Tax Increase Prevention Act of 2007
Legislative Activity
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Became Public Law No: 110-166.
December 26, 2007
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Introduced in House
October 30, 2007
Referred to the House Committee on Ways and Means.
October 30, 2007
Committee Consideration and Mark-up Session Held.
November 2, 2007
Ordered to be Reported (Amended) by the Yeas and Nays: 22 - 13.
November 2, 2007
Reported (Amended) by the Committee on Ways and Means. H. Rept. 110-431.
November 6, 2007
Placed on the Union Calendar, Calendar No. 271.
November 6, 2007
Rules Committee Resolution H. Res. 809 Reported to House. Rule provides for consideration of H.R. 3996 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. A specified amendment is in order. All points of order against consideration of the bill except those arising under clause 9 or 10 of rule XXI. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill shall be considered as adopted and the bill, as amended.
November 8, 2007 • 8:07 PM
Rule H. Res. 809 passed House.
November 9, 2007 • 11:05 AM
Considered under the provisions of rule H. Res. 809. (consideration: CR H13428-13462; text of measure as introduced: CR H13428-13434)
November 9, 2007 • 11:38 AM
Rule provides for consideration of H.R. 3996 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. A specified amendment is in order. All points of order against consideration of the bill except those arising under clause 9 or 10 of rule XXI. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill shall be considered as adopted and the bill, as amended.
November 9, 2007 • 11:39 AM
DEBATE - The House proceeded with one hour of debate on H.R. 3996.
November 9, 2007 • 11:40 AM
DEBATE - The House resumed debate on H.R. 3996.
November 9, 2007 • 12:58 PM
The previous question was ordered pursuant to the rule. (consideration: CR H13461)
November 9, 2007 • 1:15 PM
Passed/agreed to in House: On passage Passed by the Yeas and Nays: 216 - 193 (Roll no. 1081).(text: CR H13434-13445)
November 9, 2007 • 1:44 PM
Motion to reconsider laid on the table Agreed to without objection.
November 9, 2007 • 1:44 PM
On passage Passed by the Yeas and Nays: 216 - 193 (Roll no. 1081). (text: CR H13434-13445)
November 9, 2007 • 1:44 PM
Received in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
November 13, 2007
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 487.
November 14, 2007
Motion to proceed to consideration of measure made in Senate. (consideration: CR S14731-14733)
December 4, 2007
Cloture motion on the motion to proceed to the measure presented in Senate. (consideration: CR S14731; text: CR S14731)
December 4, 2007
Motion to proceed to measure considered in Senate.
December 5, 2007
Motion to proceed to consideration of measure withdrawn in Senate.
December 5, 2007
Motion to proceed to measure considered in Senate. (consideration: CR S14773-14774)
December 5, 2007
Cloture on the motion to proceed to the measure not invoked in Senate by Yea-Nay Vote. 46 - 48. Record Vote Number: 414. (consideration: CR S14809-14814)
December 6, 2007
Motion by Senator Reid to reconsider the vote by which cloture on the motion to proceed was not invoked (Record Vote No. 414) entered in Senate. (consideration: CR S14814)
December 6, 2007
Measure laid before Senate by unanimous consent. (consideration: CR S14835-14838)
December 6, 2007
Passed Senate with an amendment by Yea-Nay Vote. 88 - 5. Record Vote Number: 415.
December 6, 2007
Message on Senate action sent to the House.
December 17, 2007
Rules Committee Resolution H. Res. 894 Reported to House. Rule provides for consideration of H.R. 3996 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions. Measure will be considered read. Bill is closed to amendments.
December 19, 2007 • 12:04 PM
Mr. Rangel moved that the House suspend the rules and agree to the Senate amendment. (consideration: CR H16889-16899)
December 19, 2007 • 2:55 PM
DEBATE - The House proceeded with forty minutes of debate on the motion to suspend the rules and agree to the Senate amendment on H.R. 3996.
December 19, 2007 • 2:55 PM
Resolving differences -- House actions: On motion that the House suspend the rules and agree to the Senate amendment Agreed to by the Yeas and Nays: (2/3 required): 352 - 64 (Roll no. 1183).(text as House agreed to Senate amendment: CR H16889)
December 19, 2007
On motion that the House suspend the rules and agree to the Senate amendment Agreed to by the Yeas and Nays: (2/3 required): 352 - 64 (Roll no. 1183). (text as House agreed to Senate amendment: CR H16889)
December 19, 2007 • 4:19 PM
Motion to reconsider laid on the table Agreed to without objection.
December 19, 2007 • 4:19 PM
Cleared for White House.
December 19, 2007
Presented to President.
December 20, 2007
Signed by President.
December 26, 2007
Became Public Law No: 110-166.
December 26, 2007
Voting History
4 votes recorded • Roll call available
HOUSE
Roll Call AvailableDecember 19, 2007 at 4:19 PM
Suspend the Rules and Agree to the Senate amendment
Majority required: 2/3 (66.7%)
352 - 64
SENATE
Roll Call AvailableDecember 6, 2007 at 6:23 PM
On Passage of the Bill H.R. 3996
Majority required: 1/2 (50%)
88 - 5
SENATE
Roll Call AvailableDecember 6, 2007 at 11:32 AM
On the Cloture Motion H.R. 3996
Majority required: 3/5 (60%)
46 - 48
Floor Debate
23 membersWhat members said about H.R. 3996 on the floor
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Floor Debate
23 membersWhat members said about H.R. 3996 on the floor
Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 809 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…
Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 809 and ask for its immediate consideration.
Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Washington (Mr. Hastings). All time yielded during consideration of the rule is for debate only.
General Leave
I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks and insert extraneous materials into the Record.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H. Res. 809 provides for consideration of H.R. 3996, the Temporary Tax Relief Act of 2007, under a structured rule. The rule provides 1 hour of debate controlled by the Committee on Ways and Means. The rule makes in order a substitute amendment to be offered by Representative McCrery of Louisiana or his designee. The amendment is debatable for 1 hour.
Mr. Speaker, I rise in strong support of H.R. 3996, the Temporary Tax Relief Act. I want to commend the distinguished chairman of the Ways and Means Committee, Congressman Charlie Rangel, for his usual great work on this bill.
And I want to say a special thank you to my good friend and colleague and neighbor from Massachusetts, Congressman Richie Neal, who has been a champion on the issue of the alternative minimum tax for a long, long time. Richie Neal has been the canary in the coal mine, talking about the AMT when nobody else was, and he deserves an enormous amount of credit for his work.
Mr. Speaker, we all know that the alternative minimum tax was never designed to hit middle-class families, but that's exactly what will happen unless Congress acts.
In my district alone, the numbers are staggering. In 2005, 13,000 families were hit with the AMT. That number will jump to nearly 83,000 in 2007, a 517 percent increase, unless we do something about it.
These middle-class workers are struggling with enough problems, skyrocketing fuel costs, higher tuition, higher property taxes, higher child care costs. And for years, President Bush and his Republican allies in Congress passed huge tax cuts for the wealthy, while doing very little or nothing to help hardworking middle-class families. That has to stop, and we're going to stop it today.
My Republican friends on the Rules Committee often like to talk about how strong the economy is, how GDP is growing at such a rate. Well, I agree to a certain point, Mr. Speaker. Somebody is getting pretty rich in this economy, but I would point out that it usually isn't the workers, and they're the ones that make this country great. Last year, the average CEO made 364 times what the average worker did. Just 25 years ago, CEOs made only 42 times more.
So yes, the people at the top are having a blast, but we need to do more for the people in the middle and for those struggling to get into the middle.
This bill before us today not only spares these hardworking families from the AMT, but it does so in a fiscally responsible way, and that is at the heart of the argument before us today.
Some of my friends on the other side of the aisle believe that we should patch the AMT without paying for it. They believe that we should simply add the cost on to our national debt, a debt, by the way, that has now reached $9 trillion. That's trillion with a ``T.''
Of course, this has been their approach for years. The Iraq War? Not paid for. The Bush tax cuts? Not paid for. The Medicare prescription drug benefit? Not paid for.
But, Mr. Speaker, someday, somebody, somewhere is going to have to pay for all of that debt. It's going to be our children and our grandchildren. It's wrong and it's got to stop.
It makes no sense to cut taxes for today's middle-class families just to raise taxes on future middle-class families, but that's exactly the kind of debt tax that my Republican friends would like to enact.
My friends believe that these tax cuts pay for themselves. They believe that the magic money fairy will drop revenue from the sky with rainbows and butterflies. But in the real world, actions have consequences. The Massachusetts families that I am honored to represent have to make tough choices, and Congress has to make some tough choices, too.
These PAYGO rules that Democrats have enacted are tough. This new fiscal discipline isn't easy, but it's the right thing to do. And rescuing tens of thousands of families in my district from the pain of the AMT is also the right thing to do.
I thank my colleagues for their hard work, and I reserve the balance of my time.
Mr. Speaker, I would like to respond to my colleague from Washington State. He began by saying there is an easy way to do this; there is a way for Washington politicians to do this and that is to provide this relief without paying for it. That is what the Republicans have done while they were in charge here. They have borrowed and spent, borrowed and spent, borrowed and spent; and we have
a debt that is in the trillions and trillions of dollars.
The gentleman from Washington says that some people will have to pay more in order to offset this AMT relief package. Well, 50,000 tax returns will be affected, and that is by closing a loophole that, quite frankly, I think, every sensible person believes should be closed.
But here is the return: by impacting those 50,000 tax returns, we are going to protect 23 million middle-class families from being hit by the alternative minimum tax. We will provide 30 million homeowners with property tax relief. We will help 12 million children by expanding the child tax credit. We will benefit 11 million families through the State and local sales tax deduction. We will help 4.5 million families better afford college with a tuition deduction.
We will save 3.4 million teachers money with a deduction for classroom expenses, and we will provide thousands of American troops in combat with tax relief under the earned income tax credit.
So what we are doing here is providing much-needed relief to middle- income families, and we are doing it in a responsible way, and we are not passing the bill onto our kids and our grandkids like they have done for years and years and years.
Mr. Speaker, I yield 3\1/2\ minutes to the gentleman from Oregon of the committee on Ways and Means, Mr. Blumenauer.
Mr. Speaker, the previous speaker began by saying he is so proud of this economy and it's doing so well. The thing that he may not know is that he thinks it's doing well,
but the majority of the American people do not think it's doing well. A recent poll showed that over 70 percent of people in this country think we are going in the wrong direction. Maybe he needs to get out of Washington a little bit more, outside the Beltway, talk to real people and understand the struggle people are going through.
The gentleman also knows that tax bills are traditionally considered under a closed or structured process. Under this rule, the minority has the opportunity to offer a substitute as long as it does not violate any House rules. The Rules Committee made this substitute in order sight unseen and this rule gives the minority an opportunity to amend this bill if they choose.
Again, one of the new rules that we are operating under here in the House is that you have to pay for whatever you do. You can't borrow anymore. You can't run up the natural credit card anymore. You can't burden our kids and grandkids anymore. You have to be responsible.
Mr. Speaker, at this time I would like to yield 3 minutes to the gentleman from New York, a member of the Rules Committee, Mr. Arcuri.
Mr. Speaker, I would just reply to the gentleman that if he has an amendment that is truly
compliant with PAYGO, he can offer it as a substitute. That is allowed under the rule.
At this point, Mr. Speaker, I would like to yield 2\1/2\ minutes to the gentleman from Vermont (Mr. Welch), a member of the Rules Committee.
Mr. Speaker, before I yield to the next speaker, I just want to respond to something the gentleman said. He questioned whether we did anything of relevance this week. Let me remind him that we did the Defense appropriations bill, which supports our troops. We did the Labor-HHS, which funds, among other things, the National Institutes of Health. We did the Homeowners' Defense bill to deal with natural disasters. There was the Peru Free Trade Agreement. There was the ENDA bill, which ends discrimination against people based on their sexual orientation. We overrode, thankfully, the President's unwarranted veto on WRDA so that we could actually support our infrastructure, which this President and the Republicans in Congress have denied funding for for so many years.
So, Mr. Speaker, I think we had a good week, and I'm proud of what this Democratic Congress is doing.
Mr. Speaker, I yield 3 minutes to the gentleman from Wisconsin, a member of the Ways and Means Committee (Mr. Kind).
Mr. Speaker, I yield myself 10 seconds.
Mr. Speaker, in the litany of accomplishments this week, I neglected to say that we also voted on the Military Construction bill, and we will continue to vote on it until it becomes the law of the land.
And speaking of differences between the two parties, under a Democratic Congress, we are going to give our veterans the biggest single-year increase in health care benefits in the history of the Veterans Administration. That is under a Democratic Congress, not under a Republican Congress.
Mr. Speaker, at this time I would like to yield 1\1/2\ minutes to the gentlewoman from Connecticut (Ms. DeLauro).
Mr. Speaker, at this time I would like to yield 2 minutes to the gentleman from New Jersey (Mr. Holt).
Mr. Speaker, I yield 2 minutes to the gentleman from Texas (Mr. Doggett).
Mr. Speaker, at this time, it's my honor to yield 2 minutes to the distinguished chairman of the Ways and Means Committee, the gentleman from New York (Mr. Rangel).
Mr. Speaker, I urge my colleagues to vote ``yes'' on the previous question, I urge them to vote ``yes'' on the rule, and I urge them to vote ``yes'' on the underlying bill.
Thousands of middle-class families in this country deserve relief from the AMT tax, and that's what this underlying bill is all about. In addition, as we provide relief to these middle-class families, we owe it to our kids not to saddle them with the bill, and that's also the purpose of the underlying bill.
Mr. Speaker, I have two kids, a 9-year-old son and a 6-year-old daughter. I don't want to leave them with a future in which they have to pay for all of the mistakes and all of the mismanagement of my generation.
The Republicans want to have it in a way that they can do things and not pay for anything. We have a war in Iraq. It's not paid for. Doesn't bother them in the least. Their prescription for health care is take two tax breaks and call me in the morning. It doesn't bother them in the least that the bill is going to be paid for by our kids and our grandkids. Tax cuts for the rich. Again, put it on the backs of our kids and our grandkids. Mr. Speaker, that is irresponsible.
Our Nation is currently burdened with over $9 trillion of national debt. The average daily interest accruing on this debt exceeds $1 billion. Each American share of this debt is more than $30,000. We cannot afford to keep taking on this additional debt.
When the Democrats regained control of the Congress, we instituted PAYGO rules, pay as you go. Families in America have to live within their budgets. The United States Congress ought to be able to live within a budget. We need to be fiscally responsible.
So, if you want to give your rich friends a tax cut, then pay for it. If you want to have a war, then pay for it. We need to pay as you go.
Mr. Speaker, this is a good bill. Vote ``yes'' on the previous question and ``yes'' on the rule.
The material previously referred to by Mr. Hastings of Washington is as follows:
Amendment to H. Res. 809 Offered By Mr. Hastings of Washington
At the end of the resolution, add the following:
Sec. 3. The House disagrees to the Senate amendment to the
bill, H.R. 2642, making appropriations for military
construction, the Department of Veterans Affairs, and related
agencies for the fiscal year ending September 30, 2008, and
for other purposes, and agrees to the conference requested by
the Senate thereon. The Speaker shall appoint conferees
immediately, but may declare a recess under clause 12(a) of
rule I for the purpose of consulting the Minority Leader
prior to such appointment. The motion to instruct conferees
otherwise in order pending the appointment of conferees
instead shall be in order only at a time designated by the
Speaker in the legislative schedule within two additional
legislative days after adoption of this resolution.
(The information contained herein was provided by
Democratic Minority on multiple occasions throughout the
109th Congress.)
The Vote on the Previous Question: What It Really Means
This vote, the vote on whether to order the previous
question on a special rule, is not merely a procedural vote.
A vote against ordering the previous question is a vote
against the Democratic majority agenda and a vote to allow
the opposition, at least for the moment, to offer an
alternative plan. It is a vote about what the House should be
debating.
Mr. Clarence Cannon's Precedents of the House of
Representatives, (VI, 308-311) describes the vote on the
previous question on the rule as ``a motion to direct or
control the consideration of the subject before the House
being made by the Member in charge.'' To defeat the previous
question is to give the opposition a chance to decide the
subject before the House. Cannon cites the Speaker's ruling
of January 13, 1920, to the effect that ``the refusal of the
House to sustain the demand for the previous question passes
the control of the resolution to the opposition'' in order to
offer an amendment. On March 15, 1909, a member of the
majority party offered a rule resolution. The House defeated
the previous question and a member of the opposition rose to
a parliamentary inquiry, asking who was entitled to
recognition. Speaker Joseph G. Cannon (R-Illinois) said:
``The previous question having been refused, the gentleman
from New York, Mr. Fitzgerald, who had asked the gentleman to
yield to him for an amendment, is entitled to the first
recognition.''
