[Congressional Record Volume 152, Number 122 (Tuesday, September 26, 2006)]
[Senate]
[Pages S10117-S10120]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         FAMILY PROSPERITY ACT

  Mr. DeMINT. Mr. President, earlier this year Republicans put together 
one of the most important bills we have considered, and Republicans 
asked for a vote on that important bill we call the Family Prosperity 
Act. Indeed, it does deal with the prosperity, the economic well-being, 
the cost of living for every American family. It contains three very 
important measures and all enjoy majority support in the Senate. One 
was permanent death tax relief, another was the extension of very 
important expiring tax provisions, and a minimum wage increase of more 
than 40 percent.
  The bill represents a true bipartisan compromise. Yet it met unified 
Democratic obstruction that prevented it from receiving an up-or-down 
vote. I do not think I have ever seen a vote that

[[Page S10118]]

has so clearly demonstrated Democrats' willingness to turn their backs 
on American families in order to score political points. I believe 
Americans understand that Republicans worked hard to reach a true 
compromise that would raise the standard of living for all American 
families. I think they will remember that after years of rhetoric, 
Democrats proved they were all talk and no action.
  For years Republicans, along with many Democrats, have worked for 
permanent death tax relief because it is an immoral double-tax that 
punishes death and savings. As the Senator from New York, Mrs. Clinton, 
said when she was running for office in the year 2000:

       [Y]ou ought to be able to leave your land and the bulk of 
     your fortunes to your children and not the government.

  Other Democrats have supported death tax relief in the past, 
including Senators Wyden, Bayh, Pryor, Landrieu, and Cantwell. Even the 
minority leader, Senator Reid, has said he is for ``fixing the estate 
tax.'' Yet when it came time to vote, they joined their fellow 
Democrats to block death tax relief.
  The Family Prosperity Act also extends several important tax relief 
provisions that are set to expire in October to extend several critical 
relief measures, including State and local sales tax deductions, 
research and development tax credits, college tuition deductions, work 
opportunity tax credits, welfare-to-work tax credit, depreciation for 
restaurants, timber capital gains, teacher classroom expense 
deductions.
  These tax relief provisions enjoyed broad bipartisan support and need 
to be renewed to keep our economy growing. Instead, in August, 
Democrats obstructed these items and essentially voted to raise the 
cost of living for American families.
  Additionally, the Family Prosperity Act contained a longtime priority 
for Senate Democrats, a 40-percent increase in the minimum wage.
  I must make it clear that I personally oppose a minimum wage 
increase, as do many of my Republican colleagues. Economists agree that 
raising the minimum wage prices people with low skills out of the job 
market and keeps them from getting a job that ultimately pays higher 
wages. Yet Republicans such as myself are willing to vote for this true 
compromise bill. Unfortunately, Democrats chose election-year partisan 
obstruction instead of lowering the cost of living for American 
families.
  However, today we can change this. We are nearing the end of the 
109th Congress, and we have debated these issues over and over. We now 
have one final opportunity to get this right and pass this bill to 
secure America's prosperity. In fact, I understand that some Democrats 
just gave a press conference earlier today urging the passage of the 
tax relief extensions in this Family Prosperity Act. Well, they are 
about to have their chance. The Democrats now have one final 
opportunity to either do what is right for American families and lower 
the cost of living or they can choose to continue their partisan 
political games of blocking American priorities so they can try to 
blame Republicans as a do-nothing Congress.
  Mr. CORNYN. Will the Senator yield for a question?
  Mr. DeMINT. Yes.
  Mr. CORNYN. Mr. President, I would inquire of the distinguished 
Senator from South Carolina--he has just described the blocking of the 
Family Prosperity Act, which, as I recall, combines the death tax, an 
increase in the minimum wage, and so-called extension of the tax 
relief, including the teacher classroom deduction, the State and local 
tax deduction, and the R&D--research and development--tax credit. But I 
believe he also referenced a press conference that was held at 10 
o'clock this morning here at the Capitol where Republicans were charged 
with raising taxes against the middle class for failing to extend the 
very tax extenders that they blocked just in August. Is that the 
Senator's understanding?

