[Congressional Record Volume 146, Number 93 (Tuesday, July 18, 2000)]
[Senate]
[Pages S7084-S7085]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAX CODE CHANGES
Mr. DURBIN. Mr. President, those who have followed the proceedings of
the Senate over the last 2 weeks understand we have been debating
changes in the Tax Code. The two changes we have focused on are changes
in the estate tax and changes in what is known as the marriage penalty.
These are two very interesting proposals that have been before the
Senate but they really tell the story about the priorities of the
Senate when it comes to dealing with the economy and helping families
across America.
The estate tax, which we have considered and passed in a version last
week to ultimately repeal it, is a tax which affects a very small
percentage of Americans. In fact, fewer than 2 percent of American
families will pay the estate tax. Those who end up paying it are the
wealthiest people in America.
It is curious to me that when we established our list of priorities
in this Congress as to tax relief, the first people in line were the
wealthiest people in America. That is not to say we should not consider
tax relief that involves them, but I think everyone understands that
average families, smaller businesses, and family farms have priorities,
too, when it comes to tax relief.
Take a look at what the Republican proposals under the estate tax, as
well as the so-called marriage penalty tax, would do in terms of the
people in America and their income groups.
For the 20 percent of American families lowest in income, the
Republican proposals, two of them--the estate tax as well as the
marriage penalty--result in tax breaks of $24 a year. Then, as you
start moving up in income, you see that not until you get up to the
level of the next 15 percent here, of the top wage earners in America,
do you find people even seeing a tax break of about $900 a year--about
$75 or $80 a month.
Now look at what happens when you go to the top 1 percent of wage
earners in America, the wealthiest people in America: $23,000 in tax
breaks coming from this Republican-led Senate under these two bills,
estate tax reform and marriage penalty.
So if you happen to be in a working family, down here, you are not
going to notice what has been going on in the Senate because, frankly,
the tax relief they are sending your way hardly pays for a magazine.
But look what happens at the highest income levels: $24 for the lowest
wage earners, the people struggling to survive in America; $23,000 for
the wealthiest people in this country. Time and time and time again,
the Republican leadership, given a chance to deal with tax equity in
America, decides the best thing that can be done is to give to the
wealthiest Americans more tax breaks.
This tells the story as well. I will not go through it in all detail,
but the top 1 percent of wage earners in this country, people making
over $300,000 a year--those folks are going to see a tax break of
$23,000; 43 percent of all the tax relief coming in these two
Republican bills goes to people making over $300,000 a year.
There are people who will say perhaps they need it. I am not one of
them. Frankly, I can tell you who needs it, as far as I am concerned. A
working family trying to figure out how they are going to pay for their
kid's college education expenses, those are the folks who need a tax
break. When we put on the floor a measure sponsored by my seatmate
here, Senator Charles Schumer of New York, to allow people to deduct
$12,000 a year in college education expenses instead of giving tax
breaks to the wealthy, it was rejected by the Republican majority. A
$12,000 deduction for college education expenses was rejected while we
give a $23,000-a-year tax break to the wealthiest among us.
Then Senator Dodd of Connecticut, who has been a leader in child
care, stood up and said we have a lot of people going to work in
America every day worried about the safety and quality of child care;
let's give them a tax break so they can pay for good, professional,
safe child care and have peace of mind while at work that their kids
are in good hands. It was rejected by the Republican majority. The idea
of helping working families take care of their kids was rejected.
Then Senator Kennedy and others offered a prescription drug benefit
for seniors and the disabled under Medicare, struggling to pay for
their drug bills. We said we think that is a higher priority than a
$23,000 tax break for the wealthiest people in America. The Republican
majority said no, it is not a higher priority; it is a much higher
priority to keep in the front of the line at all times the wealthiest
people in America. That is what this debate is all about.
The question is, Whom do we stand for? Do we stand for working
families in this country or do we stand for the financially articulate
who, frankly, lord over this political process with their
representatives who come in expensive suits, well dressed, standing in
the corridors here saying we have to help the wealthy of America.
