Mr. Speaker, I thank the gentleman for yielding. It is not often that I come down and participate in these Special Orders, but I have got to tell you I was in my office watching the previous speakers, and I started to get a little queasy…
Mr. Speaker, I thank the gentleman for yielding.
It is not often that I come down and participate in these Special Orders, but
I have got to tell you I was in my office watching the previous speakers, and I started to get a little queasy from the spin that they were providing from the floor, talking about what they say this bill will do. I can tell you that there were a lot of inaccuracies in some of the things that they were trying to convince the American people that they would benefit from this.
As Mr. Neal said, this bill, this vote, is an important vote. This is going to be around a long time. Numerous speakers today have mentioned the fact that the last time we did major tax reform, a major tax overhaul, was over 30 years ago. So if that is any indication, we are going to be living with the consequences of this bill for a long time, and I don't think those consequences are anything to be proud of.
We heard repeatedly that this bill is not going to help at all the wealthiest people in the country, and you just can't help but laugh.
The last speaker came out and stated that this does away with the alternative minimum tax. The alternative minimum tax was put in place to ensure that the wealthiest of taxpayers actually pay taxes because they were able to escape paying taxes, so that is why the alternative minimum tax came into play. They are the ones who pay this tax, so if you do away with it, I don't see how you can, with a straight face, say that this doesn't help wealthy Americans.
Inheritance tax was talked about a lot. As a matter of fact, it was a very dishonest discussion. They kept referring to it as the ``death tax.'' We have heard this ad nauseam. We heard it in committee. We hear it on the floor. We have heard it for the past few years. This has been a very clever campaign on the other side's part to discredit the inheritance tax.
If you open the Code, the Tax Code, there is nothing in the Code that says the death tax. It doesn't exist. It is not real. It is made up. It is fiction.
We heard some very compelling arguments about how farmers will lose their farms if they don't do away with the death tax. There is no such thing as a death tax.
We heard repeatedly that, after somebody dies, it is unfair to make them pay taxes. I am here to tell you, after you die, you will never have to pay taxes.
The inheritance tax refers to inherited wealth. If I inherit money from my parents, then I am taxed on that wealth that I inherit. And there is a provision in the law that says the first $11 million doesn't get touched, so it has got to be a pretty huge estate before you even pay any taxes on it.
If there was all this concern about losing the family farm, then the Republicans should have taken up my bill, a bill that I have had for a number of years with absolutely no support from the Republican side of the aisle, that says, if you inherit the family farm or a family business and you continue to farm it or you continue to run the business, you are deferred from paying any inheritance tax. Now, if you inherit it and sell it and take the money and move to a beach in Hawaii, then you would pay a tax on that inherited wealth.
So this is subterfuge, at best. It is dishonesty, at worst.
The last speaker said that American families are big winners in this bill. Well, I don't know whose American family he was talking about.
Mr. Neal was right when he said American families had a chance to be big winners if we had used this opportunity to invest in workers, invest in training, invest in community colleges, create jobs, create opportunities, build this tax reform from the middle class, the working class out.
But, instead, we didn't do that. We didn't even talk about it. We didn't talk about it because we didn't have a single hearing on one of the most important bills that we will cast a vote on in our time in Congress. We didn't hear from one expert witness.
They dropped this bill, written in secret. As a matter of fact, many of our Republican colleagues were complaining that they didn't get a chance to see what was in the bill. They dropped this on us at the last minute.
We could have worked with them. We could have addressed some of these issues. We could have figured out how to invest in the American worker. We could have figured out how to make investments that created jobs. But, no, we didn't get to do that because we didn't have any hearings. It was written in the middle of the night, in a dark room someplace way out of our wheelhouse.
They said they had to do this because the Tax Code was too big, and I agree with them. I think it is too big. I think it does need to be reformed.
But the fact of the matter is, and Joint Tax testified on this, if their bill is passed and signed into law, it won't do away with a single chapter of the Tax Code, but, instead, it will add one more to it. So this is literally making the Tax Code bigger.
And I want to know who those American families are who some of my colleagues on the other side of the aisle claim will be helped by this, because this is what I see in reading this and reading the analyses from different experts.
If someone in your family has Alzheimer's, you will pay more because they are going to take away the medical expense deduction that you now can take advantage of.
Low-income folks with kids, you are going to pay more when you are excluded from the child tax credit.
