Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 1745 and ask for its immediate consideration. Mr. Speaker, for the purposes of debate only, I am pleased to yield the customary 30 minutes to the gentleman…
Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 1745 and ask for its immediate consideration.
Mr. Speaker, for the purposes of debate only, I am pleased to yield the customary 30 minutes to the gentleman from California (Mr. Dreier). All time yielded during consideration of this rule is for debate only.
General Leave
I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks and insert extraneous materials into the Record.
I yield myself such time as I may consume.
Mr. Speaker, House Resolution 1745 provides a closed rule for consideration of the Senate amendment to H.R. 4853. The rule makes in order a motion offered by the chair of the Committee on Ways and Means that the House concur in the Senate amendment to H.R. 4853 with the amendment printed in the report of the Committee on Rules accompanying the resolution. The rule provides 1 hour of debate on the motion equally divided and controlled by the chair and ranking minority member of the Committee on Ways and Means.
The rule waives all points of order against consideration of the motion except those arising under clause 10 of rule XXI. The rule provides that the Senate amendment and the motion shall be considered as read. Finally, the rule allows the Speaker to entertain motions to suspend the rules through the legislative day of December 3, 2010. The Speaker or her designee shall consult with the minority leader or his designee on the designation of any matter for consideration pursuant to this resolution.
Mr. Speaker, today we have the opportunity to do the right thing and put
American workers ahead of millionaires and billionaires. This should be our priority and shouldn't be a tough choice to make. Today we can focus on economic growth to help those who are suffering from this recession and to provide permanent, equitable tax relief for the middle class.
These should not be controversial positions. They aren't and they shouldn't be. The economic growth that all Americans can share in ought to be a top priority for every elected official, and lowering the tax burden for working families shouldn't be any kind of a partisan fight.
After the last administration and the previous Congress spent billions of dollars starting two foreign wars and bailing out the big banks that ran roughshod over our economy, isn't it only fair that we do more to help out those who are struggling to find work and to make ends meet? Today we are simply voting on whether or not to protect the middle class and to make sure working families do not suffer needlessly as winter approaches. Nothing more, nothing less.
This is not political showmanship or a partisan game. We are doing the work the American people asked us to do. We are not voting on whether or not to extend tax cuts for the wealthy. We are only voting on extending tax cuts for the middle class, and this is something I sincerely believe we should all agree on.
One of the biggest pieces of misinformation about ending tax cuts for the wealthy is that it would hurt small businesses, which is simply not true. The bill we are talking about today extends tax cuts for incomes up to $250,000. That covers 97 percent of all small businesses in the United States. And let's be clear about another thing: For all small businesses, the cuts continue for their first $250,000 of profit.
If we really want to help small businesses, let's offer real direct benefits. Let's help them access funding to grow, offer larger tax deductions for purchasing equipment or create incentives to hire more workers.
I am glad many business owners in my State, the State of Maine, have been able to see through this misinformation. Jim Wellehan, who owns one of the largest shoe store chains in the State, has recently come out against tax cuts for the wealthy because they offer no benefit to his business or his employees. He recently said it makes no sense from any perspective to preserve the tax cuts for the wealthiest people in this country. It will just increase the wealth gap and create more of a social and economic problem.
Jim hits on a critical point. Over the last 30 years, the wealthiest have gotten richer and richer compared to everyone else. In 1980 the average income of the country's top .01 percent of earners was 180 times that of the bottom 90 percent. Today that number is 1,000 times. Meanwhile taxes for the rich have gone down dramatically. So as the wealthiest take a larger and larger piece of the pie, they have given less and less back to the public infrastructure, to our communities, and to the people who helped create that prosperity.
The truth about tax breaks for the ultra rich is that they are very, very expensive. Cutting taxes for those making over $250,000 will add $700 billion to the deficit in the next 10 years alone. That's about the cost of the entire stimulus bill, and most economists agree it would do very little to stimulate the economy.
In January of this year, the nonpartisan Congressional Budget Office analyzed 11 policy proposals and ranked them by how effective they would be in fueling economic recovery.
Number one on that list was extending benefits for the unemployed because those dollars go immediately into local economies and spur more spending. If only that was the bill we were voting on today.
What was number 11? Number 11 on that list was extending tax cuts for the wealthy. The benefit of those dollars going to the rich was marginal, because that money would be mostly saved, not spent. That's just not right.
I hope all of my colleagues on both sides of the aisle will join me today in supporting this commonsense bill.
I reserve the balance of my time.
Mr. Speaker, before I yield time to one of my colleagues, I want to answer a couple of things that my good colleague from California mentioned. Soon his party will be in power, and I am confident he will be the chair of the Rules Committee and the Rules Committee will be very open perhaps at that time to have more open rules and to change the process. So I look forward to, as a sophomore Member, learning how a different process will be conducted by the other side of the aisle.
I do want to remind him that during 12 years when his party was in control, there was never a tax bill that came to the floor which allowed for amendments. I don't know if that process will change in the future. It certainly wasn't that way in the past.
I yield to the gentleman from California.
Thank you for making that point. I think it is slightly different from the other point of saying that tax bills never were allowed to be amended in the last 12 years. But I look forward to modified open rules or open rules or whatever process we will be working with in the future. That isn't what we have before us today.
I do want to comment that while you were kind of referring to this as political theater, I also recall that you asked for 3 hours of debate on this; and if it is truly political theater, that would be tying up a lot of the people's time to have us conduct this debate for 3 hours if, in fact, you do not consider it serious debate. I mean, in my opinion, you and I just have a strong disagreement. Our two parties and many of our Members disagree on where the appropriate place to have tax cuts is.
