[Congressional Record Volume 167, Number 163 (Tuesday, September 21, 2021)]
[Senate]
[Pages S6567-S6579]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
MOTION TO DISCHARGE
Mr. SCHUMER. Madam President, pursuant to S. Res. 27, the Committee
on Banking, Housing, and Urban Affairs being tied on the question of
reporting, I move to discharge the Senate Committee on Banking,
Housing, and Urban Affairs from further consideration of the nomination
of Rohit Chopra, of the District of Columbia, to be Director, Bureau of
Consumer Financial Protection for a term of five years.
The PRESIDING OFFICER. Under the provisions of S. Res. 27, there will
now be up to 4 hours of debate on the motion, equally divided between
the two leaders or their designees, with no motions, points of order,
or amendments in order.
Mr. SCHUMER. Madam President, for the information of all Senators, we
expect the vote on the motion to discharge to occur around 5:40 p.m.
I yield the floor to my friend from Louisiana.
The PRESIDING OFFICER. The Senator from Louisiana.
Supplemental Disaster Assistance
Mr. CASSIDY. Madam President, I rise, as I have before, to explain
the urgent need to pass a supplemental disaster assistance bill. But
this time it is not just for Hurricane Laura, which hit southwest
Louisiana over a year ago; it now includes Hurricane Ida, the fifth-
most powerful storm to hit the United States, which hit Southeast
Louisiana last month.
And here, for example, is some of the flooding that was related to
Hurricane Ida. I should point out, by the way, that this is not
considered a flood event. Well, if it is not considered a flood event,
that looks like pretty bad flooding. This is considered a wind event;
and so even when it is not considered a flood event, you see almost
this entire community flooded.
So I guess my statement, Madam President, is: We can't afford--we
should not allow the impact of an entire year's--now almost 2 years'--
worth of natural disasters go unaddressed for fellow Americans.
I mentioned it is over a year since Hurricane Laura wreaked havoc on
Lake Charles. We are only a couple weeks shy of the 1-year anniversary
of Hurricane Delta, a category 2 storm that followed on almost the
exact same track to hit Southwest Louisiana. Those who were trying to
recover were once again subjected to tremendous rains with flooding,
and then Hurricane Ida.
But before I go to Ida, let me also point out there were also
unprecedented winter storms which unleashed catastrophic damage to
livestock, crops, and buildings for Louisiana farmers. The same storms
that got more publicity in Texas hit us as well, and then Ida and
Tropical Storm Nicholas.
In light of these storms, I must speak about the National Flood
Insurance Program, or NFIP, which is set to roll out Risk Rating 2.0 on
October 1, while many policyholders are still recovering from hurricane
damage.
FEMA said Risk Rating 2.0--FEMA said policyholders were supposed to
be able to get the information of what their new premiums would be by
August 1. FEMA missed that deadline. They only recently made the
information available, less than 1 month of advanced notice.
But despite the lack of transparency, we know Risk Rating 2.0 will
increase costs. In Louisiana, 80 percent of policyholders will see
increases in the first year. For some, premiums may become unaffordable
and could collapse the value of their home.
Now, these aren't rich people. The criticism of the program is that
some rich person with a home on the beach gets subsidized flood
insurance. That is not true.
These are middle-income families and working families, whom the
President, by the way, pledged not to increase the cost on those
earning less than 400,000 a year. These folks don't make $400,000 a
year; they make far less. They have a hard time paying their gasoline
bill or their food bill, with the inflation we have had recently, and
now they are about to be socked with Risk Rating 2.0.
By the way, Congress never passed a bill requiring that FEMA
implement this. President Biden can stop it. He alone is responsible.
He should ask FEMA to delay implementation of Risk Rating 2.0 or
reconsider altogether. At the end of the day, flood insurance must be
affordable for the homeowner, accessible for the homeowner, accountable
to the taxpayer, and sustainable.
I proposed with Senator Menendez--and before Senator Menendez,
Senator Gillibrand--reforms to accomplish that. We can achieve that,
but Risk Rating 2.0 is not the way to do so. It is time for Congress to
conduct thorough oversight.
And, of course, I represent the people of Louisiana, but I could
speak of any place in the Nation which has flooded. Speaking for the
people of Louisiana, but for all those fellow Americans who flooded,
when you flood, you have been pounded; and my job is to help my fellow
Americans, no matter where she or he lives, to get back on their feet.
And right now I speak to the people of Louisiana: It is my commitment
to you to attempt to do so.
And we are strong. We are resilient. I drove through south Louisiana.
There were people cleaning up their house by taking water-logged beds
out, but they gave a thumbs-up when you went by. They are resilient. We
are resilient people.
On the other hand, when you see on a map of power outage and we are 4
weeks out and there are still people who don't have power back, and
this is the United States of America? They don't have homes--they don't
have electricity to their home. They can't run their refrigerator.
Their home is probably destroyed. It is a tough situation.
So I ask my colleagues to pass a clean, separate disaster assistance
bill. The formal request from the White House includes 2.3 billion for
the Community Development Block Disaster Recovery Program; 275 million
for the Emergency Watershed Protection Program, 9 billion for the
Wildlife and Hurricane Indemnity Program, 100 million for reclamation
projects to address western drought, and 2.6 billion for the Federal
Highway Emergency Relief.
This request includes initial, though informal, estimates of what may
also be needed from damage inflicted by Hurricane Ida. Specifically,
they expect the cost and needs stemming from Ida to likely exceed an
additional $10 billion in the form of CDBG Disaster Relief, Federal
Highway Emergency Relief, Federal Transit Emergency Relief, Small
Business Administration disaster loans, and the Disaster Relief Fund,
among other programs.
And, of course, this is not just to benefit our fellow Americans in
Louisiana but also those in the Northeast. More people died in the
Northeast related to Hurricane Ida than died in Louisiana. So this is
not just for my State; it is
[[Page S6568]]
for our country--different regions, different neighborhoods, but all
fellow Americans.
So I ask that we pass this bill for the people of Lake Charles, pass
this bill for the people of Terrebonne and Lafourche Parishes in
Southeast Louisiana, pass the bill for the people impacted by Ida in
the Northeast, and pass the bill for the people impacted by wildfires
in the West.
It is really simple. Let's not let politics hold up a supplemental
disaster relief bill. Or put differently, let's don't leverage the pain
of our fellow Americans in a political game. Pass the disaster relief
bill.
I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. CRAPO. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Murphy). Without objection, it is so
ordered.
Taxes
Mr. CRAPO. Mr. President, I am here today with a number of my
colleagues from the Finance Committee to discuss in the next hour the
partisan $3.5 trillion reckless tax-and-spend bill that the Democrats
are trying to cram down on the American people.
The United States is experiencing unprecedented economic pressures,
including significant inflation and record price increases, significant
friction in labor markets, and intense international competition, all
while the pandemic continues to threaten Americans' health and our
economic recovery. Yet the Democrats want to move forward with this
reckless $3.5 trillion tax-and-spending spree that will stunt our
economic recovery, further impede labor markets, and punish low- and
middle-income workers with higher prices for everyday goods and
services.
The Democrats are currently debating just how high they want to
increase taxes on American businesses and workers. House Democrats have
proposed to hike the corporate tax rate to 26.5 percent from 21
percent. This would return our combined corporate tax rate, at 31
percent, to one of the highest among developed countries.
Hiking the rate indisputably hits the middle class. Estimates suggest
that workers shoulder up to 70 percent of the burden of the corporate
tax. A recent analysis performed by the nonpartisan Joint Committee on
Taxation says the burden on over 98 percent of Americans who make less
than $500,000 a year increases over time.
Let me make that clear. Ninety-eight percent of the increase that is
felt by labor falls on those making less than $500,000 per year and the
vast majority of that on those making less than $400,000 per year.
Our Democratic colleagues argue that these increases do not violate
President Biden's pledge since they are not specific higher individual
tax rates. But hard-working Americans do not care about the distinction
between a direct or indirect tax; they care about how taxes hit their
pocketbooks. A higher corporate tax rate would result in lower wages
and reduced benefits, hit the nest eggs of everyone saving for
retirement, and force consumers to pay more for everyday necessities.
This plan would also impose hundreds of billions of dollars in tax
hikes on U.S. businesses operating across the globe, overwhelmingly
rewarding our foreign competitors and making the United States again
one of the highest taxing countries in the developed world. These pro-
China tax hikes would raise the relative cost of doing business in
America and punish businesses selling products or services overseas,
reigniting inversions and foreign acquisitions, again putting America's
business climate back into trouble.
Democrats also want to increase the top individual tax rate to 39.6
percent from 37 percent--a rate that kicks in at $400,000 for
individuals and $450,000 for married couples. This includes a
supercharged marriage penalty, as unmarried couples can earn almost a
million dollars a year without being subject to increased taxes.
Democrats have also proposed increasing the number of Americans
subject to the original death tax, including farmers and small business
owners. Others are pushing for a double death tax by eliminating the
step-up in the basis entirely. Rather than be given time to grieve
their loss, families could be forced to sell farms, businesses, and
homes just to pay Uncle Sam.
Less noticed are some of the plans to drastically expand the powers
of the Internal Revenue Service and turn banks and credit unions into
private investigators for monitoring law-abiding Americans. This
financial dragnet will force financial institutions into reporting
deposit and withdrawal flows on as little as $600 in their customers'
accounts, exposing sensitive data to future breaches. Whether the
cutoff for monitoring transactions is $600 or $10,000, Americans of all
income levels would have their private financial activities reported to
the leaky IRS. The threats to privacy and invasion of compliant
taxpayers' personal financial affairs are staggering.
Moving on, the Democrats are also proposing sweeping government price
controls on the very innovators in our healthcare system who helped to
battle the pandemic by developing lifesaving vaccines and therapeutics.
Under the guise of negotiation, government bureaucrats would have the
power to set prices for medications, devaluing the lives of the most
vulnerable among us, including older Americans and those with
disabilities. Their proposals could prevent scores of game-changing
prescription drugs from coming to the market in the years to come--with
one recent study projecting as many as 342 fewer new medication
approvals in the next two decades--in addition to driving up the launch
prices for new products.
This even went too far for some of the House Democrats, with three
Members at least voting against this legislation in committee.
