Mr. Speaker, I thank the gentleman for yielding me this time, and I will just make a couple of comments. To my colleague from Texas who said if we want to get this done and help these families, we need to follow these instructions, we do…
Mr. Speaker, I thank the gentleman for yielding me this time, and I will just make a couple of comments.
To my colleague from Texas who said if we want to get this done and help these families, we need to follow these instructions, we do not. We need to go ahead and pass the legislation that came out of the House and the conference committee with the Senate and take it to the President and have the President sign the law. That would provide the relief not only to those people who have no income tax liability, but it would also provide relief to those who do have income tax liability. Does that not make sense?
Under our legislation, yes, we raise the cap from $110,000 to $150,000; but anybody making over $150,000 as a family, a couple, gets no benefit from this, so this talk about tax cuts for the rich, I do not know where that comes from. It is for middle-income families, working families, all families who pay income taxes, plus for those families who do not have any income tax liability. If you follow the motion to instruct, if you follow the thinking of my friend from Texas, what you would do is make permanent out until 10 years, which is as permanent as we can make it, all of the income tax cuts for those who do not have any income tax liability, but you would not provide the same relief for people who have income tax liability, because guess what? That ends in 2005. So we would sunset in 2005 the tax cuts to people who have income tax liability, who are working every day, trying to make ends meet who, yes, make up to $150,000 and make $50,000, $60,000, $70,000 a year, two people working; we do not give them the 10-year relief, but we give it to folks who do not have income tax liability.
Many people do not have payroll tax liability either. Now, we can argue about State taxes or property taxes, but I just think that is unfair, and that would be the result. You would be taking from people who do have income tax liability, and you would be giving it to people who do not. That is it. The gentleman from Maryland (Mr. Hoyer) laughs, but it is true. Look at the language. Look at the legislation. That would be the result.
Second, is this politics? Gee, I wonder. This went through the Committee on Ways and Means where I sit, it went through the House of Representatives where I vote, it went through the chairman's mark of the committee over in the Senate without a change in the refundability of the child credit. We kept current law, which is what? That people who make over $10,000 a year, instead of having 10 percent of that money be subject to a refundable child credit, it would go up to 15 percent. That is current law. It happens in 2005, it goes to 15 percent.
That is all we are talking about here, remember. Under current law, those who do not have income tax liability get a refundable tax credit up to 10 percent now, and it goes up to 15 percent in 2005. The motion would say it should go to 15 percent now. Why was that not raised in the Committee on Ways and Means? Why was that not raised on the floor when we debated this issue? Why was it not in the chairman's mark in the Finance Committee in the Senate? It only came up in the Finance Committee deliberation when one Senator said, I am not going to vote for this bill unless you immediately increase it from 10 to 15 percent, even though, again, for those who do pay taxes and have income tax liability, it ends in 2005.
So guess what? The Senate said, we have to have two votes. We will go ahead and add the 15 percent right now. Then what happened? That Senator did not vote for the bill. She decided for other reasons she was not going to vote for the bill anyway. Suddenly, my colleagues on the other side of the aisle said, you have left people out, which is what they are saying tonight. We have somehow in the middle of the night as Republicans said we are going to hurt a certain group of people who do not have income tax liability. That is not how it happened, folks; and my colleagues know that is not how it happened. And for those colleagues on the other side who are on the Committee on Ways and Means, why was it not raised there? Why was it not raised on the floor? I think there is a little bit of politics here.
I would just say two things: One, let us provide, as the House did, the immediate 15 percent; let us go ahead and do that and provide some stimulus. We said we were willing to do that. But let us not leave out the people who you are leaving out, and that is the people who work hard every day who do have income tax liability; folks in my district and yours who make $60,000 $70,000 a year, maybe a school teacher and a firefighter. We are saying to them, in 2005, yours will sunset; but for those folks who do not have income tax liability, we are going to go ahead and give them an additional amount of taxpayer money coming from those who do pay income taxes because, well, I guess it is the political season.
The second point to be made is, is this politics? The way this thing happened, the way it has been described, I have to say I see a little bit of politics in it. My colleagues had the chance on the floor. The gentleman from Maryland (Mr. Hoyer) did not raise it on the floor. We had the chance in committee. My colleagues did not raise it in committee. Suddenly, again, in the Senate, because it was added for someone who in the end did not vote for the bill, and therefore, it was removed because she was not voting for the bill, suddenly it is something that somehow nefariously it got left out.
We did not leave anybody out. We left everybody in. Then the House came back and passed it and said, yes, let us help those in the military and those who make up to $150,000 a year. I think that is fair. I think the motion to instruct conferees is the wrong way to
go. Let us go with regular order. Let us get the House-passed legislation to the President, he would sign it, it could become law, and all of these folks could benefit immediately from the tax relief.
I yield to the gentleman from Maryland.
Mr. Speaker, I yield to my colleague, and then I will yield back the time unless he says something so persuasive that I need to respond.
Mr. Speaker, reclaiming my time, I would say that what the President would like to do is he would like to get this issue off the table and to provide this relief, both to working families who do pay income taxes, which is provided in our bill, but also to those folks who do not have income tax liability.