H12270 CONGRESSIONAL RECORD — HOUSE December 19, 2019 456 North Meridian Street in Indianapolis, amendment in the nature of a sub- which consist of expenses, not in excess of $500, Indiana, as the ‘‘Richard G. Lugar Post Of- stitute recommended by the Com- paid or incurred by a first responder— fice’’. mittee on Ways and Means, printed in ‘‘(i) as tuition or fees for the participation of The message also announced that the the first responder in professional development the bill, is adopted and the bill, as courses related to service as a first responder, or Senate has agreed to a concurrent reso- amended, is considered read. ‘‘(ii) for uniforms used by the first responder lution of the following title in which The text of the bill, as amended, is as in service as a first responder.’’. the concurrence of the House is re- follows: (b) FIRST RESPONDER DEFINED.—Section 62(d) quested: H.R. 5377 of the Internal Revenue Code of 1986 is amended by adding at the end the following new para- S. CON. RES. 31. Concurrent resolution rec- Be it enacted by the Senate and House of Rep- graph: ognizing the importance and significance of resentatives of the United States of America in ‘‘(4) FIRST RESPONDER.—For purposes of sub- the 2020 Census and encouraging individuals, Congress assembled, section (a)(2)(F), the term ‘first responder’ families, and households across the United SECTION 1. SHORT TITLE. means, with respect to any taxable year, any in- States to participate in the 2020 Census to This Act may be cited as the ‘‘Restoring Tax dividual who is employed as a law enforcement ensure a complete and accurate count. Fairness for States and Localities Act’’. officer, firefighter, paramedic, or emergency The message also announced that SEC. 2. ELIMINATION FOR 2019 OF MARRIAGE medical technician for at least 1000 hours during pursuant to Public Law 105–292, as PENALTY IN LIMITATION ON DEDUC- such taxable year.’’. amended by Public Law 106–55, Public TION OF STATE AND LOCAL TAXES. (c) INFLATION ADJUSTMENT.—Section 62(d)(3) (a) IN GENERAL.—Section 164(b) of the Inter- of the Internal Revenue Code of 1986, as amend- Law 107–228, and Public Law 112–75, the nal Revenue Code of 1986 is amended by adding ed by section 4, is further amended by striking Chair, on behalf of the President pro at the end the following new paragraph: ‘‘the $500 amount in subsection (a)(2)(D)’’ and tempore, upon the recommendation of ‘‘(7) SPECIAL RULE FOR LIMITATION ON INDI- inserting ‘‘the $500 amount in each of subpara- the Democratic Leader, appoints the VIDUAL DEDUCTIONS FOR 2019.—In the case of a graphs (D) and (F) of subsection (a)(2)’’. following individual to the United taxable year beginning after December 31, 2018, (d) EFFECTIVE DATE.—The amendments made States Commission on International and before January 1, 2020, paragraph (6) shall by this section shall apply to taxable years be- Religious Freedom: be applied by substituting ‘($20,000 in the case ginning after December 31, 2019. of a joint return)’ for ‘($5,000 in the case of a SEC. 6. INCREASE OF TOP MARGINAL INDIVIDUAL Rabbi Sharon A. Kleinbaum of New married individual filing a separate return)’.’’. INCOME TAX RATE UNDER TEM- York vice Ahmed M. Khawaja of Cali- (b) EFFECTIVE DATE.—The amendment made PORARY RULES. fornia. by this section shall apply to taxable years be- (a) IN GENERAL.—The tables contained in sub- paragraphs (A), (B), (C), (D), and (E) of section f ginning after December 31, 2018. SEC. 3. ELIMINATION FOR 2020 AND 2021 OF LIMI- 1(j)(2) of the Internal Revenue Code of 1986 are RECESS TATION ON DEDUCTION OF STATE each amended by striking ‘‘37%’’ and inserting AND LOCAL TAXES. ‘‘39.6%’’ and— The SPEAKER pro tempore. Pursu- (a) IN GENERAL.—Section 164(b)(6)(B) of the (1) in subparagraph (A)— ant to clause 12(a) of rule I, the Chair Internal Revenue Code of 1986 is amended by in- (A) by striking ‘‘$600,000’’ each place such declares the House in recess for a pe- serting ‘‘in the case of a taxable year beginning term appears and inserting ‘‘$479,000’’, and (B) by striking ‘‘$161,379’’ and inserting riod of less than 15 minutes. before January 1, 2020, or after December 31, ‘‘$119,029’’, Accordingly (at 1 o’clock and 29 min- 2021,’’ before ‘‘the aggregate amount of taxes’’. (2) in subparagraph (B)— utes p.m.), the House stood in recess. (b) CONFORMING AMENDMENTS.—Section (A) by striking ‘‘$500,000’’ each place such 164(b)(6) of the Internal Revenue Code of 1986 is term appears and inserting ‘‘$452,400’’, and f amended— (B) by striking ‘‘$149,298’’ and inserting (1) by striking ‘‘For purposes of subparagraph b 1345 ‘‘$132,638’’, (B)’’ and inserting ‘‘For purposes of this sec- (3) in subparagraph (C)— AFTER RECESS tion’’, (A) by striking ‘‘$500,000’’ each place such (2) by striking ‘‘January 1, 2018’’ and insert- term appears and inserting ‘‘$425,800’’, and The recess having expired, the House ing ‘‘January 1, 2022’’, (B) by striking ‘‘$150,689.50’’ and inserting was called to order by the Speaker pro (3) by striking ‘‘December 31, 2017, shall’’ and ‘‘$124,719.50’’, and tempore (Mr. HIGGINS of New York) at inserting ‘‘December 31, 2021, shall’’, and (4) in subparagraph (D)— 1 o’clock and 45 minutes p.m. (4) by adding at the end the following: ‘‘For (A) by striking ‘‘$300,000’’ each place such purposes of this section, in the case of State or term appears and inserting ‘‘$239,500’’, and f local taxes with respect to any real or personal (B) by striking ‘‘$80,689.50’’ and inserting ‘‘$59,514.50’’. RECESS property paid during a taxable year beginning in 2020 or 2021, the Secretary shall prescribe (b) CONFORMING AMENDMENTS.— The SPEAKER pro tempore. Pursu- rules which treat all or a portion of such taxes (1) Section 1(j)(4)(B)(iii) of the Internal Rev- ant to clause 12(a) of rule I, the Chair as paid in a taxable year or years other than enue Code of 1986 is amended— (A) in the matter preceding subclause (I), by the taxable year in which actually paid as nec- declares the House in recess subject to striking ‘‘37 percent’’ and inserting ‘‘39.6 per- essary or appropriate to prevent the avoidance the call of the Chair. cent’’, of the limitations of this subsection.’’. Accordingly (at 1 o’clock and 45 min- (B) in subclause (II), by striking ‘‘37-percent (c) EFFECTIVE DATE.—The amendments made bracket’’ and inserting ‘‘39.6-percent bracket’’, utes p.m.), the House stood in recess. by this section shall apply to taxes paid or ac- and crued in taxable years beginning after December f (C) in the heading, by striking ‘‘37-PERCENT 31, 2019. b 1407 BRACKET’’ and inserting ‘‘39.6-PERCENT BRACK- SEC. 4. INCREASE IN DEDUCTION FOR CERTAIN ET’’. AFTER RECESS EXPENSES OF ELEMENTARY AND (2) Section 1(j)(4)(C) of such Code is amend- SECONDARY SCHOOL TEACHERS. ed— The recess having expired, the House (a) INCREASE.—Section 62(a)(2)(D) of the In- (A) in clause (i)(II), by striking ‘‘paragraph was called to order by the Speaker pro ternal Revenue Code of 1986 is amended by (5)(B)(i)(IV)’’ and inserting ‘‘paragraph tempore (Ms. CLARK of Massachusetts) striking ‘‘$250’’ and inserting ‘‘$500’’. (5)(B)(iv)’’, and (b) CONFORMING AMENDMENTS.—Section at 2 o’clock and 7 minutes p.m. (B) by amending clause (ii) to read as follows: 62(d)(3) of the Internal Revenue Code of 1986 is ‘‘(ii) the amount which would (without regard f amended— to this paragraph) be taxed at a rate below 39.6 (1) by striking ‘‘2015’’ and inserting ‘‘2019’’, percent shall not be more than the sum of— RESTORING TAX FAIRNESS FOR (2) by striking ‘‘$250’’ and inserting ‘‘$500’’, ‘‘(I) the earned taxable income of such child, STATES AND LOCALITIES ACT and plus (3) in subparagraph (B), by striking ‘‘2014’’ Mr. THOMPSON of California. ‘‘(II) the maximum dollar amount for the 35- and inserting ‘‘2018’’. percent rate bracket for estates and trusts.’’. Madam Speaker, pursuant to House (c) EFFECTIVE DATE.—The amendments made (3) The heading of section 1(j)(5) of such Code Resolution 772, I call up the bill (H.R. by this section shall apply to taxable years be- is amended to read as follows: ‘‘APPLICATION OF 5377) to amend the Internal Revenue ginning after December 31, 2018. ZERO PERCENT CAPITAL GAIN RATE BRACKETS’’. Code of 1986 to modify the limitation SEC. 5. ABOVE-THE-LINE DEDUCTION ALLOWED (4) Subparagraphs (A) and (B) of section on deduction of State and local taxes, FOR CERTAIN EXPENSES OF FIRST 1(j)(5) of such Code are amended to read as fol- and for other purposes, and ask for its RESPONDERS. lows: (a) IN GENERAL.—Section 62(a)(2) of the Inter- ‘‘(A) IN GENERAL.—Subsection (h)(1)(B)(i) immediate consideration in the House. nal Revenue Code of 1986 is amended by adding shall be applied by substituting ‘below the max- The Clerk read the title of the bill. at the end the following new subparagraph: imum zero rate amount’ for ‘which would (with- The SPEAKER pro tempore. Pursu- ‘‘(F) CERTAIN EXPENSES OF FIRST RESPOND- out regard to this paragraph) be taxed at a rate ant to House Resolution 772, the ERS.—The deductions allowed by section 162 below 25 percent’.

VerDate Sep 11 2014 20:42 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00058 Fmt 7634 Sfmt 6333 E:\RECORD19\DECEMBER\H19DE9.REC H19DE9 sradovich on DSKJLST7X2PROD with CONG-REC-ONLINE December 19, 2019 CONGRESSIONAL RECORD — HOUSE H12271 ‘‘(B) MAXIMUM ZERO RATE AMOUNT DE- H.R. 5377 fixes this problem by re- SALT cap, what Democrats are pro- FINED.—For purposes of subparagraph (A), the storing the longstanding tax precedent posing to do today, is regressive and term ‘maximum zero rate amount’ means— that protects State and local govern- overwhelmingly benefits high-income ‘‘(i) in the case of a joint return or surviving spouse, $77,200, ments’ ability to raise revenue to fund households. And they go further and ‘‘(ii) in the case of an individual who is a these services. And this fix doesn’t add say this is little help to the middle head of household (as defined in section 2(b)), a single dime to the deficit. class. $51,700, Furthermore, this bill provides tax b 1415 ‘‘(iii) in the case of any other individual relief to the middle-class public serv- (other than an estate or trust), an amount equal ants left behind by the Republican tax It is a sad day when it is obvious to 1 to ⁄2 of the amount in effect for the taxable year bill by doubling the out-of-pocket de- everyone but Democrats that they are under clause (i), and duction for teachers, classroom ex- championing a huge tax cut for mil- ‘‘(iv) in the case of an estate or trust, $2,600.’’. lionaires and billionaires, while the (5) Section 1(j)(5)(C) of such Code is amended penses, and creating a new deduction by striking ‘‘clauses (i) and (ii) of’’. for expenses for first responders. In middle class in America get zip. (c) EFFECTIVE DATE.—The amendments made 2017, 354,990 teachers in California Today we debate their insistence on by this section shall apply to taxable years be- claimed the educator expense deduc- hiking taxes on Main Street businesses ginning after December 31, 2019. tion, and they will all get double under across America to pay for their mas- (d) SECTION 15 NOT TO APPLY.—Section 15 of sive tax windfall for the wealthy 1 per- the Internal Revenue Code of 1986 shall not this bill. The short-sightedness of the SALT cent. apply to any change in a rate of tax by reason You think your local property taxes cap had further consequences for mid- of any amendment made by this section. are high now? This legislation is a dle-class taxpayers in high-tax States: The SPEAKER pro tempore. The bill starter pistol for a new race among Capping the SALT deduction dimin- shall be debatable for 1 hour equally di- State and local leaders. vided and controlled by the chair and ished the incentive for middle-class Who of them will be first to raise ranking minority member of the Com- taxpayers to claim tax benefits that property taxes, sales taxes, and income mittee on Ways and Means. encourage homeownership and chari- taxes even higher on working families The gentleman from California (Mr. table deductions. By limiting the and local businesses? THOMPSON) and the gentleman from SALT deduction and raising the stand- These unpopular local taxes, frankly, Texas (Mr. BRADY) each will control 30 ard deduction, fewer middle-class tax- are brutal enough. minutes. payers benefit from taking the mort- This bill truly is a tax cut for the The Chair recognizes the gentleman gage interest deduction and charitable few. from California. giving deductions. According to the liberal Tax Policy GENERAL LEAVE Homeownership is an important way Center, only 1 percent of taxpayers in Mr. THOMPSON of California. for middle-class families to build America paid more taxes last year due Madam Speaker, I ask unanimous con- wealth. Eliminating incentives for to the reasonable SALT cap, 1 percent; sent that all Members have 5 legisla- charitable giving undermines local in California, only 2; in New York, a tive days to revise and extend their re- charities that rely on donations from mere 3. marks and to insert in the RECORD ex- middle-class members of their commu- The rest of taxpayers in America ei- traneous material on this bill. nities. ther received a tax cut or they broke The SPEAKER pro tempore. Is there I think my colleagues from both even. That is because the Republican objection to the request of the gen- sides of the aisle can agree that these Tax Cuts and Jobs Act lowered taxes tleman from California? are the types of behavior we should be on income across the board. We dou- There was no objection. encouraging through our tax code. This bled the child tax deduction and ex- Mr. THOMPSON of California. bill reverses the Republicans’ actions panded it to far more families. We dou- Madam Speaker, I yield myself such to undercut these middle-class benefits bled the standard deduction so more time as I may consume. to finance tax cuts for the wealthiest working families keep more of what Madam Speaker, I rise in strong sup- Americans. they earn. We eliminated the alter- port of H.R. 5377, the Restoring Tax Finally, this bill isn’t about cutting native minimum tax for households Fairness for States and Localities Act. taxes for high earners. This bill is making less than $1 million. This bill would temporarily repeal the about tax fairness, ensuring that tax- This was important, because more SALT cap in order to restore fairness payers are not double-taxed by being and more families, including in high- in our tax code and provide Congress required to pay Federal income tax on tax States, especially in high-tax time to develop more comprehensive earnings they pay in State and local States, found the AMT canceled out tax reform. taxes and appeals to the core tenets of their charitable and SALT deductions The current cap on the State and our federalist system. completely. local tax deduction reflects the sloppy In the spirit of tax fairness, this bill Another myth that has been de- and cynical nature of the 2017 Repub- is responsibly offset by restoring the bunked is that tax reform hurts State lican tax bill. This bill was hastily top marginal rate back to 39.6 percent budgets. It is just the opposite. rammed through Congress in just 51 for the highest income bracket. Many States across America enjoyed days without a hearing, without an op- Madam Speaker, I reserve the bal- a windfall in new revenues, an average portunity to hear from State and local ance of my time. of 6 percent, with stronger economies, governments, and without an oppor- Mr. BRADY of Texas. Madam Speak- more workers, and an expanded tax tunity to hear from teachers or first er, I yield myself such time as I may base. responders. consume. California Governor Gavin Newsom Republicans decided from the begin- Madam Speaker, this bill is a tax cut wrongly predicted capping SALT would ning, from behind closed doors, to in- for the wealthy and a green light for result in lower revenues for California. clude a cap on SALT deductions in State and local politicians to raise In truth, his State brought in a whop- order to help finance their tax cuts for taxes on local families even higher. ping $3 billion more in personal income corporations and the rich. The Center for American Progress taxes than he predicted. It was the In my home State, California, aver- and the Center on Budget and Policy same story in all the high-tax States, age SALT deductions are $20,448. A Priorities are liberal organizations I including New Jersey. total of 6.5 million California families, don’t generally agree with, but today, I So the question is, what did these or 35.6 percent of tax filers, claimed the have to say I do. States do with their windfall? Did they deduction in 2017. The Center for American Progress pocket these extra dollars or did they The double taxation of earnings peo- has made it plain. They said repealing pass them through to their families ple have already paid in State and local the SALT cap shouldn’t be a high pri- and local businesses by reducing State taxes inhibit State and local govern- ority, in fact, that this is overwhelm- and local taxes? ments’ ability to fund even the most ingly a tax cut for the rich. To their credit, 13 States reduced vital of programs, including emergency The Center on Budget and Policy Pri- their SALT tax burden, but not in the services and public education. orities agrees. They said repealing the high-tax States, who need it most.