As I have indicated, this reckless tax-and-spend plan comes just over
a year after we were experiencing one of the most prosperous economies
in decades. Before the pandemic, a combination of reduced regulatory
burden and pro-growth tax policies helped to create one of the
strongest economies in our lifetime. All in the period of a short few
years, we have seen that evaporate.
We should be focused on policies that will get us past this pandemic
and back to the strong and inclusive economic growth we were
experiencing rather than taking advantage of a prolonged pandemic to
reimagine America as a welfare state.
This is the wrong time to raise taxes.
Excuse me just a moment, Mr. President. Excuse me. I didn't notice
that I have been joined by the Senator from Nebraska.
I will now yield more of my time to the Senator from Nebraska.
The PRESIDING OFFICER. The Senator from Nebraska.
Mr. SASSE. Mr. President, I know that Senator Grassley is going to
join us momentarily, so I will cut in line until he arrives. But I
would like to thank Senator Crapo for his leadership in organizing
this.
It is a little odd to be doing this on the Senate floor when we
should be having markups and hearings in the Senate Finance Committee,
but the Senate Finance Committee has not been considering any of this
proposed legislation despite the fact that we are dealing with New
Deal-size and -level legislation. Yet the Finance Committee is not
considering it, so I thank Ranking Member Crapo for bringing us to the
floor.
I want to talk about some of these taxing and spending issues, but I
want to make it clear that I am not here to talk about this because I
am obsessed about the marginal tax rates for the top 1 percent of
Americans. I am not. It is not why I ran for office. But I am here
today to talk about this because, as a China hawk, I am obsessed with
the fact that the American people, the American Government, American
technology companies and lots of companies that aren't today thought of
as technology companies but will increasingly be technology companies
operating in different verticals--I am obsessed with the fact that our
firms and our people are going to need to be able to compete with the
Chinese Communist Party.
The future of everything, from technology to trade, to global
security and defense issues, is going to go one of two ways: It is
either going to be led by the Chinese Communist Party or it is going to
be led by the United States
[[Page S6569]]
and our allies and Western values. The future of not just global
economics but global security policy over the next 3 and 5 and 7 and 10
years is going to be radically shaped by which direction we go.
Failure is not an option. This next century is going to be defined
either by oppression, censorship, and brutality--the sorts of things
that we are seeing in Xinjiang right now as the Uighurs are brutally
oppressed by the Chinese Communist Party--or we are going to see a
world that is led by Western values and beliefs in trade and human
rights and open navigation of the seaways and transparent contracts and
the rule of law.
That is the proper context in which we should be considering this
taxing-and-spending debate, and it would be helpful for the American
people if we would discuss President Biden's tax-and-spending spree in
the context of that global technology and diplomatic competition with
the CCP because these dangerous policies in this $3.5 trillion or
whatever pricetag it is going to end up at--this piece of omnibus
legislation is going to hurt our ability to compete against Beijing.
Spending is out of control. The American people, last November, just
10 months ago, elected an evenly divided Senate. Yet somehow
progressives believe they have a mandate to radically remake America.
You actually hear a lot of them use language about radically
transforming America, as if an American public that voted for a 50-50
Senate was voting for some sort of radical remaking of American policy
as a newer-new, bigger-big New Deal.
They have spent trillions of dollars that we don't have already this
year, and now they are looking to add another $3.5 trillion to expand
cradle-to-grave government propositions about how government should
interfere and interact with the average American's life.
Well, what is government? What a government is supposed to be is a
compact for the common defense. The first and most fundamental
principle that government exists to do is make sure that everyone is
free from violence and chaos and tyranny so that they can organize
their lives and local communities. That is the first thing government
is supposed to be. Yet we also believe that government has some social
safety net responsibilities.
Stated in a summary fashion, you might say that the government is
supposed to be the army and we also have some social safety net
insurance programs attached to them. It seems like, when you listen to
Senator Sanders speak, he thinks of it exactly the opposite: The
government is a giant insurance company that just happens to own a
navy. And sometimes it sounds like he doesn't even really care if we
own a navy; he just conceives of the government as a giant insurance
program where everything is compulsory and government decides what
programs people need to have and what services they want. The vast
majority of the American people don't want that and they didn't vote
for that, and a 50-50 Senate shouldn't be trying to deliver that.
This year, the President and my Democratic colleagues have increased
spending in every area--social, environmental, and economic policy-
related. If there was an opportunity to spend over the course of the
last 8\1/2\ months, they have taken it. A couple trillion here, a
couple trillion there, and pretty soon, you are talking about real
money.
Now it is time to pay the piper, and my colleagues are talking about
raising taxes. But this isn't just any tax hike we are talking about.
When you look at the corporate rates that we are looking at, we would
be talking about the highest corporate tax rate in the industrialized
world. These are just the new taxes. Yet even that doesn't pay for all
of the new spending. So we are talking about new legislation that would
radically raise taxes to the highest corporate tax rates in the
industrial Earth and yet still not pay for all of the new spending they
are talking about. When deficits grow forever, opportunities shrink.
We have a Member of the House of Representatives who, in her
supertelegenic way, figured out how to get attention last week by
wearing a dress that said ``Tax the Rich'' on the back of it. What the
dress should really read is ``Tax the Young'' because history tells us
very clearly that when you deficit-spend at the level they are talking
about doing here, this is a tax of current older and wealthier people
against younger people. That is how inflation works. That is how debt
and deficit work. The dress should have read ``Tax the Young.''
These are tax hikes that make communist China a much better business
environment than the United States. Under the President's plan,
Americans would have a 32-percent combined rate, compared to a much
smaller Chinese tax rate, at their baseline nominal level. But it is
important to recognize that the Chinese tax code currently incentivizes
high-tech businesses with an even lower 15-percent rate. So we are
talking about north of a 30-percent rate against the Chinese Communist
Party trying to make sure they attract investment by taxing their
technology and digital companies at a 15-percent rate. This is the
definition of shooting yourself in the foot.
My friends on the other side of the aisle are a lot of smart folks,
and they know that tax rates actually matter for international
investment and for competitiveness. One of the ways you know they know
is because, for months, Treasury Secretary Janet Yellen has been out
seeking a global minimum tax arrangement. She is admitting the obvious
truth--that a new tax increase will saddle American firms with a burden
that other companies across the globe don't have.
The CCP is not going to bail us out, as we would potentially raise
taxes to the highest rates in the world, by also raising their tax
rates to bail out President Biden's domestic agenda. Beijing looks at
our endless debt, at our entitlement crisis, at our tax hikes, at our
disunity, and they see a strategic advantage.
These China-friendly tax hikes would raise the cost of doing business
in America. These China-friendly tax hikes would drive innovation
overseas. These China-friendly tax hikes would lead to more corporate
inversions. These China-friendly tax hikes will hurt American R&D.
If you want the 21st century to be defined by global Chinese
Communist Party leadership, you would tax and spend just like this
legislation seeks to do. Reckless spending doesn't steward a great
nation. Super tax hikes do not promote innovation.
Competition with the Chinese Communist Party is the defining national
security issue of our time, whether my colleagues in this body want to
admit it on a regular basis or not. While the Chinese Communist Party
plunders American intellectual property, steals American ingenuity, and
pours investments into their state-run technologies, Washington is
debating whether or not we should punish innovative firms and
innovative Americans.
This isn't strong. This isn't smart. And the American people know
better.
I yield the floor to Senator Grassley.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. GRASSLEY. Mr. President, in 2017, Republicans reformed the Tax
Code in a traditional sense. We broadened the tax base by reducing tax
preferences for special interests in favor of lower overall tax rates.
We also had several other goals, including maintaining the
progressivity of the Tax Code, cutting taxes across all income groups--
predominantly for the middle class--and making our business tax system
globally competitive. We were able to accomplish each of these goals in
that 2017 tax bill.
On average, taxpayers across all levels saw a tax cut. Middle-income
taxpayers saw the largest percentage decrease in their tax bills. Also,
we not only maintained the progressivity of our Tax Code, we made it
more progressive.
Moreover, the bill brought our business tax system and rates in line
with the rest of the world. You just heard Senator Sasse speak
brilliantly about that point. It put an end to the practice of
corporations moving headquarters offshore to avoid paying the highest
tax rate in the developed world.
In the process, it incentivized American businesses to invest here at
home and made America a more attractive place for foreign companies to
locate.
Now, prepandemic, these reforms resulted in the highest economic
growth,
[[Page S6570]]
the lowest unemployment, and the biggest wage gains that we had seen in
decades. So when you talk about what the Democrats are proposing
through reconciliation, it is kind of like they are ready to kill the
goose that laid the golden egg.
Now we are post-COVID. Democrats assert a massive expansion of
government is necessary to, in their words, build back better. But that
is exactly backwards. America will build back better post-pandemic, but
it won't be because of the government. In fact, it is already happening
due to the perseverance of the American people and the ingenuity of the
American entrepreneurs and job creators.
Unfortunately, the tax bill unveiled by Ways and Means last week will
only hinder our path back to the prosperity that we had prior to
February 2020. Their bill is the exact opposite of tax reform. It would
raise marginal tax rates on individuals and small businesses to a level
not seen since before the 1986 tax act.
Moreover, our corporate tax rate would once again be the highest
among our major trading partners. These tax hikes will slow our
recovery from the pandemic, and it will reduce capital investment; and
it takes capital investment to create jobs. So it will result in fewer
jobs, and it is also going to result in reduced wages beyond the
reduced wages that is already happening because inflation is heating
up. It will reinvigorate corporate inversions with major companies
fleeing overseas.
In conjunction with raising tax rates, they narrow the tax rate base
in favor of social and corporate welfare handouts. Now, I say handouts
because the majority of their bill's $1.2 trillion in tax cuts aren't
reductions but turn out to be pure spending.
According to the Joint Committee on Taxation, $689 billion--or 57
percent--of their so-called tax cuts are actually outlays. That is a
fancy way of saying Treasury is going to write the individual or
businesses a check that may exceed their taxes that they had otherwise
paid.
This is turning our tax laws and the mission of the Internal Revenue
Service on its head. No longer would the Tax Code primarily be raising
revenue necessary to fund essential governments. In fact, it would be
about doling out cash to those that Democrats consider worthy.
