H1990 CONGRESSIONAL RECORD — HOUSE April 19, 2012 McCarthy (CA) Posey Smith (NE) The result of the vote was announced ‘‘(C) DIRECT OWNER.—The term ‘direct owner’ McCarthy (NY) Price (GA) Smith (NJ) as above recorded. means, with respect to any qualified small busi- McCaul Price (NC) Smith (TX) ness, any person who owns (or is considered as McClintock Quigley Stated against: Smith (WA) owning under the applicable non-family attribu- McCollum Rehberg Southerland Mr. FILNER. Mr. Speaker, I was away from tion rules) any stock of such business (or, if McGovern Reyes Speier the Capitol due to prior commitments to my McHenry Richardson such business is other than a corporation, any Stearns constituents. Had I been present, I would have McIntyre Rivera Stutzman capital or profits interest of such business). McKeon Roby Sullivan voted ‘‘no.’’ ‘‘(D) 10-PERCENT-OR-LESS DIRECT OWNERS.— McKinley Roe (TN) Sutton f The term ‘10-percent-or-less direct owner’ McMorris Rogers (AL) Thompson (PA) means, with respect to any qualified small busi- Rodgers Rogers (KY) Thornberry SMALL BUSINESS TAX CUT ACT ness, any direct owner of such business who Mica Rogers (MI) Tiberi Michaud Rohrabacher Mr. CAMP. Mr. Speaker, pursuant to owns (or is considered as owning under the ap- Tierney plicable non-family attribution rules)— Miller (MI) Rokita Tipton House Resolution 620, I call up the bill Miller (NC) Roskam ‘‘(i) in the case of a qualified small business Tonko (H.R. 9) to amend the Internal Revenue Miller, Gary Ross (AR) Towns which is a corporation, not more than 10 per- Moore Ross (FL) Code of 1986 to provide a deduction for Tsongas cent of the outstanding stock of the corporation Moran Rothman (NJ) domestic business income of qualified Turner (NY) or stock possessing more than 10 percent of the Mulvaney Roybal-Allard Turner (OH) small businesses, and ask for its imme- total combined voting power of all stock of the Murphy (CT) Royce Murphy (PA) Runyan Upton diate consideration. corporation, or Myrick Ruppersberger Van Hollen The Clerk read the title of the bill. ‘‘(ii) in the case of a qualified small business Nadler Ryan (WI) Walden The SPEAKER pro tempore (Mr. which is not a corporation, not more than 10 Walz (MN) Neugebauer Scalise LATOURETTE). Pursuant to House Reso- percent of the capital or profits interest of such Noem Schiff Wasserman business. Schultz lution 620, the amendment in the na- Nunes Schmidt ‘‘(E) APPLICABLE NON-FAMILY ATTRIBUTION Watt Nunnelee Schwartz ture of a substitute recommended by RULES.—The term ‘applicable non-family attri- Olson Schweikert Waxman the Committee on Ways and Means, Webster bution rules’ means the attribution rules of sub- Palazzo Scott (SC) printed in the bill, is adopted. The bill, Pascrell Scott (VA) Welch section (c) or (e)(3) of section 267, as the case Pearce Scott, Austin West as amended, is considered read. may be, but in each case applied without regard Pelosi Scott, David Westmoreland The text of the bill, as amended, is as to section 267(c)(2). Pence Sensenbrenner Whitfield follows: ‘‘(3) W–2 WAGES.—For purposes of this sec- Perlmutter Serrano Wilson (FL) tion— H.R. 9 Petri Sessions Wilson (SC) ‘‘(A) IN GENERAL.—The term ‘W–2 wages’ Pingree (ME) Sewell Wolf Be it enacted by the Senate and House of Rep- means, with respect to any person for any tax- Womack Pitts Sherman resentatives of the United States of America in able year of such person, the sum of the Platts Shimkus Woolsey Congress assembled, Polis Shuster Yarmuth amounts described in paragraphs (3) and (8) of Pompeo Simpson Young (IN) SECTION 1. SHORT TITLE. section 6051(a) paid by such person with respect This Act may be cited as the ‘‘Small Business to employment of employees by such person dur- NAYS—118 Tax Cut Act’’. ing the calendar year ending during such tax- Adams Gerlach Olver SEC. 2. DEDUCTION FOR DOMESTIC BUSINESS IN- able year. Altmire Gibson Pallone COME OF QUALIFIED SMALL BUSI- ‘‘(B) LIMITATION TO WAGES ATTRIBUTABLE TO Andrews Graves (MO) Pastor (AZ) NESSES. QUALIFIED DOMESTIC BUSINESS INCOME.—Such Baldwin Green, Gene Paulsen (a) IN GENERAL.—Part VI of subchapter B of term shall not include any amount which is not Bass (CA) Griffin (AR) Peters chapter 1 of the Internal Revenue Code of 1986 Benishek Grijalva Peterson properly allocable to domestic business gross re- Biggert Gutierrez Poe (TX) is amended by adding at the end the following ceipts for purposes of subsection (c)(1). Bishop (NY) Hanna Quayle new section: ‘‘(C) OTHER REQUIREMENTS.