Tax Policy
Would the Senator yield for a question? I think the point the Senator is making is really important. I want to ask a question of him, through the Chair. So what we just voted on, basically, that 53 Members of the Senate--that used to be a…
Would the Senator yield for a question?
I think the point the Senator is making is really important. I want to ask a question of him, through the Chair. So what we just voted on, basically, that 53 Members of the Senate--that used to be a winning number around the Senate until this new era of we have to have 60 votes for motherhood and apple pie--53 Members of the Senate voted to make sure everyone in America had no tax increase on their first $1 million in income. Is that correct?
So it is not that we are not passing a tax cut for everyone, we are passing a tax cut for every person in America. We are just saying, maybe on that second million, we might ought to take that $300 billion and put it in deficit reduction. So it is not the first million, it is the second million and the third million and the fourth million and the fifth million that you would have to go back to a rate that we had in the days when we had massive job creation, and these guys did well.
Mr. President, I must compliment both my colleagues, Senator Dorgan and Senator Boxer, for calmly laying out the issue. Frankly, I feel a little bit like I am in the Twilight Zone. I certainly paid attention to the results in November. Anybody who is in this building paid attention to the results in November. Somehow the Republican Party thinks what happened the first Tuesday in November is that the American people wanted them to raise taxes on 99.9 percent of Americans in order to make sure the tiniest little sliver at the top gets a deficit-busting, China-borrowing, print-more-money tax bonus? I do not think that is what the people were saying.
It is beyond comprehension that these folks have talked about deficit reduction. Oh, ``deficit reduction''--how many speeches have we listened to--``our grandchildren.'' I have listened to Dr. Coburn and I have listened to Senator DeMint and I have listened to so many Republicans talk about deficit reduction, deficit reduction, deficit reduction, and the tiny little fig leaf they are hiding behind is the complete fallacy that a small differential in personal tax rates to people on their second million dollars of income is going to create jobs. It is not going to create jobs.
The people who are making more than $1 million are not going to take a 3-percent personal tax cut differential and create jobs. The job creation occurs with small businesses. It occurs with people in the middle class. It does not occur when someone has another $100,000 to put in their investment fund or another $300,000 to put in their investment fund.
I think people need to understand that 53 Senators voted to give a tax cut to everyone--everyone, we do not care how rich you are--because you get a tax cut on your first $1 million of income. So even if you make $3 million, you are getting the tax cut. If you make $5 million, you are getting the tax cut. If you make $10 million, you are getting the tax cut. You are getting it on the first $1 million.
So everyone in America was denied a tax cut, by the vote that just occurred, by the minority of the Senate, not the majority. The majority of the Senators who were elected to come here voted to give 99.9 percent of America a tax cut and thinks maybe that other $300 billion will be saved on that little 0.1 percent of America. That $300 billion, that would be a good thing to put against the deficit. It would be a great thing to put against the deficit.
So do not take these guys seriously about deficit reduction. Do not take them seriously. It is a joke. Some of these people who voted no just now did not even vote for the Bush tax cuts. Some of the people who just voted no on giving a tax cut to 99.9 percent--in fact, to give a tax cut to everybody in America on their first $1 million--some of the people who voted no did not even vote for the Bush tax cuts. They knew they were irresponsible at the time. But now they have somehow tried to convince the American people they are looking after them.
As I said yesterday, I tell you who they are looking after. They are looking after the families who are deciding which home to go to for Christmas: Should I go to my home in Florida or my home in California or maybe up in the mountains or should I stay in the city or the people who are deciding: Where should we spend New Year's Eve? Should we go to Paris? Maybe we should go to Rome for New Year's Eve. They are not focused on the folks who are trying to figure out if they can get what their kids want for Christmas.
And 53 votes--if you think about that, there was a time in the Senate that all kinds of things--in fact, my recollection is that is the exact number of votes Clarence Thomas got to join the Supreme Court. Can you imagine in this day and age a controversial Supreme Court nominee not having to get 60 votes? Clarence Thomas got the same number of votes as we just cast to make sure everybody in America gets a tax cut on their first $1 million in income.
I come from a State where elections are very close and, in fact, I remember when I passed my first amendment on the floor of the Senate. The vote was 51 to 49. It seems amazing to me now. That was just a few short years ago that we had votes that were 51 to 49. They were not requiring 60 votes. That was back before motherhood and apple pie needed 60 votes. One of the Senators came over to me after that amendment vote--it was 51 to 49--and they said: Boy--they were teasing me about how close the vote was. I said: Senator, in Missouri we call that a landslide.
This vote we just had--53 votes--in Missouri is a landslide. It is depressing to me that we have gotten to this level of posturing, that they are saying: If you do not give people a tax break on their second million, nobody gets one.
I am going to say it again: If you don't give people a tax break on their second million, nobody gets one.
Really? Are they going to hold on to that position? Deep down in my gut I cannot believe they are going to do that, that they are going to go home and explain to their voters: Yes, well, you don't get a tax cut because this guy I know on Wall Street who makes $15 million in his bonus this year didn't want to have to pay the same rate he paid in the 1990s when everybody cut a fat hog and did very well. We created millions and millions of jobs in the 1990s with these same tax rates.
It is not like we are going back to the Roosevelt era of taxes. We are not going back to 75 percent of your income going to taxes. We are talking about a 3-percent difference for people who make more than $1 million.
So I hope this gets through to the American people, and I hope they realize this is not what this election was about. This election was about holding down government spending, and my colleagues and I agree. I have been working on trying to get a cap on Federal spending with Senator Sessions for over a year. It is about tightening our belt on spending. But it is also about having a level playing field for the middle class in this country and not making it about the special interests that have jammed this Tax Code with so many provisions.
Most people do not realize that over 70 percent of Americans do not even itemize. So imagine how many tax provisions have been written for the wealthy. We have books and books of tax loopholes for the wealthy. As Warren Buffett has said--he does this great exercise every year in his office, which I think is fascinating. He has everyone who works in his office--from the people who clean the boardroom, to the people who park the cars in the parking lot--they calculate all the taxes they pay every year and figure out everything from sales tax, personal property tax, Federal tax, State tax--earnings tax in some localities--they calculate all of it and figure out what their real tax rate is. He said the folks who work for him who have very modest incomes, pay, I think it is 33 percent, 34 percent of their income in taxes, and he pays 16 percent.
Now, what is wrong with this picture? Listen, I have nothing against people who have captured the American dream. My husband is one of them. His first job out of college was in a steel mill. Since then he has taken huge risk as an entrepreneur, huge risk, and he has created thousands of jobs--thousands of jobs--in his lifetime, and he has done very well. We are very blessed. Does he need this tax cut? No. Do we need it? No, we do not. I think the people who are in that tax bracket have a great deal in common with my family, those who are worried about going back to the 1990s tax rate on their second million and their third million and their fourth million.