Given their rhetoric, you might think that these types of cash
payments would be reserved for low- to moderate-income individuals and
families. But, even very wealthy individuals buying electric cars,
millionaires investing in green energy projects, and multibillion-
dollar corporations will be in line for Federal checks.
This is astonishing coming from a party claiming to be outraged by
wealthy individuals and profitable corporations paying zero tax. As
recently as March of this year, President Biden castigated Amazon for
not paying ``a single solitary penny in federal income tax[es].'' If he
finds that unacceptable, then he should be beside himself about this
Democrat tax proposal.
Under their tax bills, a company such as Amazon would have an
effective tax rate of not just zero, but negative. In other words,
favored companies could receive a check from the government in excess
of any income taxes owed. Meanwhile, disfavored groups would be left to
pick up the tab. This includes Iowa family farmers, who could see their
years of hard work taxed away as a result of the death tax exemption
being slashed in half.
What I have outlined here is a small sample of concerns that I have
with the House proposal. Their bill is so chock-full of tax giveaways,
counterproductive tax policies, and punitive tax hikes that one former
Democrat Senate staffer is quoted in the publication of POLITICO
calling the House approach--in that person's words--``laughable.''
I hope my Senate colleagues do better. It will be hard for them to do
any worse.
I yield the floor.
The PRESIDING OFFICER. The Senator from Indiana.
Mr. YOUNG. Mr. President, in 2017, my colleague Senator Sanders said:
The function of reconciliation is to adjust federal
spending and revenue, not to enact major changes in social
policy.
Now, fast forward to 2021, and Senator Sanders and many of my
Democratic colleagues have changed their tune. You see, Democrats in
Congress are doubling down on their efforts to steer America toward the
Democratic socialist policies laid out in Senator Sanders' budget with
a $3.5 trillion spending plan that would be the most significant
expansion of our social safety net programs since the 1960s.
Democrats are seeking to enact these sweeping changes through
reconciliation--a partisan process, which Senator Sanders himself said
is not meant to be a vehicle for major policy changes. From job-killing
corporate tax hikes to small business money grabs and hidden tax
increases on the middle class, the Democrats' plan will punish job
creators and workers and make us less competitive on the global stage.
Now, perhaps that is part of their plan--to remake the United States
of America in the image of Western Europe. It is as if they want to
punish businesses while rewarding unemployment and dependence on the
Federal Government.
Republicans want to empower Americans to be self-sufficient, to
unleash their God-given potential. That, after all, is the promise at
the heart of the Declaration of Independence. It is that promise that
has led generation after generation of people to our shores so that
they, too, can realize the individual liberty, the promise at the heart
of America's Declaration of Independence.
Republicans want to provide employment opportunities and a strong
economy. We don't want to make people beholden to the government for
their livelihood. It is not healthy. That is not freedom. It is not
American.
As a young man, I visited the Soviet Union as part of a junior high
school soccer exchange trip. I still remember what I saw there. Food
was scarce. The water was, too. There were public water stations, where
Russians drank from a communal cup. They were desperate for everyday
items Americans take for granted: blue jeans, for example; and chewing
gum, too. For decades, Russians were denied this because it was a
symbol of American culture.
Now, think about that. A government that gives you everything can
also take anything away, even chewing gum. Profligate collectivism--you
might call it socialism--creates an environment where citizens
progressively give up the right to decide how they spend their
earnings, how they educate their children, how they get better when
they are sick; a system where citizens are frozen on the lower rungs of
the ladder of life's opportunity, where upward mobility is unknown.
That is why the Democrats' reckless tax-and-spend proposal goes
against everything we believe in this Nation. Among its many defects,
their proposal picks winners and losers. It increases our dependence on
foreign oil and allows blatant double dipping.
All of this is, of course, incredibly misguided and simply makes no
sense when gas prices have jumped 40 percent since January, directly
harming middle-income Americans who can't afford a cent more.
Punishing oil and natural gas producers while propping up
renewables--many of which have materials directly sourced from
communist China--will have disastrous, wide-reaching effects. A 100-
percent renewable energy-supported grid will result in blackouts and
will make power delivery less reliable for millions of families, not to
mention the job losses for the 10 million Americans employed by these
industries.
Democrats are also proposing sweeping changes to Medicare. This is a
program that is incredibly popular among our senior citizens, and it is
already on shaky financial ground. It is projected to reach insolvency
within the next 4 years, prior to any changes by the Democrats that
will undermine it. But Democrats are determined to add benefits that
private plans already cover more efficiently. Adding hearing, vision,
and dental under traditional Medicare is duplicative of the coverage
provided through Medicare Advantage.
Seniors enjoy their high-performing Medicare plans, which come at
little to no additional cost. Expanding Medicare is unnecessary,
duplicative, and will come with higher costs, less access, and harm the
quality of care providers are able to provide.
These are just a couple of examples, but the Democrats' reckless tax-
and-
[[Page S6571]]
spend proposal would have harmful consequences across the board for our
country and the freedoms we enjoy.
Americans should be outraged--I know Hoosiers are--not only by this
radical expansion of government but by the process Democrats are using
to ram through their liberal agenda, possibly ramming it through a 50-
50 Republican-Democrat equally divided U.S. Senate.
Now, Republicans have stood up to socialism again and again. And we
must continue to do so by opposing this reckless tax-and-spending
boondoggle. We must protect the American promise and ensure that this
remains the land of the free.
The PRESIDING OFFICER. The Senator from Montana.
Mr. DAINES. Mr. President, I join my colleagues today in speaking out
against the Democrats' very reckless $3.5 trillion--that is with a
``t''--tax-and-spending spree that Chuck Schumer and Nancy Pelosi are
rushing through Congress. They are going to make history if they get
this passed. This will be the largest spending bill in our Nation's
history. Let me say that again. This will be the largest spending bill
in our Nation's history.
Through this bill, Congressional Democrats are trying to reshape the
very foundation of our great Nation. They are trying to pass their far-
left policies and push the United States of America down the path of
socialism. I don't say that lightly. I don't like to use a lot of
hyperbole, but that is what is going on.
This reckless tax-and-spending spree bill is packed full of tax
increases and new spending programs that will kill hundreds of
thousands of jobs; it will reduce economic growth; and it is throwing
more fuel on the inflation fire that we see burning right now across
this economy. In fact, according to the Tax Foundation, it would reduce
take-home pay for low- and middle-income Americans.
It will expand and insert the Federal Government into every aspect of
Montanans' and Americans' lives, and it is going to bankrupt our
country. You know, I am not actually sure the congressional Democrats
understand the impacts of their efforts and what a burden this tax and
spending will put on Montana families, Montana small businesses,
Montana farmers and ranchers, and the future generations of Montanans.
In fact, a few weeks ago, I heard one House Democrat actually say:
We can't go bankrupt because we have the power to create as
much money as we need to spend.
These are the actual words of a Democrat in the U.S. House of
Representatives who will soon be voting on this legislation.
It is baffling. Montanans and the American people know that money
doesn't grow on trees, and I would hope the congressional Democrats
know that as well.
Frankly, this mindset is terrifying as I think about the future of
our country. The Democrats' reckless spending bill comes at a time when
Montanans are already facing skyrocketing prices on everything from gas
to groceries. Montanans are feeling the pain in their pocketbooks every
day because of these record-high inflation numbers. That is a direct
result of the Democrats' and President Biden's tax-and-spending
problem. You see, the Democrats already flooded the economy with nearly
$2 trillion in new spending earlier this year on a purely partisan
basis, and now we see inflation at a 13-year high.
Think about it. Even if we experience no--in other words, zero
additional rise in inflation for the rest of the year, Montanans would
still be hit with an almost 5-percent increase in costs for the year.
It is interesting. A few months ago, we heard the words: Well, this
is all transitory. It is all transitory. This is going to go away in a
few months. Many of us were skeptical and didn't believe it. You are
not hearing the word ``transitory'' anymore coming from the Democrats
because if we take a look at the position the Federal Reserve has been
talking about, they are telling us inflation is here to stay at north
of 5 percent, certainly, this year and at numbers certainly greater
than that ``2 percent threshold'' that was talked about--probably in
the 4 percent to 5 percent in the outyears.
If you spend any time at all speaking to leaders in this country,
where they are every day looking at the supply chain price of goods,
they are telling you there are inflationary pressures in every part of
this economy. The absolute last thing we should be doing is spending
trillions more taxpayer dollars on top of that $2 trillion partisan
spending package the Democrats embarked on just this past March.
We know that doing so will send inflation much, much higher. You see,
inflation is a tax on all Montanans, on all Americans because as prices
go up, paychecks shrink. And Democrats have many more tax hikes planned
as they look to pay for this spending spree by asking Montana families,
Montana small businesses, our farmers and ranchers to foot the bill.
Now, I have heard my Democratic colleagues suggest this bill must be
``paid for.'' But what does ``paid for'' mean? What does that mean? It
is very simple. It means that Democrats' reckless taxing and spending
spree will be paid for by massive tax increases.
Let's go over a few of these tax hikes that Montanans will face if
Democrats continue down this reckless path. For starters, this bill is
absolutely an assault on small businesses. By the way, small businesses
create most of the jobs in this economy. It would gut the 20-percent
small business tax deduction, placing small businesses at a
disadvantage. This deduction benefited more than 21 million small
businesses in 2019, and it generated $66 billion in tax savings that
these businesses could then reinvest and grow their business, create
more jobs, pay their employees more.
These savings help small businesses expand, allows them to compete in
this global market, to offer raises as well as bonuses. Removing this
tax benefit would make it harder--make it harder--for them to expand
and succeed against larger competitors.
The Democrats' reckless tax-and-spending spree bill would also
increase the top income tax rate to nearly 40 percent and drastically
lower the income thresholds for the top tax bracket.
Some ask: What is fair? What is fair share? Paying 40 percent of your
income to the Federal Government is where the Democrats want to take
the top rate. Since most small businesses are structured in what is
known as a passthrough, meaning business profits are taxed as income,
this tax hike would devastate our small business owners. In fact, these
two provisions alone would hurt Montana's small businesses drastically.
Over 99 percent--listen to this again. Over 99 percent of Montana
businesses are small businesses. We can't let this happen. This would
destroy livelihoods, harm local communities and local economies. In
fact, the combined tax rate for passthrough businesses would rise above
50 percent in 40 out of 50 States, including the State of Montana.
