Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the subject of my Special Order. Mr. Speaker, today, the Republicans released their tax…
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the subject of my Special Order.
Mr. Speaker, today, the Republicans released their tax plan. Unsurprisingly, it is a gift-wrapped tax cut to the rich. Christmas came early, Mr. Speaker. From huge corporate tax cuts to the elimination of the alternative minimum tax paid by the wealthiest Americans, this tax plan will hurt our economy and prioritize the top earners of our country. But there is one person--maybe a group of people--who is very thrilled about this tax plan, Mr. Speaker, and that person is Mr. Money Bags. Mr. Money Bags is really going to benefit from this tax plan.
First of all, the President himself will greatly benefit from the tax plan. It is impossible to know exactly how much because we still don't have his tax returns. He has refused to release them. We would really appreciate, and we demand, frankly, that the American
people know exactly how much he is going to benefit from this tax plan.
Mr. Speaker, as the vice chair of the House Budget Committee, I saw firsthand how the Republicans rammed through a budget plan that paved the way for the massive Ryan-McConnell tax giveaway to the wealthy. Frankly, as a new Member, I find it an affront to the legislative process and an affront to families across the United States in red and blue States alike that we did not have hearings on that budget, that we are not going to have hearings on this tax plan, which is a complete rewrite of the U.S. economy that is going to be pushed through, apparently, in 2 weeks or less. We still have no score on this because we just saw the details of a tax plan today.
The Republicans have made this habit of relying on fake logic and faulty assumptions. They did it with healthcare and the budget, and it is safe to assume that is what we are looking at here.
These cuts do not pay for themselves. Despite the claims that this tax plan is really going to help middle class Americans, the reality is that it is going to hurt millions of American families just to fast- track tax cuts for millionaires, billionaires, and large corporations.
If the Republicans are so opposed to so-called government handouts, as we are always told they are called, then why is it that they seem to be more willing to hand out everything we have to the wealthiest people in this Nation?
Now, we are still exploring all of the details of this tax plan that was just released today, but there is no question that this bill is going to make sure that the wealthiest individuals and the largest corporations in this country get a tax cut of a million dollars. If you happen to be in the top one-tenth of 1 percent, then bingo, Mr. Moneybags is going to get a million dollars in a tax cut every year.
Consider this: if this tax bill lines up with the budget resolution, then 80 percent of the Republican tax cut goes to the top 1 percent by 2027; the average tax cut for the top 1 percent in 2027 would be $207,000; for millionaires, the cut would be $230,000; and, as I said, for the top one-tenth of 1 percent, you get to have a million dollars a year. For the middle class, on the other hand, 42 million middle class households would face a tax increase.
Let's not be fooled by this idea that the standard deduction is going up, and let me tell you what that means. It means that, along with the standard deduction going up, you are also getting your credits for individual children taken away, the itemization of it.
So if you have a family with several children, as many Americans do, you will actually end up probably being able to deduct less.
Let's also be clear that when you eliminate the deduction for property taxes and State and local taxes, and you cut all of the services that are going to be required to be cut if you are going to pay for this tax cut, then you will end up paying more in your States, both in terms of the SALT deduction, but also in terms of all of the increased taxes you are going to have to pay at the local level to fund things like infrastructure and education.
Let's be clear that this plan gives a $4 trillion tax cut to the wealthiest 1 percent and largest corporations, taxes 42 million working families more, and borrows millions from the future to give those tax cuts.
Last week, in the Rules Committee, I offered an amendment to the Republican budget resolution that would have stopped some of the most egregious impacts of the billionaire's budget.
My amendment would have said that none of the tax cuts proffered in this plan should apply to households in the top 1 percent of income earners. It would have plainly said that the United States is not in the business of giving massive tax cuts to those who are already incredibly wealthy.
Mr. Speaker, I talked about some of the millionaires in my district, because I do have some. I am fortunate to have a good economy in Seattle, where we have a $15 minimum wage, where we have paid family leave for everybody, yet business is still booming, the economy is doing well. We have people who have done well, and they would like to pay their fair share.