—Except in the Boswell Hartzler Rahall ‘‘SEC. 200. DOMESTIC BUSINESS INCOME OF case of amounts treated as W–2 wages under Brady (PA) Heck Reed QUALIFIED SMALL BUSINESSES. paragraph (4)— Burgess Herrera Beutler Reichert ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case ‘‘(i) such term shall not include any amount Capuano Honda Renacci of a qualified small business, there shall be al- which is not allowed as a deduction under sec- Cardoza Hoyer Ribble lowed as a deduction an amount equal to 20 per- tion 162 for the taxable year, and Castor (FL) Huelskamp Richmond Chandler Israel Rigell cent of the lesser of— ‘‘(ii) such term shall not include any amount Chu Jackson (IL) Rooney ‘‘(1) the qualified domestic business income of which is not properly included in a return filed Clarke (NY) Jackson Lee Ros-Lehtinen the taxpayer for the taxable year, or with the Social Security Administration on or Cleaver (TX) Rush ‘‘(2) taxable income (determined without re- before the 60th day after the due date (including Clyburn Johnson (OH) Ryan (OH) gard to this section) for the taxable year. extensions) for such return. Coffman (CO) Keating Sa´ nchez, Linda ‘‘(b) DEDUCTION LIMITED BASED ON WAGES ‘‘(4) CERTAIN PARTNERSHIP DISTRIBUTIONS Cohen Kind T. PAID.— TREATED AS W–2 WAGES.— Conaway Kucinich Sanchez, Loretta ‘‘(1) IN GENERAL.—The amount of the deduc- ‘‘(A) IN GENERAL.—In the case of a qualified Costa Langevin Sarbanes Costello Latham Schakowsky tion allowable under subsection (a) for any tax- small business which is a partnership and elects Courtney Lee (CA) Schilling able year shall not exceed 50 percent of the the application of this paragraph for the taxable Cravaack Lewis (GA) Schock greater of— year— Critz LoBiondo Shuler ‘‘(A) the W–2 wages of the taxpayer paid to ‘‘(i) the qualified domestic business taxable in- DeFazio Luetkemeyer Sires non-owners, or come of such partnership for such taxable year Dent Lynch Stark ‘‘(B) the sum of— (determined after the application of clause (ii)) DesJarlais Markey Stivers ‘‘(i) the W–2 wages of the taxpayer paid to in- which is allocable under rules similar to the Dold Matheson Terry Donnelly (IN) McCotter Thompson (CA) dividuals who are non-owner family members of rules of section 199(d)(1)(A)(ii) to each qualified Duffy McDermott Thompson (MS) direct owners, plus service-providing partner shall be treated for Fattah McNerney Vela´ zquez ‘‘(ii) any W–2 wages of the taxpayer paid to purposes of this section as W–2 wages paid dur- Fitzpatrick Meehan Visclosky 10-percent-or-less direct owners. ing such taxable year to such partner as an em- Forbes Meeks Walberg ‘‘(2) DEFINITIONS RELATED TO OWNERSHIP.— ployee, and Foxx Miller (FL) Waters For purposes of this section— ‘‘(ii) the domestic business gross receipts of Fudge Miller, George Wittman ‘‘(A) NON-OWNER.—The term ‘non-owner’ such partnership for such taxable year shall be Gardner Neal Woodall means, with respect to any qualified small busi- reduced by the amount so treated. Garrett Nugent Yoder ness, any person who does not own (and is not ‘‘(B) QUALIFIED SERVICE-PROVIDING PART- ANSWERED ‘‘PRESENT’’—3 considered as owning within the meaning of NER.—For purposes of this paragraph, the term Amash Gohmert Owens subsection (c) or (e)(3) of section 267, as the case ‘qualified service-providing partner’ means, may be) any stock of such business (or, if such with respect to any qualified domestic business NOT VOTING—20 business is other than a corporation, any cap- taxable income, any partner who is a 10-per- Bass (NH) Flake Rangel ital or profits interest of such business). cent-or-less direct owner and who materially Bishop (UT) Gosar Schrader ‘‘(B) NON-OWNER FAMILY MEMBERS.—An indi- participates in the trade or business to which Braley (IA) Guinta Slaughter vidual is a non-owner family member of a direct such income relates. Burton (IN) Manzullo Walsh (IL) owner if— ‘‘(5) ACQUISITIONS AND DISPOSITIONS.—The Cummings Marino Young (AK) ‘‘(i) such individual is family (within the Secretary shall provide for the application of Davis (KY) Napolitano Young (FL) Filner Paul meaning of section 267(c)(4)) of a direct owner, this subsection in cases where the taxpayer ac- and quires, or disposes of, the major portion of a b 1057 ‘‘(ii) such individual would be a non-owner if trade or business or the major portion of a sepa- subsections (c) and (e)(3) of section 267 were ap- rate unit of a trade or business during the tax- So the Journal was approved. plied without regard to section 267(c)(2). able year.

