[Congressional Record Volume 158, Number 60 (Wednesday, April 25, 2012)]
[Extensions of Remarks]
[Page E646]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       SMALL BUSINESS TAX CUT ACT

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                        Thursday, April 19, 2012

  Ms. McCOLLUM. Mr. Speaker, I rise in strong opposition to H.R. 9, the 
so-called Small Business Tax Cut Act. This bill is an incredible waste 
of taxpayer money that will do nothing to grow America's economy or 
create jobs.
  House Republicans admit that H.R. 9 will add $46 billion to federal 
deficits and force our country to borrow more money from foreign 
countries such as China. They argue deficit-spending is worthwhile 
because their bill will create jobs and stimulate economic growth. 
Unfortunately, there is absolutely no evidence to support their claim. 
The nonpartisan Joint Committee on Taxation determined the economic 
impact of this Republican bill is ``so small as to be incalculable.''
  The country's wealthiest individuals and corporations are the true 
beneficiaries of this legislation. H.R. 9 will provide over 125,000 
millionaires with an average tax cut of $58,000. According to the 
nonpartisan Tax Policy Center, nearly half of the bill's benefits go to 
individuals with annual income over $1 million even though this group 
comprises just 0.5 percent of all taxpayers and 4 percent of all small-
business employers. The largest tax breaks in this bill go to law 
partners, corporate consultants, lobbyists, hedge fund managers, and 
other highly profitable, private enterprises that do not need extra 
support from America's taxpayers.
  The tax benefits in H.R. 9 are so poorly targeted that reality-show 
stars Donald Trump, Paris Hilton and Kim Kardashian qualify as ``small 
businesses'' and will receive taxpayer-financed handouts. In fact, this 
legislation provides tax breaks to pornography shops and corporations 
that ship American jobs overseas.
  This legislation represents a new low point for the House Republican 
majority. It is so flawed that even fellow conservatives are mocking 
the bill. The Wall Street Journal editorial page calls H.R. 9 a ``tax 
gimmick.'' Former economic advisor to President Reagan Bruce Bartlett 
said H.R. 9 ``will do nothing whatsoever to increase employment. It is 
nothing more than an election year give-away to a favored Republican 
constituency and should not be taken seriously.''
  H.R. 9 is a signal to the American people that House Republicans are 
officially out of ideas for creating jobs. This bill merely recycles 
the Bush Administration's failed economic policies that ballooned the 
national debt and produced the lowest rate of job creation since World 
War Two. The nonpartisan Congressional Budget Office analyzed a range 
of policies that could be enacted to strengthen the economy and promote 
economic growth: this measure ranked second to last.
  I urge my Republican colleagues to abandon this dead-end legislation 
and instead, join with Democrats to support proven job creation 
measures, including bonus depreciation for main street businesses.

                          ____________________