Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, it is important we understand what the issue is here today and where there is a difference. It is not a question of extending the child credit; we favor its extension. It…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, it is important we understand what the issue is here today and where there is a difference. It is not a question of extending the child credit; we favor its extension. It is not a question of accelerating the 15 percent refundability; Democrats support it and urged it before. It is not a question relating to military families; we Democrats have been urging that before and support it now.
So what is the issue here? It is interesting that my colleague from Michigan does not discuss either of the two
major issues. Somehow by using the term ``families,'' there is the notion that major issues can be avoided, that major issues can be skirted, that major issues can somehow be covered up by the use of the term ``families.'' We are not going to let that happen. Whoever is listening must learn the difference here.
Part of it relates, and now I am talking about the differences between the substitute and this bill, to low-income working families. The substitute would provide more benefits because for working families the threshold was indexed. We want to de-index it. That will help 2.5 million working families. We also want to increase the benefit for every family by indexing the credit.
I also now want to point out two additional major differences. This is not only an extension, this is a new tax break. This is not only an extension of this credit, this is a new tax cut. And for whom? It is a tax cut not really only for families earning $110,000 because they receive some of the benefits of the present system. For example, it goes up to $120,000, $130,000, et cetera. For a family of two with $135,000, they get 375 bucks for each child.
So this really goes beyond the present system, one that provides some relief for families up to $150,000 and in some cases beyond, depending on the number of children. Now, what this is, is a new tax break that goes beyond the $150,000, beyond $200,000, beyond $250,000, beyond in some cases $300,000. This is not a tax break mainly for middle-income families. It is a tax break for Members of Congress who have kids 17 and under. Do we need that tax break? I do not think so. I do not think so.
Under the tax legislation that was passed before, the very wealthy families have already received an ample tax break. And if the first chart would be brought forth, I want to refer to it. This is for family household incomes 200 to $500,000: $7,430, this has been the average tax cut in earlier years. And what this bill would do would be to add 2,000 bucks to it. That is what this bill does. Do not call it just an extension. That is point one.
So when I hear, as I heard earlier today, this is for families to buy diapers, to buy toys, to buy a swing, no. I am in favor of providing, and so are Democrats, the extension for families who clearly need it. I am not in favor of a new tax break for families who clearly do not need it, 250,000 bucks a year.
Stand up and say that you are providing a tax break for them. Stand up and say you are providing a tax break for the Members of Congress with kids 17 and under. What this is, is an example of imbalance of priorities and, indeed, of perspective. And to make it worse, you do not pay for it.
I ask that the second chart be brought forth. And I want everybody to understand what the Republican majority is doing here. This tax cut, the way they have tailored it, the estimate is it is going to cost about $228 billion. Of that, close to $70 billion is because of your new tax break. My gosh, you do not even pay for the child credit that makes really good sense. Okay. Should you not at least pay for a tax break for families making 250 and 300,000 bucks a year? That is not just fiscal irresponsibility; that is fiscal madness.
So that is why I rise today and urge support for the substitute and urge that people vote with some perspective, with some sense of priorities, and vote against the Republican majority bill.
It is not going to pass the Senate. I do not even know how you make it in order in the Senate. If this bill had come out of the Committee on Ways and Means, as I understand the rules, there had to be a waiver by rules in order for us to consider it today because it does not come within any budget.
So what we are doing today is in a sense going through the motions, and I am in favor of making clear to low- and increasing numbers of low-income families the need for a child credit. I am in favor of making clear an extension of the child credit for middle-income families in this country. It does not make any sense to dig a deeper fiscal hole for families making 200, 250, $300,000 a year.
I close with this and everybody take notice: what you are doing by giving a tax break to a relatively small number of families, not all of whom but many of whom are earning 175,000, 200,000, $200,000 a year, what you are doing is, in essence, putting a tax on all of the families of America, if not next year, in the future, because they are going to have to pay for the interest on this deep, deep deficit. And you are just adding to it.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
I want to point out to the gentleman from Illinois that over 2 million children in Illinois will receive more of a benefit from the Democratic substitute than from the Republican bill and only the very wealthiest 4 percent of the families in Illinois will receive any of the new tax cut that goes beyond the extension of the present system.
Mr. Speaker, I yield 3 minutes to the very distinguished gentleman from Georgia (Mr. Lewis), an active member of the Committee on Ways and Means.
Mr. Speaker, I yield myself 30 seconds.
Mr. Speaker, I do not want anyone to be misled by the gentleman from Nevada. The $250,000 figure related to the Alternative Minimum Tax, not to the child credit. The AMT was never intended to apply, except to the very wealthy, and we want to make sure it does not. They have not stepped up to the plate on it.
Also, I want to point out that 400,000 children in Nevada will benefit more from the Democratic substitute than the Republican bill.
Mr. Speaker, I yield 4 minutes to the active and distinguished gentleman from New Jersey (Mr. Andrews).
