[Congressional Record Volume 163, Number 188 (Thursday, November 16, 2017)]
[House]
[Pages H9405-H9414]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAX CUTS AND JOBS ACT
The SPEAKER pro tempore. Pursuant to clause 1(c) of rule XIX, further
consideration of the bill (H.R. 1) to provide for reconciliation
pursuant to title II of the concurrent resolution on the budget for
fiscal year 2018, will now resume.
The Clerk read the title of the bill.
The SPEAKER pro tempore. When proceedings were postponed earlier
today, 29\1/2\ minutes of debate remained on the bill.
The gentleman from Texas (Mr. Brady) has 17 minutes remaining and,
without objection, the gentleman from Massachusetts (Mr. Neal) has
12\1/2\ minutes remaining.
There was no objection.
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Texas.
Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the gentleman
from Alaska (Mr. Young).
Mr. YOUNG of Alaska. Mr. Speaker, Congress established Alaska Native
Settlement Trusts in 1988 to provide permanent health, education, and
welfare benefits to Alaska Natives, who are among the most economically
disadvantaged populations in the United States.
Unfortunately, Mr. Speaker, the Tax Code has, in many cases, impeded
the creation and funding of Alaska Native Settlement Trusts. As a
result, Alaska Native Settlement Trusts have not been able to function
in the manner Congress originally intended to provide benefits for
Alaska Natives. To remedy some of these tax issues, I have sponsored
H.R. 3524, which permits an Alaska Native corporation to deduct
contributions to their settlement trust.
The provisions of H.R. 3524 were not included in H.R. 1, and the tax
bill also adversely increases Alaska Native Settlement Trust tax rates
from 10 percent to 12 percent. This would make it more difficult for
Alaska Native Settlement Trusts to provide long-term benefits to Alaska
Natives.
Mr. Speaker, I request that the provisions of H.R. 3524 be included
in the final conference report that results from the conference
committee.
Mr. BRADY of Texas. Will the gentleman yield?
Mr. YOUNG of Alaska. I yield to the gentleman.
Mr. BRADY of Texas. Mr. Speaker, I am pleased to work with the
gentleman from Alaska (Mr. Young) on this important issue for the
Alaska Native community. Under the tax bill, Alaska Native Settlement
Trusts would be unintentionally subject to a higher tax rate.
I thank him for bringing this to my intention. I assure him that I
will focus on this in conference as we finalize individual rate
structures between the House and the Senate. I also look forward to
working with him to advance the provisions of his bill in this
important area.
Mr. YOUNG of Alaska. Mr. Speaker, I thank the chairman for those
remarks. He has been great to work with. His staff has been
outstanding. I thank him for his commitment to working on the inclusion
of H.R. 3524 and maintaining existing rates in law with regard to
Alaska Native Settlement Trusts, and, more generally, for his support
of the Alaska Native community.
Mr. NEAL. Mr. Speaker, I yield myself 4 minutes.
Mr. Speaker, as we wind down this debate on tax reform or, what we
should really call it, tax cut, I think that we should tabulate this as
a missed opportunity. This could have
[[Page H9406]]
been done between the two parties. Instead, much of this was
constructed without any Democratic input.
Reminder: In 1986, the historic Tax Reform Act included President
Reagan and Speaker O'Neill, Chairman Rostenkowski, Dick Gephardt, and
Bill Bradley. In this instance here, 32 years later, not one hearing
was held on this tax bill that is about to be voted on in the next 45
minutes.
The significance of that is that there was never any back-and-forth,
and in 1986, expert testimony was sought from 450 witnesses. We had not
one witness who commented on the legislation.
It has been advertised as a middle class tax cut. Wait until you get
the bill. How can you say that this is a middle class tax cut and
compare that to repeal of the estate tax?
How many middle class people in America pay the estate tax?
That is how many people pay the estate tax. No middle class American
pays the estate tax. There is no such thing as a death tax, in addition
to which a middle class tax cut is described as doing away with the
alternative minimum tax. 4.5 million families pay an alternative
minimum tax in America. That is it.
I fixed the problem years ago for the middle class, and 27 million
people stopped paying AMT. So now we are down to people at the very
top.
So how are we paying for this? Or how are they paying for it, better,
because they are not going to get much help on this side?
Well, they decided that that teacher who used to have $250, that they
could deduct on their income taxes, that is going to be abolished.
So if you have Alzheimer's and you exceed the 10 percent number in
terms of cost in your healthcare for caring for that loved one at home
who is sick or has dementia, that is how they are going to pay for the
tax cut. They are going to take that away.
State and local property taxes, they are going to take that away--the
deduction. They are going to pare back the mortgage interest tax
deduction. All of this advertised on the basis of a middle class tax
cut?
People at the bottom end are not going to get much from this tax cut.
I want to take you back again, as I have repeatedly, because I have
cast three great votes in this House during my 29 years: against the
Iraq war, and there weren't many of us; against the cuts in 2001; and
against the tax system in 2003; all advertised as progrowth economics.
There was no economic growth in the tax cuts of 2001, which totaled,
by the way, $1.3 trillion. For people who said at the time, ``everybody
gets a tax cut,'' they were correct. Then you looked at the
distribution tables to see what people got at the top and then what
people got at the bottom. Then we came back in 2003 and cut another
trillion dollars in taxes--advertises progrowth economics--zippo growth
occurred.
Then, by the way, the granddaddy of them all: How about repatriation.
Repatriation, bringing back those earnings to the United States for
investment in job growth, at, by the way, 5\1/4\ was the tax burden
they carried, all based on job growth. It was for stock buybacks,
dividends, and layoffs.
We had a chance here to do something historic. We had a chance here
in this debate and discussion because there is a genuine affability on
that committee. We had this opportunity to take the Tax Code and
transform it for the gig economy in the modern age. We didn't do that,
though. Four days we had to examine this tax proposal with no hearings.
Not one chance for a Democratic amendment to proceed.
I reserve the balance of my time.
Mr. BRADY of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, this historic legislation before us today represents a
crucial step to fulfilling our tax reform promise to the American
people, but it is not the final step. We are Republicans. We believe
the Tax Code doesn't belong to Washington. It belongs to the American
people. We will continue to work to make it better and improve at every
step of the way.
Before I make final remarks, I want to thank all of our Ways and
Means Committee members who have done so much and worked so hard, as
well as every Member of this House who helped make this opportunity
real for the American people.
I also want to say how grateful I am to everyone at the nonpartisan
Joint Committee on Taxation and the House Office of the Legislative
Counsel. Their careful analysis contributed so much to this bill.
Finally, I want to give special recognition to Barbara Angus, the
chief tax counsel on the Ways and Means Committee, and all of our staff
on the committee, who put their hearts and their souls and many
sleepiness nights in the development of this bill. I can't thank them
enough for their hard work and dedication.
Mr. Speaker, the House of Representatives is, by its very design, the
Chamber of Congress closest to the American people. Today, this House--
the people's House--will pass historic legislation to improve the lives
of Americans nationwide.
For too long, this broken Tax Code has put the needs of the people
second, propping up Washington's special interests at the expense of
hardworking Americans.
For too long, this broken Tax Code has rewarded companies for
outsourcing American jobs instead of encouraging them to create jobs
here at home.
For too long, this broken Tax Code has eroded America's economic
leadership around the world.
This country used to be the standard-bearer worldwide for competitive
tax systems. Not anymore. Now the United States is barely a spec in the
rearview mirrors of so many of our international competitors.
In our businesses, our workers, our Made in America products, which
are the best in the world, are bearing the consequences of Washington's
failure to act. That stops now, and it stops with the Tax Cuts and Jobs
Act.
With this historic bill, we will provide real simplicity for every
taxpayer, we will deliver real fairness to every hardworking American,
we will be more competitive than ever, we will win worldwide and here
at home, and we will see better jobs and bigger paychecks in every
community of this great Nation so people can keep more of their hard-
earned dollars.
