Fostering Undergraduate Talent By Unlocking Resources for Education Act

Floor Speech

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Ms. CANTWELL. Mr. President, I come to the floor today to talk about the importance of passing the expired tax credit provisions for many small businesses and industries that support families and help revitalize economic, depressed communities, and those that are underserved.

We all know that 2 years ago, the Republicans and President Trump enacted a $2 trillion tax break for large corporations, and there was a lot of lobbying here that went in to getting that legislation passed. Yet, when it comes to these provisions, which are just about tax certainty in the Tax Code that has been there for decades that really needs to be reauthorized, Congress is not getting the job done, and we need to come to terms now about why it is so important to help small businesses have tax certainty in the code, to help families and communities, and to get this provision done by December 31.

We all know how important it is that these individuals, green energy companies, economic development, and many other aspects of the Tax Code are being basically held hostage--since, I believe, 2017--by Congress's inattention to this issue. Our Tax Code is most effective when we have certainty, predictability, and when we have made decisions out of Congress that we think we do want to incent and motivate investment.

Renewables are a large source of private sector infrastructure investment, and the clean energy tax credits have allowed industry to scale and invest in technologies that have brought prices down in wind by 68 percent and solar prices by 88 percent. We have seen unbelievable growth in the energy sector because of our investments in the green energy tax credits.

Another example is the biodiesel tax credit that I worked on with Chairman Grassley for years. That particular tax credit and its uncertainty and Congress's failure to act and give predictability have led to more than 10 biodiesel plants being closed so far, and there could be many more closed if we fail to act before December 31.

This means a loss of jobs and a loss of production of fuel. It means the loss of economic benefit to regions, and it means an impact to soybean and other sectors that have been a part of this growing economy. We need to act before more plants close.

I am very concerned about a particular facility in Grays Harbor, WA. While it may employ only 37 people at this point in time, Grays Harbor is an important point in the Washington State economy, located on our coast, and has many great attributes positioned for the future of trade. Not only do I want to see biodiesel grow, I want to see biodiesel exports grow. I think it is shortsighted that Congress can't get its act together to give people predictability and certainty about the Tax Code.

Let's talk about some other examples that are not just about clean energy--for example, the medical expense deduction. These deductions give taxpayers certainty on deductions for high out-of-pocket medical costs, and these are things that allow people to deduct qualified expenses that exceed 7\1/2\ percent of their gross income through 2018. This year, the threshold increased to 10 percent of adjusted gross income. If we are not going to give people certainty, it is going to be more dollars out of their pockets.

Another example is the mortgage debt forgiveness. When you lose your home, you should not have to pay taxes on your mortgage debt. That is what is going to happen if we don't give people certainty in the Tax Code. Without this provision, if your house is foreclosed on and the remaining debt forgiveness is in bankruptcy, the amount you would have to pay is the same amount you would have to owe instead of being forgiven.

So, to me, that inability to not have that mortgage debt deduction-- it is just wrong that Congress can't get its act together. If you are going to get your act together and pass a major bill for corporations, you should at least give small businesses and individual taxpayers the certainty they deserve in the Tax Code.

These provisions have been in the Tax Code for a long, long time. This is not like a surprise. It is not as if we haven't done this before. But instead of taking care of today's Tax Code before December 31, people are off making grandiose discussions.

I get it that some people on this side of the aisle would like to change and make corrections to the Tax Code, and other people on our side of the aisle would like to make a $100 billion investment in child tax credit. Look, I am appreciative of that discussion, but quit waging that battle, and do our day job, and take the Tax Code and the expiring provisions, and give taxpayers certainty by the 31st of this month.

Another example is that the expired provisions would help address the high cost of higher education by allowing students and families to deduct up to $4,000 for tuition and other high education costs. With total student loan debt of $1.5 trillion and average student debt of over $31,000, provisions like these on deductibility are very important.

On employment and economic development, nearly 26 percent of the provisions that are expiring are related to incentivizing employment investment in lower income communities.

The new markets tax credit. There is probably not a Member in the Senate who has not had a jurisdiction in their State use the new markets tax credit as one of the most effective economic development and community tools. This credit encourages private investments in low- income communities. Since the program was enacted in 2000, the new markets tax credit has delivered over $95 billion in project financing to more than 6,000 projects and created over 1 million jobs.

Why can't we have certainty on the new markets tax credit by December 31 of this year? There is no reason.

The new markets tax credits expire, and where are we going to be on building affordable housing, healthcare facilities, community clinics, research and technology incubators, and mixed-use commercial programs? I see no reason why we can't get this job done. I have been working with Senators Cardin and Blunt on a bill that would make this program permanent, and, hopefully, we wouldn't have to go through this routine every year.

But take another example. The work opportunity tax credit has been an incredibly effective tool in helping individuals, including veterans, to find gainful employment. The work opportunity tax credit provides up to $2,400 for hiring a certified person, including veterans and people receiving SNAP and TANF benefits. We know this program works. In my State, for each person certified to receive the tax credit, there is a net savings of $17,700 in Federal subsidies. Where is the voice for people who say: Let's give a tax credit and put people to work and actually reduce Federal subsidies? Oh, we are letting it expire again and giving uncertainty in the Tax Code.

Why? I am not sure because people are too busy posturing in a big debate instead of getting our basic tax extender homework done. Let's not continue to fail. Let's get out here and give these work opportunity tax credits the predictability people would like to see. In 2013, Washington had over 26,000 individuals certified with the tax credit, helping them find employment, and that represented a total of $42 million in savings.

All of these issues I am talking about--investments in our communities, investments in tax credits that give businesses certainties so that they can continue to drive down costs, investments in low-income communities, investments to help retrain and get people off the subsidies--why can't we get this done? I hope that people will understand that these small businesses and these families don't have people running through the halls to lobby for them as they did on the big corporate tax break, but I guarantee you, they deserve the tax certainty. They deserve the predictability.

Yes, we can continue to debate the last big tax bill all through 2020. I guarantee you that we will spend a lot of time talking about it, and each side can raise their voice and wage their battle. But do not fail to get this basic job done that we keep failing to do-- literally, not giving these businesses and individuals certainty, I think, since 2017. People keep thinking you are going to make it retroactive for 3 years. No, stop. Get this job done and give the certainty to small businesses and underserved communities that they deserve. Help them to succeed just like you helped big corporations.

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