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00059 Fmt 7634 Sfmt 0634 E:\CR\FM\A19DE7.044 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE H12272 CONGRESSIONAL RECORD — HOUSE December 19, 2019 States like New Jersey actually in a fair, modern tax code, and the bill provides relief for 13.1 million raised their State and local taxes, positive growth in America since its re- Americans. while New York, Illinois, and Massa- moval is a clear demonstration of that It also doubles the deduction for chusetts are debating even higher fact. teachers’ out-of-pocket expenses and SALT taxes. One final thing: We often hear that creates a new deduction for first re- So if governors, legislators, and may- limiting the SALT deduction is double- sponders to offset work-related costs. ors keep raising local taxes with a taxation and unconstitutional. The Madam Speaker, I urge my col- SALT cap, imagine how high they will courts and tax policy experts have de- leagues to support tax relief to support raise them without it? bunked these myths. our teachers and first responders and There is a price to be paid from high We hear a lot about moocher States, pass this bill. State and local taxes. In truth, these but the only moochers in this debate Mr. BRADY. Madam Speaker, I yield are terrific States with dynamic econo- are the State and local politicians who the balance of my time to the gen- mies and really good people. But ac- think it is their money, and they are tleman from Nebraska (Mr. SMITH), the cording to MoneyWise.com, the four mooching off the backs of hardworking Republican leader of the Tax Policy Subcommittee, and I ask unanimous States Americans are fleeing from the families and small businesses in high- most are New Jersey, New York, Con- consent that he may control that time. tax States. The SPEAKER pro tempore. Is there necticut, and Illinois. I know my Democrat colleagues are Millennials, young people, are doing objection to the request of the gen- sincere in this effort. But with this tleman from Texas? the same, but you can add California to bill, you have officially claimed the that list. These young people love their There was no objection. mantel ‘‘party of the rich.’’ Mr. SMITH of Nebraska. Madam States, with good reason, but they just Madam Speaker, I strongly urge all can’t see a future there with high taxes Speaker, I yield myself as much time my colleagues to vote ‘‘no’’ on this bill. as I may consume. and impossibly high costs. And, again, I offer this: Republicans In the end, though, why should low- I must admit, I am a bit puzzled are committed to working with Demo- today as to why we are here for this tax States be forced, through the tax crats to make our tax code even more bill. Our work in the House is almost code, to subsidize high-tax States? competitive, to make our economy Why should a farmer in Nebraska done for the year. even stronger, and to never stop work- We have funded the Federal Govern- subsidize a banker in Manhattan? Why should a single mom in New Jer- ing to help the little guy in the middle ment and extended expiring programs like flood insurance. We are about to sey or a janitor in a building who class, and giving tax breaks to billion- pass USMCA with a record vote. Our doesn’t itemize their taxes subsidize aires, encouraging States to raise their Democratic colleagues can go home the billionaire in the penthouse who taxes even more is not the way to do it. Madam Speaker, I reserve the bal- and celebrate that they voted to make does? LeBron James, an iconic athlete, leg- ance of my time. history in impeaching the President. But apparently, before we go home endary really, of the Lakers, he will re- Mr. THOMPSON of California. for Christmas, we also need to give ceive an estimated $2.4 million tax Madam Speaker, I just want to point Ebenezer Scrooge a tax cut, even break next year because of the Demo- out that the irony of my friend’s testi- though we know the Senate won’t take crats’ bill, but the janitor and the beer mony today, my friend from Texas’ tes- up the bill. vendor in Staples Center, they get timony, shouldn’t be lost on any of us. Remember, it was the Republicans Before we get into the problems with nothing. today’s bill, we should review the Gerrit Cole, a former Astros, is going that created this problem with their tax bill. They did a tax bill that bene- positives of the Tax Cuts and Jobs Act, to the Yankees as their new ace. He which this bill seeks to undermine. will get an estimated $850,000 next fited corporations and the wealthiest people in the country, and then to say The Tax Cuts and Jobs Act lowered year, but that parking lot attendant at tax rates for all Americans and in- Yankee Stadium gets nothing. that somehow they are protecting reg- ular folks is really laughable. creased the child tax credit. That is what this bill does, because We doubled the standard deduction more than half of the SALT deduction That tax cut cost us, in the debt, $2.3 trillion. from $6,000 for individuals and $12,000 goes to millionaire and billionaire for married couples to $12,000 for indi- households. Madam Speaker, I yield 1 minute to the gentlewoman from New Jersey (Ms. viduals and $24,000 for couples. Madam Speaker, the SALT cap of And to help ensure Federal tax policy SHERRILL). $10,000 is higher than the national aver- doesn’t reward States and cities for Ms. SHERRILL. Madam Speaker, I age of SALT deductions, and because of raising their taxes sky high, we insti- thank my colleague, the gentleman Republican lawmakers in high-tax tuted a $10,000, very thoughtful, cap on from California (Mr. THOMPSON), for States, who weighed in aggressively State and local tax deductions to en- yielding. during tax reform, it can be used for sure Americans in low-tax States don’t I rise today to defend the taxpayers property, sales, or income taxes. And pay an unfair share of Federal taxes. the AMT, which is worth up to $10,000 of our country, people who believe in a Thanks to the combination of lower in tax breaks, was eliminated. strong America with great schools and rates, larger child tax credit, and high- Thanks to pro-growth tax reform, great infrastructure. er standard deduction under TCJA, for our U.S. economy has roared into gear Madam Speaker, I launched ‘‘12 Days example, a single mom with two kids as the most competitive economy on of SALT’’ last week to urge this House doesn’t pay a penny in Federal income the planet, with the lowest unemploy- to lift the 2017 tax bill’s $10,000 cap on tax until her income exceeds $53,000. ment in half a century, paychecks in- the State and local tax deduction. In other words, we ensure that that creasing the fastest in more than a dec- Today is the 11th day of SALT. I have mom doesn’t owe Federal income tax ade, wage growth outpacing inflation been on the floor for 11 days to talk until her income exceeds not just $15 by $1,000 a year for average working about this. This is an issue of tax fair- an hour, but $25 per hour. families, American manufacturing is ness, with people investing in their For Americans who do pay income back, and we have a million more job communities, in schools, and in infra- tax, the higher standard deduction openings than workers. structure only to face double-taxation means 29 million more households had America is once again a land of op- as the Federal Government punishes their tax returns simplified because portunity. these efforts. they could take the standard deduction Placing a cap on the SALT deduction The 2017 tax bill was an attack on instead of itemizing. to let middle-class families—not the New Jersey taxpayers. New Jersey al- How does the majority propose to im- wealthy—keep more of what they ready sends more money to Wash- prove our tax code today? Not by sim- earned is a crucial component of ington and gets back less than nearly plifying the code or ensuring our tax achieving this economic victory for every State in the country. code is more equitable, but by passing American workers and their families. Our bill will put money back in the a temporary—emphasis on ‘‘tem- That old, broken, regressive SALT pockets of our residents and commu- porary’’—tax cut, which largely bene- tax break for the wealthy has no place nities, and not just in New Jersey. This fits people with incomes between—

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00060 Fmt 7634 Sfmt 0634 E:\CR\FM\K19DE7.062 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE December 19, 2019 CONGRESSIONAL RECORD — HOUSE H12273 please, listen—$200,000 and $1 million other States long enough. We are ask- The TCJA reduced taxes for roughly 90 per- per year—perhaps a new definition of ing for fairness. It is wrong for conserv- cent of Americans and for taxpayers at every the middle class—paid for by perma- atives to be talking about having a tax income level through lower rates, the ex- on a tax. panded standard deduction, and the doubling nently increasing taxes on small busi- of the child tax credit. nesses. Madam Speaker, I urge passage of Furthermore, repeal of the Alternative Let me say that again. If you make this bill to have some equity in the tax Minimum Tax meant that 4.5 million fami- between $0 and $75,000, this bill does code. lies were able to claim $10,000 in SALT de- not give you tax relief, or a tax cut. Mr. SMITH of Nebraska. Madam ductions, as the AMT disallowed this deduc- If you make between $75,000 and Speaker, I include in the RECORD a se- tion. $200,000, there is a small chance you ries of statements in opposition to H.R. The SALT deduction subsidizes high tax, 5377 from Americans for Tax Reform, big government states. This deduction is could get a small tax cut. rarely used by middle class families as they If you make between $200,000 per year Americans for Prosperity, National Taxpayers Union, Heritage Action, and take the standard deduction instead of and $1 million per year, you have the itemizing. Capping this deduction has meant best chance of getting a tax cut. Parity for Main Street Employers. that the federal government is no longer pro- Madam Speaker, we should continue KEY VOTE: ATR URGES NO VOTE ON H.R. 5377, viding a benefit to upper income earners in working together to find ways to im- A PLEDGE VIOLATION blue states. prove the tax code for all Americans. Posted by Alex Hendrie on Wednesday, ATR urges a NO vote on this regressive This bill makes the code both more December 18th, 2019, 3:00 PM PERMALINK legislation that violates the Taxpayer Pro- tection Pledge. complex and less progressive. The House of Representatives is set to vote on H.R. 5377, the ‘‘Restoring Tax Fairness for Madam Speaker, I reserve the bal- States and Localities Act.’’ AFP KEY VOTE ALERT: VOTE NOONH.R. 5377, ance of my time. ATR urges a ‘‘NO’’ vote. THE RESTORING TAX FAIRNESS FOR STATES Mr. THOMPSON of California. This legislation is a violation of the Tax- AND LOCALITIES ACT Madam Speaker, I yield 1 minute to payer Protection Pledge, a commitment DECEMBER 16, 2019 the gentleman from New York (Mr. made by 218 members in the House and Sen- DEAR REPRESENTATIVES: On behalf of ate to oppose any and all net tax increases. Americans for Prosperity activists across KING), a great public servant and some- If passed into law, it will raise taxes on in- one who has partnered with us on a America, I urge you to vote NO on H.R. 5377, dividuals and small businesses that file the Restoring Tax Fairness for States and number of important issues. through the individual income tax system. Localities Act. Mr. KING of New York. Madam This bill trades a temporary rollback of the This vote may be recorded in our 2019 ses- Speaker, I thank the gentleman for SALT cap for a permanent rate hike. sion legislative scorecard. yielding. This legislation is a net tax increase of $2.4 H.R. 5377 would temporarily undo some of Madam Speaker, I stand in strong billion over the ten-year budget window, ac- the many benefits of the Tax Cuts and Jobs cording to the Congressional Budget Office. Act. Temporarily increasing the cap on the support of this legislation. I want to H.R. 5377 also rolls back the Tax Cuts and SALT deduction (from $10,000 to $20,000) commend my colleague, Congressman Jobs Act, passed by Republicans and signed would make the tax code less fair and more SUOZZI, for introducing it. into law by President Trump. ‘‘The Trump tax cuts reduced taxes across complex, but also increase bad incentives for Madam Speaker, I am really dis- state and local governments to raise taxes. appointed in my Republican col- the board. This legislation is step one toward abolishing the entire Trump tax cuts and in- The benefits of lifting the SALT cap would leagues. They are raising a class war- creasing taxes on the middle class, a key go to states with higher tax levels. Mean- fare argument. They sound like the goal of every Democrat presidential can- while, states with lower tax levels, like Flor- progressive left. didate,’’ said Grover Norquist, President of ida and Texas, will be once again forced to The fact is, one of the reasons why Americans for Tax Reform. subsidize the federal tax tab for states like cities like New York and counties like The legislation raises the cap on the state New York, California, and New Jersey. and local tax deduction from $10,000 to Moreover, H.R. 5377 would temporarily Nassau and Suffolk have had to raise raise the top tax rate on the highest earners their property taxes is because for 50 $20,000 for 2019 and removes the cap entirely for 2020 and 2021. and increase the number of taxpayers paying years, we have been subsidizing other The legislation also raises the top rate that rate—one of the very groups that will States. from 37 to 39.6% and lowers the threshold benefit from lifting the SALT cap. This Seventy percent to 80 percent of the that this top rate kicks in for all filing makes no sense. money we send to the Federal Govern- statuses. For these reasons, we urge you to vote NO ment comes back to us, the rest goes to Under current law, the 37 percent bracket on H.R. 5377. Sincerely, other States. So during all these years kicks in for a single filer at $518,400 in in- come. Under the legislation, the new top rate BRENT GARDNER, when they have been able to develop is increased to 39.6 percent and the threshold Chief Government Affairs Officer, using our money, we have had to raise is lowered to $441,475 of income. Americans for Prosperity. local taxes, and now they are turning Similarly, a family taking the married fil- it into class warfare. ing jointly status currently hits the 37 per- [From the National Taxpayers Union, Dec. These aren’t millionaires. The people cent bracket at $622,050 in income. Under the 19, 2019] in my district who are getting screwed legislation, this family will hit the 39.6 National Taxpayers Union urges all Rep- by this are not millionaires. They are bracket at $496,000 in income. resentatives to vote ‘‘NO’’ on H.R. 5377, the cops, they are firefighters, construc- REPEALING OR ROLLING BACK THE SALT CAP IS ‘‘Restoring Tax Fairness for States and Lo- REGRESSIVE tion workers, the people who answered calities Act.’’ This legislation would undo 94 percent of the benefits from repealing some of the many benefits of the Tax Cuts the call on 9/11. the SALT cap would go to taxpayers making and Jobs Act (TCJA), raise taxes on small What they are doing is undermining more than $200,000 a year. businesses across the country, and add to the the middle class. The left leaning Center for Budget and Pol- complexity of the federal tax code. What is middle class in other States icy Priorities has stated that this proposal Enacted in 2017, the TCJA made several may be different from mine. would be ‘‘regressive and costly.’’ important changes to the individual side of The reason we are high is because of The Center for American Progress has the federal tax code. By significantly reduc- the fact we have had to subsidize all stated that repeal of the SALT cap ‘‘should ing income tax rates and increasing the not be a top priority’’ as it would ‘‘over- the rest of them for all these years, standard deduction, the tax code is fairer whelmingly benefit the wealthy, not the and simpler than before. TCJA rightly re- sort of like when politicians come to middle class.’’ formed many deductions and credits to re- New York to raise their money and Senator Michael Bennet (D-CO) recently duce the complexity of the tax code, notably then go back home and vote against us. criticized efforts to repeal the SALT cap not- by capping the State and Local Tax (SALT) I will say that the strongest advocate ing that it runs counter to Democrat ideals: deduction. Prior to tax reform, the tax code for this—when this was first raised in ‘‘We can say we’re for a progressive tax bill allowed taxpayers to deduct an unlimited 1986 in leading to the defeat of the at- and for fighting inequality, or we can sup- amount of state and income and property port the SALT deduction, but it’s really hard taxes from their federal tax liability. As a tempt to take away SALT—was Donald to do both of those things.’’ Trump. He said the States that work result, many low-tax states were forced to REPEALING OR ROLLING BACK THE SALT CAP IS subsidize the choices of high tax states. the hardest would get hurt the most ALSO UNNECESSARY This legislation, however, would reverse because of this. While Democrats claim the SALT cap these positive alterations to the tax code by Now, also let me just say—and I will raised taxes, this is overstated and mis- increasing the top marginal tax rate, low- end on this—that we have subsidized leading. ering the threshold for which this rate kicks

