Economic Growth and Jobs Protection Act of 2011

Mr. President, today I am introducing the Economic Growth and Jobs Protection Act of 2011. This legislation would repeal the 3.8 percent surtax on investment income that was included in the Health Care Reconciliation Act of 2010 (P.L. 111-152, signed into law by the President last year. I am pleased that Senators Crapo, Rubio, Hutchison, and Burr are cosponsors of this legislation.

We know that taxpayers will likely face the largest tax increase in history when the 2001 and 2003 tax relief acts expire at the end of 2013. If Congress does nothing, the highest tax rate for individuals will rise from 35 percent to just under 40 percent; taxpayers in the lowest bracket will see a 50 percent tax increase, from 10 percent to 15 percent; the marriage penalty will increase; the child credit will be cut in half; and taxes on capital gains and dividends will increase. In other words, every taxpayer will pay higher taxes to Washington.

But while taxpayers may be aware of these expiring provisions, many are likely not fully aware of another unpleasant surprise that will arrive on the first day of 2013. The Health Care Reconciliation Act that was jammed through the Senate along partisan lines includes a 3.8 percent surtax on the dividends, rents, and interest earned by certain taxpayers. Enacting this permanent tax hike was a mistake then and is a mistake now.

The Institute for Research on the Economics of Taxation--a nonprofit economic policy research and educational organization recently told the Senate Finance Committee that the 3.8 percent surtax would reduce capital formation, which would lower productivity and wages and that a 3.8 percent surtax would lower GDP by about 0.9 percent and would actually result in lower revenue coming into the government's coffers.

Simply put, increasing taxes on investment income is a job killer and increases uncertainty at a time that the national unemployment is more than 9 percent. In fact, the top tax rate on capital gains will eventually be 23.8 percent as the rate bounces back to 20 percent from 15 percent in 2013. And dividends taxes would more than double to more than 43 percent.

We should not pile more taxes on the backs of working families and job creators. This will not help create jobs and will not make the tax code more pro-growth. We know the key to job creation is to grow the economy and allow small businesses to flourish, invest and create jobs.

In fact, according to the Federal Reserve Bank of Boston, we will need several years of very strong growth to reach 5 percent unemployment. For example, to reach 5 percent unemployment by 2015 the economy will need to grow 4.2 percent a year. This is just one reason that during the health care debate I offered a motion that would have directed the Senate Finance Committee to report the bill back without the 3.8 percent tax on the investment income. Although my attempt to strip out this job-killing tax fell short, I want to take this opportunity to note that six of my colleagues on the other side of the aisle supported my motion.

Not only will the Economic Growth and Jobs Protection Act of 2011 protect jobs and the investment security of taxpayers, it will also make sure that Congress restores one of the President's campaign promises. On September 12, 2008, then-candidate Obama promised the American people that, ``Everyone in America--everyone--will pay lower taxes than they would under the rates Bill Clinton had in the 1990s.'' But when combined with the President's budget proposal, this additional tax on investment will raise taxes on many Americans higher than they were under the rates President Clinton had in the 1990s.

I ask that my colleagues support this legislation that will repeal this job-killing tax on small business investment and will protect economic growth, jobs and the retirement savings of taxpayers. Mr. President, I ask unanimous consent that the text of the bill and a letter of support be printed in the Record.

Mr. President, today I am introducing the Economic Growth and Jobs Protection Act of 2011. This legislation would repeal the 3.8 percent surtax on investment income that was included in the Health Care Reconciliation Act of 2010 (P.L. 111-152, signed into law by the President last year. I am pleased that Senators Crapo, Rubio, Hutchison, and Burr are cosponsors of this legislation.

We know that taxpayers will likely face the largest tax increase in history when the 2001 and 2003 tax relief acts expire at the end of 2013. If Congress does nothing, the highest tax rate for individuals will rise from 35 percent to just under 40 percent; taxpayers in the lowest bracket will see a 50 percent tax increase, from 10 percent to 15 percent; the marriage penalty will increase; the child credit will be cut in half; and taxes on capital gains and dividends will increase. In other words, every taxpayer will pay higher taxes to Washington.