We are putting this bill on the floor today because we believe it is important to extend tax cuts for the middle class, that that has the greatest benefit to our economy. And as the OMB and other studies have shown us, tax cuts for the wealthiest to the country just do not stimulate the economy. The money does not go where we think it needs to go to create more jobs, and it is not a good expenditure of $700 billion, which is what this will cost us over the next decade in a time when we are clamoring to find ways to reduce the deficit.
So I find it unfathomable that there would be any objection to taking a vote on what is clearly the most agreed upon part of our tax cuts here and then allowing for other debate on the rest of the package. So for me, this is a logical way to bring this to the floor. I am pleased that we have this opportunity here.
I am a little frustrated every time I hear this tried to be portrayed as the real argument is only about small businesses. You know, 2 percent of the small businesses in our country are the ones that will be affected by this.
I disagree with your statement that Democrats love employees and dislike employers. Many of us on this side of the aisle are employers. I am an employer. I have a small business, and I actually feel pretty good about myself.
I do appreciate that, and I am glad to know that dear Senator Tsongas' wife has corrected you on the appropriate way to use that quote. But either way, it was something that you brought to the floor to make the point that somehow you think this bill is put forward so that Democrats can show their disapproval of employers. And I can speak
personally that I work closely with employers in my district. I am an employer and think there are employers who will benefit under this as well. That is why I quoted, in my own remarks, Jim Wellehan who owns a chain of shoe stores in our State who said: I am not in favor of a bill that would give tax cuts to the wealthy because it doesn't do anything to help my employees or my business. And that, in fact, is what he is concerned about. You know, employers need customers, which are those employees, and that is why we consider it so critical to make sure that we do something to benefit those people who will be purchasing.
Just one other comment that I had in my notes here today from a small business owner in Lincoln, Nebraska. People talk about the $250,000 without talking about that as net profit. Here is how he described it: A lot of people don't understand how small business works. We reinvest in our business. We try to minimize the amount of taxable income we have. I went out and bought an $80,000 piece of equipment. I did it so I could reduce my taxes. The only people I can think of who could honestly call themselves small businesses that this would affect would be stock brokers and lawyers.
That is what Rick Poore, owner of a Lincoln, Nebraska, clothing firm who employs 30 people thinks about this.
Well, if in fact the 2 percent we are trying to help today are stock brokers and lawyers, I don't think the American public is clamoring for them to have another tax break, and I think people aren't explaining and displaying an understanding of how business works. This is about net profit for small businesses, which even reduces further the number of businesses who will be affected by this.
Now, Mr. Speaker, I would like to yield 3 minutes to the gentlewoman from Hawaii (Ms. Hirono).
I thank the gentleman from California for his remarks.
Mr. Speaker, before I close, I would just say again that I think we have a difference of opinion on the semantics here.
You want to argue that, if we don't continue tax cuts/tax breaks for the wealthiest people in this country that we are increasing taxes. I would say it is time we let those tax breaks end, those tax breaks that went on for too long and that did nothing, in my opinion, to stimulate the economy.
I also just want to add my own comment.
You know, there is a lot of interpretation about November 2. The voters cast their votes. Things changed dramatically. Many of us who have been in politics over time know that sometimes you're in the majority, sometimes you're in the minority; sometimes your ideas come out on top, and sometimes they don't.
But I have to say personally, in interpreting my own district, voters heard me say every day that I pledge to continue the tax breaks for the middle class but that I will not vote to extend them for the wealthiest in this country. I debated my opponent, and it was written about in the newspaper. There were endless interviews when I made it very clear as to what my point of view was and why I thought it was important. I come from a State where small business rules, where I am a small business owner, and where I said to people, You know, this isn't a small business issue; this is about helping the wealthiest people in this country.
I just have to say, when I go back and look at the November 2 election, oddly enough, I'm still here, and I intend to be here on January 5 and to be sworn in again. Somehow, the voters in my district said, Go for it. We don't want to see any more tax breaks for the wealthy. We, in fact, only want to see tax cuts for the middle class.
So I am interpreting November 2 to mean we are doing the right thing on the floor today. We are putting forward the one measure that allows us to make sure we can separate the tax cuts for the wealthiest from the tax cuts for the middle class. That is what we are doing here today.
Let me just close, Mr. Speaker.
Ten years ago, Congress passed a package of tax cuts with the lion's share of the benefits going to the wealthiest of the wealthy. The stated intent was to grow and secure our economy. Today, millions of families across this country are struggling. They are worried about finding work. They are barely covering their monthly expenses.
I have to ask my colleagues: Do your constituents feel more economically secure than they did 10 years ago?
Since these cuts took place, we have gone from a balanced Federal budget to troubling deficits. We have seen the middle class weaken, and we have experienced the worst economic downturn since the Great Depression. The billions we have given in handouts to the super rich have been major contributors to all of those realities.
Today, we have a historic opportunity to support the middle class, to show real Americans that we as Members of Congress are hearing their frustrations and their anger. We can stand up today and say that we are going to help the vast majority of Americans, that we care deeply about the economic security of the middle class and that, for once, Congress is going to act in the best interest of the middle class.
I strongly stand behind H.R. 4853, extending the tax cuts for middle class families and businesses who make up to $250,000. They need a break, and we should be doing even more for them. It is simply outrageous to suggest that we should hold these tax cuts hostage in order to continue a failed policy that has weakened our economy, has placed a bigger burden on working families and has only been effective in making the rich richer. I urge all of my colleagues to support middle class Americans and to vote for the underlying bill.
I urge a ``yes'' vote on the previous question and on the rule.
I yield back the balance of my time, and I move the previous question on the resolution.