For decades, Republicans have prioritized the interests of corporations and the wealthiest ahead of working class families.
What is being proposed in this budget, this tax plan, is exactly what Republicans in Kansas proposed in 2012.
In 2012, a Republican Governor and Republican Legislature in Kansas passed through the same thing. They said: Let's make sure that we have tax benefits for these passthrough corporations--by the way, Donald Trump owns 500 passthrough corporations; he will benefit greatly from this--and let's make sure that we reduce the tax rates on the wealthiest. In doing so, we will make sure that we are investing in the economy.
That meant, by the way, all those tax cuts had to be paid for. So there was a $700 million cut to the Kansas State budget, which resulted in schools not being able to operate full time, resulted in roads being in disrepair, and ultimately resulted in Kansas' bond ratings going down.
In the end, that GDP growth that we were promised, the economic growth that was guaranteed if you were to put the money into the top corporations and the top income earners that were supposed to somehow trickle down, that growth never came to be.
So, guess what happened, Mr. Speaker? The Republican Legislature in Kansas rolled back those tax cuts. They said: That trickle down thing didn't work.
The promises of economic growth didn't work, and ultimately they had to move it back. Finally, Kansas is starting to come out of that by investing in working families.
Ultimately, I believe, and I think Democrats believe, if you invest in regular folks, if you put the money into working families, you give them a tax cut and you make sure that they are actually paying less, not more, even if you say that you are giving them a deduction, in the end, they are paying more in this tax plan. But if you invest the money there, instead of taking $270 billion that is proposed by repealing the estate tax--which only a tiny portion of people pay, by the way; that estate tax--and 5,400 families are going to get $270 billion in this Republican tax plan. I say, let's take that money and give it to working families instead of those.
I think that we have a lot of different options. The Congressional Progressive Caucus has put forward our own budget, a people's budget, with our own tax principles. The bottom line is: we believe in ordinary Americans. We believe if you invest there and you give people the opportunity to work in good jobs, to earn good wages, and to really make sure that they have dignity, respect, and can save for the future and send their kids to college, that ultimately builds our economy.
So I am really honored to be doing this Special Order hour with my good friends and colleagues. We are going to do a little bit of a back- and-forth here.
Mr. Speaker, I yield to the gentleman from Arizona (Mr. Gallego) to have him talk a little bit about what we are hearing. Is it true? Is it hypocrisy? What do you think about those debts and deficits?
Mr. Speaker, I thank Mr. Gallego for his incredible leadership. One of the things, when we think about this plan, there is really--it is a three-step plan.
Number one, transfer trillions of dollars of wealth and tax cuts from middle class working families to the top 1 percent.
Number two, explode the deficit, which we know is part of this deal. We are going to explode the deficit.
Number three, use that exploding deficit as a way to cut spending.
But most of all, I am not sure that the numbers add up. So I wanted to ask my good friend from the Progressive Caucus, Representative Ted Lieu from California, to just weigh in with his wisdom around what exactly is going on with these numbers and what are we seeing in this budget. Does it add up?
Mr. Speaker, I yield to the gentleman from California (Mr. Ted Lieu).
Mr. Speaker, I thank Representative Lieu.
I wanted to just point out that there was a study that was done out of Wharton on the tax plan. It wasn't on this most recent version, but I think the majority of the things that are in this are still true in what they analyzed. What they came out with and said is that the assumption of 3 percent growth does not make sense; that, really, what they are looking at is 1.3 to 1.4 percent, ultimately, growth, and that it would create a $10 trillion deficit over time. I believe it was $3 trillion in the first 10 years. I have to go back and check that number.
Essentially, what they are staying is it doesn't work. The person who actually wrote the 1981 tax cut under Ronald Reagan, who was working for Jack Kemp at the time, wrote an op-ed in The Washington Post, I believe it was, and said: ``This theory of trickle-down economics doesn't work. We were wrong when we did that, when we said that back then, and it is wrong to look at that same idea today.''