If you are a teacher, dedicated to your students and to their well- being and you take money out of your own pocket to buy pencils, supplies, and things for your classroom, today you get a deduction for that because we know how important education is. But under this bill, you will pay more because they are taking that deduction away, too.
We just heard from a veteran on the other side who said how great this is for veterans. Well, let me tell you, if you are a veteran and you get your duty station reassigned and you have to go someplace else and the house you have to sell in your first duty station, if you haven't lived in it for 8 years, you are going to be taxed on any profit from that. So if you are a veteran and you get transferred, you are not going to benefit from this. You are going to lose.
Do you have a student loan? And we all know how expensive those are these days. If you do, you are going to pay more because they are taking away your ability to deduct the interest payment on your student loan.
Do you own a home? If you do, you will pay more when they limit the mortgage deduction, mortgage interest deduction.
By the way, as we heard in committee during the markup on this bill, this could actually decrease the value of your home by 10 percent. Now, tell me how that helps working class, middle class families to say, all that money that you have been saving by buying your home, we are going to take 10 percent away from the value of that? That certainly doesn't create a big win for American families.
Are you in the middle class, that big win for American families, those middle class families? Because the analysis says that 36 million middle class families are going to see a tax hike in this bill.
Do you deduct your State and local taxes? Well, if you do, you are going to pay more because you are going to lose that deduction, too.
Do you care about infrastructure investments in your community?
I had a visit yesterday from the head of the San Francisco airport. He came in because of this bill. I don't represent San Francisco, but he came in to see me because I am a member of this committee, and he knew we were going to be taking this bill up.
They have a tremendous amount of infrastructure investment pending. They do it with the bonds that will be disallowed under this bill, the same, similar type of action that they are going to do in regard to low-income housing.
In my State, we need housing badly, and we are able to build low- income housing by using those bonds that are made available in our Tax Code. That goes away. That hurts homes. That hurts people who want to move into homes.
And I will tell you, in my district, it is a particularly raw subject right now because in one of my counties, Sonoma County, we had a 2 percent vacancy rate in residential housing about a month ago. And about a month ago now, we had the worst fire in California history. In Sonoma County, it wiped
out 5 percent of the residential housing stock. There were about 9,000 homes, total, in the fire that were destroyed, homes in Sonoma, homes in Napa, homes in Lake, homes in Mendocino, homes in Butte, homes down in southern California, and that just further deteriorated the housing shortage problem that we face. So to take away ability to construct new, low-income housing hurts.
But I think what hurt even more is, in this bill, they took away the ability for individuals and families, those middle class families that they are talking about helping, they took away their ability to write off their losses due to a disaster.
I don't know how they did that. I don't know why they would do that.
Well, that is--I wish I could say that is the $64 million question, but, sadly, it is going to cost taxpayers a lot more than $64 million when all is said and done. It is a mystery to me.
I asked the chairman, who wrote the bill, during the committee markup, why he would do that, and he had no response. He said: Well, we are going to fix it. We are going to make it better.
There were no hearings.
No hearings, and they didn't fix it.
No hearings.
Mr. Speaker, let me just thank the gentleman for drawing attention to the terrible fires that did so much damage in my home State, and the fact that they took the deduction for these types of disasters away from the American people. But I don't want anybody to think it is just about fires, nor is it just about my State.
They took away this provision in the Tax Code for anybody who has a disaster from now on. If it is a mudslide, an earthquake, a fire, any disaster, you will not be able to claim that deduction.
And to add insult to injury, the chairman grandfathered in the hurricane victims in his own district.
I will just say one more thing. If this isn't all bad enough, everybody should know that all of these costs that we have talked about are bad enough, but there is one cost in here that is crippling, and it is crippling to our children and our grandchildren, and that is the fact that this bill is not paid for, and it adds $2.3 trillion--that is trillion with a T--to our national debt, and that is going to be passed right along to our children, right along to our grandchildren, and that is going to hurt us in the years to come.
Mr. Speaker, there have been no hearings on this bill, there have been no expert witnesses. The only help that we have gotten are from the outside organizations and the universities that crunched these numbers to be able to give us some glimpse of what is going to happen and the benefit of some analysis from the Joint Tax staff, but there have been no hearings, there have been no experts, nobody from our district who lives and breathes this, no one from our districts who are going to be impacted by this.
This was done from the top down and crammed through in the most bastardized system that I have ever seen in my years here.
The gentleman is absolutely correct. Thank you for pointing that out.