Mr. Speaker, I yield myself 5 minutes. Mr. Speaker, America does, in fact, face a retirement crisis. Nearly half of Americans approaching retirement years have absolutely no retirement savings. There is not much gold in their golden years.…
Mr. Speaker, I yield myself 5 minutes.
Mr. Speaker, America does, in fact, face a retirement crisis. Nearly half of Americans approaching retirement years have absolutely no retirement savings. There is not much gold in their golden years.
Four out of 10 Americans in a recent survey indicated that they are living paycheck to paycheck. They are barely making ends meet. They had little or nothing available in reserve.
When they were asked if they could meet a sudden, unexpected $400 medical emergency, 4 out of 10 Americans said they could not even do that.
Those are the individuals who certainly do not have the resources to save enough to set up a standard of living in retirement comparable to what they had before retiring.
So, as usual, our Republican colleagues are masters at naming bills. It is just what they put in the bills that is a problem.
Now, this bill is a good example. This is the Family Savings Act, but whose family gets the savings? Well, if you are out there listening, probably not your family. For families that have little or nothing in savings, this bill does nothing.
Much like the bloated Republican tax scam and its sorry sequel that AARP condemned this very day, this Republican bill is all about helping those at the top and doing little or nothing for those who are struggling to have a golden year in retirement.
There are, in fact, some modest measures that they have got tucked in this bill that I support and that AARP supports. And I agree with AARP that we should encourage more small employers to offer retirement plans. I am all for the little good parts in the bill. It is just the giant omissions that I oppose.
The first of those omissions is the almost half of Americans that they forgot about, that they left out of this bill.
As usual, the second big problem is they haven't got the slightest care about how this bill is paid for. They are going to go out and borrow more money from the Saudis and the Chinese and anybody else we can beg for to pay for the debt in order to pay for this. They don't pay for a penny of it. That is consistent with their approach, the proud success of this past year, adding trillions of dollars to the public debt because they don't care about it anymore. All their budget deficit hawks, they flew south for the winter, and they stayed there.
The people who can't save at the moment for retirement, they are the folks who rely on one of the most important programs and set of programs that this Congress ever approved, and that is, of course, Social Security and Medicare--over Republican objection.
Now everybody seems to be for those programs, but they are jeopardized when you add trillions of additional dollars to our debt, and that is what this bill contributes to. It adds $21 billion in debt. Nearly half of its cost is for what they call ``universal savings accounts.'' They should be better known as universal tax shelters. And they will do little to increase retirement savings. Rather, they will be universally exploited by people who are already saving to get a little bit more tax benefit.
Over the next five years, existing tax incentives--before this bill is ever approved, those that are already in the law--for retirement savings will cost us over $1 trillion. One study found that two-thirds of the benefits of this $1 trillion of tax expenditures goes to the top 20 percent of Americans.
I don't begrudge any of them. One of them is me. One of them is every Member of this Congress. I think we need to encourage Members of Congress and all Americans to save more.
I expect that those of us who are using these tax-advantaged accounts now don't need a great deal of additional incentive to use them to the maximum. What we do need is to help those Americans who couldn't afford that $400 emergency or who have nothing in retirement savings except their Social Security check. It is not that they don't want to save. It is that, if you can't pay $400 for a doctor bill you didn't expect, you are not going to have very much saved when it comes time to retire.
Now, surely this Congress can do more for these families. I must say, I don't really mean this Congress. I mean the one that is coming in January that cares about the retirement crisis we have now, not the one that has shown indifference to half of Americans.
What we get today, instead, is just another tax incentive for shifting retirement savings around.
Mr. Speaker, I yield myself an additional 2 minutes.
Mr. Speaker, to take full advantage of this bill, you need to have about $100,000 in income. If you even look at this bill, as the Joint Committee on Taxation has done, you will see that two out of three Americans are not expected to use it at all because it doesn't help them.
And what about the one-third who will use it? They are the people, like me, like the other Members of Congress, who earn, on average, twice the median income in this country.
So it does help those of us who have been successful, those at the very top who are the wealthiest. It doesn't help the rest of America.
For those with the resources, the Joint Committee on Taxation looked at the huge price tag on this bill, and they said that what we are basically looking at, and I quote it, is it ``derives from taxpayers shifting savings that are allocated to other types of taxable accounts into a universal savings account'', so just moving the money around.
