S2930 CONGRESSIONAL RECORD — SENATE May 13, 2014 We want a code that promotes eco- families pay more for college or why Heller McConnell Schatz Hirono Menendez Schumer nomic growth and treats everyone fair- homeowners face a huge tax bill after Hoeven Merkley Scott ly. A lot of Members have worked hard getting out from under a mountain of Inhofe Mikulski Sessions to develop ideas, but the reality is tax debt. Simply dropping those tax incen- Isakson Moran Shaheen reform is not happening tomorrow. tives sacrifices valuable priorities Johanns Murkowski Shelby Johnson (SD) Murphy Stabenow Reaching a comprehensive, bipartisan without getting the real job of com- Johnson (WI) Murray Tester plan is going to take time, focus, and prehensive reform done. Let us pass the Kaine Nelson Thune hard work. EXPIRE Act and let us move on to ur- King Paul Toomey I know something about that because Kirk Portman Udall (CO) gently needed bipartisan comprehen- Klobuchar Pryor Udall (NM) I have put as much sweat equity into sive tax reform. Landrieu Reed Vitter bipartisan tax reform as any Member With that, I yield the floor. Leahy Reid Walsh of this body, starting with our former Levin Risch Warner colleague Senator Gregg. We sat next f Manchin Roberts Warren Markey Rockefeller Whitehouse to each other on a sofa every week for CLOTURE MOTION McCain Rubio Wicker 2 years to write the first bipartisan McCaskill Sanders Wyden The PRESIDING OFFICER (Mr. Federal income tax reform plan in 30 NAYS—3 OATS SCHATZ). Pursuant to rule XXII, the years. Senator C has joined Sen- Coburn Flake Lee ator BEGICH and I in this effort and we Chair lays before the Senate the pend- are not alone. Chairman CAMP has put ing cloture motion, which the clerk NOT VOTING—1 forward an ambitious tax reform draft will state. Boozman that lays out several ideas as well on The assistant legislative clerk read The PRESIDING OFFICER. On this how to make the Tax Code simpler. All as follows: vote the yeas are 96, the nays are 3. of these proposals contain the kinds of CLOTURE MOTION Three-fifths of the Senators duly cho- ideas we ought to examine as we look We, the undersigned Senators, in accord- sen and sworn having voted in the af- to reform our Tax Code. Once the issue ance with the provisions of rule XXII of the firmative, the motion is agreed to. of these extenders is settled, I look for- Standing Rules of the Senate, hereby move The Senator from . to bring to a close debate on the motion to ward to working with Senator HATCH Mr. ALEXANDER. Mr. President, proceed to Calendar No. 332, H.R. 3474, an act does the Senator from Massachusetts and all our colleagues on a broad-based to amend the Internal Revenue Code of 1986 tax reform plan that will grow our en- to allow employers to exempt employees wish to address the Senate at this tire economy. with health coverage under TRICARE or the time? In the meantime, it would be a mis- Veterans Administration from being taken Mr. MARKEY. Mr. President, I ask take to leave American families and into account for purposes of the employer that the Chair recognize the Senator American businesses out in the cold. mandate under the Patient Protection and from Tennessee. Temporary provisions of the Tax Code Affordable Care Act. The PRESIDING OFFICER. The Sen- continue to expire, leaving jobs, inno- Harry Reid, Ron Wyden, Robert Menen- ator from Tennessee. vation, investment, and people’s homes dez, Patty Murray, Barbara Boxer, Jon Mr. ALEXANDER. Mr. President, I Tester, Debbie Stabenow, Maria Cant- in limbo. By providing certainty to thank the Senator from Massachusetts. well, Bill Nelson, Thomas R. Carper, I ask unanimous consent that the businesses and families for the next 2 Patrick J. Leahy, Brian Schatz, Mark years, the EXPIRE Act creates the R. Warner, Charles E. Schumer, John junior Senator from Tennessee and I be space needed for true tax reform. I D. Rockefeller IV, Benjamin L. Cardin, permitted to engage in a colloquy, and don’t want us to lose sight of that dur- Martin Heinrich. I ask for the attention of the Senate. ing this debate. These extenders are The PRESIDING OFFICER. By unan- The PRESIDING OFFICER. Without important, but we are also going to imous consent the mandatory quorum objection, it is so ordered. talk on the floor about building a call has been waived. The Senate will be in order. Senators bridge to reform that this country des- The question is, Is it the sense of the will please take their conversations perately needs. We know there are in- Senate that debate on the motion to out of the well. equities in the Tax Code. The inability proceed to H.R. 3474, an act to amend Mr. ALEXANDER. Thank you, Mr. to have the certainty and predict- the Internal Revenue Code of 1986 to President. ability we need is holding us back. allow employers to exempt employees REMEMBERING HARLAN MATHEWS We need to make sure we have a Tax with health coverage under TRICARE Mr. President, a few days ago we lost Code that gives everybody in America or the Veterans Administration from a prominent Tennessean, Harlan Mat- the opportunity to get ahead, espe- being taken into account for purposes hews. He was 87 years old, and he lived cially our hard-working, middle-class of the employer mandate under the Pa- a long and distinguished life. citizens, our entrepreneurs and busi- tient Protection and Affordable Care Harlan Mathews served in the Senate nesses. Our people work hard for the Act shall be brought to a close? seat in which I now have the privilege money they earn each and every day. The yeas and nays are mandatory of serving. When Senator was They want to pay their fair share, but under the rule. elected Vice President more than 20 when they are asked to contribute part The clerk will call the roll. years ago—Harlan Mathews took his of their paycheck each month, they