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00061 Fmt 7634 Sfmt 0634 E:\CR\FM\K19DE7.063 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE H12274 CONGRESSIONAL RECORD — HOUSE December 19, 2019 in, and scrapping the cap on the SALT de- 2020 through 2025, after which the 37 percent lutely make those businesses less com- duction. Most concerningly, the effects of rate is scheduled to expire under current petitive in the world and would dampen uncapping SALT would disproportionately law. America’s renewed prosperity. benefit the wealthiest of our society. Accord- This rate hike would be used to offset re- Madam Speaker, even worse, the lief from the SALT deduction cap, including ing to IRS data from tax year 2015, over 84 $10,000 cap on deductibility of the percent of the benefit of the SALT deduction one year of marriage penalty relief (2020) and went towards those with incomes above two years of full relief from the cap (2021 and SALT deduction is more than suffi- $100,000. A mere 3.5 percent went to those 2022). While this SALT relief will benefit cient for over 90 percent of Americans. with income levels below $50,000. While some some pass-through businesses, those savings Lifting this $10,000 cap is a plain tax middle class taxpayers would see benefit will be reserved only for businesses residing cut for the rich. from this change, nearly all the benefit in certain states, while the tax hike will The Democrats’ constant complaint would be for those at the very top of the in- apply to businesses in all fifty states. about the Tax Cuts and Jobs Act is come scale. It would also undo a critical balance that it was a tax cut for the rich, which Ensuring all taxpayers keep more of their achieved in tax reform. The lower individual is simply untrue. But today, they pro- hard earned dollars was a priority of the income tax rates coupled with the 20-percent pose to fix it by giving an even bigger, TCJA, which is why only one percent of tax- pass-through deduction was designed to payers paid more in tax under the reformed maintain tax parity for passthrough busi- massive tax cut to the rich. That is tax system. However, giving a tax break to nesses and the new 21-percent corporate rate. correct, and let me repeat it. They the wealthiest among us, paid for by an in- EY recently reported that tax reform largely complain that the Tax Cuts and Jobs crease in the tax liability of small busi- succeeded in this balancing act, but only if Act was a tax cut for the rich, and they nesses, is not a good use of taxpayer dollars. the deduction and the lower individual tax want to fix it by giving an even bigger Many states have adopted pro-taxpayer re- rates stay in place. tax cut to the rich. forms due to TCJA and the SALT cap, so we The Parity for Main Street Employers coa- Fifty-two percent of the benefit of re- should not reverse course now. lition represents millions of individually and pealing the SALT cap goes to income Roll call votes on H.R. 5377 will be signifi- family owned businesses employing tens of earners making more than $1 million a millions of private sector workers in every cantly-weighted in NTU’s annual Rating of year, 52 percent. Ninety-four percent of Congress and a ‘‘NO’’ vote will be considered community and every industry, including the pro-taxpayer position. contractors, engineers, retailers, wholesaler- the benefit goes to income earners in distributors, manufacturers and more. On be- the top 10 percent of wage earners. [From Heritage Action for America, Dec. 18, half of these employers, we ask that you re- Madam Speaker, the Democrats 2019] consider this legislation. should stop trying to convince America Sincerely, CONGRESS SHOULD REJECT HANDOUTS FOR that they care about the middle class. American Council of Engineering Compa- HIGH-TAX STATE There is an old proverb: I can’t hear nies, Associated Builders and Contractors, what you are saying because your ac- WASHINGTON.—Heritage Action released Associated General Contractors of America, the following statement from Executive Di- Independent Community Bankers of Amer- tions speak so loudly. rector Tim Chapman: ica, National Association of Wholesaler-Dis- This legislation would be particu- The tax bill House Democrats have put on tributors, National Beer Wholesalers Asso- larly bad for poor and rural areas in the schedule this week claims to promote ciation, National Electrical Contractors As- States with low taxes, like Florida and fairness in the tax code, but it really pro- sociation, National Federation of Inde- Texas, which have no State income motes the interest of liberal states. It is any- pendent Business, National Roofing Contrac- taxes. The average SALT deduction in thing but fair. It will only benefit a minority tors Association, S Corporation Association, my home county is $1,800, well below of Americans at the expense of those who Wine and Spirits Wholesalers of America. have chosen to live in states with smaller the $10,000 cap. tax burdens. SALT deductions are nothing Mr. SMITH of Nebraska. Madam We had a hearing where we invited more than a federal subsidy for high state Speaker, I yield 6 minutes to the gen- mayors of affluent townships around and local taxes, which in turn makes individ- tleman from South Carolina (Mr. RICE), D.C. and in New York State. Their uals in lowtax states responsible for sub- an expert on tax policy. complaint was that, without the SALT sidizing more expensive governments else- b 1430 deduction, they would have difficulty where. in raising taxes on their residents. With the backdrop of partisan impeach- Mr. RICE of South Carolina. Madam Madam Speaker, the D.C. suburbs ment, House Democratic leadership is des- Speaker, today, I rise in strong opposi- have the highest household income in perate to hand legislative ‘‘wins’’ to their tion to this partisan bill that would the country. The median household in- members who represent purple districts. give millionaires and billionaires a tax House Republicans should not give them any come is over $100,000. I represent Mar- cover on this bill. It is nothing but a subsidy cut and do nothing to help the middle ion County, South Carolina, one of the to the most liberal states at the expense of class. poorest in the State. Fifty-seven per- the rest of the country. Americans should be The Tax Cuts and Jobs Act brought cent of its residents are African Amer- treated equally. prosperity throughout the Nation and ican. The median household income is to people of every demographic and around $30,000, less than a third of that PARITY FOR MAIN every income level. in the Washington suburbs. STREET EMPLOYERS, Unemployment is at 50-year lows, all- If this SALT cap is lifted, the income December 10, 2019. time lows for African Americans and taxes that the poor residents of Marion Hon. RICHIE NEAL, Hispanics. American economic growth Chairman, Committee on Ways & Means, House County pay, a portion of those will go of Representatives, remains the envy of the world. to subsidize the housing and the serv- Washington DC. After years of stagnation under the ices of the well-paid bureaucrats in the DEAR CHAIRMAN NEAL: The Parity for Main Obama administration, middle-class suburbs of D.C. Street Employers coalition has serious con- wages are growing at rates not seen in Their taxes are already used to pay cerns with the ‘‘Restoring Tax Fairness for over a decade. Opportunity has been re- the salaries of these folks, but now you States and Localities Act’’ to be considered stored in this land of opportunity. would have the poor rural residents by the House Ways and Means Committee to- How did the Tax Cuts and Jobs Act across America, not just Marion Coun- morrow. accomplish all this? Primarily, it cut ty, subsidize their taxes, as well. Individually and family owned businesses tax rates for businesses to make them organized as S corporations, partnerships Madam Speaker, yesterday, those and sole proprietorships are the heart of the more competitive in the world, espe- across the aisle voted to impeach American economy. They employ the major- cially small businesses that employ President Trump, who has done more ity of workers, and they contribute the most two-thirds of American workers. to rebuild the middle class than anyone to our national income. They also pay the H.R. 5377 eliminates the $10,000 cap since Ronald Reagan. The figures don’t majority of business taxes. A recent study by on the deductibility of State and local lie. Today, they introduce a bill that EY found that pass-through businesses pay taxes, referred to as the SALT deduc- would give a massive tax break to the 51 percent of all business income taxes. tion, and pays for it by raising the top highest wage earners. The legislation introduced today would rate from 37 percent to 39.6 percent. This bill would make our tax code raise these taxes by 1) increasing the top rate passthrough businesses pay from the This, however, is the rate paid by many more regressive. It would provide a current 37 percent to 39.6 percent and 2) low- of the small business owners that em- huge tax benefit to the 1 percent. This ering the income threshold of the top rate ploy all of those Americans and re- benefit would increase income inequal- from $622,050 to $496,600 (Joint) for the years stored our prosperity. This would abso- ity. The Democrats’ actions, Madam

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00062 Fmt 7634 Sfmt 0634 E:\CR\FM\A19DE7.049 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE December 19, 2019 CONGRESSIONAL RECORD — HOUSE H12275 Speaker, betray their loyalties, and So, you support the wealthier paying people should consider one of the largely those loyalties are not to the American more. What happens when you have a unexamined effects of the last tax bill, which middle class. deduction that you want to put back? Trump promised would help the middle class: Madam Speaker, I encourage all of I am sorry, but you know me and Would you believe it has inflicted a trillion dollars of damage on homeowners—many of my colleagues to think of American charts; it is a problem. I am working them middle class—throughout the country? workers and vote ‘‘no’’ on this legisla- on a 12-step group to deal with it. That massive number is the reduction in tion that will hurt the middle class. The fact of the matter is, the top 5 home values caused by the 2017 tax law that Mr. THOMPSON of California. percent of income earners get 77 per- capped federal deductions for state and local Madam Speaker, I thank the gen- cent of the benefit. You can’t intellec- real estate and income taxes at $10,000 a year tleman for pointing out that our bill is tually have it both ways. I mean, and also eliminated some mortgage interest paid for, unlike the TCJA, and the pay- aren’t your brains just exploding, say- deductions. The impact varies widely across for comes from the wealthiest earners. different areas. Counties with high home ing: Well, on the one hand, we want prices and high real estate taxes and where Madam Speaker, I yield 1 minute to you to give rich people these deduc- homeowners have big mortgages are suf- the gentleman from Connecticut (Mr. tions, but on the other hand, we want fering the biggest hit, as you’d expect, given LARSON), a great member of the Ways to tax rich people more, except for this the larger value of the lost tax deductions. and Means Committee. bill where we want to give the really, But as we’ll see, homeowners all over the Mr. LARSON of Connecticut. Madam really rich people the benefit. country are feeling the effects. Speaker, I rise to strongly support this You are going to get a chance. We are I’m basing my analysis on numbers from bill. I thank the gentleman for his ef- going to have an MTR. At least, this two well-respected people: Mark Zandi, the chief economist of Moody’s Analytics; and forts, and especially BILL PASCRELL, way, you can take it away from the Hugh Lamle, the retired president of M.D. who has been our passionate leader on really, really, really, really, really rich Sass, a Wall Street investment management the Ways and Means Committee, for people who make $100 million or more, company. his efforts on this very important saying they don’t get to take the SALT Zandi’s numbers are broad—macro-math, issue. deduction. We will see what level of as it were. Lamle (pronounced LAM-lee) is a What a spirit of Christmas is upon us super-rich people we are defending in master of micro-math. It was Lamle who today. It is great to see the bipartisan- this debate. first got me thinking about home value ship is continuing. I was so happy to losses by sending me an economic model that I understand, from a political stand- he created to show the damage inflicted on see PETER KING down in the well, talk- point, you are doing the right thing. high-end, high-bracket taxpayers in high-tax ing about what this means. You are doing the work from your dis- areas who paid seven digits or more for their I dare say, to my other colleagues, I trict. But at least we could be intellec- homes. would love to have Mr. RICE come and tually honest about the math. Lamle starts with the premise that home- visit Augie & Ray’s in East Hartford If you represent a district that has buyers have typically figured out how much and have him talk about how billion- high taxes, whether it be the income house they can afford by calculating how aires are being benefited. taxes or property taxes, coming and de- much they can spend on a down payment and monthly mortgage payment, adjusting the In Connecticut, we used to deduct, on fending SALT is fine. It makes sense. average, $19,000 in personal property latter by the amount they’d save via the tax But be honest about what the math deduction for mortgage interest and real es- taxes. Now, we get to deduct $10,000. means. If you are a donor State, it is tate taxes. His model figures out how much Why? So that we could pay 1 percent of because you have high incomes. If you prices would have to drop for the same the Nation 83 percent of your tax cut, want this, it is because you are defend- monthly payment to cover a given house which is unpaid for, paid for by work- ing your wealthy. now that this notional buyer can’t take ad- ing people. It is just math, and the math, Madam vantage of the real estate tax deduction and In our State, we send more money to Speaker, always wins. might not be able to take full advantage of the mortgage interest deduction. the Federal Government than we get in The SPEAKER pro tempore. The return. After I showed Lamle’s model to my Chair reminds Members to address ProPublica research partner, Doris Burke, The basic unfairness, established by their remarks to the Chair. she steered me to Zandi’s research, which I Lincoln back during the Civil War, is Mr. THOMPSON of California. realized could be used to calculate national that this is double taxation and espe- Madam Speaker, I yield 1 minute to value-loss numbers. cially hurts the blue-collar workforce the gentleman from Oregon (Mr. BLU- Ready? Here we go. The broad picture first, then the specific. This gets a little com- all across this great country, especially MENAUER). plicated, so please bear with me. in those States that go out of their way Mr. BLUMENAUER. Madam Speaker, to pay their own. Zandi says that because of the 2017 tax law, I appreciate the gentleman’s hard work U.S. house prices overall are about 4% lower The SPEAKER pro tempore. I remind on this. than they’d otherwise be. The next question Members to address their remarks to This is the largest transfer of wealth is how many dollars of lost home value that the Chair. in American history with the tax bill 4% translates into. That isn’t so hard to fig- Mr. SMITH of Nebraska. Madam of the Republicans. They kept the tax ure out if you get your hands on the right Speaker, I might add that Nebraska, break for corporations and they are numbers. the State that I represent, actually is Let me show you. hitting middle class families in my dis- The Federal Reserve Board says that as of considered to be a donor State, as well, trict. Four in ten average about $15,000 and there is great support for the March 31, U.S. home values totaled about a year. $26.1 trillion. Apply Zandi’s 4% number to SALT cap in Nebraska. But one of the things we haven’t that, and you end up with a $1.04 trillion set- Madam Speaker, I yield 3 minutes to talked about is the hit to home values. back for the nation’s home owners. That’s the gentleman from Arizona (Mr. Madam Speaker, I include in the right—a trillion, with a T. SCHWEIKERT). Please note that Zandi isn’t saying that RECORD an article by Allan Sloan in house prices have fallen by an average of 4%. Mr. SCHWEIKERT. Madam Speaker, Fortune magazine that talks about to my friends here, I wasn’t going to That hasn’t happened. What he’s saying is Trump’s trillion dollar hit to home- that on average, house prices are about 4% come up here and try to do firebrand or owners. the theater, but we do have a little mo- lower than they’d otherwise be. TRUMP’S TRILLION-DOLLAR HIT TO Given that the Fed statistics show that ment of intellectual inconsistency. HOMEOWNERS homeowners’ equity was $15.76 trillion as of Let’s try a quick thought experiment. March 31, Zandi’s numbers imply that home- We, as a body, my brothers and sis- By reducing deductions for real estate taxes, Trump’s 2017 tax plan has harmed mil- owners’ equity is down about 6.6% from ters on the left, you support a progres- lions—and helped give corporations a $680 where it would otherwise be. (That’s the $1.04 sive tax system, right? billion gift. trillion value loss divided by the $15.76 tril- lion of equity.) Well, Madam Speaker, if you support (by Allan Sloan) a progressive tax system, then the fact This is a very big deal to families whose In recent weeks, President Donald Trump biggest financial asset is the equity they of the matter is, if you have a high-in- has been talking about plans for, as he put have in their homes. And there are untold come earning State community, you it, a ‘‘very substantial tax cut for middle in- millions of families in that situation. pay more taxes. It is just a little line of come folks who work so hard.’’ But before While Zandi and I were having the first of intellectual consistency. Congress embarks on a new tax measure, several phone conversations, he sent me a

