Thank you, Madam President. I am going to take a couple of minutes to lay this motion down and then leave the floor. I will come back. Senator Grassley will be here in about a half an hour. I know he wants to speak to this motion. So the…
Thank you, Madam President. I am going to take a couple of minutes to lay this motion down and then leave the floor. I will come back. Senator Grassley will be here in about a half an hour. I know he wants to speak to this motion. So the total time consumed should not be more than that, but exactly when we will do the time I am not precisely sure.
Madam President, I have a motion at the desk.
Madam President, let me simply describe in about 90 seconds what this motion does, and then I will come back and make the presentation for it in a moment. This motion would instruct the House and Senate budget conferees to assume a 1-year extension of the alternative minimum tax so-called patch, in other words, that the filers who have not had to pay that would not have to pay it in the future for another year.
Also, it assumes an extension of the tax extenders, as we call them. Those are the provisions of the Tax Code that have already expired, things such as the R&D tax credit; plus those that expire at the end of this year, things such as the various energy tax credits; and some international tax credits that have always been the subject of our extender policy.
These tax extenders and the AMT, alternative minimum tax, fix would not have to be offset by raising taxes on others. That is the key point of this motion, that we extend the relief we have given to filers-- about 26 million filers this year--from the alternative minimum tax, and extend the various so-called tax extender provisions that are traditionally extended here, and that in neither case would we be raising taxes in order to pay for them.
Madam President, I will reserve discussing this further until some of the other speakers are here to make the motion.
I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I had earlier filed and Senator Grassley had spoken on a motion to instruct conferees. An alternative has been presented by Senator Conrad. I wish to discuss both of them, this motion to instruct conferees on the alternative minimum tax, and the so-called tax extenders.
Each year Congress is required to fix the AMT because without such a fix--around here it is called a patch--but without such a fix, it would apply to, last year 22 million people, this year 26 million people. It was never intended to apply to those people.
It was originated about 20 years ago because there were a couple hundred millionaires who were not paying taxes because of all of their credits, deductions, offsets, and so on. People in Congress thought that was not right, so we said: Well, no matter what, even if you have enough other tax shelters to eliminate your tax liability, we are going to make you pay an alternative minimum tax, no matter what. But it was not indexed for inflation, so now everyone is going to have to be paying it. Each year Congress says: Well, we did not intend that, so we will fix it so you do not have to pay it this year.
The question is not whether we are going to relieve taxpayers from that--we will--but whether the rules of the Democratic majority that it has to be paid for will, in fact, be implemented so that we have to raise taxes in order to save taxes, save people from having to pay taxes. Obviously it does not make any sense to say to taxpayers: You should have not to pay the alternative minimum tax, but under the Democratic rules we have to raise your taxes so that the Government does not lose any money from us relieving you of that tax liability. That does not make any sense.
So each year we waive that requirement. All we are saying here is we need to do that again this year. I understand the pay-go requirement is part of the Democratic rule around here. It has not been applied in the past for a very good reason: It makes no sense, and it should not be applied here either.
We never intended that this tax apply to 26 million taxpayers, we never intended to collect the revenue, we are not going to collect the revenue. So why do we have to make the Government whole for revenue that we never intended to give it in the first place, especially since it means raising taxes on people in order to ``pay for the reduction in revenues to the Treasury''? That is what this resolution is about.
The other half of it is to instruct the conferees that we need to also extend the so-called extenders. Now, that is shorthand around here for a variety of tax provisions which provide various credits and other relief to taxpayers such as the research and development tax credit. But we only do that a year at a time, so every year about this time we have to start talking about passing the extenders package. We are going to do it; there is not going to be any debate about it. The distinguished chairman of the Budget Committee made the point earlier that agrees with us that this needs to be done; it is a question of how we do it.
What we are doing is saying here, today, we need to do it in the following way: Pass it as we did last year. You do not have to raise taxes somewhere else in order to ``pay for it.''
This is not a case that make any sense for us. If you are going to give tax relief, why would you raise taxes to have to pay for it? We are not counting on any revenue. Every year we do it this way. So why the charade that somehow we have to raise taxes to pay for something we never intended to collect revenue from in the first place?
That is what this resolution does. Let's strip away the pretense here that somehow or other we are going to pay for it. ``Pay for'' are not the right words anyway. That starts from the presumption that the Government owns all of this money, and that if we ever decide to give the taxpayers a break so they do not have to pay for it all, the Government gets to make up the revenue some other way.
How does the Government make up revenue? It taxes people. That is the only way the Government makes revenue. So the assumption is, well, the Government deserves all of this money, and if we ever say we are not going to collect some of it because we want people to keep more of it, then we have to make that up some other way, obviously by raising taxes.
I would rather start from the other premise, which is that the money belongs to the people and especially in times of economic downturn it is important that they be able to use, in the way that they deem most beneficial, the income they have earned, and that when we say we are going to relieve them of the alternative minimum tax liability, for example, we are doing that for a reason, and we do not need to start from the premise that it is the Government's money and somehow we have to keep the Government whole and give the Government money by raising taxes even though they were never going to collect this AMT revenue in the first place.
