Mr. Speaker, I appreciate the opportunity tonight to be on this floor to speak on an issue that is near and dear to a lot of our hearts, and certainly a lot of our constituents' hearts, because tomorrow, April 23, is Taxpayer Freedom Day.…
Mr. Speaker, I appreciate the opportunity tonight to be on this floor to speak on an issue that is near and dear to a lot of our hearts, and certainly a lot of our constituents' hearts, because tomorrow, April 23, is Taxpayer Freedom Day. It's an opportunity, for the first time this year, for taxpayers to start working for themselves and not simply for their government to pay taxes.
On April 15 we paid our taxes. On April 23, days beyond that, we come to a point where it is no longer an issue of working to pay just the taxes that each taxpayer needs to pay, but now we go on to do for ourselves what we can and should do that would allow us to do things for others that we would like to do as well, to benefit them, to meet needs that cannot simply be met by government, that can be met in special ways by ourselves.
This morning I had the privilege of being at a Big Brothers, Big Sisters breakfast fundraiser and hearing an outstanding speaker who was from business and industry, a leader in her own right with a major corporation in my district, and yet appealing to the fact that in the private sector, in charities and special functions, that there is a place for finding ways to do it better, quicker, faster, more efficiently and cheaper in the process, that there needs to be ways to collaborate in such a way that organizations that sometimes are redundant and overlap come together, if not to join forces as the same group, but to join forces in providing resources to each other that they don't have to duplicate. I said to the speaker afterwards, you know, that's, indeed, what government ought to be doing as well.
The only way we will do that, though, is by forcing ourselves to do things appropriately to allow the engine of our economy, that being the private sector, individual worker, entrepreneur, risk taker, business person, industry, to do for themselves only what they can do. And to do that, they certainly need to have the resources in place that will enable them to function successfully.
By having to work until April 23 just to pay taxes, that's not the right approach to accomplish that.
I recently was hooked on the HBO mini-series ``John Adams,'' a mini- series on the take-off on the book written by David McCullough, a noted historian on the Framers of our way of life here in the United States, our governmental system, the Constitution, Bill of Rights, and all that makes this country great. And I was again impressed by the character of the Framers of our system of government who saw freedom and liberty as the ultimate priority and saw that freedom and liberty ultimately flowing from individual property rights, individual rights to use resources that they had, and the opportunity ultimately in the Revolution to break away from the King and be able to control more of one's own largesse, limited or great as it might be.
I was impressed by the character of these gentlemen and those behind them, the men and women who supported them. I was impressed with the fact that they believed in people, in individuals, in their ability to make good decisions, their ability to choose well, their ability to spend their resources more wisely, more efficiently, and better, certainly, than a larger body known as the government.
They were also appreciative, Mr. Speaker, of the fact that these individuals, in greatness of their own hearts, could reach out and meet the medical needs, meet the security needs, meet the housing and care needs of individuals, and go beyond just themselves because they had ability to do that, if their government allowed them the liberty and freedom of choice because they had resources to do that as well.
I believe that our Framers never ever would have envisioned what we've come to today. They would have never envisioned that we, as individual taxpayers, would work until April 23, after paying taxes on April 15, just to pay the taxes that we paid on April 15. That is what they revolted for, that lack of liberty and choice in using their own resources.
Someone far more significant than I once said, ``The ability to tax is the ability to destroy.'' I can't talk about other States, and I'm delighted to have another Member with me on the floor tonight to discuss this issue as well, my friend and colleague and the freshman class president, of which I'm part, Bill Sali from Idaho. I can't talk, Congressman, about your State, but I can talk about Michigan, a great State, a great State of natural resources, surrounded on three sides by the Great Lakes if we count our upper peninsula, and I would not forget the Upers, surrounded on three and a half sides by the Great Lakes, with natural resources in the ground, growing on top of the ground, and with natural resources known as human resources that would be second to none. A State that has a history of producing things, of manufacturing, leading in manufacturing, developing the auto industry. The district of which I represent, right in the heart of it was where Henry Ford developed the whole process that has become the assembly line approach to the auto industry.
And yet this great State at this point in time sits at, sadly, the number one worst unemployment rate in the Nation. According to CEO Magazine last week, we rank the 49th worst business climate in the United States. We have people moving out of the State to find jobs. We have our friends in Indiana recruiting jobs from Michigan and doing it far more easily because of what we have done in our State. A State that truly is being destroyed by the ability to tax.
Most recently, the State legislature and our Governor went the wrong direction and frustrated any type of turnaround by increasing income tax, by putting a tax on services for the first time, and then putting a new business tax in place. And then having the cry come up from the taxpayer about the service tax, they rescinded that and put a surcharge on top of the business tax. And then we have the chutzpah in ads and otherwise that say that we are open for business.
