Mr. President, I ask unanimous consent to conclude my remarks today. Mr. President, I just listened to my colleague from Texas talk about what is going on at the border. I thought he made a lot of…
Mr. President, I ask unanimous consent to conclude my remarks today.
Mr. President, I just listened to my colleague from Texas talk about what is going on at the border. I thought he made a lot of really good points, and I appreciate his willingness not just to talk about this issue and the crisis we have on our southern border but also to talk about solutions.
One of the solutions he talked about and I have heard about a lot recently--I am the ranking Republican on the Homeland Security Committee. In the last week, I have had the opportunity to speak with both the current Border Patrol Chief and also the recently retired Border Patrol Chief about what is happening on the border and the real- world problems that it is creating.
One thing they tell me is, just let us finish the small parts of the wall that haven't been completed because it is impossible for us to enforce the laws if you have these openings. Secondly, they said: Please let us complete the technology.
On both sides of this aisle, we have agreed, in the past, that, even if we disagree on having a fence along any parts of the border, including the urban areas, we will agree on the technology that ought to go with it.
They told me these stories that I had confirmed when I was down at the border earlier this year in that the technology that goes with it-- the remote sensing cameras, the remote sensors in the ground, and so on--were stopped as soon as the Biden administration came in even though they were already paid for. So it wasn't just stopping construction; it was, in effect, in my view, more important that they have actually stopped the technology that is needed to be able to protect the border.
Senator Cornyn talked about how he and Senator Sinema have worked on legislation to deal with some of these issues. I appreciate that because that is what is needed. We need to make some changes. We can't just continue to do what we are doing because we have over 200,000 people a month now coming over--unprecedented numbers. Usually, in the summer, those numbers go down a lot, but they have actually increased this summer.
We also need to fix a broken asylum system. This should not be a partisan issue.
It is obviously not working. People come to our border. They claim asylum. They are allowed to come into the United States. They are told, you know: Please go to an immigration office and check in, but 4 or 5 years until your immigration case is likely to be heard, sometimes longer.
Meanwhile, these folks are in the United States.
And then at the end of the process, even though those who end up going through the court system are self-selected because they are the folks who more likely--I think are more likely to have an asylum claim that is valid--but even when you go all the way through that process, guess what. Only 15 percent of those from countries like Guatemala, Honduras, El Salvador--the so-called Northern Triangle countries--or other countries like Ecuador, only 15 percent are granted asylum by an immigration judge.
But, meanwhile, everybody is in the United States. And as I said earlier, the internal enforcement is not occurring, so people are literally not being told they have got to go back. And often, obviously, not identified because, after 4 or 5 years, many people are embedded in our community.
So the asylum system has become a pull factor, and we need to realize that.
I was in four countries in Latin America earlier this year--Mexico, Guatemala, Colombia, Ecuador--and I heard from every one of the Presidents in those countries, the same thing in different ways, but the same thing, which is: You guys are pulling our people to your southern border because the traffickers, the smugglers, the coyotes, who are making all this money, are coming to our families and saying: Hey, come to the border. Give me 10,000 bucks. I will take your kids there. I can get them into school in the interior of the United States, and they are right.
Their narrative might not be exactly right. I am sure they exaggerate. But as a whole, what they are saying is correct. In other words, our system is so broken that these people who are exploiting poor people all over Latin America and elsewhere now--all over the world they are starting to come through our border in bigger numbers-- are able to say: If you come with me, I will get you in.
That is because the asylum system is broken. So until we fix the asylum system, we can do everything else we are talking about--I don't think this is going to work.
And by the way, when I talk to my colleagues on the other side of the aisle about this, when I talk to Secretary Mayorkas about it, they acknowledge this is broken. I mean, you have to.
The 13,000 Haitians that just came into our country, that walked in, were given a bus ticket or a plane ride and told: Here is an immigration office. Please check in.
My understanding is the vast majority of those people had applied for asylum, and we said: Come on in.
And in 4 or 5 years, their case may be heard. And if they come to that trial, many of them will be deemed, just as the Central Americans are deemed, to be economic refugees.
Look, if you or I were in Central America and knew we could better ourselves and our family and take care of our kids by coming to the United States, wouldn't we make the same decision?
But don't we also in the United States have an obligation to have an orderly, legal way to do that?
And we have one. We are the most generous country in the world in terms of taking in immigrants. And I am a strong supporter of the legal immigration system. But we have got to have a proper way to do it. It has got to be legal. Otherwise, again, people are going to be exploited.
This trip north is not a safe trip. It is a dangerous trip, and people die in the desert. These kids are not treated well. Many are assaulted.
