Tax Relief Act of 2005

TAX RELIEF ACT OF 2005 -- (Senate - November 18, 2005)

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Mrs. MURRAY. Mr. President, I rise to speak about the tax reconciliation bill before the Senate today.

Today, Americans are saddled with more than $8 trillion in national debt, an obligation being passed on to our children and grandchildren. And our Nation's expenditures--because of the War in Iraq, the global war on terrorism, Hurricane Katrina and other natural disasters, and countless other challenges our Nation is confronting are far outstripping our tax receipts.

The current administration has placed passing tax cuts for the few ahead of targeted tax cuts for the middle class and to grow business and has made us less able to address other important priorities, homeland security, paying for the war in Iraq, our nation's infrastructure, health care, and education.

I believe we need a tax system that is fiscally responsible, helps business grow, and provides maximum relief to the middle class. That is why I support tax policies that work to achieve those goals, and that is why I voted for the Conrad substitute amendment, which would have fully paid for the cost of targeted middle class tax relief.

Mr. President, I am deeply concerned about passing a $60 billion tax cut bill at a time when we are cutting Medicaid, food stamps, student loans, and other domestic programs that will spur economic growth and help all Americans. Just 2 weeks ago, the Senate Republican leadership brought a spending cut to the floor to cut $35 billion from areas like healthcare and education. The budget that passed this body contains the wrong priorities. It imposes painful cuts on working families, as I said at the time.

Mr. President, too many working families in American don't feel secure. They are worried about high gas prices and how they are going to heat their homes this winter. They are worried about how they will pay for their health insurance and their prescription drugs. And they are worried they won't be able to afford a home or college tuition for their children.

Given all this, why would the Congress pull the rug from under these working Americans at exactly the time they need our support? The answer is before us today to make room for more tax cuts. Now, some of the tax cuts contained in the tax reconciliation bill are certainly helpful. The research and development tax credit, the deduction of State and local sales tax, and the deduction for teacher's expenses are all important provisions and should be extended. I have voted for and cosponsored bills that extend or make permanent some of these provisions. In fact, I voted to extend these tax provisions and all those expiring at the end of the year when I voted for the Conrad substitute amendment. That amendment fully paid for the tax cut extensions and the Hurricane tax relief over 10 years and did not cost the Federal Treasury a dime.

I oppose cutting critical services to pass unbalanced tax cuts that primarily benefit the wealthy. The capital gains and dividend tax cut extensions, which primarily benefit those making more than $1 million, are not in the current version of this bill. But I know that when the tax reconciliation bill comes back from conference, it will have those provisions. We all heard Senate Majority Leader Frist when he said, and I quote ``I will not bring a conference report to the Senate floor that does not include this extension.''

So, Mr. President, we have a choice to make: will we invest in priorities like health care, education, transportation and job training that spur economic growth and keep families out of poverty, or will we continue to conduct business as usual and pass tax cuts in a fiscally irresponsible way? Based on the vote 2 weeks ago to cut $35 billion in critical help for Americans in the most need, it appears that the Republican-controlled Congress has chosen the latter.

I understand the importance of a responsible Federal budget. Our nation's annual deficit is more than $300 billion. Foreign owned debt has increased by more than 100 percent over the last 5 years, and we will soon be asked to increase the country's debt ceiling by another $781 billion. At a time when we are facing such tremendous spending pressures and an increasing deficit, I think it would be wise to heed the words of Federal Reserve Chairman Alan Greenspan, who said during testimony before the Budget Committee last year:

``If you are going to lower taxes, you should not be borrowing essentially the tax cut. That over the long run is not a stable fiscal situation.''

Unfortunately, the tax reconciliation bill before us will increase the deficit and borrow money to do so. The Senate was presented with the option to extend the tax provisions expiring at the end of this year and pass the hurricane tax relief in a fiscally responsible manner. Unfortunately, the sound Democratic alternative we offered failed on a party line vote.

Mr. President, these are very challenging times for our country and our people. Working families don't feel secure about their jobs, their health care, their pensions or their future. Many Americans are making tremendous sacrifices by serving in our military. We need to show that we are on their side. We need to help make America strong again. The way to do that is to invest in our people invest in their education, their job training, and their future. The Republican budget does just the opposite it cuts out those critical investments so that they can reduce taxes for a few at the top. Those are the wrong priorities. I believe America can do better, and America deserves better, and therefore I will vote against this misguided budget.

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