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00063 Fmt 7634 Sfmt 0634 E:\CR\FM\K19DE7.066 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE H12276 CONGRESSIONAL RECORD — HOUSE December 19, 2019 county-by-county list of the estimated a year who paid at least $1 million for their According to the Tax Policy Center, the home-price damage done to about 3,000 coun- homes. But the principle underlying Lamle’s Treasury will get $620 billion of additional ties throughout the country. I was fas- model applies to everyone who owns a home revenue over a 10-year period because people cinated—and appalled—to see that the big- or is interested in owning one. To wit: You can’t deduct their full state and local taxes. gest estimated value loss in percentage calculate the tax-law-caused loss of value by That, in turn, covers most of the 10-year, terms, 11.3%, was in Essex County, New Jer- figuring out how much a house’s price needs $680 billion cost of the income tax break that sey, the New York City suburb where I live. to fall for buyers’ or owners’ after-tax costs corporations are getting. So you can make a In case you’re interested—or just snoopy— to be the same now as they were before the case that my friends and neighbors and co- the four other counties that make up the tax law changed. workers in New York and New Jersey—and five biggest-losers list are: Westchester ‘‘People buying large-ticket items typi- many of you all over the country—are pay- County, New York, suburban New York City, cally focus on after-tax costs of ownership,’’ ing more federal income tax in order to help 11.1%; Union County, New Jersey, which is Lamle told me. ‘‘The amount that many corporations pay less federal income tax. adjacent to Essex County, 11.0%; New York buyers can afford is affected by limits on That, my friends, is the bottom line. County, the New York City borough of Man- their financial resources. Therefore, as their Mr. BLUMENAUER. By denying the hattan, 10.4%; and Lake County, Illinois, tax costs increase substantially because of the loss of tax deductions, they have less full SALT deduction, you are making suburban Chicago, 9.9%. it more expensive to buy homes, you You can find Zandi’s county-by-county list money available to pay for homes and to in our Data Store. Eyeball the list, and take on mortgage debt.’’ are having a lower resale value, it is a you’ll see that counties throughout the At the suggestion of one of my editors, I loss of net worth, plus there is about a country have home values lower than they asked Lamle to use a modified version of his 1 percent hit because of the higher in- would otherwise be. economic model to estimate the tax law’s terest rates that are going to come be- Here’s how it works. Zandi took what fi- impact on the value of a theoretical house in cause your tax bill of $2 trillion is on the New York City suburb of West Orange, nancial techies call the ‘‘present value’’ of the collar. the property tax and mortgage interest de- New Jersey, purchased for $800,000 in 2017 by a theoretical family with a $250,000 annual Madam Speaker, I strongly urge my ductions that homeowners will lose over colleagues to look at this to see how seven years (the average duration of a mort- income. Those home value and income num- gage) because of changes in the tax law and bers are very high by national standards— pervasive the hit is, not just to their subtracted it from the value of the typical but middle class by the standards of large income tax, but to their most precious house. That results in a 3% decline in na- parts of suburban Essex County. asset, their home value. tional home values below what they would Real estate tax on that theoretical house Mr. SMITH of Nebraska. Madam would run about $28,900 a year, according to otherwise be. Speaker, I reserve the balance of my statistics from the New Jersey state treas- The remaining one percentage point of time. value shrinkage, Zandi says, comes from the urer’s office. That tax used to be fully de- ductible for federal tax purposes. Now, it’s Mr. THOMPSON of California. higher interest rates that he says will result Madam Speaker, I yield 1 minute to from higher federal budget deficits caused by not deductible at all if you assume that the house’s owners are taking the standard de- the tax bill. He estimates that rates on 10- the gentleman from New Jersey (Mr. duction on their federal returns. Or that year Treasury notes, a key benchmark for PASCRELL), a leader and a very vocal even if they’re itemizing deductions, they’re mortgage rates, will be 0.2% higher than advocate of this bill. paying at least $10,000 of state income taxes, they would otherwise be, which in turn will Mr. PASCRELL. Madam Speaker, I which means they don’t get any benefit from make mortgage rates 0.2% higher. rise in strong support of H.R. 5377. deducting property taxes. Even though interest rates on 10-year According to Lamle’s calculations, this in- The bill is a carefully crafted and Treasury notes are at or near record lows as ability to deduct real estate tax has reduced balanced package of tax relief created I write this, they would be even lower if the the home’s value by $138,720, assuming a 5% to address the injustice done to our Treasury were borrowing less than it’s cur- mortgage rate. At a 4% rate, the value loss middle-class families by the SALT cap. rently borrowing to cover the higher federal is $173,400. (For the math and assumptions Remember, if you are rich, you get budget deficits caused by Trump’s tax bill. underlying these numbers, see his method- If Zandi’s interest-rate take is correct—it’s double taxed. If you are not so rich, ology below.) So if the family put up true by definition, if you believe in the law you get double taxed. $200,000—25% of the purchase price—to buy That is what we are talking about of supply and demand—even homeowners the house, more than half of that investment who aren’t affected by the inability to de- has been wiped out. here. It is the product of months of duct all their real estate taxes and mortgage Obviously, it’s impossible to prove that hard work by members of our com- interest costs are affected by the tax bill. Zandi and Lamle are right about the impact mittee and the working group led by How so? Because higher interest rates for they say the tax law is having (and will con- Mr. THOMPSON. buyers translate into lower prices for sellers tinue to have) on home prices, because and therefore produce lower values for own- I thank the gentleman from Cali- there’s no way to gauge the accuracy of their fornia for the time he spent on this and ers. numbers. But the logic is compelling. You can argue, as some people do, that real The loss in home values is crucial because for not giving up. I am grateful to our estate taxes should never have been deduct- it turns out that lots more people have big- many other colleagues from other ible because allowing that deduction is bad ger financial stakes in their houses than in States, blue and red. I also thank our economic policy that inflated home prices their stock portfolios, which have thrived as committee chair, the gentleman from and favored higher-income people over the Trump tax law turbocharged corporate Massachusetts, for his leadership and lower-income people. earnings and stock prices. hard work. I strongly urge all of my But even if you believe that, there’s no In fact, 73.5% of households that own question that eliminating the deduction for homes, stocks or both had bigger stakes in colleagues to support this important millions of homeowners inflicted serious fi- the home market than in the stock market, legislation. nancial damage on homeowners who had no according to David Rasnick, an economist at I am going to conclude with this, warning that a major tax deduction that the Center for Economic and Policy Re- Madam Speaker. They have only they were used to getting would be wiped search, who parsed Federal Reserve data at talked about one side—the other side out. my request. has done this—about what happens to As a result, homebuyers who had taken the Now, let’s put things in perspective, set those ‘‘millionaires’’ if, in the bill, we value of the real estate tax deduction into aside home value losses for a minute and pay for it by increasing the personal account when buying their homes had their talk about the cash that people are getting home values and finances whacked without from Trump’s 2017 tax law. It isn’t all that income tax from 37 percent to 39 per- warning. Interest deductions on mortgage much for most families. Households’ average cent, from where it was before. borrowings exceeding $750,000 were cut back, federal income tax has fallen by $1,260 a Have you subtracted that from what compared with interest deductions on up to year, according to the Tax Policy Center. you are going to get back on their $1 million under the old law—but that That average is skewed by big savings real- taxes? No, you haven’t, because you doesn’t affect anywhere near as many people ized by people with big incomes; the median have done it in a dishonest way. as the cap on real estate tax deductions does. family’s tax cut is only about half as much That is why the middle class gets (A brief aside: Among the modest winners as the average cut, by the Tax Policy Cen- shafted. Not this time. here are first-time buyers who purchased ter’s math. Mr. SMITH of Nebraska. Madam their homes after the tax law took effect and This means that—for taxpayers of higher benefited by paying less than they would income and more modest income—the in- Speaker, I continue to reserve the bal- have paid under the old tax rules.) come tax savings are likely small beer com- ance of my time. Now, to the micro-math. pared with the hidden loss inflicted on many b 1445 Lamle’s model isn’t applicable to most of them by lower house values. people because it works only for taxpayers Back to the main event. And some final— Mr. THOMPSON of California. with a household income of at least $200,000 but important—numbers. Madam Speaker, I yield 1 minute to

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00064 Fmt 7634 Sfmt 0634 E:\CR\FM\A19DE7.059 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE December 19, 2019 CONGRESSIONAL RECORD — HOUSE H12277 the gentleman from Illinois (Mr. trict, where the average SALT deduc- Mr. SUOZZI. Madam Speaker, I DANNY K. DAVIS), a great member of tion was nearly $21,000, more than dou- thank Chairman THOMPSON, Chairman our Ways and Means Committee. ble the current $10,000 limit. NEAL, and BILL PASCRELL for all of Mr. DANNY K. DAVIS of Illinois. It is about fairness for the married their hard work. I thank PETER KING, Madam Speaker, my congressional dis- teachers making $60,000 each, who now my Republican colleague from Long Is- trict is one of the most affected con- receive only half of the deduction of land who is retiring next year, who is gressional districts in the Nation, unmarried couples, effectively creating standing up for his constituents, as he ranking 38 among districts in highest a marriage penalty. always has. I thank the 50 cosponsors average SALT deductions. Over 105,000 It is about fairness for our local gov- of this bill, bipartisan cosponsors, who households benefited from SALT in my ernments that struggle to provide im- realize that we have to be, as someone district in 2017, with an average benefit portant services such as education, mentioned before, intellectually hon- of $19,400. Then the Republican tax law public safety, and infrastructure. est. increased taxes on millions of Illi- And it is about fairness for our teach- We need to be intellectually honest noisans and tens of millions of Ameri- ers and firefighters who get an addi- and recognize, number one, that 100 cans. tional deduction in this bill to help percent of this bill is paid for by the The SALT deduction is a bedrock them afford work-related expenses. wealthiest Americans. One hundred part of the tax code since its inception. The 2017 tax scam was unfair. The top percent of this bill is paid for by tax- It has been around since the beginning 1 percent and corporations got a mas- payers who make over $440,000 a year. of time. sive handout, while American families It is inaccurate to suggest that other If it ain’t broke, don’t fix it. We need were left holding the bag. people are subsidizing this other than A vote in support of this bill today to restore it and make sure that citi- the wealthy. This is being paid for 100 begins to restore that fairness, and I zens get the benefit in their commu- percent by the wealthy. urge my colleagues to support it. nities from their State government and Mr. SMITH of Nebraska. Madam This is called the Restoring Tax Fair- then be able to use it as a part of their Speaker, I reserve the balance of my ness for States and Localities Act. income tax. time. That name is exactly what this is Mr. SMITH of Nebraska. Madam Mr. THOMPSON of California. about: restoring fairness. Speaker, I reserve the balance of my Madam Speaker, I yield 1 minute to It is not fair. It is not fair that peo- time. the gentleman from Illinois (Mr. ple are paying taxes on taxes they have Mr. THOMPSON of California. SCHNEIDER), a great member of our already paid. It is not fair to State and Madam Speaker, I yield 1 minute to Ways and Means Committee. local municipalities that relied on this the gentleman from New York (Mr. Mr. SCHNEIDER. Madam Speaker, I tax deduction since the beginning of HIGGINS), a treasured member of the want to thank the chairman for recog- the tax code in 1913 that are now get- Ways and Means Committee. nizing me. ting a punch in the gut and trying to Mr. HIGGINS of New York. Madam Madam Speaker, I rise today in change the rules. Speaker, I thank the gentleman for strong support of H.R. 5377, the Restor- There is a reason that this has been yielding. ing Tax Fairness for States and Local- endorsed by so many different groups. Madam Speaker, there are many ities Act. This legislation seeks to fix It has been endorsed by teachers. It has issues with the Republican tax scheme, one of the most harmful provisions of been endorsed by firefighters, by police but the $10,000 State and local tax de- the 2017 Republican tax law: the $10,000 officers. duction cap is one of the most egre- limit on the State and local tax deduc- The SPEAKER pro tempore. The gious. The SALT deduction has been a tion. time of the gentleman has expired. fixture of the United States tax code Raising this unfair, punishing cap is Mr. THOMPSON of California. since the introduction of the Federal a top priority for the constituents I Madam Speaker, I yield the gentleman income tax in 1913 to acknowledge that represent. Forcing Americans to pay from New York an additional 30 sec- State and local taxes are paid for serv- Federal tax on the taxes they have al- onds. ices that the Federal Government does ready paid to their State and local gov- Mr. SUOZZI. Madam Speaker, it has not provide. ernment is double taxation and it is been endorsed by the U.S. Conference When State and local governments wrong. of Mayors. It has been endorsed by the lost part of that deduction, they were In my Illinois district, approximately National League of Cities, endorsed by taxed twice, so this is an issue, which 42 percent of filers use the SALT de- the National Association of Counties. has been said many times in the com- duction, and the average deduction is It is not fair, Madam Speaker, that mittee, of tax fairness. significantly higher, nearly double the my colleagues on the other side are While this legislation was a team ef- new cap. Even worse, the new $10,000 boasting that people are leaving places fort under the direction of MIKE cap applies equally to married and sin- like my State and moving to their THOMPSON, head of the working group, gle filers, creating a marriage penalty, States. the persistence of Members BILL PAS- further punishing joint filers. This is What happens? The people who are CRELL and TOM SUOZZI, who made their not fair to America’s middle class. left behind, low-and moderate-income persistence with clarity and insistence It is wrong that the burden of the tax people who can’t afford to move away, on fairness for their constituents, in- law that overwhelmingly benefits the get left behind holding the bag. spired all of us to fight to defend that most fortunate Americans—indeed, 83 My State and so many other States same fairness for ours. percent of the benefit of the 2017 law that are hurt by this existing GOP tax This is a good bill. I urge its support. went to the top 1 percent—it is unfair cut are subsidizing the other States in Mr. SMITH of Nebraska. Madam that the burden should lie in a narrow this Nation. My State sends $48 billion Speaker, I reserve the balance of my range of States like Illinois. a year more to the Federal Govern- time. H.R. 5377 would rectify these wrongs. ment than we get back. Mr. THOMPSON of California. I urge my colleagues to vote ‘‘yes.’’ Madam Speaker, I urge my col- Madam Speaker, I yield 1 minute to Mr. SMITH of Nebraska. Madam leagues to please support this. the gentlewoman from California (Ms. Speaker, I reserve the balance of my Mr. SMITH of Nebraska. I reserve the JUDY CHU), a great member of our time. balance of my time. Ways and Means Committee. Mr. THOMPSON of California. Mr. THOMPSON of California. Ms. JUDY CHU of California. Madam Madam Speaker, I yield 1 minute to Madam Speaker, how much time do I Speaker, I rise in support of H.R. 5377, the gentleman from New York (Mr. have remaining? which will stop the double taxing of SUOZZI), someone who has worked tire- The SPEAKER pro tempore. The gen- millions of Americans. lessly on this. You couldn’t get out of tleman from California has 14-3⁄4 min- Restoring the ability of Americans to his line of sight. No matter how early utes remaining. The gentleman from deduct their State and local taxes is I went to the gym, the gentleman Nebraska has 11 minutes remaining. about fairness. It is about fairness for would be waiting: ‘‘We have got to do Mr. THOMPSON of California. the households in my California dis- SALT.’’ Madam Speaker, I yield 1 minute to