Because the vote today may look bad for the Democratic
majority they will say ``the vote on the previous question is
simply a vote on whether to proceed to an immediate vote on
adopting the resolution . . . [and] has no substantive
legislative or policy implications whatsoever.'' But that is
not what they have always said. Listen to the definition of
the previous question used in the Floor Procedures Manual
published by the Rules Committee in the 109th Congress, (page
56). Here's how the Rules Committee described the rule using
information from Congressional Quarterly's ``American
Congressional Dictionary'': ``If the previous question is
defeated, control of debate shifts to the leading opposition
member (usually the minority Floor Manager) who then manages
an hour of debate and may offer a germane amendment to the
pending business.''
Deschler's Procedure in the U.S. House of Representatives,
the subchapter titled ``Amending Special Rules'' states: ``a
refusal to order the previous question on such a rule [a
special rule reported from the Committee on Rules] opens the
resolution to amendment and further debate.'' (Chapter 21,
section 21.2) Section 21.3 continues: ``Upon rejection of the
motion for the previous question on a resolution reported
from the Committee on Rules, control shifts to the Member
leading the opposition to the previous question, who may
offer a proper amendment or motion and who controls the time
for debate thereon.''
Clearly, the vote on the previous question on a rule does
have substantive policy implications. It is one of the only
available tools for those who oppose the Democratic
majority's agenda and allows those with alternative views the
opportunity to offer an alternative plan.
Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.
Mr. Speaker, I yield myself so much time as I may consume. Mr. Speaker, my good friend, the distinguished chairman of the Ways and Means Committee, Mr. Rangel, makes a number of points in support of…
Mr. Speaker, I yield myself so much time as I may consume.
Mr. Speaker, my good friend, the distinguished chairman of the Ways and Means Committee, Mr. Rangel, makes a number of points in support of the PAYGO rule, which forms the basis of the requirement in this bill to raise taxes on one set of taxpayers in order to prevent a tax increase on another set of taxpayers. I just want to talk about why this rule, I believe, has been treated in a way that nobody who ever came up with the idea of PAYGO meant for it to be treated.
If we were to go out on the street, Mr. Speaker, and pull aside an average person on the street and say, we're thinking about instituting in Congress a PAYGO rule. And what that means is, if we cut taxes somewhere, we have to pay for that by increasing taxes somewhere else or decreasing spending somewhere else.
Okay. That sounds reasonable.
Well, it also means that if we increase spending in some program, or if we create a new spending program, we either have to decrease spending somewhere else or raise taxes to pay for that increased spending.
Oh, well, yeah, that sounds reasonable.
But, then if you tell that person, and, oh, by the way, we're going to assume that we have more revenue next year, and that revenue is going to be produced by this set of taxpayers. They're not paying it now, but we're going to assume that next year they will pay it. And in order to relieve them of that assumption that they're going to pay for in taxes, we're going to increase taxes on this group of taxpayers over here. How's that sound?
The average person, Mr. Speaker, I would submit, would say that doesn't make much sense. And it doesn't make much sense. In fact, Mr. Speaker, it puts this House and this Congress in a fiscal straitjacket with respect to tax policy and fiscal policy.
Now, the chairman has said himself, this AMT thing is crazy. It was never meant to apply to middle-class taxpayers. It was a mistake. Well, why don't we just admit the mistake and get rid of it? If it was our mistake, let's correct the mistake by getting rid of it. We never meant to collect this level of revenues that are anticipated in the CBO baseline.
I don't want to talk about the CBO baseline because folks in America don't understand the CBO baseline. But that's the genesis of all this tax raising that the majority is about to undertake here. And we ought to stop it today. This is the first step.
I feel like the little boy in Holland sticking his thumb in the dike. If I'm not here today to stick my thumb in the dike and stop this bill from passing and expose the flaws of this PAYGO system, we're going to have a torrent, a flood of tax increases over the next 10 years.
In fact, the CBO, with the assistance of the Joint Tax Committee, has determined that if this PAYGO rule that governs this bill today stays in place, we're going to increase taxes on the American people over the next 10 years $3.5 trillion.
Mr. Speaker, that is the largest tax increase in either nominal terms or real terms in the history of this country. Now, is that what the Democratic majority wants for this country?
Do they want to take a chance on increasing taxes to that extent on the American people at a time when we have a housing crisis, when the dollar's value is dropping? I hope not.
Today is the day we expose this very flawed and dangerous PAYGO policy by defeating this bill today, Mr. Speaker.
Mr. Speaker, although I cannot support this bill, I strongly support extension of the AMT patch and most of the provisions of current law extended in this bill. Congress should protect the 19 million Americans who are at risk of paying the AMT this year. Congress should also extend individual and business tax incentives important to the Nation's economy.
Unfortunately, at its core, this bill is not about the AMT or extenders. It is about the elevation of form over substance and the decision of the Congress to bind itself to the mast of Paygo, wherever it may lead.
While there may be valid reasons to apply the principles of Paygo to spending changes, we think the calculus is far different in the case of tax policy.
As we amply documented during the Ways and Means mark-up of this bill, the majority's budget assumes that the Federal Government will generate revenue from allowing the AMT to continue to plague taxpayers and from allowing the 2001 and 2003 tax cuts to sunset. These budget assumptions will have the effect of raising taxes on the Americans people by $3.5 trillion over the next decade. Paygo forces Congress to decide whether to let those tax increases take place or replace them with other tax hikes.
It is true that under the current iteration of Paygo, tax cuts could be ``paid for'' by spending cuts, but we have seen no appetite of the current majority for such as sensible approach. For bills both small and large, the Ways and Means Committee has become an ATM for other committees, spitting out tax increases of whatever shape or size is deemed necessary to meet the new majority's appetite for additional spending. Indeed, this House
has already passed over $100 billion in tax increases this year alone.
What Paygo has become, as embodied in this bill, is far more breathtaking. Here, it is being invoked as a reason for Congress to raise taxes in order to prevent a tax increase.
Let me say that again, the majority has created a rule under which Congress must raise taxes in order to prevent a tax increase. Let me give an example utilizing the context of this bill.
If Congress does not enact this legislation, Americans will pay about $70 billion more in taxes next year. If we pass this bill, Americans will pay about $70 billion more in taxes next year. What's wrong with this picture? Either way it's a tax increase.
And let us keep in mind that this bill imposes mostly permanent tax increases to pay for temporary tax cuts. Even if this bill passes, we will be back here again next year struggling to find another $70-plus billion in tax increases to ``rent'' one more year of expiring provisions.
Unfortunately, this is just a baby step. Under the next President, we seem likely to face large tax increases in order to ``prevent'' a tax increase on families with children, tax increases on marriage, marginal tax rate increases, or tax increases on estates. And that's before we are asked to enact other tax increases to pay for new tax incentives or new spending programs.
Raising taxes to prevent a tax increase shows the danger of turning a bumper sticker into a budget rule.
According to estimates the Congressional Budget Office and the Joint Tax Committee, Federal revenues in fiscal year 2007 totaled about 18.6 percent of our economy, well above the historical average of 18.2 percent.
The Joint Tax Committee estimates that over the next decade if we continue to operate in this Paygo straitjacket, revenues will reach 20.1 percent of GDP in 2017, a level seen only once since 1962. Think about it--this bill is the first step in endorsing what will be, in both nominal and real terms, the largest tax increase in the history of the United States.
We may well pass this bill today, but what happens next is anyone's guess. The Senate has given us strong and repeated signals that they intend to reject offsets to pay for an AMT patch and the administration has issued a veto threat. This all suggests we will spend more days debating this issue, even as the continued delay threatens to make the coming tax filing season chaotic.
As the Secretary of the Treasury warned us last month, ``enactment of a patch in mid-to-late December could delay issuance of approximately $75 billion in refunds to some 50 million taxpayers who are likely to file their returns before March 31, 2008.'' That would be on top of the confusion it will cause taxpayers and the added costs the Federal Government will pay to print new forms and provide assistance to perplexed taxpayers.
Simply put, we should stop this charade and recognize that we need to promptly pass a patch and extenders package that the Senate can pass and that the President can sign. If we fail to do so today, the cost of delay and inaction on the AMT patch will continue to mount.
I urge defeat of the bill so that the Ways and Means Committee can promptly put together a package that has a chance of making it to the President.
I reserve the balance of my time.
Mr. Speaker, I yield 2\1/2\ minutes to the distinguished minority whip, Mr. Blunt of Missouri.
Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr. Herger), member of the Ways and Means Committee.
Mr. Speaker, I yield 2 minutes to the distinguished ranking member on the Health Subcommittee of the Ways and Means Committee, Mr. Camp.
Mr. Speaker, I yield 1 minute to the gentleman from Texas, the distinguished ranking member of the Social Security Subcommittee (Mr. Sam Johnson).
(Mr. SAM JOHNSON of Texas asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 2 minutes to the distinguished ranking member of the Select Revenue Measures Subcommittee, in which some of this bill was developed, Mr. English.
Mr. Speaker, at this time, I yield 2\1/2\ minutes to a distinguished member of the Ways and Means Committee, the gentleman from New York (Mr. Reynolds).
(Mr. REYNOLDS asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 2 minutes to the distinguished member of the Ways and Means Committee, Mr. Brady from Texas.
Mr. Speaker, may I inquire as to the time remaining for each side.
Mr. Speaker, I yield 2 minutes to the distinguished ranking member of the Budget Committee and a member of the Ways and Means Committee, Mr. Ryan from Wisconsin.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the gentleman's enthusiasm for his point of view doesn't make his point of view correct. In fact, Republicans time and time again protected taxpayers, middle-class taxpayers, from the application of the AMT. That is why there's a patch in place today; that is why last year those 21 million taxpayers didn't pay the AMT. In 1999, I would tell the Speaker to inform the gentleman, the Republican Congress repealed the AMT and, unfortunately, President Clinton vetoed that repeal. So I would take issue
with the gentleman's characterization of the Republican Congress's actions with respect to this issue.
At this time, Mr. Speaker, I yield 2 minutes to the distinguished member of the Ways and Means Committee, the gentleman from Virginia (Mr. Cantor).
(Mr. CANTOR asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Texas (Mr. Hensarling).
Mr. Speaker, I yield 1 minute to the gentleman from New Jersey (Mr. Garrett).
Mr. Speaker, I yield 1 minute to the gentleman from California (Mr. Campbell).
Mr. Speaker, I yield 1 minute to the gentleman from New York (Mr. Fossella).
Mr. Speaker, I yield myself 1 minute.
There has been a lot said here on the floor today and a lot of it is one person or one party's spin on the facts or on history. The distinguished majority leader put his spin on history. I would just like to point out to the House that for the last 6 years of the Clinton administration, which was bragged about so by the majority leader, there was a Republican-controlled Congress. Under the Constitution, the Congress controls the purse strings of the country and develops fiscal policy. And under our fiscal policy, we balanced the budget and created a surplus.
Then when President Bush came into office, he inherited a recession, a short-lived recession, admittedly, but still a recession. And then we had 9/11 which was a shock to the economy and then we had war. Every time in this Nation's history that we have had either a recession or a war, we have had a deficit. This time is no different. But, under our policies, we are producing this year 18.6 percent of GDP for Federal revenues and that is above the historic average. Why do we need more, Mr. Speaker? This bill would add to that. We don't need to.
Mr. Speaker, to close the debate for our side, I recognize for the remaining time the gentleman from Ohio (Mr. Boehner), the distinguished minority leader.
Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.
I thank the gentleman for yielding. Mr. Speaker, on Monday the House will meet at 12:30 p.m. for morning- hour debate and 2 p.m. for legislative business, with votes rolled until 6:30 p.m. We will…
I thank the gentleman for yielding.
Mr. Speaker, on Monday the House will meet at 12:30 p.m. for morning- hour debate and 2 p.m. for legislative business, with votes rolled until 6:30 p.m.
We will consider several bills under suspension of the rules. A list of those bills will be announced by the close of business tomorrow.
On Tuesday the House will meet at 9 a.m. for morning-hour debate and 10 a.m. for legislative business. On Wednesday and Thursday, the House will meet at 10 a.m. for legislative business and 9 a.m. on Friday.
We expect to consider H.R. 3688, the United States-Peru Trade Promotion Agreement Implementation Act; H.R. 3355, the Homeowners' Defense Act of 2007; and H.R. 3996, Temporary Tax Relief Act of 2007; the conference report on the fiscal year 2008 Labor-HHS appropriations bill. If the President vetoes the WRDA bill, we will expect to take up that veto as well.
Also, Members should note on Wednesday, President Sarkozy of France will address a joint meeting of the House and Senate. I would like to say to all the Members who are listening, I would hope that they would make a special effort to be here for the address of President Sarkozy.
I would make the observation that the new President of France is someone who, I think, holds great promise for partnership with the United States. I think he has expressed that inclination. I think that is a very significant, positive step forward, and I hope that most of us that will be able to, within the framework of legislative business, be here to hear his address.
As I said in my announcement, it is my expectation that the Labor-HHS conference report will be on the floor next week. I don't know whether it will be Wednesday or Thursday of next week, but I expect it to be on the floor next week.
The conference, much of the work of the conference, as I indicated last week, the preconferencing was occurring, both parties were involved in that preconferencing, and hopefully that has led to what will be a relatively brief conference. I do not have information whether or not they were able to conclude today. I know they met this morning and into this afternoon. I don't know whether they have concluded.
My sense is those were the press reports.
I can neither confirm nor deny, as they say, that that is the case.
Will my friend yield?
I thank my friend for yielding.
And I know that point has been made, but I want to tell you, very honestly, I hear you make the point, but not only did you package almost all, the majority of bills in 2005 and 2006, but you packaged them in the calendar year, that is to say, 3 months from today, before they were passed. And so that, although that is your desire, and it is my desire, we share that view, you're absolutely right. These bills ought to be considered individually, one at a time, on their merits, sent to the President, and he ought to have the opportunity to veto them or sign them individually.
But I would remind the gentleman that in fiscal year, I believe, I may be wrong on the fiscal year, fiscal year 2005, it was not until February 2005 that that bill was passed, with eight or nine of the bills incorporated in an omnibus. And in either the year before that, or the year after that, in January, eight bills were sent.
Now, I may be off one or two bills on the numbers, but my point is, the gentleman is correct. Unfortunately, that has not been the practice, either under your leadership or our leadership. And I think it's unfortunate, personally. But we're going to move these bills, as I said last week, hopefully as quickly
and effectively as possible; and, hopefully, the President will sign them. They've passed with an average of 285 votes, some closer, some different than that. Averages lie in that respect. But they have passed pretty handily both Houses of the Congress. In the Senate every one has passed with a veto-proof majority. That's not true in the House. But we're hopeful that we can get these bills to the President and signed by the President, whether they're individually or in packages.
Is there any doubt that that's what we're trying to do?
On that point, because I think it's important for our Members to understand and for the public to understand what's going on. The gentleman is correct. You took the Veterans bill out of the Housing bill. We think you liked the Veterans bill. We're not sure you liked the Housing bill, and so you took them apart so you could pass what you liked and leave what you didn't like alone.
As you know, the first 2 months that we came in, we dealt with the eight bills that you had not passed. They were all domestic bills. You passed the Defense bill, the MilCon bill, Homeland Security bill, all of that, broad bipartisan support on our side, your side. Education was left on the table. Health was left on the table. Environment, left on the table. Space, left on the table. Law enforcement, left on the table.
We understand the decoupling. Decoupling is to put us in a position where we don't have any options. You'll take what was passed with 409 votes in this House. It was $4 billion over what the President requested, billions of dollars under what the veterans said they needed.
And now the President says he is going to sign that bill. Why is he going to sign that bill? Because I think he believes it's politically feasible to do it. It's $4 billion over what the President asked for, and he said we shouldn't ask for more than he asked for. We asked for $4 billion more than he asked for for veterans, and he's going to sign it. Overwhelmingly supported here in the House, and we would override his veto. He knows that, so I don't think he's given us much, very frankly.
And we are trying to figure out how we can get Education signed by the President, funding No Child Left Behind signed by the President, NIH, cancer research, heart, lung and blood research, diabetes research signed by the President.
So very frankly, your decoupling was to make sure that you got the bill you liked signed. Our coupling may be to ensure that we get the bill that we like signed. So very frankly, the efforts, I think, are the same. The priorities just may be different.
