Mr. Speaker, I am delighted to be here this evening on behalf of the Progressive Caucus in Congress, which is in very strong opposition to both the House and Senate versions of the tax scam that is speeding through the United States…
Mr. Speaker, I am delighted to be here this evening on behalf of the Progressive Caucus in Congress, which is in very strong opposition to both the House and Senate versions of the tax scam that is speeding through the United States Congress this week. We have several members who would like to participate in this.
Mr. Speaker, I yield to the gentleman from Rhode Island (Mr. Cicilline). He is a passionate representative of the people of Rhode Island and a real champion of the American middle class.
Mr. Speaker, I thank Mr. Cicilline for his strong leadership for the people of Rhode Island and his dedication to the middle class of America, which is besieged and under attack today in Washington, D.C. You know, the former Secretary of the Treasury, Robert Rubin, came and said that this is the worst piece of tax legislation he had seen ever in the history of the United States of America.
Now, the good news is that the American people have taken a look, and they don't like it. By more than 2-1, the American people in public opinion polls are rejecting this plan. The Quinnipiac poll found that American voters are rejecting the plan by more than 2-1, with 52 percent disapproving and only 25 percent approving. Every day, the more people find out about it, the more that they hate the guts of this bill and what is inside of the tax plan.
We are in a situation of ``beat the clock'' now. Can we get the information out to the people, Mr. Speaker, about what is in this bill before it is rammed through the United States Congress?
So let's start with this: 82 million middle class households are going to see their taxes go up over the next decade. They are going to completely obliterate the State and local tax deduction, which States like mine, Maryland, New Jersey, Connecticut, California, Illinois, are going to be killed by, because if you make investments in your educational infrastructure, if you make investments in the transportation infrastructure, now they want to abolish the State and local tax deduction and make you pay twice for the same money that you have earned, while driving pressure down on the States to eliminate investment in the people who live in the States.
Well, so they are going to raise taxes on millions of middle class families. Why? So they can slash taxes for the wealthiest corporations and the wealthiest people in the country. They want to slash the corporate tax rate from 35 percent to 20 percent at a time of record corporate profits in America.
They say that everybody is going to get wage increases by that. But we have already got record corporate profits, and we have seen wage growth be stagnant under the policies that are being propounded by the GOP in Congress.
If you want to increase people's wages, increase the minimum wage. Have some courage. Have some honesty. Let's increase the minimum wage. Let's give America a raise. That will work, not just showering billions of dollars more on the richest people in the country.
By the way, it is not just the richest people in the country. One- third of corporate ownership in America goes to foreign investors. That is right. So if we decide to give $1\1/2\ trillion to investors in America with a corporate tax break, one-third of that money is going to leave America immediately and go to China or Saudi Arabia or wherever the rich corporate investors are.
The purpose of this bill isn't even just to enrich the wealthiest people in America. It is to enrich the wealthiest people on Earth because the money is going to be flying overseas as soon as we institute this corporate tax cut.
Then they build up record deficits: $1.5 trillion to $2 trillion in deficits on the House and Senate plans--which are twiddle dumb and twiddle dumber--$1.5 trillion to $2 trillion that the children, the grandchildren, and the great-grandchildren of the middle class are going to be paying back for decades so there can be a party on Wall Street; so there can be a party among the 1 percent; so Donald Trump's family, according to The New York Times, can collect up to $1 billion in tax relief.
How are they doing it?
Well, for example, they want to abolish the estate tax, which right now applies only to two of the richest 1,000 families in America. You take 1,000 families, only two of them are even paying the estate tax because it applies only to the wealthiest people in the country. They want to abolish that; totally in contradiction to the design of the Founders of America who did not want to see the transmission of millions, much less hundreds of millions, much less billions of dollars from one generation to the next because they understood that the intergenerational transmission of that kind of wealth is a threat to democracy.
At a certain point, people have enough houses, they have enough yachts, they have enough helicopters.
And now what do they want to buy?
They want to buy a governorship. They want to buy a Senate seat. They want to buy a whole institution like the House of Representatives or the U.S. Senate.
That is not democracy, and the Founders knew it. That is plutocracy.
So the radical economic inequality, which they want to cement into place with this tax bill, is a direct threat to the Democratic values of country, the Democratic values of the Founders of America.
They want to eliminate the student loan interest deduction and lifetime learning credits, a direct assault on middle class upward mobility. They want to make it much more expensive for young people to go to college and then to pay their loans back.
They want to eliminate the medical expense deduction, which millions of families have used in order to take care of a loved one who has a serious long-term illness or is in long-term care. They just want to get rid of the medical expense deduction. You should read the letters and the emails that I am getting from families that are saying: ``This will bankrupt us.''
Right now, under the medical expense deduction, if you are spending more than 10 percent of your income on medical expenses, you can start to deduct it. They want to get rid of that.
Oh, guess who else that hits as collateral damage in the war against the middle class.
Families with children with special needs. Right now, families with children with special needs can go to a private school and they can deduct the tuition and expenses of that education as part of the medical expense deduction.