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00065 Fmt 7634 Sfmt 0634 E:\CR\FM\K19DE7.069 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE H12278 CONGRESSIONAL RECORD — HOUSE December 19, 2019 the gentleman from Nevada (Mr. I thank Mr. THOMPSON and the com- than we receive back. We receive only HORSFORD), a great member of our mittee for the work that they have 84 cents for every dollar we send to committee. done on it. Bravo to all of you, and Washington. This imbalance is greater Mr. HORSFORD. Madam Speaker, I thank you from my constituents. than any other State and grows be- thank the chairman for yielding. Madam Speaker, as an original cosponsor cause of the SALT cap. Homeowners I appreciate the opportunity to rise of H.R. 5377, I rise in strong support of the are already seeing home values decline and speak in support of the Restoring Restoring Tax Fairness for States and Local- because of the SALT cap. Tax Fairness for States and Localities ities Act. Earlier in this year, I introduced Act, which includes my bill, the Sup- This legislation repeals the harmful cap on H.R. 515, with 20 of my colleagues, to port American Teachers Act of 2019, the State and Local Tax (SALT) Deduction in repeal this harmful tax provision. I am which will substantially increase the 2020 and 2021 and fixes the marriage penalty pleased to see my New York colleague current educators’ deduction expense in 2019 by doubling the SALT cap to $20,000 Mr. SUOZZI’s measure containing much for teachers. for married couples. of my bill here on the floor today. On average, teachers in Clark County This is welcome relief to the nearly 200,000 In conclusion, let me say we need to School District, the fifth largest dis- of my constituents and the millions of Ameri- reverse some of the harm the GPO’s trict in the country, which I represent, cans who are no longer able to deduct the full tax scam bill has inflicted on so many spend about $750 out of pocket on amount of State and Local Taxes they pay Americans, especially my New York school supplies for their classrooms. each year. constituents. Support H.R. 5377, and The starting year salary for those The 2017 Republican tax bill took a sledge- let’s be fair once and for all. teachers is $40,000. hammer to the SALT deduction by capping it b 1500 Kaitlyn Cline, a kindergarten teacher at $10,000 annually for both single filers and at Kay Carl Elementary School, also in married couples, essentially an assault on the Mr. SMITH of Nebraska. Madam Las Vegas, spends even more. Every middle class, the backbone of our country. Speaker, I yield 1 minute to the gen- year, Kaitlyn spends about $1,000 out of The SALT deduction is one of the few de- tleman from Texas (Mr. ARRINGTON). Mr. ARRINGTON. Madam Speaker, I her own pocket to give her class the ductions in the federal tax code that middle want to first commend my colleague educational experience they deserve. class families depend on, along with deduc- As Ms. Cline says: tions for medical expenses, charitable con- from New York (Mr. SUOZZI) for his passionate advocacy for his district. I As a teacher, I have to work extra hard on tributions, and mortgage interest. the side to help pay my bills and have extra Prior to this harmful cap, my constituents understand where his heart is, I under- money for work expenses. Any extra finan- claimed an average annual SALT deduction of stand his motives, I know they are cial relief that can be utilized, can make a $63,083 in 2017. More than half of all tax- pure, and it makes it a lot easier to huge difference. payers in my district claimed this credit in 201 work with people who approach public Today, I urge my colleagues to vote 7, and half of these taxpayers earned between policy that way. in favor of this bill. Let’s give the $75,000 and $100,00. But as I have mentioned to him in teachers the support they need and This legislation also doubles the educator committee, I think this is wrongheaded provide them the deduction for the ex- expense deduction for teachers and creates a and fundamentally bad public policy. It penses that they incur. new deduction for first responders for uni- certainly is not in keeping with bene- Mr. SMITH of Nebraska. Madam forms, tuition and professional development. fiting the general welfare of the public, Speaker, I would just add that there These hardworking and dedicated profes- restoring these SALT deductions. I am will be a chance here in a few moments sionals are part of the foundation of our local sure many of these points being made to answer the concerns that the prior communities and they deserve this much- earlier discourage localities and States speaker had, and I reserve the balance needed tax relief. from keeping their taxes low. They of my time. I urge my colleagues to vote YES on H.R. also penalize States like Texas who Mr. THOMPSON of California. 5377. keep their tax rates low, and the ma- Madam Speaker, I yield 1 minute to Mr. SMITH of Nebraska. Madam jority of the benefit of these deductions the gentlewoman from California (Ms. Speaker, in the interest of accuracy in will go to millionaires. That is not an ESHOO), a treasured member of the this debate, I would like to reiterate exaggeration. Over 50 percent of the Ways and Means Committee. that we doubled the standard deduction benefit will go to people who are mil- Ms. ESHOO. Madam Speaker, I am for all Americans—not just selective lionaires. In fact, 95 percent of the ben- proud to rise in support of H.R. 5377 groups, but all Americans. We doubled efit will go to folks who make over and am an original cosponsor of this that standard deduction, therefore, $200,000. That is real money in west legislation. helping the middle class, and I reserve Texas. I am going to put my full statement the balance of my time. The SPEAKER pro tempore. The in the RECORD, but let me just say a Mr. THOMPSON of California. time of the gentleman has expired. few things that are top-line—top-line— Madam Speaker, I yield 1 minute to Mr. SMITH of Nebraska. Madam for my constituents. There are over the gentleman from New York (Mr. Speaker, I yield the gentleman from 200,000 constituents’ households af- ENGEL), the chairman of the Foreign Texas an additional 30 seconds. fected by this in my congressional dis- Affairs Committee. Mr. ARRINGTON. Madam Speaker, I trict. Mr. ENGEL. Madam Speaker, I rise think one of the biggest problems I Now, someone was talking about today to support H.R. 5377, to begin to have with this, ultimately, is we are math. I think the original tax bill was repair some of the damage from the raising that top rate after we cut bad math. It charged $2 trillion to the GPO’s tax scam legislation which taxes, restored more freedom to the national debt. passed this House 2 years ago. markets, and unleashed growth and job Fair? No. It was an assault on the I said it at the time, and I say it creation, all a tremendous response middle class. Let’s be perfectly clear again: It is one of the worst bills I have from the Tax Cuts and Jobs Act, and about this. ever seen, and it blows a hole in the now we are putting a tax burden on the And what has the middle class done budget. American people. to anyone here? They are the backbone So much for fiscal responsibility on We are raising taxes on small busi- of our country. They have four major the other side of the aisle. nesses. One-third of the taxes being things to deduct: mortgage interest, One of the more egregious provisions raised here will fall on small busi- SALT, charitable deductions, and in that bill was capping State and local nesses, mom-and-pop shops, commu- health expenditures. tax deductions at $10,000. This deduc- nity banks, and family farmers. Main So what did the Republicans’ tax bill tion has been part of our tax code for Street will be negatively affected in a do? It screwed the middle class, in over 150 years. big way. plain English. This cap hurts my constituents, who So I urge my colleagues to vote ‘‘no’’ So this restores that deductibility, often have property, income, and sales on this legislation. and they deserve to have it. taxes exceeding $10,000. Mr. THOMPSON of California. This bill is paid for. I think that is New Yorkers already pay more to the Madam Speaker, I yield 1 minute to good math, and I think it is fair. Federal Government as a donor State gentleman from Illinois (Mr. CASTEN).

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00066 Fmt 7634 Sfmt 0634 E:\CR\FM\K19DE7.070 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE December 19, 2019 CONGRESSIONAL RECORD — HOUSE H12279 Mr. CASTEN of Illinois. Madam come together to end the SALT cap We have to understand that 90 per- Speaker, I rise in support of H.R. 5377. and repeal such a punitive mistake. cent of U.S. businesses are I want to start by thanking my col- Mr. SMITH of Nebraska. Madam passthroughs. They don’t pay the cor- leagues across the aisle for passing the Speaker, I reserve the balance of my porate tax rate. They pay under the in- Tax Cuts and Jobs Act. My predecessor time. dividual tax rate. Almost 100 percent of campaigned on it, and I wouldn’t be Mr. THOMPSON of California. all passthrough businesses have less here otherwise, so I thank them all. Madam Speaker, I yield 1 minute to than 100 employees. We are increasing It is important to understand we the gentlewoman from California (Ms. taxes permanently on all these small need to pass this bill to undo the dam- PORTER). businesses in exchange for that short- age done by that bill and the hurt it Ms. PORTER. Madam Speaker, I rise term change. gave to middle-class families, teachers, today in support for the Restoring Tax I support multiple active bills that and first responders across the coun- Fairness for States and Localities Act. would change the State and local tax try. From the very first tax code in Over the last year, I have heard a re- deduction without raising any taxes on 1913, we have included allowing a de- sounding message from Orange County individuals and small businesses. It is duction for State and local taxes for families, from Republicans, Democrats, important to remember that the only the simple reason that we shouldn’t and Independents alike. We must re- SALT deduction legislation that will tax people twice. peal the harmful SALT limits included ever provide relief is legislation that It is not just going back to 1913. Our in Trump’s tax law. can be signed into law, and this bill Founders got that point as well. Alex- When that law capped State and local which permanently raises taxes on in- ander Hamilton in Federalist 32 wrote tax deductions, it raised taxes on tens dividuals and small businesses is not it. that independent and uncontrollable of thousands of Orange County fami- In my district, from Main Street to authority to raise their own revenues lies. wineries on the North Fork, this is bad for the supply of their own wants would The average SALT deduction in my news for small businesses up and down be a problem. district is over $22,000, and by capping Long Island. I am focused on providing What Hamilton understood is that the deduction at only $10,000—less than true tax relief for all hardworking certain services—roads, schools, fire half that amount—Orange County fam- Long Islanders. departments, and libraries—are better ilies are being double taxed on the The SPEAKER pro tempore. The and more efficiently provided by local money they earned. The SALT cap also time of the gentleman has expired. authorities, and when we double tax- imposes a marriage penalty, and it is, Mr. SMITH of Nebraska. Madam ation, we create a fight between Fed- therefore, antifamily. Speaker, I yield the gentleman from eral and local authorities for finite re- Reversing SALT is bipartisan. I New York an additional 30 seconds. sources to the detriment of those crit- heard this in April when I held a tax Mr. ZELDIN. It is unfortunate that, ical local services. townhall in April. My constituents at the end of the day, when the dust Repeal the State and local tax deduc- simply could not understand why Re- has settled, they will continue to be tion in the Tax Cuts and Jobs Act. Madam Speaker, I urge my col- publicans and Democrats could not the victims of out-of-State and out-of- leagues to vote ‘‘yes’’. come together to address the SALT touch congressional leadership putting Mr. SMITH of Nebraska. Madam problem and help middle-class families politics over commonsense, realistic Speaker, I reserve the balance of my in California while Halliburton, Ama- solutions. time. zon, and Chevron paid no Federal in- My colleagues know I am eager to Mr. THOMPSON of California. come tax in 2018. work with them to fix this legislation, Madam Speaker, I yield 1 minute to The SPEAKER pro tempore. The so we can actually get this across the the gentleman from Minnesota (Mr. time of the gentlewoman has expired. finish line and signed into law to pro- PHILLIPS). Mr. THOMPSON of California. vide true tax relief for hardworking Mr. PHILLIPS. Madam Speaker, I Madam Speaker, I yield the gentle- Americans. But, unfortunately, that rise today in support of H.R. 5377, the woman an additional 20 seconds. very temporary change to SALT in ex- bipartisan Restoring Tax Fairness to Ms. PORTER. Our families should change for that permanent tax increase States and Localities Act, legislation not be penalized by double taxation. for individuals and small businesses is that will provide immediate relief to I thank Chairmen Neal and Thomp- why I can’t support this bill in its cur- American families. son for their work on this important rent form. Elimination of the State and local bill, and I urge support from my col- Mr. THOMPSON of California. tax deduction in the 2017 tax law was a leagues on both sides of the aisle. Madam Speaker, I just want to remind bad deal for the State of Minnesota, Mr. SMITH of Nebraska. Madam the gentleman that, although I appre- the people of my district, and millions Speaker, I yield 2 minutes to the gen- ciate that he wants to get rid of the across the country. In fact, the SALT tleman from New York (Mr. ZELDIN). cap, you can’t do it without paying for cap is a punishment for States that in- Mr. ZELDIN. Madam Speaker, I rise it. That is the same irresponsible be- vest in schools, roads, and people, and in opposition to this bill. havior that the Republicans employed it is punishment to hardworking fami- First off, I do want to thank my col- in their tax bill, and it cost us $2.3 tril- lies in those States who deserve our ap- league from Long Island, Mr. SUOZZI. lion in our national debt. preciation and gratitude—not a tax in- Mr. SUOZZI and I have engaged in many Madam Speaker, I yield 1 minute to crease. conversations about this important the gentleman from New Jersey (Mr. Matthew and Karen are two edu- issue, and I am sure that that will con- GOTTHEIMER). cators in my district who bought a tinue after today’s debate. Mr. GOTTHEIMER. Madam Speaker, home for their young family just 3 I would like to clear up a few things I rise today in support of H.R. 5377 to years ago. Now, with the increased tax about this legislation before us today finally deliver the tax cuts so des- burden, they face the real prospect of to cut through some of what has been perately needed for families and busi- losing their home and having to move debated. nesses in my district in northern New farther away from their kids’ school This bill permanently hikes taxes on Jersey. and community. individuals and small businesses to 39.6 I thank Chairman NEAL for his lead- I am fighting hard for this bill, and I percent for those currently in the 37 ership on this legislation which will ul- am on a mission to make the tax code percent tax bracket—and for many in timately save the Fifth District tax fil- more equitable for the people of my the 35 percent tax bracket as well—in ers $5.6 billion each year. That is just State—one that already shares much exchange for a very temporary change in my district alone. more of its hard-earned money with of the SALT deduction only until 2021. Today, I released a tax cut model to Washington than it gets back in re- So the SALT deduction is going to show, at every income level, the mas- turn—and particularly for people like change very temporarily, but perma- sive tax cuts that families in the Fifth Matthew and Karen. nently we are going to be increasing Congressional District of New Jersey So, Madam Speaker, I urge my col- taxes on individuals and small busi- will see as a result of this bipartisan leagues on both sides of the aisle to nesses. bill. Not only will this bill cut taxes,

