National Defense Authorization Act for Fiscal Year 2014

Floor Speech

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Mr. WYDEN. Mr. President, before he leaves the floor, I commend my colleague from New York for a very fine statement. He and I sit next to each other on the Finance Committee, and we are going to be working very closely together on these issues.

I have long felt that the best choice in terms of looking at these tax issues is comprehensive tax reform. The reality is the Tax Code in America is a dysfunctional mess. It is 100 years old at this point. I think it is pretty fair to say it looks its age every year.

When it comes to energy--and clearly a lot of Senators on both sides of the aisle have done a lot of work on this--my preference would be Congress would simplify the various energy provisions, replace the dozens of separate incentives for each energy technology with fewer technology-neutral, performance-based incentives that bring us to a more level playing field in the energy area--a more level playing field, and one where there would be certainty for those who are going to do the innovation--those in New Jersey, Oregon, and elsewhere, who have those kinds of breakthrough innovative ideas and who are telling us that they badly need to get off this roller coaster of extenders and have some real predictability for the important innovative work that needs to be done.

Those kinds of incentives should take into account important policy goals of domestic energy security and reducing this country's carbon footprint, while getting the Tax Code more out of the way and letting the free market decide which technologies break through and ultimately succeed. It is my view that what Chairman Baucus released yesterday--and he consulted with us extensively--certainly has some promising ideas in that regard.

With respect to where this debate is now, I think it is important to be clear about the challenge. It looks more and more like the other body has in effect decided to, if not slow walk tax reform, certainly take its time. Last month the news in Washington was full of headlines about various discussions among the House leaders. You got the sense--I will let them speak for themselves--on tax reform issues they apparently were going to take their foot off the gas. It does not seem the other body is poised to move forward any time soon on comprehensive tax reform. Because there is little indication the other body is going to move on this, my view is letting the incentives for the renewable energy resources--in particular solar and wind and other renewables and energy efficiency--in effect get thrown overboard, in effect sacrificed on this altar of inaction, would be a huge mistake. If we do that, we are talking about putting at risk thousands and thousands of American jobs in industries that are critical to our country's energy, environmental and economic security.

My view is that having these employers and having these innovative, cutting-edge technologies fall off the cliff would be a mistake. That is why it is critical Congress address and extend these key energy tax benefits as soon as possible.

Until the Congress takes the prudent step of broad-based reform of our tax system, the American people should not be left hanging. We ought to minimize the roller coaster of uncertainty that has been a drag on growth in recent years. Passing the Tax Extenders Act of 2013 and extending these important expiring provisions delivers a measure of confidence and continuity, and it builds a bridge between the current tax system and where all Members of Congress ought to hope we end up; that is, with a modern, progrowth Tax Code, worthy of the American economy and ready for the 21st century.

I have been interested in the subject for a number of years. I can briefly recount some of the history. Rahm Emanuel, now mayor of Chicago, and I introduced the first comprehensive reform effort when he was still in the other body. We were not even able to get a Republican to join us in that effort.

Then Senator Judd Gregg, our former colleague from New Hampshire who sat across from me on a sofa every week for 2 years--and I were able to come together with a tax reform proposal, much of which I continue to believe is valid. Then our current colleague Senator Dan Coats was willing to work with myself and Senator Begich and others and he made important contributions. We very much need to have a modern progrowth, pro-entrepreneurial Tax Code that is up to the challenges of the 21st century. That is my first choice.

That is not what is in front of us today. Clearly, when the House made the decision to pull back for various reasons, we were faced with the question of whether we were just going to sit by and, as a result of inaction, see these important renewable energy industries and the jobs they represent sacrificed. I hope the Congress, on a bipartisan basis, will say that is not acceptable and pass the Tax Extenders Act of 2013 on a bipartisan basis.

I yield the floor.

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