Mr. President, thank you very much. I feel like we should be talking about the deficit, which is of concern to us and wish it were of more concern to---- Mr. President, yes, I do. I absolutely do. Motion to Commit Mr. President, I call up…
Mr. President, thank you very much. I feel like we should be talking about the deficit, which is of concern to us and wish it were of more concern to----
Mr. President, yes, I do. I absolutely do.
Motion to Commit
Mr. President, I call up my motion to commit, which is at the desk.
Mr. President, this would put in place a guarantee that middle-class families would receive the benefits they are being promised in this bill. I am offering this motion to
commit with the support of Senators Casey, Van Hollen, Udall, Cardin, Booker, Wyden, Menendez, Harris, and Brown.
I have said it before, and I will say it again, there is no question we need tax reform. We need tax reform that creates jobs, incentivizes companies to bring back jobs from overseas, protects our farmers, helps small businesses, and puts more money in the pocket of middle-class families in Michigan and across the country. That is what we need, and that is what I would vote for and I know other colleagues on our side would vote for, but that is not what this bill does. That is not what this Republican bill does.
We know our friends across the aisle are in a hurry to pass this legislation as quickly as possible before the American people discover what a bad deal it is. Unfortunately, for Republicans, we keep uncovering new ways that this tax legislation is a huge giveaway for the wealthiest 1 percent. Now we know, from the latest scoring, it blows a huge hole in our Nation's debt, expanding our Nation's debt.
Here are just a few ways this legislation hurts middle-class families. It keeps a loophole that lets corporations write off their expenses, their moving expenses, when they move jobs overseas. However, a family moving across the country to Michigan for a new job could no longer deduct their moving expenses. Big businesses could keep on deducting their State and local taxes, but middle-class families, sorry, no State and local tax deduction for you. Oil companies would enjoy a brandnew $4 billion offshore tax loophole. Merry Christmas. Meanwhile, 87 million American households who earn less than $200,000 a year get a tax increase. Let me repeat that. Eighty-seven million American households who earn less than $200,000 a year will get a tax increase under the bill in front of us, and health insurance premiums will go up by 10 percent, and continue to go up, while 13 million fewer people would have healthcare coverage.
President Trump has called this bill, in his words, a ``great, big, beautiful Christmas present'' for the American people. Well, I certainly hope the American people remember to keep the gift certificate. This bill is a disaster for the middle class and a disaster for our future.
President Trump isn't the only person who has made big promises about this legislation. Treasury Secretary Steve Mnuchin, one of the bill's biggest salesmen, has said: ``On the personal tax side, middle-income people are getting cuts and rich people are getting very little cuts.'' I would like to highlight his first words ``on the personal tax side''--very sneaky language. Once all the proposals that actually help the wealthy are taken into account, all of them, it is clear that those in Secretary Mnuchin's personal income category are the real winners.
White House budget director Mick Mulvaney is making promises too. He said, ``The White House, the President, is not going to sign a bill that raises taxes on the middle class, period.'' I would assume, based on that statement, he wouldn't sign this bill. The nonpartisan Tax Policy Center found that 87 million middle-class and working families will see their taxes go up.
Perhaps the biggest promise of them all came directly from the White House. ``The average American family would get a $4,000 raise under the President's tax cut plan.''
Republicans have promised hard-working, middle-class families in Michigan and across the country that by giving the top 1 percent and large corporations a huge tax giveaway--you know the trickle-down economic approach--that magically they will receive $4,000, $7,000, even $9,000 in extra income. By giving this big supply-side tax cut, magically, families will receive $4,000, $7,000, or even $9,000 in their income.
Well, the proof is in their paychecks. That is what is going to happen for the American people. They are going to take a look at their paychecks to find out whether this is true, and that is why I am offering a motion that will ensure that the benefits of these tax cuts go to the middle class and that the promises being made to the families in Michigan and across the country will be kept. This motion would send the bill back to the Finance Committee with instructions to include a trigger to return the corporate rate to its current level if the average household wage doesn't go up at least $4,000 in the next 2 years. That seems only fair to me. People are being told over and over again they are going to get money directly in their pocket. The President said a minimum of $4,000. Well, the proof is in your paycheck. That is what the American people are going to be looking at.
This motion simply makes sure the American people get the raise the Trump administration is promising them. If my Republican colleagues are serious about putting more money in the pockets of the middle class, I urge you to support this motion.
You know Michigan families could certainly use an extra $4,000 in their paycheck. What they don't need are broken promises--the kind of promises they have heard before too many times. Just think back to the Bush tax cuts of 2001 and 2003. Colleagues from across the aisle came to the floor and said the 2003 Bush tax cuts would ``allow us to grow our way out of our current economic doldrums.'' What did we get? Massive debt. And the Bush tax cuts ``will aid the people and businesses who make up our economic machine and get it moving down the tracks at full speed again.'' We got massive debt, and wages did not go up. The train derailed, growth was anemic, and middle-class families saw very little lasting benefit. If this approach worked, if trickle- down economics worked, I would be supporting this. There is no evidence that this has ever worked.