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‘‘(c) QUALIFIED DOMESTIC BUSINESS INCOME.— subsection (m) or (o) of section 414 shall be ‘‘(C) any deduction allowable under section For purposes of this section— treated as a single employer for purposes of this 200,’’. ‘‘(1) IN GENERAL.—The term ‘qualified domes- subsection. (9) Section 1402(a) of such Code is amended by tic business income’ for any taxable year means ‘‘(B) PREDECESSORS.—Any reference in this striking ‘‘and’’ at the end of paragraph (16), by an amount equal to the excess (if any) of— subsection to an employer shall include a ref- redesignating paragraph (17) as paragraph (18), ‘‘(A) the taxpayer’s domestic business gross re- erence to any predecessor of such employer. and by inserting after paragraph (16) the fol- ceipts for such taxable year, over ‘‘(e) SPECIAL RULES.— lowing new paragraph: ‘‘(B) the sum of— ‘‘(1) ELECTIVE APPLICATION OF DEDUCTION.— ‘‘(17) the deduction provided by section 200 ‘‘(i) the cost of goods sold that are allocable to Except as otherwise provided by the Secretary, shall not be allowed; and’’. such receipts, and the taxpayer may elect not to take any item of (c) CLERICAL AMENDMENT.—The table of sec- ‘‘(ii) other expenses, losses, or deductions income into account as domestic business gross tions for part VI of subchapter B of chapter 1 of (other than the deduction allowed under this receipts for purposes of this section. such Code is amended by adding at the end the section), which are properly allocable to such ‘‘(2) COORDINATION WITH SECTION 199.—If a following new item: receipts. deduction is allowed under this section with re- ‘‘Sec. 200. Domestic business income of qualified ‘‘(2) DOMESTIC BUSINESS GROSS RECEIPTS.— spect to any taxpayer for any taxable year— small businesses.’’. ‘‘(A) IN GENERAL.—The term ‘domestic busi- ‘‘(A) any gross receipts of the taxpayer which ness gross receipts’ means the gross receipts of are taken into account under this section for The SPEAKER pro tempore. After 70 the taxpayer which are effectively connected such taxable year shall not be taken into ac- minutes of debate on the bill, as with the conduct of a trade or business within count under section 199 for such taxable year, amended, it shall be in order to con- the United States within the meaning of section and sider the further amendment in the na- 864(c) but determined— ‘‘(B) the W–2 wages of the taxpayer which are ture of a substitute printed in House ‘‘(i) without regard to paragraphs (3), (4), and taken into account under this section shall not Report 112–447, if offered by the gen- (5) thereof, and be taken into account under section 199 for such tleman from Michigan (Mr. LEVIN) or ‘‘(ii) by substituting ‘qualified small business taxable year. (within the meaning of section 200)’ for ‘non- ‘‘(3) APPLICATION OF CERTAIN RULES.—Rules his designee, which shall be considered resident alien individual or a foreign corpora- similar to the rules of paragraphs (1), (2), (3), read and shall be separately debatable tion’ each place it appears therein. (4), (6), and (7) of section 199(d) shall apply for for 25 minutes equally divided and con- ‘‘(B) EXCEPTIONS.—For purposes of paragraph purposes of this section (applied with respect to trolled by the proponent and an oppo- (1), domestic business gross receipts shall not in- qualified domestic business income in lieu of nent. clude any of the following: qualified production activities income). The gentleman from Michigan (Mr. ‘‘(i) Gross receipts derived from the sale or ex- ‘‘(f) REGULATIONS.—The Secretary shall pre- CAMP) and the gentleman from Michi- change of— scribe such regulations as are necessary to carry gan (Mr. LEVIN) each will control 35 ‘‘(I) a capital asset, or out the purposes of this section, including regu- ‘‘(II) property used in the trade or business lations which prevent a taxpayer which reorga- minutes. (as defined in section 1231(b)). nizes from being treated as a qualified small The Chair recognizes the gentleman ‘‘(ii) Royalties, rents, dividends, interest, or business if such taxpayer would not have been from Michigan (Mr. CAMP). annuities. treated as a qualified small business prior to GENERAL LEAVE ‘‘(iii) Any amount which constitutes wages (as such reorganization. defined in section 3401). Mr. CAMP. Mr. Speaker, I ask unani- ‘‘(g) APPLICATION.—Subsection (a) shall apply mous consent that all Members have 5 ‘‘(3) APPLICATION OF CERTAIN RULES.