I love my State. I love the people of my State. And I think we are Wolverines because we're tenacious, as de Tocqueville said. But we are frustrating the engine of the economy by the excessive taxation that we have put on.
I want to talk more about it, but I know Congressman Sali has much to say on this as well because, Congressman, you are known, first and foremost, as a man of principle, but a friend of the taxpayer, a man who came to Congress because of that agenda to provide less frustration and more opportunity for taxpayers. And I know that tomorrow you will rejoice that we have reached Taxpayer Freedom Day. But I know as well, my friend, that you wish it was far sooner than April 23.
I yield to my friend from Idaho.
Reclaiming my time, if I could just pose a question on that, why would you say that government should not be flexible and mobile enough in order to deal with the changing of times? The right to life, liberty, and the pursuit of happiness was the envisionment of the Framers of this wonderful country, this wonderful system of government as well. But as time went on and problems developed with a much larger country, what would you answer to the person who says we should be mobile and we should be flexible to meet the needs of people as it develops? I pose that to you knowing, I think, what your answer will be.
I yield to the gentleman.
I appreciate those thoughts. I think you got to the nub of the question. It's not the fact that we don't want people to have those entitlements, we don't want them to achieve, we don't want them to have the opportunity that is afforded to all of us here in the United States. But it's based upon the fact, first and foremost, that there is liberty for us to choose, there's liberty for us to be responsible, there's liberty for us to fail, even. And that is quite a liberty, when you think about it. But when we succeed, the liberty to keep and benefit from what we have, and in order to not only care for ourselves, but then voluntarily assist others, and what a liberty that is.
It was said of the Athenians, I read one place, that they desired most freedom, security, and prosperity. And in the end, they lost all of them because they weren't willing to keep liberty first and foremost.
So I appreciate your comments tonight on this eve of Taxpayer Freedom Day, where government often times says why celebrate that? It's your duty to pay the taxes, it's your privilege to pay taxes. Well, I do thank God that I have the opportunity to live in America and I have the opportunity to earn and I have the opportunity to pay a certain level of tax to support a certain level of government that is needed. But I am frustrated that we have gone way beyond that and lost liberty in the process.
I'd like to turn over now some time to another good friend and colleague from Tennessee. David Davis has been an outspoken friend of the taxpayer, and I think evidenced by his willingness to battle for the taxpayer and to continue to support prosperity that has blessed his State of Tennessee, and continues to, and sadly, has become home to a number of my Michiganders as well, who have gone for places of employment, and have benefited there. Congressman Davis, we hope to bring some of those back to Michigan.
In the meantime, I appreciate you taking the opportunity to talk about the issue of taxes, Tax Freedom Day, and your concerns with it.
That is common sense, I would submit to my good friend, isn't it?
And not status quo government.
Well, I have a lot of comments on that, but you said it so well. I appreciate the commonsense approach from a place where Davy Crockett roamed. I know that for a fact.
Again, we are talking about, Congressman Davis, we are talking liberty. We are talking about people who say I am not asking for anything except the opportunities. I am willing to be responsible. Generally speaking, I am willing to be held accountable. If I have the resources to use, the resources to spend, if I have the resources to save, to invest, and take the risks as necessary, if I have a job that I can produce those resources and move further, all it says is that I get more liberty and I get full use of it. If I am tied to April 23 as my time when I can say I finished paying taxes for this year to the Federal Government, now I can buy for myself, but I have got to start thinking about paying taxes next year April 15 as well, it ties me back.
None of us here on the floor aren't saying there is some tax base that is necessary. But what we are saying is we have gone way overboard. When you pointed out that if the majority proposal Democrat budget goes through and it's paid for as they intend with a $683 billion tax increase, which was passed, which does away with all of those tax relief issues that we had in 2001 and 2003, and have benefited this great country since that time, and then it adds other things to it like the marriage penalty back into it, does away with the ending of the AMT, alternative minimum tax, an onerous regressive tax that's strapping down more of our taxpayers than ever were assumed to be in it. If we put all that in place, we see less liberty, less freedom, more opportunity for abuse by government that doesn't know how to say no.
We end up frustrating ourselves again, don't we.
I thank my friend. I only have to think about the fact that to the taxpayer in my State, that if this $680 billion tax increase goes through to pay for additional spending, deficit spending, in a budget that goes way beyond what is necessary, it means that on top of the burden that my State government has given to the hard- working taxpayers of Michigan, it gives a $3,000 per taxpayer increase on January 1, 2011, automatically. And, like you, my taxpayers that I meet with each weekend back in the district and in the 140 town hall type meetings I have held since January 4th, they are not saying, Mr. Congressman, please give us more taxes. Please give us more gas tax. Please raise the cost of our fuels. They are not saying that at all. They are saying, give us some freedom. Give us some liberty. Give us some relief. Let us do for ourselves what we can and should do, if we have the resources to do it. So you hit it right on the head.
