax on the wealthy would place an undue burden on small businesses, some of which pay taxes in the same way as an individual. The letter had 22 signers, all freshmen except for Rep. Paul Hodes (D-N.H.), who is in his second term.

"Especially in a recession, we need to make sure not to kill the goose that will lay the golden eggs of our recovery," the letter said. "We are concerned that this will discourage entrepreneurial activity."

Polis voted against the plan at the Education and Labor Committee markup Friday as a protest against the tax. But the letter itself did not threaten that its signers would vote against the bill. Instead, it asks for a different source of money to be found, and says more cost savings should be found so that less money is needed.

Freshman members, who are worried about the taxes and other controversial aspects of the bill, have had two meetings with leadership in recent days. On Friday, they went to the White House for a meeting with President Obama .

House Speaker Nancy Pelosi (D-Calif.) has backed down slightly on the tax, saying it could be lowered if more cost savings could be found in the system. But she has said there will be some sort of tax on high-earners.