I thank the gentleman.
I don't have the figure in front of me, but I will find it out. I believe, very frankly, very few substitutes have been brought to the Rules Committee by your side. But that aside, I will get that number so we will know it.
But I take your point. That aside, I take your point.
Let me say that what we intend to do is continue to try to facilitate the work of this House, facilitate passing legislation, and we will continue to try to do that.
Yes, I think I mentioned that.
No, I don't know whether it will be Wednesday, Thursday or
Friday; but it will be one of those three days is my expectation. I know Mr. Rangel wants to move the AMT patch. I'm for moving the AMT patch. I'm for paying for it. But I'm for moving it. The Temporary Tax Relief Act.
Yes, that's what we're referring to. So the answer is, yes, we intend to move that next week.
I don't have that dollar amount, but I know that it's in the $50 billion category to do a temporary patch, which we have done over the last few years. We borrowed the money each time we've done that, but it's about $50 billion. We intend to pay for it.
As you know, we have followed the PAYGO rules since we adopted them, and we intend to hew to that practice. And we think it's the appropriate practice, rather than borrow $50 billion today to give taxpayers relief so that our children can pay for that tax relief in the future. We feel strongly about that and we intend to do that.
We anticipate Friday of next week. And I'm not yet anticipating the 16th, which is Friday, because I'm not sure exactly. The continuing resolution ends on the 16th of November. It is my expectation that we will do another continuing resolution while we continue to try to pass the balance of the appropriation bills, and I expect to do that earlier than the 16th, but we can't give away the 16th at this point in time because we have no intention of shutting down the government and, therefore, we're going to make sure that we provide for making sure the government stays in operation. But if we can conclude our work by the 15th, I'm sure the Members will be happy. But the 16th is still on the schedule.
I thank the gentleman for yielding one more time.
I have not mentioned something, but I do want to mention, so the House knows and, frankly, the public knows as well. As you know, we have been working very hard on the Children's Health Insurance Program, trying to get as many children as possible covered by children's health. I want to thank the whip. I had the opportunity of meeting with Mr. Boehner. Their staffs have been engaged. Our staffs have been engaged. Senate Democratic and Republican staff and Members have been engaged. We're still working on that.
As you know, Senator Reid attempted to get a delay in the consideration of the bill on the Senate floor. That was objected to by Mr. McConnell, or actually Mr. Lott on behalf of Mr. McConnell, and they took it up today. Mr. Reid asked for another extension. That was objected to by Mr. McConnell this time. So they considered it today.
But I want the whip to know that we are intending to continue to pursue discussions. Obviously the Senate has to send the bill back here. But we want to continue to pursue these discussions to see whether or not we can come to agreement so that we can send a bill to the President that, hopefully, he would sign but, if he doesn't sign, that two-thirds of us on this side of the Capitol and two-thirds on the other side of the Capitol would be prepared to see it move forward.
Well, they have to send it back here as the House of origin, I believe. I'm not sure that it has to be sent back. I may be incorrect in that. But I am not sure how soon the Senate will send the bill down.
Will the gentleman yield?
I thank the gentleman for yielding.
Frankly, we have a disagreement on whether you were denied time. We did pass the bill, but we have been pursuing, as the gentleman observed, and I appreciate the participation of those Republicans, one of whom is sitting on the floor, who have participated in numerous meetings, whether or not we can accommodate the interests of both sides in passing legislation to include the children, expanding it to 10 million. But notwithstanding the fact that we passed it, as I explained to the House, we wanted to get that bill to the Senate so that they could have it ready for consideration.
We were in agreement that it ought to be moved over until next week. Senator Reid asked for that so we could continue to work. As I advised Senator Reid, the leader, I advised him that I thought there were good- faith discussions going on. I thought there was an opportunity to move forward. I am still hopeful that that is the case. And as a result, I am hopeful that we will take the additional time, the next day, tomorrow, Saturday, Sunday, Monday, to try to see if we can come to agreement.
As you know, you, Mr. Boehner and I met, and Mr. Boehner's observation was there may be significant numbers that could accrue as a result of the discussions and negotiations. We're hopeful that that is the case. If that's the case, then we would be successful in adding the 4 million children that we seek to add to the President's 6 million plus.
What I wanted to indicate before we close this colloquy is that I am hopeful we will still take that time, and I have indicated to a number of people that I want to pursue, we want to pursue, those discussions with the opportunity to perhaps take some additional action if agreement is possible.
Mr. Speaker, I want to thank my friend from Massachusetts (Mr. McGovern) for yielding me the customary 30 minutes, and I yield myself as much time as I may consume. (Mr. HASTINGS of Washington asked…
Mr. Speaker, I want to thank my friend from Massachusetts (Mr. McGovern) for yielding me the customary 30 minutes, and I yield myself as much time as I may consume.
(Mr. HASTINGS of Washington asked and was given permission to revise and extend his remarks.)
Mr. Speaker, the clock is ticking and time is running out. At the end of the year, many of the important tax provisions that have helped our economy grow will expire. Unless Congress acts and gets a bill to the President that he will sign into law, workers, families and small businesses will face a tax increase this year.
Congress can either accomplish this the easy way, by working together in a bipartisan manner, or it can be done the hard way, by dragging out the process, passing a bill in the House that the Senate won't even consider and the President has threatened to veto, only for the Democrats then to rush a bill to the floor at the last minute that no one has had time to read and that should have been considered in the first place.
I'm disappointed that the Democrat majority has chosen the hard way on this and so many other pieces of legislation this year.
The parts of this bill that prevent tax increases are good, and I support most of them, Mr. Speaker. I support ensuring over 20 million Americans are not caught up in paying the AMT. Over the years, this tax burdens more and more middle-income Americans, clearly an unintended consequence of the original bill.
I support extending the State and local sales tax deduction so that taxpayers in my State of Washington and other States without a State income tax will continue to be able to deduct State sales tax from their Federal tax bill.
I support extending tax incentives to enhance the affordability of higher education, which will help more middle-income students access post-secondary education.
I support extending an important above-the-line deduction to help teachers contain the costs of out-of-pocket classroom expenses like books, supplies and computer equipment.
I support, Mr. Speaker, extending the research and experimentation tax credit in order to allow the United States to remain a global competitor.
And I support keeping taxes low for small businesses.
These are reasonable parts of the bill, and I have supported them in the past, I support them being extended this year, and I support seeing that they become made into permanent law.
However, I cannot support a bill that temporarily stops certain tax increases by permanently raising other taxes. Let me repeat that. I cannot support a bill that temporarily stops certain tax increases by permanently raising other taxes. It's not right and it's not fair. But the Democrat majority is using temporary tax relief as an excuse to permanently raise taxes.
Under this bill, you may get to keep one of your hard-earned dollars in your right-hand pocket, but the Federal Government is right there taking a dollar out of your left-hand pocket year after year. This is the wrong approach.
Unfortunately, if Democrats have their way, every American will face a tax increase sooner or later. If not this year, then next. If not next year, then certainly in 3 years when tax relief enacted by the Republican Congress will expire, tax relief that lowers rates for every single taxpayer in America. If these tax cuts expire, taxpayers will be forced to pay $3.5 trillion more to the Federal Government over 10 years, and the Democrats plan to spend every dime of it on more government spending.
But, Mr. Speaker, don't take just my word for it. Look at the budget the Democrats adopted earlier this year. When Democrats were faced with the choice of how best to balance the Federal budget, they flat out rejected the option of spending less and declared their allegiance to raising taxes. The Democrat budget would impose the largest tax increase in American history.
Their budget doesn't extend relief from the marriage tax penalty. It doesn't extend the $1,000 child tax credit, it doesn't end the death tax, it doesn't fix the AMT for middle-class families, it doesn't protect the lowest tax rate, and it will force lower-income Americans who today pay no income tax, thanks to the Republicans' tax relief, to start paying taxes again.
The Democrats will call this tax relief bill a tax relief bill. They will deny that they are raising taxes, but the plain hard facts are this bill that this rule would make in order would raise taxes by over $80 billion.
Congress doesn't need to be raising Americans' taxes to pay for Democrat plans to pay for more and higher government spending. Don't raise taxes; reduce spending.
Several of my Republican colleagues that serve on the Ways and Means Committee submitted amendments to the Rules Committee to make this a better bill, a bill that would pass the House on a strong bipartisan basis, pass the Senate and could be signed into law. Amendments to increase the teacher tax credit from $250 to $400, permanently repeal the alternative minimum tax, or AMT, and strike tax increases from the bill that were denied by the Democrat-controlled Rules Committee.
I am especially troubled that an amendment offered by my colleague from Missouri (Mr. Hulshof) to strike language in the bill that gives special treatment to State legislatures was not made in order. It is difficult to understand why this Democrat bill would allow State legislators to earn tax-free income.
For example, in my State of Washington, the State legislators in Olympia have increased spending by 33 percent since 2005 and raised taxes by $500 million, not exactly behavior that deserves rewarding them with a special Federal tax break.
A Washington Post article on November 6 says: ``An official of the nonpartisan congressional Committee on Joint Taxation estimated that the yearly deduction could reach $55,000 for a State lawmaker whose legislature declared enough pro forma days.''
Of all the people in America, State legislators are not at the top of my list and probably not at the top of the list for most Americans. But apparently allowing State legislators tax-free income is a top priority of House Democrats.
This provision was slipped into the bill at the last minute, and it only seeks to benefit a few. It will cost American taxpayers an estimated $4 million. It should be removed from this bill.
This is a bad rule that brings a bill to the floor that is bad policy. I urge my colleagues to vote against the rule and the underlying bill.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 4 minutes to a fellow colleague on the Rules Committee, Mr. Sessions from Texas.
Mr. Speaker, I am pleased to yield 3\1/2\ minutes to a member of the Ways and Means Committee and a classmate of mine, Mr. English.
Mr. Speaker, how much time on both sides?
Mr. Speaker, I am pleased to yield 5 minutes to a member of the Ways and Means Committee, the gentleman from Missouri (Mr. Hulshof).
(Mr. HULSHOF asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 30 seconds to the distinguished ranking member of the Rules Committee.
Mr. Speaker, I am pleased to yield 5\1/2\ minutes to a member of the Ways and Means Committee, the gentleman from Wisconsin (Mr. Ryan).
Mr. Speaker, may I inquire as to how much time is remaining on both sides?
I will reserve the balance of my time.
Mr. Speaker, at this time, I yield 1 minute to the distinguished ranking member of the Rules Committee, Mr. Dreier.
(Mr. DREIER asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield myself the balance of the time.
Mr. Speaker, for the past several weeks, my colleagues on the Rules Committee and I have highlighted the need to pass a stand-alone veterans funding bill. Today is our last opportunity to pass a veterans funding bill and get it to the President before Veterans Day.
The veterans funding bill passed this House this summer with over 400 votes and passed the Senate with over 90 votes. A final veterans funding bill is sitting, waiting to be acted on, but Democrat leaders have bent over backwards to prevent Congress from passing the final bill. They have been stalling since September and have ignored the fact that the new spending year began October 1 this year.
Every day the Democrats choose not to act to move this bill forward, our Nations's veterans lose $18.5 billion. Since the fiscal year began 40 days ago, our Nation's veterans are out $740 million. It has now been nearly 150 days since the Veterans funding bill was approved by the House. The Senate passed a similar bill and appointed its conferees 2 months ago. Sadly, the Democratic leadership in the House has refused to name conferees and instead has chosen to put partisanship and politics ahead of ensuring our veterans' needs are met.
Once Democrat leaders appoint conferees, the House can move forward and pass the stand-alone Veterans funding bill. Three weeks ago, Republican Leader Boehner took a positive step towards naming House Republican conferees. Now, the Speaker must follow suit.
Therefore, Mr. Speaker, I will be asking my colleagues to vote ``no'' on the previous question so I can amend the rule to allow the House to immediately act to go to conference with the Senate on H.R. 2642, the MilCon and Veterans Affairs funding bill, and appoint conferees.
By defeating the previous question, the House will send a strong message to our veterans that they will have our commitment to providing them the funding increase they need, deserve and were promised.
Mr. Speaker, I ask unanimous consent to have the text of the amendment and extraneous material inserted into the Record prior to the vote on the previous question.
Mr. Speaker, I urge my colleagues to oppose the previous question and the rule.
I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.
Mr. Speaker, I yield to my friend, the majority leader, for information about next week's schedule. I appreciate my friend's comment there, and I agree totally that a leader of France who has been so…
Mr. Speaker, I yield to my friend, the majority leader, for information about next week's schedule.
I appreciate my friend's comment there, and I agree totally that a leader of France who has been so open and receptive to America as an ally and a friend deserves that kind of welcome in the joint session of Congress next week. I hope we have the kind of presence here that would indicate our opportunity and our optimism about the Sarkozy government.
On appropriations, I wonder if you have any update on the Labor-HHS conference and the conference report, if you have any sense of that yet.
The press reports today were that that conference would not likely include the elements of the Defense appropriations but still would include the Veterans and the Military Construction appropriations bill.
Is that my friend's sense of where they are headed on that bill?
Well, of course the stated goal of the majority earlier this year to move these bills one at a time would be my preference, and if Defense is not part of that conference report, it seems to me it's only one bill away from being done the right way. I would have preferred to see it the other way.
I would.
I thank my friend.
Looking backwards at this, I think that my friend is right that there was a pattern that developed with the bill that included the Veterans bill that we didn't like. And so in the Congress that started in 2005, we tried to restructure that so that that would not happen in the future. We were trying to break that pattern, and, in fact, we did. And in 2005, that bill passed individually, as did every other bill.
In 2006, unfortunately, that was not the case, and there was a penalty to be paid for that, and I guess we paid it. But we were trying to break that pattern of coupling veterans benefits with something that was much more controversial than veterans benefits. It was part of at that time Veterans Administration and Housing and Urban Development, and so we took Veterans and put them with the Military Construction so that military families, military personnel, veterans and retirees would all be in a bill that we hoped would be the least controversial of all bills and not be the subject of that packaging to get those most controversial things done. Frankly, I think the 2005 experience showed that we were on the way to achieving that.
My concern on this would be exactly that, that the pattern of using the veterans benefit bill, to couple that with bills that are less popular, and not only appropriations bills, but I can certainly see, even in this Congress, that bill becoming the host for authorizing bills that are not popular, I think is a very unfortunate development and I regret it. I wish that we could have stayed with the pattern that we tried to create in the last Congress and successfully did create in the first year of the last Congress. Again, as we look back on history, this is the first time in 20 years that not a single bill has passed now.
Also, when we coupled bills together in the 10 years I was here, we coupled those bills together to try to get a signature rather than anticipating a veto, and we got those signatures.
I think there is. Well, we'll see. We'll see if that's what happened.
I have a couple more questions, but I would yield on that point.
Well, if we want to try to determine the motives of each other, which is, I suppose, what we do in this place, that's one thing. But you're the one that started that.
What we were trying to do, I'll advance again, was to take the Veterans bill out of the tug of war that always went on over the Housing bill, and that's what we did.
Now, your assertion that that's because we didn't like Housing, I don't agree with that. I do agree with the idea that we thought that the Veterans bill did not need to be needlessly held back by a bill that was assured to always be intensely debated. And that's why we did that. And that's why we passed the bill. And that's why if we would have passed this bill 60 days ago when it came over from the Senate, military families and veterans would have $18.5 million every day that they haven't had the last 32 days now.
On the other issue, I don't have any reason to believe that the President is not for all of those health care issues you talked about. That's not what this veto will be about. I know I'm for advancing all of those, partly because I've benefited from research in some of those.
But I think you said at the first of the year, and you were right when you said it, that the best way to advance these bills is one at a time. Now, I think I'm hearing a different argument than that today. But I agree with your first-of-the-year view of this; and I would hope, after this process, we can get back to that.
Another thing I wanted to ask about, I read in one of the Capitol Hill newspapers this week that the majority continues to look at the possibility of limiting the minority's right, and it has been a right of the minority since 1822, to have the opportunity to have a motion to recommit at the end of the bill.
I will point out, I believe yesterday, on the bill we dealt with yesterday, the first substitute that the minority had been allowed in this entire Congress, the last day of the 10th month of the Congress, we finally get a substitute.
No question, we've had to maximize our use of the motion to recommit because, while we appreciate the amendments we had on the bill today, we haven't had many amendments before today. And while we appreciate the substitute we had yesterday, we had had no substitutes before yesterday.
I'm wondering if the gentleman will want to talk a little bit about any discussions going on, the majority has going on, about limiting the 1822 right of the motion to recommit.