With this bill, we will deliver a new Tax Code built for a new era of
American prosperity.
So to Washington's special interests, who are now being propped up by
absurd carve-outs and loopholes, get ready to stand on your own. To our
international competitors, who are now leading the pack, get ready to
have some company. To the American people, who have waited years for
tax reform, get ready for the tax relief you deserve.
Today, this House--the people's House--is taking action on the most
transformational tax overhaul in a generation, and we are taking action
today. It is time for this old, broken Tax Code to go. It is time to
put the American people first.
Mr. Speaker, I reserve the balance of my time.
Mr. NEAL. Mr. Speaker, I yield myself 2\1/2\ minutes.
Mr. Speaker, let me acknowledge the support of the Democratic staff
that are here as well: Kara Getz, Karen McAfee, Aruna Kalyanam, Peg
McGlinch, Deva Kyle, Ji Prichard, and Suzanne Walsh. They did a
magnificent job as well, and we are much dependent on the good staff
work, particularly, on the Ways and Means Committee.
Mr. Speaker, I spoke earlier of the missed opportunity that we have
here. We have a real problem in America with labor participation rates.
Six million job go unanswered every day now in America, 18,000
precision manufacturing jobs in New England, and 1 million tech jobs,
because skill sets don't align with the job opportunities that are out
there.
Two million Americans sit home with opioid addictions who should be
in the workforce. This was a chance to invest in human capital as well,
to invest in our community colleges, to invest in apprenticeship
programs. Yes, the other challenge that we have in America is, clearly,
to invest in vocational education for many of the jobs that are
available.
Instead, we pushed that off to the side and decided that, once again,
if we just had tax cuts, all of these challenges and problems would go
away.
The idea of investing in the human side of American opportunity is
then
[[Page H9407]]
people do what we would like them to do in terms of home buying,
raising families, caring for neighborhoods, and practicing the art form
of citizenship.
Once again, what we are witnessing today--and we need to be alarmed
about it--is the greater and greater conservation of wealth in America.
Now, I understand it is complicated. It has to do much with technology
and globalization, but it is also about the gig economy, and we, today,
reward capital more than we reward labor.
When we get done, if they are successful on the other side, we are
going to further concentrate wealth amongst those few families in
America. We serve here in the House of Representatives, not in the
House of Lords. This is not about peerage, where you are entitled to a
seat in this House of Representatives. That is what is wrong. That is
what Jefferson and Madison envisioned when they signed those bonds of
the Declaration of Independence and the American Constitution to break
with Europe. We don't practice divine right here.
I wish the outcome here today, Mr. Speaker, would have been more
genuine and it would have been different.
Mr. BRADY of Texas. Mr. Speaker, I yield 3 minutes to the gentleman
from Louisiana (Mr. Scalise), our majority whip and a tremendous leader
on tax reform.
{time} 1245
Mr. SCALISE. Mr. Speaker, I want to thank my friend and colleague
from Texas. Chairman Brady has done an incredible job at bringing this
Tax Cuts and Jobs Act to the House floor.
=========================== NOTE ===========================
November 16, 2017, on page H9407, the following appeared: Mr.
Speaker, I want to thank my friend and colleague from Texas.
The online version has been corrected to read: Mr. SCALISE. Mr.
Speaker, I want to thank my friend and colleague from Texas.
========================= END NOTE =========================
Today is an historic day, Mr. Speaker. For families who for so long
have been calling out saying that they want to pay less in taxes, we
answer that call today, Mr. Speaker.
When you have heard the complaints, as I and so many others have
every time we see a company move more jobs overseas, good, high-paying
jobs overseas because America has the highest tax rate in the
industrialized world, we finally do something about that today, Mr.
Speaker, by cutting the corporate rate so that we can be competitive
again and so that we can bring those jobs back home.
Let's talk about something else that is going to be a benefit to
hardworking families in this bill, Mr. Speaker. We finally simplify the
Tax Code in a way that over 90 percent of American families will
actually be able to do their taxes on a postcard. Just think of how
much that is going to save for people who have to pay to have their
taxes done because the Code is so complicated and has become so massive
that nobody can figure it out. We simplify the Code.
Let's go through those things.
We lower tax rates. Everybody is going to see lower tax rates at
every income level.
We double the standard deduction from $12,000 to $24,000 that every
family can take advantage of now. That doubled standard deduction is
going to be a big win for hardworking families that are struggling.
We eliminate special interest loopholes, Mr. Speaker. You might hear
a lot of complaints out there from people who have been able to get
their little piece of the Tax Code. The problem is, every time somebody
gets a special interest loophole, it costs the rest of us. Now we get
rid of those loopholes so that everybody can pay less in taxes. That is
a big win for hardworking families.
Mr. Speaker, in our bill, we completely repeal the death tax,
probably one of the most immoral parts of our Code, where small
businesses, family farms, if their loved one dies, the first thing they
are thinking is grieving for their loved one, but immediately after,
they get a big tax bill from the Federal Government that, in many
cases, forces them to sell their small business instead of passing it
on to their family. That is part of the American Dream. They pay taxes
on it. We repeal the death tax.
We deliver a much fairer Code, Mr. Speaker. Again, what this bill is
about is finally putting more money in the pockets of hardworking
families. It is about getting our economy moving again and creating
jobs.
Families recognize when they see the highest corporate tax rate in
the industrialized world, tens of thousands of jobs going to countries
like Ireland and Canada. I love Ireland and I love Canada. I just don't
want them to have tens of thousands of our good jobs. Let's bring those
jobs back. In our bill, we do that, Mr. Speaker.
This bill is a win for hardworking families. This puts money back in
the pockets of people who have been struggling so long, and it allows
the economic growth that is going to see wages finally increase. After
10 years of a stagnant economy, it is about time we finally answer the
call that millions of Americans have been asking us to do for so long,
Mr. Speaker.
Let's pass the Tax Cuts and Jobs Act and get our economy moving
again.
Mr. NEAL. Mr. Speaker, I yield 5 minutes to the gentleman from
Maryland (Mr. Hoyer), a very capable legislator, the Democratic whip.
Mr. HOYER. Mr. Speaker, I thank the gentleman for yielding.
This is the most irresponsible bill that I will have been confronted
with in the 37 years that I have been in the Congress of the United
States.
This bill, Mr. Speaker, is both reckless and feckless. It is reckless
because it would add more than $1.7 trillion--the chairman says over $2
trillion--to the debt over a decade in a shameful act of hypocrisy for
its supporters who, for years, have called for fiscal responsibility.
It is feckless because its authors write it with an eye toward
politics, not policy.
There is no courage in voting for this bill. It is easy to vote for a
tax cut. What is hard to do is paying for what we buy. Neither side
does that particularly well.
There is no courage in voting for this bill, only a suspension of
common sense and their now abandoned commitment to fiscal
sustainability.
Furthermore, my Republican friends call this bill a tax cut. The
gentleman who just spoke, the whip, said it is a reduction in rates,
but 36 million working Americans will receive a tax increase under this
bill. It was a very careful articulation of reduction of rates, but
taxes for 36 million Americans, working Americans, will go up.
Furthermore, they call this bill a tax cut. It is not a stretch of
the imagination to presume that, given Republicans' urgency to reject
bipartisan compromise and deflect public input, the Members of this
House will be asked to accept whatever version of the tax bill can pass
the United States Senate.
Yesterday, the Senate Finance Committee rejected this bill 36-0. The
Senate Finance Committee, headed by Republicans, rejected this bill 36-
0.
I am reminded of what Representative Matt Gaetz, a Republican, said
last month about the budget resolution that teed up this tax plan. He
said that we were being ``asked to vote for a budget that nobody
believes in so that we have the chance to vote for a tax bill that
nobody's read.''
