Tax Reform (Executive Calendar)
Mr. President, as we cut taxes, there is one goal that is the most important: We need more good-paying jobs, and we need bigger paychecks for hard-working Montanans. It was just announced that the Senate's draft tax bill will repeal a tax…
Mr. President, as we cut taxes, there is one goal that is the most important: We need more good-paying jobs, and we need bigger paychecks for hard-working Montanans.
It was just announced that the Senate's draft tax bill will repeal a tax that fundamentally targets those of low to middle income in my State and across the Nation. In fact, in Montana alone, 75 percent of the people who pay this tax make less than $50,000 a year. In fact, in Montana, 32.5 percent make less than $25,000 a year. This is not just anecdotal. In 2015, if you looked across the Nation, 79 percent of those who paid this tax made less than $50,000 a year. In fact, a little over 37 percent made less than $25,000 a year.
The IRS pickpocketed over $3 billion from approximately 6.5 million Americans in 2015 alone, a majority of whom made less than $50,000 per year. This is a tax that is targeted at those who are in poverty.
What is this tax, you might ask? Where in the world did it come from? I will tell you where it came from. It came from ObamaCare. It is the ObamaCare poverty tax.
Otherwise known as the individual mandate, which forces people to purchase health insurance or pay a fine, the poverty tax systematically taxes those who make less than $50,000 a year. If it were not enough that ObamaCare plans were already too expensive for some of these folks, the IRS adds insult to injury by fining them, taxing them, for not being able to afford it. Some say that ObamaCare steals from the rich to give to the poor, but, honestly, ObamaCare's individual mandate is really Robin Hood in reverse. ObamaCare's poverty tax is like Robin Hood stealing from the poor to pay King John.
It is unthinkable that we would leave such a provision in the law when we have the opportunity to repeal it. By repealing it, we would save $338 billion over 10 years. That is over $300 billion that we could put toward additional tax relief for small businesses and families.
Alternatively, if we do nothing, the CBO projects that we will increase taxes by $43 billion because of this poverty tax and that those taxes will be paid primarily by America's low- and middle-income families--$43 billion in taxes on those who can afford it the least.
ObamaCare's poverty tax must go, and there is no better time to get rid of it than right now. I urge my colleagues on both sides of the aisle to join me in fighting on behalf of the low and middle classes of our Nation.
Benjamin Franklin is credited with this phrase: Just two things in life are certain--death and taxes.
That may be so, but we do not need to make them both quite so painful. That is why I am glad to see that a repeal of the ObamaCare poverty tax has been included in the current Senate draft tax legislation. I urge my colleagues in the House of Representatives to do the same.
Thank you.