And I would yield.
Well, I would only say my concern on that would be when the majority says ``facilitate the work of the House,'' that may mean to further restrict the ability of the minority; and, of course, we would object strenuously to that.
Another topic that, I don't believe, it may or may not have been mentioned, was the AMT patch topic. Did you mention that as something you expect to come up next week?
I thought maybe you did. Does the gentleman have any more information about that than he has already given?
So that would be the AMT patch?
And the amount of money involved there?
And your intention is for that to be under the PAYGO rule to be paid for.
I think the view of that, if we were debating the bill, which we won't do, I assure you, would be that this kind of tax relief actually produces tax revenue. But in a static scoring model you don't see that revenue.
Do you have any more information about November's schedule? I know next week. You said you anticipated we would work Friday of next week.
I appreciate that information. I'm sure that we would be, at least I'm confident we would be more than happy to work with the majority so that we don't run into a needless last-minute crisis on the 16th in the almost unavoidable circumstance now that we don't have all of the appropriations bills done by then, and I would think the earlier that process starts, the better off we are.
And I would yield.
If I could ask a question in that regard, do you anticipate some changes in the Senate bill so that it comes back here? I was assuming, based on your other information, that if the Senate passed the same bill the House had passed, it would go directly to the President.
We will be glad to continue work on that. And in regard to the failure to provide time on the Senate side, it seems to me that's a very interesting contradiction to our desire to provide time over here to change the bill. I will assure my friend we are working in good faith to try to address the less than a handful of issues, though they are all important, that we think need to be addressed, from who benefits from this program to how you determine your eligibility and legal presence in the country to benefit, to how you work effectively to see that adults are moved off the program. We are more than willing to work on that. We have been trying to work on that all week.
And, of course, our request just a few days ago was the reverse of the problem that now we see is a problem in the Senate, which was give us some time to work this out. We were denied time on this side. Apparently the Senate has also been denied time to work this out. And, once again, I think we have headed toward a needless conclusion to this debate that could have been prevented if we would have all engaged more effectively before we sent the bill to the Senate.
I yield to the gentleman.
I thank the gentleman for that.
And, Mr. Speaker, I will just say we are continuing to be more than willing to be helpful, the minority is, I am individually, to try to solve these problems.
I want to repeat one more time, I think we would have been better off if we had taken these 2 days that we now would have liked to have had before we voted instead of now being at the mercy of the Senate to decide whether they are going to give us time to negotiate with each other or not. But we haven't, and, hopefully, we can continue to work for a good conclusion.
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I thank the gentleman for yielding. Mr. Speaker, this debate must be somewhat confusing for the American public. First of all, almost every one of us stands and says that we want the alternative…
I thank the gentleman for yielding.
Mr. Speaker, this debate must be somewhat confusing for the American public. First of all, almost every one of us stands and says that we want the alternative minimum tax fixed. We want it fixed because of the presumption of the alternative minimum tax, which I support and which I will not vote to repeal unless we pay for it. I want you to know that I speak as the father of three daughters, as the grandfather of three grandchildren, and as the great-grandfather of one great-granddaughter. I have listened to this debate. I am going to speak about this debate, and I am going to refer to history. My friend Mr. Ryan knows what I am going to say because I have said it before, but I believe the American people need to know this.
Let me place it in context. I have served in this body for 26 years. During that time, Republican Presidents have served for 18 of those years. A Democratic President, President Clinton, served for 8 of those years. During the Presidencies of President Reagan, President George Bush and the present President Bush, we have accumulated deficits in America of $4.1 trillion of deficit spending.
Now, there is only one person in America who can stop spending in its tracks. Just one. Not me, not anybody on this floor. We need 217 other people to do that with us. But one person can stop spending in its tracks. And in the 26 years that I have been in the Congress of the United States, no President has had a veto of a spending bill
that spent too much overridden. Not one.
This President has vetoed no spending bills under Republican Congresses. Not one. No matter how much they spent. And, by the way, ladies and gentlemen of this House, they spent at twice the rate of growth that the Democrats under President Clinton spent.
Now, Republicans were in charge of Congress, but they were in charge of everything during the first 6 years of this century. Everything. House, Senate, Presidency.
My friend made the observation that neither side had done too well. I would suggest my side has done a lot better. Because under my side in those 8 years of the Clinton administration, we had a $62.9 billion net surplus after 8 years, and we didn't have to raise the national debt one time in the last 4 years after we got the deficits created under the Reagan administration and the first Bush administration down, from a $292 billion operating deficit when we took over to surpluses during the last 4 years, and a straight line of reduction every one of the first 4 years of the Clinton administration.
Why? Because we Democrats believe in spend and pay. You simply believe in spend and borrow. You believe that it is a politically wise policy to pursue that ``don't tax the voters, tax the children.'' Tax the children. Delay the ramifications of spending until tomorrow and tomorrow and tomorrow, when the children will have to pay the bill, because, after all, they are not voting.
I have heard a lot of wringing of hands about PAYGO. I know you are all waiting to hear me read a quote, so I will read it to you. ``With the other body unable to pass even a budget this year,'' that was referring to a Republican Senate, by the way, ``we were obviously unable to reach an agreement on legislation to extend PAYGO and other budget rules. It is my hope that this can be done next year as part of a normal budget process. I would close by reminding our colleagues and Members that the PAYGO rule contributed to taming of deficits over the past seven years, and it is my hope that a successor to PAYGO can be developed and coupled with caps on discretionary appropriations.'' That quote, of course, comes from Jim Nussle.
As a matter of fact, President Bush's administration also said that they were for PAYGO, until they found out that PAYGO applied to cutting revenues. And because they didn't want to stop buying, I say to my friends on the Republican side of the aisle, and you knew that you would be constrained in buying if PAYGO applied to your tax cuts, which I supported for the middle-class but not for the skewing of taxes that I saw in your proposals, that you would have to stop spending, because you couldn't pay for it. So you jettisoned PAYGO, a premise that was overwhelmingly adopted by Republicans and I voted for in the 1997 Budget Act, because I believe in balancing our budget.
I have served in legislative bodies for almost 40 years, and I have found people who like to vote for spending but don't like to vote for paying. It takes no courage whatsoever, I tell my friends, to take my credit card out of my pocket and put it in there, sign the little slip and think I will never have to pay for it, because, by the way, I will be dead and gone by then and my children will have to pay the debt. That has been referred to by Mr. Portman as an immoral policy, Rob Portman, the former Director of the OMB, a former member of the Ways and Means Committee.
Mr. Speaker, I rise in very, very strong support in favor of this tax cut for millions of Americans. Will there be an offset? There will be. And, as I said, I will not vote to fix the AMT unless we pay for it. Because if we fix the AMT without paying for it, what we will say to people like Steny Hoyer and every Member of this House, maybe we have a conflict of interest, because every Member of this House is going to be affected by this if we don't repeal the AMT, for those of us at this income level.
So maybe we have a conflict of interest. Maybe we want to save ourselves a little money, but we don't want to pay for it, because raising revenues takes political courage. There is no courage whatsoever in plunging our country into debt, spending and not paying. It is, as Rob Portman said, an immoral policy, lacking in courage and lacking in fiscal responsibility.
My friends, we need to pass this bill and give millions of Americans a tax cut and ensure that millions of Americans will not get a tax increase. PAYGO is a policy that demands responsibility.
Many of you voted for the bankruptcy bill, as I did. I was criticized by some because we thought that individuals ought to exercise fiscal responsibility in the managing of their finances. I think corporately as a government we ought to do the same.
Mr. Speaker, let no one be mistaken. This is precisely what this legislation offered by Chairman Rangel was designed to do, give a tax cut to millions of Americans and preclude millions of Americans from paying more, and asking other Americans to pay their fair share so those at the bottom of the rung don't have to pay more to defend our country, to educate our children, to keep our families healthy.
Mr. Speaker, this tax cut will provide 30 million homeowners with property tax relief. It will help 12 million children by expanding the child tax credit. It will help 4.5 million families better afford college with tuition deductions. It will save 3.4 million teachers money with deductions for classroom expenses.
My wife was a teacher. She died 10\1/2\ years ago. She was one of the best people that I have ever met in my life, if not the best. Every year, we would spend a couple of hundred dollars, and we could afford it, maybe even a little more than that, to make sure that her kids in her classroom had things that they needed but were not provided. We are going to give teachers a tax cut to do that. Our children will be served and our teachers will be served.
In short, this bill will extend tax credits and deductions that will benefit a wide array of Americans and the American economy. And, yes, this legislation helps to restore tax fairness and once again demonstrates that this Democratic majority is committed to fiscal responsibility.
Let me restate that figure: 18 years of Republican Presidents, $4.1 trillion of deficit spending. Under Bill Clinton, 8 years, $62.9 billion net surplus. No indebtedness. No indebtedness in the last 4 years.
We are now over $9 trillion in debt. This administration has gone from $5.7 trillion to over $9 trillion. Republicans were in control of everything, and spending escalated at twice the rate it did when Bill Clinton was President.
My friends, this bill is a fair bill. This bill is responsible. This bill gives tax cuts to millions of Americans and asks some few Americans to pay their fair share. Vote for this bill. It is good for America, it is good for our people, it is the right, and as Rob Portman said, the moral thing to do.
Mr. Speaker, I rise today in strong support of H.R. 3996, the Temporary Tax Relief Act of 2007. This bill will bring relief to tens of millions of hardworking American families, including nearly…
Mr. Speaker, I rise today in strong support of H.R. 3996, the Temporary Tax Relief Act of 2007. This bill will bring relief to tens of millions of hardworking American families, including nearly 100,000 in my district alone.
It makes responsible, sensible changes to the tax code to make it more efficient and more equitable, changes that are sound both morally and economically. Most importantly, H.R. 3996 will be the first tax relief bill of this millennium that did not increase the deficit.
This bill would lower the tax burden on 95 percent of the people affected by it--which is about as close to perfect as we're able to get with the tax code. I'd like to commend Chairman Rangel and his staff for their work on this excellent bill, which I am proud to support today.
Mr. Speaker, we are at something of an impasse. The President's budget assumes the revenue next year from a vast expansion of the AMT, and the President has offered no alternative to either eliminate the AMT or patch it, likely in recognition of the immense cost to the treasury. Yet nearly everyone agrees that we must pass some form of AMT relief this year and that we must do it soon. The Congressional Budget Office and Joint Committee on Taxation have spelled out specifically what the cost of a one-year AMT patch would be. It cannot, whatever tooth fairies we might wish to believe in, be accomplished for free.
What we seem to disagree on is how to reconcile these two truths. We don't have many choices, Mr. Speaker, and other Members are correct in pointing out that many of them are difficult. The consequences of choosing wrong, however, are far too drastic for us to avoid confronting the problem head on.
If we are to pass an AMT ``patch,'' we can do one of three things: we can cut benefits in Social Security and Medicare to comply with Pay-Go, we can raise additional revenue to comply with Pay-Go, or we can waive Pay-Go and continue financing tax cuts by increasing the federal deficit and the national debt. That is, we can just irresponsibly pass the buck to our children and grandchildren.
Mr. Speaker, I do not think it would be possible for me to oppose waiving Pay-Go in sufficiently strong terms. As the gentleman from Massachusetts, Mr. Capuano, told us yesterday, this Administration has increased U.S. government debt by an average of $15,644.93 per second since they took office.
Pretending that sexual activity among teenagers does not exist will not reduce the number of new sexually transmitted infections; it will not reduce the number of teenage girls who become pregnant; and it will not reduce the number of abortions performed every year.
I want to thank Chairman Obey for including language in this Conference Report to ensure that programs will not be funded that are medically inaccurate. I hope that in the future, we can continue to work together to ensure that our children receive high quality, science-based, age-appropriate sex education that is medically sound and free from ideological or religious bias. Despite my concerns about this program, Mr. Speaker, I am proud to support this important bill and urge my colleagues to do the same, so that we can get needed funds to these critical programs as soon as possible.
Mr. Speaker, this bill will bring relief to tens of millions of hard-working American families, including nearly 100,000 in my district alone.
It makes the tax code more efficient and more equitable, changes that are sound both morally and economically. Most importantly, H.R. 3996 will be the first tax relief bill of this millennium that did not increase the deficit.
This will would lower the tax burden on 95 percent of the people affected by it--which is about as close to perfect as we're able to get with the tax code. I'd like to commend Chairman Rangel and Mr. Neal and their staff for their work on this excellent bill, which I am proud to support today.
Mr. Speaker, the President's budget assumes the revenue next year from a vast expansion of the AMT, and the President has offered no alternative to either eliminate the AMT or patch it, likely in recognition of the immense cost to the Treasury. Yet nearly everyone agrees that we must pass some form of AMT relief this year, and that we must do it soon. The Congressional Budget Office and Joint Committee on Taxation have spelled out specifically what the cost of a 1-year AMT patch would be. It cannot be accomplished for free.
If we are to pass an AMT ``patch,'' we can do one of three things: we can cut benefits in Social Security and Medicare to comply with PAYGO, we can raise additional revenue to comply with PAYGO, or we can waive PAYGO as the Republican party has done for the last 7 years and continue financing tax cuts by increasing the Federal deficit and the national debt. That is, we can continue to irresponsibly pass the buck to our children and grandchildren.
Mr. Speaker, as the gentleman from Massachusetts, Mr. Capuano, told us yesterday, this administration has increased U.S. Government debt by an average of $15,644.93 per second since they took office.
This money does not exist merely on paper; it is real money, which we are borrowing from countries whose interests are contrary to our own, countries like China that have accumulated sovereign wealth funds at alarming rates over the past 6 years. And we are leaving this legacy of fiscal wreckage to our children, and our children's children, mortgaging away their future at a rate of more than $15,000 per second.
Since 2001, China's accumulation of foreign reserves, mostly U.S. dollars, have increased from $46.6 billion to $1.066 trillion--that is, every new dollar we borrow makes us ever more dependent on China--which has profoundly different strategic aims than we do.
The idea that we should not pay for this AMT fix is unconscionable. The idea that we should sacrifice the futures of our children and our grandchildren in order to have our cake and eat it too, to continue giving enormous tax preferences to the richest of the rich in this country is morally bankrupt and fiscally unsound.
Mr. Speaker, even if we accept that there should be a distinction between the taxation of labor and capital income, income received as payment for the service of investing other people's money is not capital income under even the loosest of possible understandings. The idea that a hedge fund manager earning $500 million a year should be taxed at a lower rate than his secretary, who earns $40,000 a year is preposterous in both moral and economic terms and should embarrass us all.
This bill is about making a choice between what is right and what is easy. I applaud Chairman Rangel for standing firm in the face of overwhelming pressure to do the easy thing, for demanding that we pass a bill which is true to our principles. We were not elected to make easy choices--we were elected to do right by our constituents, their children, and their children's children. I am proud to support this bill today, and I urge my colleagues to do the same.
Mr. Speaker, one of the things I'm going to do today after listening to my friend, Mr. McCrery, is to go back to my office and call Citigroup, that holds my mortgage, and I'm going to apply that…
Mr. Speaker, one of the things I'm going to do today after listening to my friend, Mr. McCrery, is to go back to my office and call Citigroup, that holds my mortgage, and I'm going to apply that logic when I tell them that I'm no longer going to bother paying the principal, because I just want to forget about the bill; that the bill is just gone. And I expect them to say to me, we're going to use the logic that Congress uses when it comes to paying the Nation's bills.
I'm in full support of this legislation, and I think we need to stand up to theology today and address it with fact. Without the extension of these important tax provisions, there's going to be a real impact back home. Ninety-four thousand Massachusetts teachers who took the deduction for out-of-pocket classroom supplies totaling $23 million in expenditures, they're going to lose that deduction.
Without this bill, 121,000 Massachusetts families who took the tuition deduction for higher education costs, totaling $317 million in expenditures, they're going to lose their incentive for higher learning.
If we don't pass this bill, 1,000 businesses in Massachusetts that took the research and development tax credit totaling $10 million, they're going to lose this credit.
We have to pass that bill so that 192 low-income military families in Massachusetts who claimed the earned income tax credit while in the combat zone, totaling $2 million in earnings, are going to keep that credit.
And further, Massachusetts school districts which receive $6.5 million in bond authority for school construction, they're going to lose their assistance without this bill.