Now, Representative Lieu said Democrats are not opposed to tax reform. That is right if it was real reform. We do think that the Tax Code could be simplified, that it could be fair so that small businesses and working families and folks who are really investing in the economy are the ones to get the benefits of any tax reform, that we would close some of the tax loopholes. Unfortunately, this is not tax reform. What has been proposed is not tax reform. It is tax giveaways to the wealthiest.
I want us to be very clear about what the majority is trying to do here. They are trying to rewrite the U.S. economy with absolutely no hearings. It is, frankly, outrageous that we would not even have a hearing on a major tax bill that is going to affect every single person in this country.
We should have hearings. I don't know what happened to regular order. People talk about regular order, but as a new Member who was just elected last year for my first year in Congress, I can tell you I have not seen regular order. I sat on the Judiciary Committee. We don't have hearings in the Judiciary Committee. The majority of the bills that come to the floor are bills that we have never had an opportunity to have a hearing on. When you look at this tax plan, I believe we should be able to have more than 2 weeks to vote on it.
I think every single American should understand what is in the plan and at least have the opportunity to decide whether or not it is beneficial for them. Unfortunately, Mr. Speaker, I don't think that is happening.
Let me just summarize what we think is happening in this current
version of the tax proposal that has been put forward.
First of all, it is a win for the well connected and the wealthy. That is what the Ryan-McConnell tax bill is. President Trump promised the tax reform would benefit the middle class, not the wealthy; but, unfortunately, rhetoric does not match reality. Instead, this bill that we are looking at now would create a new passthrough loophole that wealthy individuals would exploit to lower their own taxes.
Just as an example, a version of this loophole was used by University of Kansas Basketball Coach Bill Self to avoid paying more than $125,000 in State taxes in 1 year alone. The alternative minimum tax, which we call the AMT, which ensures that the wealthy at least pay more of their fair share, is eliminated in the Ryan-McConnell plan.
While little is known about President Trump's taxes, we do know that, without the AMT, the President would have paid $31 million less in taxes in 2005 alone. So you see why Mr. Moneybags over here is so important to this discussion, because that is ultimately who is going to benefit.
Now, Speaker Ryan also believes, as I mentioned, that we should give a windfall to the ultrawealthy by eliminating the estate tax. Again, that estate tax is paid by less than 5,400 families across the Nation, and in 2016, not one person paid the estate tax in seven States.
So what happens to middle class families? Because if all these wealthy folks are going to get all the money, then the question is: So what happens for middle class families? Because that is really where the attention should be. That was what was promised by Donald Trump.
Speaker Ryan and the Republican establishment have attacked commonsense policies used by millions of middle class families in order to pay for this tax giveaway to the wealthy. So Republicans have taken away the ability to write off your State and local tax bills, forcing millions of families to pay taxes twice on the same dollar earned, except for property taxes, up to a mere $10,000. That is the cap that they are proposing on property taxes.
Americans that are hit with significant medical costs, for example, those who have cancer or ALS or Alzheimer's, would lose their ability to write off these costs under the Republican plan.
The Ryan-McConnell tax bill also eliminates deduction for personal casualty losses. A big blow if you are a victim of crime, theft, or disaster. It also excludes--it eliminates the exclusion for dependent care assistance program, which is an incredibly important benefit for working families.
So in the end, you just have to ask yourself: In order to give trillions of dollars of tax cuts to the wealthiest and the biggest corporations, what does that mean for working families?
It means working families are going to foot the bill over and over again. I believe this is a bad deal for middle class families, for America, and for our economy.
One last thing I forgot to mention is that there is actually an incentive. After all of the talk of bringing jobs back to America, there is actually an incentive in this bill to take work and jobs to a tax-haven country because the amount of taxes that you would pay on that is actually lower than the amount of taxes you would pay if you were to start a factory here in Iowa or Kansas or somewhere in the United States. If you were to actually create jobs here, you would have to pay a higher tax rate than if you were to create that same factory in some tax-haven country in other parts of the world where you don't have to pay--you would end up not paying the same amount of taxes. So this is a bad deal for middle class families.