  Mr. DeMINT. The Senator from Texas knows as well as I do that this 
has become the pattern of our Democratic colleagues: to purposely block 
important legislation and then attempt to come down and blame 
Republicans or blame the President when it doesn't actually get done.
  I am excited, as the election nears, that the American people are 
much smarter than that. They are going to clearly see through those 
attempts. These important things which need to be done, many of which 
we have been able to accomplish despite Democratic obstruction, are 
still being blocked by our Democratic colleagues.
  Mr. CORNYN. Mr. President, will the Senator yield for an additional 
question?
  Mr. DeMINT. Yes.
  Mr. CORNYN. Is the Senator aware that in addition to blocking the 
Family Prosperity Act, which would have achieved the No. 1 item on the 
Democratic agenda, which is raising the minimum wage, in addition to 
reducing the death tax and providing additional tax relief, which we 
discussed, that there have been other efforts to block and then blame 
Republicans for being a do-nothing Congress?
  I would just like to read a short list--I know the Senator has some 
other prepared remarks he is going to focus on--just to cover sort of a 
survey of the field, of areas which our friends on the other side of 
the aisle have sought to block and blame the majority while, at the 
same time, being the ones responsible for blocking important 
legislation.
  For example, is the Senator aware that there is now an attempt on the 
Democratic side to block the Child Custody Protection Act--and we 
mentioned the estate tax and Extension of Tax Relief Act, the Gulf of 
Mexico Energy Security Act, which would help us become less dependent 
on imported energy and oil, the Arctic Coastal Plain Domestic Energy 
Security Act, the Health Insurance Marketplace Modernization and 
Affordability Act, the Legislative Line Item Veto Act, the Federal 
Election Integrity Act, and the Social Security Guarantee Act? Is the 
Senator aware that in each of those instances, but for blocking by our 
friends on the other side of the aisle, we would actually be able to 
make bipartisan reforms and actually advance the agenda of the American 
people in very positive and constructive ways?
  Mr. DeMINT. Yes, I am aware. And I am aware that all of the bills and 
legislation that my colleague mentioned have majority support in the 
Senate. But by using procedural blocking techniques, the Democrats have 
kept these from coming to a vote, or even debated in some cases. But, 
again, I am confident the American people, as they focus on what we 
have been doing--and I realize our Democratic colleagues produced their 
commercials to call us a do-nothing Congress several months ago, so it 
has become very important for them in the last days of this Congress to 
block everything that they can. But we have several important pieces of 
legislation this week related to the security of this country that we 
need to pass, and we are going to have the opportunity in a few minutes 
to hopefully get unanimous consent to pass the Family Prosperity Act, 
to give people a raise in the minimum wage, to pass these tax 
extenders, and to create a compromise on this death tax, which is so 
immoral and hurts so many families.
  Mr. CORNYN. Mr. President, if the Senator would yield for one last 
question.
  Mr. DeMINT. Yes.
  Mr. CORNYN. Mr. President, I know the Senator's focus is on the 
Family Prosperity Act. But one of the bills that I mentioned, just as a 
final example of this tactic of blocking and then blaming the majority 
for being a do-nothing Congress, is the Health Insurance Marketplace 
Modernization and Affordability Act. As I recall, this is sometimes 
called the small business health insurance bill, which would be 
designed to allow small businesses and other associations to pool 
together to buy health insurance for their employees at about 12 
percent lower rates than are otherwise available.
  Is the Senator aware that while we attempted to close off debate, 55 
Senators voted to be able to close off debate and go to that important 
small business health reform legislation, and 43 Senators voted against 
closing off debate, thus preventing us--again, blocking us--from 
passing this important health care legislation which appears to 
otherwise have broad bipartisan support?
  Mr. DeMINT. I am glad the Senator from Texas brought that up because 
this morning our distinguished colleague from New Mexico was talking

[[Page S10119]]

about how Republicans have done nothing significant to lower health 
insurance costs when, in fact, the small business health plan would 
have done just that. I was a small businessman for many years. Health 
care is one of the highest expenses we had. The chance to pool together 
with small businesses all over the country to buy insurance, just like 
large companies can do, is a commonsense measure that should have been 
passed in the Senate, yet was blocked by our colleagues.
  Mr. CORNYN. I thank the Senator.


