[Congressional Record (Bound Edition), Volume 158 (2012), Part 6]
[House]
[Pages 8009-8010]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      TAXATION IS SERIOUS BUSINESS

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Oregon (Mr. Blumenauer) for 5 minutes.

[[Page 8010]]


  Mr. BLUMENAUER. Mr. Speaker, taxation is serious business. How to pay 
for what America needs should be at the core of a thoughtful policy and 
political discussion. Unfortunately, going into a campaign ``silly 
season,'' it will be hard to have any thoughtful conversation.
  Here on Capitol Hill, we've been trapped in a twilight zone for 
years, making a reasonable discussion for revenue extraordinarily 
difficult, if not impossible.
  The simple fact is that we are an aging and growing Nation. Our tax 
collections in recent years have fallen due to a combination of the 
near economic collapse and the maddening slow economic recovery, which, 
together, with the series of tax cuts since 2001, have reduced total 
collections to levels not seen since Harry Truman was President. And 
they continue to lag.
  As important as it is to do business differently, to rein in and 
reform defense spending, our bloated agricultural programs, and health 
care, the tax system itself must be addressed. More revenues are 
required to meet our needs, service the debt, and avoid more borrowing.
  Most Americans understand this. While no one wants to pay higher 
taxes, the public understands and will support them, if done right: 
balanced, simple, and fair.
  The worst tax is a tax on our future, the result of unsustainable 
spending and debt, coupled with tax cuts for people who don't need or 
deserve them.
  The second worst tax is the complex mess we inflict on the public 
right now. The tax system has a compliance cost to taxpayers of over 
$160 billion a year for a system that is unfair and inefficient.
  Now, there are only a few tax choices we should examine and discuss 
before we start arguing about the ultimate solution. We can only tax 
work, wealth, consumption, user fees, investment.
  We can also tax what we don't like, the so-called sin taxes, like 
pollution or tobacco.
  And finally, there are royalties for what, if anything, we get back 
when we give away public wealth like oil, gas, gold, and other valuable 
minerals. This is not an insignificant source of revenue, going not to 
some faceless government, but for the public. This is too seldom 
discussed in the context of paying for services or reducing the debt.
  All seven have advantages and disadvantages, but we should be clear-
eyed about them, especially this year, when we will be considering 
before December 31, what the CBO says will cost $5.4 trillion to extend 
all the expiring tax provisions for the next 10 years. This would be a 
good place to start in reforming the tax system and collecting badly 
needed revenue.
  This should be done only after careful examination. Changes that we 
may want have to be done very carefully. They don't have to be done all 
at once or suddenly, because that can have unintended consequences.

                              {time}  1010

  There are some areas where we need to continue current policy. 
Something that should happen as soon as possible is to extend the 
production tax credit, which is one of those provisions due to expire 
at the end of the year. This modest subsidy has helped jump-start 
alternative energy, particularly for wind; and it could be a model on 
how to do it right for energy and economic growth. It doesn't have to 
be a permanent entitlement, but merely help the industry come to scale. 
But the threat that it won't be extended has already shut down new 
project development and has curtailed manufacturing in the United 
States. Bipartisan legislation could be passed next week 
overwhelmingly, and I hope it's something that we would consider.
  Some areas need bold action, like the alternative minimum tax. This 
has been perverted into a grossly unfair tax on millions of American 
families and threatens tens of millions more. It will never be imposed. 
We will do everything we can to blunt its full effects. It should just 
be eliminated outright as part of this end-of-the-year process. Other 
provisions, like carried interest, where billionaire hedge fund 
managers get wildly favorable tax treatment on unbelievable wealth, cry 
out for reform.
  Using the looming deadline to deal with the basics, we can phase in 
adjustments over the full 10-year period to be fair in transition, 
avoid dislocation and continue to nurture the still-fragile recovery; 
and if we start now, we will be able to make commitments, hopefully, 
that will be honored by both parties over the course of the next 
decade.
  Done right, we can meet the revenue requirements for what America 
needs, simplify the system, reduce unfairness and complexity, and 
reduce cheating so that it is fair and more efficient.

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