Mr. Speaker, I thank my colleague and friend from California for not only organizing this evening's Special Order hour, but for his long-term advocacy for working people in this country and for his extraordinary advocacy for the people of…
Mr. Speaker, I thank my colleague and friend from California for not only organizing this evening's Special Order hour, but for his long-term advocacy for working people in this country and for his extraordinary advocacy for the people of the State of California.
As my colleague described what the Republicans are attempting to do in this tax proposal, it is very clear to me that this isn't tax reform. It is not a tax bill. It is a tax scam. It is a scam in that the American people are being sold a bill of goods.
All across this country tonight, there are millions of Americans who will go to sleep tonight worrying about whether or not they are going to be able to make it through the next week, whether they have enough to pay their bills, to take care of their family, to set aside a little for their retirement. The reason that they are worried about this is they are not making enough money.
So what the Republicans propose to do in this tax bill will make that problem worse. We have spoken over the last several months about an agenda that is really at the heart of this problem, that raises incomes for families, that reduces the costs in people's lives, and that ensures that they have the tools to be successful in the 21st century.
It is an agenda that really focuses on addressing the fundamental and economic anxiety facing millions of American families all across our country. We know it is because people are struggling. They are just not making enough money.
The same can't be said of the biggest corporations in this country, where we are seeing record profits, Wall Street through the roof. So people understand something is not working right in our economy. They are struggling. They haven't seen their wages go up for a very long time. America hasn't had a raise in a long time, yet corporate profits are through the roof and the stock market is through the roof, and people are saying: This isn't working.
So what we should be doing is investing in the creation of good- paying jobs that will result in better jobs, better wages, and a better future. But what this Republican proposal does is it relies on this old Republican theory of trickle-down economics: if we just let people at the very top have more money, it is going to trickle down to the rest of us and we will all benefit.
We know this doesn't work. We have seen time and time again this doesn't work. And part of the reason it doesn't work is because people at the top can only buy so much stuff. The way you really grow the economy is you grow the middle class. Make sure people have a job, have money in their pockets to buy the goods and services that business produces.
If you go to any small business in my State of Rhode Island and you ask small-business owners, ``What do you need to add an employee, to add jobs to your company,'' they will give you the same answer, ``I need customers. I need people to buy what I make and I sell.''
That is why growing the middle class and focusing on raising incomes of working people is actually how you create jobs. Those are the job creators: working people, the middle class of this country who are creating the demand that leads to job growth.
But what this tax scam does is it gives 67 percent of the tax cuts to the top 1 percent, huge benefits for the biggest corporations in this country, further incentivizes companies to ship American jobs overseas, and to realize profits from doing that. It cuts important deductions, in the House bill at least, for student loan interest, medical expenses, State and local taxes. It is going to raise taxes on 87 million Americans, middle class folks, working people.
In order to finance this tax cut for the richest people in this country and the biggest corporations that don't need it, the middle class and working people are going to pay for it and the next generation is going to be burdened with $1.5 trillion in debt over the next 10 years.
We are borrowing money to give tax cuts to big corporations, the wealthiest people in this country, and we are going to shoulder the next generation with that burden?
Shame on them.
So this conference committee is meeting and going to come up with some proposal that apparently is going to be pleasing to their donors.
We know in the Senate some of the donors had the provisions of the bill before Members of the Senate had them. They came out with handwritten notes in the margins because they were so desperate to get this done for the moneyed class. In fact, some of our colleagues admitted it and said something like: Look, if we don't pass this, our donors said, Don't bother calling us.
What we need is tax reform that provides a tax cut to working people and the middle class. We could have done that in a bipartisan way. The last time there was tax reform, there were hundreds of witnesses, months of testimony. This stuff is complicated.
What happened in the House?
Not one hearing, not one witness. Jammed through, as Congressman Raskin said, in the dark of night, at the speed of light. Because the more the American people hear about this tax scam, they know it is not for them. They know they are not going to benefit. They know the same old corporate special interests that have so much influence in this town helped write this bill, and that they are going to benefit from it and they are determined to jam this through, regardless of the public sentiment.
The American people are against this bill 2-1. That number is going to grow the more people learn about it. That doesn't seem to matter.
So I thank the gentleman for inviting me tonight and allowing me to speak. He has been here longer than I have. I can say with all honesty that the day that bill passed the House was one of the worst days I have ever been in this Chamber because I know how this tax scam, this effort by the Republicans in the House is really going to hurt the American people. I have never seen a situation in which public sentiment was so strongly opposed to this measure. Despite that, our colleagues are moving forward with it.
I don't know that my colleague has seen an occasion like this before, but I would like to hear Mr. Garamendi's thoughts on that.
Will the gentleman yield?
Mr. Speaker, I thank the gentleman for yielding.
I think the other thing that is very important to acknowledge here, and I think we have heard the Speaker say this--we have heard Senator Rubio make reference to this--is that the American people, I hope, understand that this is part one of a multipart story. Our Republican colleagues have made it very clear that this tax scam, this sort of giveaway to corporate
America and the richest people in this country, is just part one.
Next year, after you give away $1.5 trillion, unpaid for, you come back next year and you say: We have no money. We are going to have to cut Social Security, cut Medicare, cut Medicaid, cut Pell grants, cut investments in healthcare, and cut investments in rebuilding the infrastructure of our country.
So our Republican colleagues are setting this up as an effort to gut Medicare and Medicaid. Let's be clear about that. You can't give away $1.5 trillion that you don't have.