                      UNANIMOUS CONSENT--H.R. 5970

  Mr. DeMINT. Mr. President, we have the opportunity to correct a 
wrong. An important bill was blocked. I would like, as we consider this 
Family Prosperity Act this morning, to ask unanimous consent that the 
Senate proceed to the immediate consideration of Calendar No. 562, H.R. 
5970, which is the Death Tax Repeal Act, which we call the Family 
Prosperity Act. I ask unanimous consent that the bill be read the third 
time and passed, and a motion to reconsider be laid on the table.
  The PRESIDING OFFICER. Is there objection?
  Mr. BINGAMAN. Mr. President, I object.
  The PRESIDING OFFICER. Objection is heard.
  Mr. DeMINT. Mr. President, we see again a bill that has been debated 
and considered for many months, a bill on which a press conference was 
held this very day saying we need to pass a major portion of it. Yet at 
every turn there is blocking.
  I would like to take a few minutes--and if the Presiding Officer 
would let me know when I have 5 minutes left--to talk about one of the 
provisions of the Family Prosperity Act. My friends on the other side 
of the aisle are holding up legislation that would prevent an enormous 
increase in the death tax on everyday Americans. I will talk more about 
this chart, but Democrats widely claim that the death tax impacts only 
a few of the wealthiest Americans. The truth is, the only reason the 
death tax doesn't affect more hard-working Americans today is that it 
currently--the Republicans have passed temporary legislation that is 
phasing out the death tax, as we can se on this chart through 2010. And 
we have done this despite Democratic obstruction. But as you can see 
from this chart, if the Democrats have their way, a huge number of 
American families will be in the death tax death grip in 2011.

  Minority Whip Durbin, my colleague from Illinois, said this about the 
death tax:

       How many families will benefit if the estate tax is 
     repealed? Each year in America, a Nation of 300 million: only 
     8,200 families. You have to search long and hard to find 
     them. These families are so well off, who have done so well 
     in this great Nation, who have benefited from this democracy 
     and the blessings of liberty, who have enjoyed a comfortable 
     life because of their prosperity, who now have taken millions 
     of dollars to hire the most effective lobbyists in 
     Washington, DC to push this outrageous special interest 
     legislation, the fattest of cats in America will get a great 
     bowl of tax cuts, tax cuts on the estate tax.

  Senator Durbin argues against full repeal of the death tax, but we 
are not arguing for full repeal of the death tax. Our legislation would 
simply prevent an enormous increase in the death tax, while Senator 
Durbin is arguing that we should let the death tax increase in 2011 to 
a top rate of 60 percent. That is not taxing, it is taking. No, in 
fact, it is stealing.
  Senator Durbin also argues that the death tax only affects 8,200 
families. The truth is, the death tax doesn't affect 8,200 family 
members who may die; it affects millions of family members still living 
who are left to deal with Uncle Sam's sticky fingers.
  Let's take a look for a minute at homes in Senator Durbin's State. 
Keep in mind, in 2011, if Senator Durbin has his way, all estates of $1 
million or more will be taxed at a very high rate.
  He says: You will have to search long and hard for these families.
  But look at these homes in Chicago that he says are owned by the 
fattest cats. These are very modest and some would consider lower scale 
homes, all valued at over $1 million today. Are these the wealthiest 
Americans? If you look at Chicago, right now over 36,000 homes in urban 
areas would be affected by the 2011 death tax. But if you move ahead to 
2011 and look at the number of homes in the Chicago area that will be 
affected by the death tax, the Democratic death tax increase, you are 
looking at more than 143,000 homes. You don't have to look long and 
hard to find that many houses.
  What about other cities? By 2011, when the death tax is raised to the 
Democrats' level that they want, if you look around the country, over 
500,000 in New York City, over 200,000 in Boston, over 250,000 in 
Newark. If you go to Atlanta, 26,000; Chicago, as I said, 143,000; San 
Francisco, over a quarter of a million; Los Angeles, 812,000. You don't 
have to look long and hard to find these homes.
  The Census reports that just over 1 million homes in 2004 were 
subject to the death tax at the Democrats' level of 2011. In 2005, that 
number reached 1.4 million, over a 40-percent increase. As properties 
continue to appreciate, that number will continue to increase year 
after year, subjecting more and more Americans to the Democratic death 
tax. If you look at 2005, under the levels that will happen in 2011, 
there has been a 143-percent increase in the number of homes that will 
be affected, just in 2 years, based on the Democratic death tax.
  Let's talk about some farms. Let's look at who these families are who 
Senator Durbin claims have enjoyed a comfortable life--the ``fat cats'' 
as he calls them. There are nearly 30,000 farms in Illinois alone, many 
of them owned by families whose comfortable life has made them a target 
of Senator Durbin's death tax should we not vote to block the impending 
tax increase. Based on 2002 Illinois Farm Bureau figures, over one-
fourth--26.7 percent--of all Illinois farms would currently be subject 
to the death tax at Senator Durbin's rate of taxes in 2011. In 2011, 
you will have about 30,000 Illinois farms, or over 40 percent of all 
farms will likely be subject to the death tax. When we fail to prevent 
the 2011 Durbin death tax increase, it will not be hard to find almost 
one-half of Illinois' farms. If you take the USDA figures, the 
Department of Agriculture, they say that over half of the farms in 
Illinois will be subject to the death tax in 2011 if Senator Durbin 
gets his way.
  How many farms will be eligible if hit by the Democratic death tax 
increase in 2011? Well, again, the fat cats we are talking about, if 
you look at Arkansas, you have nearly 5,000; Missouri, 9,200; Iowa, 
nearly 20,000 farms; South Dakota, 5,500; in California, 20,000. Lots 
of family farms are going to be affected by the Democratic tax 
increase.
  Let's talk about small businesses, really the backbone of the 
American economy. Who are these--to quote Senator Durbin--``the fattest 
of cats who have taken millions of dollars to hire the most effective 
lobbyists in Washington, DC to push this''--as he calls it--
``outrageous special interest legislation.''
  Again, his numbers are somewhat questionable. The National Federation 
of Independent Business reports that 1.4 million small businesses would 
currently be subject to Durbin's tax increase in 2011 if the Democrats 
get their way. And by 2011, an additional 1.2 million will be eligible 
for the tax. A vote against the Republican legislation to reform the 
death tax is a vote to increase the death tax on 2.6 million small 
businesses.
  Are these 2.6 million hard-working small business owners and 
employers the fattest of cats? Small businesses that we all use every 
day will be affected.