This must sound like a strange debate to the American people. But that is what the rule the Democratic majority has in place would require. That is what the budget would require. All we are saying is, since we are going to be passing a budget, let's instruct the conferees on the budget here that is not what we are going to do here. We are going to do it as we have in the past, as we did last year. We are going to pass the AMT relief, we are going to pass the extenders, and, no, we are not going to raise taxes on someone in order to pay for them.
Now, what is the alternative that the distinguished chairman of the Committee comes up with? It is the identical motion I have, with one other provision. It is this addition:
And that we should insist that every effort should be
made--
That is a sure sign for: We are not really going to do anything about this, but we at least want to make it sound good--
to offset the cost of these policies by closing the tax gap,
shutting down abusive tax shelters, addressing offshore tax
havens without raising taxes.
Well, I am glad we have the ``without raising taxes'' in there, because none of us wants to raise taxes. But this reminds me of the candidates, and we have all seen them out on the stump: Yes, we have a huge Federal budget deficit, but I want to spend more money. The way we are going to pay for it is we are going to end waste, fraud, and abuse in Government. That is a sure sign for a politician who has not figured out how to get the money in any other way. Everyone is going to end waste, fraud, and abuse. You know, I used that phrase in a sort of facetious way, but actually I think it is in here.
Shutting down abusive tax shelters. There we are. Abuse. Waste, fraud, and abuse. Addressing offshore tax havens. The reality is, the Finance Committee on which we sit comes up with offsets to offset true tax policy whenever we can, and we have wrung out our Tax Code for every last dollar we can find that involves waste, fraud, and abuse.
There are not any abusive tax shelters out there. If they are out there, we have not found them or we would sure enough have gotten the money from them. The same thing about offshore tax havens. We have gotten about $60 or $70 billion from these, and there is no more to get. If there is, we would have gotten it by now.
Then there is the tax gap. The tax gap is this: Not everyone pays all of the income taxes the IRS thinks they owe, and the problem is we do not know exactly who has not paid. But the estimates are that if most businesses in an industry pay $100, and some only pay $80, the assumption is that maybe those that only pay $80 probably ought to be paying more. We cannot figure it out, but we think the money would be there if we had a better way to account for it.
We have held hearings, and the experts basically say: There is not much more you can get. You probably would have to pay more to find it than it is worth to collect.
We did do one thing, though. We actually subcontracted out to some tax collectors. If they can go out and find some and they can bring it back, they get a little piece of the action. It would help us because they would collect some of these revenues.
The only thing from the other side is, well, let's eliminate that policy. We are not going to send these guys out to try find where these taxes are. So if they intended to collect the revenue or to end or minimize the tax gap, they would not be sponsoring the legislation to fire all of the people we hired to go out there and find the revenue.
The bottom line is, this is a nice sounding phrase, but it is like the person that goes out and says: I am going to end waste, fraud, and abuse. That is how I am going to pay for all of the new spending I am recommending.
I urge my colleagues to support the motion I have filed, the motion that Senator Grassley spoke to, and to reject the motion of the chairman of the Budget Committee which, at the end of the day, recognizes the reality. We are going to do the AMT patch. We are going to do the tax extenders. We are not going to pay for them. So let's don't pretend like we have to find revenue from someplace else in order to make this happen.
I reserve the remainder of my time and inquire how much remains?
How much remains on the other side?
I yield the floor.
The following Senators are necessarily absent: the Senator from Tennessee (Mr. Alexander), the Senator from Tennessee (Mr. Corker), and the Senator from Arizona (Mr. McCain).
Further, if present and voting, the Senator from Tennessee (Mr. Alexander) would have voted ``aye.''
Both the chairman of the committee and I have resolutions that are almost identical. They both call for us to extend the so- called patch for the alternative minimum tax which otherwise would affect about 26 million taxpayers this year; to extend the so-called tax extenders package that has tax provisions like the R&D tax credit in it for another year, and to do so without raising taxes.
The addition on the Conrad motion is to use our best efforts to shut down abusive tax shelters, address offshore tax havens, and to close the tax gap.
Since I assume we are all for ending any waste, fraud, and abuse, I cannot disagree. I would be pleased to take votes on both of these motions by voice vote.
The following Senators are necessarily absent: the Senator from Tennessee (Mr. Alexander), the Senator from Tennessee (Mr. Corker), and the Senator from Arizona (Mr. McCain).
Further, if present and voting, the Senator from Tennessee (Mr. Alexander) would have voted ``nay.''
The following Senators are necessarily absent: the Senator from Tennessee (Mr. Alexander), the Senator from Tennessee (Mr. Corker), and the Senator from Arizona (Mr. McCain).
Further, if present and voting, the Senator from Tennessee (Mr. Alexander) would have voted ``nay.''
The following Senators are necessarily absent: the Senator from Tennessee (Mr. Alexander), the Senator from Tennessee (Mr. Corker), and the Senator from Arizona (Mr. McCain).
Further, if present and voting, the Senator from Tennessee (Mr. Alexander) would have voted ``yea.''
The following Senators are necessarily absent: the Senator from Tennessee (Mr. Alexander), the Senator from Tennessee (Mr. Corker), and the Senator from Arizona (Mr. McCain).
Further, if present and voting, the Senator from Tennessee (Mr. Alexander) would have voted ``yea.''