I don't know if my friend, Mr. Jeffries, would like to speak on the tax excellence, so I am really thrilled now to be able to turn this over to a member of the Progressive Caucus, a leader on our Judiciary Committee, Representative Hakeem Jeffries from New York.
Mr. Speaker, I thank Representative Jeffries for laying that out so clearly.
I don't know how he feels about the idea that we haven't had a single hearing on this bill. We are hearing that we are going to vote on it in 2 weeks.
What is his experience? Since I am a new Member--I just joined this year--I thought we had regular order, I thought we got to debate things, I thought the minority got to speak up, and maybe we got to take ideas from both sides. What does he think about the idea that they are going to try to ram this thing in in 2 weeks?
Mr. Speaker, what strikes me is, when you don't have a process, you don't have discussion and debate, and you try to jam something through, it means you are trying to hide a whole lot. So I just wanted to say that there is an article in The Washington Post today about winners and losers in the Republican tax plan, and here is what they say are winners.
This isn't a Democrat saying this. This is The Washington Post saying, big corporations--number one winner, big corporations. American megabusinesses would get a substantial tax reduction.
And, by the way, that is not just on one level, that is a number of levels. And my colleagues over here know that this is the number one plan here, because there is a clear difference of opinion. You all think that, if you invest in these big corporations and in the wealthiest individuals, you would rather put your faith into those folks rather than middle class families across the country who could actually build our economy.
So this bill cuts the top rate that large corporations would have to pay the biggest one-time drop in the big business tax rate ever; I repeat, the biggest one-time drop in the big business tax rate ever.
On top of that, you would get some new tax breaks if you are a corporation, so you would get to lower your bills.
What I have seen in the polling is that Americans across the country think that corporations are already getting too good of a deal and they should pay their fair share. And what millions of struggling families across the country want is for somebody to actually fight for them, somebody to fight for people who are going to work every day, who are doing everything they can to have an American life that pays them enough money to get a job to put food on the table, to send their kids to college, to retire with dignity, a better deal than the raw deal that they are getting right now. But that is the number one winner.
The second biggest winner, according to The Washington Post: the superrich. And that was the estate tax that I mentioned, which only benefits 5,400 families across the United States who pay that estate tax. But we are going to put hundreds of billions of dollars into repealing the estate tax so that those 5,400 families can continue to earn more and more money on the backs of the middle class.
And, of course, the third one is anyone paying the alternative minimum tax. That is Donald Trump. The biggest part of his tax bill that he paid, on the one tax return that he released, was from the alternative minimum tax. But that alternative minimum tax is now getting eliminated in this bill to benefit Donald Trump. And it forces people who earn more than $130,000 to calculate their taxes twice.
There is one more. They said, ``Hedge funds, doctors, and lawyers''-- that is the fourth one that they mention--as the wealthiest hedge fund managers, who are going to, ultimately, get a sizable discount, while ``under the GOP bill, high-earning small-business owners will only pay a tax rate of 25 percent on 30 percent of their business income,'' the passthrough business rate.
The reality is that even though there are some small businesses that are passthrough entities, most of those small businesses do not get the majority of their income as passthrough income, they get it from other things. The only people who really benefit from that passthrough are those hedge fund managers and folks like that.
Who are the losers? Small-business owners. The National Federation of Independent Business, which represents 325,000 small businesses said: Uh-uh, we are not supporting the GOP bill. Why? ``It leaves too many small businesses behind.''
So Main Street is hurting under this proposal.
Who else? Like you said, people in high-tax blue States. So say good- bye to most of the State and local tax deductions from States like California, New Jersey, New York, Connecticut, and my State. My home State of Washington is really going to be hurt by this because we don't have an income tax, so we have very high property taxes, and we have very high other sales taxes. None of that would be--well, property tax, according to this plan, you would get a tiny, little cap on it of $10,000.