Mr. Speaker, I won't ask anyone to raise their hand if they have read
this bill.
One hand.
Those who take this vote will have to live with it and just hope that
whatever mystery tax package their Senate colleagues send over here
won't gut whatever concessions they have extracted
I heard the whip say no special provisions in this bill. I don't have
the time to go through every special provision that has been used to
get people to vote for this bill.
Mr. Speaker, this isn't the tax reform the American people were
promised or the tax reform the American people want.
Mr. Speaker, let's sit down together. Let's sit down together, the
chairman and Mr. Neal, two responsible, good Americans, sit down
together not in a partisan way, but in a bipartisan way. That is the
way we did the 1986 bill. That is why it was such a responsible piece
of legislation.
Let's enact tax reform that focuses on the working class, the middle
class, the people who need the money, not give over half of it to the
richest people in America. I don't have any beef with them, we would
all like to be rich, but they don't need a tax cut, and the middle
class does. Why give 50 percent of the revenue to them?
Let's enact tax reform that focuses on the middle class. Let's enact
tax reform that doesn't give half the benefit to those making more than
$900,000 a year.
[[Page H9408]]
Let's enact tax reform that improves our long-term fiscal position
rather than adding the $1.7 trillion to our debt that the CBO projects
that this bill would add.
As former Treasury Secretary Robert Rubin pointed out in an op-ed in
today's Washington Post--and, by the way, he was the Secretary of the
Treasury during the only 4 years of balanced budgets that we have
experienced in the last 50 years.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. HOYER. Vote ``no'' on this bill. Look to your souls, not your
polls or your political accounts.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. HOYER. Reject this sellout of America's future.
The SPEAKER pro tempore. The time of the gentleman has expired.
The gentleman is no longer recognized.
Mr. HOYER. * * *.
Mr. BRADY of Texas. Mr. Speaker, I yield 1 minute to the gentleman
from California (Mr. McCarthy), our majority leader and a champion for
tax reform.
Mr. McCARTHY. Mr. Speaker, I thank the gentleman for yielding.
Mr. Speaker, before I begin, I want to thank the gentleman. I want to
thank him for all those Americans out there who have waited decades for
this, for the hours that he has listened, for the numerous hearings he
has gone through to get us to this day.
Mr. Speaker, I stand before this body, but I want to speak to the
people watching us at home right now and who will hear us in the hours
and days to come. I want to speak to the people who stretch their
budgets to get to the next paycheck. I want to speak to the people who
are starting to wonder if the American promise no longer applies to
them.
You need a comeback. America needs a comeback.
If we are successful today and in the weeks to come, you will keep
more of the money that you earned. You will have more in your paycheck.
Your life will improve. If we succeed, you will succeed, but if the
leaders and obstructionists on the other side of the aisle win, you
will lose. You see, they want Washington insiders and bureaucrats to
keep more of your hard-earned income. They think it is theirs to spend.
We think it is yours.
Now, I have tried my best to understand their opposition, and I have
listened to the pessimistic leaders of a party that once upon a time
claimed they stood for the common man.
Without a shred of evidence, they are certain our plan won't work.
They drum up a stale argument from 30 years ago, saying all this bill
does is help the rich. They call it a middle class tax hike.
That same paper our colleague just held also has fact checkers, but
the fact checkers gave them not one, not two, not even three, but the
most Pinocchios you can give, four, for that lie.
Every honest person sees this as a tax cut for hardworking Americans.
This bill increases the child tax credit, increases the standard
deduction, increases wages, and is already bringing back jobs to
America.
The fact is the first $55,000 an average family of four earns will
not face a single penny of income tax, not a single penny.
So what are these party leaders defending by their opposition?
It is not the people. After all, there is not a single person I have
ever met in this Nation who wants higher rates, lower wages, fewer
jobs, and a more complicated Tax Code. No, they aren't defending the
people.
They are defending loopholes for the special interests, corporate
welfare, and carve-outs for lobbyists. They are defending the abusive
tactics of the status quo at the IRS.
You know what I find most absurd? They are defending the reckless
tax-and-spend policies of broken States across this country. They have
made it their mission to increase taxes on our fellow citizens. My
friends on the other side of the aisle have the audacity to call this a
tax increase. In the end, they are defending a broken status quo.
You know what I think, Mr. Speaker? I think that voting ``no'' on a
plan with lower taxes, higher wages, more jobs, and a simpler system,
that isn't about Republicans and Democrats. Voting ``no'' is telling
the American people you do not have faith in them to rise if they are
given a fair shot.
Mr. Speaker, I have a simple question for this House and for everyone
who is watching at home: Do you want higher taxes and less money in
your pockets or do you want lower taxes and more money?
I think we have sent a message to the doubters and the critics. The
American people do not want hard work to be punished. We do not accept
decline. We do not accept that Washington knows how to spend our money
better than we do.
I have a different message for the American people: To those trying
to find a job, that long search is coming to an end. This is your
comeback.
To those sick of just getting by and fighting for a raise, this is
your comeback.
To those struggling to keep your small business afloat, to pay your
employees, to help your neighborhood, this is your comeback.
{time} 1300
To every American who ever dreamed of being an entrepreneur and
owning a small business, this is your comeback.
To every mother and father starting a family, raising your kids, and
trying to give them more of an opportunity than you ever had, this is
your comeback.
Now, I put hope in the American people. This bill puts hope in our
American people because we trust the people. That is the start of
America's comeback.
The SPEAKER pro tempore. The Chair reminds all Members to address
their remarks to the Chair and not to a perceived viewing audience.
Mr. NEAL. Mr. Speaker, I yield 1 minute to the gentlewoman from
California (Ms. Pelosi), the very capable Democratic leader.
Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding and thank
him for his superb leadership as the top Democrat on the Ways and Means
Committee. I commend him, and all of our fellow Democrats on the
committee, for standing up for the middle class in our country and
fighting for the truth and what is in this bill.
Mr. Speaker, this vote today is a defining moment for our country.
Our votes today will decide the future of the American middle class and
those who aspire to it, the future of our children and our
grandchildren, and the future of the United States of America as the
land of opportunity.
Today, Republicans have brought forth a bill that is pillaging the
middle class to pad the pockets of the wealthiest and hand tax breaks
to corporations shipping jobs out of America and drastically increasing
the national debt.
The bill Republicans have brought to the floor today is not tax
reform. It is not even a tax cut. It is a tax scam. So many people have
written in about it who are affected by it, and I will submit all of
that for the Record, but I do want to say that this is not only a
defining moment, it is a moment of truth.
With straight faces and with the speed of light--I have to give them
credit; they raced this thing through in the dark of night--they are
trying to sell a bill of goods to the middle class that this is in
their interest, that this is a middle-income tax cut.
According to the nonpartisan Tax Policy Center, Republicans are
raising taxes on 36 million middle class families.
I associate myself with the very wonderful comments of our
distinguished House Democratic whip, Mr. Hoyer, especially at the end
when he said: ``Look to your souls, not to your polls.''
I want to speak to Pope Benedict, his encyclical, God is love. It was
his first encyclical as pope, and in that encyclical, Pope Benedict
quoted the wisdom of St. Augustine.
Seventeen centuries ago, St. Augustine said: ``A state which is not
governed according to justice would be just a bunch of thieves.''
Benedict went on to say: ``The state must inevitably face the
question of how justice can be achieved here and now.'' And he
cautioned against the ``danger of certain ethical blindness caused by
the dazzling effect of power and special interests.''
Interesting, in light of the fact that when this bill is brought
forward, the
[[Page H9409]]
Director of the National Economic Council, Gary Cohn, said: ``The most
excited group out there are the big CEOs, about our tax plan.''
Is that about justice?
Congressman Chris Collins said: ``My donors are basically saying, get
it done or don't ever call me again.''