  Let's take a closer look at some of the specific examples of these 
family farms, family homes, and family-owned businesses if the death 
tax is implemented the way the Democrats want. I will use one. The 
Greens, the Green family--Greens Printers. For 97 years, Janet Green 
and her family have owned and operated Greens Printers, Inc., in Long 
Beach, CA. Her company operates a sheet-fed, four-color printing plant 
with full bindery and electronic capabilities. The family wants to 
remain in business for many years to come. The fact that they have to 
pay a ridiculous insurance premium for the sole purpose of paying a tax 
when they die is not only absurd, it is antibusiness. However, the 
future of Greens Printers is being threatened by the death tax. Janet's 
company cannot afford to pay an enormous life insurance cost that would 
help pay for the death tax when

[[Page S10120]]

her parents need to pass on the business.
  Janet says:

       Because we are a third generation printing facility, we 
     have already paid the estate tax in the early 1970's. Both of 
     my parents are well into their seventies and not insurable 
     because of ill health and the astronomical cost associated to 
     do so. At roughly $100,000 a year [for this insurance 
     policy], we cannot afford it.

  She says:

       Let my employees keep their jobs and let us maintain the 
     risk of owning the business to keep them employed.

  She is reminding us it is not just the family that is affected, but 
it is everyone who works for these businesses who are ruined by this 
death tax.
  Over the years, Green has tried not only to be successful in 
generating profits, but also successful at being a good neighbor. She 
does this by supplying 20 people in the community with good jobs and 
benefits, and by building lasting relationships with employees that 
allow the company to plan for future growth and the workers to enjoy a 
stable income and fulfilling livelihood.
  Her family wants to keep Greens Printers even after she is gone.

       We have 16 grandchildren who would love to take over the 
     company and see it grow someday.

  She asked us in Congress:

       Does Congress really think that we small, family-owned 
     businesses out here have hundreds of thousands of dollars 
     tucked away for estate taxes? Any money we make we put right 
     back into the business by purchasing new equipment and hiring 
     more employees.