And let me speak briefly to the issue of AMT. For a decade and more, I've been at this issue. The Republicans have said to me time and again, you're absolutely right in what you're trying to do. We're quibbling over the solution today. But there's a reality, and the reality is that if we don't do this, 125,684 taxpayers subject to AMT in Massachusetts will increase to, listen to this number, 770,336 people for the 2007 tax year. This means in my district alone 7,000 families to 67,612 will begin to pay AMT if we don't undertake this action today. And half of those 60,000 paying AMT this year will earn between 100 and $200,000. And another third will earn between 75 and $100,000.
This legislation is middle-class tax relief. These are the people that need our help.
I reserve the balance of my time.
Mr. Speaker, I yield 15 seconds to the chairman of the Ways and Means Committee, Mr. Rangel.
Mr. Speaker, at this time I would like to yield 1\1/2\ minutes to the gentleman from California (Mr. Stark).
(Mr. STARK asked and was given permission to revise and extend his remarks.)
Mr. Speaker, at this time I would like to yield 1 minute to the gentleman from Massachusetts, the chairman of the Financial Services Committee, who has done a terrific job in that short tenure (Mr. Frank).
Mr. Speaker, the Bush administration has been there for 7 years, and they have not proposed once the elimination of the alternative minimum tax. In including next year's budget projections, they include the numbers from the alternative minimum tax for revenue.
Mr. Speaker, at this time I would like to yield 1 minute to the gentleman from North Dakota (Mr. Pomeroy).
Mr. Speaker, I ask unanimous consent to enter into the Record a colloquy between myself and Mr. Watt.
Then I will ask the gentleman from North Carolina to remain here and perhaps we can do it face to face.
Mr. Speaker, at this time I would like to yield 1 minute to the gentleman from Connecticut (Mr. Larson).
Mr. Speaker, I was with the ranking member of the Rules Committee yesterday, and he said that everything was fine, the economy was doing great.
General Leave
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on H.R. 3996.
Mr. Speaker, at this time, I would like to recognize the gentleman from Illinois (Mr. Emanuel) for 1 minute.
Let me quickly decipher what my friend the gentleman from New York said. He said, ``Let's borrow the money.''
I yield 1 minute to Mrs. Tubbs Jones, the gentlewoman from Ohio, former District Attorney.
There shouldn't be any confusion, Mr. Speaker, this bill cuts taxes for tens of millions of people.
At this time, I yield 1 minute to the gentleman from Washington State (Mr. McDermott).
(Mr. McDERMOTT asked and was given permission to revise and extend his remarks.)
Mr. Speaker, we appreciate that epiphany, that after 6 years of a Republican Congress and a Republican President, they are blaming spending on the Democratic Party.
Mr. Speaker, I yield 1 minute to the gentleman from Oregon (Mr. Blumenauer), a thoughtful member of the Ways and Means Committee.
Mr. Speaker, 94,000 teachers in Virginia are going to benefit from this proposal today and 133,000 families are going to take advantage of the college tuition deduction in the State of Virginia.
Mr. Speaker, I yield 1 minute to the distinguished gentleman from New Jersey (Mr. Pascrell), a member of the Ways and Means Committee.
(Mr. PASCRELL asked and was given permission to revise and extend his remarks.)
Mr. Speaker, 284,000 teachers in the State of Texas will benefit from the proposal that is before us today.
Mr. Speaker, I yield 1 minute to the gentlewoman from Nevada (Ms. Berkley), another member of the Ways and Means Committee.
Mr. Speaker, 619 businesses in the State of New Jersey will take advantage of the research and development tax credit.
Mr. Speaker, I yield 1 minute to the distinguished gentleman from Maryland (Mr. Van Hollen), a member of the Ways and Means Committee.
Once again, what the gentleman said is we should borrow the money.
Mr. Speaker, I yield 1 minute to the gentleman from Alabama (Mr. Davis), a distinguished member of the Ways and Means Committee.
Mr. Speaker, there are 1,462 businesses in the State of New York who will take advantage of the research and development tax credit that we extend today.
Mr. Speaker, with that, I yield 1 minute to the gentleman from Maryland (Mr. Hoyer), the distinguished majority leader.
Mr. Speaker, we are not surprised that the Wall Street Journal reported 3 weeks ago that the American people, with a two-thirds majority, give Bill Clinton high marks for his Presidency.
With that, I yield 1 minute to the gentleman from Georgia (Mr. Scott).
Mr. Speaker, we hold the same regard for the distinguished minority leader on this side that they hold for Chairman Rangel, as well. But the difference is essentially this: the Republican Party once again proposes to borrow the money to pay for tax relief. We intend to pay for tax relief.
With that, it is an honor for me to recognize the gentlewoman from California, the distinguished Speaker of the House, Ms. Pelosi, for the balance of my time.
Mr. Speaker, pursuant to House Resolution 809, I call up the bill (H.R. 3996) to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes, and ask for its…
Mr. Speaker, pursuant to House Resolution 809, I call up the bill (H.R. 3996) to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes, and ask for its immediate consideration.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker and my colleagues, I hope that this could be considered the National Lobbyist Day for the middle class, because, certainly, this is what we are trying to do.
Let's talk about the issues that we agree on. The alternative minimum tax was a bad idea when it got started in 1969; it's a worse idea now. If the House and Senate and President fail these taxpayers that are being held hostage for a tax that everyone knows is unfair and inequitable and should never have existed, then it would not be a Republican or Democratic issue; it would be that this country let them down. In doing so, we would have violated the trust that we hope that people would have in the tax system. At the end of the day we are committed to eliminate this tax.
My good friend Mr. McCrery and I had agreed early on that the only way you can tackle such a big fiscal problem is through tax reform. So it's clear that we can't do that this year; and so if we do nothing, 23 million hardworking people would be hit with this unfair tax, and we are committed that it's not going to happen. We can talk about that, but I don't think it's necessary.
As far as the extenders are concerned, I really think they speak for themselves. Mr. McCrery and I wish we had enough time to really study each and every one of them as well as other parts of the Code to see whether or not it serves any economic function, but time is not our friend, and so we agreed that we would extend these expiring provisions and review them when we have more time next year. So that's not an issue.
The issue has to be how do you pay for it. This is where we are going to have some major fiscal and political problems. Why? Because the Congressional Budget Office would say that if we did nothing and this unfair tax was not changed, that we would raise $50 billion. That means that even though they may think and hope that we don't do this, they haven't scored that we have to recognize that $50 billion is not going to be there and we, abiding by what we think is fiscally sound provisions in PAYGO, have to recognize that if we do the right thing, we'll be $50 billion short.
What are our options? One, to cut spending by $50 billion. Well, theoretically it may be an option, but politically it's not.
The second thing we could do is raise the revenue. Very interesting, because the major part of the debate if we had time would be if you saw the most outrageous abuse of the tax system where someone was getting preferential treatment and that the only reaction would be how could that happen, and you wanted to close it, take my word for it, to the person that you are closing, what they call an incentive will be considered by them as a tax increase.
Even Secretary Paulson, who wants us to dramatically reduce the corporate rate of taxes, I can't wait to hear how he intends to pay for it, because I know he is going to be talking about unfair advantages that's in the Code, and some Democrat is going to call it a tax increase if he closes the loopholes.
It's really a semantic thing; it's a political thing. But I suggest to you that even if we were not looking at this as a revenue raiser, and you take a look at what we are using, how could you possibly call it a tax increase when we are trying to bring some degree of equity to the system?
It's simple: when people are doing their job, and, I might add, a very good job, in managing other people's money, in creating jobs, in making the economy more prosperous, and making hundreds of millions and billions of dollars
because they have earned it the hard way, creative fiscal management.
And they pay 35 percent in taxes because it's their income, the same way you sell a house, it's your income. You have a law case and they give it to you, it's your income and you pay 35 percent income.
Now, we would like to believe that capital gains taxes means that you're special people, you actually are investing capital. My God, you're taking risks, and so we're going to give you a lower tax rate of 15 percent. But if you find someone who would say that, well, I'm not taking risk but I'm a partnership, and I really think that the way they're paying me, even though it's the same as the competitors are being paid, I have decided that this has been a return on a capital investment. Why shouldn't all of the debate today be on the turning point? When two people are doing the same thing equally as well, and really, being rewarded in a very generous way, why should one group be treated differently than the other group? And if you want to call it a tax increase and bringing equity and fairness to the system and making the field even as it relates to the Tax Code, let's talk about this, because I'll bring some arguments and statements for the people doing the same job and paying 35 percent interest, and they're just as creative, just as good, and they ain't thinking about leaving the business. And so that ends the argument, except for the ones that I'm anxious to hear from my dear friends on the other side of the aisle, because they're not just saying that they're going to stick with their buddies with carried interest. They're saying that we really don't have to deal with this at all. And once I'm convinced that they're right, I'm going to try to do this at home, and that is, we expected $50 billion. You're going to have to live without the $50 billion, but you don't have to cut your expenses by $50 billion, nor do you have to raise the revenue for $50 billion. As a matter of fact, you don't have to do anything. Act like it never happened.
This is not a tax cut. This is preventing a tax increase, so therefore, the money that you expected, the $50 billion, you shouldn't have.
Now, on our side of the aisle, we spell that B-O-R-R-O-W-I-N-G, ``borrowing.'' I know that word is so distasteful to you, but where I got it from was Chairman Greenspan. He said, I supported the Bush tax cuts, but I wanted them to really cut spending. And what did they do?
Mr. Speaker, at this time I ask unanimous consent that I be allowed to yield the balance of my time to the chairman of the committee that has really drafted most of this legislation, Congressman Neal of Massachusetts.
Mr. Speaker, I just hope that the minority leader recognizes that we in the House have a constitutional responsibility to either raise the revenue, notwithstanding what the other body may or may not do, and that should never inhibit us from doing what we consider is the right thing to do, because constitutionally we are right.
Mr. Speaker, I will vote for this bill because of the urgent need to protect middle-income families from a massive tax increase that will hit them if we do not act to adjust the Alternative Minimum…
Mr. Speaker, I will vote for this bill because of the urgent need to protect middle-income families from a massive tax increase that will hit them if we do not act to adjust the Alternative Minimum Tax, or AMT.
In technical terms, the bill would extend for one year AMT relief for nonrefundable personal credits and increase the AMT exemption amount to $66,250 for joint filers and $44,350 for individuals.
In real-world terms, that means it will prevent a tax increase for more than 302,600 Colorado households that otherwise would be required to pay more in Federal income tax when returns are due next year.
In addition, it will let taxpayers who do not itemize deductions take advantage of an additional standard deduction of up to $700 (for couples who file jointly) for State and local real property taxes-- something that will greatly help many thousands of Coloradans affected by those property taxes. And it also will increase the eligibility for the refundable child tax credit.
Further, the bill will extend many important tax-law provisions scheduled to expire this year.
These include an extension of the deductibility of certain tuition and related expenses, which helps many to gain an education, and an extension of the ability of teachers to deduct the money they spend from their own pockets for supplies used in their classrooms.
The bill will help our men and women in uniform and our veterans in several ways, including extension of the ability of those receiving combat pay to count it for purposes of the earned income credit; extension of the special
rules that help veterans qualify for State-operated, tax-exempt mortgage revenue bond programs for access to low-interest mortgages; and the extension of rules that allow reservists called to active duty to make penalty-free withdrawals from their retirement plans if they need to do so.
Other important provisions will allow people to continue to make charitable contributions from their individual retirement accounts, IRAs, without incurring tax penalties and will allow Colorado ranchers and other landowners to benefit from favorable tax treatment of their actions to protect open space through conservation easements.
The bill also will delay implementation of a requirement, passed when our friends on the other side of the aisle were in the majority, that requires local governments (and others) to assume the burden of withholding part of the money going to those under contract to provide goods and services. This requirement is strongly opposed by county commissioners and other local officials across Colorado as well as by many companies that build roads or do other work under contracts with our State and local governments.
In addition, the bill includes provisions to directly address the problems facing many people affected by the problems besetting the housing market. One of these is a permanent repeal of the current law's requirement that people pay income tax on the phantom ``income'' they supposedly receive when they are no longer required to pay on a mortgage because they have lost their homes to foreclosure or they are able to work out arrangements to avoid that result. Another will extend through 2014 the current ability of people to deduct the part of their mortgage payment that pays for mortgage insurance.
The bill also extends provisions that encourage research and development activities that are crucial to our country's economic future. It will allow restaurants and other small businesses to continue to take advantage of a realistic write-off period for improvements to their facilities. And it will retain the current law that encourages restaurants and other companies to donate unused food from their inventories to help feed people who need that assistance.
Mr. Speaker, all these are good provisions, and the bill overall is properly focused on tax relief for middle class families--a goal I strongly support.
But I do have some reservations about how the bill seeks to provide that relief without making our Federal deficit worse.
The bill's authors propose to pay for these provisions with a change in the current law that gives a substantial tax break to some investment fund managers by letting them treat part of their overall compensation as if were a capital gain on an investment. Another is a change to delay further a provision currently scheduled to take in effect next year regarding the rules for allocating certain expenses of companies that operate overseas. And a third is a change in the rules about taxation of deferred compensation.
Since this bill was introduced, there has been considerable debate about these provisions. I am not convinced that these provisions are the best or only way to offset the revenue costs of providing a temporary fix to the AMT--but the bill's opponents have suggested no alternative except to cut unspecified amounts of spending in unspecified parts of the budget or to further add to the ``debt tax'' that has already been imposed on our children (and their children) by the irresponsible policies of the last seven years.
The Senate will have to consider the legislation further, and if it makes changes a conference will have to resolve differences between their version and the bill now before us. So, it is possible that these provisions will be revised.
Mr. Speaker, I must note that I do not believe that it is wise to include in this bill, designed to address the AMT problem and to extend expiring tax-law provisions, such an unrelated matter as a restriction on Internal Revenue Service (IRS) audits of individuals living in the Virgin Islands. I think that if that issue is to be addressed, it should be done separately, perhaps in connection with a review of how IRS audits are conducted in Colorado and other locations as well. I will not oppose the legislation before us on that ground alone, but I think we do a disservice to the public debate on AMT reform by attempting to attach such a provision, and in any event I am not convinced it is wise to interfere with the IRS auditing process.
But, finally, the bottom line is that today we have the opportunity to provide tax relief to hundreds of thousands of middle-class families in Colorado. I think that is something I think the House can and should do without delay, and that is why I am voting for this bill.
I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I rise to speak about the importance of the farm bill. I also wish to express the same deep concern about…
I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I rise to speak about the importance of the farm bill. I also wish to express the same deep concern about what is happening on process in the Senate, as so many of my colleagues and the majority leader have. This is the second week we have been trying to pass a food and energy security bill that is important for every community. The process that has gone on, frankly, since the beginning of the year, is one of delay, slow walking, and filibusters over and over again.
Yesterday, I showed a chart that read ``52 filibusters so far this year.'' Tomorrow we have potentially three more votes to close off filibusters. One relates to funding on the war that is tied to a policy change the majority of Americans want to have happen to move our men and women out of the middle of a civil war, to refocus us instead on the critical areas of counterterrorism, training, support for Americans who remain, those things the majority of Americans want to see happen. We have to stop a filibuster on
that tomorrow morning. We then have two votes potentially on stopping filibusters on the farm bill. So my ``52'' is, as of tomorrow, potentially 55 filibusters this year.
We have never seen the level of filibustering that we have had in the current session of the Senate with our friends on the other side of the aisle.
In spite of the slowdown, in spite of the blocking of efforts to vote on amendments and to get a farm bill done last week, in spite of efforts this week, I am proud to say that yesterday we were able to work together to pass a reauthorization of Head Start. This is something that was done on a bipartisan basis. It will go to the President. We expect him to sign it. It will increase standards for teachers and extend resources so more children can receive Head Start funding. Head Start is so important to prepare children for school, to give them a head start. It is a wonderful program that involves parents being a part of the effort of preschool education. Despite what as of tomorrow will be 55 filibusters this year, we once again have put forward something that is important to the American people--investing in our young children, getting them ready to go to school. The Head Start bill did pass. I am pleased it did.
Concerning the farm bill that is in front of us, we have worked so hard together. We have a bill that came out of committee unanimously, a strong bipartisan effort to not only support traditional agricultural commodities but also to move us in new directions for the future. I am pleased, in addition to traditional farm programs that are supported in Michigan, that we were able to add support for the 50 percent of the crops grown that haven't been under the farm bill; specialty crops, fruits and vegetables are now a part of this farm bill. That is important.
