Mr. Speaker, I yield myself such time as I may consume. (Mr. McGOVERN asked and was given permission to revise and extend his remarks.) Mr. Speaker, I want to thank the gentleman from Georgia, my…
Mr. Speaker, I yield myself such time as I may consume.
(Mr. McGOVERN asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I want to thank the gentleman from Georgia, my friend Mr. Woodall, for yielding me the customary 30 minutes.
Mr. Speaker, I rise in very strong opposition to this rule. Today, House Republicans are pushing a job-killing budget so they can use fast-track reconciliation procedures to steamroll through their billionaires-first tax plan.
Mr. Speaker, we are supposed to be the people's House. We ought to have the people's budget, a budget that helps the millions of Americans who sent us here to Congress, not a budget that helps only a few, the well-connected and the well-off.
I disagree with Mr. Woodall. This is not a time to celebrate. This is a terrible budget. This budget will devastate America's investments in good
paying jobs, it threatens growing wages and the bedrock promise of a secure and healthy retirement. It makes cuts across the board that would hurt seniors, children, veterans, and the hardworking people across this country who are already struggling to get by.
Why are Republicans doing this?
Well, it is all in the name of fast-tracking the Ryan-McConnell tax plan, which explodes the deficit by $1.5 trillion, and then provides multitrillion-dollar tax breaks for the wealthiest Americans. We Democrats think this is a horrible idea.
What is particularly astonishing is the blatant hypocrisy of Republican leaders pushing this deficit-busting budget. Republicans are always telling us how much they care about the deficit, but when it comes to giving their beloved tax cuts to their billionaire friends, they suddenly develop a convenient case of amnesia. They say: What deficit? Don't worry. These tax breaks will pay for themselves.
Mr. Speaker, this is absurd. In this Republican-controlled Congress, we can now say with certainty that the deficit and debt no longer matter. All of the talk by Republicans, well, they didn't really mean it.
If Republicans really cared about the deficit, they would in no way imaginable bring up a bill, a budget that is as reckless as this to the floor. This kind of shows what they truly believe, where their values are, where their priorities are.
How many times have Republicans talked about the importance of a balanced budget?
The Speaker called for a deficit-neutral tax plan in his Better Way agenda. Well, I guess this debt-creating budget is the ``Somewhat Less Better Way'' plan.
Your budget chair took to Twitter just 2 weeks ago to chastise Senate Republicans for not pursuing a balanced budget, yet now she is fully in support of their budget, which adds $1.5 trillion to the deficit with no way to pay for it.
Now, let me spell this out for my Republican friends. This is not a balanced budget. Clearly, Republicans desperately need a refresher on basic arithmetic.
Mr. Speaker, there is absolutely nothing balanced about hitting middle class families and millions of hardworking Americans with cuts while giving billionaires and corporations tax cuts they simply do not need. Billionaires aren't knocking down our door asking for more tax breaks. This is disgusting. This is shameful.
The Republican budget destroys middle class jobs by stealing hundreds of billions of dollars from investments in infrastructure, job training, advanced energy, and research and development. It devastates Medicare and Medicaid. It demands deep cuts to safety net programs like SNAP. I am talking about food for hungry children and hardworking families. It goes after college affordability. It makes college more expensive for working families. It undercuts key supports for veterans and their families.
What is particularly offensive is that Republicans are using this terrible budget as a means of passing tax cuts for the wealthy as quickly as possible regardless of the consequences and without bipartisan support.
The tax reform framework supported by Republicans in Congress will raise taxes on the middle class and cut taxes for the wealthy. Under the Republican plan, the top 1 percent would receive 80 percent of all tax benefits. Let me repeat that. The top 1 percent would receive 80 percent of all tax benefits. Give me a break.
Those making more than $900,000 a year would receive an average tax cut of more than $200,000. Think about that. A person working full time in minimum wage makes $290 a week before taxes. And under this plan, people who make over $432 an hour, $900,000 a year, would get a massive tax break. Corporations will receive a tax cut totaling $2 trillion.