Senator Lindsey Graham said: ``The financial contributions will
stop'' if this tax scam fails.
Well, he didn't say scam. I am saying scam. That is my word.
Back to the Pope and the Catholic bishops. The U.S. Conference of
Catholic Bishops wrote: `` . . . this proposal appears to be the first
Federal income tax modification in American history that will raise
income taxes on the working poor while simultaneously providing a large
tax cut to the wealthy.''
The U.S. Conference of Catholic Bishops went on to say: ``This is
simply unconscionable.''
We always begin our session with prayer, and many of us attend mass
on the weekend, on Sundays. But we cannot pray and think that that
gives us a lesson to prey on people the rest of the week; and that is
what this bill does. It preys on the middle class and those aspiring to
it. It pillages and loots the middle class. It is a shameful piece of
legislation, and the Republicans should know better.
They say it is going to get better in the Senate. Oh my gosh. In the
Senate, as Mr. Hoyer pointed out, unanimously, the Senate Finance
Committee rejected this proposal already. Was it 26-0? Whatever the
number was, the zero loomed large.
But getting back to values, because that is what we are here to do,
and what we do in our budget, which the tax bill is a part of. It is
supposed to be a statement of values.
In his study of civilization, the great British historian, Arnold
Toynbee, found that, at the beginning of a hopeful country, the
political leadership formed a creative minority that inspired and led
the flowering of civilization. But in some nations, leaders became a
dominant minority of ``exploiters, focused on their own wealth and
power.
Arnold Toynbee, welcome to the Republican side of the aisle and
Congress.
These competing mindsets, he went on, between the dominant minority
of exploiters versus the creative minority that inspired and led the
flowering of civilization, these competing mindsets and motivations
create schisms in the body social and schisms in the soul of the body
politic.
And lo and behold, the Republican Party has written a bill, nearly
half of the benefits go to the top 1 percent--top 1 percent in our
country--and 80 percent of the benefits go to the top 2 percent. This
is a defining moment, but it is also a moment of truth
How can the Republicans, with a straight face, say to the middle
class: Well, we are doubling this or doubling that? Give with one hand,
take with another.
And to hear them cheer, hear them cheer for the provision in here
about the estate tax?
Listen to this. You tell me if you think this is fair.
1,800 families in America--not your family farmer. Everybody is taken
care of in what we have done already with the estate tax.
In this bill, 1,800 of the wealthiest families, the filers in our
country, will, in the life of the bill, get the break of $172 billion;
1,800 families. This is for 1,800 families.
And you know what? The Republicans cheered that; 1,800 families are
going to get $172 billion.
They cheer the fact that up to $1.5 trillion in tax cuts goes to
corporate America, while, at the same time, giving them another tax
break to send jobs overseas; at the same time, absolving them of any
responsibility when it comes to State and local taxes; while insisting
that individuals lose the State and local tax deduction, but
corporations do not.
And listen to all of it. Were they cheering when they are saying to a
teacher--hear their cheering when they say to a teacher: You may bring
supplies to your school because your school and classes need that? God
bless you for that. But we are taking away the tax deduction that goes
with that.
What? Is that something to cheer about?
They are saying to students who get a $2,500 tax deduction on
interest on student loans: Forget about that. Even though it may make
the difference between your attending college or not, forget about
that. We are too busy giving a tax cut to the 1,800 wealthiest families
in America so they can get $172 billion in tax breaks over the next 10
years.
They are saying to families, whether they have a child with a
disability, a senior with Alzheimer's, and everything in between: If
you have extraordinary medical expenses, and, since 1944, you have been
able to deduct them, no more. No more, because we have got to give it
to the high end. So take that away.
Do you have any idea what that means to America's working families,
and what it means for them if they have Alzheimer's?
We had one person come to our event in San Francisco last week from
Barbara Lee's district. She said there was over $170,000 in costs for
her because her husband has Alzheimer's. The tax deduction enabled them
to survive. She said: I can't even imagine the cruelty that decided
that this should happen in this tax bill.
So understand what this means in people's lives, and tell the truth
about it. Tell the truth about it.
Republicans want you to believe that their trickle-down tax break for
the rich will pay for itself. Never has happened.
As Bruce Bartlett, architect of Jack Kemp's supply-side economics
said, ``It is not true,'' that this trickle-down economics pays for
itself. ``It is not true. It is nonsense.'' And he went on to say it
was ``BS,'' in the full extent of those words.
This tax scam won't create jobs. It won't raise wages. It will only
fill the coffers of the donors and the fat cats. The GOP tax scam will
add trillions to the debt and stick our children with a bill that you
cannot pay off.
And none of us will probably be around by the time the full impact of
the hemorrhaging of the debt in the second 10 years of this bill will
require big tax increases. Look to the Kansas example.
As I like to say to the Caucus, Mr. Speaker, maybe I have to use my
mother-of-five voice to be heard. But as a mother of five and a
grandmother of nine, we are supposed to be thinking about our children
and their futures, and our grandchildren and their futures.
God willing, one day some of you will have grandchildren. I always
ask the question: Do they breathe air? Do they drink water?
Why are you messing that up in other areas of our policymaking here?
But getting back to this. The tax scam won't create jobs. It won't
raise wages. As I said: It will only fill the coffers of donors and the
fat cats.
This GOP tax scam will add trillions to the debt. Oh where, oh where
are the deficit hawks? Have you become extinct? Is there not one among
you who understands what this does to the national debt?
And with all due respect to your leader, for him to put at our
doorstep the debt, when it was a creation--President Bush went into
office on a path from President Clinton of deficit reduction. The last
five Clinton budgets were in balance or in surplus. President Bush
turned that around by repealing pay-as-you-go. Tax cuts for the wealthy
didn't trickle down. Two unpaid-for wars, giveaways to PHARMA, the
pharmaceutical industry, taking us to a place--remember September of
2008, when we were in the worst economic downturn since the Great
Depression?
But anyway, back to here. As Republicans know, our Republican friends
have already shown us their playbook. In this bill, corporations will
get a cut of $1.5 trillion--the same $1.5 trillion that Republicans
plan to slash from Medicare and Medicaid in the GOP budget.
In their bones, the American people know they are getting a raw deal
under the Republican bill before us. You know it. You know why you are
here. You know what you are doing.
Democrats believe the American people deserve better, a better deal,
better jobs, better wages, better future. We want to create good-paying
jobs, raise workers' wages, lower the cost of living for families, give
Americans the tools
[[Page H9410]]
they need to succeed in the 21st century. But you can't do that if you
have a budget that does not invest in that future and is hampered by
the cuts.
{time} 1315
Let's go back to the drawing board. Let's write a bipartisan bill
that raises wages, creates jobs, promotes growth, and reduces the
deficit. To get to that place, we want to go to the table in a
bipartisan way. What are you afraid of? In a bipartisan way, let's put
together a tax bill that is good for the American people instead of one
that does violence to the American Dream.
Mr. Speaker, I urge my colleagues on both sides of the aisle to vote
``no'' and to demand a better bill for America's working families.
Mr. Speaker, I include in the Record the U.S. Conference of Catholic
Bishops' fabulous statement about this tax bill.
United States Conference of
Catholic Bishops,
Washington, DC, November 9, 2017.
House of Representatives,
Washington, DC.
Dear Representative: Decisions about taxation involve
fundamental concerns of ``justice and equity'', with the goal
of taxes and public spending ``becoming an instrument of
development and solidarity'' (Mater et Magistra, 132;
Compendium of the Social Doctrine of the Church, no. 355). On
October 27, the USCCB offered six moral principles to guide
debate on tax reform, centered on care for the poor and
concern for families. The Tax Cuts and Jobs Act of 2017
contains many fundamental structural flaws that must be
corrected. As currently written, the proposal is
unacceptable.