And we now have a study that really shows what a great job these guys have done with reference to this concept. It is a study that shows, for every dollar of additional debt you get--a little bit of a similar program that was studied--you get 1 penny of additional savings. That is the bargain they are offering us today, really. Spend a dollar, borrow a dollar from the Chinese, and you will generate 1 cent of additional savings.
So under this so-called universal tax shelter, the earning returns from their investment portfolio allow them to avoid some capital gains tax, cost the Treasury, but the Republican universe just doesn't include many ordinary Americans.
It is those who don't have retirement savings in tax-advantaged accounts, who rely on Medicare and Social Security, we need to protect that basic framework for retirement for, and you don't protect it by borrowing ourselves into further debt.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself 30 seconds.
Mr. Speaker, before yielding to Mr. Davis, let me say this is not about lifting all boats; It is about lifting all yachts. And the 40, 50 percent of Americans who have only a leaky rowboat going into retirement don't get a dime out of this bill.
As to the tax bill as a whole, Republicans came out and bragged, the President put it in writing: You will get $4,000 in additional income trickling down to you every year from this corporate tax cut. Now we know that only 4.4 percent of Americans have gotten a dime of additional compensation as a result of this tax bill. If you have got anyone in Ohio, in Pennsylvania, or in Texas who got their $4,000, I hope you will call us, because I am looking for the first person.
Mr. Speaker, I yield 5 minutes to the gentleman from Illinois (Mr. Danny K. Davis), a distinguished member of our committee.
Mr. Speaker, I yield 3 minutes to the gentleman from Wisconsin (Mr. Kind), who has been a leader on retirement issues and was one of the sponsors of the original form of this bill, which has changed a good bit, and on other retirement legislation.
I yield an additional 2 minutes to the gentleman from Wisconsin.
Mr. Speaker, I yield 3 minutes to the gentlewoman from California (Ms. Judy Chu), a valued member of our committee.
Mr. Speaker, I have no further speakers, so I will close at this time and initially yield myself 5 minutes.
Mr. Speaker, the Republican tax bill has given us trillions of dollars of additional debt, and so, tomorrow, they propose to freeze in some additional provisions that will add hundreds of billions of additional debt to what they have already incurred.
They would depart for the elections, carefully timed with tomorrow's debate, so that the last thing the voter hears is that the Republicans have passed another tax bill.
Of course, none of its provisions will affect any American for 7 years. That is what they have to offer us: freeze in some inefficient provisions that are not really targeted to ordinary American families that have a special provision in there specifically for Donald Trump and other real estate magnates, a provision they hid and tucked in the conference committee and then put in the final law, one special interest provision after another. They want to freeze all of that in and offer the American people the mirage of relief in 7 years.
This bill that they signed into law as their big tax deal will cost this generation and future generations a huge amount of money just paying the interest on the debt that they have achieved, and having done nothing in this Congress to advance retirement security, having done nothing in this Congress to encourage more savings by more Americans.
They come here on the eve of our departure for the elections with this big family savings account bill. It also proposes to borrow more. It has a great new universal savings account in it. The only problem is that two-thirds of Americans won't take advantage of this universal savings account because it offers them no advantage whatsoever.
As usual, those Americans have been excluded from the Republican version of what the universe of Americans really is.
The cost of doing this is not only in terms of new debt, but a very inefficient approach where you pay, as indicated by the study of a similar program, you have $1 lost, $1 cost in this borrowing, and you get 1 penny of additional real savings.
Now, I am amused a little bit to hear my colleagues come and agree with me about the challenge that American families face of not having $400 to meet an emergency medical expense. How in the world are any of those Americans going to benefit in the slightest from this proposal?
It advantages people who have $100,000 or more with the universal savings account. They are not in that category. If they can't afford a $400 medical expense, exactly how much savings do you expect them to have under this bill? A big zero is what we are talking about.
It is a big zero in large measure because, despite this great tax bill they approved, real wages in America have remained stagnant during the Trump administration.
He has not been able to raise real wages because he continues to engage in supporting programs, just like the one before us today, that are aimed at those at the top and think somehow the benefits will trickle down to everyone else.