  Let's look at another business, the Barthle Brothers Ranch, in 
Florida. These are some more fat cats, as Senator Durbin would call 
them. Larry, Mark, and Randy Barthle are brothers who share a similar 
story with many ranchers around the country. They are trying to 
maintain the family ranch their father built in the early 1930s so they 
can pass it on to future generations.
  The ranch has received national recognition for its environmental 
stewardship practices that protect and promote the environment and 
wildlife. The family is dedicated to youth development to encourage 
future generations of ranchers to care for resources responsibly.
  Larry Barthle says:

       Our family was first struck by the Death Tax in the early 
     1970s when both my grandfather and uncle passed away within a 
     short period of each other. We had to sell 1,200 acres of the 
     ranch. Every penny went to pay taxes assessed to us and we 
     still had to take out a loan for the balance. Not one cent 
     was used for anything except taxes. After such a devastating 
     blow, it was my father's lifelong goal to be able to pass 
     along the ranch to his kids without being hit by the Death 
     Tax. He was successful at the time of his death because he 
     was able to make the transfers to my mother. We currently 
     have our ranch set up [in all kinds of legal frameworks in 
     order to try to get it through the death of another owner.]

  This is not fair to American families and businesses.
  Just one more quick example here, Mt. Pulaski Products. Scott and 
Kathryn Steinfort operate the family-owned Mt. Pulaski Products, Inc., 
in a small town in Illinois that bears the company name. It has been in 
business since 1951. They sell products that are absorbents and 
abrasives. For decades, the family has worked to build a successful 
business, which employs over 44 citizens there in Mt. Pulaski.
  The Steinforts also are known for their community service, dedicated 
to serving the community. They have two sons. Both are serving in Iraq, 
both with engineering degrees. While many other engineering graduates 
are making big salaries, they serve our country. Someday they would 
like to join the company business, but the death tax looms over the 
family business. Without wealth, the Steinforts may be forced to sell 
the business to pay for the death tax, not only taking from future 
generations but possibly putting 40 families out of work. The say:

       My wife and I have life insurance to cover these taxes, but 
     as we age our premiums are marching steadily higher. Combined 
     with not knowing how much we need to plan for in taxes and 
     fees, the potential costs ultimately point to only one path: 
     sale or liquidation of our plants to pay our tax burdens.

  I have a lot more here that we could talk about, but I will put up 
one more chart. The Senator from Illinois, Senator Durbin, has told the 
American people that only 8,200 American families are affected by the 
death tax. The only reason that is today is because the Republicans 
have overcome Democratic obstruction and at least temporarily reduced 
the death tax. If the Democrats get their way, the tax on the American 
family will reach over 3.3 million children and grandchildren of those 
who die in the 10 years after 2011. Over the next generation, millions 
of children and grandchildren and workers in small businesses and farms 
will be affected.
  I ask all my colleagues, what is the difference between these 
numbers? The difference is the truth. We have been misled, that this 
tax is about the wealthiest of Americans. Whereas, as we have seen 
today, in the homes and the farms, the small businesses, this tax is 
immoral. It steals from the American people, the hard-working families 
who put together some savings to pass along to the next generation. It 
is not to the fat cats and their lobbyists. It is to the average 
Americans, who are doing what we expect them to do, and that is to work 
and to save and to build a better future.
  Today we have seen again that the opportunity to compromise and at 
least reduce these taxes was blocked again by our Democratic 
colleagues. Yet they come to this floor every day and ask why we are 
not doing something for the cost of living of the American people, to 
help improve their future. I think the reason for this is obvious. 
Senator Cornyn brought it up a minute ago. The Democratic strategy is 
to block what needs to be done and then try to blame someone else when 
it does not get done. The American people are smarter than that and 
they will see the difference.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Louisiana.
  Ms. LANDRIEU. Mr. President, I ask unanimous consent to speak up to 
15 minutes as in morning business.
  The PRESIDING OFFICER. Is there objection? The Senator from 
Louisiana.
  Mr. HATCH. Will the Senator yield for a unanimous consent request?
  Ms. LANDRIEU. Yes.
  Mr. HATCH. Mr. President, I ask unanimous consent that I be 
recognized as soon as the distinguished Senator from Louisiana has 
finished.
  The PRESIDING OFFICER. Is there objection? Without objection, it is 
so ordered.
  There is agreement to both requests.
  Ms. LANDRIEU. Mr. President, I am sure there is going to be a very 
vigorous response to the charges that were made by my good friend, the 
Senator from South Carolina. Those will come later. I am sure that will 
be a very heated debate as we go on through these next few days and 
next few months.
  The PRESIDING OFFICER. The Senator from Louisiana is recognized as in 
morning business for up to 15 minutes.
  Ms. LANDRIEU. I thank the Chair.
  (The remarks of Ms. Landrieu pertaining to the submission of S. Res. 
585 are located in today's Record under ``Submission of Concurrent and 
Senate Resolutions.'')

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