This reckless spending bill will also supercharge marriage penalties
in the Tax Code. You heard that right. You see, buried in the
Democrats' massive tax-and-spending spree is also an attack on
marriage. Married couples could be facing higher taxes simply because
they are married.
Democrats have also proposed the elimination of what is known as
stepped-up basis. This is a backdoor death tax that will hit Montana
family farms and ranchers particularly hard. You see, in Montana,
agriculture is our way of life. Our farmers and our ranchers work hard
to put food on the table for their families, for our great State, for
the country, and the entire world. The last thing that Montana farmers
and ranchers need are more taxes, and that is what the Democrats are
trying to do.
In fact, Senator Thune and I led a letter to President Biden, which
was signed by every Member of the Republican conference, urging the
President to reconsider this proposal. As of now, this is not currently
in the House Democrats' bill. But, unfortunately, the President and
many of my colleagues here in this Chamber, on the other side of the
aisle, continue to insist that this be included in their bill.
This reckless proposal will also damage our international
competitiveness. This is about a global economy. This is about winning
the global race because they want to raise the corporate tax rate to
26.5 percent. If you combine
[[Page S6572]]
that with State corporate tax rates, the average corporate tax burden
would rise to about 31 percent. And there is a startling piece of
information here. You take 31 percent and guess what. That rate would
be higher than communist China. In fact, it would be one of the highest
corporate tax rates in the entire world.
The Democrats don't understand why jobs leave our shores. I will tell
you one reason why is because of tax policy. When you raise the rates
higher than communist China, it is going to have a direct effect on
jobs here in the United States.
Do you know who is cheering about this tax increase in this
provision? I will tell you who is cheering about it. China is. They
know the Democrats' tax increase will force American businesses to send
American jobs overseas. That is the last thing we need because we need
to be supporting American businesses, supporting the American worker,
the American family, the American farmer, the American rancher and the
hard work they do every day.
Sadly, the Democrats' reckless tax-and-spending spree does exactly
the opposite. Sadly, it will put China and our global competitors
first.
For all these reasons and many more, I am very concerned about what
will happen if this dangerous proposal becomes law. I intend to fight
vigorously, along with many of my colleagues here, against it every
step of the way.
I yield back my time.
The PRESIDING OFFICER. The Senator from Ohio.
Mr. PORTMAN. Mr. President, I want to thank my colleague from Montana
who just talked about the impact of this tax-and-spend bill on his
constituents in Montana. I will say the same is true in 49 other
States, including my State of Ohio.
This is, we are told, the biggest tax increase on America in over 50
years. So this is a big deal. In terms of the spending we have been
hearing today, it is the largest spending package ever. In inflation-
adjusted terms, it is probably the largest social spending package
since the New Deal. That is what we are talking about here. This would
fundamentally change our country in so many ways.
It is good that Mike Crapo, who is the top Republican on the Finance
Committee, asked us to come on the floor today just to kind of talk
about it because our constituents need to know what is going on. They
need to understand what the impact would be on them, their lives, their
futures.
There are new taxes being proposed in this on pretty much
everything--small businesses. That was just talked about. Most
businesses in Ohio and around the country are not what they call C
corporations. They are passthroughs, like subchapter S--sole
proprietors, partnerships. That is about 80 percent, 90 percent of the
businesses. It is the smaller businesses. They get hit.
There are actually taxes on marriage because of the marriage penalty.
There are taxes on death because of the increase in the estate and
gift tax. There are taxes on capital gains, which that is the part of
our Code where you try to give people a little lower rate on longer
term investment, try to encourage risk-taking and investments so that
you can grow the economy, create jobs.
There are also a bunch of other taxes in here.
But the one that I want to talk about today is the tax on
corporations because it gets less attention. People think: Gosh, they
are big corporations. They can handle more tax increases. Some of them
aren't paying taxes.
Well, they use the Tax Code sometimes that we set up here to avoid
paying the full amount of taxes, but they pay plenty of taxes. When you
increase the taxes, everyone says the same thing--whether it is the
Congressional Budget Office, which is the nonpartisan group up here in
the U.S. Senate, or whether it is the Joint Committee on Taxation,
which is a nonpartisan group up here in the U.S. Senate or House, or
outside groups looking at it--you increase those taxes on these
companies, who pays it? Workers, primarily, and, second, consumers.
We just talked about inflation. Think about it. All this new stimulus
spending--because that is what it is--will add to inflation. But so
will these higher taxes because part of what happens is, if you have a
higher tax on you, and you are trying to sell something, you have the
same costs--maybe even higher costs coming in--you are going to charge
more. Therefore, when you go to the store to buy something, there is
going to be more inflation.
All of this encourages more, not less, inflation at a time when
inflation is already unacceptably high. I think everybody agrees with
that.
When the Democrats did the $1.9 trillion package back in March--$1.9
trillion, that used to be a lot of money--we just sort of say ``$1.9
trillion.'' But when they did that, everybody said: Oh my gosh, that is
too much stimulus spending. It is going to cause inflation. The
promoters of that said: No, it won't. It won't do that because the
economy is so weak. It will be good for the economy.
Well, it overheated the economy. And Larry Summers at the time, who
was the former Secretary of the Treasury in a Democratic administration
and economist on the other side of the aisle--he warned about it as did
others. He said: Look, this is going to fuel inflation.
Boy, has it.
So, yes, people are getting some wage gains right now, higher pay. I
like that a lot. I think it is great. Before 2019--before COVID hit--
thanks to the tax reforms of 2017, primarily, in my view, wages were
going up. February of 2020 was the 19th straight month of wage gains
over 3 percent annually. My gosh, that was great--mostly lower and
middle-income earners, by the way.
Some of that is happening now, but it is all being eaten up. If you
have a 5-percent pay wage raise this year, you probably got nothing
because you are going to have about 5 percent inflation. Your dollar is
not going as far. So these are all issues that we have got to make sure
the American people understand.
In terms of the corporations and what the problem is there, remember
that before the tax reform in 2017, we had a lot of companies that were
leaving our shores--literally. They were saying: Do you know what? Our
Tax Code is so bad in America that we are going to invert--that is the
name the economists gave it--literally move their headquarters overseas
to escape our uncompetitive Tax Code.
I hated that, and I hope all Americans did. I hope all Members of the
Senate did. I think they did. They said: Why would we want to encourage
companies to go overseas? That way, their investments and their jobs
are tending to go overseas as well.
But it wasn't just that. We had a lot of companies in the United
States being bought by foreign companies. If you think about it, that
made all the sense in the world. The foreign governments had a much
better Tax Code for them, so they could buy a U.S. company and make
more money on it than a U.S. company could under our Tax Code. Again,
it is not what we wanted.
We had a situation where the companies were going overseas in every
sector of our economy. I am a beer drinker, so I was particularly
concerned about the beer companies, and every single one of them went
foreign. They were big. The largest U.S. beer company was Sam Adams,
which had about a 1.4-percent market share. The rest of them all went
overseas. So that is what was happening.
There is some new data out showing that since the 2017 tax reforms
were put in place, there was a 50-percent increase in American
companies buying foreign companies and a 25-percent decrease in foreign
companies buying our companies. That was good. That was good. But now
we are talking about going right back to the bad old days.
One significant factor in companies going overseas and U.S. companies
getting bought out by foreigners was our high tax rate of 35 percent--
the highest in the developed world. Everyone heard about that. But,
also, there was a lack of enticements to keep valuable intellectual
property here in the United States; whereas, other countries provided
that. Also, unlike other countries, we were in what was called a
worldwide tax system, where we were requiring U.S. companies to pay
taxes on their foreign earnings at the high U.S. rate, the 35-percent
rate. Almost all of our competitors don't do that. They use the so-
called territorial system, where you only tax in the foreign
jurisdiction where you did the business. You are not taxed twice. That
is
[[Page S6573]]
one reason we were losing, so we changed that.
The 2017 Tax Cuts and Jobs Act took bold steps to reassert our
competitiveness as a country. We lowered the corporate tax rate to 21
percent. We went to a territorial-type system--not entirely
territorial, as we still had a minimum tax, but we created an incentive
to stay here. We created jobs and investments here. We lowered the
corporate rate, but we also had other incentives to create more
intellectual property here in America.
As a result, by the way, the corporate inversions stopped. They
stopped. Instead of losing companies overseas, again, we started to buy
more companies overseas and bring that investment to America.
The foreign-derived intangible income provision, which provided a
reduced tax rate for U.S.-based businesses on high-return foreign
market income served by U.S. operations, resulted in companies like
Cisco, Qualcomm, Synopsys, Google, Facebook, and others bringing back
intellectual property that was overseas. So it actually worked in the
way we had hoped it would. It brought IP back here. That means jobs.
That means research. Others retained their intellectual property here
in the United States, like Intel and Disney and General Mills and
others, because of these tax laws, because they were coming to us and
saying: Why are we here in America, doing this? We should do it
overseas based on what Congress has provided as a tax environment for
us.
The largest U.S. companies during that time period increased their
domestic research and development spending by 25 percent, to $707
billion. They increased their capital expenditures by 20 percent, to
$1.4 trillion. That is all good. Again, workers saw real benefits: a
50-year low in unemployment; strong wage growth, particularly for low-
and middle-income workers; the lowest poverty rate in the history of
the country. We started to keep track of it back in the fifties. This
follows an earlier study by the nonpartisan Congressional Budget
Office, or CBO, that found that 70 percent of the tax cuts ended up
going into workers' wages and benefits. So workers and businesses both
benefited in this opportunity economy. It was driving a lot of
promising growth in the United States.
The Democrats' tax plan would systematically dismantle so many of
these pro-growth tax cuts and reforms that Congress put in place in
2017. Under this new proposal, the corporate rate would be raised from
21 percent to about 28 percent. When combined with the average State
and local corporate taxes in America, U.S. businesses will be on the
hook for an average tax rate of about 32 percent--once again giving us
the highest rate of taxation in the developed world.
The Democrats would also increase the global intangible low-taxed
income rate, called GILTI, and the base erosion and anti-abuse tax
rate, called the BEAT, which would punish U.S. companies that work to
serve foreign markets. We should like that. We want U.S. companies to
create jobs here to support their international sales. The proposal
would modify this GILTI calculation to a country-by-country basis,
making it even more difficult to compute and track U.S. tax liabilities
for companies operating overseas--again, a disincentive that
discourages investment in new and emerging markets. Why would we want
to do that?