Care for the Poor. Doubling the standard deduction will
help some of those in poverty to avoid tax liability, and
this is a positive good contained in the bill. However, as
written, this proposal appears to be the first federal income
tax modification in American history that will raise income
taxes on the working poor while simultaneously providing a
large tax cut to the wealthy. This is simply unconscionable.
The nonpartisan congressional Joint Committee on Taxation
(JCT) indicates that by 2023 this tax plan will raise taxes
on average tax payers making between $20,000 and $40,000 per
year. Taxes for this group will be raised again in 2025, and
again in 2027. Taxes will also increase on average taxpayers
earning between $10,000 and $20,000 in 2025. The federal
poverty line is $12,228 for one person, and $24,339 for a
two-parent family with two children. Nearly one in three
Americans live in a family with income below 200% of the
poverty line. Meanwhile, average taxpayers who make over $1
million experience dramatic tax cuts for the same periods. No
tax reform proposal is acceptable that increases taxes for
those living in poverty to help pay for benefits to wealthy
citizens.
Several other tax provisions that assist the working poor
and others who may struggle economically are also eliminated,
including:
the Work Opportunity Tax Credit, which incentivizes hiring
of the disabled, veterans, those who have been unemployed for
long periods, and individuals receiving federal poverty-
related assistance;
the tax deductions to reduce the burdens of tuition and
student loans;
the income tax credit to persons who retire on disability;
the deduction for state and local income and sales taxes,
which may impact people in higher tax states;
the tax deduction for employee business expenses; and
tax incentives to employers and employees to help with
moving expenses for a new job.
Strengthening Families. Society, in Pope Francis' words, is
in ``debt'' to the family. The family is the most important
institution in society because education, formation, and care
for the human person, especially children, take place more in
the family than anywhere else. Expanded access to schools of
choice is a positive step in this legislation, and we would
encourage Congress to go even further by empowering more
parents in directing their child's education. We also
appreciate that the legislation recognizes unborn children as
eligible beneficiaries for parents' 529 education savings
account contributions.
However, this tax plan places new and unreasonable burdens
on families, especially those who welcome life or experience
serious hardships:
It removes the adoption tax credit which provides important
and life-affirming assistance for families to adopt children
desperately in need of love and support.
The plan also repeals the exclusion for adoption assistance
programs, which allows a family to exclude money paid by an
employer for adoption costs up to the amount of the adoption
tax credit as an alternative. This exclusion also allows
those who adopt a child with special needs to receive the
full value of the exclusion regardless of actual adoption
costs.
Eliminating the credit and exclusion sends the wrong
message about our national priorities, which ought to protect
life, strengthen families, and affirm the value of every
human being. The savings to society from children finding
loving homes is well beyond any revenue lost due to the
credit and exclusion.
It eliminates the personal exemption. Even with the
doubling of the standard deduction, some larger families will
pay more, including many two-parent families with more than
three children, and single-parent families with more than one
child. It is laudable that the child tax credit has been
expanded and removes the marriage penalty. However, the
modest increase in the credit does not fully compensate for
the elimination of the personal exemption for some larger
families. Moreover, because the child tax credit only remains
refundable up to $1,000, lower income families will get no
additional benefits from the child tax credit, while
suffering the full loss of the personal exemption.
It eliminates the out-of-pocket medical expenses deduction
for families facing serious or chronic illness.
It eliminates tax incentives to employers to provide
dependent care assistance or child care. The family
flexibility credit, at $300 per taxpayer, is some help, but
is set to expire after five years and does not offset the
greater losses.
It eliminates the qualified tuition reduction for children
of teachers, which will raise taxes on educational
institutions and disrupt family arrangements.
It repeals mortgage tax credit certificates, which are only
available for first-time home buyers under certain income
thresholds.
Other aspects of the plan also have consequences for
families. By creating stricter rules around parents' social
security numbers, the plan makes it more difficult for
immigrant taxpayers to receive the Child Tax Credit or the
Earned Income Tax Credit for their families, or to receive
assistance in seeking advancement through education.
Progressivity of the Tax Code. Pope St. John XXIII wrote
that a progressive tax code is required by ``justice and
equity.'' The ``Unified Framework,'' upon which this tax plan
was based, promised that any new tax code would be ``at
least'' as progressive as the present code. This plan breaks
that promise. It raises taxes on the working poor, while
simultaneously providing large tax breaks to high-income
taxpayers. It also repeals the estate tax (which applies to
the estates of single people valued at more than $5.5 million
and married couples valued greater than $11 million), and
eliminates the Alternative Minimum Tax (AMT) which was
designed to prevent high-income earners from avoiding tax
liability through loopholes. In the years that the working
poor suffer a tax increase under this bill, millionaires and
billionaires will see significant tax decreases. This must be
fixed. Those who stand to benefit the most from proposed tax
policies ought to be the ones to bear most of the risk
associated with them, rather than those who are struggling
and in need.
Adequate Revenue for the Common Good and Avoiding Future
Cuts to Poverty Programs. The state has a legitimate role in
promoting the common good, and a legitimate interest in
collecting taxes to do so. This tax plan, by design, will
result in a nearly $1.5 trillion deficit over ten years. Even
with the potential benefits of economic growth from
individual and corporate tax cuts--which cannot be
guaranteed--the poor should not be the ones to finance these
changes. Undoubtedly, the deficit will be used as an argument
to further restrict or end programs that help those in need,
programs which are investments to help pull struggling
families out of poverty. Repeal of the AMT and estate tax
alone comprise a good portion of the deficit that is built
into the plan. Rather than exploring even modest reductions
to these dramatic cuts for the wealthiest, the bill raises
taxes on the vulnerable and creates a strong incentive to cut
the social safety net.
Incentive for Charitable Giving and Development. Doubling
the standard deduction will bring tax relief to many people.
However, for those who give to charity, it will make the
charitable deduction increasingly a benefit only available to
high income families. An ``above-the-line'' deduction would
incentivize and assist charitable giving at all income
levels, and increase the amounts people can give. It would
also guard against a multi-billion-dollar decrease in
charitable giving that this plan would otherwise cause,
shrinking civil society and cutting income to nonprofits that
help the poor, just as government aid to the poor is
jeopardized, as noted above. By and large, money given to
charity helps those in need. The tax code should encourage
voluntary association, mutual aid, and a culture of giving,
helping rather than hurting groups that will be asked to do
more for the poor in the days ahead. Similarly, this plan
will lower the value of affordable housing and community
revitalization incentives. Public-private partnerships that
benefit the poor and the greater community should not be
discouraged.
Because tax policy is far-reaching, Congress must provide
ample time for Americans to discuss the complexities of these
reforms and fully understand their effects. The current
timetable does not provide adequate time for that discussion.
In many ways, this legislation is unacceptable in its present
form and requires amendment. It must be changed for the sake
of families--the bedrock of our country--and for those
struggling on the peripheries of society who have a claim on
our national conscience.
Sincerely,
Most Reverend Frank J. Dewane,
Bishop of Venice, Chairman, Committee on Domestic
[[Page H9411]]
Justice and Human Development.
Most Rev. George V. Murry, S.J.,
Bishop of Youngstown, Chairman, Committee on Catholic
Education.
Most Reverend Oscar Cantu,
Bishop of Las Cruces, Chairman, Committee on International
Justice and Peace.
Ms. PELOSI. I return to one of their statements: `` . . . this
proposal appears to be the first Federal income tax modification in
American history that will raise income taxes on the working poor while
simultaneously providing a large tax cut for the wealthy.''
The Senate is not going to make it better. They have already said
they are raising taxes on those making under $75,000 and giving tax
cuts to the wealthy. They have already said they are going to take
affordable care away from 13 million Americans.
I don't know how that is making it better. That might be something
you applaud, but I certainly hope you would not vote for it.
The SPEAKER pro tempore. The Chair would remind all Members to direct
their remarks to the Chair and not to others in the second person.
