Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in opposition to the American Innovation Act. But before I talk about the underlying bill, I want to make clear that this bill is part of the Republicans' larger…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in opposition to the American Innovation Act.
But before I talk about the underlying bill, I want to make clear that this bill is part of the Republicans' larger tax scam 2.0. Instead of increasing opportunity or addressing the income inequality for Americans, the Republicans are doubling down on their failed policies that benefit the wealthiest Americans and are ultimately paid for by the middle class.
As a result of the Republicans' tax law, health insurance companies in
State after State are announcing higher premiums for next year, while health coverage for those living with preexisting conditions is on the chopping block. To make matters worse, the Medicare trustees cut 3 years off the life of the Medicare trust fund because of the Republican tax bill.
But instead of backing away from their mistake, the Republicans are doubling down. Their second round of tax cuts for the wealthy will further compromise the future of Medicare and Social Security, depriving seniors the benefits they have earned.
Not to mention, Republicans are cutting taxes for the rich for the second time in less than a year. By simply making permanent the cut to the top individual tax rate, Republicans are providing a huge tax cut for just a fraction of the top 5 percent of taxpayers.
At the same time, the Republicans have doubled down on their attack on the middle class by making permanent the limits to the State and local tax deduction. In fact, in my home district in California, 37 percent of tax filers claimed the SALT deduction in 2016, and the average SALT deduction was $18,517 according to IRS data. This is nearly double the cap that Republicans have put in place, and that means that middle class families in my district are footing the bill for the wealthy's permanent tax cuts.
In addition, Republicans are also permanently limiting the mortgage interest deduction and casualty loss deduction.
Furthermore, the so-called party of fiscal conservatism will be passing over $3 trillion in tax breaks in less than a year. Because of the Republican tax law and President Trump's irresponsible policies, the U.S. Treasury is now borrowing money at a rate of $5.4 billion per day.
This package, like the one before it, is being rushed through with no hearings and no input from stakeholders. A rushed and lopsided process resulted in tax bill 1.0, and, in fact, Democrats have identified over 100 problems with the Republicans' tax law.
Republicans are doubling down on their flawed policies with this exercise, with bills guaranteed to be dead on arrival in the Senate. Tax scam 2.0 is another reckless tax cut for the wealthy that leaves behind average, hardworking families.
Now I would like to discuss H.R. 6756, the American Innovation Act.
This bill has never received consideration in a public committee hearing. Last year, the Republicans' rushed process created the end result of a disastrous tax law that is riddled with problems. Yet rather than learn from their mistake, the Republicans are, once again, moving forward with legislation without the appropriate oversight.
Mr. Speaker, I strongly believe in American innovation and entrepreneurship. As the only member of both the House Small Business Committee and the Ways and Means Committee, I know just how critical small businesses are to the growth of our economy. They create two out of every three new jobs and allow people to be their own bosses.
I know that my Democratic colleagues and I would have enthusiastically and actively participated in the construction of bipartisan legislation to help small businesses deduct more of their startup costs. This is something I care deeply about because access to capital is one of the biggest challenges facing our entrepreneurs today. However, Democrats were shut out of the process once again as the bill was rushed to the floor.
With only a few days left for Congress to be in session, the Republicans have yet to address rising healthcare costs and how to pay for innovation and value in our healthcare system.
They have done nothing to stop the haphazard and reckless trade policy coming out of the White House.
And this week, the Republicans are driving these so-called tax reform 2.0 bills down a road to nowhere. If they were serious about helping small businesses and innovative startups, they surely would have not treated these provisions like an afterthought to their 2017 tax bill.
Therefore, I oppose H.R. 6756 and encourage my colleagues to do the same. We should work together to ensure that small businesses and innovative startups have the tools to not just survive, but actually thrive in the economy. We can do better in a fiscally responsible manner that does not recklessly add to the deficit.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 2 minutes to the gentleman from Vermont (Mr. Welch).
Mr. Speaker, I yield 3 minutes to the gentleman from Wisconsin (Mr. Kind).
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, first, I would like to clarify something. I appreciate the comment from Chairman Buchanan regarding Mr. Thompson's amendment, but that does not change the fact that, during tax bill 2.0 and its markup, every Republican present voted against permanent natural disaster relief on H.R. 6760.
Mr. Speaker, Democrats are strong believers in the power of American innovation and entrepreneurship. Democrats support small businesses, which are the backbone of our economy and create two out of every three new jobs. My Democratic colleagues and I would have loved to participate in the drafting of bipartisan legislation to help small businesses and innovative startups succeed, but that is not the process that the majority adopted.
This bill, just like tax scam 1.0, has never received the scrutiny it deserves in a public committee hearing. A rushed and lopsided process resulted in the disastrous tax law. Yet, rather than learn from their mistakes, Republicans are once again rushing through legislation without the appropriate oversight.
This process should tell you how serious the majority is about helping small businesses, which is not very. If the Republicans were serious about helping small businesses last year, they surely would not have enacted their so-called small business tax benefit to disguise a massive tax cut for millionaires.
If Republicans were serious about helping small businesses and innovative startups today, they surely would not have treated these provisions like an afterthought, guaranteed to be dead on arrival in the Senate.
Mr. Speaker, I believe we should work together to ensure that small businesses, ranging from mom-and-pop shops to cutting-edge startups, have the tools they need to thrive in this economy. But we should do it the right way, with hearings and input from stakeholders, and in a fiscally responsible manner, not by saddling future Americans with more debt.
Mr. Speaker, I urge my colleagues to oppose this legislation, and I yield back the balance of my time.