Tax Relief, Simplification, And Equity Act Of 2003
Mr. President, I rise to express my strong support for the Lincoln-Snowe amendment to H.R. 1308 to reinstate the child tax credit for low-income working Americans. The House and the Senate went to conference on the reconciliation bill. For…
Mr. President, I rise to express my strong support for the Lincoln-Snowe amendment to H.R. 1308 to reinstate the child tax credit for low-income working Americans.
The House and the Senate went to conference on the reconciliation bill. For the public at large, when we talk about a reconciliation bill, it is kind of arcane. The House and the Senate confer to get a bill together, with each side presenting the views of its Members. I am not sure I am making it more clear, but I want to make sure this is understood. When those conferees got together, they stripped out this tax credit for low-income working people. I thought that was a most outrageous act.
The Bush tax cut bill was already a handout to wealthy elites. It threw token benefits to some others and virtually nothing to working people. Taking out the tax credit for families earning between $10,500 a year and $26,625 a year added outrage to an insult.
When the President was forced, as a result of the agreements in the Congress, to reduce the tax cut to $350 billion, he and the House Republicans had to search for about $30 billion in ``fat'' to cut out of the bill to meet that target. Why didn't they slow down the reduction in the top rate? It is a pretty easy thing to do. What did they do instead? They went after low-income working families.
These are people who are working at or just above minimum wage. These are Americans who are feeding their families by laboring in cafeterias, cleaning offices, working late at night, working in the factories packing food or making clothing, working in retail chains and small stores across the country--jobs that are traditionally at the low end of the pay scale. These people work hard and are a significant part of our labor force.
I know there are those in the administration who do not have any idea what it is like to work for low wages and try to raise a family on them. I learned what it was like from my parents, who were brought here as child immigrants. They knew what it was like and I knew what it was like because my parents were poor. They worked hard and tried to give their children an example of respect for hard work, and to hold out ideals, even though there was little money.
The Lincoln-Snowe amendment is about restoring the American dream. It is about knowing that this country is a fair and honest place, where someone willing to work can still make a living. It is about knowing that this Government and this Congress respect hard work and loyalty to families. The Bush tax bill telegraphed a terrible shift in the message our Government is sending to the country. Despite the once revered view that hard work pays off and breeds respect, President Bush and the House Republicans failed to support that contention to millions of hard-working Americans.
Why did they do it? Why did they drop a tax benefit that would have helped almost 12 million children who have low-income working parents? Why? The tax credit for hard-working minimum wage families was thrown overboard to make room for even more tax cuts for the highest income earners in our country. The cost of the tax credit to low-income families was $3.5 billion--not an insignificant sum by any means. But we could have found
more than that by nicking the reduction to the top income tax rate by just a little bit.
This is the rate the people at the top of the income scale will pay. We are talking about people who make over $1 million a year. We are talking about the top 1 percent of the country, households with average incomes over $350,000 or so. These are the people who are going to profit most from the President's tax cut. We are going to reduce the rate, the income tax rate that they will have to pay.
If we only reduced that top rate to 35.3 percent instead of a flat 35 percent for the years 2003 through 2005, we would have saved $3.9 billion, and the cost of the tax credit for low-income families is $3.5 billion. That is a lot of money. But not in the context of a $350 billion tax cut package; it is only 1 percent. There would have been more than enough to save the child tax credit.
White House spokesmen repeatedly claimed that President Bush's tax bill would provide a tax cut for every American taxpayer. But that was not true. The final bill left out 8 million working Americans and almost 12 million children. The wealthy certainly got their tax cut. It was approximately $90 billion in tax cuts over 10 years that will go to 200,000 households nationwide with annual incomes of $1 million or more. That is about $450,000 per household.
President Kennedy said, ``To govern is to choose.'' To give massive tax cuts to people who are already well off, and then tell hard- working, low-income families, ``Sorry, there is nothing left for you,'' is awful. That is not a choice I want America to make.
Fortunately, after some gentle pressure from the media and outraged constituents, the Republican majority has seen how egregious that plan was and they now support the Lincoln-Snowe amendment. It is about time we did something to help families who are struggling, and not just the fortunate few who are coasting. We have the opportunity to repair some of the harm caused by the President's unfair tax plan with this amendment. I urge its adoption.
Mr. President, I yield the floor.