Mr. NEAL. Mr. Speaker, I yield back the balance of my time.
Mr. BRADY of Texas. Mr. Speaker, no one man has plowed the field for
tax reform for more years, more boldly, or more effectively than the
Speaker of the House.
Mr. Speaker, I yield 1 minute to the gentleman from Wisconsin (Mr.
Ryan).
Mr. RYAN of Wisconsin. Mr. Speaker, first, I love this 1 minute, and
I try not to abuse it too much, but I am going to right now.
Mr. Speaker, I want to start off by thanking Chairman Kevin Brady and
all of the members of the House Ways and Means Committee for this job
well done.
Mr. Speaker, we are in a generational defining moment for our
country, and what we are doing here--what we are doing here--is not
just determining the kind of Tax Code we are going to have, what we are
doing here is determining the kind of country we are going to have.
Right now, because of this anemic economic recovery--don't forget, we
had the worst recession in our lifetimes in 2008, and ever since then
this economy has been flat. This economy has been way under its
potential. This economy has been growing at a limp 1 to 2 percent.
Do you know what that means for hardworking taxpayers? Do you know
what that means for Americans? Nobody gets a wage increase. Living
standards are stagnant. Economic anxiety is high.
Seventy-eight percent of our workers in this country today are living
paycheck to paycheck. Most Americans say that they don't even have $500
in their bank account for an unexpected emergency or an expense. This
is the economic anxiety that is for real in this country today. Instead
of thinking about getting ahead, families are just struggling to get
by.
Think about all the moms and the dads and the hardworking taxpayers
going to bed tonight and not sleeping, worried about what comes next
week. This is not how it should be. This is not how it is in this
country traditionally.
We need to restore growth. We need to restore opportunity. We need to
restore this beautiful thing we affectionately call the American idea.
Passing this bill is the single biggest thing we can do to grow the
economy, to restore opportunity, and to help these middle-income
families who are struggling.
People always ask: Well, what is in it for me? How do I benefit from
this?
I am a chart guy.
Why is this important? What this shows you, under this plan, the
average family at every income level gets a tax cut, a tax cut at every
average level.
What this chart shows you, the people here who are struggling, the
people here who are in middle-income brackets, the people here in low
income trying to become middle income, they get the biggest tax cuts.
This plan is good for people in all walks of life all across the
country, and the bigger relief goes to those who need it most.
Let's put it into numbers.
A typical household of four people, they make $59,000 in this
country. That family of four gets an $1,182 tax cut the first year
alone.
The median family income, Mom, Dad, two kids, the median family
income in America today is $87,000. That family will get a $1,941 tax
cut right away, year one. If you are one of those 57 percent of
Americans who say you don't even have $500 to go through an emergency,
this really helps you.
Let's talk about those people who itemize their taxes, who live in
high-tax States. Let's talk about a couple making $1115,000, living a
high-tax State. Let's say they have $8,400 in a mortgage interest
payment and $6,900 in property taxes for the year. They can still write
all of those off under this plan, and they will still see a tax cut of
$1,130; if they have kids, an even larger tax cut.
Not only do people get to keep more of their own money in their own
pocket, but we dramatically simplify the tax system. We make it more
fair.
Today, 7 out of 10 Americans don't itemize their deductions. That
means 70 percent of Americans take what we call the standard deduction
for their taxes. It is just that. It is standard. It is
straightforward. You are not taxed on that income.
But over the years, Washington has piled on special interest loophole
after special interest loophole after special interest loophole. These
loopholes are skewed to the people who are wealthy, who are well
connected, who can afford all the tax lawyers and all the accountants
to navigate the Tax Code so they can get a good deal. But if you are
not in that group, if you don't have the lawyers and the accountants
and you are just scraping away with your middle income, you don't get
those deals.
What we want to do is take those loopholes away, make it fair for
everybody, lower tax rates, and make it easy.
Here is how easy this gets. We are going to make it so easy that, by
doubling the standard deduction, 90 percent of Americans, 9 out of 10
Americans, will be able to fill out their taxes on a form the size of a
postcard. What this means is, for a single person, you don't pay taxes
on your first $12,000 of income. For a married couple, you don't pay
taxes on your first $24,000 of income.
Here is the basic philosophy. Instead of jumping through all the
hoops that the IRS puts in front of you, instead of doing what the
special interest groups say you need to do in order to get some of your
money back, we basically say: Keep your money in the first place. It is
your money. Do what you want with it.
All of this is about tax relief. It is about fairness. It is about
simplicity. It is about easing the stress and anxiety that is in this
country.
What we really need to do is we need better jobs, more jobs, faster
economic growth, higher wages.
This brings us to the way we tax ourselves as businesses. This brings
us to what do we do to make America the most competitive place in the
world.
Here is the real problem we have got when it comes to the way we tax
our businesses. We are the worst in the world at it. We, right now, tax
our businesses at the highest corporate tax rate in the industrialized
world.
What does that do? Well, let me give you an example of where I come
from.
In Wisconsin, the example is Johnson Controls. Johnson Controls is a
company with a history dating back, in our State, to the 1880s. It was
the biggest company we had headquartered in Wisconsin. Not anymore,
because Johnson Controls is an Irish company, and their Irish tax rate
is 12\1/2\ percent.
This is happening all over the country. Companies, just to stay
competitive, are becoming foreign companies. And when the headquarters
of that company leaves your hometown, when the headquarters of that
business and that employer leaves your State and goes to another
country, there goes the United Way Campaign. There goes the white-
collar jobs. There goes the manufacturing. There goes the research and
development. There goes America's competitiveness.
What is worse is all these foreign companies are buying U.S.
companies because it is cheaper because of taxes.
Here is what we do. Instead of being the worst in the pack, we
leapfrog ourselves by bringing that tax rate down
[[Page H9412]]
to 20 percent. Because, guess what. When you tax your businesses at
much, much higher tax rates than our foreign competitors tax theirs,
they win and we lose. We have got to stop losing. We have got to start
winning. That is what this does.
What is even more impressive about this is it lowers taxes for those
small businesses, those mom-and-pops even more. We have got to make
sure that our businesses, the job creators of America, have every
incentive to stay here, have every incentive to build here, have every
incentive to hire here.
What is more, we are finding that by doing this, we are going to get
faster economic growth. We are going to get more jobs. We are going to
get higher wages, better take-home pay.
Let me just break it down in simple numbers.
The Tax Foundation ran the numbers. The nonpartisan Tax Foundation
said, with this bill, we will get faster growth, about 3\1/2\ percent
faster economic growth. We will get about 890,000 new jobs. They
estimate that in New York State alone, 57,834 new jobs; In Wisconsin,
17,999 new jobs; in California, 101,422 new jobs; in Texas, 74,037 new
jobs. You get these new jobs when you grow this economy. You pass this
bill, you grow this economy.
So why do we do all of this? Because it is about giving people more
take-home pay. It is about raising wages. It is about helping families
that are struggling to get ahead. It is about getting Washington out of
the business of picking winners and losers and giving the American
people the kind of economy they deserve, the kind of economy we can
have.
This just shows you that across every income scale across the board,
wages will go up because we are going to grow the economy. Most of the
wage growth goes to the people who need it most, people who are in the
middle, people who are struggling. That is why we are here.
Right now, we are in the middle of a long day where people are
working tooth and nail in their jobs. We are right here in the middle
of a day where America's workers are trying to figure out how they are
going to make ends meet, how they are going to keep up with everything.
Those people, the hardworking taxpayers of this country that we
represent, that is why we are here. This is why we are doing this. They
are the foundation of this country. We are here today for them.
The special interest groups are trying to protect their piece of the
pie. All the negativity you see out there, there is probably a special
interest group back there trying to keep their special niche in the Tax
Code.