de- The assistant legislative clerk called seat and then retired from the Senate serve a tax system that is transparent the roll. after serving two years of his appoint- and equitable. We need to simplify the Mr. CORNYN. The following Senator ment. code. We need to level the playing is necessarily absent: the Senator from But that was, by a long shot, not a field. We need to get rid of the dispari- Arkansas (Mr. BOOZMAN). description of his public service. Yes- ties between different types of income The yeas and nays resulted—yeas 96, terday Senator CORKER and I were at that elevates some workers over oth- nays 3, as follows: his funeral and memorial service in Nashville, which was a beautiful serv- ers. [Rollcall Vote No. 143 Leg.] I encourage all of my colleagues ice, a simple service, as he would have today to, first, back this legislation so YEAS—96 imagined. The theme that kept coming we don’t see, for example, innovation Alexander Cardin Durbin through again and again was what a Ayotte Carper Enzi and our veterans and teachers suffer as Baldwin Casey Feinstein fine mentor and unselfish public serv- we work toward bipartisan tax reform; Barrasso Chambliss Fischer ant Harlan Mathews had been in our second, to be open about sharing their Begich Coats Franken State for 60 years. He was a World War Bennet Cochran Gillibrand ideas with the Finance Committee and Blumenthal Collins Graham II veteran, came to Vanderbilt Univer- all Members about innovative bipar- Blunt Coons Grassley sity, and in 1950 met a young Governor tisan reforms that can improve our en- Booker Corker Hagan whose name was Frank Clement—a ris- tire Tax Code. Voters send us to work. Boxer Cornyn Harkin ing star in national politics. He became Brown Crapo Hatch They are looking for results. They Burr Cruz Heinrich his assistant and served in a variety of don’t want to hear excuses about why Cantwell Donnelly Heitkamp State government positions with very

VerDate Mar 15 2010 00:03 May 14, 2014 Jkt 039060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\CR\FM\G13MY6.010 S13MYPT1 smartinez on DSK6TPTVN1PROD with SENATE May 13, 2014 CONGRESSIONAL RECORD — SENATE S2931 little interruption until he was ap- modest. The service was only about 40 and mentor to dozens over the four decades pointed by Governor McWherter to or 45 minutes to reflect that. of his public career. serve for 2 years in Al Gore’s seat. He would have been a terrific Senator Upon leaving the U.S. Senate in December of 1994, Mathews joined the Nashville office Twenty years ago Harlan Mathews de- if he had been here for 25 years because of the law firm of Farris, Mathews, Bobango cided not to run for reelection and has of what we know about him. He wasn’t PLC. He remained active in the legislature lived the past 20 years in Nashville. We out front. He was behind the scenes. He and politics, serving as an informal advisor were there with his wife Pat, his sons, worked to get things done. He was al- and fundraiser for Gov. . and a host of friends. ways results-oriented, and he didn’t Throughout Mathews’ career, he never What I think about Harlan Mathews mind who got the credit. Sometimes took for granted the people he served and the is that other than his great friend there is a shortage of that in the Sen- responsibility he held. He was known as a former Governor Ned McWherter, no soft spoken but tough negotiator who made ate—then and now today. He had those sure state employees were paid good wages, one had more friends around the State rare skills of the public servant that and that the state’s retirement system was capitol than Harlan Mathews did. are always valuable and always needed. sound, the debt low and the bond rating So today we pay tribute to him and I know his wife Pat, his sons Stan strong. He was a demanding boss who also to his family for a life well lived, for and Les, and his granddaughters Katie made sure that his employees had a warm his service to the State of Tennessee, and Emily miss him deeply. We do as coat in cold weather. He was a leader, a and for being a man who has mentored well, and we join them in admiring his statesman and a friend to all that knew him as many young public servants of our life and his example. and to all of Tennessee. Mathews is survived by his wife Pat, sons State as anyone I can think of. I ask unanimous consent to have Stan Mathews (Sandy) and Les Mathews The PRESIDING OFFICER. The Sen- printed in the RECORD the obituary of (Pam) and granddaughters Katie Zipper and ator from Tennessee. Harlan Mathews detailing his public Emily Mathews. He was preceded in death by Mr. CORKER. I too rise to talk about service. his son Rick Mathews. our friend and former colleague to There being no objection, the mate- Honorary pallbearers include Steve Adams, many in this body, Senator Harlan rial was ordered to be printed in the Tom Benson, Carl Brown, Tom Cone, Nancy- Ann DeParle, John Faber, Jim Hall, Don Mathews. RECORD, as follows: Holt, Carl Johnson, Dr. Joe Johnson, Jeremy It was touching yesterday to be at a OBITUARY funeral service where so many people Kane, David Lillard, JW Luna, David Man- Harlan Mathews, an accidental Tennessean ning, Raymond Marston, Mike McWherter, he had mentored stood and talked in born in Sumiton, , who advised five Clayton McWhorter, John Morgan, William conversation around the gathering we Tennessee governors and served in the U.S. Nichols, Roy Nix, Parker Sherrill, Arnold attended about the great mentorship Senate, died today at the age of 87, his fam- Tackett, Bo Roberts, Pete Sain, Dale Sims, he provided. There is no greater legacy ily confirmed. Captain Bobby Trotter, David Welles, Bill any of us can provide than to set an ex- Mathews, who recently was diagnosed with Whitson, and ‘‘Harlan’s Girls’’—Estie Harris, ample for other people and to