Well, the GOP wants to get rid of that, too, because I suppose life is just not hard enough on families in America who have kids with autism or kids with muscular dystrophy or kids who face any other manner of physical or neurological or mental or emotional problems.
We should be on the side of the families who are struggling with special needs children. We should be on their side. We should be on the side of the State and local governments that are trying heroically to address it. Instead, this legislation will pull the rug out from beneath families with special needs.
They want to impose dramatic new limits on the mortgage interest deduction, which, again, has been essential for the middle class to be able to partake of homeownership, which has been so much a part of building the middle class in our country.
Now, because the public is rebelling against this terrible tax plan the way the public rebelled against their terrible ACA repeal plan, which would have stripped 30 million Americans of their healthcare--by the way, the Senate plan now has smuggled into it a provision which would go back to the discredited ACA repeal plan by trying to throw millions of people off of their healthcare by overturning the individual mandate.
Well, the public has figured this out, and, here, in Washington, it is a race against the clock.
Will the tidal wave of public opinion reach Washington in time to stop them from passing a special interest tax scam, which appeals only to the top 1 percent of the country? Or will they be able to get it through in time?
But I appeal to my colleagues across the aisle, I beseech them, and I beg them to revisit the whole thing. This is not how we accomplish successful tax policy in the United States of America.
We did it in 1986. The Democrats and Republicans came together to do it.
You know how we did it?
With more than 2\1/2\ years of hearings, discussions, policy debates, town hall meetings all over America. We invited the best ideas to come from all sides, and it passed overwhelmingly in the House of Representatives. It passed overwhelmingly in the U.S. Senate. The tax reform proposal, at the end, had been vetted and debated so much, everybody had contributed to it, it was so uncontroversial that it passed the House on a voice vote overwhelmingly, maybe unanimously. Nobody even asked for a rollcall vote. The Senate passed its version by a near unanimous vote of 97-3.
You see, that is how you do real tax reform. You bring the parties together to do it. There were more than 250 witnesses who appeared in the House Ways and Means Committee, who appeared before the Senate Finance Committee. Sure, there were some knockdown, drag-out fights; sure, the Democrats and Republicans were fighting like cats and dogs, but we were committed to coming up with a consensus product that would work for America, and we did it.
What we are seeing in Washington today is the exact opposite. The determination is to pass a completely partisan piece of legislation at all costs, with a very narrow majority running over the minority completely, and it is not going to work because America is a democracy. Taxation is the way that we support our government; the projects that we develop together. In taxation of all fields, we need to make sure that we are getting the best ideas from all sides. You can't ram it through and you can't crush the opposition.
What we are going to end up with--if they do manage to power this through with every manner of a backroom deal and a sweetheart contract and special interest strings attached, if they do manage to get it through, what you are going to have is a plan that is going to bankrupt the middle class the way that Donald Trump bankrupted four or five businesses.
The difference is that if you bankrupt a hotel, if you bankrupt a casino, if you bankrupt a corporation, well, there were laws that allow you to get back on your feet, and Donald Trump used them handsomely. He got back on his feet through the bankruptcy laws.
But what happens if you bankrupt the middle class of America? What happens if you bankrupt the government of the United States?
This is irresponsible. This is not responsible governance that is taking place, to be advancing a plan that a recent Secretary of the Treasury has called the worst tax plan ever ventured forth in the history of the United States of America.
We asked the majority in the House and the Senate to pull the plug on this terrible assault on the middle class, pull the plug on the tax scam, and let's go back to the hearing rooms and let's have some real hearings, let's have experts come in and let's look at how to relieve the tax burden on hardworking middle class taxpayers, relieve the tax burden on families that have special needs children, relieve the tax burden on people struggling to go to college and graduate school.
Why don't we try to bolster and strengthen the charitable sector and colleges and universities and schools across the land instead of trying to undermine them in order to occasion a dramatic shift of income in wealth up the ladder in the country?
Let's get back to work together, because if you are able to muscle this plan through the House and the Senate using every trick in the book except for negotiation and compromise and cooperation, it will be a disaster for the American people.
It will come back not only to haunt the political careers of people who assented to it and participated in it, but it will come back to haunt the entire country because the deficits and the debt will be out of control. We know that from every nonpartisan budget estimate and economist that has looked at it, every single one across the spectrum. Even the ones who are using the GOP's preferred method of dynamic scoring are saying it is going to be hell in terms of deficits and in terms of the debt.
So we are going to end up having to cut Medicare, Medicaid, and Social Security. That is what they are going to target next.
Whatever happened to the budget hawks? Are they an extinct species now? They are certainly an endangered species. Or have they just become budget ostriches?
They are hiding their heads in the sand while this highway robbery takes place in the Halls of Congress. Then they will come back next year, and they will say: Oh, look at these terrible deficits; we have got to cut Social Security; we have got to cut Medicare; we have got to cut Medicaid.
Now, suddenly, we are reborn as budget hawks again. We are born-again budget hawks. We can expect that to happen.
In the meantime, economic inequality in the country will continue to deepen and spread, and economic desperation will spread. We don't need to do this, Mr. Speaker, we do not need to do this. We are at a time of record corporate profits; record corporate prosperity. Wall Street has never been riding higher than it is now.