Who loses in this plan, Mr. Speaker?
According to the nonpartisan Tax Policy Center, one in three middle class taxpayers earning between $50,000 and $150,000 would actually receive a tax increase, and nearly half of middle class families with kids will see their taxes go up.
Can you believe that: raising taxes on the middle class to pay for tax cuts for billionaires and corporations?
This is insane.
To make matters worse, Republicans are planning to steamroll their tax plan through Congress. We are reading in the press that we might see actual text of their plan next week and maybe a markup and floor consideration a week or two after that.
Really? Don't you think we owe it to our constituents to have thoughtful, open debate on this legislation which will impact every single one of them?
I guess not.
Democrats agree that our tax system needs to be updated, to be more fair, and especially to be more fair to the middle class and to working families. We have always been willing to engage in real bipartisan tax reform, but the Republican tax framework is not tax reform. It is just one more GOP multitrillion-dollar giveaway to the wealthiest at the expense of the middle class and working Americans.
In all my time in Congress, I have never seen a budget and a tax plan that harms so many just to benefit so few. I urge my colleagues to vote against this rule, to vote against this cruel Republican budget, and to oppose a tax plan that puts wealthy corporations and the top 1 percent ahead of hardworking middle class families.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, boy, I don't even know where to begin after that.
My good friend, the gentleman from Georgia, made reference to the Tax Policy Center, and I have the report from the Tax Policy Center here. In fact, it is their analysis that was the basis for that chart that I held during my opening remarks, which said that the top 1 percent would receive 80 percent of the tax breaks based on the Republican framework.
Mr. Speaker, I include in the Record excerpts from the Tax Policy Center report.
[From the Urban Institute & Brookings Institution Tax Policy Center
Staff, Sept. 29, 2017]
A Preliminary Analysis of the Unified Framework
Abstract
The Tax Policy Center has produced preliminary estimates of
the potential impact of proposals included in the ``Unified
Framework for Fixing Our Broken Tax Code.'' We find they
would reduce federal revenue by $2.4 trillion over ten years
and $3.2 trillion over the second decade (not including any
dynamic feedback). In 2018, all income groups would see their
average taxes fall, but some taxpayers in each group would
face tax increases. Those with the very highest incomes would
receive the biggest tax cuts. The tax cuts are smaller as a
percentage of income in 2027, and taxpayers in the 80th to
95th income percentiles would, on average, experience a tax
increase.
The findings and conclusions contained within are those of
the authors and do not necessarily reflect positions or
policies of the Urban Institute, the Brookings Institution or
their funders.
Alternative Ways of Presenting Change in Distribution of Tax Burdens
by expanded cash income percentile
Expanded cash income percentile, Percent change in after-
tax income, Share of total federal tax change (%), Average
federal tax change, Dollars, Percent, Share of federal taxes,
Change (% points), Under the proposal (%).
Panel A: 2018.
Lowest quintile, 0.5, 1.1, -60, -10.4, 0.0, 0.9; Second
quintile, 0.9, 4.1, -290, -9.3, 0.0, 3.8; Middle quintile,
1.2, 8.2, -660, -7.2, 0.2, 10.1; Fourth quintile, 1.2, 11.6,
-1,110, -5.5, 0.6, 18.7; Top quintile, 3.3, 74.5, -8,470,
-9.6, -0.7, 66.5; All, 2.1, 100.0, -1,570, -8.6, 0.0, 100.0.
Addendum.
80-90, 0.8, 5.1, -1,140, -3.1, 0.9, 15.1; 90-95, 0.7, 3.3,
-1,500, -2.6, 0.7, 11.4; 95-99, 2.3, 12.8, -7,620, -6.9, 0.3,
16.4; Top 1 percent, 8.5, 53.3, -129,030, -17.6, -2.6, 23.5;
Top 0.1 percent, 10.2, 30.3, -722,510, -20.4, -1.7, 11.1.