(Mr. ANDREWS asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I would like to point out to the distinguished gentleman from South Carolina that about 800,000 children in South Carolina will benefit more from the Democratic alternative than the Republican bill, and that less than 3 percent of the families in the gentleman's State would benefit from the additional $70 billion in tax cuts in the Republican bill.
Mr. Speaker, it is now my privilege and pleasure to yield such time as he may consume to the gentleman from New York (Mr. Rangel), the ranking member of the Committee on Ways and Means.
(Mr. RANGEL asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 5 minutes to the gentleman from Maryland (Mr. Hoyer), our distinguished whip.
Mr. Speaker, how much time remains on each side?
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself 15 seconds.
I just want to say to the gentleman, this is not about tax relief for people who need money to buy hamburgers or books. You add $60 billion, $8 billion, $70 billion to the debt, in large part for families making $200,000, $250,000.
Mr. Speaker, how much time is left?
Mr. Speaker, is the gentleman ready to close?
Mr. Speaker, I yield the balance of the time to the gentleman from Texas (Mr. Hinojosa), our very distinguished colleague.
(Mr. HINOJOSA asked and was given permission to revise and extend his remarks.)
Mr. Chairman, on behalf of the gentleman from New York (Mr. Rangel) and the gentlewoman from Connecticut (Ms. DeLauro) and myself, I offer an amendment in the nature of a substitute.
Mr. Speaker, I yield 4 minutes to the gentleman from California (Mr. Becerra), a very distinguished colleague and member of the Committee on Ways and Means.
Mr. Speaker, I yield myself 30 seconds.
Do not keep repeating a big fib. The AMT was not supposed to cover except a small minority of the taxpayers. We did not define a certain amount as middle class. It is not in that legislation.
Do not repeat it. It is not true. This is a child credit. You are adding on to an extension $70 billion in large part, substantial part, for very high-income families beyond $250,000. This is not the AMT; this is the child credit. Get off your big fib.
Mr. Speaker, I yield such time as he may consume to the gentleman from New York (Mr. Rangel), the ranking member of the Committee on Ways and Means.
Mr. Speaker, I yield myself 15 seconds.
Look, the 10 percent applied across the board, and so much of it went to families other than the very wealthy. So much of this proposal of yours goes to families that are very wealthy. That is the difference.
Mr. Speaker, I yield 3 minutes to the gentlewoman from Connecticut (Ms. DeLauro), one of the cosponsors of the substitute.
Mr. Speaker, I yield 3 minutes to the gentlewoman from California (Ms. Woolsey).
Mr. Speaker, I yield 2 minutes to the gentleman from Maryland (Mr. Cardin), a member of the Committee on Ways and Means.
Mr. Speaker, I yield myself 15 seconds.
I want to say respectfully to the gentleman from Georgia (Mr. Kingston), what the majority's bill does, adding a new tax cut, gives a tax cut to Members in the gentleman's position, not to families who are struggling to find money to buy books or buy hamburgers; and to dig a deeper hole for that reason is a mistake.
Mr. Speaker, I yield 2 minutes to the gentleman from Oregon (Mr. Blumenauer).
Mr. Speaker, I yield myself 10 seconds.
I have no idea what the gentleman was referring to. No idea.
Mr. Speaker, I yield 3 minutes to the very distinguished gentleman from Illinois (Mr. Emanuel).
Mr. Speaker, I yield 1 minute to the gentleman from Illinois (Mr. Emanuel).
Mr. Speaker, I yield 2 minutes to the distinguished gentlewoman from Texas (Ms. Jackson-Lee).
(Ms. JACKSON-LEE of Texas asked and was given permission to revise and extend her remarks.)
Mr. Speaker, I yield 1 minute to the gentleman from Washington (Mr. McDermott).
Mr. Speaker, I yield myself the balance of my time.
The issue is not extension of the child credit. We favor it. Nor taking into account the needs of military families. We are very much for it.
There is a difference and a big difference. Why should we create a new tax program here? Why? Why for families making $300,000, $250,000? Are they the families in need? And is it right to do so when we add $70 billion to the deficit? The answer, I say to my chairman, pay for it. Pay for it.
You say it is not permanent and yet you say you are going to grow out of the deficit. Okay. If you are right, our proposal is permanent. If you are wrong, as you have been before, in some years we will take another look. Do not raise, I hope again in your remarks, even though when you have a message, you keep after it even if it is wrong, the AMT illustration. It is simply not correct. We do not use the term ``middle class'' in our AMT proposal. What we say is the AMT should be used for the same purpose as it was intended, for very wealthy families, and we are consistent because we say do not add a new child credit, a new tax break for very wealthy families when you are digging another $70 billion in the hole.
That is not fiscally responsible, as I said before. It is fiscal insanity. Do not raise children when your kids and my grandkids, if not my children, would pay for your irresponsibility, adding $70 billion to the already huge pile of debt. It is red enough. Do not add to it.
I urge that we vote for this responsible substitute and that we vote ``no'' against a very irresponsible, unneeded, additional tax credit that is in their proposal.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.