And then who else is a big loser? The working poor. Here is what The Washington Post says: ``While the bill includes lots of tax breaks for big businesses and the rich, the bottom 35 percent of Americans do not get any extra benefits.''
So there is one more loser here, which is interesting. It says, ``charities.''
The National Council of Nonprofits says that charitable deductions, when Americans chip in to take care of folks who have been hurt by disasters across the country or they contribute to nonprofits or others, that those charitable deductions are likely to go down under this bill because, interestingly and ironically, the Republicans still enable ``the wealthy to continue deducting
their charitable giving.'' But most people would not be able to get the tax break because they probably stop itemizing their deductions, so you would actually lose all of that.
So I don't know, Mr. Jeffries. I think we are going to have a lot of work to do here to make sure that the American people understand exactly what this proposal is and to really get the word out.
I thank the gentleman from New York for his thoughts.
Once again, I would just draw your attention back to who the real big winner is here in this Republican tax plan. It is Mr. Moneybags.
So if you have got money in bags, millions of dollars, if you are a large corporation, if you are a billionaire, then you are going to benefit from this plan--yes, you will. And you know who is going to pay for that is middle class working families across the country who are going to see their taxes go up, who are going to see their services cut, who are going to ultimately be a part of the plan that has three parts.
The number one part for the Republican plan is transfer trillions of dollars of wealth from middle class America to the wealthiest in the country who don't need it; number two, explode the deficit, because there is no way to pay for this unless you cut a bunch of stuff; and then, number three, cut more. Use the exploding deficit as an opportunity to cut spending even more: raid Social Security; raid Medicare; raid Medicaid.
This is all part of the budget that was passed last week by Republicans. Let me say, there were 20 Republicans who voted against that budget, and I congratulate them for their courage in voting against that budget. It was a close vote. If we had just gotten a couple more, we would have been able to defeat that budget, and we would have been able to at least require a more thoughtful process for how we move forward on tax reform, because part of what that budget vote did is to allow this process to move forward with less democracy, with less vetting, and with less knowledge for the American people.
Once again, I would say that the only reason to do this without a real debate, to rewrite the American economy without a real debate, is if you want to hide who is going to benefit from it. We know who is going to benefit. It is right here. Mr. Moneybags is going to benefit. Working people are going to suffer.
So I know that we Democrats are absolutely committed to making sure that working families across this country, the vulnerable, the low- income, the folks who are struggling every day, who are just making it, who feel like this economy is not working for them because it is controlled by corporations, by lobbyists, by folks who are here not working for the American people but working for their own special interests, we know that Americans want that to stop. Unfortunately, this plan does not do that.
So Democrats are going to fight every step of the way. The Congressional Progressive Caucus is going to fight every step of the way. We have our own People's Budget. We have a real proposal for how to invest in infrastructure, in jobs, in education, in healthcare to make sure that Americans across the country, whether you are in a red State or a blue State, whether you are a Republican or a Democrat, whether you are in rural America or urban America--I actually believe we all want the same things, which is we want to be able to put food on the table; we want to be able to put a roof over our head; we want to be able to go to a job and feel dignity about that job; we want to be able to send our kids to college or to higher education so they can get the skills and training they need and not be mired in student debt-- across the country, $1.4 trillion of student debt that we have, even larger than credit card debt--and we want to be able to retire with dignity.
So, ultimately, my friends, what we are going to have to do as Democrats--and I hope that there are Republicans across the aisle who want the same things and who know that this is a bad deal for middle class families, for working families, for folks who are just struggling to make it, who want to have that better deal, better jobs, better future, we Democrats are going to fight for that.
I hope that we have colleagues on the other side of the aisle who recognize that their districts in blue States, red States, urban, and rural will suffer if this plan goes through.
Mr. Speaker, I yield back the balance of my time.