Transcripts For CSPAN U.S. House Of Representatives U.S. Hou

Transcripts For CSPAN U.S. House Of Representatives U.S. House Of Representatives 20240713

Thompson, seek recognition . Mr. Thompson madam speaker, pursuant to House Resolution, i for up h. R. 5377 and ask its immediate consideration in the house. The peaker pro tempore clerk will report the bill the title of the bill. The clerk Union Calendar number 275, h. R. 5377, a bill to amend revenue code of 1986 to modify the deduction of and local taxes and for other purposes. The speaker pro tempore pursuant to House Resolution in the naturement of a substitute recommended by the committee on ways and means in the bill is adopted and bill, as amended, is read. Ered as the bill shall be debatable for ne hour equally divided and controlled by the chair and ranking minority member of the means. Ee on ways and the gentleman from california, r. Thompson, and the gentleman from nebraska from texas, mr. Rady, each will control 30 minutes. The chair recognizes the gentleman from california, mr. Thompson. Mr. Thompson thank you, madam speaker. I ask unanimous consent that all members may have five legislative days to revise and and to heir remarks their remarks and any other material on this bill into the record. The speaker pro tempore without objection. Madam speaker, i yield myself such time as i may consume. The speaker pro tempore the gentleman is recognized. Mr. Thompson madam speaker, i rise in strong support of h. R. 5377, the restoring tax fairness for states and localities act. This bill would temporarily repeal the salt cap in order to restore fairness in our tax code and provide Congress Time to develop more comprehensive tax reform. The current cap on the state and local Tax Deduction reflects the sloppy and cynical nature of the 2017 republican tax bill. This bill was hastily rammed through congress in just 51 days without a hearing, without an opportunity to hear from state and local governments, and without an opportunity to hear from teachers or First Responders. Republicans decided from the beginning from behind closed doors to include a cap on salt deductions in order to help finance their tax cuts for corporations and the rich. In my home state, california, verage salt deductions are 0,448. A total of 6. 5 million california families or 35. 6 of tax filers claimed the deduction in 2017. The double taxation of earnings people have already paid in state and local taxes inhibits state and local governments ability to fund even the most vital of programs, including Emergency Services and public education. H. R. 5377 fixes this problem by restoring the longstanding tax precedent that protects state and local governments ability to raise revenue to fund these services. And this fix doesnt add a single dime to the deficit. Furthermore, this bill provides tax relief to the middle class Public Servants left behind by the republican tax bill by doubling the outofpocket deduction for teachers, classroom expenses, and creating a new deduction for expenses for First Responders. Teachers in 90 california claimed the educator expense deduction. And they will all get double under this bill. The shortsightedness of the salt cap had further consequences for middle class taxpayers in high tax states. Capping the salt deduction diminished the incentives for middle class taxpayers to claim tax benefits that encouraged Home Ownership and charitable deductions. By limiting the salt deduction and raising the standard deduction, fewer middle class taxpayers benefit from taking the mortgage Interest Deduction and Charitable Giving deductions. Home ownership is an important way for middle class families to build wealth. Eliminating incentives for Charitable Giving undermines local charities that rely on donations from middle class members of their communities. I think my colleagues from both sides of the aisle can agree that these are the types of behavior we should be encouraging through our tax code. This bill reverses the republicans actions to undercut these middle class benefits to finance tax cuts for the wealthiest americans. Finally, this bill isnt about cutting taxes for high earners. This bill is about tax fairness. Ensuring that taxpayers are not double taxed by being required to pay federal income tax on earnings they pay in state and local taxes. And appeals to the core tenets of our federalist system. In the spirit of tax fairness, this bill is responsibly offset by restoring the top marginal rate back to 39. 6 for the highest income bracket. I reserve the balance of my time. The speaker pro tempore the gentleman reserves. I would like to remind members to take their conversations off the floor. The gentleman from texas is recognized. Mr. Brady thank you, madam speaker. I yield myself such time as i may consume. The speaker pro tempore the gentleman is recognized. Mr. Brady this bill is a tax cut for the wealthy and a green light for state and local politicians to raise taxes on local families even higher. The center for American Progress and center for budget policy priorities are two liberal organizations. I dont againly agree with. Today i have generally agree w today i say i do. The center for progress made it plain repealing the salt cap shouldnt be a high priority. In fact that this is overwhelmingly a tax cut for the rich. The center on budget and policy priorities agrees they have said repealing the salt cap what democrats are proposing to do today is regressive and overwhelmingly benefits high income households. They go further. And say this is little help to the middle class. Its a sad day when its obvious to everyone but democrats they are championing a huge tax cut for millionaires and billionaires while the middle class in america gets zip. Today we debate their insistence on hiking taxes on main street businesses across america to pay for their massive tax windfall for the wealthy 1 . You think your local property taxes are high now . This legislation is a starter pistol for a new race among state and local leaders. Who of them will be first to raise property taxes, sales taxes, and income taxes