Panel B: 2027.
Lowest quintile, 0.2, 0.8, -50, -5.4, 0.0, 1.0; Second
quintile, 0.5, 3.0, -230, -5.0, 0.1, 4.1; Middle quintile,
0.5, 4.9, -420, -3.4, 0.4, 10.2; Fourth quintile, 0.4, 4.3,
-450, -1.7, 0.9, 17.3; Top quintile, 3.0, 86.6, -10,610,
-8.5, -1.3, 67.4; All, 1.7, 100.0, -1,690, -6.7, 0.0, 100.0.
Addendum.
80-90, -0.4, -3.5, 820, 1.8, 1.2, 14.4; 90-95, -0.3, -1.5,
760, 1.1, 0.8, 10.3; 95-99, 1.8, 11.9, -7,640, -5.3, 0.2,
15.4; Top 1 percent, 8.7, 79.7, -207,060, -17.4, -3.5, 27.2;
Top 0.1 percent, 9.7, 39.6, -1,022,120, -19.0, -1.8, 12.2.
Source: Urban-Brookings Tax Policy Center Microsimulation
Model (version 0217-1)
The full report can be found at: http:// www.taxpolicycenter.org/sites/default/files/publication/ 144971/a preliminary analysis of the unified framework 0.pdf
Mr. Speaker, where did I get this figure about adding to the deficit by $1.5 trillion? Did I just make that up?
I will tell the gentleman where I got it from. It is basically the Republican report in the Senate on the budget. Let me read from their report here.
It says: ``This title includes two reconciliation instructions to the Senate committees. The first would allow the Finance Committee to reduce revenues and change outlays to increase the deficit by not more than $1.5 trillion over the next 10 years.''
These are the words of Republicans in the Senate.
The gentleman wants to know why we are talking about the tax plan. It is because we are presented here with a budget that essentially fast tracks a tax plan. He is right, we don't have all the details yet because it is being negotiated and written in some back room somewhere in this building. I wish I knew where it was so we could maybe try to find out some more details. But what we do know is the framework that the Republicans have put forward, and that is the basis for the analysis that economist after economist have stated that this budget basically is a giveaway to the wealthiest individuals in this country, and it is not somehow a break for the middle class. It is the exact opposite.
This is a gift for billionaires and millionaires, and it does nothing for working families. That is why this is all relevant. This budget puts in place procedures for the Republicans to fast track a tax bill that they are now writing in some back room somewhere that nobody will see probably until the last minute, and basically it will be rushed through here, and it is a big giveaway to the wealthiest individuals in this country. I just wanted to clarify that for the Record.
Mr. Speaker, let me say that Republican plans for tax reform would also eliminate the State and local tax deduction, called SALT. This deduction prevents millions of middle class families from being taxed twice on the same income by deducting already-paid State and local taxes from their Federal income tax.
Half the people hit by this tax hike would be middle class families earning a household income of less than $100,000, and local communities will also feel that pain.
Repealing the SALT deduction, which would effectively make State and local taxes more costly for taxpayers, would put pressure on local governments to lower taxes.
The bipartisan National Governors Association said in a September 22 letter that the SALT deduction, ``has contributed to the stability of State revenues that are essential for providing public services.'' These services include healthcare, police and fire departments, and schools.
Mr. Speaker, I include in the Record the letter from the National Governors Association.
National Governors Association,
Washington, DC, September 22, 2017.
Re Tax Reform (State and Local Tax Deduction and Municipal
Bonds).
Hon. Mitch McConnell,
Majority Leader, U.S. Senate,
Washington, DC.
Hon. Chuck Schumer,
Minority Leader, U.S. Senate,
Washington, DC.
Hon. Paul Ryan,
Speaker, House of Representatives,
Washington, DC.
Hon. Nancy Pelosi,
Minority Leader, House of Representatives,
Washington, DC.
Hon. Orrin Hatch,
Chairman, Committee on Finance, U.S. Senate,
Washington, DC.
