[Congressional Record Volume 163, Number 181 (Tuesday, November 7, 2017)]
[House]
[Pages H8527-H8528]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        REPUBLICAN TAX PROPOSAL

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
South Carolina (Mr. Clyburn) for 5 minutes.
  Mr. CLYBURN. Mr. Speaker, I rise to alert the American people to the 
tax scam that is the Republican tax reform proposal, unveiled last 
week. It is reported that President Trump wanted to call this bill 
``cut, cut, cut.'' That would have been apropos.
  The first cut is for him and his family members, the second cut is 
for his wealthy friends and acquaintances, and the third cut is for 
large corporations classified as LLCs. It certainly does not cut taxes 
for middle-income families or most small businesses. In fact, it does 
just the opposite. It is crystal clear who gets the cuts and who gets 
to pay more.
  First and foremost, the GOP tax plan eliminates inheritance taxes 
that only apply to two-tenths of 1 percent of families who wish to pass 
along their wealth, unearned and untaxed.
  Why are Republicans doing this? Because it is a huge priority for 
some of their biggest donors, and the middle-income families will be 
asked to pay for this $172 billion giveaway to the superrich.
  The GOP pretend not to be cutting taxes for the superrich by 
maintaining the top rate of 39.6 percent. However, their plan increases 
the income levels that the 39.6 percent applies to from $470,000 a year 
to $1 million. These proposed rate changes will cost over $1 trillion.
  The GOP tax plan also features a special rate for the owners of 
passthrough businesses that will cost $448 billion. These are LLCs and 
partnerships that pay zero corporate taxes and whose owners' income is 
treated the same as everybody else's.
  LLCs and other types of passthroughs make up 95 percent of all the 
businesses in the country. Some of the largest businesses, like Koch 
Industries, Chrysler, and, of course, most of the entities owned by the 
Trump organization are LLCs.
  Passthroughs that are truly small businesses are not currently 
subject to the highest individual rates and already pay 25 percent or 
lower. The National Federation of Independent Businesses opposes this 
provision for this very reason.
  Mr. Speaker, most of us, especially those who have worked in State 
governments, view our States as the best

[[Page H8528]]

