American Research And Competitiveness Act Of 2014
I thank my friend for yielding me this time. Mr. Speaker, I rise in strong support of the goal to permanently extend the research and development tax credit. Our businesses, large and small, need that certainty. They can't be trying to…
I thank my friend for yielding me this time.
Mr. Speaker, I rise in strong support of the goal to permanently extend the research and development tax credit. Our businesses, large and small, need that certainty. They can't be trying to make budgetary decisions in order to help grow the economy and create jobs on these short-term measures that have been coming through Congress.
What I have an objection to this evening and where the problem lies with this legislation before us today is that none of it is paid for. We have been to this dance before. We know what works and what doesn't work when it comes to the fiscal management of our Nation.
What works is pay-as-you-go budgeting rules. If there is going to be a revenue reduction or a spending increase, you have to find an offset in the budget to pay for it to maintain balance.
We had that system in place during the 1990s, thanks to the budget agreement of 1990 that President George H.W. Bush signed into law and then followed by the budget agreement of 1993, when President Clinton was in office.
Subsequently, with the strength of a vibrant, growing economy in which 24 million private sector jobs were created, along with pay-as- you-go budgeting rules that were in place, President Clinton saw 4 years of budget surpluses at the end of his term, when we were paying down the national debt, rather than adding to it.
Thank God we were at that time because, when September 11 hit--that unexpected disaster against our Nation--we had financial resources with which to respond.
After my Republican colleagues took complete control of the Federal Government during the 2000s, with President Bush's election, they reverted back to bad habits--with two large tax cuts that weren't paid for; with two major wars that weren't paid for; with the passage of a new prescription drug bill, which was the largest expansion of entitlement spending since Medicare was created in '65--and not a nickel of it paid for; the largest increase in discretionary spending since the Great Society--none of it paid for.
When President Obama took office, he inherited a $1.5 trillion budget deficit in his first year. They have not been shy in laying the blame of fiscal mismanagement in the structural annual budget deficits at the current President's doorstep, and yet this is exactly what gets us into this spot.
Now, with regard to the policy behind the permanent extension, you are not going to hear much dispute or much debate about that. This is all about who is going to be fiscally responsible and do the hard work of trying to find offsets in the budget to do it the right way, so we are not leaving a legacy of debt to our children, so we are not continuing to borrow from China.
We can go back over the last 4 years and repeat the same statements that we have heard from my Republican friends about the need for fiscal management and tough decisions in budgeting.
What is perhaps the height of cynicism this evening is that, in a few short weeks after having passed the Republican Ryan budget resolution, they are violating it here tonight. It called for offsets for any permanent extension in the Tax Code, and that is not what we are doing here.
What is really disheartening is there is a plan B. To Chairman Camp's credit, a few weeks ago, he released a comprehensive tax reform draft discussion in order to simplify the Code, to make us more competitive, to broaden the base, and to lower the rates; but he paid for it through some tough decisions with expenditures that don't make sense to help us be competitive in the 21st century.
We can go back to that proposal and look for some of the items that Chairman Camp, himself, was proposing as a
way to pay for this permanent extension tonight. Earlier this year, President Obama, in the budget he submitted, had items of pay-fors within the Tax Code that we can scrub because there is overlap between the two.
Really, what this comes down to is who is serious about doing the tough stuff, which is finding offsets in order to do the good policy that we are missing here this evening. Yes, we should be finding a way to permanently extend the R&D credit. Our businesses, large and small, need that certainty.
My name is on this bill, but it was always under the proviso that we would be fiscally responsible in moving forward and not leave this legacy for future generations. I also think we ought to be doing a permanent 179 expensing for our small businesses and family farmers.
It is another expensive item, but there are areas in the Tax Code we can look to in order to find offsets to pay for it, which I also think is important for the job creation and economic growth we need in this Nation.
We are $17 trillion in debt, and people are wondering who is to blame. You can look this evening at a bill before us today that calls for $156 billion over the next 10 years--not a nickel of it paid for.
We can do better. We have to do better for our children and for future generations. The clock is ticking on all of this. We don't have this luxury of delaying the tough decisions anymore.
There are other avenues that we can take, and I am confident, if we were to sit down and talk to each other, we could find some common ground and bipartisan agreement of what would be acceptable offsets in the Revenue Code in order to do this permanent extension here tonight.
That requires a little more effort, and that requires--God forbid-- having to say no to some constituents and powerful special interest groups in this town from time to time.
The easiest thing in the world is to offer a tax cut without paying for it. Who doesn't want tax relief? That is not difficult, but it is also not the tough budget decisions that they were talking about just a few weeks ago on the floor, when they were passing the Ryan Republican budget resolution.
If you would go back and look at it again, to its credit, it called for offsets for permanent extensions.
So what is true here? Are they truly committed to the fiscal responsibility that is called for in that budget resolution? Or is that all just a numbers game, in order to make the numbers add up?
With the first opportunity they have to violate that resolution, they are going to do so tonight with an unpaid-for permanent extension, and that is just $156 billion in the first 10 years. This will be a gift that keeps on giving, if we don't find offsets in the future.
I would encourage my colleagues to think hard and long about this because this is just the first of six tax extenders that will inevitably be coming up. I hope this isn't the pattern we are going to be seeing with the five additional ones, in that they are going to come forward without any pay-fors and say: let's load up the debt, and let's claim that the economy is going to grow and that everything is going to be fine afterwards.
We know that hasn't worked in the past. It is not going to work tonight. I encourage my colleagues to vote ``no.''
We have got time. We can work with the Senate, and we can work with what Chairman Camp was proposing and with what the administration was proposing in its budget. We can find the appropriate offsets and do the responsible thing.
Let's end this legacy of deficit financing, and let's give our children the hope and opportunity that they deserve.
Mr. Speaker, with all due respect to the chairman of the committee--and I do respect him, and he is a friend of mine--he knows as well as anyone that there is a big difference between permanency in the Tax Code and short-term measures to give us some time in order to find out what the appropriate permanent solution will be.
That is, really, what we ought to be doing right now, is trying to find that permanent solution once and for all, but in a fiscally responsible manner. That is how we should be approaching this.
Again, to the chairman's credit, the discussion draft he just released a few weeks ago calls for offsets to the Revenue Code in order to do comprehensive reform, so he belies his own argument from just a minute ago that tax cuts shouldn't be met with corresponding offsets.
I mean, if that is true, then what have we been doing for the last 3 years in trying to do comprehensive reform while still paying for it, so we are not blowing a hole in future budget deficits?