It is high time we root that out, we don't settle for the status quo,
and we give people the kind of Tax Code that they need and they
deserve. It has been 31 years since we last did this, and it is finally
time that we get the general interests of this country to prevail over
the special interests in Washington.
We know that this brings more fairness. We know that this increases
take-home pay, bigger paychecks, and we know that this grows the
economy and creates more opportunities.
Faster economic growth is not going to fix every problem America has,
but faster economic growth is going to help us solve every problem
America has.
Mr. Speaker, I ask my colleagues today to raise their gaze and do
something bold, to see the forest through the trees, to think about the
people we are here to actually represent, to think about the people who
are struggling, who are going to go to bed tonight and probably not
sleep because they are worried about what is going to happen tomorrow.
That is what this is. This is one of the most historic and the biggest
things that we will ever do.
{time} 1330
And the reason is because this is one of the biggest things we can do
to improve people's lives, to revitalize that beautiful American idea,
to spread liberty and freedom. This is something that is going to
refresh our confidence in ourselves and our confidence in each other.
Enough settling. Enough giving in. Let's start to reclaim our future
right here in this moment, in this Chamber. In this moment, let's pass
this bill.
Mr. BRADY of Texas. Mr. Speaker, I yield back the balance of my time.
Mr. WENSTRUP. Mr. Speaker, more jobs, bigger paychecks, and fairer
taxes. Those are the three big promises of the Tax Cuts and Jobs Act,
and I am proud to lend my support.
This tax relief legislation serves as an opportunity for all American
families to achieve the American dream--because it is crafted with
working families and providing relief for the middle class in mind.
This bill does much to reform and revitalize the tax code. I look
forward to doing even more to assist American families and communities,
ensure U.S. companies can fairly compete with foreign counterparts, and
close existing loopholes in our laws. For years, our nation's high
corporate tax rate has created an unlevel playing field for U.S.
businesses to compete in global markets. By reducing rates and moving
to a territorial system much in line those of our international
competitors, we will incentivize companies to build investment here,
thereby creating new jobs and increasing take-home pay for hardworking
Americans.
Further compounding this problem is the ability, in some industries,
for foreign-based competitors to exploit loopholes in the tax code to
avoid taxes altogether. For instance, under current law foreign-based
reinsurers to transfer a portion of their profits to offshore tax
havens, and thus shielded from our corporate tax rate, has essentially
gutted the domestic reinsurance industry over; the last two decades.
Rather than allowing our domestic insurers to effectively compete, this
uneven and unfair playing field instead promotes the use of foreign
inversions and affiliate transactions to achieve a lower tax rate. This
environment erodes the U.S. tax base to the tune of billions, and
forces U.S. insurers to decide whether solely-domestic operations,
which many have maintained for decades, is worth paying a higher
effective tax rate. Mr. Speaker, these are not decisions that our tax
code should force on job creators.
As our country competes with the rest of world in a 21st century
global economy, it is essential that our tax policies offer
opportunities for job creators in the United States of all sizes to
grow, thrive, create jobs, and increase the take-home pay for all hard-
working Americans so that they may thrive and seek their dreams.
As the U.S. economic engine drives forward, aided significantly by
the passage of this historic legislation, we must also ensure that
neglected and distressed communities are kept in mind. My district in
southern Ohio has leveraged the New Markets Tax Credit (NMTC) and
Historic Tax Credit (HTC) to bring hundreds of millions of dollars of
investment to such areas, and the net result is thousands of permanent
new jobs and housing units in my district alone.
Given the positive impacts these pro-growth credits have had in my
district and across the country, I was hopeful for the preservation of
NMTC and HTC as my colleagues on the Ways & Means Committee crafted
this legislation. While H.R. 1 would repeal both credits, the Senate's
proposal would retain the NMTC and a modified version of the HTC. I
hope the House and Senate come to a productive solution in conference.
More broadly, I encourage my colleagues in the upcoming House and
Senate conference process to produce a final version that will ensure
our tax relief creates a level playing field for all competitors in an
interconnected world, and realizes the vast potential of our nation's
overlooked communities.
Ms. ROYBAL-ALLARD. Mr. Speaker, on behalf of America's future
generations who will be saddled with an unsurmountable debt created by
H.R. 1, the Republican Tax plan, I must object to it. This rushed piece
of legislation will not only add more than $1.7 trillion to the
national debt over the next 10 years, but it will also shift the burden
of paying for that debt to our hard working families.
Despite our Republican colleagues' assertions that this tax plan will
benefit the majority of Americans, numerous economists disagree. They
note that nearly 45 percent of all households with children will see a
tax increase, while 80 percent of our wealthiest citizens will receive
a tax cut by 2027.
Even more egregious, this tax bill seeks to eliminate the long-
standing State and Local Tax deduction, subjecting every wage earner's
income to double taxation. This defeats the original framers' intent to
avoid a system of double taxation.
The original tax code, drafted in 1913, consisted of three pages in
its entirety and included the State and Local Tax deduction at the core
of its responsible tax policy to ensure state and local governments
could raise revenues for public schools, police, fire, and emergency
services.
Plain and simple, this tax plan is a tremendous windfall for our
wealthiest 1 percent and large corporations. It favors large businesses
over small businesses, it favors sending jobs overseas rather than
creating jobs at home, it favors the wealthy over hourly wage earners,
and it pays for these tax cuts for the wealthy by raising taxes on our
middle class families
[[Page H9413]]
to the detriment of Medicare, Medicaid, education, and other vital
public services.
The fact is, Mr. Speaker, this bill is so skewed to benefit the
wealthiest 1 percent in America that it could more accurately be named,
``H.R. 1 percent'' I urge my colleagues to support the 99 percent of
Americans instead, and to oppose this plan. Vote no on H.R. 1.
Mr. BABIN. Mr. Speaker, today is a good day for hardworking
Americans. We are considering legislation that let's taxpayers keep
more of their paycheck to save, spend, and invest as they see fit.
Our bill--the Tax Cuts and Jobs Act--will overhaul our broken tax
code and finally put the American taxpayer first. Because we can all
agree that hardworking taxpayers are the losers under the current
system. Right now, our tax code rewards lawyers, lobbyists and
loopholes--while leaving hardworking families and job creators behind.
The bill we are considering today will change all of that. To me,
there is only one special interest group that matters--and that is the
American people.
That's why we simplify the tax code and cut taxes for all Americans
to ensure hardworking Americans--like the people I represent in
Southeast Texas--can keep more of their hard-earned money.
It has been more than 30 years since the last time we overhauled our
tax code. And since then it has grown to more than 70,000 pages.
I like to put it this way . . . our current tax code is now longer
than the Bible with none of the good news. Over the past 30 years,
Washington has piled up all these carveouts and loopholes for special
interests--making things far too complicated and far too expensive for
hardworking families.
This needs to end--and today the House will take a historic step to
fix that and deliver long overdue tax relief to the American people.
Here are the details:
First, we get rid of loopholes. Then we use that money to lower
taxes. And then, we simplify the code altogether.
Now, instead of seven confusing tax brackets and carveouts, there
will be just four--making things so simple that you can file your taxes
on a postcard.
Importantly, we also double the standard deduction, increase the
child tax credit, eliminate the Death Tax, and preserve the home
mortgage interest deduction.
In addition--to help create more good jobs right here in America--we
lower the tax rate on job creators from 35 percent down to 20 percent.
Today, many of America's biggest job producers face the highest tax
rate in the world--which makes America less competitive and forces jobs
overseas.
We fix that in our bill--because we want companies to invest, grow
and produce jobs right here in America. We also reduce the tax rate on
the income earned by small businesses to no more than 25 percent--the
lowest tax rate on small business income since World War II.
Folks, let's not forget. When we reformed the tax system over 30
years ago, it led to an explosion in jobs and economic growth.
With the passage of this bill, we will be on the verge of achieving
such greatness again. This is an exciting time--and the American people
deserve some good news.
