Mr. President, I come to the floor with my colleague from Maryland to talk about the State and local tax deduction. I thank the ranking member of the Senate Finance Committee for his hard work on trying to articulate what is fair tax…
Mr. President, I come to the floor with my colleague from Maryland to talk about the State and local tax deduction.
I thank the ranking member of the Senate Finance Committee for his hard work on trying to articulate what is fair tax policy for Americans. Senator Wyden and I come from parts of the country with probably some of the most unique tax codes. He doesn't have a sales tax in Oregon. We don't have an income tax in Washington.
We are not an expensive tax State. We are not an expensive tax State. There are other States such as Texas, Nevada, and Florida that also don't have an income tax. Under this bill, those States and the citizens of those States, like many others, are going to be penalized. Middle-class Americans are going to have their taxes raised to give a tax break to corporations.
So while we might want to discuss what is fair tax policy as it relates to the competitiveness of our economy, the good news for the people of the State of Washington is that we have very competitive businesses, whether it is Microsoft or Amazon or Starbucks or Costco or Boeing. They are all working hard. They are all working in multiple places, and yes, they are all doing really, really well.
The question is, Do we need to reduce their corporate rate so significantly, and to do so, take money out of the pockets of middle- class families across the United States of America?
The reason I mention Senator Wyden and the States of Oregon and Washington, is that, even though we have a unique tax code, our State's economy has grown faster than the national average every year since World War II. That is to say, the uniqueness of our tax code has not hurt us, and yet in the State of Washington we have had the highest minimum wage for a long time in the United States. Now we are raising it in various parts of our State. We have had a unique view of where our revenue should come from.
Why now? Why now? After 100 years of tax deductibility by taxpayers in this country, why are you taking away their ability to deduct only to give a tax break to corporations that are making record profits? After 100 years, why are you doing this?
Well, I think some of my colleagues have said it best. They have called it double-taxation. You are going ahead after 100 years and saying it is OK to tax the same amount that we pay to the State that you also are going to tax at the Federal level. As one article mentioned, ``Alexander Hamilton in the Federalist Papers said the Federal Government might try to monopolize taxation to the entire exclusion and destruction of State governments.''
That is right. Our Founding Fathers said: Do not have double taxation. So for 100 years--100 years--we protected the citizens of this country. Yet someone over there is thinking: Do you know what? I need $1.4 trillion. Where can I get it? Let's do it on the backs of middle-class families, because they might not notice until 2019 when their tax bill comes and they have a different equation.
I get that my colleagues think they have solved this problem by getting rid of the deductions and now all of a sudden giving you a double standard deduction. I have done the math. I have done the math for us in Washington State, and over 300,000 people in Washington will see their taxes go up immediately, probably paying anywhere from $750 to $1,000 more in taxes. Is that fair? They are sitting in the shadow of these large companies who are making record profits and doing quite well, asking why are they the funders of this tax break. Why are they? Why are we getting rid of a policy that has existed in our country for over 100 years and penalizing them just to give this corporate break?
I can tell you I don't buy the notion that this is going to trickle down to productivity and wage growth. I know what is driving productivity and wage growth in my State. It is a great, educated, skilled workforce. It is staying ahead of innovation whether it is making software or new ways of doing business, and, yes, it is a constant challenge. Those businesses tell me all the time we need more infrastructure, we need more affordable housing, we need a better transportation system, we need better education. So they are very concerned about the ideas in this legislation.
So you are going to tax immediately about 300,000 Washingtonians with a higher tax rate and, according to the Joint Committee on Taxation and other entities, probably by the time this is done, at the end of this bill, over a million Washingtonians are going to pay more money. That is why I am so concerned, along with other States that have been fighting this battle for so long. Why now? Why now? What is the urgency that you are taking away the ability of my citizens to deduct their local sales tax, their property tax, and, in the House case, other expenses, whether they are medical or education or their mortgage? It is just beyond me, when the middle class has suffered so much and has not recovered from the downturn in the economy, that you think the best economic strategy is to take money out of the middle-class taxpayer.
I ask unanimous consent to have printed in the Record a letter from the National Governors Association from Governor Sandoval from Nevada. I mentioned they don't have an income tax. They are highly sensitive to this issue.
Mr. President, their letter says that the deductibility of State and local taxes has been a part of their stability, and they are about meeting the needs of their citizens.