For good Heaven's sake, for the last 8 years this economy has been on
such a roll, the wealthiest in America have done very, very well. I
don't begrudge them that. But when we talk about helping people in this
country, why don't we remember the folks who get up and go to work
every single day, who worry about their kids' education expenses, who
are concerned about day care where they can leave their kids safely,
who want to make certain their parents can afford the prescription
drugs they need to stay healthy?
That is not a priority among the Republican leadership here. They
don't want to talk about it. They want to go to their convention in
Philadelphia in 2 weeks and talk about how they have worked so hard for
tax cuts and President Clinton and the Democrats have stopped them.
Don't forget to ask them the question, Who are the winners under your
tax cuts? The winners are those who turn out always to win when the
Republicans are in control. The wealthiest win again and again in
America.
I see Senator Harkin. Senator Harkin came in with his own proposal,
trying to help those concerned about tax equity. I am happy to yield to
him at this point.
Mr. HARKIN. Mr. President, I thank my friend for his very eloquent
and decisive statement. I think my friend has really put his finger on
it.
I would add one other thing to what we attempted to do here with the
future surpluses the Senator was mentioning, the various things we
wanted to do to try to help average working people. I had offered an
amendment a couple of weeks ago to fully fund the Individuals with
Disabilities Education Act so we could help the States help families
with children with disabilities to send them to school to get them the
best possible education. We were stymied by the Republicans. Most of
them voted against it.
Yet they find it within themselves to give, as the Senator pointed
out, to the top 1 percent of this country 43 percent of the tax breaks.
The surplus we have coming in the next 10 years is being used up by
these tax breaks. I might ask the Senator if that is not so. It is my
information, just this year, up until right now, this Senate, under
Republican leadership, has passed something over $1.3 trillion in tax
cuts. Am I in the ballpark, I ask the Senator?
Mr. DURBIN. The Senator from Iowa is correct. As these charts
indicate, those tax breaks are going to the wealthiest people in
America. I think the Senator from Iowa, from my neighboring State,
believes as I do: Hard-working people in this country are not looking
for a handout; they are looking for an opportunity. Give them a chance
to pay for their kids' college education; give them a chance to pay for
prescription drugs; give them a chance to pay for day care. And the
Republicans say consistently: That is not a priority. That is not
important.
Mr. HARKIN. I see my distinguished colleague from Massachusetts. The
other day, Senator Kennedy was pointing out that the Republicans have
passed $1.3 trillion in tax cuts. Yet we have not purchased one book;
we have not reduced the size of one class, we have not hired one new
teacher, modernized one school, brought one prescription drug for the
elderly. Yet they spend $1.3 trillion of the surplus that is there
because of hard-working Americans the Senator from Illinois is talking
about.
Mr. DURBIN. I might say in response to the Senator from Iowa, to
think we live in a nation where 30 percent of our population cannot
read any higher than a fifth-grade level, this is a waste of resources
in our country. We will
[[Page S7085]]
need to be a productive society in the 21st century. The fact is that
this Republican-controlled Congress does not even view education as a
high enough priority; they would rather put our time and our effort
into tax breaks for people who are doing very well under our economy.
I will be happy to yield again to the Senator from Iowa.
Mr. HARKIN. Mr. President, the Senator knows that next week we
celebrate the 10th anniversary of the Americans with Disabilities Act.
A recent court decision upheld the ADA, trying to get people with
disabilities the right to live independently in their own communities.
That is going to require us to make some changes in this country. It is
going to require us to invest in making sure people with disabilities
have the kind of support they need so they can get education and jobs
and independent living and transportation. If we do that, they are
going to be wage earners and taxpayers and not living in institutions.
I say to the Senator from Illinois, as we celebrate the ADA next
week, we ought to think about that, where all the money is now going,
because the Republicans are giving it all to the top 1 percent and
there will not be anything left to help make our country more fair and
just, and to make sure we live up to our obligation to people with
disabilities so they are fully integrated into our society.
Mr. DURBIN. I will be happy to yield to the Senator from
Massachusetts.
Mr. KENNEDY. Just before the Senator leaves that thought about the
need for support for special education, this is something the Senator
from Iowa has been particularly interested in and in which he is
strongly supported by the Senator from Illinois and myself.