—Rules only with respect to the first taxable year of the similar to the rules of paragraphs (2) and (3) of taxpayer beginning after December 31, 2011.’’. legislative days in which to revise and section 199(c) shall apply for purposes of this (b) CONFORMING AMENDMENTS.— extend their remarks and to include ex- section (applied with respect to qualified domes- (1) Section 56(d)(1)(A) of such Code is amend- traneous material on H.R. 9. tic business income in lieu of qualified produc- ed by striking ‘‘deduction under section 199’’ The SPEAKER pro tempore. Is there tion activities income and with respect to domes- both places it appears and inserting ‘‘deductions objection to the request of the gen- tic business gross receipts in lieu of domestic under sections 199 and 200’’. tleman from Michigan? production gross receipts). (2) Section 56(g)(4)(C) of such Code is amend- There was no objection. ‘‘(d) QUALIFIED SMALL BUSINESS.—For pur- ed by adding at the end the following new poses of this section— clause: b 1100 ‘‘(1) IN GENERAL.—The term ‘qualified small ‘‘(vii) DEDUCTION FOR DOMESTIC BUSINESS IN- Mr. CAMP. Mr. Speaker, I yield my- business’ means any employer engaged in a COME OF QUALIFIED SMALL BUSINESSES.—Clause trade or business if such employer had fewer (i) shall not apply to any amount allowable as self such time as I may consume. than 500 full-time equivalent employees for ei- a deduction under section 200.’’. I rise today in support of H.R. 9, the ther calendar year 2010 or 2011. (3) The following provisions of such Code are Small Business Tax Cut Act. This leg- ‘‘(2) FULL-TIME EQUIVALENT EMPLOYEES.—The each amended by inserting ‘‘200,’’ after ‘‘199,’’. islation will allow small businesses term ‘full-time equivalent employees’ has the (A) Section 86(b)(2)(A). with fewer than 500 employees to take meaning given such term by subsection (d)(2) of (B) Section 135(c)(4)(A). a 20 percent tax deduction. section 45R applied— (C) Section 137(b)(3)(A). Small businesses are the engine of ‘‘(A) without regard to subsection (d)(5) of (D) Section 219(g)(3)(A)(ii). such section, (E) Section 221(b)(2)(C)(i). job creation, and while we pursue com- ‘‘(B) with regard to subsection (e)(1) of such (F) Section 222(b)(2)(C)(i). prehensive tax reform that will give all section, and (G) Section 246(b)(1). businesses certainty to invest and hire, ‘‘(C) by substituting ‘calendar year’ for ‘tax- (H) Section 469(i)(3)(F)(iii). this bill will help small businesses to able year’ each place it appears therein. (4) Section 163(j)(6)(A)(i) of such Code is reinvest, hire new workers, or provide ‘‘(3) EMPLOYERS NOT IN EXISTENCE PRIOR TO amended by striking ‘‘and’’ at the end of sub- a raise to an employee. 2012.—In the case of an employer which was not clause (III) and by inserting after subclause The policies put forth by President in existence on January 1, 2012, the determina- (IV) the following new subclause: tion under paragraph (1) shall be made with re- ‘‘(V) any deduction allowable under section Obama and congressional Democrats spect to calendar year 2012. 200, and’’. have yielded more government spend- ‘‘(4) APPLICATION TO CALENDAR YEARS IN (5) Section 170(b)(2)(C) of such Code is amend- ing but have failed to generate strong WHICH EMPLOYER IN EXISTENCE FOR PORTION OF ed by striking ‘‘and’’ at the end of clause (iv), income growth and the jobs Americans CALENDAR YEAR.—In the case of any calendar by striking the period at the end of clause (v) need. Instead of lowering unemploy- year during which the employer comes into ex- and inserting ‘‘, and’’, and by inserting after ment, we got a lower credit rating; in- istence, the number of full-time equivalent em- clause (v) the following new clause: stead of massive job creation, we got ployees determined under paragraph (2) with re- ‘‘(vi) section 200.’’. massive and unprecedented levels of spect to such calendar year shall be increased (6) Section 172(d) of such Code is amended by by multiplying the number so determined (with- adding at the end the following new paragraph: debt; and instead of higher wages for out regard to this paragraph) by the quotient ‘‘(8) DOMESTIC BUSINESS INCOME OF QUALIFIED working families, we got higher gas obtained by dividing— SMALL BUSINESSES.—The deduction under sec- prices. ‘‘(A) the number of days in such calendar tion 200 shall not be allowed.’’