Through these policies, Democrats would be creating a tax environment
hostile to businesses and harmful to workers. According to the
International Tax Competitiveness Index, the Democrats' plan would
cause the United States to drop steeply down the rankings from 21st to
28th in the world among developed countries. It is the same ranking we
had, by the way, before the 2017 tax reforms.
Many businesses will make what is unfortunately a completely rational
decision to move their headquarters again. We will see inversions
again, taking with them thousands of good-paying jobs and billions of
dollars in assets. Others that choose to stay here will nonetheless
become prime targets for acquisition, as they were before, by
businesses in other countries, like China, that would have a lower tax
rate than we.
But who ultimately bears the brunt of these Democratic tax hikes on
businesses? Again, it is the workers. Just as the Congressional Budget
Office found that 70 percent of the corporate tax cuts go into workers'
wages and benefits, the Tax Foundation found that 70 percent of tax
increases are borne by workers. It is no surprise, then, that the
nonpartisan Joint Committee on Taxation, right here in this Congress,
found that two-thirds of the Democrats' corporate tax hike would fall
on lower and middle-income taxpayers. Let me repeat that. The JCT, a
nonpartisan committee here in Congress, found that two-thirds of the
Democrats' corporate tax hikes would fall on lower and middle-income
tax taxpayers.
By the way, that is about 100 million taxpayers who make less than
$400,000 a year. So much for the pledge that no one under $400,000 in
income would possibly be affected.
So I look at these facts, and I just can't understand why we would
want to move to this kind of a tax plan. Why would the American people
support tax hikes that are going to be bad for workers and bad for our
competitiveness as a country? Why are we punishing workers? They are
the ones who get the short end of the stick here.
Let's focus on what works--on encouraging investment and growth here
in the United States of America. That helps workers. Let's not go down
a path that will once again send U.S. jobs and U.S. investment
overseas.
I yield the floor.
The PRESIDING OFFICER (Mr. Markey). The Senator from Louisiana.
Mr. CASSIDY. Mr. President, the Democratic Party's reckless $3.5
trillion tax-and-spend reconciliation--their spending spree--will be a
disaster for the American family.
The Committee for a Responsible Federal Budget warns that this spree
could increase the deficit not by $3.5 trillion but by $5 trillion--a
little bit of a bait and switch. Oh, it is only 3.5--only 3.5. It turns
out the independent Committee for a Responsible Federal Budget says,
no, more like 5.5.
Now, today, my colleagues have shed light on the many costs of this
economic--I don't know what to call it--potential catastrophe. Here are
just a few in speaking from the perspective of my State.
If our goal is to get back to the prepandemic economy, which, by the
way, was the best economy of my lifetime--an economy in which there was
record-low unemployment, which is to say record-high employment for
women, African Americans, Hispanics, the disabled, high school
dropouts; record-high employment for veterans, you name it--then this
is not the way to go.
By the way, the wage growth in this prepandemic economy was
disproportionately for those in the lower quintile of our Nation's
economy. So those who were lower waged to begin with were seeing the
greater growth in their wages under the previous economy.
Why does this matter a lot for my State? Louisiana is a hub of
innovation for energy and other technologies. Innovation creates jobs,
raises wages, and puts food on the tables of working families in my
State. Congress should encourage that. These are not the Ph.D.s in
solar energy; these are the people who produce the oil and gas or use
that oil and gas to make the plastics that matter so much to a modern
economy.
By the way, you can't help but notice the hike in the price of
gasoline that has just occurred, and now they are using the term
``energy poverty'' because there is a hike in the price of electricity.
This is hitting the families as a hidden tax.
But this bill squashes that innovation, and it is the new taxes and
the increased taxes as to how the spending spree is financed.
As once said, ``The power to tax is the power to destroy,'' but these
taxes are destroying the jobs and wage increases that have been so
important to these working families over the last 4 years.
The rhetoric, of course, is that this is about a few tax hikes on the
wealthiest of Americans, but what we have learned from the Joint
Committee on Taxation is that two-thirds of these tax increases will
fall upon lower and middle-income families.
As one example, again, House Democrats propose hiking the corporate
tax
[[Page S6574]]
rate to an uncompetitive 26.5 percent. The wealthy will still be
wealthy. Studies show that when you raise corporate tax rates, it
translates into lower wages for the employees and lower dividends and
stock escalation for the shareholders. OK. So that is the employee, the
operator in the refinery who shows up to make sure that it runs safely,
who goes home and helps pay the rent or pay off his mortgage, and it
hurts the retiree, who is hoping that her stock portfolio will allow
her to live a better life when she retires.
It is billed as a hike to the corporations, those greedy
corporations, but that hike is felt by the workers and the retirees. So
when a family begins to figure out how to pay their higher electricity
bill, how to pay their increased cost of gasoline with the inflation
that has been eating up their budget--they have to pay more for food,
and their children are going back to school, we hope, so they are
buying those supplies--they will not get the wage increase they had
previously hoped for. This hurts the entrepreneur who is trying to
start a small business, and by starting that small business, he employs
other people. Rolling back the 2017 Tax Cuts and Jobs Act, raising
taxes on working families, will not help them.
President Biden has proposed nearly doubling the capital gains tax,
raising it to 39.5 percent. Again, who does that hurt? It hurts, again,
the retirees who have been saving for their entire lives so that they
can have good lives when they retire.
The Democrats are really earning the title of the ``tax-and-spend
party'' with this monstrosity. These taxes will stunt our economy, and
the needless trillions in spending will skyrocket already increasing
inflation, further impacting working American families.
Mark my words: This will be President Biden's economic Afghanistan.
I yield the floor.
The PRESIDING OFFICER. The Senator from Wyoming.
Mr. BARRASSO. Mr. President, I come to the floor to join my
colleagues in opposing the Democrats' reckless tax-and-spending spree.
The bill that we are talking about is the centerpiece of Bernie
Sanders' socialist plan for America. The Democrats' plan does play
favorites, however, and what they really focus on doing, interestingly,
is hurting the working folks in rural America to give tax breaks to
wealthy families in big cities in liberal States.
The reason I tell you this is that this bill includes huge subsidies
for people who buy and drive electric vehicles. You don't see a lot of
that in rural States with long distances between community to
community.
Well, the government is already giving billions of taxpayer dollars
to electric vehicle manufacturers and for owners. Nearly 80 percent of
the tax credits go to households making at least $100,000 a year.
So what is happening now? The thing is, right now, the roads are
being used, chewed up, vehicles on the road, and how is it paid for?
Well, the highway trust fund. And how does that get paid for? People
paying the gas tax.
People who use electric vehicles do the same wear and tear to our
highways and pay nothing in terms of a use fee to use the highways as
they do. So they are paying nothing in, they are using the services,
they use the roads for free, and now they want subsidies.
And that is what the Democrats are offering. This bill would give up
to $12,500 to married couples to buy electric vehicles--12,500.
What kind of income? Maybe there is an income limit. I mean, you
don't want to give it to rich people. So the Democrats said: OK, if you
are a single person earning up to $400,000 a year, you can get a
subsidy. If you are a married couple earning up to $800,000 a year, you
still get the subsidy because, boy oh boy, we are going to push those
electric vehicles for the big cities and for our Democrat colleagues.
Democrats have gone so far as to even want to spend $7 billion to
subsidize luxury electric bicycles--astonishing.
Now, these giveaways have a pricetag, and that is why Democrats want
to pile enormous new taxes on the American people. They propose more
than $2 trillion in additional new taxes. This would be the largest tax
increase in half a century, but it is still not enough to pay for all
the new spending they want to do.
That is why they are trying a backdoor tax increase. What the
Democrats are proposing is putting the IRS on steroids--supersizing the
IRS. They want to increase funding for the Internal Revenue Service by
$80 billion.
The IRS says: Hey, give us a lot more money. We can hire a lot more
agents, and they can collect more money, even more than the $80 billion
that you give us.
So last week, Secretary of the Treasury Janet Yellen said she wants
to make banks report every transaction that is over $600--she didn't
just say it; she wrote it in a letter to the chairman of the House
Budget Committee--so they can watch and look at, investigate, spy on
families all across the country.
I have heard more from people of Wyoming about this one letter from
the Secretary of the Treasury than I have on many, many issues over the
years.
Every time somebody pays their rent, the IRS will now know about it.
Make a car payment; the IRS will now know about it. Pay the plumber;
the IRS will know about it.
The amount of power that the IRS has will now be more than ever
before. Democrats are going to send the IRS to shake down people for
every last dime they can. It is too much power. It is too much of an
invasion of privacy. The American people find this dangerous and scary.
The IRS is already one of the most powerful and unaccountable
Agencies in the Federal Government, if not the most powerful and
unaccountable Agency in the Federal Government. Now the Democrats want
to unleash it even further.
I just want to talk about one last tax, and it is a hidden tax, but
it surely hurts many Americans, especially the poor. And it is a tax
called inflation.
Inflation is happening because Democrats borrowed and spent too much
money already. If they pass this, prices are going to continue to rise.
People go to the grocery store; they are paying more. People go to the
gas station; they are paying more.
The Democratic Party's priorities are backward, but under the
Democratic Party today, prices are going up. Yet they are giving
kickbacks to the wealthy, their powerful friends. This is heading
America toward bankruptcy. The American people don't want higher taxes.
They want higher wages, lower prices, more jobs, more opportunity. They
don't want this reckless tax-and-spending spree--no, not one bit.
I yield the floor.
The PRESIDING OFFICER. The Senator from Oklahoma.
Mr. LANKFORD. Mr. President, so we are approaching a conversation
about two big issues here--one is a government shutdown, which I have
challenged this body a lot about of late to say: Why are we approaching
another government shutdown? And then, on top of that, we can't seem to
get any of the 12 appropriations bills done, which there are 12 of them
to be done by September 30, but exactly zero of them have actually gone
through committee because this body is so consumed with focusing on a
$3\1/2\ trillion new entitlement package--$3\1/2\ trillion--a straight
partisan package that would create a whirlwind of new entitlements.