We have also tied that to a partnership to expand nutrition, a significant new program expansion--it is beyond a pilot--the chairman of the committee has let in on fresh fruits and vegetables as snacks in schools, rather than children going to a vending machine and getting soda pop or candy. There are many parts of this farm bill that focus on nutrition. In fact, most people will be surprised to know the majority of the farm bill, over 60 percent, is in fact focused on nutrition. We need to get this done. We need to get this done both for our growers as well as for children, seniors, food banks that receive help, farmers' markets, organic farmers. This is very important.
We also in this farm bill have done something very significant--I notice our chairman from the Finance Committee on the floor who has led us in this, he and our ranking member--and that is creating a permanent disaster relief program as a part of the farm bill. I am very pleased that fruit and vegetable growers will be able to participate. We need to be able to respond quickly when there is a disaster--a flood, a drought, other kinds of disasters.
We also have moved this farm bill more aggressively in the direction of alternative energy, alternative fuels, biofuels. This is important in getting us off gasoline, off oil, when we look at prices continuing to rise every day. It is also a way to create jobs. In Michigan, we are creating hundreds of jobs now, with thousands to come, from ethanol plants and biodiesel plants. As we move to cellulosic ethanol, we will be able to create new opportunities for my sugar beet growers and the folks up north who are involved in timber and wood products, as well as switchgrasses and other areas. This is important. It is time to get this done, alternative energy for the future, addressing our energy needs, supporting our farmers.
I am proud also that American car companies within the next 3 years, by 2012, half of what they produce, half of what they manufacture will be flex-fuel vehicles, ethanol, other flex fuels. We need to get this farm bill done to be able to support that effort.
Rural development is a critical part as well. I have small communities all over Michigan that would not have water and sewer projects if it was not for USDA rural development--another critical part of this bill.
I would simply say we have seen now, since last week, delay after delay after delay on giving us the opportunity to move forward and get this farm bill done. Now is the time to do that. I hope tomorrow we will vote to stop filibustering, we will vote to proceed to a critical bill.
Folks think the farm bill is only about rural communities, but all of us are impacted by every part of this farm bill. We need to get this done. It is time to get this done. I do not want to keep having to change this chart over and over again, although I fear I will, on how many times there is delay, how many times there is filibustering going on.
We have a farm bill in front of us that needs to get done for all of us. It has been done in a truly bipartisan way. It has very broad support. Now is the time to get this done for our American farmers and our families.
I yield the floor.
I thank the gentleman for yielding. Mr. Speaker, I find this debate absolutely incredible. If you pull it up on the Treasury Department's own Web site, the national debt of our Nation this past week…
I thank the gentleman for yielding.
Mr. Speaker, I find this debate absolutely incredible. If you pull it up on the Treasury Department's own Web site, the national debt of our Nation this past week went over $9 trillion.
And the bright dividing line between the parties in the debate today is that our friends on the minority side want to drive that debt even deeper and that our friends on the majority side say enough additional debt for our children.
We either find a way to pay for this AMT fix or 23 million people get a tax increase or we pass the debt on to the children. Now, I am glad about the bipartisan agreement that we should do
something to stop the 23 million from getting the AMT tax hit. But we cannot just run that credit card balance even higher, just lay this debt onto our kids.
It's time we face the music and we begin paying for the costs that we are incurring. We have got to put this budget in order, and we need to start with this bill.
Mr. Speaker, I rise today to support this responsible tax relief package.
The bill before us today:
protects 23 million middle-class tax payers from the Alternative Minimum Tax, including nearly 35,000 North Dakotans.
provides tax relief for millions more American families who want a better life for their families by putting more money in their pockets, and
protects future generations from tax increases by not adding to our national debt.
The president and my colleagues across the aisle say we should not have to pay for this package of tax relief. They are still acting as though they're living in a mythical Alice in Wonderland--in an America where borrowing $9 trillion in debt and running record budget deficits for years doesn't matter.
But deficits and debt do matter because every dollar we borrow places a ``debt tax'' on future generations who will have to pay for the decisions we make today. At $9 trillion, each of our children will be responsible for paying $30,000 of that debt, and that is before interest gets added on.
We crossed that 9 trillion dollar mark in the amount of outstanding public debt owed by this Treasury just earlier this week.
We saw that anxiety over that level of debt can have a short-term impact in the markets on Wednesday when a low level Chinese official suggested that the government may slow
purchasing Treasury bonds. In reaction, the dollar fell sharply and the stock market plummeted by 361 points. That is one day.
A huge persistent debt has greater cost for the economy. So, the moral issue today is passing a fiscally responsible bill that protects future generations by not asking them to finance current tax cuts. Each day the average daily interest payment on the debt adds more than $1 billion to the tab we leave behind.
My colleagues across the aisle would rather we pay for today's tax relief--tomorrow. Would that leave the cost to our children, who might just end up having to repay the Chinese holders of U.S. Treasury Notes with EUROs?
I try to teach my two kids important values. Among those values is teaching them that things worth doing are worth paying for.
That same core principle is behind PAYGO. Not paying for this important tax relief signals high disregard for this basic principle that we teach our kids and that motivated Congress to reinstate PAYGO rules.
With the massive fiscal challenges the Nation faces in coming decades, it is irresponsible to foist the cost of tax relief today on future taxpayers. Today, this Congress again should face up to that challenge and pay the cost now.
Reverse years of failed Republican policies that have mortgaged our grandchildren's future with additional foreign-owned debt.
Let's set an example for our kids--we do not let them eat dessert before they eat all their vegetables. Congress should not rush to dessert either.
I urge my colleagues to responsibly pay for middle-class tax relief.
I also want to express my appreciation to Chairman Rangel of several important provisions in H.R. 3996 that provide millions of American families tax relief and business in our rural communities.
The bill helps 4.5 million taxpayers to meet the cost of paying for their children to get the ticket to a better future--a college education. We extend the tax deduction for the cost of college tuition for another year.
Also this bill extends for one year the current-law provision that allows taxpayers over age 70 and a half to make tax-free distributions from their individual retirement accounts (IRAs) for gifts to charities. In the few short months when senior citizens could use these Charitable IRA rollovers to donate nearly $112 million to help the work of worthy charities it is important that this tool for giving, mostly in small amounts of a few thousand dollars or less, remains available to taxpayers.
The bill extends for one year an important tax credit that allows: short line railroads that serve many of our rural communities to upgrade the track on these important links that get our products to the marketplace.
Unfortunately, fiscal constraint embodied in H.R. 3996 only allowed us to consider extending these expiring tax provisions generally in their current form. We were not able to make these important tax provisions permanent and make needed improvements.
For example, the Public Good IRA Rollover Act (H.R. 1419), which I introduced and which has 90 cosponsors, would broaden the charitable IRA rollover to allow younger retirees to get a lifetime income and provided for charities and to allow distributions to donor-advised funds and would strengthen other aspects of the present-law provision.
I remain committed to the enactment of these improvements and would urge my colleagues to work with me in that regard.
I urge my colleagues to pass this bill.
I thank my chairman for giving me this opportunity to be heard. You know, my friend from New York, I tried to feel what he was saying to me. And it was emotional and everything, but it did not speak…
I thank my chairman for giving me this opportunity to be heard.
You know, my friend from New York, I tried to feel what he was saying to me. And it was emotional and everything, but it did not speak to the issue that we're talking about.
I went to law school, and I wanted to be a civil rights lawyer. I thought that if I was a great civil rights lawyer, I could really help the people of America, the people that live in my community. But I should have been a tax lawyer, because had I been a tax lawyer, then I would have better understood how I could help middle-class families by fixing the AMT. If I had been a tax lawyer, I would have understood how I could help people purchase homes and get a benefit from it. Had I been a tax lawyer, I would have understood how fairness operates in the United States of America through the Tax Code, because by the Tax Code, poor people might have a chance, working people might have a chance.
I say to my colleagues today, vote for this, vote for this bill. It may not be all that we wanted. And if you think about it, if we hadn't spent so many trillions of dollars in Iraq, maybe there would be a pay- for in this legislation.
Mr. Speaker, I am pleased to see that today, the House is taking up tax relief for the 23 million Americans who otherwise would be saddled with the onerous alternative minimum tax. In addition, we are also providing relief for 7.4 million low-income workers by increasing the Earned Income Tax Credit.
Families across America will this weekend sit down at the dinner table take an accounting of their personal finances and balance their checkbook. The Government is charged with balancing the checkbook of the United States. While I enthusiastically support the efforts of private equity and hedge fund managers, I am very aware that service income is just that and should be taxed that way--at ordinary income rates. It is the responsible thing to do because we must not mortgage our future by continuing to borrow from foreign countries such as China.
We are also, Mr. Speaker, enabling more than 6.5 million working families to use the refundable Child Tax Credit. This is allowing more families to remove themselves from the depths of poverty. This legislation is helping Americans help themselves. It is okay to ask people to pull themselves up by their bootstraps, but if they don't have boots, we are asking too much. H.R. 3996, the Temporary Tax Relief Act is sound legislation, progressive tax policy and the right direction for America.
When a member of Congress hails from one of the poorest congressional districts in America as I do, there is a special responsibility to ensure that the interests of constituents are being addressed. That is why I am pleased to see that while we are pursuing a patch for the AMT, we are also increasing the Earned Income Tax Credit for an additional 7.4 million low-income workers.
The alternative minimum tax is an important issue for the American middle class taxpayer who does not get to take advantage of sophisticated tax planning and legal loopholes in the tax code. It is time that we addressed this issue once and for all to relieve the American taxpayer from the agony and pain that arise from having to figure out their taxes twice in order to come up with their tax liability.
It is particularly ironic that a tax that was meant for a few wealthy individuals has become the bane of existence for millions of American taxpayers, who could be affected. Indeed the AMT has become a menace. Over 7,000 hardworking Ohioans in my district had the grim task of filing a return with AMT implications in the 2005 tax year. Those are families with children, healthcare costs, unemployment issues, housing costs and the other money matters with which American taxpayers must cope. Relief is due.
We should consider alternatives to this alternative that might include a complete repeal. Relief is due. ``Taxes are what we pay to live in civilized society,'' but dealing with the AMT has become a bit uncivil.
On the one hand we have people that have to live paycheck-to-paycheck and on the other hand we have partners in partnerships, whether they be real estate or private equity who sippeth from the public trough. I am cognizant that many of these partners work diligently to bring companies to market and to grease the wheels of capitalism from which we all benefit, from East Cleveland to East L.A. to East Harlem. As I mentioned after the introduction of Representative Levin's H.R. 2834, we must applaud the efforts of American capitalists and the strides that they make in fostering growth in our economy and, the global economy to wit. Yet we must also tax compensation income as compensation income and capital gains thusly.
We must also be mindful of the effect that our tax policy has on potential reinvestment in low-income and minority communities. It is important to note that women and minorities are often the last to the table and just when they are getting ready to participate in the large- scale ``financial festival'' that is private equity and hedge funds, etc, the rules appear to be changing. It is incumbent upon members of the aforementioned parties that fair and equitable tax policy should not be confused with the opening up of capital markets and the extension of new opportunity.
The tenets of sound tax policy begin with the notions of equity, efficiency and simplicity. Relying on that traditional framework I am sure that we have come to a rational consensus.
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I thank the gentleman for yielding. Mr. Speaker, we're setting a precedent here. This is new policy that we are embarking on here. And let me tell you what this means. We have always in the past done…
I thank the gentleman for yielding.
Mr. Speaker, we're setting a precedent here. This is new policy that we are embarking on here. And let me tell you what this means. We have always in the past done what we call a patch for the AMT. We have always said let's not let the alternative minimum tax hit all these new taxpayers. Let's prevent that tax increase from happening. Well, what is now happening is the majority is saying, instead of having this tax increase, let's have some other tax increase. That's what their PAYGO rule does.
PAYGO does not mean let's live within our means, but let's expand government's growth, let's raise taxes. And 73 percent of all of the pay-fors for the bills that have come to this Congress this year have been paid for with either budget gimmicks or tax increases. That's right. Of all the wish lists of spending that the majority has brought to the floor, 73 percent of those things were either budget gimmicks or tax increases.
This is a tax increase. What this is, is saying you cannot come to the floor of this Congress and prevent this new future tax increase; so we're going to make another tax increase. If you want to stop this tax increase, you've got to raise taxes. You just simply can't stop the tax increase.
Now, why are we doing this? You've got to remember, Mr. Speaker, that the AMT in 1969, when it was written, was to stop 155 multimillionaires from escaping taxes. That was the idea. No one, no one ever intended it to be what it is today. It was a mistake. No one planned the alternative minimum tax to tax 23 million people in the middle class this year. No one said let's tax 30 million people in 3 years, but that's what this does. The majority's budget includes it. The majority's budget plans for it. And more important than that, Mr. Speaker, the majority is saying we may not want the alternative minimum tax, but we want that tax revenue. And that is the dangerous precedent that is being set here.
This chart shows you where the majority is trying to head with taxes in America on families and businesses and entrepreneurs. The blue line shows you our average. For the last 40 years, the Federal Government has had to tax about 18.3 percent of our economy to run the Federal Government. We have had good economic growth. We've been the world's leading economic superpower. We have been the world's superpower. And we have done this by taxing our economy at about 18.3 percent. What the majority is trying to do is take us to an all new high.
There are only three times in our Nation's history where we have ever exceeded taxing our Federal economy by 20 percent. Two of those were during World War II. And the majority wants not only to tax us at 20 percent; they want us to go up to 21 percent and then on up to 24 percent with this tax plan. This is a down payment on the majority's planned and intended and budgeted-for $3.5 trillion tax increase over the next 10 years.
And here is what is wrong with that: not only is it morally wrong to take more and more money out of people's paychecks, by taking more of their freedom and sending it to Washington, but what is really wrong is that it lowers our standard of living. And that is what is at issue here.
For the last 15 years, we have watched Europe go down this dangerous path. If you take a look at the majority's plan to bring us to this ever-higher level of taxation, add the State government, and we are on our way to taxing 35 percent of GDP. That is where the countries of Europe are.
And what did Europe achieve over the last 15 years? Their per capita of GDP, our main measurement of standard of living, is a quarter less than ours. Their standard of living is 25 percent less than the American standard of living. Their unemployment rate averages 9 percent; ours is half that.
So if we want to go down the road of stagnation, of high unemployment, of a lower standard of living, vote for this bill. Put us on this path.
I yield to the gentleman from California.
That is exactly the point, Mr. Speaker.
At a time when Europe is telling us don't follow us down this path, look at the unemployment, look at the welfare dependency. We have got to get out of this.
We are following them. We're going into the hole they've dug for themselves that they are trying to get out of. That is the majority's plan. That's a dangerous plan. They are saying you can't even bring a bill to the floor unless it raises taxes. That's what PAYGO means. That's wrong. This is the down payment on a $3.5 trillion tax increase on every American income tax payer. That's wrong.
Mr. Speaker, this is a difference between our two parties. This is a difference between our philosophies. We believe the genius of America is the individual, the family, the entrepreneur, not government, not Washington, not elites here trying to spend your hard-earned tax dollars. That is the difference. We believe we should keep government lean and we should keep government doing what it should be doing and not ever growing its role because when we do that, we sap the strength of the American entrepreneur, of our economy.
We need to give our children the gift that our parents gave us, and that is a higher standard of living. And we are at risk of severing that legacy, Mr. Speaker.
Let me thank my colleague from Louisiana for yielding. Let me say with all the gratitude I have, I love the chairman of the Ways and Means Committee. He knows I do. I think he and the gentleman from…
Let me thank my colleague from Louisiana for yielding.
Let me say with all the gratitude I have, I love the chairman of the Ways and Means Committee. He knows I do. I think he and the gentleman from Louisiana, the ranking Republican on the committee, do a marvelous job together. But as much as I love our chairman, there is one thing about his chairmanship that we have a big disagreement over, and that is the issue of raising taxes.
So far this year we have had $100 billion of new tax increases that have been passed by this House. Thankfully, none of them have become law. And, hopefully, none of them will become law. This is $81 billion in another tax increase. This is a warmup for the $3.5 trillion tax increase that is coming that was introduced this last week. And so, Mr. Rangel, as much as I love you and think the world of you, when it comes to the issue of taxes, I am opposed.
I came to Washington because I thought government was too big, it spent too much, and took too much out of the pockets of the American people. So I don't vote for tax increases. I think it is wrong. If you look at what has happened in our economy over the last 4 years, think about this: we cut tax rates in 2001, we cut tax rates in 2003. And what has happened in the last 4 years, Federal revenues, total revenues to the Federal Government have increased at over 10 percent per year in each of the last 4 years. As a matter of fact, it is over 11 percent in each of the last 4 years. This year we expect Federal revenues to rise another 7 or 8 percent.