create a brain tumor, died peacefully at Alive Hos- Adrienne Knestrick, Katy Varney and Beth pice today at 6 a.m. with his wife Pat at his opportunities for other people coming Winstead. side. The family would like to give special along. Services honoring Mathews and cele- thanks to his caring doctors—Dr. Craig I want to join the senior Senator, brating his life are being scheduled at this Weirum, Dr. Chris Hill, Dr. Rentz Dunn, Dr. who I know served with him while he time. John Thompson and Dr. Robert Faber. was Governor. I had the great oppor- After serving in the U.S. Navy in WWII, Mr. ALEXANDER. I thank the Sen- tunity to get to know him as a new and Mathews received his B.A. degree from Jack- ator from Massachusetts for his cour- sonville State University under the G.I. Bill. young commissioner of finance in our tesy. State, an appointed job, and no one—no He arrived in Nashville in 1949 to attended . He would subse- The PRESIDING OFFICER. The Sen- one—was kinder to me than former quently obtain a master’s degree in public ator from Massachusetts. Senator Harlan Mathews, who has been administration. Shortly after enrolling at Mr. MARKEY. I seek recognition to involved in so many great things that Vanderbilt, Mathews took an entry level job speak for 5 minutes. have happened in our State. with the State Planning Office, not knowing The PRESIDING OFFICER. Without His wife Pat complimented him in an that serving the people of Tennessee would objection. extraordinary way, saying I think one become his life’s work. ENERGY AND TAX EXTENDERS of his greatest attributes was his con- In 1950, the 24 year-old Mathews met 30 Mr. MARKEY. Mr. President, two year-old Frank Clement. Two years later, stantly saying: You know, so much can things happened yesterday: happen in this world if no one cares Mathews was the top assistant to the new Governor, a close friendship that continued First, the Shaheen-Portman energy who takes the credit. until Clement’s death in 1969. In 1961 Mat- efficiency bill collapsed—at least for I think he was a quiet force for good hews was appointed Commissioner of Fi- now. It would have created 190,000 new in our State and a quiet force for good nance by Governor . He held jobs. It would have cut carbon pollu- in our country. So many of the things the post for 10 years, one of the longest ten- tion by 22 million automobiles on the that caused him to be the kind of per- ures in state history. roads of the in equiva- son he was are things that many of us In 1971, Mathews briefly left state govern- lency. That is a big deal. It is some- could emulate and cause the Senate ment to work in the private sector in Mem- thing that was agreed upon by Demo- and our country to function much bet- phis, but returned in 1973 to serve as the leg- islative assistant to longtime state comp- crats and Republicans. ter than it does now. troller William Snodgrass. The Tennessee What happened? Well, too many Re- I join the senior Senator, for whom I General Assembly elected Mathews state publicans wanted to vote on the Key- have so much respect, in making sure treasurer in 1974 when his predecessor, Tom stone Pipeline issue. They knew the the Senate record records the great Wiseman, opted to run for governor. vote on the Keystone Pipeline was work of Harlan Mathews—Senator, Mathews remained state treasurer until going to fail because they don’t have Deputy Governor, treasury leader in January 1987 when he resigned to become the votes in order to be successful, so our State but also commissioner of fi- deputy governor to Ned McWherter. they took a bill that would cut carbon nance. He is someone who provided As deputy governor, Mathews was a low key yet forceful advocate of McWherter’s emissions and said they wouldn’t pass years of great public service, years of legislative agenda and continued, as he had it unless they got a vote on three addi- great mentorship, and someone who done as state treasurer and finance and ad- tional amendments to increase global has a legacy of people who served with ministration commissioner, to protect the warming emissions: him and under him who have gone on state’s sound financial footing. No. 1. Stop EPA from cutting emis- to do wonderful work for our State and Upon U.S. Senator Al Gore’s election to sions on powerplants. They wanted to country. the vice presidency, McWherter appointed vote to take away EPA authority on I yield the floor with great gratitude the most dedicated public servant he knew that. toward a wonderful public servant, to fill the vacancy. Harlan Mathews was No. 2. Allow massive export of nat- sworn in on Jan. 3, 1993, to represent Ten- Harlan Mathews. nessee in the U.S. Senate. ural gas that will actually increase Mr. ALEXANDER. I thank the Sen- Mathews never sought election to political costs to consumers in the United ator from Tennessee. Harlan was office, preferring to serve the people of this States and move us back to coal be- known for working quietly, and being state behind the scenes as a frugal manager cause the higher the price of natural