even higher . On working families and local businesss . Hese local taxes are, frankly, brutal. According to the liberal tax center, only 1 of taxpayers in america paid more axes last year due to the reasonable salt cap. 1 . In california, only 2 . In new york, a mere 3 . The rest of taxpayers in america either received a tax cut or they broke even. Republicans the tax cuts and jobs act lowered taxes on income across the board. Doubled the child Tax Deduction and expanded it to far more families and doubled the tandard deduction so more can keep what they earn and. Important this was because more and more families, including in high tax states, in high tax states, found the a. M. T. Canceled out and salt itable deductions completely. Another myth thats been that it hurts states budgets. Any enjoyed a windfall and revenue, an average of 6 with stronger economies, more workers expanded tax base. Said lifornia governor capping salt would lower revenues for california. Brought a is state whooping 3 billion more in personal income taxes than he predicted. All thehe same story in high tax states, including new jersey. Question is what did these states do with their windfall . Did they pocket these extra dollars or did they pass them their families and local businesses by reducingity taxes . Ocal taxes . Ce state and local states like new jersey actually their state and local taxes while new york, illinois, and massachusetts are debating higher salt taxes. So if governors, legislators, keep raising local raises with a salt cap, imagine how without ll raise them one. There is to be price to be state and local taxes. In truth, these are terrific dynamic economies and really good people, but to moneywise. Com, the four states americans are are new rom the most jersey, new york, connecticut, and illinois. Millennials, young people are the same, but you can add california to that list. Hese young people love their states with good reason, but they just cant see a future high taxes and impossiblily high costs. In the end, though, why should impossiblily high costs. Why should though, low tax states pay for high tax states . A farmer subsidize a banker in manhattan . Should a person that doesnt itemize their taxes subsidize the billionaire in the penthouse who does . Why should lebron james, an athlete, legendary, really, of the lakers, hell an estimated 2. 4 million tax break next year democrats bill . But the janitor and beer vendor n staple center, they get nothing. Gerrit cole, a former astro, is oing to the yankees as their new ace, hell get an estimated 850,000 next year. That parking lot attendant at Yankee Stadium gets nothing. This bill does. Because more than half of the alt deduction goes to millionaire and billionaire households. House is not the in order. The speaker pro tempore the gentleman is correct. Order. Se is not in please take your conversations off the floor. The gentleman is recognized. Mr. Brady thank you. The salt cap of 10,000 is National Average of salt deductions and because of republican lawmakers in high ax states who weighed in aggressively during tax reform, it can be used for property, sales, or income taxes. N the a. M. T. , with which is worth up to 10,000 in tax breaks, was eliminated. Thanks to progrowth tax reform, u. S. Economys roared into gear, the lowest unemployment in half a century, paychecks in more than test outpacing ob growth inflation. American manufacturing is back. We have a million more job workers. And america is once again the land of opportunity. Salt g a cap on the isuction for middle class a crucial component of achieving this economic victories for merican workers and their families. That old broken regressive salt no break for the wealthy has place in a fair modern tax code, positive growth in america since its removal is a clear demonstration of that fact. Thing we hear eliminating the salt deduction is a double taxation and the courts, nal, tax policy experts have debunked myths. And we hear about moocher states. The only moochers are the state local politicians who think its their money and mooching off the backs of hardworking Small Businesses in high tax states. I know. Y democrat colleagues are sincere in this effort, i know. But with this bill, you have the mantle laimed party of the rich. I strongly urge all my colleagues to vote no on this and, again, i offer this republicans are committed to orking with democrats to make our tax code even more competitive, to make our economy stronger, and to never stop working to help the little guy and giving e class tax breaks to billionaires, encouraging states to raise not thexes even more is way to do it. I reserve the balance of my time. The speaker pro tempore the reserves. The gentleman from california is recognized. Mr. Thompson thank you. Out that t to point the irony of my friends my friend from texass testimony shouldnt be lost by any of us. The republicans that created this problem with their tax bill. Did a tax bill that benefited corporations and the people in the country. And then to say that somehow regular folksting is really laughable. In the tax cut cost us debt 2. 3 trillion. The ld one minute to gentlewoman from new jersey, sherrill. Man ms. Sherrill i thank my colleague, the gentleman from california. I rise today to defend the taxpayers of our country. People who believe in a Strong America with Great Schools and great infrastructure. Madam chair, i launched 12 days of salt last week to urge this 2016 tax ift the bills 10,000 cap on state and deduction. Today is the 11th day of salt. I have been on the floor for 11 talk about this. This is an issue of tax fairness with people investing in their and in ies, in schools infrastructure. Only to face double taxation as he federal government punishes these efforts. The 2016 tax bill was an attack taxpayers. Ey new jersey already sends more money to washington and gets nearly every state in the country. Our bill will put money back in of our residents and communities and not just in new jersey. His bill provides relief for 13. 