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00067 Fmt 7634 Sfmt 0634 E:\CR\FM\K19DE7.072 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE H12280 CONGRESSIONAL RECORD — HOUSE December 19, 2019 but it also helps increase our property precedented $10,000 tax cap punishing the gentlewoman from the District of values and drives economic growth, taxpayers in districts like mine. Columbia (Ms. NORTON). which is why the New Jersey Chamber In 2017 my district had the highest Ms. NORTON. Madam Speaker, I of Commerce and the New Jersey Real- average SALT deduction in Virginia at thank my good friend from California tors have both come out in support of almost $18,000 and the greatest number for yielding. the legislation. of households claiming SALT at Madam Speaker, Americans fa- We have to fix the mess caused by 213,500—more than half of my district. mously complain about taxes. Who can the 2017 tax hike bill in the moocher The SALT cap is unfair and punitive, then blame residents of the District of States and provide actual tax cuts for hurting Virginians and over 11 million Columbia, where 40 percent claim the New Jersey families, first responders, Americans. Hardworking taxpayers de- SALT deduction, among the largest and small businesses. serve better. number of taxpayers in the country? Ever since I joined Democrats and Today we have an opportunity to do By allowing at least a $10,000 deduc- Republicans in voting against the tax better, to restore this tax relief and tion, the 2017 Republican tax law con- hike bill, I have been fighting to fully put money back in the pockets of cedes that it imposes double taxation. reinstate SALT and finally cut taxes 150,000 households in my district and The Republican tax law was particu- for north Jersey families. It is time we many, many more across the country. larly nefarious because it virtually tar- fought back against the moocher Madam Speaker, I urge all of my col- geted blue states, whose top taxes sup- States who literally stole $800 billion leagues to support this important leg- port values like funding for local pub- right out of our pockets. I am sick and islation. lic education. We cannot, of course, protect Americans from taxes, but ever tired of paying the bill of the moocher b 1515 States. This is a huge win for New Jer- since the passage of the Federal in- sey families and an actual tax cut. Mr. SMITH of Nebraska. Madam come tax law in 1913, we have protected Madam Speaker, I urge my col- Speaker, I yield 2 minutes to the gen- them from being taxed on dollars al- leagues to vote ‘‘yes.’’ tleman from New York (Mr. ZELDIN). ready taxed by State and local govern- Mr. SMITH of Nebraska. Madam Mr. ZELDIN. Madam Speaker, I ments. The Restoring Tax Fairness for Speaker, I would remind my colleague think it is important to reiterate the States and Localities Act ensures that who just spoke that the average family fact that this bill is just a very tem- wisdom. of four in his district received a benefit porary change to the SALT deduction Mr. THOMPSON of California. through the Tax Cuts and Jobs Act of until 2021 in exchange for a permanent Madam Speaker, may I inquire how about $5,000 per year. increase to taxes on individuals in much time I have remaining. The SPEAKER pro tempore. The gen- Madam Speaker, I yield 1 minute to small businesses. tleman from California has 51⁄4 minutes the gentleman from California (Mr. While we are having this debate, I remaining. The gentleman from Ne- LAMALFA). think it is also really important to braska has 31⁄2 minutes remaining. Mr. LAMALFA. Mr. Speaker, last point out that the reason our State and Mr. THOMPSON of California. night we were in the twilight zone, and local tax deduction was as high as it Madam Speaker, I yield 1 minute to now we are in a parallel universe was is because our State and local the gentlewoman from New York (Mrs. today. Very interesting what we are taxes are as high as they are. CAROLYN B. MALONEY), the chair of the doing here. As we take this opportunity on this floor, let’s send a message to Mayor de Committee on Oversight and Reform. I come from the high-tax State of Mrs. CAROLYN B. MALONEY of New California, where we bear the cost of so Blasio in New York City, and Gov- ernors and State legislators in Albany, York. Madam Speaker, I thank my many tax increases from Sacramento. friend for yielding and for his great So all we are doing here is justifying New Jersey, and California, that all levels of government have a role to leadership. the increase in the car tax, the in- Madam Speaker, there was a lot play in tax relief. That is why our crease in the gas tax, and spending the wrong with the 2017 Republican tax State and local tax deduction was as money on a dead high-speed rail law. This week, we can fix part of it by high as it was. project, the increase from a mysterious repealing the cap on the State and To deliver for my constituents on the gas tax, and the cap-and-trade tax. local tax deduction, or SALT. All we are going to do here is reward east end of Long Island, for people in The SALT deduction allows tax- bad behavior in California and five or our entire State, and for Governor payers to deduct from their Federal six other high-tax States. Cuomo and the Democrats running Al- taxes the State and local income prop- Instead, let’s get back on track with bany right now watching this, do your erty taxes they pay. Republicans doing things that cause jobs to happen, part. My people in my district are des- capped the SALT deductions at $10,000, as the bill that our Democrat col- perate for relief, and Congress far, far less than many New Yorkers leagues don’t like. They didn’t like shouldn’t try to bail you out time and pay. It has caused a great deal of pain Proposition 13, which has saved homes time again. for many New Yorker families. in California. They have been com- We will stand here and fight for you. There is also a marriage penalty in plaining about it ever since it was That is why I support multiple bills the law. So if two people who each have passed. that will make a change to the State $10,000 in SALT get married, their com- Now they are trying to eviscerate and local tax deduction. But ironically, bined deduction goes from $20,000 to Prop 13 and raise taxes on businesses. this is a bill that makes it worse $10,000 when they tie the knot. That This will justify that ability to do through a temporary change for the doesn’t make sense. that. Don’t send a message that they SALT deduction in exchange from a The bill before us, H.R. 5377, intro- can raise taxes in California or other permanent tax increase. So now, they duced by my colleague, TOM SUOZZI, ad- States any more by what happens in are getting screwed both ways. dresses both of these issues. It lifts the this place. I am a little different from some of cap for married couples to $20,000 in Mr. THOMPSON of California. my colleagues. I had some opposition 2019. It eliminates the cap entirely for Madam Speaker, I yield 1 minute to to the bill in 2017, and I am opposed to the following 2 years and pays for it by the gentlewoman from the State of this bill as well. restoring the previous top marginal tax Virginia (Ms. WEXTON). For those Democratic politicians who rate. Ms. WEXTON. Madam Speaker, I rise are in New York City and Albany and Madam Speaker, I urge my col- today in strong support of H.R. 5377, putting the screws to my constituents leagues to support H.R. 5377. the Restoring Tax Fairness for States because they only know how to raise Mr. SMITH of Nebraska. Madam and Localities Act. taxes and they don’t know how to Speaker, I am prepared to close, if The SALT deduction has protected spend wisely, start doing your part be- there are no other speakers on the Virginia taxpayers from double tax- cause that is why our SALT deduction other side, and I reserve the balance of ation for over 100 years, but that was as high as it was for so long. my time. changed when Donald Trump and con- Mr. THOMPSON of California. Mr. THOMPSON of California. gressional Republicans imposed an un- Madam Speaker, I yield 1 minute to Madam Speaker, I am prepared to

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00068 Fmt 7634 Sfmt 0634 E:\CR\FM\K19DE7.073 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE December 19, 2019 CONGRESSIONAL RECORD — HOUSE H12281 close, and I reserve the balance of my and call on Congress to permanently repeal New York last year putting critical services at time. it, for homeowners, for our communities, and risk. Mr. SMITH of Nebraska. Madam for the first responders who work every day Some of my colleagues claim that the SALT to keep those communities safe. deduction will just benefit the wealthy. Wrong. Speaker, I yield myself such time as I Further, the Tax Cuts and Jobs Act hit law may consume. Madam Speaker, in the enforcement officers with another tax in- In 2016, 1.2 million New Yorkers used the interest of spreading holiday cheer, I crease when it eliminated their ability to de- SALT deduction, and more than half of those will be brief. duct work-related out-of-pockets expenses. taxpayers earned less than $100,000 per year. I believe the bill we are about to vote Like many public servants, law enforcement We are not talking about a loophole used by on is bad policy. If you look at the officers serve our nation and our commu- the richest Americans—many of which, I will SALT cap, it is good policy. nities for modest wages and often have to point out, were preserved in the Republican A State that has lower taxes should pay for mandatory and necessary equipment Tax Scam. We are talking about the largest and training out-of-pocket. These out-of- not be forced to pay more to subsidize deduction for the teachers, office workers, and pocket costs are significant and a financial first responders who make up the middle class a State that has higher taxes. There burden on officers. NAPO supports the inclu- are generally reasons that a State is a sion of the Supporting America’s First Re- in my district. higher tax State, and that was gen- sponders Act, which would reinstate deduc- We must remove this cap and stop pun- erated locally or at that State level. tions for certain, significant work-related ishing the hard-working people of New York But I think it is bad policy, as Mr. out-of-pocket expenses for first responders. simply because of where they live. I urge my ZELDIN was pointing out, to have a per- NAPO stands ready to support any efforts colleagues to vote yes on this bill. The SPEAKER pro tempore. All time manent tax increase to pay for a tem- necessary to pass this legislation. Sincerely, for debate has expired. porary tax benefit. That is bad policy. WILLIAM J. JOHNSON, CAE, Pursuant to House Resolution 772, Madam Speaker, I yield back the bal- Executive Director. the previous question is ordered on the ance of my time. Mr. THOMPSON of California. bill, as amended. Mr. THOMPSON of California. Madam Speaker, the fact is that cap- The question is on the engrossment Madam Speaker, I yield myself such ping the SALT deduction is a signifi- and third reading of the bill. time as I may consume. cant tax increase for many suburban The bill was ordered to be engrossed Madam Speaker, I point out that homeowners, including law enforce- and read a third time, and was read the their provision is temporary as well, ment officers. This puts them squarely third time. just not as temporary. in the range of middle-class taxpayers MOTION TO RECOMMIT Madam Speaker, the National Asso- that the Tax Cuts and Jobs Act was Mr. RICE of South Carolina. Madam ciation of Police Organizations in their supposed to help. Instead, with the Speaker, I have a motion at the desk. letter to us wrote: ‘‘Our members are SALT deduction cap at $10,000, many The SPEAKER pro tempore. Is the not just first responders; they are also first responders are finding themselves gentleman opposed to the bill? citizens of the communities in which on the wrong end of a tax hike. Mr. RICE of South Carolina. I am in they work.’’ We support the 2-year repeal of the its present form. Madam Speaker, I include in the cap and call on Congress to perma- The SPEAKER pro tempore. The RECORD a letter from that organiza- nently repeal it for homeowners, for Clerk will report the motion to recom- tion. our communities, and for first respond- mit. NATIONAL ASSOCIATION OF POLICE ers who work every day to keep those The Clerk read as follows: ORGANIZATIONS, INC. communities safe. Mr. Rice of South Carolina moves to re- Alexandria, Virginia, December 10, 2019. Madam Speaker, I want to take a commit the bill H.R. 5377 to the Committee Hon. RICHARD NEAL, on Ways and Means with instructions to re- Chairman, Committee on Ways and Means, quick moment, as we head into this port the same back to the House forthwith House of Representatives, holiday season, to offer my apprecia- with the following amendment: Washington, DC. tion to the Committee on Ways and In the matter proposed to be inserted by Hon. KEVIN BRADY, Means tax staff. The Members who section 2(a), insert ‘‘if the adjusted gross in- Ranking Member, Committee on Ways and serve on the Committee on Ways and come of the taxpayer for such taxable year Means, Means already know that they have does not exceed $100,000,000,’’ after ‘‘January House of Representatives, 1, 2020,’’. the hardest working men and women In section 3, strike subsection (a) and in- Washington, DC. on the Hill at their disposal. This bill DEAR CHAIRMAN NEAL AND RANKING MEM- sert the following: would not have been possible without (a) IN GENERAL.—Section 164(b) of the In- BER BRADY: On behalf of the National Association of their commitment, policy expertise, ternal Revenue Code of 1986, as amended by Police Organizations (NAPO), representing dedication, and hard work. section 2, is further amended by adding at over 241,000 sworn law enforcement officers I want to take a minute to thank my the end the following new paragraph: across the nation, I am writing to you to ex- subcommittee staff director, Aruna ‘‘(8) SUSPENSION OF DOLLAR LIMITATION ON STATE AND LOCAL TAXES FOR 2020 AND 2021.— press our full support for the Restoring Tax Kalyanam; the lead staffer on the Fairness for States and Localities Act. ‘‘(A) IN GENERAL.—In the case of any tax- SALT deduction, Peg McGlinch; my able year beginning in 2020 or 2021, subpara- Throughout this country, law enforcement senior counsel, Terri McField; as well officers go to work every day with one goal graph (B) of paragraph (6) shall not apply. in mind: to keep their communities safe. In as Scott La Rochelle, Arjun Ghosh, Lee ‘‘(B) EXCEPTION FOR CERTAIN HIGH-INCOME order to achieve this mission, they receive Slater, and Andrew Grossman on the TAXPAYERS.—Subparagraph (A) shall not support from the communities they serve, as committee for their tremendous ef- apply to any taxpayer for any taxable year if public safety budgets across the United forts. They do great work, and we the adjusted gross income of such taxpayer States are largely drawn from state and for such taxable year exceeds $100,000,000.’’. should all be really glad that they are In the matter proposed to be inserted by local property, sales, and income taxes—es- here. All Americans should be. each of sections 4(a), 4(b)(2), 5(a), and 5(c), sential investments that give our first re- Madam Speaker, I urge all of my col- strike ‘‘$500’’ and insert ‘‘$1,000’’. sponders the tools they need to get the job leagues to support this bill, and I yield done. The state and local tax (SALT) deduc- Mr. RICE of South Carolina (during back the balance of my time. the reading). Madam Speaker, I ask tion has helped support these vital invest- Mr. NADLER. Madam Speaker, I strongly ments at the state and local level. unanimous consent to dispense with Our members are not just first responders; support this legislation to eliminate the cap on the reading. they are also citizens of the communities in the State and Local Tax (or SALT) deduction. The SPEAKER pro tempore. Is there which they work. The fact is that the cap- Two years ago, Republicans capped the SALT objection to the request of the gen- ping of the SALT deduction is a significant deduction to force districts represented by tleman from South Carolina? tax increase for many suburban homeowners, Democratic Members to pay for the bulk of There was no objection. including law enforcement officers. This puts their Tax Scam. That cap raised over $662 bil- The SPEAKER pro tempore. Pursu- them squarely in the range of middle-class lion in revenue for Republican tax priorities, ant to the rule, the gentleman from taxpayers that the Tax Cuts and Jobs Act (Public Law No. 115–97) was supposed to help. nearly all of it from Democratic states like New South Carolina is recognized for 5 min- Instead, with the SALT deduction capped at York. New York State already pays $48 billion utes in support of his motion. $10,000, many first responders are finding more to the Federal government than it gets Mr. RICE of South Carolina. Madam themselves on the wrong end of a tax hike. back, and the loss of the SALT deduction was Speaker, my motion to recommit is We support the two-year repeal of the cap responsible for a $2.3 billion revenue hole in very simple.