But while taxpayers may be aware of these expiring provisions, many are likely not fully aware of another unpleasant surprise that will arrive on the first day of 2013. The Health Care Reconciliation Act that was jammed through the Senate along partisan lines includes a 3.8 percent surtax on the dividends, rents, and interest earned by certain taxpayers. Enacting this permanent tax hike was a mistake then and is a mistake now.

The Institute for Research on the Economics of Taxation--a nonprofit economic policy research and educational organization recently told the Senate Finance Committee that the 3.8 percent surtax would reduce capital formation, which would lower productivity and wages and that a 3.8 percent surtax would lower GDP by about 0.9 percent and would actually result in lower revenue coming into the government's coffers.

Simply put, increasing taxes on investment income is a job killer and increases uncertainty at a time that the national unemployment is more than 9 percent. In fact, the top tax rate on capital gains will eventually be 23.8 percent as the rate bounces back to 20 percent from 15 percent in 2013. And dividends taxes would more than double to more than 43 percent.

We should not pile more taxes on the backs of working families and job creators. This will not help create jobs and will not make the tax code more pro-growth. We know the key to job creation is to grow the economy and allow small businesses to flourish, invest and create jobs.

In fact, according to the Federal Reserve Bank of Boston, we will need several years of very strong growth to reach 5 percent unemployment. For example, to reach 5 percent unemployment by 2015 the economy will need to grow 4.2 percent a year. This is just one reason that during the health care debate I offered a motion that would have directed the Senate Finance Committee to report the bill back without the 3.8 percent tax on the investment income. Although my attempt to strip out this job-killing tax fell short, I want to take this opportunity to note that six of my colleagues on the other side of the aisle supported my motion.

Not only will the Economic Growth and Jobs Protection Act of 2011 protect jobs and the investment security of taxpayers, it will also make sure that Congress restores one of the President's campaign promises. On September 12, 2008, then-candidate Obama promised the American people that, ``Everyone in America--everyone--will pay lower taxes than they would under the rates Bill Clinton had in the 1990s.'' But when combined with the President's budget proposal, this additional tax on investment will raise taxes on many Americans higher than they were under the rates President Clinton had in the 1990s.

I ask that my colleagues support this legislation that will repeal this job-killing tax on small business investment and will protect economic growth, jobs and the retirement savings of taxpayers. Mr. President, I ask unanimous consent that the text of the bill and a letter of support be printed in the Record.

Mr. President, today I am introducing the Minnesota Chippewa Tribe Judgment Fund Distribution Act with my friend and colleague from Minnesota, Senator Klobuchar. This legislation will finally allow for the distribution of funds owed to the Minnesota Chippewa Tribe. Before I talk about our legislation, I want to first thank my colleague in the House, Representative Peterson of Minnesota, for his leadership on this issue and for the tremendous work he put into crafting this bill.

It has been a long road to get to this point. The Minnesota Chippewa Tribe first filed complaints before the Indian Claims Commission in 1948. It took all the way until 1999 before their claims were settled. For over 60 years, members of the Minnesota Chippewa Tribe have been waiting for these funds. It's time to get this done.

In 1999, the United States Court of Federal Claims awarded $20 million to the Minnesota Chippewa Tribe. This money is to compensate tribal members for the improper taking and sale of land and timber under the Nelson Act of 1889. The Federal Government owes the Minnesota Chippewa Tribe this money. In fact, in 1999, the $20 million owed to the tribe was transferred to the Department of the Interior and deposited in a trust fund account, where it has been collecting one percent interest. But tribal members in my home State of Minnesota have never received a dime. That is because, before any money can go to the tribe, Congress must pass legislation detailing how to allocate the funds between the 6 bands that make up the Minnesota Chippewa Tribe.