To give you a perspective of how big 3\1/2\ trillion is, 3\1/2\
trillion is about the total revenue that the Federal Government brings
in in an entire year with all taxes, all fees. All everything is about
$3\1/2\ trillion. This is an additional package on top of that, of
entitlements of 3\1/2\ trillion new dollars in entitlements.
Now, if I go back to 2017, when we were trying to be able to
supercharge the economy and to be able to create more jobs, we passed
the Tax Cuts and Jobs Act. And in 2017, when we passed the Tax Cuts and
Jobs Act, it did exactly what we wanted it to do. It simplified the Tax
Code for the vast majority of individual filers, it reduced taxes for
just about every single filer, and it increased wages across the
country. And it increased revenue coming into the Treasury because it
stimulated our economy, which created more jobs, which created more
opportunity for more people to make money. When more people make more
money, they pay more in taxes, and it comes and covers it. That is what
we did.
[[Page S6575]]
My Democratic colleagues are now proposing $2.1 trillion in tax
increases--tax increases not to cover our deficit, tax increases to
create new entitlements and to spend even more money. And the several
ways they do it are very, very painful, as I read through their
proposal.
One of those is that they are proposing to change the corporate tax
piece, which sounds so good to say: We are just going to change the
corporate tax piece so only corporations will pay this--the problem
being 1.4 million C corporations in the United States, and 84 percent
of those corporations that are out there have 20 employees or less.
So they can throw around the big corporations, and everyone thinks it
is Conoco and Apple. It is--the vast majority--small businesses
designed as C corps.
And how are they going to make them more competitive? They are going
to make those C corps more competitive by raising the tax rate for all
those corporations to make their tax rate higher than China.
Let me run that past you again. To make us more competitive globally,
they are going to make our tax rate higher than China's tax rate, while
we are trying to be able to compete with China on the world stage.
Not only that, there is a global minimum tax that is already out
there that is a small tax that is out there for every corporation. You
know who has that already? The United States does. You know how that
was created? It was created in the Tax Cuts and Jobs Act in 2017 to
make sure companies couldn't scam out and couldn't move their money
into other places, that they would be here. But if they decided to move
to a tax haven, it wouldn't be there. But we set it at a rate to make
us competitive.
They want to take that rate and supercharge it and make it one of the
top rates in the world.
Now, the statement from Janet Yellen is that she has already talked
to all of the other countries about this global tax, and they have
said: Yes, we are on board with a global tax. You go first.
Can I tell you something? I remember being a middle-school boy--any
male does. I remember being a middle-school boy and hanging out with my
friends and all of us were talking about doing something dumb, and it
always ended with someone saying: Let's all do it. You go first.
That is what is being proposed right now by Janet Yellen, saying:
Let's have the highest tax rate in the world, and other countries will
come and match it, and they will be competitive with us. You go first.
I can assure you, that didn't work out well as a middle-school boy;
that is not going to work out well for our companies, and it will not
work out for our economy.
There is this statement that should be ringing in the back of
everyone's head, this simple statement that was made years ago called
inversions. Do you remember that old statement when we used to talk
about corporate inversions? That was American companies being bought by
international companies and moved overseas for their headquarters. That
was a common conversation during the Obama administration, but
something happened. That term went away because in the 2017 Tax Cuts
and Jobs Act bill, that stopped, and now American companies started
buying foreign companies and moving them here, and everything shifted.
This $3.5 trillion monstrosity of new entitlements will flip that
again, and we will start hearing the word ``inversions'' because
American companies will be moved overseas. It is going to happen when
we have a really bad, uncompetitive rate.
Now, people may again say: Well, we are just going to stick it to
rich people, but everyone kind of quietly knows that prices will go up,
fewer people will get raises in those companies, and it will be less
competitive for the United States long term. Everyone knows that.
This $3\1/2\ trillion bill of new entitlements is also funded by
giving the IRS billions of additional dollars to do more enforcement
and to allow the IRS, as Janet Yellen has asked for over and over
again, to be able to track transactions of Americans of $600 or more,
either deposited in your account or out of your banking account.
I can assure you, banks all over my State in Oklahoma are already
saying: Don't make us turn in the transactions of every one of our
people to the IRS. Why does the IRS need this?
Interestingly enough, I have actually asked the Commissioner of the
IRS: Can you manage that much information?
And his answer was a very straightforward: No, we can't even manage
the information we have now, much less the amount of information that
would come at us of transactions of $600 and more.
This is the wrong direction. I could go on and on. In fact, I could
give you 3\1/2\ trillion reasons why this is the wrong direction. It is
the wrong policy. It is the wrong thing stepping out of an economy that
is damaged by COVID. It is the wrong set of policies long term for our
economy. It discourages work. And what we are facing right now in
workplaces all over the country, from small to large companies, they
are all saying the same thing: It is tough to get workers. Well, if you
think it is tough to get workers now, wait until there is $3\1/2\
trillion in new entitlements dumped into the economy and see how hard
it is to be able to hire workers then. This is the wrong direction for
our country.
I yield the floor.
The PRESIDING OFFICER. The Senator from Idaho.
Mr. CRAPO. Mr. President, that wraps up the presentations that we
have for today, and I want to thank my Republican colleagues on the
Finance Committee for coming and helping to explain the dangers of this
incredibly reckless taxing-and-spending spree that is being proposed
here in Congress.
As we get more details, as this package gets played out, we will be
back to explain further the dangers that there are. But I think we have
shown very clearly today that not only is the spending going to be so
damaging to this country, but the tax plan that is accompanying it will
make us less competitive if, in fact, not completely back into last
place in terms of competitiveness globally and will impact people all
across this country in their own tax burdens and their own inflationary
cost pressures, not just those who make over $400,000 per year.
This tax-and-spend spree must be stopped.
I yield back our time.
The PRESIDING OFFICER. The Senator from Virginia.
Mr. WARNER. Mr. President, I am going to speak and make a unanimous
consent request in a moment, and I am so anxious because a number of my
Republican colleagues--I remember being in middle school as well. You
don't want to be the first; you don't want to be the last.
Unfortunately, that is where we rank right now in terms of comparison
to OECD, in terms of raising corporate revenue. I don't think that is
fair for hard-working Americans.
And the ranking member on the Senate Finance Committee is someone
that I have huge, huge respect for and have worked with on many, many
items. We are going to have a chance to debate part of these
components, I think, going forward. But I would say this. When I first
got the note: Well, the Senator from Idaho--it was one of my first
times I was a gang member. The Senator from Idaho and I were part of
something called the ``Gang of Six,'' and we were audacious enough to
think that a proposal put forward by the so-called Simpson-Bowles
Commission to take on the debt and deficit issues in our country was
worthwhile and worth us both, frankly, offending folks in each of our
respective parties.
We were astonished that in the 2010-2011 timeframe, the country was
looking at $15 trillion of debt. We, obviously, were not very
successful, since we are now at about $27 trillion in debt; and, I
would argue, both sides bear lots of responsibility. I believe we cut
revenues way too much. In the last year or so alone, we jointly added
$5 trillion-plus in terms of spending around COVID.
But the one thing, I think, we both realized was what we shouldn't do
is ever mess with the full faith and credit of the United States of
America because that is like giving an irresponsible politician a hand
grenade and saying: Let that politician pull the pin out at any moment
in time.
[[Page S6576]]
Well, there may be some folks now who are prepared to pull the pin
out and put in jeopardy the full faith and credit of United States of
America. If that happens over the next 30 days, the one thing that we
can be guaranteed is it will rock the bond markets. It will rock how
America views--how the rest of the world views America's ability to
honor its commitments.
I fear, unless somebody--and, again, my friend from Idaho, I know,
realizes this as well, is that if we mess with this, if we were to
see--pull that hand grenade and have it explode on all of us, the
American people aren't going to decide whose fault it was or whose
responsibility it was. All they are going to end up seeing, I believe,
is that interest rates are going to go up because we have not dealt
with the debt and deficit. At $27 trillion, if interest rates go up 100
basis point, 1 percent, that is the equivalent of a--call it a tax or
spending obligation--of $200 billion a year of additional interest
payments. And those interest payments come before Medicare, come before
Social Security, and come before payment to our soldiers.
So I know we are rallying against spending, but let's make sure--and
we both ought to bear some responsibility on this--we don't mess with
the full faith and credit of the United States; because if we do that,
in addition to all the things that you are making criticisms of this
reconciliation plan, you have just added another $2 trillion of
spending--mandatory spending--over the next decade.
So we can agree or disagree on the reconciliation pieces and what
parts, but let's guarantee one way or the other we don't mess with the
full faith and credit of the United States.
And I thank my good friend from Idaho and all the good work that we
have done together and continue to do together. And I am anxious to
come back and--you know, some parts of your critique, I agree with;
many I don't. I know I am holding up also my colleague and friend from
the Intelligence Committee, the Senator from Texas.
Unanimous Consent Request--Calendar No. 347
Mr. WARNER. Mr. President, I rise today to seek unanimous consent to
confirm Mr. Matthew G. Olsen, President Biden's nominee to be the next
Assistant Attorney General for the National Security Division at the
Department of Justice.
As we all know, America recently marked the 20th anniversary of one
of the darkest days in our history: the terrorist attacks of September
11, 2001.
As chairman of the Intelligence Committee, I am privy to the
intelligence information being collected from across our IC community,
which sets forth the myriad threats our Nation continues to face both
at home and abroad. And the Senator from Texas, who is a great member
of the Intelligence Committee, is aware of those threats as well.
Our ability to counter these threats and ensure our national security
is dependent on having qualified individuals nominated by the President
in place so they can do their jobs and, importantly, be held
accountable through the confirmation process.
Prior to the attacks of 9/11--and this was one of the things that
were pointed out by the commission afterwards--literally 57 percent of
the Federal Government's Senate-confirmed top, top national security
jobs remain vacant--57 percent. And one of the key recommendations of
the 9/11 Commission was to accelerate the process of national security
appointments.
Unfortunately, if we fast-forward 20 years, today you would think we
would have learned the lesson, but today the situation is actually
worse than it was prior to 9/11. Of the 170 confirmable national
security-related positions, only 44 have been filled. That is just 26
percent. You know, my math shows that that means we have got about 74
percent that are unfilled. We have got to do better.