I did a study on this when I was head of the Permanent Subcommittee of Investigations. We did two reports. One
was on kids who were taken into HHS custody at the border, and then when they were sent out to their sponsors--because that is what happens. You go to the Border Patrol, then HHS, then you are sent out to sponsors.
You know who the sponsors were?
The very traffickers who had brought them up--in this case, from Guatemala--who were exploiting them.
And those same traffickers took those kids and took them to an egg farm, where they had to work 11, 12 hours a day, no school, paid little or nothing, living on bare mattresses underneath trailers.
Finally, luckily, a local law enforcement official figured out what was going on and was able to save these kids.
But that is not a system we should want in America. We should want a legal, orderly system that works for everybody. By the way, including the many, many people around the world who are waiting in line patiently to come to the United States through legal means.
So I hadn't meant to talk about this today, but I appreciate the fact that my colleague mentioned it. And I do think it is very important that, on a bipartisan basis, we put aside our political rhetoric on this and talk about solutions.
I think we should go back to a system where we are encouraging people to apply for asylum in their home country, and, second, to do it from third countries. If they are not comfortable doing it in their home country because they really are feeling persecuted for some reason, do it in a third country.
Those agreements were in place during the Trump administration. They were starting to work. They have now been ended. And then if you come to the border, have the adjudication be immediate. Let's spend the money to have the processing centers there at the border so people aren't waiting 4, 5, 6 years to go to their immigration hearing that they may or may not attend, as you can understand.
Instead say: You want to come as an asylee? Here is the system. Your adjudication is going to occur right now.
And for those who apply and are successful--which, again, is about 15 percent of people from the countries that are sending most of these migrants--then you would come in as an asylee and you would have the ability to be resettled legally and you would have the ability to work.
But if you are one of the 85 percent, you would be told: Sorry, you didn't make the standards. You have got to go back home, and you can apply legally, and here is the way you do it.
Wouldn't that make more sense for our country?
By the way, there is now a backlog of 1.3 million people waiting for these asylum hearings--1.3 million people. And it is growing every day.
Budget Reconciliation
Mr. President, I had planned today to talk about something else, which is the tax situation that we are facing with this new proposal from the Democrats.
You probably heard about the Build Back Better legislation, also sometimes called the reconciliation bill. It is in reconciliation because it wouldn't require any Republican votes, and Democrats are proposing to take this through Congress, much as they did in March with the $1.9 trillion legislation.
This is also called the $3.5 trillion bill, this Build Back Better. Actually, I would argue it is a lot more than 3.5 trillion when you look at the actual spending in it.
But let's focus on the tax side for a moment because that is how it is intended to be paid for.
The tax hikes, which would be the largest tax increases in America in at least 50 years, systematically dismantle a lot of the pro-growth and pro-job reforms that were put in place in 2017.
Why do I call them pro-growth and pro-jobs?
Because they worked. They helped Americans keep more of their hard- earned earnings. They helped businesses to be more successful, to hire more people and increase wages. And they are a big reason that, as of February of 2020--the month that we went into in this pandemic, as of February 2020--we had 19 straight months in this country of wage growth of over 3 percent per annum--19 straight months.
But what all of us should want--Republican, Democrat, all of us-- higher wages. And by the way, most of that wage growth went to lower- and middle-income Americans.
That is what we should want too, right?
That was happening. In fact, as of that point, we had the lowest poverty rate in the history of America. We started keeping track of it back in the fifties. It was the lowest poverty rate ever. This was just a year or so ago. This was before the pandemic hit.
We also had a 50-year low in unemployment--the lowest unemployment ever--for certain groups: Blacks, Hispanics, disabled, others.
So this is something that was an achievement, that met the standards that we talk about on both sides of the aisle--more economic opportunity, closing the wage gap, giving people a chance to come off the sidelines and get a job. Things were happening, and in large measure, because of these 2017 reforms.
And yet, in this proposal that is now being proposed, called the Build Back Better proposal, there are tax increases that dismantle much of the reform in 2017 that caused this economic growth.
U.S.-based corporations are going to have a really hard time competing now in the global economy again because it takes our tax rate back up to being the highest, depending on where they end up in terms of their rate--one of the highest or the highest rate in the entire world.
The average corporate tax rate under the Ways and Means proposal will be 32 percent again--back up into the thirties--instead of an average of 21 percent, plus about 5 points on the State average, which is about 26 percent.
So, again, it puts us in a position where we are not competitive with the rest of the world. That is why we changed it back in 2017. In fact, according to the International Tax Competitiveness Index, the Democrats' plan would cause the United States to drop steeply down the rankings from 21st in the world to 28th in the world among developing countries in terms of competitiveness of our Tax Code.