1 million americans. It also doubles the deduction teachers outofpocket expenses and creates a new deduction for First Responders workrelated costs. I ask my colleagues to support tax relief, to support our First Responders and pass this bill. Thank you and i yield back. The speaker pro tempore the yields. Dy the gentleman reserves, and the entleman from texas is recognized. Mr. Brady thank you, madam speaker. Im proud to yield the balance of my time to the republican tax policy e subcommittee, the gentleman from nebraska, and i ask unanimous that he be allowed to control that time. The speaker pro tempore without objection, the gentleman is recognized. Thank you, madam speaker. I yield myself such time as i may consume. The speaker pro tempore the gentleman is recognized. Admit, i am amust bit puzzled why we are here for this bill. Our work in the house is almost done for the year. Weve funded the federal government and extended expiring programs like flood insurance. About to well i guess we are about to pass the usmca with a record vote. Democratic colleagues can go ome and celebrate theat they voted to make history to impeach the president. But apparently before we go home we also need to give ebenezer scrooge a tax cut. Before we get into the problems with todays bill, we should positives of the tax cuts and jobs act which this bill seeks to undermine. And jobs act lowered tax rates for all americans and increased the child tax credit. The standard deduction from 6,000 for individuals and 12,000 for couples to 12,000 for individuals and 24,000 for couples. Help ensure federal tax policy doesnt reward states and cities for raising their taxes high, we instituted a 10,000 very thoughtful cap on deductions cal tax to ensure americans in low tax unfair sharepay an of federal taxes. Thanks to the combination of lower rates, larger child tax higher standard deduction under tcja, for xample, a single mom with two kids doesnt pay a penny of ederal income tax until her income exceeds 53,000. In other words, we ensure that income nt owe federal tax until her income exceeds not an hour but 25 per hour. For americans who do pay income higher standard deduction 29 million means 29 million more their lds could simplify taxes. Hat are the democrats doing today . Not ensuring our tax code is quitable, but passing a temporary emphasis temporary helps those h 12,000 to 1 million paid for by permanently small ing taxes on businesses. Let me say that again. If you make between 0 and not givethis bill does you tax relief or a tax cut. If you make between 75,000 and 200,000, there is a small chance you could get a small tax cut. Perou make between 200,000 year and 1 million per year, you have the best chance of cut. Ng a tax madam speaker, we should continue working together to find ways to improve the tax all americans. This bill makes the code both more complex and less and i reserve the balance of my time. The speaker pro tempore the gentleman reserves. Is gentleman from california recognized. Mr. Thompson madam speaker, id like to yield one minute to york, a eman from new great Public Servant and someone whos partnered with us on a issues, important peter king. The speaker pro tempore the gentleman is recognized. Thank the gentleman for yielding. Madam speaker, i stand in strong support of this legislation. Commend my colleague, congressman suozzi, for introducing it. Disappointed in my republican colleagues. Here you are raising a class warfare argument. Like the progressive left. One of the reasons why cities like new york and counties like suffolk had to raise their property taxes is because for 50 years weve been states. Ing u. S. 70 , 80 of the money we pay the comes back toment us. The rest goes to your states. All those years where you have been able to develop using our money, we had to raise local taxes. And now youre turning into warfare. You talk about millionaires. The people in my district are millionaires. Theyre cops, firefighters, construction workers. The people that answered the call on 9 11. Youre doing is undermining the middle class. Whats middle class in your state is different than mine. Reason we are high is because of the fact we had to subsidize all the rest of you for all these years. When politicians come to new york to raise their money and go back home and vote against us. Strongest that the advocate for this when this was and leading in 1986 to the defeat of the attempt to take away salt was donald trump. It would hurt id the states that work the hardest will get hurt the most because of this. Just say, and ill end on this. That we have subsidized long enough. Fairness. Ng for it is wrong for conservatives to be talking about having a tax on a tax. Yield back the balance of my time. I urge passage of this bill. Ave some equity in the tax code. The speaker pro tempore the gentleman from california reserves. The gentleman is recognized. Mr. Brady i have a sear a series of have statements in opposition from americans for tax reform, prosperity, National Taxpayers union and heritage action. Ask unanimous d consent that these documents be submitted for the record. The speaker pro tempore without objection. Mr. Smith madam speaker, i now yield six minutes to the gentleman from South Carolina, r. Rice, an expert on tax policy. The speaker pro tempore the gentleman is recognized. Mr. Rice madam speaker, today i strong opposition to this partisan bill that would ive millionaires and billionaires a tax cut and do nothing to help the middle class. Cuts and jobs act brought prosperity throughout people of and to every demographic and every income level. Is at 50year lows. Alltime lows for hispanics. Ricans and American Economic growth remains world. Y of the after years of stagnation under the obama administration, are growing wages at rates not seen in over a decade. Restored inhas been this land of opportunity. How did the tax cuts and jobs act accomplish this . Primarily it cut tax rates for businesses to make them more competitive in the world, especially Small Businesses that employ 2 3 of American Workers. 10,0007 eliminates the cap of deductibility object state on state and local ta

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