[Congressional Record Volume 158, Number 55 (Tuesday, April 17, 2012)]
[House]
[Pages H1850-H1851]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAXES
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Oregon (Mr. Blumenauer) for 5 minutes.
Mr. BLUMENAUER. Mr. Speaker, today is the deadline for filing tax
returns. Even though we were given 2 extra days this year, we are
running out of time for the Tax Code.
The tax system doesn't generate enough money for what America needs
and spends today. It's getting more expensive every year to continue
the huge array of tax breaks even as the code itself becomes more
unfair, complex, and inefficient. It costs over $160 billion a year for
Americans just to comply with the Tax Code.
The path forward should be simple. First, we should stop making the
code more complex, which, sadly, the Republican plan working its way
forward will do with $50 billion of additional unfocused tax breaks. At
least if we're going to borrow another $50 billion from the Chinese, we
should use it to fund job-creating infrastructure. For instance, that
$50 billion would enable us to fund a multiyear transportation
reauthorization.
We should also repeal the pernicious alternative minimum tax. It was
once designed as a tax on very rich people who didn't pay taxes. Today,
no billionaire hedge fund manager pays the alternative minimum tax.
Instead, it falls on upper middle-income families, especially those who
pay a lot of taxes.
Every year we find some creative way to avoid the consequence of it
not being indexed for inflation. Every year we find some way to have a
fix, to have a patch to avoid the alternative minimum tax's full
impact. Unless somehow there is a complete breakdown in the political
process, which, sadly, is not impossible, as we saw this last year with
the FAA reauthorization. If that were to happen, then at least the full
fury of 20 to 30 million of upper middle-income and middle-income
households who would be forced to pay it--they would force it to be
repealed.
We should combine the alternative minimum tax repeal with the
imposition of the so-called ``Buffett Rule,'' where millionaires at
least pay as much as the people who answer their phones and drive them
to work. This will get back to the original intent of the alternative
minimum tax but in a way that simplifies the Tax Code rather than
further complicating it.
We should stop the dangerous practice of suspending some of the
payroll tax in the name of economic stimulus. We are uncomfortably
close to destabilizing the long-term funding mechanism for Social
Security. Instead of the payroll tax cut, let's target a tax credit for
lower and middle-income families that will be fair, affordable, and
help nurture our fragile economic recovery without threatening the
long-term Social Security stability.
We should target for elimination tax breaks that are out of date,
like the subsidy of oil that doesn't reflect current production
techniques or the reality of global petroleum markets. We should
instead protect subsidies that are key for our future, especially
expiring renewable energy tax credits. We should renew the section 1603
Treasury grant program, which reflects current market realities and
would actually be less expensive than traditional tax credits.
On this tax day, we should look for some progress towards building
momentum for real tax reform. The Romney-Republican House budget
refuses to identify any of the massive tax increases that will be
necessary to meet
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their plan of even more tax cuts for the rich, and not increase the
deficit.
With $4 trillion in expiring tax provisions later this year, we
should use some of that economic capacity to make the tax system more
fair and simple while we reduce the debt.
The time to begin that process is now--not making the Tax Code more
complex, not favoring those who need help the least, not risking long-
term Social Security funding, and not borrowing for unfocused new tax
relief. Instead, let's deal with investments like renewable energy and
infrastructure. Let's use some of this budget capacity to reduce the
overall corporate tax rate while broadening the base and closing
loopholes.
Simpler, fairer, better for business. Let's eliminate the tyranny of
the alternative minimum tax, protect our energy future, and support
renewables. There is a path forward, and we should start on it now.
What better way to honor American taxpayers on filing day than getting
serious with an agenda that can actually be achieved, and should be.
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