Once again, as happened too often before the 2017 reforms--and, by the way, has not happened since then--companies will choose to say: OK. I am out of here.
Because of the Tax Code and the tax changes that they want to make, companies will say, as they did before 2017, because of the tax laws: I can't be competitive as an American company. I am going to go be a company of some other country.
It is called inversions. Sounds bad, and it is. Nobody wanted inversions. Democrats, Republicans, we all hated them. Guess what. We stopped them. After the 2017 reforms, they stopped.
Miraculously, we had companies in Ohio that chose to do that. It was terrible. They chose to actually become foreign companies because our Tax Code was so uncompetitive. We can't let that happen again.
Small businesses, which make up about 99 percent of the business in America, and they account for about two-thirds of the jobs in America-- and, by the way, most of the job growth is in small businesses--are also hit hard by these tax increases.
The vast majority of small businesses are structured as what you call pass-throughs. In other words, they don't pay taxes at the company level; the individuals who own the company pay the taxes. That is the vast majority of companies in America.
So when you raise individual income taxes, guess what happens. You are socking it to not just the wealthy or whoever you are trying to sock it to; you are socking it to small business because that is, again, the vast majority of businesses in America, most of the employees. And that is how they are taxed, down to the individual level.
To make matters worse, the Biden administration seems intent on ending section 199A, which is a deduction we put in place on purpose to help small businesses kind of level the playing field between big businesses and small businesses. They are actually talking about getting rid of that deduction. So for small businesses listening today, be aware.
In all, the more successful pass-through companies should expect their Federal tax rate to rise from about 29.6 percent today to about 46.4 percent under the Democrats' new plan--46.4 percent taxation on small business.
How does that make sense?
So I think what is going to happen is you will see a lot of small businesses go out of business if this happens and certainly not be able to create new jobs and the opportunity that we saw during the 2018, 2019 time period.
But it is not just larger and small businesses that are going to feel the impact of these tax hikes. American workers and families will find themselves losing more of their hard-earned cash from all sides, thanks to the across-the-board tax increases, whether in estate taxes, capital gains taxes, retirement account taxes, the marriage tax, cigarette excise taxes--the list goes on and on.
It is no surprise, then, that contrary to what President Biden has repeatedly said, according to the nonpartisan Joint Committee on Taxation--they are the people up here on the Hill who tell us what the impact is of tax law changes. The Joint Committee on Taxation, analyzing this tax proposal that is out there already--this is the Democrat tax proposal of the Ways and Means Committee--they say a lot of taxpayers who make less than $400,000 a year are going to see higher taxes.
Some percentage of taxpayers in every bracket will see tax rates go up, even folks making between 40,000 and 50,000 a year, according to the distribution tables by the Joint Committee on Taxation.
More than one in three taxpayers making between $100,000 and $200,000 per year will be paying higher taxes in 2023--more than one in three. By 2031, more than three-quarters of those middle-class taxpayers will be paying higher taxes.
This is according to the Joint Committee. I encourage you to go on their website. Joint Committee on Taxation, JCT.org.
So even working-class families are going to end up paying some of the price of this spending spree in the form of higher taxes. But all of us have to pay an additional price in damage to our economy.
According to the Tax Foundation, the combined long-run effects of the tax hikes include a decline in our long-run gross domestic product of 0.98 percent. So about a 1-percent decline in our GDP--wow--a decline of the wage rate of about 0.68 percent, and a loss of 303,000 full-time jobs.
So this is the Tax Foundation analyzing what the effects of this would be in addition to what I have talked about in terms of the tax hikes.
The Joint Committee on Taxation has looked at this and said: Well, if you raise taxes on corporations, it is going to come primarily out of the pockets of the workers, and that is a lot of these middle-class families. But also it is going to reduce our economy. It is going to decline our wages. And it is going to result in a loss of over 300,000 full-time jobs.
That is the Tax Foundation.
So, to be honest, I am not exactly sure where the President got the notion he has been repeating lately that the price tag on this $3.5 trillion--maybe $5 trillion; I don't know; depending on how you look at the spending--is zero dollars. That is what he said. It is zero dollars.
Even by their own admission, the big tax hikes we are talking about here are not going to cover all the spending, No. 1. But more importantly, billions of dollars lost in economic growth, a significant decline in wages, and hundreds of thousands of jobs lost doesn't sound like zero to me; it sounds like a bad deal for the American people.
So, along with my Republican colleagues, we have to keep telling the American people what is in this tax proposal and urging people to learn more about how these new taxes are going to affect them, their businesses, and their communities, and weigh in with their representatives in Congress.
Why would the American people support tax hikes that are going to be bad for workers and bad for our businesses? We have a responsibility to our constituents to ensure that does not happen.
I yield the floor.