That is why it is essential for the Senate to swiftly confirm every
single qualified national security intelligence professional whose
nomination is pending on the Senate floor. That is why I strongly
support the swift confirmation of Matt Olsen.
The National Security Division, or NSD, at the DOJ has remained
without a confirmed senior leader for several months. Created in 2006,
the NSD consolidates the Department's primary national security
operations and serves as a key link between the Department and the
intelligence community. Its mission is to carry out the Department's
highest priority: protecting the United States from threats to our
national security by pursuing justice through law.
Matt Olsen is eminently qualified for this position, given his years
of service at the DOJ; as general counsel for the NSA; and a director
of the National Counterterrorism Center, or NCTC, in which capacity he
regularly briefed our Intelligence Committee. Matt is a consummate
intelligence professional and an effective leader of the highest
caliber and personal and professional integrity.
The NSD needs a confirmed leader in place. So I am urging my
colleagues to confirm Matt Olsen immediately.
Mr. President, I ask unanimous consent that the Senate proceed to the
consideration of the following nomination, Calendar No. 347, Matthew G.
Olsen, of Maryland, to be an Assistant Attorney General; that the
nomination be confirmed, the motion to reconsider be considered made
and laid upon the table with no intervening action or debate; that no
further motions be in order to the nomination; and that the President
be immediately notified of the Senate's action.
The PRESIDING OFFICER. Is there objection?
The Senator from Texas.
Mr. CORNYN. Mr. President, reserving the right to object, it is
ironic that I come to the floor to be with my friend, the chairman of
the Intelligence Committee, with whom I have proudly served and with
whom I have worked on many different projects within the intelligence
community and the jurisdiction of that committee. But this is one where
we clearly see things differently.
Mr. Olsen, for most of his career--and it has been a distinguished
career--has operated as a nonpartisan public servant. But as Senator
Grassley, ranking member on the Judiciary Committee, said at the time
he had his hearing there, once the previous administration took office,
it was like a switch got flipped and he turned into a partisan warrior.
Over the last few years, Mr. Olsen has made a series of serious
ultrapartisan statements. Prior to the 2016 election, he said that ISIS
supported Donald Trump for President. Following the election, he
claimed that the electoral college should be abolished because it is a
national security threat. He signed on to a number of letters
hysterically criticizing then-Attorney General Barr and the Justice
Department, and he failed to disclose these writings and other critical
information to the Judiciary Committee during the hearing on his
nomination.
I believe now, more than ever, it is absolutely critical that the
Justice Department and our intelligence community operate free from
political influence and bias. But I have no confidence that, if
confirmed, Mr. Olsen's partisan switch will get flipped back off. I
fear he will continue to pursue his political objectives from within
the Department, using the powerful tools of the Department of Justice
to pave the way for his partisan political agenda.
And lest anybody think these concerns are unprecedented or
groundless, let me just point out that we now have a former lawyer with
the FBI that has pled guilty for falsifying an application to the
Foreign Intelligence Surveillance Court in the process of investigating
an American citizen. He has now pled guilty and is now serving
probation, a lawyer with the FBI who erroneously communicated
information to the court with which they relied upon to issue a warrant
to surveil an American citizen, using the powers of the Foreign
Intelligence Surveillance Court.
And then, just this last week, another lawyer has been indicted by
Mr. Durham, the special counsel--somebody who has a distinguished
career as a former Federal prosecutor and has worked at a prominent
firm that typically represents the Democratic Party.
He now has been indicted for lying to the FBI, and it rises out of a
conversation he had with a general counsel at the FBI, suggesting that
there was some link between the Trump administration--or Trump
organization and a criminal-linked Russian lender called Alfa Bank.
[[Page S6577]]
The indictment says that Michael Sussmann lied about the capacity in
which he was providing this information to the FBI. But, in fact, what
he did is prepare white papers using confidential information obtained
from a technology client and fed that to the FBI while he claimed to be
just a good citizen wanting to pass this information along when he was
actually on the payroll of the Clinton campaign.
And, obviously, then talking to the press, leaking this narrative to
the press, this has, I think, contributed to this false narrative of
somehow that the Russians colluded with then-Candidate Trump in order
to win the election. There has been no evidence at all, whether if you
look at the inspector general report--Inspector General Horowitz--about
the now debunked Steele dossier, which supposedly was the basis upon
which the FBI opened their investigation.
So what we are talking about is people in positions of trust and
confidence in the U.S. Government abusing their power, lying to the
FBI, and lying to the Foreign Intelligence Surveillance Court in order
to pursue a partisan political objective.
Now, I have no idea what Mr. Olsen would do, but I don't think we can
take any risks, given the fact he has now turned into a partisan
warrior. We have got ample examples of people who, perhaps against
their better judgment, have thrown into this resistance attitude and
simply forgotten their professional responsibilities. And when it comes
to the intelligence community and national security, we don't need any
more partisan warriors in these positions of trust. These should be
nonpartisan professionals.
So I don't think Mr. Olsen has certainly satisfied me or many of my
other colleagues that he can flip that partisan warrior switch off. For
that reason, I object.
The PRESIDING OFFICER. Objection is heard.
Mr. WARNER. Mr. President, I just want to make a couple of quick
comments in response to my friend from Texas.
The PRESIDING OFFICER. The Senator from Virginia.
Mr. WARNER. We have worked on a number of--or continue to work on a
number of important items. But I think it is--various--he is citing a
couple of lawyers at the front end of the legal process that have
either been arrested or have not gone through the whole judicial
process yet.
I don't have the whole list in front of me, but I would be happy to
present for the record the list of individuals affiliated with the
Trump campaign who have been arrested and convicted and pled guilty
because of lying to the FBI or involvement with Russia. I think our
investigation, of which I am quite, quite proud--bipartisan,
successful--clearly showed Russian interference in the 2016 elections.
We have seen the results of the Mueller investigation. I can't recall
the exact number of convictions that arose out of that. And I agree
with my friend, the Senator from Texas, that we don't want--the last
thing I want is any more partisanship between the intelligence
community.
And that is why I just again want to cite for the record the
individuals--yes, Mr. Olsen joined a lot of intelligence professionals
in raising concerns about the way the previous administration ran the
intelligence community. Frankly, I think they ran it, in many ways,
disrespectful to the folks who worked in that community.
But, again, talking about Matt Olsen and his career, I have got a
letter here that has got literally hundreds of intelligence and DOJ
professionals who support Mr. Olsen. Let me just cite a couple of
them--all of them individuals, by the way, who have served Republican
Presidents: Michael Chertoff, as we all know, Assistant Attorney
General, also then subsequently head of DHS; Zach Terwilliger, U.S.
attorney for the Eastern District of Virginia, served under President
Trump; Kenneth Wainstein, U.S. attorney for the District of Columbia,
2004 to 2006, under President Bush; Charles Rosenberg, served under
President Bush in the Southern District and the Eastern District; Paul
McNulty, again, served under President Bush, Eastern District of
Virginia, U.S. attorney; Michael Mukasey, Attorney General under
President Bush; Jesse Liu, U.S. attorney under President Trump in the
District of Columbia. The list goes on and on.
Mr. DURBIN. Would the Senator yield for a question?
Mr. WARNER. All I am hoping is that we would get a chance to debate
Mr. Olsen's qualifications and bring it to the floor for a vote.
Instead, we have a whole clump of individuals who have been put on
hold, a process that 99.9 percent of Americans don't understand.
I think Mr. Olsen's career and his service to our country deserves a
free and fulsome debate. Those individuals who don't want to vote for
him, have at it. But we are not getting that opportunity because--and
it is not my friend from Texas. Let me be clear. He is not the person
who placed holds. That process is taking place, and, unfortunately, I
believe Mr. Olsen is not going to have his--not even his day in court
but his day on the floor of the Senate, which I think, with his service
to our country, he merits and deserves.
Mr. DURBIN. If the Senator would yield for a question?
Mr. WARNER. Of course.
Mr. DURBIN. As the chair of the Senate Judiciary Committee, we have
joint committee jurisdiction between the Intelligence and the Judiciary
Committee in dealing with this nomination.
This is an extraordinary individual. And I have to raise the most
basic question, and that is: At this moment in history, is this the
right moment to leave this spot vacant? To not have someone in
leadership, a gentleman whom you have noted has bipartisan support for
his intelligence credentials?
You mentioned quite a few names of those supporting him. A couple of
the names of those supporting him that you did not mention: former NSA
Director, GEN Keith Alexander; former Director of National
Intelligence, Mike McConnell; Senator Saxby Chambliss, our friend and
former colleague who served on the Intelligence Committee as a vice
chair--all in support of Mr. Olsen's nomination.
And I would say, at this moment in history, without going into any
graphic detail or classified information, but to have this kind of
vacancy in this spot, do you believe this has an impact on our security
as a nation?
Mr. WARNER. I would say to the chairman of the Judiciary Committee,
you know, we all reflected recently where we were 20 years ago on 9/11.
But one of the astounding things that came out of the report after 9/11
was that, at that moment, on 9/11 in 2001, 57 percent of the senior
officials in the intelligence community had not been confirmed. Those
positions weren't filled. The amazing thing is, 20 years later, 74
percent of those top positions are not filled. I think that is a
disservice to the memory of those who perished on 9/11, and I think it
is unfortunate, to say the least.
If Members have, in good faith, concerns with Mr. Olsen, let's debate
and have at it. But the idea of a large block of intelligence and law
enforcement professionals--and we need this position at the Justice
Department--sitting unfilled because of an individual Member, on an
issue not related to their qualifications, to put a blanket hold on a
series of this President's nominees does not make our Nation safer.
Mr. DURBIN. Thank you, sir.
Mr. CORNYN. Mr. President.
The PRESIDING OFFICER. The Senator from Texas.
Mr. CORNYN. Mr. President, what I was referring to earlier are
examples of abuse of power by people in the U.S. Government who are in
a position to do things to average citizens that, frankly, if they can
do them to powerful individuals like candidates for President or our
sitting officeholders, what is the little guy supposed to do?
If people are so blinded by their partisanship or their desire to get
somebody that they violate their oath, they violate the law, and abuse
power, what is the average man and woman supposed to do?
You know, it reminds me a little bit of the hearing that we had just
a couple of days ago in the Judiciary Committee, where this monster
named Larry Nassar, an Olympic physician for 18 years, systematically
and routinely sexually assaulted and abused young female Olympic
athletes.