So the notion that we have the National Governors Association, the homebuilders, the Realtors, so many people concerned about this is falling on deaf ears. I guarantee you it will not fall on deaf ears when the citizens have a chance to respond to this.
The notion that we not only are taking away this ability to deduct, but we are also in this legislation making a change to the way inflation is calculated, what is called Chained CPI--I am not going to bother to explain the details to you, but I will tell you this. It will change your tax bracket, and you will be in a higher tax bracket. So besides giving you less deductibility, they are changing a formula and making you pay more taxes.
This bill needs to slow down. It needs to focus on what will help our economy grow, and economists don't believe this bill is going to do much to help the economy grow. It is going to give those corporations money to pay for dividends. Seventy-five to eighty percent will go to their shareholders, and those shareholders and the stock market will do well.
What we also need to focus on is the investment that middle-class families need to stay in their home, to make education affordable, to pay for healthcare, and to have communities work. The fact is, the Fraternal Order of Police is also against this legislation because of taking away of this local deductibility. It is like Hamilton said: Why are you doing this at a Federal level? I thought the other side of the aisle was the States' rights people? I thought they were there to protect the uniqueness of the Tax Code to say that States have rights, to say that States ought to be able to decide their own future. Well, after 100 years, you are taking that away today, and you are going to hear from the citizens of this country who are upset that they have to pay higher taxes just to give these very successful companies a corporate tax break.
I yield to my colleague from Maryland.
Mr. President, my amendment strikes the title requiring oil development in the Arctic National Wildlife Refuge. This refuge is the largest refuge in our Nation and the last pristine ecosystem for the Arctic in North America.
Requiring oil development in the heart of the Arctic National Wildlife Refuge should not be in this bill.
Although the bill text has been changed to address Byrd Rule violations, the Congressional Budget Office continues to estimate that it will raise less than $1 billion over 10 years.
Opening the Arctic National Wildlife Refuge to oil drilling doesn't even meet the $1 billion reconciliation instruction.
It certainly doesn't represent a serious offset to huge deficits in the Republican bill.
To put this in perspective, this represents less than seven one- hundredths of 1 percent of the $1.5-trillion-dollar increase in the national debt that the Republican tax policies will cause.
Drilling in the Arctic has nothing to do with serious budgetary policy, but it has everything to do with evading regular order to pass something that could never be enacted on its own.
In addition to drilling in the Arctic refuge, this bill would sell 7 million barrels of oil from our Nation's strategic petroleum reserve.
A portion of that sale is necessary simply to meet the committee's reconciliation instructions. The sale of oil from the reserve would also provide for a $300 million windfall to four States: Texas, Louisiana, Mississippi, and Alabama.
So this bill is selling off oil from our strategic petroleum reserve in order to pay for oil drilling in the Arctic National Wildlife Refuge.
It doesn't make any sense.
The Arctic National Wildlife Refuge is one of the crown jewels of the national wildlife refuge system.
The U.S. Fish and Wildlife Service, which manages the refuge, describes it as ``the only conservation system unit that protects, in an undisturbed condition, a complete spectrum of the arctic ecosystems in North America.''
It is home to an incredible diversity of wildlife: 47 different species of mammals, including polar bears, grizzly bears, wolves, Dall's sheep, moose, musk-ox, and the Porcupine caribou herd.
The refuge provides important habitat for over 40 species of fish and more than 200 species of migratory birds whose lives depend on the Arctic refuge.
The refuge was first established by the Eisenhower administration. Congress later protected this amazing Arctic ecosystem in 1980. It did so specifically to protect wildlife and wildlife habitat in its natural diversity.
The Arctic National Wildlife Refuge is known as the Last Great Wilderness and is truly one of our last great wild places.
But the provisions of this bill turn the purpose of the Arctic refuge on its head.
It would make oil and gas development on the refuge's coastal plain one of the statutory purposes of the wildlife refuge.
Under this bill, our Nation's most pristine national wildlife refuge will become the only refuge where oil and gas development is required by law.
It opens up the entire 1.5-million-acre coastal plain for oil and gas exploration and requires leasing of at least 800,000 acres.
It requires leasing of areas with the highest oil and gas potential, no matter the consequences for wildlife or the environment.
The bill requires that the Arctic National Wildlife Refuge be managed as a petroleum reserve, which is unprecedented and undercuts managing the refuge for wildlife.
