[Congressional Record (Bound Edition), Volume 163 (2017), Part 4]
[Senate]
[Pages 5153-5154]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        ISSUES BEFORE THE SENATE

  Mr. HATCH. Mr. President, as we approach the end of another week in 
the Senate with a 2-week recess on the horizon, I think it is a good 
time to reflect on where we are on various high-profile efforts and to 
talk about the pathways forward.
  As is generally the case when any new administration comes into 
office, the Republican majorities in both the House and Senate began 
2017 with an ambitious agenda in order to make good on the promises we 
have made to the American people over the last several years. Many of 
the key items on the agenda fall squarely in the jurisdiction of the 
Senate Finance Committee, which I chair. That being the case, my 
colleagues on the committee and I have been hard at work, trying to 
find the right solutions on things like healthcare, tax reform, and 
trade policy.
  I don't think I am going to surprise anyone when I say it hasn't been 
easy. Honestly, I think that might be the biggest understatement of the 
year.
  Things have been difficult for a number of reasons. One reason is 
that we are coming off of a bitter election year, one that shocked a 
number of our colleagues. After a hotly contested campaign, it can 
sometimes take a while for things to return to normal. However, I don't 
think that excuses the tactics and rhetoric we have seen from our 
friends on the other side of the aisle.
  In any of these big-ticket policy efforts, whether we are talking 
about repealing and replacing ObamaCare, fixing the Tax Code, or 
updating America's trade policy, cooperation between the legislative 
and the executive branches is key. My Democratic colleagues know this, 
which, I suppose, is probably the reason they appeared to be bound and 
determined to prevent any meaningful cooperation from happening.
  Now don't get me wrong; I don't expect my friends to change their 
views and back policies that they find disagreeable. However, you would 
think, at the very least, that they would allow the new President to 
get his team in place, a courtesy that has typically been extended to 
past Presidents, regardless of party. Yet over the last few months, we 
have seen a systematic effort from our Democratic colleagues to smear, 
attack, and undermine the vast majority of executive branch nominees. 
In many cases, after the baseless attacks have failed to gain traction, 
they have used every procedural tool at their disposal, including 
surprise boycotts of committee markups, in order to slow down the 
confirmation process.
  This level of obstruction with regard to nominees is unprecedented. 
And I think it is safe to say that it has slowed our efforts down 
somewhat, which, I suppose, is the exact reason our colleagues have 
taken this path. Still, despite these childish tactics, the teams are 
coming together, and we are moving forward in a number of key areas. As 
I said, it still hasn't been easy, but to paraphrase a number of 
important figures, nothing worth doing is ever easy.
  For example, on healthcare, I think it is safe to say that the 
ongoing effort to repeal and replace ObamaCare took a hit last week, 
but I don't think that

[[Page 5154]]