And for years, these Olympic athletes tried to get the FBI to
investigate their allegations against Dr. Nassar.
[[Page S6578]]
And it took an extended period of time--I think it was a year and a
half--before the FBI actually undertook the investigation. But it took
a couple of our colleagues--people like Senator Blumenthal from
Connecticut, Senator Jerry Moran from Kansas--in order to stay on this
issue until, finally, this monster, Dr. Nassar, was charged with crimes
and convicted and now is going to serve in prison the rest of his life.
But it haunts me to think, if these elite Olympic athletes whose
names are known all around the world could not get the government to
respond to their assault and to do them justice, what chance do the
rest of us have? I am not worried about Members of Congress; I am
worried about my 29 million constituents.
And so the examples I gave of Mr. Clinesmith, who lied to the Foreign
Intelligence Surveillance Court in order to get a warrant to illegally
surveil an American citizen--that is an abuse of power that causes me
very grave concern.
And when I read the indictment of Michael Sussman lying to the FBI
about his connection to the Clinton campaign, while he compiled
information that was confidential, gave it to the FBI, claimed to just
be a good citizen and not representing any client, when in fact he was
on the payroll of the Clinton campaign, and he was systematically
leaking this information to the press to feed this narrative about
Russian collusion--which has obsessed Congress and the country for
years.
And now we know there is no factual basis for the allegations against
then-Candidate Trump or then later President Trump. The Russian
collusion narrative was not true, but it was fed by partisans who
abused their power in order to gain politically.
So I don't know Mr. Olsen that well. Like I said, I know he has had a
distinguished career. But something clearly snapped when he became a
partisan lawyer. And I simply do not have confidence that he will not
abuse his power in pursuit of his partisan aims.
There are better people that the President could nominate to serve in
this sensitive position, and I will not, in good conscience, agree to
simply allow somebody with this sort of track record to be confirmed.
And as my colleagues know, the majority leader has all the tools he
needs at his disposal to have a vote on the Senate floor on this
nomination. But it shouldn't be done by unanimous consent. It shouldn't
be done outside of the public attention because there are so many
things competing for people's attention. I think this is a debate and a
conversation we need to have about powerful public officials abusing
their power for partisan political gain.
What chance does the average American have if they will abuse that
power to go after powerful public figures like a candidate for
President or an incumbent President of the United States?
Mr. CORNYN. Mr. President, I would ask unanimous consent to complete
my remarks before the vote.
The PRESIDING OFFICER. Without objection, it is so ordered.
Energy
Mr. CORNYN. Mr. President, our friends across the aisle are moving
full steam ahead with what I think is fairly described as a reckless
tax-and-spending spree, which is chock-full of unnecessary,
unwarranted, and flatout unaffordable policies.
Remember that we had to spend a lot of money--borrowed money--during
the COVID crisis, which we did on a bipartisan basis because it was a
national--indeed, an international and global emergency.
But as we continue to get people vaccinated and put the pandemic in
the rearview mirror, our colleagues simply want to continue spending
money that we don't have to pursue their ideological and political
agenda, to grow the government, to intrude more in people's lives, and
to take more of what they earn rather than let them spend it as they
see fit.
Our colleagues want to impose crippling tax hikes on job creators at
a time when many of them are still digging out of the recession that
was part of the pandemic. They want to dole out permanent welfare
without requiring able-bodied men and women to work. They want to
discourage medical innovation through price fixing and implement a
range of items from their far-left wish list.
After charging nearly $2 trillion on the taxpayers' credit card
earlier this year, our Democratic colleagues are back at it for round
2. And this time, they are going all out. That is especially true when
it comes to the energy sector.
Over the past few years, we have seen no shortage of unrealistic and
downright harmful policies to reduce carbon emissions. Now, there is a
smart way to do it, and there is a self-defeating way to reduce
emissions. One is to reduce the use of coal and increase the use of
things like natural gas, which has much lower carbon content than coal.
And we are doing that, and we have reduced emissions as a result.
But our colleagues have proposed everything from the socialist
paradise that is the Green New Deal to more targeted but no more
realistic net zero emission bills.
This reckless tax-and-spending spree compiles the most outlandish
proposals into one of the greatest hits albums. The hallmark of this
legislation is a full range of tax increases on the fossil fuel
industry, which ultimately are passed along to consumers and contribute
to inflation and the increased costs that they have to pay in order to
fill up at the pump.
Whether we are talking about energy, agriculture, or any other
industry, higher taxes always mean higher prices for consumers. It is
inevitable.
Businesses can't just take the increases as a hit to their bottom
line. They might raise taxes, lay off employees, postpone expansion
plans, or implement all of the above, but that is exactly what this
proposal would spur when it comes to the energy sector.
It increases taxes already paid by energy companies on income earned
in the global marketplace and subjects energy employers to double
taxation of their foreign income. It also adds a brand new tax, the
Superfund excise tax, which was eliminated 25 years ago--all in pursuit
of more revenue to grow the size of the government.
Our friends across the aisle want to resurrect this tax and force
energy companies to pay more on every barrel of crude oil that is
sold. Once again, the ultimate burden won't be on those companies. It
will fall to consumers who are already struggling to keep up with
inflation.
Gasoline prices are up 42 percent over last year. Natural gas is up
21 percent. Families in Texas are paying more on everything from
electricity to groceries, to vehicles. This smorgasbord of higher taxes
will only drive up costs for working families and hurt the very job
creators we have been trying to help, over the last year and a half,
dig out from under COVID-19.
You have to wonder, if these policies are going to hurt working
Americans and the economy, who benefits? Well, for starters, our
geopolitical adversaries will benefit. The higher cost on domestic
crude would, once again, make the U.S. reliant on imports of oil and
gas from overseas, from countries like Russia, Saudi Arabia, Iran, and
Venezuela perhaps.
President Biden unintentionally demonstrated the hypocrisy of this
approach when he pushed, earlier this year, to beg OPEC, the
Organization of the Petroleum Exporting Countries, to increase
production overseas to bring down oil prices here in the United States.
In other words, he doesn't want American oil and gas producers to
produce oil and gas. He wants the Russians and the Saudis to do it to
help us bring down prices here in America.
It is just crazy. It makes no sense. If the President is worried
about affordable energy, he needs to quit pushing policies that will
drive up the cost for consumers at the pump.
Other big winners include wealthy electric vehicle drivers. The sort
of subsidies that are contained in this proposed package includes a tax
credit for electric vehicle purchases, even if these cars are made--you
guessed it--in China. And it is subsidizing--it is taking middle-income
taxpayers' money and giving it to people who are buying expensive cars
because they are incentivized by the tax credit. Meanwhile, we have 280
million cars on the road in America that still depend on oil and gas in
order to function because they have, yes, an internal combustion
engine.
On top of that, a bigger tax credit is given to electric cars built
in union shops. Now, why would you favor a political supporter like
organized labor?
[[Page S6579]]
Well, I think the answer may be pretty obvious. Maybe union-built
electric vehicles are more green than other electric vehicles or maybe
it is a favor doled out to a special interest group by my friends on
the other side, to a political constituency.
As a reminder, unlike gas-powered vehicle drivers, EV drivers don't
even pay anything for the highways that they drive their car on. They
don't pay into the highway trust fund, which comes out of the cost of a
gallon of gas, to help maintain our roads and bridges.
So our friends across the aisle just keep on coming with tax breaks
for the well-off and the well-to-do in a way that will burden hard-
working Texans and Americans.
I support efforts to reduce carbon emissions to preserve our air,
land, and water for future generations, but these efforts shouldn't
pick winners and losers, especially when wealthy Americans are reaping
the benefits at the cost of blue-collar workers.
Like the rest of the reckless tax-and-spending spree proposal, the
cost of this energy proposal far exceeds any benefit. It will drive up
costs for American families, hurt our global competitiveness,
ultimately hurt our allies that depend on exported LNG to provide
energy diversity, and it will empower our adversaries.
So there is no reason to stick taxpayers with the bill for these
unnecessary policies when there are better ways to keep costs for
consumers low while protecting our environment.
I yield the floor.
Ms. SMITH. Mr. President, I yield back our remaining time.
Vote on Motion to Discharge
The PRESIDING OFFICER (Mr. Peters). All time has expired.
The question is on agreeing to the motion.
Ms. SMITH. I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The clerk will call the roll.
The bill clerk called the roll.
Mr. DURBIN. I announce that the Senator from California (Mrs.
Feinstein) is necessarily absent.
Mr. THUNE. The following Senators are necessarily absent: the Senator
from North Carolina (Mr. Burr) and the Senator from South Dakota (Mr.
Rounds).
The result was announced--yeas 49, nays 48, as follows:
[Rollcall Vote No. 369 Ex.]
YEAS--49
Baldwin
Bennet
Blumenthal
Booker
Brown
Cantwell
Cardin
Carper
Casey
Coons
Cortez Masto
Duckworth
Durbin
Gillibrand
Hassan
Heinrich
Hickenlooper
Hirono
Kaine
Kelly
King
Klobuchar
Leahy
Lujan
Manchin
Markey
Menendez
Merkley
Murphy
Murray
Ossoff
Padilla
Peters
Reed
Rosen
Sanders
Schatz
Schumer
Shaheen
Sinema
Smith
Stabenow
Tester
Van Hollen
Warner
Warnock
Warren
Whitehouse
Wyden
NAYS--48
Barrasso
Blackburn
Blunt
Boozman
Braun
Capito
Cassidy
Collins
Cornyn
Cotton
Cramer
Crapo
Cruz
Daines
Ernst
Fischer
Graham
Grassley
Hagerty
Hawley
Hoeven
Hyde-Smith
Inhofe
Johnson
Kennedy
Lankford
Lee
Lummis
Marshall
McConnell
Moran
Murkowski
Paul
Portman
Risch
Romney
Rubio
Sasse
Scott (FL)
Scott (SC)
Shelby
Sullivan
Thune
Tillis
Toomey
Tuberville
Wicker
Young
NOT VOTING--3
Burr
Feinstein
Rounds
The PRESIDING OFFICER (Ms. Hassan). The motion to discharge is agreed
to, and the nomination is placed on the calendar.
The majority leader.
____________________