. This bill provides real relief to Amer- year, by (7) Section 613(a) of such Code is amended by ican small businesses and the workers ‘‘(B) the number of days during such calendar striking ‘‘deduction under section 199’’ and in- they employ, and it treats every small year which such employer is in existence. serting ‘‘deductions under sections 199 and 200’’. business equally. Contrary to the polit- ‘‘(5) SPECIAL RULES.— (8) Section 613A(d)(1) of such Code is amended ‘‘(A) AGGREGATION RULE.—For purposes of by redesignating subparagraphs (C), (D), and ical cronyism we’ve seen time and time paragraph (1), any person treated as a single (E) as subparagraphs (D), (E), and (F), respec- again, this bill does not pick winners employer under subsection (a) or (b) of section tively, and by inserting after subparagraph (B) and losers. It provides relief to all 52 (applied without regard to section 1563(b)) or the following new subparagraph: small businesses, including those in my

VerDate Mar 15 2010 01:25 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00013 Fmt 4634 Sfmt 0634 E:\CR\FM\A19AP7.011 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE H1992 CONGRESSIONAL RECORD — HOUSE April 19, 2012 home State of Michigan. Michigan has tally. It applies as long as an entity this morning. This is what they say been hit especially hard over the last 3 has under 500 employees—law firms, about your bill: It’s another tax gim- years with some of the highest unem- sports teams, financial consultants, mick. ployment rates in the Nation. And lobbyists, corporate farmers—and re- b 1110 while small business owners in my dis- gardless of what their annual receipts trict need and want comprehensive tax are. They can be tens of millions, hun- Just earlier today somebody got up reform, they also agree that we must dreds of millions of dollars. here and read from The Wall Street take steps to spur investment and hir- Interestingly, when the SBA looks at Journal. It was some months ago. ing today as well. These business own- its loan program, it has what’s called a Again, The Wall Street Journal says: ers are the real experts who know what common standard. What that is is that ‘‘The U.S. economy does not need an- they need to add jobs back to our com- generally the businesses it serves can- other tax gimmick.’’ So this is tax pol- munities. not have more than $7 million in aver- icy gone haywire. Take, for example, Bob Yackel, presi- age annual receipts for most nonmanu- I’m going to offer a substitute, after dent of Merrill Tool. As part of the 400- facturing firms. This bill has no lim- we finish debate here on general de- employee Merrill Technologies Group, its—none—as to function or amount of bate, that’s targeted; that will help Mr. Yackel says: receipts, so really this bill mocks the create jobs; that’s fair; that is fiscally As a manufacturing business in mid-Michi- use of the title ‘‘small business.’’ This responsible and continues a policy that gan, we know firsthand the ramifications of isn’t about mom and pop. It’s about both Republicans and Democrats have the recent economic turmoil. The best way popping the cork for wealthy tax- supported in the past. Washington can help energize economic payers. This flies in the face of anything bi- growth is by making sure business owners Secondly, graded on tax fairness, F. partisan. It flies in the face of anything are spending less on tax payments and more According to the most cautious esti- that is truthful in advertising. It flies on creating jobs. mate, 56 percent of the tax break under in the face of anything that is fair. It Bob Yackel is a larger small business this bill goes to taxpayers making flies in the face of anything that cre- owner, but there are smaller businesses $250,000 or more annually. It provides ates jobs. It flies in the face of fiscal that feel the same way. 125,000 taxpayers making $1 million a responsibility, and it flies in the face of Jim Holton, owner of Mountain Town year with a tax break of over $58,000. tax reform. Station in Mount Pleasant, has served Another model says that 49 percent of So I more than urge people to vote the central Michigan community as a this $46 billion revenue loss goes to ‘‘no’’ and vote ‘‘yes’’ on our substitute. restaurant owner for more than 15 people with incomes over $1 million. I really urge that they exercise their years. He is especially pleased with the This is Bush tax cuts on steroids. responsibility to try to get this coun- simplicity and ease of this legislative Thirdly, in terms of job creation, an- try moving in the right direction, not approach. He says: other grade F. Listen to the Joint Tax with policies that deserve a total F on The beauty of the Small Business Tax Cut Committee analysis. It says this bill’s the test of sound tax policy. Act is its simplicity. If you’re earning profits economic impact ‘‘is so small as to be I reserve the balance of my time. and contributing to the economy, then you incalculable.’’ The only thing calcu- Mr. CANTOR. Mr. Speaker, I yield can take 20 percent off your tax bill. No myself as much time as I may con- hoops to jump through. This is a great way lating about this bill is its political na- for business owners like myself in the Great ture. sume. Lakes Bay region and across America to help We’ve looked at the Web site of the Mr. Speaker, we know jobs won’t jump-start our economy. majority leader. He uses Mr. Robbins, come back until small businesses re- Those are just two examples in who was the one who advised Herman cover. Small businesses have generated Michigan’s Fourth District, but they Cain on 9–9-9. Here’s what Mr. Robbins over 65 percent of the new jobs in this echo small businesses and small busi- says about this bill: He estimates that country; but the economic downturn, ness owners across the country. a 1-year tax cut would create 39,000 red tape, and higher taxes coming from Throughout our history, we’ve de- jobs. This is on the majority leader’s Washington have simply made it hard- pended upon these industrious and in- Web site. So, according to the analysis er for small business to create jobs. novative risk-takers to help us move that the leader is touting on its own Tax policies should encourage eco- through tough economic times. While Web site, H.R. 9 would increase the nomic growth, investment, and job cre- we work to provide them the long-term Federal deficit by $1.1 million for every ation, not stifle it. We need to stop and comprehensive tax reform they need, job supposedly created. So, another big think about what kind of country we we can also take steps today to unlock F. want to be. Do we want to be one with new opportunities for them imme- Now let’s talk about where these jobs lower taxes, more growth, and more diately. Passing this bill will provide would be created. The bill is so jobs; or do we want to be one of more these much-needed, immediate oppor- untargeted to require that the jobs government control and fewer opportu- tunities. that are created here would really be nities? I urge my colleagues to join me in created, because a company would get This week, when every American supporting small business and to dem- this benefit if it sheds jobs or if it uses filed their tax returns, the other party onstrate that they support them as the deduction to hire workers overseas. in the Senate voted to increase taxes. well by voting ‘‘yes’’ on H.R. 9. Let’s next go to fiscal irrespon- We should not be taking money out of Mr. Speaker, I ask unanimous con- sibility, another fat F in terms of re- the hands of those we are counting on sent that the gentleman from Virginia sponsibility. This bill adds a whopping to create jobs. We need to let small (Mr. CANTOR) be permitted to control $46 billion to the deficit in 1 year; if it’s business owners keep more of their the balance of the time, and I reserve made permanent, one-half trillion dol- hard-earned money so they can start the balance of my time. lars over the next 10 years. So I say hiring again. The SPEAKER pro tempore. Without this to anybody who votes for this bill Today, Mr. Speaker, we’ll vote on the objection, Mr. CANTOR will control the and then goes home and utters the Small Business Tax Cut Act to give time and have the authority to dis- word, once, ‘‘Federal deficit.’’ They every small business with fewer than pense time. will sell short the intelligence of their 500 employees a 20 percent tax cut. Our There was no objection. constituents, because they will know bill puts more money into the hands of Mr. LEVIN. Mr. Speaker, I yield my- when someone is selling them a pig in small business owners so they can rein- self such time as I may consume. a poke. vest those funds to retain and create This bill needs to be graded, and the Now let’s talk about tax reform, an- more jobs and grow their businesses, grade it gets is F, a fat F grade. It fails other fat F. This bill is the antithesis plain and simple. all tests of sound tax policy. of tax reform. What it does is ridicule According to a study, the Small Busi- Let me start with truth in adver- supporters who claim their fealty to ness Tax Cut Act will help create more tising, a grade F. This is not a small tax reform. It doesn’t simplify tax than 100,000 new jobs a year once fully business bill. It’s small business in structures; it complicates it. That’s in place. One-third of the firms that name only. It’s totally untargeted, to- why I quote The Wall Street Journal benefit from our tax cut are owned by