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00069 Fmt 7634 Sfmt 0634 E:\CR\FM\K19DE7.075 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE H12282 CONGRESSIONAL RECORD — HOUSE December 19, 2019 Despite the terms of the underlying Madam Speaker, if we truly are for I yield to the gentlewoman from bill, it would retain the $10,000 cap on the middle class, if we truly are for the California (Ms. PORTER). the SALT deduction only for tax re- downtrodden, if we want to support our Ms. PORTER. Madam Speaker, when turns where the people earn more than firefighters and our teachers, vote for Congress enacted the first income tax $100 million a year. this motion to recommit. in 1861, in the midst of the Civil War, it This would produce about $7 billion Keep the SALT deduction in place for included the first exemption for State in savings, and we would apply the $7 the wealthiest of the wealthy, only and local taxes. billion to doubling the deduction for those who are earning $100 million a President Trump’s tax law violated firefighters and teachers’ supplies from year or more. Surely, they can afford our Nation’s long-held views of States’ $500, which is provided in the under- to pay for their property taxes on their rights and a limited Federal Govern- lying bill, to $1,000. mansions without subsidies from rural ment. Madam Speaker, my friends across people like the people in Marion, South It has long been accepted in America the aisle love to say that they are the Carolina. that we do not tax the same income party of the downtrodden and the mid- If we really believe that we want to twice. Federal taxation must not crowd dle class, but their actions certainly back the middle class, let’s back up our out the taxes needed to support critical speak a lot louder than their words. words with actions. State and local functions like good The underlying bill here is a plain give- Madam Speaker, I yield back the bal- schools, roads, and bridges. That prin- away to the rich. Let me say that ance of my time. ciple was first stated in the Federalist again: It is a plain giveaway to the Papers. It is a core component of b 1530 rich. States’ rights, and it was attacked by In excess of 50 percent of the benefit Mr. MALINOWSKI. Madam Speaker, Trump’s tax law. of restoring or taking away the SALT I rise in opposition to this motion. The SALT deduction expresses the cap goes to the top 1 percent of wage The SPEAKER pro tempore. The gen- longstanding American preference of earners. Madam Speaker, 94 percent— tleman from New Jersey is recognized local solutions to local problems. 94 percent—of the benefit of doing for 5 minutes. President Trump’s tax law hurts away with the SALT cap goes to wage Mr. MALINOWSKI. Madam Speaker, California communities. By limiting earners that are in the top 10 percent let’s talk about who actually takes the the deductibility of State and local of American wage earners. SALT deduction. taxes, the Trump tax law was a direct Please, Madam Speaker, my friends In my district in New Jersey, they threat to States and communities that across the aisle should stop saying that are not rich. They are teachers. They are investing in local services. Over the they are for the middle class. are firefighters. They are small busi- long-term, it will cause local govern- I represent an area in South Caro- ness owners. They are young families ments to slash revenue that funds lina. I live in Horry County, South who want to buy a home, seniors who schools, healthcare, transit, parks, and Carolina. The average SALT deduction want to stay in theirs. first responders. is $1,800. The SALT cap of $10,000 is five And then in 2017, House Republicans This bill will not only help middle- times higher than what is needed to targeted them because they happen to class families, but it will expand tax cover the average SALT deduction in live in States where we choose to pay relief for educators by doubling the tax Horry County. for good schools and services. credit from $250 to $500. It will create a But I represent poor counties as well. And why? Not to pay for schools, not new tax credit for first responders, the Marion County, South Carolina, 57 per- to pay for our military, not to pay for people who put their lives on the line cent African American, has an average our healthcare, but because they need- every day to serve us. wage of $30,000 a year. If we do away ed to find someone in America to pay I am heartened that my colleagues with this SALT deduction cap, these for cutting our effective corporate tax on the other side of the aisle want to people would be subsidizing, with their rate in half. work on a progressive income tax. I am Federal income taxes, mansions in When middle-class families in my heartened that they want to tax bil- high-tax States. district saw their taxes rise, their lionaires and ultramillionaires and That is simply not fair, and it doesn’t home values fall, just one company, champion a progressive tax system just apply in South Carolina. It applies Berkshire Hathaway—one company— that addresses income inequality. to rural areas all over our country, in- got a $29 billion windfall. But this vote today is about prin- cluding rural areas in California and Did corporations give that money to ciple. It is about standing up for the rural areas in New York. their employees? No. According to principle that States and localities are The Tax Cuts and Jobs Act signed CRS, the average American worker got able to fund the services that are most into effect 2 years ago has restored op- an added bonus of $28. crucial to their communities. portunity in this land of opportunity. Did they invest in new jobs and out- Mr. MALINOWSKI. Madam Speaker, We have historic lows in unemploy- put? No. The economy actually grew I yield to the gentleman from Cali- ment. Record numbers of people are more slowly in the six quarters after fornia (Mr. THOMPSON). working in this country, in every de- the bill was passed than in the six Mr. THOMPSON of California. mographic category. It cuts taxes for quarters before it. Madam Speaker, in the spirit of the people at every income level. So where did the money go? I will holiday season, I accept the motion to The opportunity has been restored in tell you where most of it went. The tax recommit. Mr. MALINOWSKI. Madam Speaker, this land of opportunity, but my cut helped corporations buy back over I yield back the balance of my time. friends across the aisle dig at this. $1 trillion of their own shares on Wall The SPEAKER pro tempore. Without Their big opposition to this bill is that Street, which gave us a temporary objection, the previous question is or- it was a tax cut for the wealthy. They sugar high on Wall Street. We may as dered on the motion to recommit. say 80 percent went to the wealthiest 1 well have burned that money on The There was no objection. percent. That is not true. That only fo- National Mall. The SPEAKER pro tempore. The cuses on the time after the individual For this—for this—the Republican question is on the motion to recommit. tax cuts expire. tax bill took from middle-class families The question was taken; and the Their proposal to fix the Tax Cuts money they needed to buy their first Speaker pro tempore announced that and Jobs Act, their proposal to fix this home, to send their kids to college, to the ayes appeared to have it. bill that they say is a tax cut for the stay in their home when they retire. Mr. RICE of South Carolina. Madam wealthy, is to put back an even greater For this, because capping SALT Speaker, on that I demand the yeas tax cut for the wealthy. Again, 94 per- wasn’t nearly enough to pay for that and nays. cent of the benefit of this bill goes to bill, the bill blew a $2 trillion hole in The yeas and nays were ordered. people who earn in the top 10 percent of the national debt—just as everyone on The SPEAKER pro tempore. Pursu- wage earners in this country. our side predicted because we used ant to clause 9 of rule XX, this 15- Madam Speaker, there is an old prov- something called math. minute vote on the motion to recom- erb: I can’t hear what you are saying Madam Speaker, let’s restore the mit H.R. 5377 will be followed by 5- because your actions scream so loudly. SALT deduction. Vote for this bill. minute votes on:

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00070 Fmt 7634 Sfmt 0634 E:\CR\FM\K19DE7.078 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE December 19, 2019 CONGRESSIONAL RECORD — HOUSE H12283 Passage of H.R. 5377, if ordered; and Pence Schiff Tlaib The Clerk read as follows: Perlmutter Schneider Tonko Passage of H.R. 5430. Perry Schrader Torres (CA) Amendment offered by Mr. THOMPSON The vote was taken by electronic de- Peters Schrier Torres Small of California: vice, and there were—yeas 388, nays 36, Peterson Schweikert (NM) In the matter proposed to be inserted by not voting 6, as follows: Phillips Scott (VA) Trahan section 2(a), insert ‘‘if the adjusted gross in- Pingree Scott, Austin Trone come of the taxpayer for such taxable year [Roll No. 699] Porter Scott, David Turner does not exceed $100,000,000,’’ after ‘‘January YEAS—388 Posey Sensenbrenner Upton Pressley Sewell (AL) Van Drew 1, 2020,’’. Abraham DelBene Keating Price (NC) Shalala Vargas In section 3, strike subsection (a) and in- Adams Delgado Keller Quigley Sherman Veasey sert the following: Aderholt Demings Kelly (IL) Raskin Sherrill Vela (a) IN GENERAL.—Section 164(b) of the In- Allen DeSaulnier Kelly (MS) Ratcliffe Simpson Vela´ zquez ternal Revenue Code of 1986, as amended by Amash DesJarlais Kelly (PA) Reed Sires Wagner Amodei Deutch Kennedy section 2, is further amended by adding at Reschenthaler Slotkin Walberg the end the following new paragraph: Armstrong Diaz-Balart Khanna Rice (NY) Smith (MO) Walden Arrington Dingell Kildee Rice (SC) Smith (NE) Walker ‘‘(8) SUSPENSION OF DOLLAR LIMITATION ON Axne Doggett Kilmer Riggleman Smith (NJ) Walorski STATE AND LOCAL TAXES FOR 2020 AND 2021.— Babin Doyle, Michael Kim Roby Smith (WA) Waltz ‘‘(A) IN GENERAL.—In the case of any tax- Bacon F. Kind Rodgers (WA) Smucker Wasserman able year beginning in 2020 or 2021, subpara- Baird Duncan King (IA) Roe, David P. Soto Schultz graph (B) of paragraph (6) shall not apply. Balderson Dunn King (NY) Rogers (AL) Spanberger Watkins ‘‘(B) EXCEPTION FOR CERTAIN HIGH-INCOME Banks Emmer Kinzinger Rogers (KY) Spano Weber (TX) TAXPAYERS.—Subparagraph (A) shall not Barr Engel Kirkpatrick Rooney (FL) Speier Webster (FL) Beatty Escobar Krishnamoorthi Rose (NY) Stanton Welch apply to any taxpayer for any taxable year if Bera Eshoo Kuster (NH) Rose, John W. Stauber Wenstrup the adjusted gross income of such taxpayer Bergman Estes Kustoff (TN) Rouda Stefanik Westerman for such taxable year exceeds $100,000,000.’’. Beyer Evans LaHood Rouzer Steil Wexton In the matter proposed to be inserted by Bilirakis Ferguson LaMalfa Roy Steube Wild each of sections 4(a), 4(b)(2), 5(a), and 5(c), Bishop (GA) Finkenauer Lamb Roybal-Allard Stewart Williams strike ‘‘$500’’ and insert ‘‘$1,000’’. Bishop (NC) Fitzpatrick Lamborn Ruiz Stivers Wilson (FL) Bishop (UT) Fleischmann Langevin Ruppersberger Suozzi Wilson (SC) Mr. SMITH of Nebraska (during the Blumenauer Flores Larsen (WA) Rush Takano Wittman reading). Madam Speaker, I ask unani- Blunt Rochester Fortenberry Larson (CT) Rutherford Taylor Womack mous consent to dispense with the Bonamici Foster Latta Ryan Thompson (CA) Woodall Bost Foxx (NC) Lawrence Sa´ nchez Thompson (PA) Wright reading. Boyle, Brendan Frankel Lawson (FL) Sarbanes Thornberry Yarmuth The SPEAKER pro tempore. Is there F. Fulcher Lee (NV) Scalise Timmons Yoho objection to the request of the gen- Brady Gabbard Lesko Scanlon Tipton Young Brindisi Gaetz Levin (CA) Schakowsky Titus Zeldin tleman from Nebraska? Brooks (AL) Gallagher Lewis There was no objection. Brooks (IN) Gallego Lipinski NAYS—36 The SPEAKER pro tempore. The Brown (MD) Garamendi Loebsack Aguilar Fletcher Neguse ´ question is on the amendment. Brownley (CA) Garcıa (IL) Lofgren Allred Fudge Omar Buchanan Gianforte Long Barraga´ n Garcia (TX) Payne The amendment was agreed to. Buck Gibbs Loudermilk Bass Gosar Pocan The SPEAKER pro tempore. The Bucshon Gohmert Lowenthal Biggs Jayapal Richmond Budd Golden Lowey question is on the engrossment and Casten (IL) Jeffries Stevens third reading of the bill. Burchett Gomez Lucas Castro (TX) Lee (CA) Swalwell (CA) Burgess Gonzalez (OH) Luetkemeyer Clay Levin (MI) Thompson (MS) The bill was ordered to be engrossed ´ Bustos Gonzalez (TX) Lujan Cleaver Lieu, Ted Underwood and read a third time, and was read the Butterfield Gooden Luria Clyburn McEachin Visclosky third time. Byrne Gottheimer Lynch Correa Moore Waters Calvert Granger Malinowski Espaillat Napolitano Watson Coleman The SPEAKER pro tempore. The Carbajal Graves (GA) Maloney, question is on the passage of the bill. Ca´ rdenas Graves (LA) Carolyn B. NOT VOTING—6 Carson (IN) Graves (MO) Maloney, Sean The question was taken; and the Hayes Meadows Serrano Carter (GA) Green (TN) Marchant Speaker pro tempore announced that Hunter Nadler Shimkus Carter (TX) Green, Al (TX) Marshall the ayes appeared to have it. Cartwright Griffith Massie b 1559 Case Grijalva Mast RECORDED VOTE Castor (FL) Grothman Matsui Messrs. BIGGS, ALLRED, Mrs. Mr. SMITH of Nebraska. Madam Chabot Guest McAdams FLETCHER, Messrs. PAYNE and Speaker, I demand a recorded vote. Cheney Guthrie McBath NEGUSE changed their vote from Chu, Judy Haaland McCarthy A recorded vote was ordered. Cicilline Hagedorn McCaul ‘‘yea’’ to ‘‘nay.’’ The SPEAKER pro tempore. This is a Cisneros Harder (CA) McClintock Messrs. BURCHETT, STANTON, 5-minute vote. Clark (MA) Harris McCollum SIRES, COHEN, CUELLAR, Ms. The vote was taken by electronic de- Clarke (NY) Hartzler McGovern Cline Hastings McHenry ADAMS, Mrs. DEMINGS, Mses. vice, and there were—ayes 218, noes 206, Cloud Heck McKinley SPEIER, MATSUI, MENG, Mr. not voting 6, as follows: Cohen Hern, Kevin McNerney BROOKS of Alabama, Ms. CLARKE of [Roll No. 700] Cole Herrera Beutler Meeks New York, Mrs. KIRKPATRICK, Collins (GA) Hice (GA) Meng AYES—218 Messrs. GARCI´A of Illinois, LUJA´ N, Comer Higgins (LA) Meuser Adams Chu, Judy DeFazio Conaway Higgins (NY) Miller HUFFMAN, Ms. SCANLON, Mrs. Aguilar Cicilline DeGette Connolly Hill (AR) Mitchell BEATTY, Ms. OCASIO-CORTEZ, Barraga´ n Cisneros DeLauro Cook Himes Moolenaar Messrs. KEATING, McNERNEY, Mses. Bass Clark (MA) DelBene Cooper Holding Mooney (WV) Beatty Clarke (NY) Delgado Costa Hollingsworth Morelle BONAMICI, PRESSLEY, and Mr. Bera Clay Demings Courtney Horn, Kendra S. Moulton DESAULNIER changed their vote from Beyer Cleaver DeSaulnier Cox (CA) Horsford Mucarsel-Powell ‘‘nay’’ to ‘‘yea.’’ Bishop (GA) Clyburn Deutch Craig Houlahan Mullin So the motion to recommit was Blumenauer Cohen Dingell Crawford Hoyer Murphy (FL) Blunt Rochester Connolly Doyle, Michael Crenshaw Hudson Murphy (NC) agreed to. Bonamici Cooper F. Crist Huffman Neal The result of the vote was announced Boyle, Brendan Correa Engel Crow Huizenga Newhouse as above recorded. F. Costa Escobar Cuellar Hurd (TX) Norcross Mr. THOMPSON of California. Brindisi Courtney Eshoo Cunningham Jackson Lee Norman Brown (MD) Cox (CA) Espaillat Curtis Johnson (GA) Nunes Madam Speaker, pursuant to the in- Brownley (CA) Craig Evans Davids (KS) Johnson (LA) O’Halleran structions of the House in the motion Bustos Crist Fitzpatrick Davidson (OH) Johnson (OH) Ocasio-Cortez to recommit, I report the bill, H.R. Carbajal Crow Fletcher Davis (CA) Johnson (SD) Olson Ca´ rdenas Cuellar Foster Davis, Danny K. Johnson (TX) Palazzo 5377, back to the House with an amend- Carson (IN) Cunningham Frankel Davis, Rodney Jordan Pallone ment. Cartwright Davids (KS) Fudge Dean Joyce (OH) Palmer The SPEAKER pro tempore (Ms. Case Davis (CA) Gabbard DeFazio Joyce (PA) Panetta SHERRILL). The Clerk will report the Casten (IL) Davis, Danny K. Gallego DeGette Kaptur Pappas Castor (FL) Dean Garamendi DeLauro Katko Pascrell amendment.