It is those people who will not benefit from today's legislation, who are excluded from the great universe that Republicans see. It is those people who rely on Social Security and Medicare, which Republicans have proposed changes in, in their budget proposals, have discussed a variety of ways to trim them, that we can't afford them in their current form.
Well, what, precisely, have Republicans accomplished about Medicare in this Congress? Well, they have a rather significant accomplishment that I have to note. As a result of their tax bill, they have reduced the solvency of the Medicare trust fund by 3 years, 3 years taken right off the Medicare trust fund's future as a result of their tax bill--by a variety of independent sources that have evaluated the impact.
Meanwhile, they are using that tax bill and the debt they have accumulated with reference to the amount of money that we have for Pell grants and other student financial assistance, for Medicaid and the role that it plays, and for other vital services saying: We just can't afford them because we borrowed these trillions of dollars from abroad, and we don't have the resources to meet our other needs.
With every tax policy that they propose, Republicans seem to insist on leaving working families behind. And they have the gall then to turn around and tell those same working families: You have to pay for it in interest, in cuts to Medicare and Medicaid, and other services.
Now, there is another really important point about this, which Mr. Kind addressed, because just like the bill we will take up tomorrow, just like the bill we are taking up right now, just like this huge Republican tax sham, there is much in common. The number one thing in common is that not one official in any of the departments in the Trump administration had the guts to come over and face our committee and answer questions about it.
They did not bring a single Trump administration official to discuss, explain, justify, how any of this conforms with all his ridiculous campaign promises. There was none of that on any of these bills.
They kept their bills in secret until the last minute after having no public hearings, inviting no businesses, no academic experts from around the country. They plopped these bills out and rushed them through just as quickly as possible, so there will be as little consideration as possible.
Then they talk about the desire for bipartisan comity after doing this kind of thing. Well, there are many bipartisan ideas out there that could have been considered. Mr. Kind's proposal is designed to help poor people, working people save for college or retirement, and give them some incentive for that. That is an idea that could have been considered.
Mr. Neal, the ranking member of our committee, has advanced some other important ideas concerning savings to expand the savers credit that would help many of these working families get the savings that they need to prepare for their golden years.
Mr. Larson, another member of our committee, has worked on cutting taxes for many people under Social Security with modest incomes and seeing that those who have been more successful pay the same rate on all their income that those who are not at the top of the economic ladder pay on theirs. He has a plan to ensure that Social Security will be solvent through the end of this century.
Those are the kind of creative proposals that we have advanced, but we can't get a hearing on them. We can't get an opportunity under today's bills or any of these others to offer an amendment to add them. The only way we are going to have an opportunity to address those creative proposals and do something for a universe that we define as including all Americans, not just those perched up comfortably on the top of the economic ladder, the only way we will do that is with a new Congress of caring, concerned people who are willing to listen, regardless of whether they agree to divergent views, and try to come up with a truly American answer to resolve this retirement security problem.
I believe that those Americans who are working out there today, trying to make ends meet, who won't benefit from this bill are worried about the tax breaks that have gone to those up at the top, how they will threaten all that they have worked and paid for in their future, and the callous indifference it shows to their children and their grandchildren, who will be saddled with this Republican debt for decades.
The late Texas Senator Ralph Yarborough, a distinguished servant of our State, talked about putting the jam on the lower shelf so that everybody could reach it. Well, this bill puts the jam at the top for the one-third of Americans up there at the top who might use some portion of this bill, but it leaves out the two-thirds who can't reach quite that high.
This bill is not what America needs to achieve retirement savings. In so many ways, Republicans are ignoring the needs of working families.
They are ignoring prescription price gouging, doing nothing about it, and they are ignoring our healthcare needs. In fact, their tax bill actually weakens, significantly, access to healthcare and jeopardizes Americans with higher premiums as a result of a healthcare provision that they snuck into their tax bill.
They show no concern for a living wage for Americans. This bill is just part of that same narrow-mindedness and that same refusal to look at a universe that applies to all Americans. They are leaving families that are struggling to make ends meet behind. They are certainly not letting them reach the jam that they deserve to be able to access, as Senator Yarborough talked about.
Let's reject this bill and look forward to a day, a very hopeful day, for Americans in which all Americans can have their say and we can get a Congress that will resist the injustices of the Trump administration and will reach out to support a better future for our country.
Mr. Speaker, I urge rejection of this bill, and I yield back the balance of my time