Jobs And Growth Tax Relief Reconciliation Act, 2003--Conference Report
Mr. President, this bill is called the ``Jobs and Growth Tax Relief Reconciliation Act.'' That name is wrong. This bill is not about creating jobs and stimulating economic growth. It is about helping the elite few with large tax cuts,…
Mr. President, this bill is called the ``Jobs and Growth Tax Relief Reconciliation Act.'' That name is
wrong. This bill is not about creating jobs and stimulating economic growth. It is about helping the elite few with large tax cuts, while burdening the majority of Americans with a huge debt.
Fairness is an American value. And this bill is far from fair.
Those making $1 million per year will get a $93,000 tax cut--more than twice the annual income of the typical working family. Meanwhile, 53 percent of Americans will get less than $100. The average tax cut in 2003 for those in the middle of the income spectrum will be $217. And married couples with two children and incomes between $10,000 and $21,000 receive no tax cut at all.
To make matters worse, the marriage penalty relief that was in this bill--something that would have helped most working families--was scaled back in order to provide larger tax cuts on dividends and capital gains--something that helps only the elite few. Only about 25 percent of Americans receive taxable dividends. And, according to the Center on Budget and Policy Priorities, 39 percent of the benefits of that initiative would go to millionaires; another 44 percent would go to the top 10 percent of taxpayers; and only 17 percent of the benefit would go to the bottom 89 percent of taxpayers.
If most Americans are not getting tax relief in this bill, what are most Americans getting? Debt. This bill is fiscally irresponsible. The federal budget deficit stands at $400 billion--the largest deficit ever. And our national debt is spiraling upward. In fact, later today, the Senate will vote on a bill to increase the debt limit by nearly $1 trillion.
These numbers sound abstract. But they have an impact on all Americans. Because of the higher long-term interest rates that will result, economists have estimated that the rising deficits and debts will, by 2012, take $1000 every year out of the pockets of working Americans.
And, the Republican leadership has indicated that they intend to come back and extend the tax cuts that are sunset in this bill. If those provisions are extended, the cost through 2013 will be between $807 billion and $1.06 trillion--even more deficit and even greater debt.
This robs Social Security and Medicare surpluses and borrows from our children's future. And it denies us the resources we need to defend our homeland from terrorists and educate our children.
In these bad economic times--times of high unemployment, slow growth, and fragile consumer confidence--our first priority should be to stimulate the economy. That is why I believe we need a tax and growth bill. The problem is, this bill does not do it.
In fact, the one provision in the Senate-passed bill that would have provided a big boost to our economy--the Ensign-Boxer amendment--was taken out of the bill.
Our amendment would have lowered the tax rate, for one year only, on the earnings of the foreign subsidiaries of American companies--if those earnings were brought back to the United States and invested in jobs and the economy. Current official estimates conclude that between $140 and $300 billion in domestic foreign subsidiary income would have been brought back into the American economy during the one-year period. These funds would have helped create American jobs and American opportunities with billions of dollars currently left overseas.
But that provision, even though it had broad bipartisan support and passed the Senate 75-25, was stripped from the bill. The one provision that would have done the most to stimulate the economy was dropped from the bill.
I am also disappointed that this bill drops my amendment to require those who fail to pay the child support they owe, to add the amount they owe to their taxable income. It was the morally right thing to do.
The conferees also failed to close the business tax loophole for giant Sport Utility Vehicles (SUVs). In fact, this bill quadruples that loophole. Under this bill, small businesses will be able to deduct up to $100,000 of the cost of these huge passenger vehicles in one year at least through 2005. Smaller SUVs and cars are limited to a deduction of $7,660 in the first year, and $4,900 in the second year after the purchase. This cap is not changed in the bill. But the SUV cap is. As a result, people who do not need a giant SUV for business purposes will buy giant SUVs to take advantage of the much larger tax break.
We should scrap this bill and start over. We should pass a bill that would cut taxes for every working American, providing an average benefit of over $1,600 to a family of four making $50,000 a year. We should pass a bill that would provide real assistance to the 8.8 million Americans who are currently unemployed. We should accelerate the refundability of the child tax credit, accelerate the elimination of the marriage penalty, and extend and expand unemployment insurance for those looking for work, including the one million people who have already exhausted their benefits.
We should pass a bill that really sparks economic growth. It should include the Ensign-Boxer Invest in the U.S.A. proposal. It should, as the Democratic plan did, assist small businesses with their health care expenses by providing a 50 percent tax credit in 2003. And very important for California, it should provide $40 billion in immediate aid to state and local governments.
That would be a good bill to stimulate the economy, provide help to the vast majority of working Americans, and not plunge this nation deeper into debt or plunder the Social Security surpluses. That is a bill we should pass.
This bill before us should be defeated.