I am privileged tonight as well to have another good friend and colleague, a member of our freshman class, an outstanding spokesperson for the taxpayer, for all things that people like John Adams and Jefferson and Washington and others spoke for when they framed all that we are pleased with in the United States, the Congresswoman from Minnesota, Michele Bachmann.
I am sure you have significant things to say about this great event we have tomorrow, Tax Freedom Day. But looking on the other side of the picture, why in the world we have to have that type of a day so late in the year?
I yield to the Congresswoman from Minnesota.
If I could break in, didn't we hear at the beginning of this year, January 4th and prior to that, that if the majority party had control we would see the prices go down on gas and other things? Didn't we hear that? Have we seen that take place?
And that is not the idea that the framers of our Constitution had in mind.
Well, it is very similar, if I might add, to see how large expenditures go out with so little oversight, and so much statement that, oh, well, it has to be done. If we don't do it, who will? And there are so many needs.
Well, there are. I mentioned earlier this evening I had the opportunity to attend a breakfast fundraiser for Boys and Girls Clubs in my area. They do a great work, and they are doing it on the basis of individual contributions, corporate entities that give not only financial support, but also human support as well.
The speaker, a president of a major industry in my area, she said it so eloquently, that it has come to a point in time where we have to find ways to reduce the cost by drawing together and not having redundancies that add cost, but become more efficient and more effective doing not only the same work, but more work for less cost as a result of the effort that is shared.
In government we have to get that concept. We have to understand that there is a person called the taxpayer, and a taxpayer that is not of unlimited resources, especially if we want to keep freedom around so that our children and grandchildren and great grandchildren will enjoy the benefits we have. If we are to pass it on to them in such a way that they will have equal or better freedoms than we had, we have to get on the stick.
So, absolutely, I have been floored since coming here that it is so easy to spend money in this Chamber without thought of actually who will generate those resources, and we frustrate the engine of the economy.
It can't continue. If it does, we have lost it all. Jefferson said the government that governs best governs least. And it wasn't simply govern least to allow people less opportunity, but it is to give them more freedom; to give them more of their own resources to make better decisions for themselves, making better decisions on basic needs.
That was the genius of what we had here in a capitalistic system, a system that said we will offer freedom and opportunity. You make your choices, you determine your lifestyle. And, in turn, as we also encouraged through supplementing what went on in the home, what went on in the school, what went on in the church and making it a common theme that we are our brother's keeper, but it is with our own resources, with our own choices, the opportunity that we have to expand and meet needs of others.
Ultimately in doing that ourselves, we are also blessed. We also felt the warmth of saying I lifted someone up that was falling, and I also know that there are plenty of others who would come to my aid, individuals who are family members, who are community members right from my own area that would reach out, and, at last resort, if necessary, maybe there was something in the government.
But it is reversed now, where the first place we go is the government. Of course, that causes the ramp-up of costs that now results in the largest tax increase in the history of the United States being offered and passed just recently.
And, if allowed to be completed and my legislation isn't put in place to make permanent those tax relief issues of 2001 and 2003, we will have a $683 billion tax increase over the next 5 years, and on January 1, 2011, the taxpayers in my State and across the country, generally speaking, will pay upwards of $3,000 more the day after December 31 than the day before. That is not the way to go. We have to stop it. The taxpayers out there, whether they be in Tennessee, Minnesota, Michigan, Ohio, or Indiana, are all saying the same thing; they just want us to hear an answer.
And I appreciate that fact. There are good pieces of legislation, whether it be setting a cap on spending or setting a moratorium on earmarks, and looking at a way to get control of that so we are not wasting dollars. These are common-sense issues that taxpayers generally look at and say, what is the problem? This ought to be just common sense, to have a line item veto, to have a balanced budget amendment. All of the above speaks to the common taxpayer, which I am one and you are one and all of us who have spoken tonight are one. It speaks common sense to the taxpayer saying, this just ought to be the way it is, because we are willing to do for ourselves if you leave us the opportunity.
So I certainly appreciate your passion on this issue and the fact of your awareness of tax issues having been a tax attorney and understanding that, while there are taxes necessary, that we have gone way beyond the limit. We have gone beyond reality.
There is little debate right now on Capitol Hill about whether the American economy is struggling. That is just there. We recognize the fact. And some of us who are in States that are struggling even more so, like my own wonderful State of Michigan that has all of the resources available, and yet we are frustrated. The real conversation in living rooms across the country is about how to get our economy moving again.
Essentially, this debate boils down to one question, the question that I was asked in conversations in town hall meetings that I have in various ways, and that question is: Should America promote economic growth and job creation, or raise taxes to destroy jobs and economic opportunity?