VerDate Sep 11 2014 07:34 Dec 20, 2019 Jkt 099060 PO 00000 Frm 00071 Fmt 7634 Sfmt 0634 E:\CR\FM\K19DE7.080 H19DEPT1 SSpencer on DSKBBXCHB2PROD with HOUSE H12284 CONGRESSIONAL RECORD — HOUSE December 19, 2019 Garcı´a (IL) Lowey Sarbanes Nunes Rutherford Turner Barr Fleischmann Lewis Garcia (TX) Luja´ n Scanlon Ocasio-Cortez Scalise Upton Bass Fletcher Lipinski Gomez Luria Schakowsky Olson Schweikert Wagner Beatty Flores Loebsack Gonzalez (TX) Lynch Schiff Palazzo Scott, Austin Walberg Bera Fortenberry Lofgren Gottheimer Malinowski Schneider Palmer Sensenbrenner Walden Bergman Foster Long Green, Al (TX) Maloney, Schrader Pappas Simpson Walker Beyer Foxx (NC) Loudermilk Grijalva Carolyn B. Schrier Pence Smith (MO) Walorski Biggs Frankel Lowey Haaland Maloney, Sean Scott (VA) Perry Smith (NE) Waltz Bilirakis Fulcher Lucas Pocan Smucker Bishop (GA) Gabbard Luetkemeyer Harder (CA) Matsui Scott, David Watkins Hastings McBath Posey Spanberger Bishop (NC) Gaetz Luja´ n Sewell (AL) Weber (TX) Hayes McCollum Ratcliffe Spano Bishop (UT) Gallagher Luria Shalala Webster (FL) Heck McEachin Reschenthaler Stanton Blumenauer Gallego Lynch Sherman Wenstrup Higgins (NY) McGovern Rice (SC) Stauber Blunt Rochester Garamendi Malinowski Sherrill Westerman Himes McNerney Riggleman Stefanik Bonamici Garcia (TX) Maloney, Sean Horsford Meeks Sires Roby Steil Williams Bost Gianforte Marchant Houlahan Meng Slotkin Rodgers (WA) Steube Wilson (SC) Boyle, Brendan Gibbs Marshall Hoyer Moore Smith (NJ) Roe, David P. Stewart Wittman F. Gohmert Mast Huffman Morelle Smith (WA) Rogers (AL) Stivers Womack Brady Gomez Matsui Jackson Lee Moulton Soto Rogers (KY) Taylor Woodall Brindisi Gonzalez (OH) McAdams Jayapal Mucarsel-Powell Speier Rooney (FL) Thompson (PA) Wright Brooks (AL) Gonzalez (TX) McBath Jeffries Napolitano Stevens Rose, John W. Thornberry Yoho Brooks (IN) Gooden McCarthy Johnson (GA) Neal Suozzi Rouzer Timmons Young Brownley (CA) Gosar McCaul Johnson (TX) Neguse Swalwell (CA) Roy Tipton Zeldin Buchanan Gottheimer McClintock Kaptur Norcross Takano Buck Granger McCollum Katko O’Halleran Thompson (CA) NOT VOTING—6 Bucshon Graves (GA) McHenry Keating Omar Thompson (MS) Butterfield Meadows Serrano Budd Graves (LA) McKinley Kelly (IL) Pallone Titus Hunter Nadler Shimkus Burchett Graves (MO) McNerney Kennedy Panetta Tlaib Burgess Green (TN) Meeks Khanna Pascrell Tonko b 1609 Bustos Green, Al (TX) Meuser Kildee Payne Torres (CA) Butterfield Griffith Miller Kilmer Perlmutter Torres Small So the bill was passed. Byrne Grijalva Mitchell Kim Peters (NM) The result of the vote was announced Calvert Grothman Moolenaar Kind Peterson Trahan as above recorded. Carbajal Guest Mooney (WV) King (NY) Phillips Trone Carson (IN) Guthrie Moore A motion to reconsider was laid on Carter (GA) Haaland Morelle Kirkpatrick Pingree Underwood Krishnamoorthi Porter Carter (TX) Hagedorn Moulton Van Drew the table. Lamb Pressley Cartwright Harder (CA) Mucarsel-Powell Vargas Langevin Price (NC) f Case Harris Mullin Veasey Larsen (WA) Quigley Casten (IL) Hartzler Murphy (FL) Larson (CT) Raskin Vela Castor (FL) Hastings Murphy (NC) ´ LEGISLATIVE PROGRAM Lawrence Reed Velazquez Castro (TX) Hayes Napolitano Lawson (FL) Rice (NY) Visclosky (Mr. HOYER asked and was given Chabot Heck Neal Lee (CA) Richmond Wasserman permission to address the House for 1 Cheney Hern, Kevin Neguse Schultz Levin (CA) Rose (NY) minute.) Chu, Judy Herrera Beutler Newhouse Levin (MI) Rouda Waters Cicilline Hice (GA) Norman Lewis Roybal-Allard Watson Coleman Mr. HOYER. Madam Speaker, fol- Cisneros Higgins (LA) Nunes Lieu, Ted Ruiz Welch lowing the vote on the passage of H.R. Clark (MA) Higgins (NY) O’Halleran Lipinski Ruppersberger Wexton 5430, Members are advised that there Cleaver Hill (AR) Olson Loebsack Rush Wild Cline Himes Palazzo Lofgren Ryan Wilson (FL) will be no more votes in the House Cloud Holding Palmer Lowenthal Sa´ nchez Yarmuth until January 7. Clyburn Hollingsworth Panetta Madam Speaker, I want to wish all Cohen Horn, Kendra S. Pappas NOES—206 Members of this House, their staffs, Cole Horsford Payne Collins (GA) Houlahan Pelosi Abraham Curtis Hudson and all the employees of this institu- Comer Hoyer Pence Aderholt Davidson (OH) Huizenga tion, on whom we rely so much and Conaway Hudson Perlmutter Allen Davis, Rodney Hurd (TX) who do so much for us and for our Connolly Huizenga Perry Allred DesJarlais Johnson (LA) Cook Hurd (TX) Peters Amash Diaz-Balart Johnson (OH) country, a happy holiday season with Cooper Jackson Lee Peterson Amodei Doggett Johnson (SD) their family and loved ones and with Correa Jeffries Phillips Armstrong Duncan Jordan their neighbors. Costa Johnson (GA) Porter Arrington Dunn Joyce (OH) May God bless our country. Courtney Johnson (LA) Posey Axne Emmer Joyce (PA) Cox (CA) Johnson (OH) Price (NC) Babin Estes Keller f Craig Johnson (SD) Quigley Bacon Ferguson Kelly (MS) Crawford Johnson (TX) Ratcliffe Baird Finkenauer Kelly (PA) Crenshaw Jordan Reed Balderson Fleischmann King (IA) UNITED STATES-MEXICO-CANADA Crist Joyce (OH) Reschenthaler Banks Flores Kinzinger AGREEMENT IMPLEMENTATION Crow Joyce (PA) Rice (NY) Barr Fortenberry Kuster (NH) ACT Cuellar Katko Rice (SC) Bergman Foxx (NC) Kustoff (TN) Cunningham Keating Richmond Biggs Fulcher LaHood The SPEAKER pro tempore. Pursu- Curtis Keller Riggleman Bilirakis Gaetz LaMalfa ant to clause 8 of rule XX, the unfin- Davids (KS) Kelly (IL) Roby Bishop (NC) Gallagher Lamborn ished business is the vote on passage of Davidson (OH) Kelly (MS) Rodgers (WA) Bishop (UT) Gianforte Latta Davis (CA) Kelly (PA) Roe, David P. Bost Gibbs Lee (NV) the bill (H.R. 5430) to implement the Davis, Danny K. Khanna Rogers (AL) Brady Gohmert Lesko Agreement between the United States Davis, Rodney Kildee Rogers (KY) Brooks (AL) Golden Long of America, the United Mexican States, Dean Kilmer Rooney (FL) Brooks (IN) Gonzalez (OH) Loudermilk DeGette Kim Rose (NY) Buchanan Gooden Lucas and Canada attached as an Annex to DeLauro Kind Rose, John W. Buck Gosar Luetkemeyer the Protocol Replacing the North DelBene King (IA) Rouda Bucshon Granger Marchant American Free Trade Agreement, on Delgado King (NY) Rouzer Budd Graves (GA) Marshall which the yeas and nays were ordered. Demings Kinzinger Roy Burchett Graves (LA) Massie DesJarlais Kirkpatrick Roybal-Allard Burgess Graves (MO) Mast The Clerk read the title of the bill. Deutch Krishnamoorthi Ruiz Byrne Green (TN) McAdams The SPEAKER pro tempore. The Diaz-Balart Kuster (NH) Ruppersberger Calvert Griffith McCarthy question is on the passage of the bill. Dingell Kustoff (TN) Rush Carter (GA) Grothman McCaul Doggett LaHood Rutherford Carter (TX) Guest McClintock This is a 5-minute vote. Doyle, Michael LaMalfa Ryan Castro (TX) Guthrie McHenry The vote was taken by electronic de- F. Lamb Sa´ nchez Chabot Hagedorn McKinley vice, and there were—yeas 385, nays 41, Duncan Lamborn Sarbanes Cheney Harris Meuser not voting 5, as follows: Dunn Langevin Scalise Cline Hartzler Miller Emmer Larsen (WA) Scanlon Cloud Hern, Kevin Mitchell [Roll No. 701] Escobar Larson (CT) Schakowsky Cole Herrera Beutler Moolenaar YEAS—385 Eshoo Latta Schiff Collins (GA) Hice (GA) Mooney (WV) Estes Lawrence Schneider Comer Higgins (LA) Mullin Abraham Allred Babin Evans Lawson (FL) Schrader Conaway Hill (AR) Murphy (FL) Adams Amodei Bacon Ferguson Lee (NV) Schrier Cook Holding Murphy (NC) Aderholt Armstrong Baird Finkenauer Lesko Schweikert Crawford Hollingsworth Newhouse Aguilar Arrington Balderson Fitzpatrick Levin (CA) Scott (VA) Crenshaw Horn, Kendra S. Norman Allen Axne Banks

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