I urge my colleagues in the Senate to quickly follow our lead and get
a bill passed so we can deliver a tax relief bill to the American
people before Christmas.
For more details on our bill, please visit www.FairAndSimple.GOP.
Thank you--and God bless.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 619, the previous question is ordered on
the bill, as amended.
=========================== NOTE ===========================
November 16, 2017, on page H9413, the following appeared:
Pursuant House Resolution 619, the previous question is ordered on
the bill, as amended.
The online version has been corrected to read: Pursuant to House
Resolution 619, the previous question is ordered on the bill, as
amended.
========================= END NOTE =========================
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. NEAL. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on passage of the bill will be followed by a 5-minute vote
on suspending the rules and passing H.R. 3109, if ordered.
The vote was taken by electronic device, and there were--yeas 227,
nays 205, not voting 2, as follows:
[Roll No. 637]
YEAS--227
Abraham
Aderholt
Allen
Amash
Amodei
Arrington
Babin
Bacon
Banks (IN)
Barletta
Barr
Barton
Bergman
Biggs
Bilirakis
Bishop (MI)
Bishop (UT)
Black
Blackburn
Blum
Bost
Brady (TX)
Brat
Bridenstine
Brooks (AL)
Brooks (IN)
Buchanan
Buck
Bucshon
Budd
Burgess
Byrne
Calvert
Carter (GA)
Carter (TX)
Chabot
Cheney
Coffman
Cole
Collins (GA)
Collins (NY)
Comer
Comstock
Conaway
Cook
Costello (PA)
Cramer
Crawford
Culberson
Curbelo (FL)
Curtis
Davidson
Davis, Rodney
Denham
Dent
DeSantis
DesJarlais
Diaz-Balart
Duffy
Duncan (SC)
Duncan (TN)
Dunn
Emmer
Estes (KS)
Farenthold
Ferguson
Fitzpatrick
Fleischmann
Flores
Fortenberry
Foxx
Franks (AZ)
Gaetz
Gallagher
Garrett
Gianforte
Gibbs
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (LA)
Graves (MO)
Griffith
Grothman
Guthrie
Handel
Harper
Harris
Hartzler
Hensarling
Herrera Beutler
Hice, Jody B.
Higgins (LA)
Hill
Holding
Hollingsworth
Hudson
Huizenga
Hultgren
Hunter
Hurd
Jenkins (KS)
Jenkins (WV)
Johnson (LA)
Johnson (OH)
Johnson, Sam
Jordan
Joyce (OH)
Katko
Kelly (MS)
Kelly (PA)
King (IA)
Kinzinger
Knight
Kustoff (TN)
Labrador
LaHood
LaMalfa
Lamborn
Latta
Lewis (MN)
Long
Loudermilk
Love
Lucas
Luetkemeyer
MacArthur
Marchant
Marino
Marshall
Massie
Mast
McCarthy
McCaul
McHenry
McKinley
McMorris Rodgers
McSally
Meadows
Meehan
Messer
Mitchell
Moolenaar
Mooney (WV)
Mullin
Newhouse
Noem
Norman
Nunes
Olson
Palazzo
Palmer
Paulsen
Pearce
Perry
Pittenger
Poe (TX)
Poliquin
Posey
Ratcliffe
Reed
Reichert
Renacci
Rice (SC)
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rokita
Rooney, Francis
Rooney, Thomas J.
Ros-Lehtinen
Roskam
Ross
Rothfus
Rouzer
Royce (CA)
Russell
Rutherford
Ryan (WI)
Sanford
Scalise
Schweikert
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuster
Simpson
Smith (MO)
Smith (NE)
Smith (TX)
Smucker
Stewart
Stivers
Taylor
Tenney
Thompson (PA)
Thornberry
Tiberi
Tipton
Trott
Turner
Upton
Valadao
Wagner
Walberg
Walden
Walker
Walorski
Walters, Mimi
Weber (TX)
Webster (FL)
Wenstrup
Westerman
Williams
Wilson (SC)
Wittman
Womack
Woodall
Yoder
Yoho
Young (AK)
Young (IA)
NAYS--205
Adams
Aguilar
Barragan
Bass
Beatty
Bera
Beyer
Bishop (GA)
Blumenauer
Blunt Rochester
Bonamici
Boyle, Brendan F.
Brady (PA)
Brown (MD)
Brownley (CA)
Bustos
Butterfield
Capuano
Carbajal
Cardenas
Carson (IN)
Cartwright
Castor (FL)
Castro (TX)
Chu, Judy
Cicilline
Clark (MA)
Clarke (NY)
Clay
Cleaver
Clyburn
Cohen
Connolly
Conyers
Cooper
Correa
Costa
Courtney
Crist
Crowley
Cuellar
Cummings
Davis (CA)
Davis, Danny
DeFazio
DeGette
Delaney
DeLauro
DelBene
Demings
DeSaulnier
Deutch
Dingell
Doggett
Donovan
Doyle, Michael F.
Ellison
Engel
Eshoo
Espaillat
Esty (CT)
Evans
Faso
Foster
Frankel (FL)
Frelinghuysen
Fudge
Gabbard
Gallego
Garamendi
Gomez
Gonzalez (TX)
Gottheimer
Green, Al
Green, Gene
Grijalva
Gutierrez
Hanabusa
Hastings
Heck
Higgins (NY)
Himes
Hoyer
Huffman
Issa
Jackson Lee
Jayapal
Jeffries
Johnson (GA)
Johnson, E. B.
Jones
Kaptur
Keating
Kelly (IL)
Kennedy
Khanna
Kihuen
Kildee
Kilmer
Kind
King (NY)
Krishnamoorthi
Kuster (NH)
Lance
Langevin
Larsen (WA)
Larson (CT)
Lawrence
Lawson (FL)
Lee
Levin
Lewis (GA)
Lieu, Ted
Lipinski
LoBiondo
Loebsack
Lofgren
Lowenthal
Lowey
Lujan Grisham, M.
Lujan, Ben Ray
Lynch
Maloney, Carolyn B.
Maloney, Sean
Matsui
McClintock
McCollum
McEachin
McGovern
McNerney
Meeks
Meng
Moore
Moulton
Murphy (FL)
Nadler
Napolitano
Neal
Nolan
Norcross
O'Halleran
O'Rourke
Pallone
Panetta
Pascrell
Payne
Pelosi
Perlmutter
Peters
Peterson
Pingree
Polis
Price (NC)
Quigley
Raskin
Rice (NY)
Richmond
Rohrabacher
Rosen
Roybal-Allard
Ruiz
Ruppersberger
Rush
Ryan (OH)
Sanchez
Sarbanes
Schakowsky
Schiff
Schneider
Schrader
Scott (VA)
Scott, David
Serrano
Sewell (AL)
Shea-Porter
Sherman
Sinema
Sires
Slaughter
Smith (NJ)
Smith (WA)
Soto
Speier
Stefanik
Suozzi
Swalwell (CA)
Takano
Thompson (CA)
Thompson (MS)
Titus
Tonko
Torres
Tsongas
Vargas
Veasey
Vela
Velazquez
Visclosky
Walz
Wasserman Schultz
Waters, Maxine
Watson Coleman
Welch
Yarmuth
Zeldin
[[Page H9414]]
NOT VOTING--2
Pocan
Wilson (FL)
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). There are 2 minutes
remaining.
{time} 1348
So the bill was passed.
The result of the vote was announced as above recorded.
Pursuant to section 2 of House Resolution 619, the title of the bill
was amended so as to read: ``A bill to provide for reconciliation
pursuant to titles II and V of the concurrent resolution on the budget
for fiscal year 2018.''.
A motion to reconsider was laid on the table.
Stated against:
Ms. WILSON of Florida. Mr. Speaker, had I been present, I would have
voted ``nay'' on rollcall No. 637.
____________________