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They are creating jobs at a mas- Nathan, Chance, Shea, Tyesun, and have a vote that prohibits the Senate sive pace, but we need to ensure that KylieAnne. He also had eight grand- from considering global warming pollu- the tax breaks are there. children. tion levels. My hope is that we will be able to I wish to extend my sympathy to his Obviously, this is a debate about pol- pass these tax extenders. Again, there family and recognize Sergeant Wride lution, not about energy efficiency, are extensions for tax breaks that are for his service, selflessness, and his from the perspective of the Republican in there for many industries across the courage. Party—although I give credit to the board. It is the kind of bipartisan effort I urge my colleagues to take some many Republicans who were working that deserves support, like the Sha- time this week to think about these on a bipartisan basis with JEANNE SHA- heen-Portman energy efficiency bill. men and pay respect to the numerous HEEN in order to put together a bill My hope is that the institution can other fallen heroes who have served our that actually accomplished something work in order to accomplish that goal. communities with professionalism, in- and showed this institution can work. Civility on matters such as these tegrity, and compassion, as well as all A second event actually happened should not melt away. We need to members of the law enforcement com- yesterday as well. Two new climate make sure we are, in fact, protected for munity who watch over and guard our studies were released saying that the generations yet to come. streets, protect us, our families, and West Antarctic ice sheet is collapsing I yield the floor. our communities. and the melting of the West Antarctic The PRESIDING OFFICER. The Sen- TAX INVERSIONS is unstoppable. Twelve feet of sea level ator from Utah. Last week I came to the floor to talk rise is coming. NATIONAL POLICE WEEK briefly about the news reports we have Did you hear that? The West Ant- Mr. HATCH. I wish to take a moment all been seeing about the proposed arctic ice sheet is collapsing, the melt- to say a few words in honor of National merger between Pfizer and ing is unstoppable, and 12 feet of sea Police Week. I would like to take this AstraZeneca and the legislative pro- level rise is coming. opportunity to honor the brave men posals we are seeing from Members of What does that mean? That means and women of law enforcement who Congress in response to the merger. Boston, underwater; South Florida, un- made the ultimate sacrifice and gave As you know, one of the key details derwater; New Orleans, underwater. their lives in the line of duty while in this merger is that when Pfizer—a In the Senate, we are moving at a safeguarding our communities. large American company—acquires glacial pace on climate change. We are Since the first recorded police death AstraZeneca—another large, but some- frozen. But while we do nothing, the in 1791, there have been 21,742 law en- what smaller UK company—they plan pace of glacial collapse is accelerating. forcement officers killed in the line of to incorporate the new merged com- The world’s ice is melting. duty. This year 112 names will be added pany in the United Kingdom, not here The Senate has been called the cool- to the National Law Enforcement Offi- in the United States. ing saucer of democracy. But when it cers Memorial in Washington. We As I said last week, I was as con- comes to climate change, it is the should remember that there are 112 cerned to learn of these plans as were warming plate, cooking the Earth as families who grieve the loss of a loved many of us here in Congress. After all, we continue our slide into an ocean of one who gave his or her life to protect Pfizer is an iconic American company, dysfunction. their community and to keep their fel- with over 100,000 employees. It ranks in The next major piece of the West low citizens safe. the top 200 of global companies by rev- Antarctic glacier that breaks off into Today I recognize two Utah law en- enue, according to the Fortune Global the ocean should be reserved as an is- forcement officers who recently gave 500 list. It would be a great loss to our land for all of the climate deniers. We their lives in the line of duty. country to see it incorporated offshore. will just call it the Island of Deniers. Still, it is difficult to blame them for They can all live there because there SERGEANT DEREK JOHNSON this decision. According to sources, a will be plenty of room on this huge, Sergeant Derek Johnson had served desire to escape the high U.S. cor- massive body of ice that keeps break- with the Draper Police Department for porate tax is part of the motivation for ing off and heading into the ocean. 9 years when he was shot and killed this merger. This type of transaction, Secondly, we are about to take up while on uniformed patrol in the early where a U.S. corporation merges with a tax extenders, and we have a fantastic morning hours of September 1, 2013. foreign entity and incorporates else- chance to extend the production tax During his service, Sergeant Johnson where to escape the U.S. tax net, is credit for wind in our country. Unfor- was the recipient of many awards, in- sometimes referred to as an inversion. tunately, because of the unpredict- cluding a Life Saving Award and a Dis- Inversions are a growing problem ability of the tax breaks for the wind tinguished Service Award. He was also here in the United States. Indeed, large industry, 30,000 people in the wind in- honored as the 2012 Community Polic- companies are leaving our country at dustry were laid off last year. That is ing Officer of the Year. an alarming rate. If you count the not because the wind industry didn’t We take this time to think about the number of American corporations in prove it could increase the amount of friends and family who mourn the loss the worldwide list of Fortune 500 com- electricity in our country generated of Sergeant Johnson and keep his wife panies, you will see the number has de- from wind; it is because—unlike the oil Shante and his 7-year-old son Bensen clined dramatically over the past dec- industry, unlike the gas industry, un- Ray Johnson in our thoughts and pray- ade, which is very unfortunate. This like the nuclear industry, unlike the ers. decline means less capital and less in- coal industry—the wind industry has to SERGEANT CORY WRIDE vestment in the United States. It come in, hat in hand, to beg to con- Another recent tragic loss to the means a