Hon. Ron Wyden,
Ranking Member, Committee on Finance, U.S. Senate,
Washington, DC.
Hon. Kevin Brady,
Chairman, Committee on Ways & Means, House of
Representatives, Washington, DC.
Hon. Richard Neal,
Ranking Member, Committee on Ways & Means, U.S. Senate,
Washington, DC.
Dear Majority Leader McConnell, Minority Leader Schumer,
Speaker Ryan, Minority Leader Pelosi, Chairman Hatch, Ranking
Member Wyden, Chairman Brady, and Ranking Member Neal: The
nation's governors appreciate congressional efforts to reform
and improve federal tax policy. Federal and state tax systems
are complex and often interconnected. Therefore, as Congress
considers reforms, we urge you to maintain the balance
between state and federal tax systems by preserving the
income exclusion for municipal bond interest and the
deductibility for state and local taxes.
The financing engine that drives U.S. infrastructure is the
$3.8 trillion municipal bond market. Changes to federal laws
and regulations should not increase issuance costs to states
for municipal bonds or diminish investor demand for them. If
federal changes make issuing municipal bonds cost-prohibitive
for states and local governments, then fewer projects could
be funded, taxes could rise, fewer jobs created, and economic
growth will suffer.
Governors also believe that no federal law or regulation
should preempt, limit, or interfere with the sovereign rights
of states. A mark of sovereignty includes the ability to
develop and operate revenue and tax systems. Deductibility of
state and local taxes has contributed to the stability of
state revenues that are essential for providing public
services. We encourage you to avoid changes to the tax code
that would undermine the ability of state and local
governments to meet the needs of the citizens whom we all
serve.
Eliminating state and local tax deductibility, moreover,
exposes a higher share of an itemizing taxpayer's income to
federal taxation because it adds back mandatory payments of
state and local taxes already paid, as taxable income.
Federal tax reform requires an intergovernmental
partnership because decisions at the federal level will
affect state and local governments profoundly. We look
forward to working with Congress on bipartisan tax reform to
maintain balance between our systems and modernize the
federal tax system to meet the needs of our citizens.
Sincerely,
Gov. Brian Sandoval,
NGA Chair.
Gov. Steve Bullock,
NGA Vice Chair.
Mr. Speaker, I want to ask Members to vote to defeat the previous question; and if we do, I will offer an amendment proposed by Representative Schneider that would prohibit any legislation from limiting or repealing the State and local tax deduction.
Mr. Speaker, I ask unanimous consent to insert the text of my amendment in the Record, along with extraneous material, immediately prior to the vote on the previous question.
Mr. Speaker, to discuss this proposal and to discuss the importance of the State and local tax deduction, I yield 2 minutes to the gentleman from New Jersey (Mr. Pascrell), who has been outspoken on this issue on behalf of States and communities and middle class taxpayers.
Mr. Speaker, I yield an additional 1 minute to the gentleman from New Jersey.
Mr. Speaker, I yield an additional 30 seconds to the gentleman from New Jersey.
Mr. Speaker, I yield 30 seconds to the gentleman from New Jersey (Mr. Pascrell) to respond.
I yield the gentleman an additional 30 seconds, and this will probably have to be it because, unfortunately, we have so many speakers over here. I wish I could enjoy the loneliness that my colleague from Georgia enjoys that nobody wants to speak to defend this budget.
Mr. Speaker, I yield 2 minutes to the gentlewoman from California (Ms. Judy Chu).
Mr. Speaker, I yield 3 minutes to the gentleman from Texas (Mr. Doggett), the ranking member on the Tax Policy Subcommittee of the Ways and Means Committee.
I yield the gentleman an additional 30 seconds.
Mr. Speaker, I yield myself such time as I may consume.
I would just say to the gentleman from Georgia, we don't need lectures on cooperation and bipartisanship. We have offered to work with Republicans on tax reform. We have offered to work with Republicans on improving the Affordable Care Act. Every time the Republicans talk about rolling up their sleeves, we are not there. We are not invited.