Today, Senator Klobuchar and I are introducing legislation to do just that. Our bill will provide $300 to every tribal member. While this might not seem like a lot of money, I want to remind my colleagues that Native Americans represent one of the poorest segments of Minnesota's population. On the White Earth reservation, where one in five members live under the poverty line, a check for $1,200 for a family of four would make a real difference. This is money that the 40,000 enrolled members of the Minnesota Chippewa Tribe could be using right now to put tires on their car or fix a leaking roof or buy new shoes for their children.

Our bill allocates the remaining funds equally to each of the six bands that make up the Minnesota Chippewa Tribe. That is approximately $15 million or $2.5 million per band. This funding is desperately needed. It will allow the bands to provide for the basic needs for their people by investing in economic development, health care, housing, and education.

There is one band, the Leech Lake Band of Ojibwe, that does not agree with this distribution plan. I am sympathetic to their concerns, and I sincerely hoped that a consensus agreement could have been reached that would have satisfied all those involved. But, in the end, I believe we must respect the decision of the tribe.

The bill we are introducing today reflects the distribution agreed upon by the Minnesota Chippewa Tribal Executive Committee. This is a democratic body comprised of two elected officials from each of the six bands. Under the tribal constitution, the Executive Committee is the governing body of the tribe. After years of disagreement, the Tribal Excusive Committee has agreed on an allocation formula. I deeply respect tribal sovereignty and therefore believe we must respect their decision.

I also worry that any further delay will only cause hardship for individual tribal members. The thousands of tribal members across Minnesota cannot afford to wait another decade. It is time for Congress to act to allow for the distribution of the funds owed to the Minnesota Chippewa Tribe.

I urge my colleagues to support this legislation and send it to the President's desk to be signed into law as soon as possible.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, authorized under P.L. 105-312 in 1998 and reauthorized by P.L. 107-308 in 2002, the Chesapeake Bay Gateways and Watertrails Network helps several million visitors and residents find, enjoy, and learn about the special places and stories of the Chesapeake and its watershed. Today I am introducing legislation to reauthorize this successful program.

For visitors and residents, the Gateways are the ``Chesapeake connection.'' The Network members provide an experience of such high quality that their visitors will indeed connect to the Chesapeake emotionally as well as intellectually, and thus to its conservation.

The Chesapeake Bay is a national treasure. The Chesapeake ranks as the largest of America's 130 estuaries and one of the Nation's largest and longest fresh water and estuarine systems. The Atlantic Ocean delivers half the bay's 18 trillion gallons of water and the other half flows through over 150 major rivers and streams draining 64,000 square miles within 6 States and the District of Columbia. The Chesapeake watershed is among the most significant cultural, natural and historic assets of our Nation.

The Chesapeake is enormous and vastly diverse--how could you possibly experience the whole story in any one place? Better to connect and use the scores of existing public places to collaborate on presenting the many chapters and tales of the bay story. Visitors and residents go to more places for more experiences, all through a coordinated Gateways Network.

Beyond simply coordinating the Network, publishing a map and guides, and providing standard exhibits at all Gateways, the National Park Service has helped Gateways with matching grants and expertise for 200 projects with a total value of more than $12 million. This is a great deal for the bay--it helps network members tell the Chesapeake story better and inspires people to care for this National Treasure--and it is a good deal for the Park Service. In this legislation, we cap the Gateways authorization at just $2 million annually. It serves all 150+ Gateways and their 10 million visitors. No other National Park can provide such a dramatic ratio of public dollars spent to number of visitors served.

With the National Park Service's expertise and support, Gateways have made significant progress in their mission to tell the bay's stories to their millions of members and visitors, extend access to the bay and its watershed, and develop a conservation awareness and ethic. It is time to reauthorize the Chesapeake Gateways and Watertrails program. It is my hope that the Congress will act quickly to adopt this legislation.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.