smaller U.S. tax base. Most tinue their tax breaks year after year. Utah law enforcement community was importantly, it means more jobs that There is no predictability for that mar- Utah County Sheriff’s Office Sergeant could be created—that should be cre- ketplace. This gives us a chance to ex- Cory Wride. ated—here in America are being cre- tend those tax breaks. Sergeant Wride was shot and killed ated elsewhere. So make no mistake. So it is a big challenge, but ulti- while on duty on January 30, 2014, as he Inversions are a big problem, and the mately if the oil and gas industry is was assisting a stranded motorist. problem seems to be growing every going to receive $7 billion in tax breaks Sergeant Wride served with the Utah day. per year, the wind industry should re- County Sheriff’s Office for nearly 20 As I mentioned on the floor last ceive the tax breaks it needs. We need years and served his community in var- week, there are, broadly speaking, two

VerDate Mar 15 2010 00:03 May 14, 2014 Jkt 039060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\CR\FM\G13MY6.016 S13MYPT1 smartinez on DSK6TPTVN1PROD with SENATE May 13, 2014 CONGRESSIONAL RECORD — SENATE S2933 different ways Congress could act to for companies to locate their busi- count when considering mergers and address this problem. The first way nesses. That being the case, as impor- acquisitions, the alarm bells sound and would be to make it more difficult for tant as it is to get the corporate tax legislation is put forward in no time. I a U.S. corporation to invert. That is rate down, no matter how low we get would say there is a bit of inconsist- the approach my friend the chairman that rate, we still need to scrap and re- ency on the part of some of my col- of the Senate Finance Committee en- place our outdated worldwide tax sys- leagues who claim they want to keep dorsed a few days ago in an op-ed in the tem. jobs and business in the United States. Wall Street Journal. That is why tax reform is so impor- If they do, why aren’t they doing some- As the chairman noted in his opinion tant. It is just one of the reasons, of thing about this stupid tax on medical piece, current law requires companies course, but it is a really important rea- device companies? moving overseas to have at least 20 son. Tax reform, if it is done right, will We had a vote on this earlier in the percent new ownership to avoid some get at the root problem rather than year, on a bill that didn’t go through very bad tax consequences. His pro- simply dealing with symptoms. both Houses—and the leadership knew posal—the one he outlined in this arti- I should note that inversions are only it wouldn’t go through—where we had cle—would be to increase that bench- one symptom of our dysfunctional 79 votes in favor of abolishing this tax. mark to 50 percent for all inversions international tax rules. Other types of There is wide bipartisan support to get taking place after May 8 of this year. transactions further illustrate why the rid of it. What is wrong with the other That means his proposed restriction entire system we have is problematic. side that we have to continue to fight would be retroactive for all inversions For example, there are strong incen- to get rid of something that 79 people that happened between last Thursday tives currently for a U.S. parent com- in the Senate voted to get rid of? And and the date his proposal may be pany to sell its foreign subsidiaries to by the way, I believe if we brought it signed into law. foreign corporations in order to escape up true blue, in and of itself, it would Of course, this is hardly a new idea. the U.S. tax net. There are strong in- pass here with probably 95 votes, if peo- President Obama included a similar centives to set up a startup business as ple give any consideration to American proposal in his budget. Given the a foreign corporation. Neither of these business, American ingenuity, solving amount of hand-wringing we have seen transactions are inversions, but they the problems of health care, bringing over just the Pfizer-AstraZeneca merg- do show the point that it is, for tax health care costs down, which medical er and the subsequent erosion of the purposes, often better not to be a U.S. devices can do, and saving lives. It is U.S. tax base from my friends on the corporation or to be controlled by one. no small reason why some of these other side, you would think a proposal While these other sorts of transactions medical device companies are moving like the one the chairman floated in don’t grab the headlines, as inversions overseas where they are treated far his op-ed would raise a significant do, they are nonetheless indicative of better than we treat them here. We had amount of revenue. However, if you real problems in our Tax Code. 79 people who voted to get rid of that think that, you would be wrong. That being the case, a proposal to re- stupid tax. Yet the leadership of this All told, his proposal would raise strict or eliminate inversions would body won’t allow it to be brought up roughly $17 billion over 10 years. That really only go after one particular type freestanding or on some bill that basi- is about $1.7 billion a year. That is not of problem, leaving the rest of the fun- cally has a chance of passage through really an insignificant sum, but it does damental flaws in our tax system firm- both Houses of Congress. demonstrate the scope of the problem ly in place. Now, there is, of course, bipartisan is hardly worth the draconian solution Proposals to restrict inversions or to legislation that would correct the prob- some of my friends want to impose in impose some sort of management and lems we face with the medical device order to solve it. control test are like trying to plug the tax; namely, a bill introduced by Sen- Let me be clear. I