So if you want bipartisanship, open up this process. Go back to regular order. Hold hearings. Listen to our ideas. Don't write bills in the back room and rush them to the floor and force the Members up here to vote up or down on them. Yes, we want cooperation. We want bipartisanship, but we don't need any lectures from anybody on the other side of the aisle.
This has been the most closed Congress in history. We don't need any lectures on the importance of cooperation.
Mr. Speaker, I yield 3 minutes to the gentleman from Wisconsin (Mr. Kind).
Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Texas (Mr. Doggett), the distinguished ranking member of the Ways and Means Subcommittee on Tax Policy.
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, today we are considering a budget that will basically pave the way so we can bring up a massive tax cut for billionaires. Again, the gentleman from Georgia mentioned the nonpartisan Tax Policy Center in his opening remarks, and this chart is based on their analysis. Basically, let me repeat, the top 1 percent get 80 percent of all the benefits.
If you think that that is fair, if you think that that is representing your constituents, then go ahead and vote for this budget, because it is paving the way for a tax cut that will do just this.
I don't think it is fair. I don't think anybody on the Democratic side of the aisle thinks it is fair, and I am hoping that there are some on the Republican side of the aisle who think that that is not fair as well.
The gentleman from Georgia talks about cooperation and about we need to get along. I mean, who disagrees with that? But actions speak louder than words. You can't talk about open, transparent processes and then, as we just heard from the gentleman from Texas (Mr. Doggett), have the Ways and Means Committee which is writing this tax bill behind closed doors without any help from the Democrats, but having no hearings--not allowing any administration official to come up and testify.
How is that an open and transparent process? How does that encourage the spirit of cooperation and bipartisanship? I mean, I thought my friends would have learned from their terrible experience with their repeal and replace of the Affordable Care Act what happens when you write bills behind closed doors without bipartisan input, without even the committees of jurisdiction, by the way, in that case, deliberating on what the final product should be.
I thought you would have learned from that process, and you ended up failing at the end of the day. I hope that this effort that my Republican friends are now undertaking for tax cuts for wealthy people in this country, I hope that that fails as well.
A lousy process usually leads to a lousy product. My friends on the other side of the aisle have mastered the art of lousy processes. In the Rules Committee, almost virtually everything is closed. Everything is shut down. Germane amendments routinely deny the ability for Members to offer them on the House floor because the Republicans don't want to deal with them. They are afraid they might lose. They don't want to have the debate.
If you want cooperation, if you want a bipartisan tax reform bill, then you just can't say it; you have to do something. In 1986, the last time Congress did a comprehensive tax reform, we had 30 days of full committee hearings spanning over a year. There were 26 days of markup between September and December. This time, the timelines being reported in the press are maybe just a week, or a little bit more, if that.
Again, if recent history is any indication, we might not even get that. A bill might just miraculously appear one day and be rushed to the floor so that no one has time to read it or analyze it and so that none of our constituents have time to understand what is really happening here.
So I go back to that chart. One percent--1 percent--of the wealthiest interests in this country get 80 percent of the tax breaks.
If you think that that is fair, then vote for this budget, because this budget paves the way for that tax bill to move forward.
If you care about a balanced budget and if you care about deficits and debt, please vote ``no'' on this budget, because this allows us to increase the deficit by $1.5 trillion.
Whatever happened to deficits matter? I guess it is inconvenient because tax cuts for billionaires matter more than deficits and passing on that debt to our kids.
So I urge my colleagues to vote ``no'' on the previous question, to vote ``no'' on the rule, to vote ``no'' on this budget, and to fight like hell against this horrendous tax cut plan that my friends on the Republican side are pushing. This is bad policy. This is bad for our country. This is bad for middle class families. This is bad for not only my constituents, I would argue it is bad for your constituents.
It is about time that the people's House starts enacting legislation that benefits the people of this country, not just a few who are well off and well connected.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.
Mr. Speaker, I demand a recorded vote.