S Corporation Permanent Tax Relief Act Of 2014
Madam Speaker, I yield myself such time as I may consume. Madam Speaker, the tax extenders being considered today are important to small businesses and have been supported by Democrats. The first two bills impacting S corporations regard…
Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, the tax extenders being considered today are important to small businesses and have been supported by Democrats.
The first two bills impacting S corporations regard the gain on the sale or distribution of appreciated assets and how charitable contributions of an S corporation are taken into account by shareholders. Over the years, we have modified these provisions and extended them on a bipartisan basis.
The section 179 expensing provision which we will consider second has been in the Tax Code since 1958. It was expanded and nearly quadrupled to a maximum expensing allowance to nearly $100,000 in 2003.
In 2008, as another recession took hold, that allowance was increased to $250,000; and in 2010, we again expanded the provision, this time to $500,000, as we continued action to spur the economic recovery. This level was in effect through 2013, and this bill before us would make these significant expansions permanent--unpaid for.
When these expansions were first enacted in 2003, House Republicans noted that these expansions ``reflected the need for an economic stimulus and growth package.''
Republicans want to talk about certainty. Well, this much is certain: the expanded 179 provision will be extended
again. Our economy still needs it, and if Republicans had any interest in working on a bipartisan basis on comprehensive tax reform, we could discuss how best to make a stimulus effort a long-term part of the Tax Code.
The opposite is being done today. It is tax reform in reverse. The S corporation provisions surely also will be extended, but in reality, we are not here to make law. I think that is evidenced by the atmosphere about these provisions as we take them up today.
The President has indicated he will veto the approach--permanent, unpaid-for tax cuts--taken in the Republican bills before us today, and importantly, the Senate Finance Committee has approved, on a bipartisan basis, legislation to extend all tax extenders for 2 years.
The total inability of the House Republican majority to take action to help our recovery, to bolster small businesses, and to grow our economy has resulted in smoke-and-mirror votes, like the ones before us today. They want to signal that they support small business, but their action is so inconsistent with their past positions that it is rendered hypocritical.
Ways and Means Republicans put forth a comprehensive tax reform proposal and received accolades--the chairman did--for making it revenue neutral. Chairman Camp included these extenders in his comprehensive tax reform proposal fully offset, the opposite of today.
The measures in front of us today add up to $75 billion in deficit increases--$75 billion more. When you add in the R&D credit that passed the House last month and the eight other provisions that have moved through Ways and Means Committee, it adds up to--everybody take notice--$614 billion, unpaid for and permanent.
There are still more than 40 tax provisions left unaccounted for. When all is said and done, Republicans are well on their way to increasing the deficit by $1 trillion, and we all know where it will lead--to future Republican demands to cut vital domestic priorities that have been on the chopping block for the GOP: funding for education, public health, and transportation--as we saw yesterday--to name a few.
Chairman Ryan put forth a Republican budget resolution, which the Republican majority passed through this House. That budget that you all here today on the Republican side voted for stipulates that any change in tax law must be offset. These bills today shred that principle. You are shredding it.
You are inconsistent. You moved in one direction with some praise and now you are essentially moving in the opposite.
And the final hypocrisy is one that hits home for 3 million unemployed Americans, I must say, for their families and for millions of Americans who care. The Republican majority insists that unemployment insurance be paid for, but when it comes to tax cuts, they can simply be added to the deficit. The bill before us today is seven times more expensive than the cost of extending Federal unemployment insurance for the remainder of the year. And I should note that we have simply already agreed to offset the cost of such unemployment extension.
Democrats stand ready--more than ready--to extend these provisions for small businesses. We stand ready--more than ready--to act on all of these expired tax provisions. We stand ready--more than ready--to act on comprehensive tax reform. And we certainly stand ready--more than ready--to extend unemployment insurance for 3 million job-seeking Americans and be paid for. But we will not be silent in the face of the Republican hypocrisy on display today. What they are doing today is reckless and irresponsible. Once again, here they go again.
I reserve the balance of my time.
Madam Speaker, I yield myself 1 minute.
Let this be very clear to our distinguished chairman. These bills being brought up here unpaid for come to $75 billion. The total of the bills that have come through Ways and Means comes to $614 billion. So 75 today, we had 300-and-some a week or so ago. The train is on the track as you have positioned it, 614 just to start. To extend these provisions for 2 years is $3.4 billion. That is why it is irresponsible to simply go off into the wild deficit, irresponsible yonder. That is where you are.
Madam Speaker, I yield myself an additional minute.
There is a tremendous difference between 3.4 and 75 in these bills and 614 when you add this together with more to come. It also means it gives us time to look to see whether they should be permanent under what conditions.
So that is why it is reckless, it is irresponsible, it is contrary to your tax reform bill where you lauded it and we applauded that aspect that you paid for it. You called it revenue neutral. We wanted something beyond that. We didn't want deficit wild.
Madam Speaker, I yield 3 minutes to the gentleman from Washington (Mr. McDermott), an active member of our committee.
(Mr. McDERMOTT asked and was given permission to revise and extend his remarks.)
Madam Speaker, I yield 3 minutes to gentleman from Illinois (Mr. Danny K. Davis), a distinguished member of our committee.
Mr. Speaker, it is now my pleasure to yield 5 minutes to the gentleman from Maryland (Mr. Van Hollen), the ranking member on the Budget Committee.
Mr. Speaker, I yield an additional 3 minutes to the gentleman from Maryland.
Well, since you stated how many times I have voted to extend temporarily, I will now yield some time to Mr. Van Hollen and then I will continue.
Mr. Speaker, I yield as much time as he may consume to the gentleman from Maryland (Mr. Van Hollen). I don't think it will take very long to refute the statement made by the gentleman from Washington.
Is the gentleman ready to close?
Mr. Speaker, how much time is remaining?
I am glad the chairman spoke because this back-and-forth really illustrates what this is all about.
The chairman made these three provisions permanent and paid for. This bill here doesn't pay one dime. We have voted to continue these programs on a short-term basis for a variety of reasons.
For example, on bonus depreciation, the notion to make it permanent was contrary to its purpose. The chairman left it out of his reform and then comes here to vote to make it permanent.
We need an honest debate about tax reform and what provisions should be made permanent. You have prevented any kind of an honest debate. You don't even allow us to bring up some way to pay for any of this.
I previously pointed out the difference. It is so striking. If you extend these provisions, as the Senate does, for 2 years, the cost is $3.4 billion. These two bills are $75 billion.
There could be no more dramatic example of irresponsibility and of recklessness, and the mystery is: Why in the world are you doing this?
As you can see, there aren't huge numbers of Members here for the debate. You are going through the motions. These are rifle shots, and you are shooting yourselves in the foot.
Don't bring up the number of times that someone has voted to continue these on a temporary basis as you argue to make them permanent. That is dishonesty.
I want to emphasize the path that is being followed here is not only contrary to the tax reform proposal, contrary to the Ryan budget. It is also
going to lead to the Republicans, as Mr. Van Hollen said so eloquently, raising this huge amount of deficit--$614 billion, going towards a trillion--and then the Republicans are going to come back here and say: wow, look at how much the deficit has increased.
So you now need to cut these critical programs relating to the lifeline of all of the people in this country, the middle class and all who need some help.
So I strongly urge a ``no'' vote on this bill, and I yield back the balance of my time.