Freshman Dems Rebel Against Pelosi Tax Plan

Twenty-one freshman Democratic House members have signed a letter House Speaker Nancy Pelosi’s plan to raise taxes to finance a healthcare overhaul.

The group is led by Rep. Jared Polis, D-Colo., who 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, according to The Hill.

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, according to a copy obtained by The Hill. “We are concerned that this will discourage entrepreneurial activity.”

The letter did not threaten that its signers would vote against the bill. But it demands that the House look for a different source of money. It says more cost savings should be found so that less money is needed.

Pelosi has already 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.