share my col- dyke with your finger to keep capital ator KLOBUCHAR and myself. And I leagues’ concerns about the number of and jobs from flowing overseas. These commend Senator KLOBUCHAR. She has inversions that have taken place over proposals are not long-term solutions. had a lot of guts plus a lot of ability in the last few years. However, I do not They are not even good short-term working on this bill. Sadly, the Senate believe that imposing confusing and ar- fixes. Democratic leadership has thus far re- bitrary retroactive restrictions on U.S. Another example of business activity fused to allow an up-or-down vote on companies is the answer. There is an flowing overseas that really comes to the measure, even though we know it alternative approach which brings us mind is the problem we are facing with has broad bipartisan support, as I have to the second way Congress could act the medical device industry. We are heretofore mentioned. to prevent more inversions. losing our innovative medical device My hope is this will change with the The second way to address the prob- companies because of our stupid tax upcoming debate over tax extenders, lem of inversions is to make the United system and the 2.3 percent tax on sales but I am not holding my breath. Given States a more desirable location to or gross income of our medical device our ongoing experience with the med- headquarter businesses. While it would companies—many of which haven’t ical device tax, I have to say I am a lit- require a lot of work and compromise, made a profit yet. They would be tle skeptical when my colleagues on this is by far the better approach. taxed, even though they are not mak- the other side of the aisle say they are This approach, of course, means low- ing profits, but will make profits if concerned about American companies ering the corporate tax rate. It also they can keep going with their innova- moving addresses and operations out of means replacing our antiquated world- tive and good ideas. the country. Indeed, if they were really wide taxation system. Under current We know, thanks to ObamaCare’s so bothered by this, we would have re- law, U.S. corporations are taxed on medical device tax, that some of Amer- pealed this medical device tax a long their worldwide income, but foreign ica’s most innovative companies in an time ago. corporations are subject to tax only on industry that is vital to our health Finally, I would just like to give a income arising from the United States. care system are moving jobs overseas. brief aside on the topic of retroactive In other words, we subject our corpora- Yet where is the call from the leader- changes to our tax laws. In my view, tions to a worldwide tax system, while ship on the other side to do something stability and predictability are bed- subjecting foreign corporations to a about this? In fact, there is nothing but rock principles of the law. When it territorial tax system. On top of that, stalling of legislation to solve this comes to our tax code, we have gotten most of our major trading partners tax problem, which I think almost any in- away from that over the years. Restor- companies domiciled in their own telligent person would want to do. ing these principles to our tax system countries on a territorial basis as well, As it stands, it appears not to alarm should be one of our main goals of tax unlike our country. my friends on the other side when busi- reform. Long story short: Our system of ness activity flees the country as a re- Put simply, retroactive changes to worldwide taxation places us at a com- sult of punitive taxes under the law—the kind envisioned by my petitive disadvantage and makes the ObamaCare. Yet, if a company with a colleague’s op-ed—are the antithesis of United States a less than optimal place large revenue base takes taxes into ac- stability and predictability and will

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I don’t think there is such proposals should be viewed with a the merger is corporate inversion. any way of getting around these types healthy dose of skepticism. I know my What do we mean by that? It means of problems moving forward under our colleague is very sincere in making the Pfizer, an American company, will current Tax Code. points that he has, but I have to rebut merge with a British company and I will point out a fact I don’t think those points, and I believe I have done then use that to transfer its revenues, most Americans have understood. If we so effectively. which are legitimately earned in Amer- look at all the OECD countries—the in- Once again, the effort to prevent tax- ica, many as the result of intellectual dustrial countries of the world, coun- motivated inversions can be boiled property developed in America, and tries that we like to compare ourselves down and separated into two basic then attribute that income to foreign to, countries that we want to be com- camps: One side would have us simply sourced, rather than to domestic petitive with—of all the industrial na- address the problem and impose arbi- sourced, trying to avoid U.S. taxes. tions of the world, the United States is trary and perhaps costly restrictions Our Tax Code should not encourage near the bottom in regard to their reli- on American businesses to prevent that action. Several Members of the ance upon government services. In Eu- them from leaving the country. Senate and I are working within our rope they have much stronger govern- The other side would make the current Tax Code to make sure that ment services in health care and hous- United States a better place to do busi- doesn’t happen here in America. Our ing and income support-type programs ness, preventing companies from want- Tax Code should not encourage compa- than we do in the United States. ing to leave in the first