Mr. Speaker, I thank Representative Garamendi for leading us in this Special Order. It is so important that the public understand what is happening here with this issue. The first response ought to be: Here we go again. Trickle-down has…
Mr. Speaker, I thank Representative Garamendi for leading us in this Special Order. It is so important that the public understand what is happening here with this issue.
The first response ought to be: Here we go again.
Trickle-down has not worked in the past--the far past, the recent past. It is not going to work again.
When does trickle-down become trickle-up?
Well, to suggest that this is a tax reform act is really pulling a trick on the public. This is about a tax cut, and a tax cut for corporations, a tax cut for the wealthiest amongst us.
This trickle-down theory becomes trickle-up because you are taking and raising the taxes on some 36 million families, those that would be classified as middle class families, those who work day in and day out and don't even earn a minimum wage, but they are working. The poorest amongst us, the lowest bracket, gets an increase in its rates.
How is this fair? How is this economic or social justice?
Both measurements prove that it is false. It is not economically sound. It is not socially just. What we are doing here is playing a game with the economy, and we are putting the economy, the American economy, at great risk.
We have seen major efforts made since January of 2009 to grow the economy, and now we have this scam, this trickery, to go and do a trickle-up: take from the working families, deny their purchasing power, weaken their purchasing power, and give it to corporations, give it to the upper income strata in this country. That is a formula for disaster, and we are going to pay wickedly for this effort.
We have always heard about deficit situations. When President Clinton was in office, when President Obama was in office, the Republicans would talk about a deficit situation. There seems
to be no concern about deficit here, a deaf ear to the deficit.
Borrowing to spend. Borrowing to spend. Borrowing $1.5 trillion, which probably amasses to $2.1 trillion to $2.3 trillion with the cost of borrowing, and using that borrowing to spend on the wealthiest amongst us, be they families, individuals, or corporations.
How does that make economic sense? How does that help the economy?
When we look at this situation, we are going to impact your average family in any of our districts, those who are working to maintain a household, to perhaps put aside some savings for improvements of that household or to assist their children in their pursuits of a career, be it apprenticeship programs or college programs. We are going to hurt these families.
Students will realize that their tuition deduction is eliminated-- eliminated. Students will realize, former students, that their loan interest deductions will be eliminated.
I heard a lot about this, Mr. Speaker, when I was home over the last two weekends. We have always deducted exorbitant medical expenses when we did our taxes. We prepared that for our accountant because we had exorbitant medical fees, medical expenditures, be they for families who are walking through life with Alzheimer's or who are fighting cancer or who have chronic illnesses. They deserve to have that deduction.
I am told, on average, it is $9,000. Seventy-three percent of people who make that deduction are earning less than $75,000. This is a brutal response to America's working families. It is a harshness tossed against this economy that has finally started to churn over the last several years. Now we step up and want to wreck all of that.
We have all sorts of efforts that deny various professions, teachers, for one, who will not be able to deduct for classroom expenses where they will, out of their own pocket, provide greater resources for the children who are in their classes that they teach. They are facilitating this discovery, self-discovery, within children. They are digging into their pockets to make that experience all the more real, all the more magical, all the more important, and here we are going to deny teachers to deduct those expenses, but we won't do that for the businesses that want to reach into their own pocket and spend.
We look at this situation, and we understand who gets a fair shake in this deal, in this scam, and it is regrettable.
Now the talk of a Senate version bringing in the individual mandate? Dollars that are made available for families to realize healthcare coverage, and we are going to penalize them and use that to help pay for this borrowing? This is a disaster.
America needs to see this with its eyes wide open and to call your individual Representatives and ask them to tell you how you are going to benefit from this package.
Somebody today told me it is a once-in-a-lifetime opportunity for tax reform--tax reform. Is there reform in this mess? There are the same old loopholes. We grow more loopholes, and they are getting a tax break in addition. What are we doing to our economy here? This is a terrible bill.
When it comes to the SALT deduction, the State and local tax deduction, you will destroy States by requiring double taxation on the investments they make in their own programs in their State. That will severely impact upon people in my home State of New York.
I think it is a disaster that this House, this majority, the entire majority, would allow this bill to come to the floor.
Before you tell me how you are going to vote on this bill, tell me how you tried to stop it from coming to the floor because it hurts so many Americans. Thirty-six million families will be impacted. They will see a tax increase. That is not my word. It is not Representative Garamendi's word. It is coming from the Tax Policy Center.
People are putting this one under the microscope, and they are detailing what is in here and what is not in here, and this is a scam. It is bringing down an economy. It is taking it in the wrong direction. It gives tax breaks to corporations that want to grow their prosperity offshore and making it more productive for them to take jobs overseas.
How can we tolerate this? No wonder they are trying to rush the bill now. Get it done in a day or two before America finds out what is in it. This is a tax disaster, not a tax reform. It is a tax cut for the wealthy at the expense of the working families and those who work below minimum wage in this country, people who make it their goal to be self- sufficient, and now this is how they are rewarded.
Mr. Speaker, I just would love to point out, I would encourage middle class America to raise its voice. Raise your voices, because when we look at the repeal of the individual mandate that is being suggested here, you are going to rip away healthcare from some 13 million Americans, and that alongside the 36 million families in this country that are going to see a tax increase.
Before that hits home, stand up and speak out. And if you are not going to get a tax increase, if you might get crumbs off the table because, remember, if you weren't at the table, and this was done in veiled secrecy, if you are not at the table, you are probably on the menu.
Here you are going to have these families, 36 million that will get a tax increase, but if you are going to get maybe a crumb off the table, that sunsets, and the other benefits are going to go forever.
This is a monumental change in a tax cut policy. It is not reform. It is tax cuts for the wealthy and corporations at the expense of working families.
Finally, I would just make mention that there would be an immediate $25 billion cut in Medicare. The efforts that were made under the last administration to bring more stability to Medicare, to make certain that it had a longer life out there, are now going to be wiped away. That is a very important program to Americans, very important program. We cannot afford to
have this go through in veiled secrecy on a rush in the next day or two without America knowing what is on the table.
Mr. Garamendi, I would point out, in addition to tinkering with the public utility bonds out there, that public utility financing that will be devastated by this bill, adds to the further woes for building our investments and infrastructure of all kinds.
Mr. Speaker, I would just say: Let's do this with our eyes wide open. Trickle-down isn't going to happen. Tax reform, this is not tax reform. Certainly, tax cuts where you aid the upper-income strata and corporations at the expense of an increase of taxes to the middle class is what this is about. It is pathetic. It is devastating. It is disastrous, and it ought to be denied.