A new analysis of the tax bill is even more skewed to the top than the Bush tax cuts. Economist Bruce Bartlett served as Deputy Assistant Secretary of the Treasury for Economic Policy during the Reagan and George H.W. Bush administrations. Last month, when asked if tax cuts pay for themselves through greater economic growth, Mr. Bartlett said:
That's a lie. It's always been a lie. . . . There's not one
iota of evidence that will support this argument.
In fact, he added that wages actually fell--actually fell--for 10 years after the Tax Reform Act of 1986 was enacted.
The Bush tax cuts didn't benefit middle-income families in the long term. The Reagan tax cuts didn't benefit middle-income families in the long term. What they did was cause the deficit to explode. That is a fact. We all know what happened next. Republican colleagues pointed to the huge deficits. President Bush said that now we need to privatize Social Security, cut Medicare because, oh, my gosh, we have big deficits. Thankfully, Democrats put an end to that plan. Well, another distinguished Republican President once said: ``There you go again,'' and that is true.
The recently passed Republican budget resolution makes it clear that their next step after this is to cut Medicare and Medicaid. In fact, their budget already allows almost $1.5 trillion to be cut from these programs. But don't take my word for it. Take their word for it. Earlier this month, Speaker Paul Ryan made the Republican plan very clear. He said: The next thing we are doing is going to entitlements-- Medicare and Medicaid. In fact, after the numbers that just came out and the fact that even with dynamic scoring--what many would call ``voodoo scoring''--it doesn't solve the problem on deficits. So it means cutting Medicare and Medicaid may be suggested even sooner.
You have huge tax giveaways to the wealthy 1 percent, which causes the deficit to explode and causes them to cut crucial programs like Medicare and Medicaid. That is the scenario that is in front of us.
I hope people will remember this. This is only step one. When folks come back and say: Oh, my gosh, there is a huge deficit; we have to cut Medicare and Medicaid, they will remember this debate and this time.
Middle-class families see their taxes go up. They see their healthcare costs go up, and they see Medicare, Social Security, and Medicaid cut. This is worse than a one-two punch. It is a one-two-three punch, and middle-class families will feel every blow.
Michigan families deserve better than this. American families deserve better than this. American families deserve real tax reform that creates jobs and incentivizes companies to bring
jobs back to America by closing loopholes, not creating new ones; that protects our farmers, helps our small businesses, and puts more money in their pocket. That is what I support.
They deserve to be told the truth about the end goal of this Republican tax plan. If Republicans mean it when they say middle-class families will get at least $4,000 more in wages, well then, everybody should be voting for my motion to commit because American working men and women know the proof is in their paycheck. The proof is in your paycheck. The proof is in your paycheck. That is what every single man and woman working today is going to look at--their paycheck.
All I am saying is that, if you are going to tell them there is $4,000 more, then we are going to measure that in the next 2 years. If there is, that is terrific, and if there isn't, this tax scheme should stop.
I yield the floor.
Mr. President, in a few minutes, we are going to be voting on a motion of mine that actually dovetails with what the distinguished Senator from Florida was talking about in terms of hard- working people who have been told there will be a minimum of $4,000 put into their wages based on what is being done in the Senate with the Republican tax proposal. We have no evidence of that. In fact, we have no economic scoring that shows that. We have no evidence in the past that has ever been done with supply-side economics. If that is true, at least $4,000 in people's wages is great. I think that is wonderful. We want to guarantee that. We want to make sure the proof is in somebody's paycheck.
I am very pleased to have Senators Casey, Van Hollen, Udall, Cardin, Booker, Wyden, Menendez, Harris, and Brown joining me in a very simple approach that I would hope everybody would support. If you are confident that what is being done here in this supply-side tax cut is going to end up with $4,000 in the pockets of middle-class families, then let's make sure it is true. Let's make sure that happens.
We are going to measure this in 2 years. If it doesn't happen in the next 2 years, then the tax cuts stop. Why? Because all they are doing is blowing a hole in the budget. All they are doing is creating more deficits and not putting money in people's pockets.
I hope everyone will join me. I agree, we have hard-working folks who have
seen their wages flat for years. They have seen not only their wages flat but their pensions attacked, and they find themselves in a situation where, yes, they are working, but the wages are down or maybe it is two jobs now instead of one in order to be able to keep the same wage, but they feel like they are treading water and not getting ahead. Folks are talking a lot about that, about wanting to help middle-class families. Great. I have a lot of folks in Michigan who would love to have $4,000, $5,000, $6,000 more in their wages. I would love to support something that does that.
Let me go back and say, it didn't happen under the Bush tax cuts, even under Reagan tax cuts. Wages were flat for the next 10 years. It certainly didn't happen in Kansas with what they did, doing the same kind of supply-side economics. If this could actually work, sign me up. I think people deserve to make sure that promise will be kept.
I would urge that we vote to make sure the proof is in the people's paychecks, and that is what this motion is.
Will the Senator yield for a question?
How many years do you think it will take before folks get their $4,000--2021, 2022?
Mr. President, if I could just have 15 seconds, the people in Michigan want to know when they are going to get their $4,000. That is all.
Mr. President, I ask for the yeas and nays.