And next year they are going to be heard to say: Geez, we have no money. We have to cut all of these programs that middle class Americans and working families rely on to survive and to prosper and to get a shot. And their answer is going to be: There is no money.
And why isn't there any money? Because we gave it away to millionaires and billionaires and corporations and people who didn't need it. As a result of it, you are going to pay for it by cutting Medicare and cutting Social Security and cutting Pell grants.
The immorality of this is stunning.
So I think we have to not only defeat this tax scam, but call it out for what it is. This is an effort by our Republican colleagues to finally get what they want. I think our Speaker has said: I dreamed about it, or, I drank beer thinking about cuts to Medicare and Medicaid.
They call them entitlements. They are not entitlements. These are earned benefits that people get after a lifetime of hard work, of playing by the rules, of doing what is right.
This is phase one of a multiphase plan which will hurt working people in this country, and we have to call them out on it.
A very distinguished colleague.
Will the gentleman yield?
Mr. Speaker, it is important to note here--I think my memory is correct on this--that the $1.5 trillion in debt which will be generated by this tax giveaway is exactly the same number that they cut from Medicare and Medicaid in the budget they just voted on. So we don't have to wonder whether that is the plan. They have already done it in the budget that they have proposed. And as you said, the Speaker, Senator Rubio, and others have already acknowledged this.
So this should be clear. We are going to vote, and have already voted, to give a tax cut
The gentleman is correct. They have already voted to cut $1.5 trillion to give a tax cut to the wealthiest people in this country, to the biggest corporations; and in order to pay for that, they intend to gut Medicare and Medicaid and a whole range of other very important investments we make, that our country makes, in supporting and strengthening the middle class.
It shouldn't be a surprise to anyone when, next year, as the gentleman said, the deficit hawks return in the warm weather to say: Oh, my goodness, there is no money. We are going to have to end the guarantee of Medicare. We are going to have to cut Social Security. We are going to have to eliminate or cut Pell grants. We are going to reduce all of these investments which matter so much to working families in this country.
They are intent on doing that. They have tried to do it for the last several years, but not to the magnitude of success that they expect when they drain the coffers by giving away the money, which is exactly their strategy. And it is why we have to fight hard against this tax scam because it is not just a tax giveaway to people who don't need it. It is what it will do to the economy.
I think there was a New York Times analysis of 38 economists. Not one, not any economist I have ever heard of yet, has said that this tax cut will pay for itself.
We keep hearing our Republican colleagues: Oh, this is going to pay for itself. The economy is going to grow, and jobs are going to. It is a pipe dream. There is not a single economist, Republican, Democrat, Independent, who says these tax cuts will pay for themselves because, of course, they won't.
Who will pay for them? The middle class of this country.
Will the gentleman yield?
Mr. Speaker, one thing to remember there is that States that are investing in their infrastructure, investing in public safety, that are asking for local taxpayers to do their part, you punish them, and you incentivize States that are not making that investment. It is bad public policy.
Will the gentleman yield?
I started to interrupt. I was just going to say that, for young people, what this tax scam does is particularly damaging because it not only saddles the next generation with $1.5 trillion of debt, but in addition to that, it makes their cost of pursuing higher education more expensive.
Who in their right mind thinks it is a good idea to make it harder or more expensive for young people to go to college? We ought to be making it easier and more affordable, less difficult. Young people are already graduating with enormous debt, going to a tough job market in terms of what they can earn, and the Republicans are taking away the deduction so they can finance a tax debt for the richest people in this country.
Will the gentleman yield?
Mr. Speaker, an important part of that is doubling the investment in apprenticeship programs, career and technical education, making sure we are creating pathways to produce better wages, better jobs for a better future. And the last thing families need, because the focus has to be on raising family incomes, is a tax scam that is going to raise their taxes.
That is exactly the reverse of what most middle class and working families need. They need more money in their pockets, not less.
And when I hear my Republican colleagues say: This is a tax cut for middle class, that is not true. For 87 million Americans, their taxes will go up. For many Americans, the deductions that they take will be eliminated, and 67 percent of the tax cuts go to the top 1 percent.
So it is important, again, that they are trying to jam this through quickly because I think they understand that, if they don't, the more the American people learn about it, the less they like it, and the more they are going to attempt to stop it.
Except if you are a corporation. They keep that deduction. So think about that. If you have to move to follow your job, you can't deduct that from your taxes; but if your company moves your job overseas, the corporations can deduct the cost of moving your job.
Correct. Correct.
Absolutely. Mr. Speaker, I thank the gentleman again for including me. I look forward to the opportunity to come back and talk in more detail about the economic agenda that we collectively have put forward as the House Democrats working with the Senate Democrats that is focused on better jobs and better wages for a better future, the creation of 10 million full-time, good-paying jobs, expanded investments in apprenticeships and work-based learning, ensuring that we are providing investments in career and technical education, affordable childcare, reducing the cost of prescription drugs, rebuilding the infrastructure of our country. The list goes on and on, all focused on creating good-paying, full-time jobs, raising family incomes, reducing the costs that families bear on everything from cable bills to prescription drugs and healthcare, and making sure people have the skills necessary for the jobs of the 21st century so they can be successful.
It is exactly the opposite of what is going to be achieved in this Republican tax scam.
Mr. Speaker, I look forward to coming back with my distinguished colleagues, Cheri Bustos from Illinois, Hakeem Jeffries from New York, and Mr. Garamendi so that we can talk in a lot of detail about our economic agenda that will focus on supporting and strengthening working people in this country and giving a better deal to the American people than the raw deal they are getting from our colleagues on the other side of the aisle.