laboratories for the development of good ideas and best practices. This 
passthrough idea was the centerpiece of Governor Sam Brownback's tax 
overhaul in Kansas 5 years ago. The Governor promised it would yield 
massive economic growth.
  And what happened? Kansas was plunged into a massive budget deficit 
and forced to make draconian cuts to education, infrastructure, and the 
rest of the State's operations. This year, the Kansas Legislature 
overrode Governor Brownback's shortsighted experiment.
  I urge my colleagues not to make the same mistake here. This scam 
will subject the good people of this country to a second great 
recession in a single decade. Middle-income families will pay more 
because the GOP plan eliminates deductions for State and local taxes. 
This includes millions of Americans and over 500,000 South Carolinians.
  Middle-income families who itemize deductions will pay more because 
the elimination of the personal exemption will cost their households 
$4,000 per member.
  Middle-income families who utilize mortgage interest deductions will 
pay more because the GOP plan lowers the cap.
  Middle-income families with children in college, or recent graduates, 
will pay more because the GOP plan eliminates the deductions for 
interest on student loans.
  Middle-income families that are victims of natural disasters will pay 
more because the GOP plan eliminates the casualty loss deduction.
  Mr. Speaker, I rise to alert the American people to the tax scam that 
is the Republican ``tax reform'' proposal, unveiled last week. It is 
reported that President Trump wanted to call this bill, ``cut, cut, 
cut.'' That would have been apropos. The first cut is for him and his 
family members, the second cut is for his wealthy friends and 
acquaintances, and the third cut is for large corporations classified 
as LLCs. It certainly does not cut taxes for middle income families or 
most small businesses. In fact, it does just the opposite. It is 
crystal clear who gets the cuts and who gets to pay more.
  First and foremost, the GOP tax plan eliminates inheritance taxes. 
This tax only applies to estates of over $11 million and only affects 
two tenths of one percent of families in America, those who wish to 
pass along their wealth, unearned and untaxed.
  Why are Republicans doing this? Because it's a huge priority for some 
of their biggest donors. In fact, this cut is not even about the 0.2 
percent--it's really about two families--the Mercers and the Kochs.
  The bottom line is that America's hard-working low, moderate and 
middle-income families will be asked to pay for this $172 billion 
dollar give away to the super rich.
  At the heart of this scam is the GOP pretense not to be cutting taxes 
for the super-rich by maintaining the top rate of 39.6 percent. 
However, it increases the income level that the 39.6 percent applies 
to; from $470,000 to $1 million. These proposed rate changes will cost 
over $1 trillion.
  This cut also goes to those who make far more than $1 million as 
well. Whether your income is $1 million, $10 million, or $100 million, 
this provision alone gives you an extra $25,000 a year. Mr. Speaker, 
many South Carolinians I represent do not make $25,000 in a year.
  The GOP tax plan also features a special rate for the owners of 
``pass-through'' businesses at a cost of $448 billion. These are LLCs 
and partnerships, who pay zero corporate tax, and whose owners' income 
is treated the same as anybody else's.
  The Republicans claim that giving these owners a special lower rate 
will help small businesses, but nothing could be further from the 
truth. LLCs and other types of pass-throughs make up 95 percent of all 
the businesses in the country. In fact, some of the largest businesses 
like Koch Industries, Chrysler, and of course, most of the entities 
owned by the Trump Organization, are LLCs.
  Pass-throughs that are truly small businesses are not currently 
subject to the highest individual rates, and already pay 25 percent or 
lower. The National Federation of Independent Businesses opposes this 
provision for this very reason. It delivers a special low tax rate to 
wealthy owners and will not help the small businesses they claim that 
it will.
  Mr. Speaker, most of us, especially those who have worked in State 
governments, view our states as the best laboratories for the 
development of good ideas and best practices. This pass-through idea 
was the centerpiece of Governor Sam Brownback's tax overhaul in Kansas 
just five years ago. The Governor promised it would yield massive 
economic growth. And what happened? Kansas was plunged into a massive 
budget deficit and forced to make draconian cuts to education, 
infrastructure, and the rest of the state's operations.
  This year, the Kansas legislature overrode Governor Brownback's 
short-sighted experiment.
  I urge my colleagues not to make the same mistake. This scam will 
subject the good people of this country into a second great recession 
in a single decade.
  Let's take a look at who pays more while the President and his 
wealthy friends and acquaintances pay less.
  Middle income families will pay more because the GOP plan eliminates 
deductions on state and local taxes. This includes millions of 
Americans and over 500,000 South Carolinians.
  Middle income families who itemize deductions will pay more because 
the elimination of the personal exemption will cost their households 
$4,000 per member.
  Middle income families who utilize the mortgage interest deduction 
will pay more because the GOP plan lowers the cap, costing millions of 
Americans more.
  Middle income families with children in college or recent graduates 
will pay more because the GOP plan eliminates the deduction for 
interest on student loans.
  Middle income families that are victims of natural disasters will pay 
more because the GOP plan eliminates the casualty loss deduction.
  Middle income families who adopt children will pay more because the 
GOP plan eliminates the adoption tax credit.
  Middle income school teachers will pay more because the GOP plan 
eliminates their ability for to deduct for supplies they may purchase 
for their classrooms.
  Middle income families struggling to pay costly medical bills will 
pay more because the GOP plan shamefully eliminates their 
deductibility.
  Mr. Speaker, paying for pass-through gimmicks and tax giveaways to 
multi-millionaires by raising taxes on moderate and middle-income 
Americans is reprehensible.
  Democrats are ready to do real tax reform on a bipartisan basis. But 
not once in this process, has the other side attempted to negotiate. In 
fact, they have publicly made it abundantly clear that they want a bill 
that only Republicans will support.
  Bipartisan tax reform should lower taxes for working people, not 
raise them.
  Bipartisan tax reform should end incentives for offshoring jobs and 
level the playing field for American corporations.
  Bipartisan tax reform should expand the Earned Income Tax Credit for 
single filers and the Child Tax Credit to help families.
  Real bipartisan tax reform would not increase the deficit, add to the 
debt and pass the bill on to our children and grandchildren.
  I know many of my colleagues share these values. Let's set aside this 
partisan process and do something worthwhile for the American people. 
Until then, the Democratic Caucus will be resolute in our opposition to 
ramming through tax increases for middle income Americans and massive 
giveaways for the rich.

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