So anybody who believes that we have a revenue problem I think is mistaken. We have a spending problem, and we will not stand up and take on the spending challenges that we have. We all know we have to step up and do it, we just can't quite find the courage to get it done.
What is even more irritating about the bill that is on the floor today is that it is a temporary tax patch to prevent a tax increase from going into effect for 1 year, paid for by a permanent tax increase. I am sure that the chairman of the committee would rather not do it this way, but that's what this bill does. All we are doing again is putting a permanent tax increase into law.
Now this law and this bill that we are debating is never going to become law. It is never going to become law because the Senate has made it pretty clear they are not going to do this bill this way. They are not going to have this tax increase in this bill. The White House has made it clear that they are not going to sign a bill that raises taxes.
So here we are playing political games once again and running out the clock. Running out the clock on whom? Running out the clock on the IRS and running out the clock on those 50 million Americans who are going to get a refund next year because, as we all know, this bill will probably not be done until Christmas. And the confusion that is going to reign next January, February, and March as people are trying to fill out their taxes, not knowing whether the alternative minimum tax is going to apply to them, is going to be confusion enough.
And it gets worse because what is going to happen is that the refunds that Americans, 50 million of them, are going to expect, are going to show up 2 or 3 months later than what they expect. And at a time when our economy is slowing and people are trying to hold onto their homes, a delay in their refund is going to put a real crimp on American families.
Now why are we having this big disagreement? This whole issue of PAYGO, how is it that we are going to extend the current tax rates, the current tax system for another year, and yet we have to have an $81 billion tax increase to pay for it?
The tax system we have today is going to be the same tax system we have next year, and yet we have to find some way under these crazy rules to pay for it.
Now, this is nothing more than a tax increase. For those who believe bigger government and higher taxes and believe government is the answer to virtually everything, I can understand why you want to raise taxes. But I don't believe the American people want their taxes increased.
At the end of the day what I am really confused about is if the Senate is not going to have this tax increase, and the White House is not going to sign it and it is not going to become law, why do you want to take your Members and walk them out on this plank only so it can be sawed off behind them? I wouldn't do that to my Members; I would hope you wouldn't do it to your Members.
American middle-class families are already under the gun. They are paying higher energy costs and higher health care costs, higher gasoline prices at a time when their incomes are not rising. The last thing they need is another tax increase from Washington, DC.
I would hope my colleagues would join me in voting ``no'' on this bill, making it clear to the American people that we understand the pain that they are dealing with and we should be here to help them, not to hurt them with higher taxes.
Mr. Speaker, I rise today in strong support of H.R. 3996, the Temporary Tax Relief Act of 2007, introduced by my distinguished colleague from New York, Representative Charles Rangel. I would like to…
Mr. Speaker, I rise today in strong support of H.R. 3996, the Temporary Tax Relief Act of 2007, introduced by my distinguished colleague from New York, Representative Charles Rangel. I would like to thank Chairman Rangel for his extraordinary leadership on the Ways and Means Committee and for introducing this important legislation that promotes tax fairness and fiscal responsibility, a new fiscal direction that the American people have demanded and deserve.
Mr. Speaker, the Bush administration has not done an adequate job in allocating this country's resources. However, this Congress remains committed to providing a fiscal new direction for the American people. This important legislation will protect some 23 million Americans from the Alternative Minimum Tax and will extend tax credits to those who need it most, our Nation's students, teachers, children and homeowners. The Alternative Minimum Tax is currently riddled with loopholes, and this legislation is a fiscally responsible alternative to the practice of borrowing tens of billions of dollars each year, in which the GOP has engaged. It closes the legislative loophole that has allowed a privileged few exceptions at the expense of other Americans.
As Chair of the Congressional Children's Caucus, I particularly welcome this legislation for the assistance it will provide to our Nation's children. Today's bill will increase eligibility for the child tax credit, consequently helping an additional 12 million children in low-income families. This bill will lower the eligibility threshold in 2008 to $8,500. The National Women's Law Center recently released a statement detailing the organization's sincere support for this legislation, commenting that ``For a single mother working fulltime in a minimum wage job, the bill would mean a difference between a child tax credit of just $35 and a credit of $568.'' We must work to ensure that all of our Nation's children are provided for, and I feel this legislation is an important step toward reaching this crucial goal.
In addition, Mr. Speaker, this legislation will benefit our Nation's teachers and students. It will help 3.4 million teachers by allowing them to save money through deductions for classroom expenses. It will further ensure that the future leaders of America will receive the education they deserve, by helping 4.5 million families afford college through tuition deductions. It will help our Nation's families by providing 30 million homeowners with property tax relief and benefit approximately 11 million families through State and local sales tax reduction. Mr. Speaker, these benefits cannot be ignored and this legislation would help those who truly deserve it.
Furthermore, this fiscally-responsible bill will not cost American taxpayers any additional money. The Alternate Minimum Tax was established in 1969, and it has since then been used to exempt an exceptionally wealthy few from paying their share of this Nation's taxes. Instead of costing America additional funds to mend this antiquated tax, or borrowing heavily and exponentially increasing the national debt as my Republican colleagues have done, this legislation seeks to restore tax fairness. Instead of merely circumscribing the problem and providing a ``quick fix,'' this legislation will close tax loopholes that have persisted in allowing an extremely wealthy privileged few to pay a lower tax rate on their income than the billions of hard-working Americans who are just trying to get by. This legislation protects our future generations by not asking them to pay for the proposed tax cuts.
This legislation goes beyond simply ensuring that future generations will not be forced to finance tax reductions today. This legislation will actually help the American economy grow. It will extend the R&D tax credit to promote innovation and high-paying jobs that make America one the world's leaders in innovation and technological progress. It will also ensure long-term economic growth by adhering to the ``pay-as- you-go'' budget rules that helped produce the record budget surpluses and robust economy of the 1990s by mandating no new deficit spending.
Mr. Speaker, the American people elected this Congress because they wanted to see a new direction and a meaningful change. This legislation does precisely that and helps the most deserving American people while causing our economy to grow and breaking our reliance on deficit spending. It will ease the burden felt by millions of middle-class families, through tax cuts, while helping our economy grow without increasing the national debt. The benefits of the Temporary Tax Relief Act will be felt immediately by the 23 million middle-class families, who will be saved from paying higher taxes in April. It also closes unfair tax loopholes, requiring Wall Street millionaires to pay their share of taxes.
I strongly urge my colleagues to join me in supporting this extremely important legislation.
I thank the gentleman for his leadership on the Ways and Means Committee. I commend the distinguished chairman of the Ways and Means Committee, and respect the leadership also of the distinguished…
I thank the gentleman for his leadership on the Ways and Means Committee. I commend the distinguished chairman of the Ways and Means Committee, and respect the leadership also of the distinguished ranking member of that committee.
Thank you, Mr. Rangel, for your leadership in bringing this important legislation to the floor. It enables us as Members of Congress to plant a flag for fiscal responsibility, to plant a flag for the middle class in our country, and to plant a flag for competitiveness, to keep America number one.
Mr. Speaker, this legislation is important because it provides long overdue middle-class tax relief, preventing a tax increase that will fall upon the middle class come this next year. The bill is about tax fairness; it is about fiscal responsibility; and, again, it is about keeping America competitive.
When we talk about fiscal responsibility, unfortunately, it always seems necessary, after listening to my Republican colleagues, to set the record straight.
The Democratic Party is the party of fiscal responsibility. When President Clinton was President, his four final budgets were in surplus. He left office with our budget on a trajectory of $5.6 trillion in surplus. Sadly, the Bush administration reversed that taking us to over $3 trillion in deficit, a swing. Now we are at a swing of about $10 trillion, a swing that is greater than anyone has ever seen in history in terms of fiscal irresponsibility.
And what did the Congressional Budget Office under the Republican
leadership say was the leading cause for that? Tax cuts for the wealthy. Don't blame it on the war; don't blame it on anything other than what it really was: tax cuts for the wealthy.
And so today we see a change. Tax cuts for the wealthy under the Bush administration and a Republican Congress paid for by the middle class. Today we reverse that: tax cuts for the middle class, paid for by the wealthiest people in our country.
And as we give this tax break, who is getting it? Think of it, 23 million middle-class families are protected from higher taxes due to the alternative minimum tax. Thirty million homeowners will receive property tax relief. Twelve million children will benefit from the expanded child tax credit, and 4.5 million families will get help affording college education. This is in addition to our earlier investment of the largest expansion of college affordability since the GI Bill in 1944. Thousands of our men and women in uniform will receive tax relief under the earned income tax credit. They were prohibited from qualifying for that because our Republican colleagues would not disregard combat pay in that consideration.
So fiscal responsibility, tax cuts for the middle class, and competitiveness for our country. This weekend as we go into observing Veterans Day, we all know the great debt of gratitude we owe our veterans for their service to our country, their sacrifice, their patriotism and the sacrifices they and their families are willing to make.
What veterans have done over the generations is to protect our democracy. Essential to the success of a democracy, though, is a thriving middle class, in our country and in countries throughout the world, a thriving middle class. And this legislation is in furtherance of supporting that middle class and therefore supporting our democracy.
In keeping with our pay-as-you-go rules with no new deficit spending, this legislation will ensure that our children will not inherit a legacy of debt. In terms of competitiveness, this legislation extends the R&D tax credit and new markets tax credits, among other things; but I mention those two because they are directly related to our Innovation Agenda, our commitment to competitiveness to keep America number one.
So, again: fiscal responsibility, favoring the middle class, keeping America competitive and number one. Democrats are committed to putting middle-class families first. The choice is simple: tax relief for millions of middle-class families or protecting tax loopholes, the Wall Street loophole, that allows a privileged few to pay a lower rate than America's teachers, firefighters, nurses, doctors, police, and our men and women in uniform fighting in Iraq and Afghanistan. It is about the people who are the backbone of America.
The choice is a simple one. Today we Democrats say join us in voting in favor of America's middle class.
I urge the passage of this legislation and again commend the distinguished chairman and distinguished Chair of the subcommittee, Mr. Neal, for their leadership.
I am proud of the courage that my colleagues have shown to protect our middle class and to do so in a fiscally sound way and in a way that, again, keeps America competitive, honoring the service of our men and women in uniform, to build a future worthy of their sacrifice.
Madam Speaker, I stayed at home due to an ongoing medical condition of a family member. As a result, I missed a number of votes. Had I been present, I would have voted the following: ``Aye'' on…
Madam Speaker, I stayed at home due to an ongoing medical condition of a family member. As a result, I missed a number of votes. Had I been present, I would have voted the following:
``Aye'' on Closing Portions of the Conference Report Making appropriations for the Department of Defense for the fiscal year ending September 30, 2008 (rollcall No. 1034)
``Aye'' on a Motion to Suspend the Rules and Pass, as Amended National Heroes Credit Protection Act (rollcall No. 1035)
``Aye'' on a Motion to Suspend the Rules and Agree to Recognizing the contributions of Native American veterans and calling upon the President to issue a proclamation urging the people of the United States to observe a day in honor of Native American veterans. (rollcall No. 1036)
``Nay'' on a Motion to Table a resolution raising a question of the privileges of the House. (rollcall No. 1037)
``Nay'' on ordering the previous question on a resolution raising a question of the privileges of the House. (rollcall No. 1038)
``Nay'' on a resolution raising a question of the privileges of the House. (rollcall No. 1039)
``Aye'' on Passage, Objections of the President Not Withstanding, of the Water Resources Development Act (rollcall No. 1040)
``Aye'' on Motion to Suspend the Rules and Agree, as Amended, to Expressing the sense of Congress that Congress and the President should increase basic pay for members of the Armed Forces. (rollcall No. 1041)
``Aye'' on Motion to Suspend the Rules and Agree, as Amended, to Heroes Earnings Assistance and Relief Tax Act (rollcall No. 1042)
``Nay'' on Motion to Suspend the Rules and Agree, as Amended, to Kids in Disasters Wellbeing, Safety, and Health Act of 2007 (rollcall No. 1043)
``Nay'' on Will the House now consider the resolution providing for consideration of the conference report to accompany the bill (H.R. 3043) making appropriations for the Departments of Labor, Health and Human Services, and Education and related agencies. (rollcall No. 1044)
``Aye'' on Motion to Instruct Conferees on the Improving Head Start Act (rollcall No. 1045)
``Aye'' on motion to suspend the rules and agree, as amended, to Congratulating Nicolas Sarkozy on his election to the presidency of France. (rollcall No. 1046)
``Nay'' on Ordering the Previous Question Providing for consideration of the conference report to accompany the bill (H.R. 3043) making appropriations for the Departments of Labor, Health and Human Services, and Education and related agencies. (rollcall No. 1047)
``Nay'' on Agreeing to the Resolution Providing for consideration of the conference report to accompany the bill (H.R. 3043) making appropriations for the Departments of Labor, Health and Human Services, and Education and related agencies. (rollcall No. 1048)
``Aye'' on Motion to Adjourn (rollcall No. 1049)
``Nay'' on Agreeing to the Conference Report Making appropriations for the Department of Labor, Health and Human Services, and Education, and related agencies for fiscal year ending September 30, 2008, and for other purposes (rollcall No. 1050)
``Aye'' on Motion to Adjourn (rollcall No. 1051)
``Nay'' on Ordering the Previous Question Providing for consideration of H.R. 3685, to prohibit employment discrimination on the basis of sexual orientation. (rollcall No. 1052)
``Nay'' on Agreeing to the Resolution providing for consideration of H.R. 3685, to prohibit employment discrimination on the basis of sexual orientation. (rollcall No. 1053)
``Aye'' on Agreeing to the Amendment of Rep. George Miller (rollcall No. 1054)
``Aye'' on Agreeing to the Amendment of Rep. Mark Souder (rollcall No. 1055)
``Aye'' on Motion to Recommit with Instructions the Employment Non- Discrimination Act (ENDA) (rollcall No. 1056)
``Nay'' on Passage of the Employment Non-Discrimination Act (ENDA) (rollcall No. 1057)
``Aye'' on motion to suspend the rules and agree, as amended, to recognizing the close relationship between the United States and the Republic of San Marino. (rollcall No. 1058)
``Aye'' on motion to Instruct Conferees on Departments of Commerce and Justice, and Science, and Related Agencies Appropriations for FY 2008 (rollcall No. 1076)
``Nay'' on Ordering the Previous Question for Providing for the consideration of H.R. 3996, Temporary Tax Relief Act (rollcall No. 1077)
``Nay'' on Agreeing to the Resolution providing for the consideration of H.R. 3996, Temporary Tax Relief Act (rollcall No. 1078)
``Nay'' on Approving the Journal (rollcall No. 1079)
``Aye'' on Motion to Adjourn (rollcall No. 1080)
``Nay'' on Passage of the Temporary Tax Relief Act of 2007 (rollcall No. 1081)
I thank the gentleman for yielding. It's Friday. We're about to go home. What have we done this week? Well, we've seen earmarks for golf courses air-dropped into the Defense appropriations conference…
I thank the gentleman for yielding.
It's Friday. We're about to go home. What have we done this week? Well, we've seen earmarks for golf courses air-dropped into the Defense appropriations conference report. The Woodstock Hippie Museum is now back in play for Federal dollars. Is there any dispute that Congress has earned its 11 percent approval rating.
Today's bridge to nowhere take us to Albany, New York where lawmakers of that State's legislature will enjoy a per diem write-off for days that they are not working in their State capital.
I say to my friend from Washington, imagine if you were an IRS tax compliance officer, probably with an approval rating higher than Congress, and this was the scenario presented to you. A hypothetical State, we'll call it State Y, begins its legislative session in early January and adjourns its legislative calendar at the end of June. Nothing unusual about that. But this particular State legislature extends its session, declares itself to be in session for the remainder of the year, even though no legislative business is conducted. The question before the IRS is, should those lawmakers be entitled to a $150 a day per diem for days that they are not in their State capital?
The IRS ruled, correctly in my view, that they should not be entitled to this special tax break.
Well, notwithstanding that, in this bill, tucked away, is a provision that basically says that this per diem is allowed for all 365 days. And for those of you that are quickly doing the math on the back of your envelope, $150 plus a day equals $55,000 a year. Now, who foots that bill? Taxpayers from Missouri, taxpayers from the State of Washington, taxpayers from Massachusetts.
Now, I will give credit, I see my friend from Oregon is here, who, in committee, voted with us, as well as the gentleman from Texas (Mr. Doggett) that this was an inappropriate provision. I applaud the gentlemen for that.