We have heard a lot of lectures out here about the importance of
helping local communities who have these extraordinary challenges of
families who have children with these special needs, and it places a
very special burden on local communities. I think the Senators from
Iowa and Illinois and others understand the importance of giving help
and relief to these communities all across this country. We hear about
the need out there.
I am wondering whether the Senator shares my belief that after giving
$1.3 trillion away, whether we should not have used some of those
resources to try to help local communities and help families who have
these kinds of special needs for their children?
We are going to be hard pressed to find the resources to do that.
Perhaps the Senator would also tell me why it is now that we have gone
all of this last year, all of this year, and we still can't get a
minimum wage up to look out for the interests of 13 million Americans
who are working 40 hours a week, 52 weeks a year, who take pride and
have a sense of dignity, that we can't have an opportunity to address
it, when in the last 5 days we have given $1.3 trillion away to the
wealthiest individuals.
Mr. DURBIN. I say to the Senator from Massachusetts, if you take a
look at this chart, this is what the Republicans want to do for those
who are working for the minimum wage, for less than $13,000 a year.
They want to give them a tax cut of $24. Two dollars a month is their
response. We are trying to give them a dollar an hour increase under
Senator Kennedy's leadership in the minimum wage. Yet those at the
highest level, those making over $300,000 a year, under the Republican
proposal, will see a tax break of $23,000 a year. That is almost double
what people making minimum wage are receiving in income. We are going
to give that much in a tax break to those making over $300,000.
So instead of raising the minimum wage for the millions that the
Senator refers to--and the 350,000 people who get up and go to work
every day in Illinois at minimum-wage jobs--we are, instead, giving a
tax break to the wealthiest among us.
Mr. KENNEDY. Will the Senator respond to another question?
Is it the Senator's position--and we have been joined by the Senators
from California and New York--that there is a greater priority to
provide a prescription drug program for the 40 million Americans who
need prescription drugs than there is to grant the $1.3 trillion to the
wealthiest individuals, that the Senator from Illinois shares the
belief that we ought to be addressing that particular issue prior to
the time that we give away all of these funds to some of the wealthiest
individuals?
Mr. DURBIN. I agree completely.
When Senator Feingold offered his amendment that said anyone with an
estate over $100 million a year will have to pay estate taxes, it was
rejected by the Republicans. To think people that wealthy should not
pay their taxes, while many seniors have to choose between filling
their prescription drug prescriptions or filling their refrigerators
with food, I think tells the difference between the two parties when it
comes to helping America.
Mrs. BOXER. Will the Senator yield?
Mr. DURBIN. I am happy to yield.
Mrs. BOXER. I do not know if the Senator has mentioned this, but it
seems to me this Republican Congress wants to take care of the top 2
percent of income earners in this country; and as far as the other 98
percent, they don't seem to care.
Why do I say that? Because you have to look at the action. I ask the
Senator to again hold up that chart. What is happening here? If you
asked the average person in the higher income brackets, who is doing so
well in this particular time--thanks to the policies, I would say, of
the Clinton-Gore team, supported by those of us in Congress--they don't
need to get back $23,000 a year. They are doing extremely well.
Does my friend think it is time to take a little of this emotion--I
watched the debate when Senator Feingold offered his amendment to
exempt estates of any taxes up to $100 million. I thought at least on
that point our friends on the other side could join hands with us. But
no, the emotion on the other side of the aisle, defending the people,
the ``poor'' people who are worth more than $100 million, was so
powerful that I only wished we could take a tenth of that emotion and
address it to the minimum wage and prescription drugs and good public
education.
I wonder if my friend noted the strong emotion and feeling on the
other side of the aisle when it came to defending and protecting the
wealthiest in this country, rather than the 98 percent of the people
who need it. Did he take note of that?
Mr. DURBIN. I say to the Senator from California, time and again, the
Republican Senators here have felt the ``pain'' of being wealthy in
America. They can feel the ``pain'' of those who make over $1 million
each year, over $300,000. They don't seem to feel any pain or any sense
of emotion when it comes to the working families.
____________________