Mr. Speaker, there are some real terrible parts to this budget, but this, to me, is the worst. This deduction has been part of our tax system before there was an income tax, going back to the Civil War, for the very reasons that my friend…
Mr. Speaker, there are some real terrible parts to this budget, but this, to me, is the worst.
This deduction has been part of our tax system before there was an income tax, going back to the Civil War, for the very reasons that my friend from Massachusetts just talked about. It wasn't just picked off the shelf. People count on it. People count on this.
Mr. Speaker, I rise to urge my colleagues to vote ``no'' on the rule, the previous question, the budget, the weather, whatever.
We know that this budget resolution paves the way for a tax reform bill done through reconciliation. I am sure that is interesting. Reconciliation on Governor Street in Paterson, New Jersey. I am sure they want to know reconciliation when we are talking about their pocketbooks; a dubious maneuver that blocks us Democrats completely out of the process and allows Republicans to pass a purely partisan, juiced-up bill.
Comprehensive tax reform is a goal we should all share, and lasting tax reform should be bipartisan. My friend from Georgia, I think, believes that, but this ain't it.
While they are cutting deals behind closed doors, what we are pushing is eliminating the State and local tax deduction, and that is in the Senate budget. They wrote it right out, the Capito amendment.
Republicans are so adamant about eliminating this middle class benefit that they added an amendment to that budget before us today, the so-called Capito amendment.
Mr. Speaker, let me be clear. A vote for this rule is a vote for the budget, is a vote to repeal the State and local deduction.
Mr. Speaker, my colleagues representing New Jersey, New York, Illinois, California, Minnesota, and so many other States, including Georgia, including Lake Geneva, Wisconsin, better think long and hard about their vote today.
The American people are watching to see if they vote to raise their taxes. This amendment, the Capito amendment, in the budget falsely claims that the SALT only benefits high-income taxpayers. Let's take a look at that.
The fact is that repealing it would hurt the middle class and working families. At the same time, how do you justify--through the Speaker, how do you justify keeping the deduction still viable for corporations? They can deduct the State and local taxes, but the families of America can't? How can you justify that?
I want to hear your justification of that. That is going to be a good one.
Forty percent of taxpayers with incomes between $50,000 and $75,000, more than 70 percent of those making $100,000 to $200,000, claim the State and local tax deduction.
Mr. Speaker, I will make it short, but I could stay here all afternoon on this because I feel it in my bone marrow.
We are talking about tax cuts. We are increasing the tax burden on the middle class, and you cannot deny it. There is no place in that budget that you can deny it. None whatsoever. You could say: Well, we are going to do this over here and this.
Look, I am tired of that walnut trick. Okay? Have you figured out which it is under?
Groups representing realtors, mayors, teachers, firefighters, sheriffs, et cetera, all support retaining the State and local tax deduction. It is bad policy, plain and simple.
Mr. Speaker, I appeal to you, we have enough ammunition. We don't need this ammunition for next year. Let's think about the budget of the American people in a nonpartisan way.
Will the gentleman yield?
So, now that you have agreed to the fact the families are going to get shafted but corporations will continue to be able to deduct their local and State taxes, this is pertinent to the budget, my friend, through the Speaker.
Right in the bill, the budget bill we are talking about right now, the rule, previous question, related to changes in Federal tax laws, which may include reducing the Federal deduction such as this--this is right from the budget. Why do you say we are not discussing this?
Mr. Speaker, families in my friend's State, the great State of Georgia, will lose a tax deduction of $9,000, those families, on average. I think you are concerned about that. You cannot fib that you are not.
And the fact of the matter is you used the words--through the Speaker, you used the words that your States are subsidizing the donor States? Well, let me give you an idea of New Jersey.
States like West Virginia, the average SALT deduction claim is $9,463 per household; in Ohio, it is $10,445; in Wisconsin, it is $11,653.
Mr. Speaker, 48th, 49th State, that is where New Jersey is in getting back the money we send down to Washington. Who subsidizes whom?
And Mnuchin, go back and tell the Secretary of the Treasury he doesn't know what he is talking about. He says New Jersey is being subsidized? Not these numbers; the numbers don't show that.
You can't defend this. You can't defend it under any circumstances whatsoever, and you have admitted that we are talking facts here today.
I rest my case.