has weakened anyone's resolve. ObamaCare is a disaster, and one way or 
another, it has to go away. The American people are demanding that we 
take action, and I expect that the volume of those demands is only 
going to go up.
  I commend Speaker Ryan for his efforts thus far, and I commend all my 
colleagues in the House and Senate for their commitment to repealing 
and replacing the so-called Affordable Care Act. I remain hopeful that 
in the near future we can find a workable path forward, and that 
includes my Democratic colleagues as well.
  On tax reform we have some indications that the Trump administration 
intends to be more actively engaged in finding and developing a path 
forward. I have said for years that if we are going to be successful in 
tax reform--a goal shared by Members of both parties--it is going to 
take Presidential leadership and cooperation by both parties. While 
President Obama was generally unwilling to meaningfully engage on tax 
reform, President Trump and his team appear to be anxious to drive the 
process, and I welcome that.
  As with healthcare reform, there are some differences of opinion with 
regard to tax reform. Still, I think there is a remarkable amount of 
agreement, at least among Republicans, on the major issues we need to 
deal with to fix our broken Tax Code.
  Overall, I would say that the Republicans in the Senate, the House, 
and the White House agree on about 80 percent of the major tax reform 
issues, and a number of key and fundamental questions are answered in 
that 80 percent. For example, we all generally agree on the need for 
comprehensive reform. We agree on the need to bring down tax rates for 
businesses and job creators. We agree that we need a simplified rate 
structure on the individual side. We agree on the need to fix the 
international tax rules to level the playing field for American 
companies and encourage more investment in the United States, and we 
generally agree on key process issues, including the appropriate 
revenue baselines and the use of macroeconomic analysis in budget 
scoring.
  Still, that 20 percent of issues where we don't necessarily agree is 
not insignificant. We will need to find a consensus path forward on 
those issues as well. One area where we have yet to reach a consensus--
and the one getting the most attention--is on the proposed border 
adjustment tax. People have a number of opinions about this, and I have 
had numerous people in my office on both sides of the issue. As I said, 
there are a number of opinions on this proposal, and they have been 
more than willing to express them publicly. As for myself, I am anxious 
to see what it looks like once our friends in the House put it all 
together.
  It is too early for me to express a definitive position now. So at 
this point, all I will say is that I have some basic questions about 
the proposal.
  For example, who will ultimately bear the tax? To what extent will it 
be borne by consumers, workers, shareholders, and, of course, 
foreigners?
  Another question: Is the proposal consistent with our international 
trade obligations?
  Finally, since border adjustability will likely be a significant 
shift in business tax policy, would it require us to make adjustments 
to ensure that we don't unduly increase the tax burden on specific 
industries? If so, what adjustments would be necessary, and how would 
they be structured?
  I look forward to receiving more details on this proposal. However, 
here in the Senate, we also have some work to do, and I have been 
actively working with the members of the Finance Committee to find 
various solutions to our Nation's tax problems.
  At the end of the day, I don't think it will surprise anyone to hear 
me say that I believe we are going to need to have a robust and 
substantive tax reform process in the Senate. In my view, it is not 
realistic to think that the Senate will simply take up and pass a House 
bill without our Members having a significant input on the substance of 
the bill. That is how the Congress is supposed to operate, and I think 
that is what will produce the best result in the end.
  I look forward to continuing to work with my colleagues in the House 
on tax reform. I also appreciate the willingness of the new Treasury 
Secretary and the President's National Economic Council to lead on this 
effort, and I look forward to continuing to work with them as well.
  I will also say this: My hope is that both parties can find a way to 
work together on tax reform. While we have procedural tools at our 
disposal to get tax reform legislation through Congress with strictly 
Republican votes, I personally believe that it would be better to find 
a bipartisan path forward. A bipartisan bill would allow us to put in 
place more lasting reforms and give the overall effort additional 
credibility.
  I am sure there are some who think it is impossible for Republicans 
and Democrats to work together on something of this magnitude, but I 
have been in the Senate for a long time, and I think my record for 
bipartisanship speaks for itself. I believe we can and should work 
together, and I am willing to talk and work with anyone who is willing 
to set politics aside and engage in good faith on these matters.
  I have been banging a drum on tax reform for 6 years now, and 
throughout that time, I have invited my Democratic colleagues to join 
in this effort. I will do so again today. Hopefully, some of our 
colleagues on the other side will take me up on this offer.
  Finally, I want to say a few words about U.S. trade policy. Trade is 
another area in which President Trump has some ambitious plans and in 
which, up to now, progress has been hindered. Before I delve into that, 
let me reiterate a key point.
  In 2015, Congress outlined its trade priorities with our legislation 
to renew the trade promotion authority, which was signed into law by 
President Obama. The TPA statute gives clear guidance as to what a 
trade agreement should look like if it is going to win Congress's 
approval.
  President Trump was fortunate to come into office with TPA already in 
effect, and I am committed to working with him to enact trade 
agreements that meet those standards established by the TPA law. When 
it comes to new trade agreements or revisions to modernize existing 
trade agreements, that is my top priority as chairman of the Senate 
committee with jurisdiction over trade policy. Our trade laws are 
designed to give Congress a voice in both the negotiation and 
implementation of trade agreements.
  In addition to priorities and objectives outlined under TPA, there is 
the Office of the U.S. Trade Representative, which is intended to be 
the chief intermediary between Congress and, of course, the 
administration on trade policy matters. In other words, in order for 
the two branches to effectively work together on trade, the Office of 
the USTR needs to be fully functional and fully staffed.
  Unfortunately, up to now, some on the other side have been making 
unreasonable and wholly unrelated demands in relation to the 
confirmation of President Trump's nominee to be USTR even though he has 
support from Members of both parties. This is unfortunate. However, I 
am working with my colleagues to remove any remaining roadblocks, and I 
am hoping we can make progress on this very soon.
  As one can see, we have quite a bit of work to do here in Congress, 
and I am only talking about a handful of the major issues before us. I 
am very concerned. There are, of course, many other priorities we need 
to address and matters we need to resolve. I am hoping that in the 
coming weeks and months, as we put more distance between us and the 
2016 election, more of our colleagues on both sides will be amenable to 
working together to address these kinds of issues even if it means 
allowing President Trump to claim some successes.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Minnesota.

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