Why do we need to cut corporate taxes from 35 to 20 percent? Why do we need to start exporting more jobs abroad by instituting this new territoriality principle for taxes? A very fancy name that they assigned to it, do you know what it means? It means that if a business person is going to set up a factory on Main Street America with 1,000 jobs, they are going to pay full taxes on their business; but if they set it up in Hong Kong, or Singapore, or Mexico, or Switzerland, or the Cayman Islands, they are going to pay zero on it because it is not made in the United States. That is in this bill.
Now, they say they are going to recapture some of the money if it gets really obscene, but why should we have that principle at all now? In fact, the law today is compromised enough. It says that if they relocate their businesses abroad, they don't pay taxes until the profits are repatriated--until the profits come back. Now, all of it is on paper. The companies haven't really moved anyplace. That is dubious enough as it is.
They want to make the current system worse. They want to say that if you set up your business abroad, if you ship it overseas, either really or on paper--like to the Cayman Islands, or something like that--you escape taxation completely. Maybe we will be able to recapture a little bit of it later through some accounting tricks, but basically this is a massive invitation to corporate America to outsource jobs overseas--to ship our jobs overseas.
Now, I know the President of the United States is not much of a policy wonk. I am not sure if they have apprised him of this provision yet.
Mr. Speaker, I hope someone who is in touch with the President of the United States gets in touch with him and tells him that his campaign promise to put America first--promise to put American jobs first--and the tax plan that he is about to append his name to, if this actually happens, will be responsible for outsourcing and offshoring millions of American jobs, and profits, and taxes. That is built into this legislation, with a lot of other nasty surprises that surface every single day, as we try to figure out what is happening on this speeding train of the tax plan.
This process has nothing to do with representative democracy; it has nothing to do with integrity in the work of the people's representatives.
So, we ask our colleagues: Let's take a breather. The American people don't like what they see. They are rejecting it by more than 2 to 1 in all of the polls.
I have spoken to my colleagues across the aisle, who are getting very nervous about their emails, and their letters, and their calls right now, just like they got very nervous about the ACA repeal--which seemed like a great idea, until they had a majority in Congress--and then they realized that they were going to throw millions of people to the streets.
Now it is a question of whether or not you want to outsource and offshore millions of jobs, whether you want to drive a $1.5 trillion or $2 trillion hole in the American deficit and in our economy, and whether you want to, basically, loot the middle class for the purposes of a big payday on Wall Street, and among foreign investors from Hong Kong to Saudi Arabia?
Well, that is the question. That is the choice that faces America this week, Mr. Speaker. That is what we are looking at. And who are we as a people? And do we have some sense--some semblance even--of community such that the GOP would want to try to get even 10 votes or 15 votes from the Democrats? No. All of the Democrats are opposing it.
Fortunately, 13 Republicans have crossed the aisle to say that they cannot stomach what they are seeing in this bill. We understand that there may be more coming this week, who are saying that they simply cannot tolerate what is taking place with this legislation.
But, as always, Mr. Speaker, this is a democracy that we are aspiring to be, not a plutocracy, not a theocracy, not a family government, not a royal government, but a democracy, which means that we place all of our faith and hope in the people to speak up, to talk to their representatives, to get in touch with them, and to ask them to read the fine print, so that we are not voting for a tax scam, instead of a tax bill.
All of the American people have a responsibility to get in touch with their legislators, Mr. Speaker, to ask: What is in the bill, and how is it going to affect us and the more than 80 million middle class families, who are going to end up seeing a tax hike over the next decade? And how is it going to affect people who take the State and local tax deduction and people who use the medical expense deduction for their families? And how is it going to affect people who have graduated from college and now are struggling to buy a house, or to get an apartment, or to move out of their parents' basement? And how is it going to affect them when the deduction for college student loan interest is abolished?
We need to slow down. We need to examine the priorities and the values that are built into this bill and see whether they actually square with the values, the beliefs, the priorities of the American people, and the needs of the American people.
We think this legislation is way off, Mr. Speaker. We ask the GOP majority to consider the unanimous opposition of the democratic block in Congress; we ask them to consider the public opinion polls, which show the American people rejecting the details of this bill by more than 2 to 1; and we ask
them to start over. Let's do it the way Congress did it back in 1986, when Tip O'Neill and Ronald Reagan got together, and the Democrats and Republicans talked about it, fought about it, and debated it. But they came up with a plan that, in the end, the vast majority of Congress and the vast majority of the people could support.
Let's not walk the plank for the 1 percent here. We know that there are some tiny interests in America that want to see this pass. Let's not walk the plank in Congress for a bill that reflects the interests of only the tiniest group of people. Let's do the job imagined by that great Republican President, who served in this body, proudly, from Illinois, in the House of Representatives: Abraham Lincoln, who spoke of ``government of the people, by the people, for the people.'' That is the part of that great triad that we will be betraying if we pass this bill, because it is not for the people, it is for the 1 percent.
Mr. Speaker, I yield back the balance of my time.