Mr. President, I stand today to highlight the tax hammer, as I would describe it, that is being brought down on the American people relative to the health care bills that are making their way to the floor of the Senate and literally are…
Mr. President, I stand today to highlight the tax hammer, as I would describe it, that is being brought down on the American people relative to the health care bills that are making their way to the floor of the Senate and literally are about to be debated on the House side.
In the Finance Committee bill, there are over $500 billion in additional taxes and fees and fines and penalties. In the House bill, there are over $750 billion in new taxes, et cetera. If you shrug your shoulders thinking: Well, that is a tax on those wealthy people; I don't have anything to worry about; I am not one of them--you are missing something. Actually, nothing could be further from the truth.
In my judgment, these taxes will stifle small business. They are going to shock families who think there is no way their modest income could possibly be taxed more by the Federal Government.
The House bill, let me start there. The first tax is a 5.4-percent surtax on what are referred to as the high-income earners. It raises taxes by about $460 billion. This is a gigantic tax increase. But supporters of it make the case that, again, this is the rich people, creating the feeling that somehow you don't have to worry about that if you are not making a lot of money. But what they don't want to acknowledge is that this is a tax on business and small businesses. In fact, I would suggest if you wanted to be fair in this debate, you wouldn't call it the millionaire tax; you would call it by the proper name--the small business tax.
The Joint Committee on Taxation released a letter yesterday. It found that one-third of the tax--one-third of the tax--will be from business income. The Wall Street Journal has said this recently, and I am quoting:
The burden will mostly fall on small businesses that have
organized as Subchapter S or limited liability corporations,
since the truly wealthy won't have any difficulty sheltering
their incomes.
In the United States, there are over 6 million small businesses. Last count, the last available information I could get my hands on, there were over 41,000 small employers in my home State of Nebraska. I have walked through many of these small businesses. I have visited with the people who are trying to keep these businesses going, and they are facing challenges to make the payroll.
Many of these small businesses exist in small communities in my State, and their employees are not just faceless people, people without names. These are people with whom they went to high school. These are people with whom they worship on Sunday, they see at the grocery store. Our small businesses don't want to lay off these people.
Now, what would a 5.4-percent tax do to their bottom line, to their employees, to any potential of hiring in the future, to the communities they support? Well, one can see the impact it will have.
Shawne McGibbon, a former Small Business Administration official, said it very well and, again, I am quoting:
Nebraska depends on small businesses for jobs and economic
growth. During this time of financial stress and economic
instability, policymakers need to remember that the State's
small businesses provide the economic base for families and
communities.
Maybe to some from big cities or States that are mostly urban, the loss of 50 jobs is not a big deal. I can tell my colleagues it is a big deal to me. It is a big deal to my State. Fifty jobs in a community of 1,000 people is absolutely devastating. Those paychecks no longer spent on Main Street can literally bring Main Street to its knees.
Making matters worse, this tax is not indexed for inflation, so what can we predict? What is the most certain thing we can predict about this tax? It is going to have the AMT problem all over again. Each year it is going to creep down, every year capturing more and more people in the middle class.
The second tax I wish to talk about today is the 8-percent penalty on employers who don't offer insurance. Eight percent of their payroll or pay, at least 72.5 percent of workers' premiums, that is what they are faced with. Again, no matter how one sugarcoats it, this is going to cut into wages. For those who pay the 8 percent, that is going to total $135 billion more in taxes taken out of our economy.
The Wall Street Journal, again, I think said it very well recently:
Such ``play or pay'' taxes always become ``pay or pay'' and
will rise over time, with severe consequences for hiring, job
creation, and ultimately growth.
I look over there at the House and they sure seem very determined to throttle the backbone of our economy--our small businesses. I will just tell them as somebody who has represented my great State as a Governor and now as a Senator: You take those jobs out of small communities and you will bring those small communities to their knees.
I pay attention to the wisdom conveyed back home. That is why we do our townhall meetings and we walk in parades and we do everything we can to listen to the people.
A constituent from Pierce, NE, a small community, a great community in our State, said it very well:
With my husband self-employed, around 30 percent of our
income is required to pay income taxes. If these income taxes
weren't so high, we would be able to afford and choose our
own insurance coverage. More taxes for public health care is
not the answer.
I wish to reference the Senate bill and a third tax--the penalty tax on individuals without insurance. It provides that if you don't have a government-approved health plan, you will pay a penalty of $750 for singles and $1,500 for married couples. The Congressional Budget Office has analyzed this penalty. Almost half of those paying the penalty tax would be between 100 and 300 percent of the poverty level. In some States, these good folks qualify for government assistance programs. So we are going to tax them or penalize them and then give them subsidies. Boy, only here could somebody make an argument that is rational. It makes no sense to the people back home.
Listen to this: A family of four earning between $23,000 and $68,000 in 2013 would be saddled with the new tax. We are literally talking about taxing not just the middle class but even below that level.
I remember a pledge being made. Last year, President Obama said:
No one making less than $250,000 a year will see any form
of tax increase.
Yet a family of four earning $25,000 will be hit with a tax within a few years. Boy, that is a long way away--$25,000 from $250,000.
Nebraskans believe they can make better decisions about their own health care than the Federal Government. Let me repeat that. Nebraskans believe they can make better decisions about their own health care for themselves and their families than can the Federal Government. I stand here today to tell my colleagues I agree with them.
A constituent from Kearney, NE, said:
Is there anything I can do to take a stand against what I
consider a huge tax burden and a loss of freedoms?
The individual mandate--just one more example of government intrusion into people's lives.
I have covered three of the tax hikes pervasive in the bills, but it is the tip of the iceberg. There are new taxes, penalties, and fees as far as the eye can see.
There is a very fitting quote from John Marshall. He said: ``The power to tax is the power to destroy.'' The power to tax is the power to destroy.
As the health care debate continues, all of us should remember Chief Justice Marshall's wise words. Make no mistake about it. These various bills raise taxes and put burdens upon the American people at a breathtaking pace. Don't be fooled that this is all about taxing the rich people and the millionaires. This is really about taxing and taking from the American people, and Americans are seeing the truth.
Thank you, Mr. President. I yield the floor.