place and invit- nies to take their income offshore. If we rely less on governmental serv- ing new ones to form and prosper here. They should pay their fair share of ices, wouldn’t that mean we should Only one of these approaches will ac- taxes in the United States. have the lowest competitive tax rates tually fix the problem. Only one of But as Senator HATCH pointed out, among the industrial nations? Instead, these approaches will help create jobs and I agree, we need a more competi- as Senator HATCH pointed out, we have and grow the economy, and only one of tive Tax Code. We need a Tax Code that the highest marginal tax rates among these approaches will put our Nation would allow for better competition for the industrial nations, and the reason on a path to greater prosperity. That American companies, for our manufac- is quite simple. Of all the industrial na- turers, for our producers, for our farm- tions in the world, only the United approach is, of course, comprehensive ers, that will allow easier capital for- States does not have a national con- tax reform. That is what is needed, and mations so we could raise in America sumption tax. We rely on income tax that is where our focus should be. As I said last week, as the ranking more of the capital we need and be less revenues. Why? Because we thought member of the Senate’s tax-writing dependent upon foreign-sourced invest- that was the right way to go, and we ment, although foreign-sourced invest- didn’t have to worry about inter- committee, my focus, when it comes to ment is certainly helpful to our coun- national competition. After all, we are the problem of inversions, is to fix the try and something we encourage. America. underlying problems, not to tinker on We need a Tax Code that is fair, that Guess what. We are in global com- the edges, focusing on the symptoms. I people believe they are being treated petition today, and the tax rates of hope eventually that is the approach fairly with their neighbor, which is not this country matter in regard to our we take. the current situation. Most Americans manufacturers being able to sell prod- I thank the Chair, and I yield the cannot figure out the income tax code ucts overseas. floor. and don’t know whether they are being One other fact about international The PRESIDING OFFICER (Ms. treated fairly with other taxpayers, competition. International competi- HEITKAMP). The Senator from Mary- and we need a code that is much more tion rules at the WTO were developed land. efficient. based upon consumption taxes. So if a Mr. CARDIN. Madam President, first So one path we could pursue and that company manufactures an automobile I want to thank Senator HATCH. I deep- Senator HATCH was alluding to is to try in Germany and wants to bring it into ly respect his views. He is one of the to reform our current income tax the United States, the taxes they pay— most effective Members of the Senate. codes—our corporate income tax code the consumption taxes—are taken off He has deep views and reaches across and our personal income tax code. of that product. So basically their party lines to try to get things done, We have an example of that. Con- autos sell in America tax free; whereas, which I think is very important, and I gressman CAMP has come up with a U.S. auto manufacturers that have to respect him greatly. comprehensive proposal in the House of pay taxes, those taxes still apply to the I want to agree with the conclusion Representatives. I must say I don’t cost of the product because it is not of Senator HATCH. The problem with think Congressman CAMP’s proposal border adjusted. corporate inversion is best fixed if we adds up from the point of view of pro- Then, to make matters worse, if they do comprehensive tax reform. I believe ducing the revenue we produce today, manufacture a car in the United States he is right. We have two paths we can let alone the revenue we need in order and try to sell it in Germany, they not take. One is to try and reform our cur- to pay our bills and not be dependent only have to pay the corporate taxes rent tax structure, which I think will upon borrowing money from other here, the income taxes—because they not work, and I will give my reasons countries. But putting that aside, I are not taken off at the border, they why; or we can look for a competitive think we see the difficulty in the Camp are not border adjusted—when they go tax structure that is fairer to the proposal, which causes major disrup- into Germany, they have to pay the American people and makes measures tions among different industries, and value-added tax, the consumption tax. such as corporate inversions something we are hearing from those industries How do we compete under those cir- that would not be happening in our that it would create major problems cumstances? The answer is it is very communities. for competitiveness for the United difficult. In global competition today, Pfizer and AstraZeneca are looking States. we have to be smart. at a merger. AstraZeneca is a British I think the most fundamental flaw This is why we should have the low- company. They own major operations with trying to reform our current Tax est marginal tax rates in the world. If in my State of Maryland, affecting Code is we tried that once before in we did, corporate inversion would not thousands of workers. We would think 1986, and it was comprehensive and it be an issue because we wouldn’t find a a merger between a British company did spread the burden and it did reduce Pfizer trying to pay British taxes when and an American company would mean the rate. It lasted for less than 1 year the U.S. taxes are the lowest taxes more jobs in America, but we know before Congress continued to change among the industrial nations of the Pfizer has made certain commitments the Tax Code. world.

