[Congressional Record Volume 157, Number 182 (Wednesday, November 30, 2011)]
[Senate]
[Pages S8009-S8010]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            PAYROLL TAX CUTS

  Mr. REID. Madam President, Republicans love to talk about taxes. They 
like them low, we like them high--or so they would have you believe. By 
that logic, Republicans ought to be lining up to support our payroll 
tax legislation. Democrats propose we cut taxes for 160 million 
Americans and every single business in our country. The average 
American family would save about $1,500. Yet Republicans appeared out 
of the woodwork to oppose our plan. They do not like these particular 
tax cuts because they are paid for with a small, 3.25-percent surtax on 
people making more than $1 million a year. But we have learned that 
Republicans only care about keeping taxes low for a very small group of 
people. This small group is the richest of the rich.
  Here is the contrast. One side has Democrats fighting to cut taxes 
for 160 million Americans who make an average of less than $30,000 a 
year. On the other side, we have Republicans fighting to keep taxes low 
for fewer than 350,000 people who take home more than $3 million every 
year. The contrast: 160 million Americans who make an average of less 
than $30,000 a year; on the other side, Republicans are fighting to 
keep taxes low for the richest of the rich--350,000 people who make 
more than $3 million a year.
  What is worse, if Republicans get their way, if they are able to give 
the richest of the rich a pay increase, in effect, taxes will actually 
increase by about $1,000 a year for 120 million American families. 
Every American family will have $1,000 less to spend on food, clothing, 
and diapers next year--except those 350,000 people.
  Republicans can continue to try to protect people who earn an average 
of $3 million apiece. We are not going to do that, not in today's 
economy. In other words, Republicans are increasing taxes on nearly 
every American family to protect people who make an average of $37,500 
a week--far more than most Americans make in a year. You can take 
Nevada, you can take Kentucky--take Kentucky, the home of my friend the 
Republican leader. There, 2.1 million middle-class workers will be hit 
with a tax increase if the Republicans block our proposal. In Nevada, 
we have fewer people than Kentucky, but the same basically applies

[[Page S8010]]

in Nevada. But in Kentucky specifically, 1,345 Kentuckians earn an 
average of $3.5 million each, each year, and that will be protected 
thanks to the efforts of Senate Republicans.
  Why would Republicans throw 92 percent of American families under the 
bus, whacking them with a tax increase beginning January 1, to protect 
the richest of the rich? Why would they do that? It certainly sounds 
like political suicide, not to mention shockingly callous policy. One 
might assume there is a compelling reason for Republicans to stake out 
this seemingly indefensible ground, to take the side of the top two-
tenths of 1 percent of American earners while raising taxes on 160 
million others.
  Here is their reason. They say they want to protect job creators. Of 
course that claim is laughable on its face. Our bill would cut taxes 
for literally every business in America, and for 98 percent of these 
companies, these firms, including virtually every small business, it 
would cut payroll taxes in half, from 6.2 percent to 3.1 percent.
  I could quote virtually every member of the Republican caucus, all 47 
of them, singing the praises of small businesses that create jobs 
because they have come at various times during this year and previous 
years to talk about small businesses, what good they do for America. 
And I agree with that. You will not get disagreement from Democrats. 
That is why our bill cuts taxes for every small business in America, 
including 50,000 firms in Nevada. Yet legislation that will cut taxes 
for 92 percent of American families and every single business in the 
Nation without adding a penny to the deficit may not get a single 
Republican vote because it would cost a few incredibly prosperous, rich 
Americans about 2 weeks of pay.

  To top it all off, Republicans know the tax increase they are 
foisting on middle-class families would be devastating for our economy. 
The Economic Policy Institute has stated that this Republican tax hike 
will reduce GDP by $128 billion and cost almost 1 million jobs--972,000 
to be exact. That would send our economy back into a tailspin, and it 
is impossible to tell how long would be our recovery.
  Republicans often say we cannot afford to raise taxes on the top two-
tenths of 1 percent of American taxpayers, so I ask, how can we afford 
a tax increase on 92 percent of American families?

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