Right now, Republicans, our colleagues are asking all House Members to decide which side of this debate they are on by forcing votes on a bill that I introduced that we have referred to tonight, that is the Tax Increase Prevention Act, House Resolution 2734. House Members have to choose whether they support Speaker Pelosi's budget proposal that in total is the largest single tax increase ever promoted in the history of the United States, a $3,000 per taxpayer tax increase overnight.
With so much money already being wasted in Washington, I believe it is wrong for Congress to try and take more money out of the paychecks of hard-working Americans. My bill, to make more point about it, would make permanent the tax relief of 2001 and 2003, and stop tax increases on raising children, earning money, saving and investing, operating a small business, adopting a child, paying off college loans, and even dying.
Consider the implications of the Democrat's proposed $680 billion tax increase in 2011 alone. Marginal income tax rates will increase by anywhere from 9 percent to 50 percent, with the lowest tax bracket receiving the highest tax rate increase. That is not talking to the rich and wealthy, that is talking again of the lowest tax bracket. Capital gains rates for individuals will increase dramatically, punishing saving and investing. Restoration of the marriage penalty tax, that is a punitive tax that thankfully we got rid of, and now they want to put it back. The child tax credit will be slashed 50 percent, raising taxes by $500 per child. The death tax will go from 0 percent to 55 percent.
I have always held the conviction that the American citizen should keep as much as their hard-earned money as possible. With Americans facing rising health care costs, high energy prices, and economic instability, the last thing families need is to be hit with a massive job killing tax increase.
Every week in my home State, I meet with Michiganders, as I did this weekend, who are working harder than ever before and at best breaking even. Michigan families and businesses have, unfortunately, felt firsthand the powerful negative impact of tax increases. These working families' wages have been slashed by higher taxes on income and on small businesses. During our Governor Jennifer Granholm's administration, Michigan has experienced job
losses, declining personal incomes, diminishing home values, and the highest unemployment rate in the Nation, sadly. By proposing a massive $3,000 per taxpayer tax increase, Democrats in this Congress are following the same failed blueprint that has threatened to ditch our economy in Michigan and destroy Michigan jobs.
Instead of working on tax hikes that ultimately make America less competitive, I believe Congress should stop this $683 billion money grab from taxpayers. Congress could better spend time eliminating ineffective and inefficient government programs, making health care more affordable, and passing any energy legislation to move America toward energy independence and reduce energy prices.
The debate over whether to raise taxes is just the beginning of a long battle over America's economic future. By making tax relief permanent and continuing to grow our economy, Congress can go an awful long way to restore the trust of the American people, build a better and brighter future for our country, and avoid the economic suffering now felt in States like Michigan.
It doesn't have to be that way. And I certainly appreciate the fact that there are those of us who are fighting for taxpayers' interests. I know the 13 of us who came in as freshmen came in for a reason. That is the smallest freshman class in the history of the United States, probably. But we came in resolute that the taxpayer was to be served; that taxpayers were paying too much, not too little; that we were regulating too much, not too little; that we were destroying the incentives of private hard-working citizens, risk takers, entrepreneurs to do the job that they can only do. Government doesn't do that. And that is why 13 of us came while others lost and weren't sent back because of overspending and overtaxing.
And it is sure a privilege to join with the both of you here in the room tonight. I guess I would offer opportunity for any final comments before we are forced to close this interesting conversation this evening, hopefully of benefit to the taxpayers out there on this eve of tax freedom day. Hopefully it has been interesting, but more than that, it has been something that would stir them into action as well to say: Enough is enough, and we stand for freedom.
I thank my friend from Minnesota, and appreciate your passion as well in fighting this good fight.
I would yield now to the Congressman from Tennessee, David Davis.
I thank the gentleman from Tennessee. And, again, I trust this has been helpful for taxpayers to hear at least some that will defend. And there are others in this Congress. It has been said that we are red state, blue state, totally divided in this country. When you get to the common-sense issues, the virtues that people see as common sense, we are not divided, we are not red state, blue state. We are a common based unified people that believe in common sense things.
Jonathan Witherspoon, one of the signers of the Declaration of Independence, said: A Republic once equally poised must either preserve its virtue or lose its liberty. Virtue of hard work, the virtue of risk taking and entrepreneurial spirit, the virtue of accountability, of responsibility, of honesty, of integrity, those are virtues. And they go all into what makes our country great and what our taxpayers generally commit themselves to on a common base. And when we break down those virtues and give those away, we destroy ourselves and our liberty in the process.
So let's fight together to stop this $683 billion tax grab that will frustrate this country and take it back as opposed to pressing it forward. I thank my colleagues for spending this time with me tonight.
I yield back the balance of my time.