H.R. 4297, Tax Increase Prevention and Reconciliation Act of 2005

H.R. 4297, TAX INCREASE PREVENTION AND RECONCILIATION ACT OF 2005

Ms. MCCOLLUM of Minnesota. Mr. Speaker, I rise in strong opposition to the Republican's tax reconciliation bill. This legislation is a cynical tax giveaway for the wealthy paid for by slashing services critical to families and heaping debt on future generations.

H.R. 4297 includes $70 billion in tax breaks--primarily an extension of capital gains and dividend tax cuts. Almost half of that $70 billion will benefit those making over $1 million a year. In Minnesota, 68 percent of the benefit of this bill will go to only 2 percent of taxpayers. Those making $200,000 or more will see an average benefit of over $6,000, while those making under $75,000 will see a return of only $55 on average.

The Majority party has focused tax relief on a chosen few rather than providing tax relief for everyone. Even though tax cuts passed in 2001 and 2003 have already provided millionaires with an average tax cut of $109,000, Republicans have again chosen to prioritize further gains to those who need it the least at the expense of middle-class families. The alternative minimum tax, which is a critical problem facing middle-class families, is shortchanged by this proposal. This bill provides only a one-year extension instead of honestly dealing with this issue. In addition, because these tax cuts are partially paid for by cuts to student loans and health care, working men and women are paying twice in this Republican plan.

This bill also fails to address critical issues such as extending the research and development tax credit, the tax deduction for student loans, and the deduction of state and local taxes--provisions that make an enormous difference in the lives of families across the country. For example, the student loan tax deduction provides opportunities for more families to access higher education, resulting in better paying jobs, which fuels our economy.

Our national debt is nearly $9 trillion. In the last 5 years, President Bush has borrowed more than $1 trillion from foreign governments and financial institutions. It is clearly not the time to add billions of dollars to the debt in order to provide more wealth for those most fortunate. This is a fiscally and morally irresponsible plan and should be rejected.

Mr. Speaker, this bill does not reflect the priorities of Minnesota or American families. With our country facing a growing deficit, a stagnant job economy, and spiking gas prices, it is not the time for reckless spending through tax cuts. Democrats have offered an alternative that targets relief for families without adding to the debt burden facing our children and grandchildren.

I urge my colleagues to oppose this reckless bill and support economic policies that benefit families, increase our competitiveness, and reduce our national debt.

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