The bill includes no clear requirements to comply with environmental laws or to protect wildlife. Its sponsors, however, say they are not preempting environmental laws, and that, in fact, laws like the National Environmental Policy Act will ``fully apply.''
Given the assurances that environmental and wildlife refuge laws will continue to apply, I do not understand why their bill adds oil development as a purpose of the Arctic National Wildlife Refuge.
Adding oil development as a purpose of the refuge seems contrary to its primary purpose, which is to protect wildlife.
What a no-brainer: The purpose of a wildlife refuge is to protect wildlife. Refuges must be managed that way.
At every other national wildlife refuge in the country, development within the refuge is only permitted to the extent it is compatible with the primary purpose of the refuge: protecting wildlife.
But because the bill makes oil and gas development a refuge purpose, oil drilling in the refuge will no longer be subject to a meaningful ``compatibility determination.''
This bill essentially waives one of the most important management protections that applies to every other national wildlife refuge.
They have to do this because they know that oil and gas isn't compatible with protecting wildlife--it is just the opposite.
This bill does not provide energy security. There is no prohibition in the bill against exporting oil from the Arctic refuge. In all likelihood, much of this oil will end up being exported.
The Republican majority agreed to include only one amendment during the Energy Committee's consideration of this issue, and that amendment required the sale of 5 million barrels of oil from the strategic petroleum reserve to give $300 million to the States of Texas, Louisiana, Mississippi, and Alabama.
The bill has now been amended to require the sale of 7 million barrels from our strategic petroleum reserve.
So at the same time as we are being told we need to ruin a pristine national wildlife refuge to drill for more oil, the very same bill is selling off millions of barrels out of our strategic oil reserve, which was used most recently during this hurricane season to protect Americans from gas price spikes.
The impact of oil and gas exploration in the Arctic National Wildlife Refuge and the danger to its wildlife cannot be overstated. The importance of the refuge for wildlife such as polar bears and caribou have been documented in letters I have received from biologists and other scientists who have worked in the Arctic.
I ask unanimous consent that the letters be printed in the Record.
The Arctic Refuge's coastal plain and nearby waters are designated as critical habitat for polar bears, which were designated as a threatened species under the Endangered Species Act in 2008. Female polar bears head to this area every fall to create snow dens where they give birth to their young.
The Arctic National Wildlife Refuge is also famously known as the summer calving grounds for the Porcupine caribou herd. The herd's range extends into Canada. A treaty between our countries protects the herd and its habitat.
The almost 200,000-member herd has an annual migration of hundreds of miles--and in some cases thousands of miles--wintering south of the refuge.
These caribou are an important food source for many Alaska Natives, but in particular the Gwich'in people, who live south of the refuge. Wildlife biologists argue that the risk to the caribou herd--and those who rely on this herd--could be quite significant.
Do you know what Webster's definition of stewardship is? The careful and responsible management of something entrusted to one's care. Since 1960, under President Eisenhower, this iconic refuge has been protected. Tonight, unless you help strike this, you will be joining the ranks of those that believe in polluting a wildlife refuge, and you will be joining an administration that I guarantee you is going to go down in history as getting an F in stewardship.
The Arctic National Wildlife Refuge is too special and important; it is one of the crown jewels of the National Wildlife Refuge System.
We should not destroy this pristine landscape and allow it to be turned into an oil field.
I want to remind my colleagues of the words of the great environmental steward Olaus Murie.
After decades of scientific exploration in Alaska, Olaus testified in the Senate in 1959 in support of creating the Arctic refuge.
He said, ``We long for something more, something that has a mental, a spiritual impact on us. This idealism, more than anything else, will set us apart as a nation striving for something worthwhile in the universe.''
What is setting us apart today, colleagues, is just the opposite. We are striving for short-term gains.
In a hundred years, when the economic effects of this tax bill are long forgotten, we will still bear the blame for letting go of ``something worthwhile in the universe.''
We didn't create the Arctic coastal plain, and we cannot recreate, but we can surely destroy it.
I urge my colleagues to oppose sacrificing the Arctic National Wildlife Refuge, and to support removing this provision from the bill.
I yield the floor.
Mr. President, pursuant to section 904 of the Congressional Budget Act of 1974 and the waiver provisions of applicable budget resolutions, I move to waive all applicable sections of that act and applicable budget resolutions for purposes of the pending amendment, and I ask for the yeas and nays.