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I hear that taxes are siphoning We have a Statement of Administra- bill so that we could at least keep high- away their income. I hear they can’t tion Policy in total opposition to this. way infrastructure being created. Oth- access capital. The Small Business Administration erwise, there has been nothing solid One small business owner in Spotsyl- would not provide a loan for innumer- that has gotten through the Congress. vania, Virginia, called the small busi- able people who benefit from this. They The highway bill will get through be- ness tax cut a win-win for him and have a $7 million limit. cause everybody knows it creates jobs, other small business owners in the Supply-side economics, we tried that but this kind of stuff is simply sinking economy. He said that with more for a number of years, and we were los- us. money to invest in his businesses he ing 700,000 jobs a month when this ad- What’s really interesting, though, is could afford to hire more staff, buy new ministration took over—700,000, and that, as I look at that $1.1 million per equipment and expand. you raise supply-side economics as job, I remember when they came up Mr. Speaker, while we continue to something we should embrace? No way. with the phony claim—never proven— work toward tax reform that broadens No way. that the Recovery Act would cost the base, brings down the rates for ev- I yield 3 minutes to the distinguished $278,000 for a job. This costs us four erybody, and gets rid of loopholes, gentleman from Washington, Dr. JIM times as much, and it’s from his own Washington assumes the role of pick- MCDERMOTT, a member of our com- economist. Vote ‘‘no’’ on this bill. ing winners and losers. We need to take mittee. Mr. CANTOR. Mr. Speaker, I now yield 1 minute to the gentlewoman incremental steps to give job creators (Mr. MCDERMOTT asked and was from Washington (Ms. HERRERA tax relief right away. This Small Busi- given permission to revise and extend BEUTLER). ness Tax Cut Act is a step in that right his remarks.) Ms. HERRERA BEUTLER. Last direction. Mr. MCDERMOTT. Mr. Speaker, week, I met with more than 70 small President Obama called small busi- Members of the House, in 5 hours we’re nesses the anchors of our Main Streets. businesses throughout southwest going to get on planes and go home, so Washington, so I am here to support a We agree. I hope we can all unite we have to get the press releases ready around helping the small businesses bill today that would give every one of to go. And that’s what this is about. those businesses a much-needed, posi- which are the engines of job creation in This bill will be dead in the Senate tive injection of capital. our country. the minute it hits the desk. It’s not What my friends on the other side of Mr. Speaker, I’d say in response to going anywhere. It is a press release, the aisle seem to have a hard time un- the gentleman’s assertion towards the and it is the most wasteful bill of the derstanding is that 7 out of 10 jobs in definition of small business in this bill, season so far. Now, I’m sure that Mr. this country over the last 20 years have this is the Small Business Administra- CANTOR and others will find worse come from small businesses. If we cre- tion definition of small business. This things to do down the way as we get ate an environment where they can is what every program that comes out closer to the election. grow and succeed, more people are of this government aimed to help small This week has been a disaster in going to find work, and that’s what businesses is premised upon. The SBA here. We started on Tuesday by deem- this is all about. They need it. My dis- definition of a small business is one of ing the budget passed, here and in the trict has endured multiple years of 499 or fewer. Senate. It’s a fiction. It never hap- double-digit unemployment, and job- As far as the gentleman’s allegations pened. That’s how this week started. providing small businesses haven’t seen about the potential for abuse under Then we went to the Ways and Means much from their government to give this bill, if he’d read the language of Committee yesterday, and we cut $68 them hope or to