[Congressional Record (Bound Edition), Volume 156 (2010), Part 13]
[Senate]
[Page 17955]
[From the U.S. Government Publishing Office, www.gpo.gov]




              NEED FOR BIPARTISAN RESOLUTION OF TAX ISSUES

  Mr. BROWN of Massachusetts. Mr. President, I rise today to discuss 
the need for Congress to resolve an issue of importance to millions of 
Americans: specifically, the need for a bipartisan agreement on taxes.
  As the end of the year approaches, Americans face an extraordinary 
level of uncertainty regarding a number of tax issues: the 2001/2003 
tax cuts, including the tax rates on dividends and capital gains, the 
alternative minimum tax, the estate tax, and last but not least, the 
extension of many expiring tax provisions affecting individuals, 
businesses, nonprofit organizations and even members of the U.S. Armed 
Forces. During this lameduck session, Congress and the White House have 
an opportunity to work together to develop a package that addresses all 
of these.
  In my view, we should not be raising taxes on any business or 
individual during a fragile economic recovery. The private sector--this 
country's job creation engine--continues to struggle, lacking the 
required stability and confidence needed to expand and hire new 
workers. Individuals, in turn, have been significantly impacted, 
further inhibiting economic growth. Uncertainty is a major factor, and 
one way to reduce uncertainty is to lock down our tax policy for the 
next few years, giving taxpayers a clear sense of what to expect as we 
enter 2011.
  On the tax extenders, I bring to the Senate's attention a letter just 
sent to Congress today from over 1,200 organizations located around the 
country. These are businesses, nonprofit organizations, and 
organizations representing our men and women in uniform. It points out 
the crucial nature of the expiring provisions, and asks Congress to 
extend them before the end of the year. This is a remarkable letter. We 
often hear from the business community about the importance of tax 
extenders for job creation, but here we have not only the business 
community speaking up, but also affordable housing organizations, 
community development organizations, and the National Education 
Association and the National Science Teachers Association. The letter 
is signed by the Alliance to Save Energy and numerous renewable energy 
organizations. It includes the Association of the United States Navy 
and the Reserve Officer Association. It includes agricultural 
organizations and technology councils.
  In short, this is a statement from a breadth of organizations which 
do not often work together. I think we have to take this kind of letter 
very seriously and consider its message carefully. And its message is 
that these provisions are very important to millions of Americans, and 
that our failure to extend them could have a significant dampening 
effect on the economy. And I also want to be clear about something: 
this should be a ``clean'' extension of these policies--we shouldn't be 
raising taxes on other businesses at the same time and thereby blunting 
the impact of this important action for the economy.
  One of the best known of the extenders is the R&D tax credit. It 
actually expired at the end of 2009, so America's innovative 
companies--many of them with operations in Massachusetts--have been 
wondering all year if Congress is going to reinstate the most visible 
public policy that encourages new ideas and technologies in this 
country. This is an area where our commitment should not be in doubt.
  There are incentives for the production of domestic alternative 
energy sources and energy efficient products such as hybrid vehicles, 
energy efficient appliances, homes, and windows. Without these 
incentives, many producers will not be able to make these products. In 
fact, many have already discontinued operations in the absence of 
credits which expired at the end of 2009. The deductions for donations 
of funds, property, food, and equipment to charities is also hanging in 
the balance of this package.
  There is the deduction for State and local sales taxes. Think about 
individuals losing the ability to deduct State and local taxes from 
their Federal taxes. There is the deduction for teacher classroom 
expenses. Teachers spending their own money for their classrooms is 
more common than we like to think about, and the least we can do is 
allow them to deduct those expenses from their tax bill. There is the 
credit for employers who continue to pay employees while on active duty 
in the U.S. Armed Forces. This is an important support mechanism for 
our men and women in uniform, and we should ensure that it remains in 
place. These are just a few of the tax provisions which have expired or 
will soon expire. I invite my colleagues to review the Joint Tax 
Committee's list of the expiring provisions. It is crucial for Congress 
to act this year to extend as many of them as possible.
  Ultimately, I believe we need to reform our Tax Code to lower tax 
rates and broaden the base. I know Senators Baucus and Grassley have 
already begun that process with a Finance Committee hearing on tax 
reform earlier this year, and I salute them for starting that 
conversation. We look forward to working on such a package of reforms 
on a bipartisan basis in the 112th Congress, but for now, extending the 
expiring provisions should be a top priority for the remainder of this 
Congress.
  Mr. President, I ask unanimous consent to have printed in the Record 
the November 16 letter from over 1,200 organizations from around the 
country to which I referred.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                November 16, 2010.
       To the Members of the U.S. Congress: The undersigned 
     represent millions of individuals, businesses, organizations 
     and members of the U.S. Armed Forces. We urge Congress to 
     pass legislation in the lame duck session to extend critical 
     tax provisions that, while temporary in nature, are critical 
     to our economy. It is of the utmost importance to all of us, 
     and to the health of the U.S. economy, that this extension be 
     enacted before the end of the year and apply seamlessly, at 
     least through 2011.
       Expiration of many of these provisions has already caused 
     job losses, and the uncertainty around their extension will 
     lead to further dislocations just as the fragile economic 
     recovery is beginning. We all look forward to working with 
     you on this issue in the coming weeks.
           Sincerely,
       (Signed by over 1,200 organizations)

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