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We make it pro- Tax Code that people can understand, a There have been individuals born at gressive so it is fair, in that they pay fairer Tax Code, one that rewards sav- the 20-week period who have survived. according to their ability to pay a pro- ings. Savings are not taxed. There is a But the theory of the case is not based gressive consumption tax. That con- greater ability to raise capital in the on the medical viability under Roe vs. sumption tax rate will be the lowest United States. It is border adjusted, Wade; it is a new theory that the State among the industrial nations of the which means the taxes come off our ex- has a compelling interest in protecting world. ported products so we can compete an unborn child at this stage of preg- I will give some examples. I will be globally in a much easier way. This is nancy. The partial-birth abortion ban, the first to acknowledge we have to get what we accomplish. which applies at 24 weeks, is backed up these scored and these numbers can So when people talk about funda- to 20 weeks. change as we go along, but we are look- mental reform, to me, this is what we Here is what medical journals tell ing at a consumption tax rate of about need to do. parents to do at 20 weeks: An unborn 10 percent. This would put us at the I am going to move this proposal as child can hear and respond to sounds. bottom of the consumption taxes quickly as I can, but obviously it is Talk or sing. The unborn child enjoys among industrial nations. Individuals going to take some discussion and de- hearing your voice. who earn under $25,000 and families up bate. We are hopeful we will be able to It is a whole list of things about the to $50,000 would pay no consumption answer anyone’s questions on it. We unborn child in the 20-week period. taxes. They would get a credit for the are very optimistic, but in the mean- We are one of seven countries that consumption taxes they otherwise time what do we do? We can’t just allow abortions at this stage in the would pay. stand by and allow Pfizer to take pregnancy, along with China, North Similar to the current income tax American jobs overseas because of cor- Korea, Vietnam, Singapore, Canada, code where they do not pay income porate inversion. So I hope we will and the Netherlands. taxes, they would not pay consumption stand for what is right in our Tax Code, So I would ask the body to consider taxes. It would be immediately rebated that we have the capacity to improve having a debate on my legislation to them. If they work, it would be re- our current Tax Code to avoid the loss about whether we should limit elective bated under the payroll tax payments. of jobs and shipping jobs overseas, as abortions at the 20-week period and If they don’t work, they would get a well as working to reform our Tax Code also a debate on Senator BLUMENTHAL’s debit card to get instant rebates and and provide the type of structure so legislation that basically would allow use it as people use debit cards. the country that relies the least on the courts to set aside several State re- So we would make it progressive. We government among the industrial na- strictions on abortion. We are going to would then be able to start the income tions has the lowest tax rate and has a present a series of actions at the State tax rates at $100,000, approximately, of fairer system for all Americans. level. I think his legislation would taxable income, and 90 percent of allow the courts to have a literal con- Americans would pay no income taxes. f struction in terms of being able to It would start at 15 percent. There RECESS strike down these provisions. I disagree would be an additional bracket of 25 with my good friend. We are good Mr. CARDIN. Madam President, I ask percent, starting at $40,000 of taxable friends, although we have a different unanimous consent that the Senate income. So a progressive income tax, view. The Senator from Connecticut stand in recess until 2:15 p.m. simplified, with only four deductions, made a statement when he introduced There being no objection, the Senate, not this complexity today as we figure the bill that every Senator should be at 12:27 p.m., recessed until 2:15 p.m. out whether something is deductible on the record when it comes to this and reassembled when called to order and all the complications. legislation. I agree. I hope every Sen- by the Presiding Officer (Mr. MURPHY). We would have four deductions for ator would be on the record when it State and local—with respect to fed- f comes to my legislation. eralism—State and local taxes: for HIRE MORE HEROES ACT OF 2014— Mr. President, I ask unanimous con- charitable deductions because our MOTION TO PROCEED—Continued sent that at a time to be determined by charities are critically important to the majority leader, in consultation carrying out the important work of our The PRESIDING OFFICER. The Sen- with the Republican leader, the Senate country, for real estate and the needs ator from South Carolina. proceed to consideration of S. 1670, the for the real estate to reflect—so we UNANIMOUS CONSENT REQUEST—S. 1670 AND S. Pain-Capable Unborn Child Protection don’t see destruction of the real estate 1696 Act, and S. 1696, the Women’s Health market, and we also allow deductions Mr. GRAHAM. Mr. President, I have Protection Act; that there be up to 8 for employer-provided health benefits a unanimous consent request that I hours of debate equally divided in the and retirement benefits. It is sim- will make in a moment to kind of set usual form, to run concurrently; that plified, it rewards simplicity, and al- the stage for what I am asking the Sen- there be no amendments, points of lows for the progressiveness of fairness ate to consider. We will be asking that order, or motions in order; that upon in our Tax Code that does not exist we schedule a vote on two pieces of leg- the use or yielding back of the time, today. islation: the Pain-Capable Unborn the Senate proceed to vote on S. 1670; The corporate tax rate would get Child Protection Act, S. 1670, which is that following the disposition of S. down to 15 percent. That is what cor- my legislation; and S. 1696, the Wom- 1670, the Senate proceed to vote on S. porate America tells us we need to be en’s Health Protection Act, by Senator 1696; and that both bills be subject to a competitive in the industrial world. BLUMENTHAL. 60-vote affirmative threshold for pas- This adds up. Very briefly, what I am trying to do sage. Some say: Gee. Consumption taxes is to have an opportunity for the body The PRESIDING OFFICER. Is there raise a lot of revenue. We put in our to talk about two pieces of legislation objection? proposal an automatic adjustment of that relate to the abortion issue, the The Senator from Connecticut. the rate to make sure it doesn’t bring role of the Federal Government. Very Mr. BLUMENTHAL. Thank you, Mr. in more revenue than we say. So we are quickly, my legislation would ban President. fair on the progressive side to make abortion at the 20-week period—the Reserving my right to object, and I sure it is fair from the point of view of fifth month of pregnancy—based on the will object, I respect my friend and col- the ability of middle-class families to theory that the child can feel pain at league from South Carolina. We are pay, and it is fair from the point of that point in the pregnancy and that friends, and we agree on a lot of issues.

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