[Congressional Record Volume 158, Number 54 (Monday, April 16, 2012)]
[Senate]
[Pages S2287-S2288]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
BUFFETT RULE
Mr. REID. Mr. President, as millions of Americans prepare to file
income tax returns, the Senate will consider one of the basic unfair
provisions in the Tax Code. Today the wealthiest 1 percent takes home
the highest share of the Nation's income since the early twenties, the
Roaring Twenties. But while their bank accounts have grown, their tax
bills have become smaller. The wealthiest Americans now pay the lowest
tax rate in more than five decades. The rich pay less than they have
for more than 50 years. This unfair system has turned a gap between the
richest few and everyone else into a gulf, not a gap. Over the last few
decades, a small number of Americans have seen their incomes skyrocket
by almost 300 percent, but for the rest of Americans wages have barely
moved. They have not kept pace with the price of a modest home,
college, or, of course, a secure retirement.
Times are tough for many middle-class American families, but
millionaires and billionaires are not sharing the pain or the
sacrifices--not one bit. Last year there were 7,000 millionaires who
did not pay a single penny in Federal income taxes. Seven thousand
millionaires did not pay a single penny in taxes. Instead, ordinary
Americans footed the bill. That is not fair. In recent years some
Americans earning north of $110 million a year paid a lower tax rate
than millions of middle-class families. That is also not fair. That is
how someone like our friend Warren Buffett winds up paying a lower tax
rate than his secretary, which also is not fair.
When the richest few are making more than ever before, they can
afford to shoulder their fair share of the burden and make this country
prosper. And they should not be allowed to hide behind tax loopholes
that rig the system in their favor. The Paying a Fair Share Act, known
as the Buffett rule, would restore fairness to a system that has
favored the interests of the wealthy for far too long. This legislation
would ensure that Americans who earn more than $1 million a year pay at
least 30 percent of their income in taxes. The bill would hold harmless
nearly every small business in America. In fact, more than 99 percent
of small businesses would be held harmless. It would maintain the
deduction for charitable giving. It would be a small but important step
toward restoring fiscal responsibility as our Nation makes difficult
choices about where to spend and what to cut.
Three-quarters of Americans believe millionaires and billionaires
should contribute more. Two-thirds of millionaires say it is time to
even the playing field. Yet, everywhere, all Republicans except those
within the beltway believe that is not the case. Republicans in
Congress would rather end Medicare as we know it, set forth in the so-
called infamous Ryan budget. They would rather slash education funding,
as set forth in that same infamous budget, than ask the richest of the
rich to contribute even a penny to make education more meaningful and
to continue maintaining Medicare as we know it. As the Senate Democrats
work to make our tax system fair for all Americans, Republicans in the
House continue to pursue a budget that would hand more tax breaks to
the wealthiest few--the so-called Ryan budget I was just talking about.
[[Page S2288]]
At its heart, this important debate and the Buffett rule are about
setting priorities. America can build a world-class education system
that will prepare our children and our grandchildren to compete in the
industries of tomorrow. We can honor our commitment to a generation of
young men and women who put their lives on the line to serve and
protect our freedom, and we can ensure that seniors who worked hard all
their lives look forward to a secure retirement and quality, affordable
health care or we can keep protecting special tax rates for the richest
of the rich. We cannot do both. We must make smart choices.
President Franklin Roosevelt once said:
In our personal ambitions we are individualists. But in our
seeking for economic and political progress as a nation, we
all go up or else all go down as one people.
I hope my Republican colleagues will join Democrats this evening as
we choose a path toward economic fairness that allows all Americans to
rise together as one people.
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