The IRS in its tax policy and priority guidance, in other words, the red flags that the IRS really wanted to take a look at was, in fact, this specific provision. The IRS had raised a red flag. But because of the powerful chairman, I see him on the floor, my good friend from New York, the powerful chairman of the Ways and Means Committee, and the powerful chairman of the Rules Committee, who coincidentally happen to hail from the State in question, instead of a red flag by the IRS, they now have to wave a white flag. And again, taxpayers across the country are on the hook.
I would just say this, and I say this somewhat tongue in cheek.
When we get to the larger debate about the alternative minimum tax, I think one thing that all of us agree upon, of course, is that with the intent of that tax we have gone far afield. Unfortunately, I suspect we are going to have a lot of finger-pointing and partisanship and Republicans didn't do this and didn't pay attention or whatever. I would simply point out that facts are stubborn things in the fact that in 1969 I think the party in control during that session of Congress creating the tax was then the Democratic majority, and I seem to recall that the Republican Congress sent to a Democratic President a bill that would have completely, finally, permanently repealed the alternative minimum tax; and, unfortunately, the Democratic President vetoed that bill. So I think there is enough blame to go around if that's why you're coming to the floor to assign blame.
But the AMT, as has been pointed out, was originally created by the then-majority to hit about 150-plus wealthy families. This particular provision inserted not an extended, expiring provision, but a brand-new provision, but this brand new provision helps 150 legislators. Of this rifle shot, former chairman of the Ways and Means Committee Rostenkowski would most certainly be proud.
I urge a ``no'' vote on the rule.
Mr. Speaker, I thank my friend from Massachusetts for yielding. And to my good friend from Missouri with whom I serve on the Ways and Means Committee, I would hope that as this process moves forward,…
Mr. Speaker, I thank my friend from Massachusetts for yielding.
And to my good friend from Missouri with whom I serve on the Ways and Means Committee, I would hope that as this process moves forward, we can get together and have an honest discussion of what needs to be offset, what should be extended, and how we are going to provide tax relief to 23 million Americans who would otherwise get caught up in the creeping alternative minimum tax.
And that's why today I rise in support of the rule and the underlying bill, and I commend the chairman of the
Ways and Means Committee, Mr. Rangel, for helping us bring forward a bill that is not only fiscally sound but morally responsible.
There are some elements of common agreement. We all here agree that we want to stop the AMT from hitting 23 million more Americans, 56,000 in my congressional district alone in Wisconsin. The big difference is we pay for it; they don't. We did, as we promised the American people we would do when we became the majority this year, reinstitute pay-as- you-go budgeting rules, something that was in place in the 1990s that gave us 4 years of budget surpluses. We are paying down the national debt rather than adding to it.
But with the expiration of pay-as-you-go budgeting, we've had the fastest and largest accumulation of national debt in our Nation's history under their watch, under their economic plan: Over 3 trillion new dollars added to the national debt, and by the time this President leaves office, it will be 4 trillion. We went over 9 trillion in accumulated debt this week for the first time in our Nation's history, and there are consequences.
Let's make no mistake about this debate today. This bill will be paid for. The question is, is this generation going to have the moral responsibility to pay for it, or are we going to stick it to our children and grandchildren with more deficit financing? They are borrow and spend; we are pay-as-you-go.
And I don't know how many of my colleagues noticed this week, but the dollar went into a free fall. And the main reason that the dollar went into a free fall is because there was a rumor on the market that the Chinese are going to start unloading their high dollar reserves and start buying euros. And the only tools we could possibly have to counter that was in hoping another Chinese official would step up and say, no, that's not true, it's just a rumor. Fortunately, they did; otherwise the Federal Reserve would have to tighten the money supply to prop up the dollar, and we know the consequences to economic activity if that happens.
This is the economic dilemma that they have put us in by saddling us with huge debt. And they can talk all they want about percentage of GDP, but as long as more deficit is being accumulated, China will remain the number one purchaser of our debt today. And that is wrong for the future economic growth of our Nation, and it's especially wrong for our children.
So the question is, do we adhere to pay-as-you-go budgeting? We can have an honest discussion of what appropriate offsets should be in order to pay for the tax relief for 23 million families. But what shouldn't be on the table and what shouldn't be debated today is more deficit financing, which is the easiest thing to do. I'll be curious to see what type of substitute they want to offer, what their plan is, because it has got to be under pay-as-you-go budgeting. And we will see if there are some areas of common agreement with that. But what shouldn't be debated and what shouldn't be open for consideration is pay-as-you-go budgeting so we don't leave a legacy of debt to our children and grandchildren.
I encourage my colleagues to support the rule and the underlying bill.
I appreciate the gentleman from Pasco, Washington, for yielding me the time. Mr. Speaker, in response to our good friends on the other side, this economy is the greatest economy we have ever had, 130…
I appreciate the gentleman from Pasco, Washington, for yielding me the time.
Mr. Speaker, in response to our good friends on the other side, this economy is the greatest economy we have ever had, 130 straight months of economic growth.
I am proud of what we have done. I am proud of what the Republican Party did by cutting taxes. I am proud of what the Republican Party did by making sure this country came back to work. I am proud of the Republican Party for doing the things that President Bush has led us to do.
I know what the Democratic Party is all about. They are all about making sure that we will raise taxes, that we will have more rules and regulations and that we will make sure that we cut off the ability that America has to be competitive with the world. That's what this debate is also about.
I rise with great regret to report to the American people that once again, as I have been forced to do on multiple occasions over the past few months and really during this entire year, to see the Democrat leadership bringing legislation to the House floor that stacks the deck in favor of Big Labor bosses at the American taxpayers' expense to the tune of $2.2 billion, to be exact.
Last night the Democrat Rules Committee voted along party lines to prevent me, a member of the committee, from having the opportunity to raise government revenue while reducing the size of our government by striking a provision unrelated to fixing the AMT. However, it was in the legislation that is before us in the House today.
I find it ironic that as this Congress works to protect American taxpayers from the AMT, a tax that they would pay but were never meant to pay, that the Democrats would include in this bill a provision preventing the IRS from effectively collecting other delinquent taxes, taxes that people were meant to pay but haven't.
In 2004, Congress gave the IRS the ability to utilize the best practices and advantages created by the private sector to address its growing backlog of unpaid debt.
Today, it is estimated that $345 billion of these taxes, unpaid taxes, exist, meaning that every single year the average taxpayer who plays by the rules must pay an average or an extra $2,700 to cover taxes not paid by others.
This new program, which began as a small pilot program that continued to grow and continued to succeed, is estimated to bring in $2.2 billion in the first 10 years alone. Under this agreement, the IRS would get the first 25 cents of every dollar for them to hire new collections professionals, a provision that will have positive compounded effects by helping to bring in even greater amounts of uncollected revenue to the government in the future.
This program, even in its beginning stages and despite numerous attempts by the Democrat majority to kill it before it can succeed, has been a huge success, bringing in over $30 million of uncollected taxes. It has received a 98 percent rating from the IRS for regulatory and procedural accuracy, as well as 100 percent rating for professionalism.
I wish that I could say that I was surprised by the Democrat leadership by allowing politics to triumph over policy or fair procedure. Unfortunately, this is precisely what we have come to expect from the new broken-promises Democrat majority.
I encourage all of my colleagues to vote against this tax increase and this attempt to stack the deck in favor of labor union bosses.
I am opposed to this rule. I am opposed to the underlying legislation.
I thank my good friend and colleague from Massachusetts for yielding. Mr. Speaker, I rise today in strong support of the rule and the Temporary Tax Relief Act of 2007. I applaud Chairman Rangel and…
I thank my good friend and colleague from Massachusetts for yielding.
Mr. Speaker, I rise today in strong support of the rule and the Temporary Tax Relief Act of 2007.
I applaud Chairman Rangel and the House leadership for providing a broad-based tax relief package in a way that promotes fiscal responsibility by complying with pay-as-you-go rules adopted by the House at the beginning of this Congress.
To be honest though, I'm a bit baffled by the comments from some of my colleagues suggesting that they oppose paying for the $50 billion AMT portion of this bill and would rather add it to the national debt, pushing that debt on to our children and our children's children.
Mr. Speaker, it was that sort of fiscal irresponsible behavior that allowed the previous Republican Congresses to erase the budgetary surplus that existed in 1999 and skyrocketed the national debt by more than $1.3 trillion in the course of 6 years.
While I may not agree with 100 percent of all the so-called pay-fors in this bill, I strongly believe that we in Congress must balance our own books just as all taxpayers do with their own finances.
H.R. 3996 contains many important tax cuts for both businesses and individual taxpayers. Far and away, the most important of these would save an estimated 21 million Americans from paying the AMT. In the district I represent in upstate New York, this bill will save over 36,000 people from having to pay higher taxes, nearly 6,000 of whom make less than $75,000 a year and have never had to pay the AMT before. That, Mr. Speaker, is middle-class tax relief.
H.R. 3996 also includes an extension of the research and development tax credit that allows companies a tax credit for a portion of their R&D expenditures. Extending R&D credit is vital to ensuring that America remains on the cutting edge of innovation and keeps our companies competitive.
American companies rely on this credit and upon its continuing to adequately plan their long-term research projects. I support this 1- year extension to provide continuity, and I will continue to work with leaders on the committee and in the body to seek a permanent extension that would eliminate concerns over expirations or lapses.
As I said earlier, I'm not in total agreement with all the revenue raising measures contained in H.R. 3996. I do have some reservations about the so-called ``carried interest'' provisions, especially as it relates to real estate partnerships. Specifically, I'm concerned that reclassification as income of carried interests paid to managers of real estate partnerships may create a disincentive for general partners to manage partnerships that seek to develop higher risk projects in areas that need development or redevelopment.
In spite of these reservations, I will vote for this rule and H.R. 3996. I will continue to work with my colleagues to address these concerns, and I'm confident that together we can find an appropriate and fiscally responsible way of ensuring that development projects in areas that depend on them will continue to attract necessary investment.
I believe we cannot let the perfect be the enemy of the good. The Temporary Tax Relief Act of 2007 is a good bill that brings much-needed tax relief to both America's middle-class families and our businesses, and I'm especially proud that we are doing it in a fiscally responsible way, following the PAYGO provisions adopted by this House in the same way that every household in America does.
I would like to thank the distinguished Member from Washington. Mr. Speaker, unfortunately, I have to rise in strong opposition to this rule. I wouldn't normally speak out against a rule, but I think…
I would like to thank the distinguished Member from Washington.
Mr. Speaker, unfortunately, I have to rise in strong opposition to this rule. I wouldn't normally speak out against a rule, but I think these are unique circumstances and they're highlighted by the comments of one of my colleagues on the other side of the aisle who accused Republicans of holding hostages. That's really an extraordinary statement under the circumstances.
After all, it was House Democrats who conspired to preserve the AMT in 1999. It's House Democrats who had talked broadly about repealing the AMT this year. It is House Democrats that passed a budget that used the revenue from applying the AMT to 23 million mostly middle-class taxpayers. And it is, after all, House Democrats who have come forward today with a placebo that doesn't do what they originally said that they were going to do.
I have offered before the Rules Committee and in the Ways and Means Committee an amendment that would have directly addressed the Democrats' promise. Yesterday, an amendment was offered in the Committee on Rules and dismissed out of hand that, by defeating today's rule, may yet be preserved to fulfill the promise of the Democrats to get rid of the AMT. My amendment would have sunset the AMT by a date certain. It would have fully repealed the individual alternative minimum tax. And any vote against this rule, Mr. Speaker, is a vote against an opportunity to ultimately and permanently eliminate the AMT.
The amendment is very simple. The AMT would be repealed and never seen again after 2018. That's far enough in the future that we should be able to plan around it.
As Congress continues to wrestle with the ridiculous notion of how to pay for eliminating a tax that we never intended, this amendment allows us to set a firm horizon on which the AMT will be eliminated and require that our budgets no longer be built on the quicksand of AMT revenue.
And the amendment is fully PAYGO compliant, so there's no reason not to have allowed this amendment to be debated if the majority is, in fact, serious about ensuring that the AMT is eliminated.
Unfortunately, the bottom line is that the majority, in fact, believes that they need the revenue, and they want to continue to do things like they do in today's bill, which is pass permanent tax increases in order to fund temporary tax relief. If the majority, in fact, believes that it will find a way to repeal the AMT before 2018, then this amendment should be allowable. Nothing in this amendment would prevent the Congress from taking up a plan to get rid of the AMT sooner than 2018.
What this amendment does do, though, is let the taxpayer know that the AMT will be history.
As I said, we missed the chance to do that in 1999 because of the position that the other side took. And this amendment would have given Members of this body an up-or-down vote on whether or not to support the repeal of the AMT.
Perhaps this is a true indication of the majority's intent to take this tax monster, harness it, and put it to work to allow with PAYGO rules that every year we churn the Tax Code to raise taxes ever higher. I think the AMT has got to go and that's why I'm offering this amendment if allowed.
I urge the defeat of the rule.
Mr. Speaker, I rise today to voice my strong support for the Temporary Tax Relief Act, H.R. 3996. This comprehensive legislation will provide fiscally responsible tax relief for hard- working,…
Mr. Speaker, I rise today to voice my strong support for the Temporary Tax Relief Act, H.R. 3996. This comprehensive legislation will provide fiscally responsible tax relief for hard- working, middle-class Americans, help stimulate our Nation's small businesses and provide financial support to public servants nationwide.
The Temporary Tax Relief Act represents a new direction in tax policy that will offer assistance to thousands of Rhode Island middle-class families. I am particularly pleased that this legislation includes a 1- year patch to keep millions of hard-working, middle-class Americans outside the ever-widening net of the alternative minimum tax, AMT. Congress first enacted the AMT in 1969 to ensure that 155 wealthy taxpayers paid their fair share of the Federal income tax, but because they neglected to index the tax for inflation, it has since become outdated and unfair. If left unfixed, this year over 23 million Americans--and 75,000 Rhode Islanders--will be forced to pay nearly $2,000 in additional taxes.
The bill before us will also expand the refundable child tax credit by reducing the minimum income eligibility level from $11,000 to $8,500, thereby allowing more Rhode Island families to take advantage of this important credit. In addition, this legislation will help stem the rising cost of higher education by extending the above-the-line tax deduction for qualified education expenses up to $4,000. H.R. 3996 also provides much-needed tax relief to homeowners who do not itemize their deductions by permitting married couples to deduct up to $500, and single taxpayers to deduct up to $250, in property taxes, in addition to their standard deductions.
It's not just middle-class taxpayers who will reap the benefits of this bill. The Temporary Tax Relief Act contains a number of provisions that will help stimulate our Nation's small businesses, including a 1- year extension of the Research and Development, R&D, tax credit, which will keep American companies competitive and spur businesses to invest in the future and create jobs. Also included is a provision that will grant small businesses a tax incentive for committing to invest in local community development.
Finally, H.R. 3996 directs well-deserved financial assistance to our Nation's public servants. Under this legislation, more than 3 million teachers will be able to deduct out-of-pocket expenses, including books and other school supplies, for their classrooms.
I am also proud to support a provision to provide tax relief for thousands of American troops in combat under the Earned Income Tax Credit.
Perhaps most importantly, this measure is fully paid for and will not add a penny to our national debt. We made a commitment to the American people to abide by pay-as-you-go rules so that our children and grandchildren will not bear the cost of the decisions we make. Today we reaffirm our commitment to fiscal responsibility, while maintaining our promise to helping middle-class families and small businesses nationwide. I would like to thank Chairman Rangel for his leadership in crafting a balanced, responsible and urgently needed bill, and I urge my colleagues to join me in supporting this important legislation.
Bill Text
7 versions available
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3996 Enrolled Bill (ENR)]
H.R.3996
One Hundred Tenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Thursday,
the fourth day of January, two thousand and seven
An Act
To amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Tax Increase Prevention Act of
2007''.
SEC. 2. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION
AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) of the Internal
Revenue Code of 1986 (relating to exemption amount) is amended--
(1) by striking ``($62,550 in the case of taxable years
beginning in 2006)'' in subparagraph (A) and inserting ``($66,250
in the case of taxable years beginning in 2007)'', and
(2) by striking ``($42,500 in the case of taxable years
beginning in 2006)'' in subparagraph (B) and inserting ``($44,350
in the case of taxable years beginning in 2007)''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
SEC. 3. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE
PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) of the Internal
Revenue Code of 1986 (relating to special rule for taxable years 2000
through 2006) is amended--
(1) by striking ``or 2006'' and inserting ``2006, or 2007'',
and
(2) by striking ``2006'' in the heading thereof and inserting
``2007''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.