encourage them to the bill, Mr. Speaker, it caps the abil- billion out of health, children’s serv- grow their workforces. ity to benefit from the tax cut to 50 ices, social services, foster care, in rec- For example, many small businesses percent of the W–2 wages that that onciliation to balance the budget. that I’ve met with are really worried small business paid out. This is, And then we get up this morning and about hitting that 50-employee thresh- straight up, something to help small here we have a bill that borrows $46 bil- old that is going to trigger the health businesses keep more of their money lion from the Chinese, or whoever, to care law’s burdensome cost. They’re while they’re having so much difficulty give it to small business. The fact is staying under it. Imagine that: a gov- keeping the lights on and, instead, giv- that 125,000 millionaires in this coun- ernment rule that is deterring small ing them the ability to grow, to grow, try will get an average tax cut of businesses from hiring. This is a ter- invest, and create more jobs. $58,000. rible time to send that message. An- As far as the gentleman’s allegations That’s what this bill does. It does not other business owner talked to me that somehow this bill only affects create jobs. It’s supposed to create about how he is exasperated by the those millionaires, billionaires and the jobs. In fact, the job creation is so government reaching out to him, say- rest, I think he will see the studies small, as you heard, it’s incalculable. ing he had 4 days to put together a have shown that just 18.3 percent of Now, that wouldn’t satisfy the major- mountain load of paperwork or face a those people are in the categories of in- ity leader. He had to go and find an fine. come he suggests, with 80-some percent economist somewhere who’d give him a The SPEAKER pro tempore. The in the middle class—80-some percent, better number. time of the gentlewoman has expired. the true small business owners who Mr. CANTOR. I yield the gentlelady b 1120 we’re relying on to create jobs for the an additional 30 seconds. middle class to come back. So he found Herman Cain’s guy, the Ms. HERRERA BEUTLER. We need And I would say to the gentleman, as guy who had the 9–9-9 tax deal. Now, to remove those barriers. Today, the far as the allegation of gimmickry, the there’s a solid citizen. He really knows bill that we get a chance to pass is essence of supply-side economics, the what’s going. Well, he comes up with going to send a different signal that centrality issue on taxes is the reduc- 39,000 jobs will be created. 39,000 jobs. It says, Government wants you to grow. tion of marginal rates. That’s exactly sounds like quite a bit, doesn’t it? We want you to hire. You’re not Uncle what this bill does. Until you figure how many billions of Sam’s piggy bank. We want you to suc- Does it provide it for long enough? dollars are going to create them. The ceed and prosper. Does it provide permanency? No. But figure is that each job will cost $1.1 These businesses are going to put what we want to do in a permanent million in tax cuts. This is to get one moms, dads, and hardworking tax- way is effect broader tax reform. But job. Do you think they’re hiring some- payers to work. Let’s allow them to do

VerDate Mar 15 2010 01:37 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00015 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.032 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE H1994 CONGRESSIONAL RECORD — HOUSE April 19, 2012 more of that. On behalf of small busi- job creation. Their success is vital to I have another example. Two compa- ness owners in southwest Washington, I the strength of this economy and to nies, both have 500 employees. One stand in strong support of this bill. the availability of jobs for all Ameri- company decides to hire more Ameri- Mr. LEVIN. I yield myself 5 seconds. cans. cans; 10 more Americans are put on the Is it worth $1.1 million a job in Wash- As a CPA and a legislator, I’ve heard payroll. The other company of 500 em- ington? from small business owners throughout ployees decides, I think it’s easier for I now yield 2 minutes to the very dis- my career, and their message has been me to make more money if I take some tinguished gentleman from Oregon, an remarkably consistent: They need re- of those jobs and put them overseas, so active member of our committee, Mr. lief from the burdensome Tax Code, I’m going to fire 10 Americans here in BLUMENAUER. and they need capital to hire and ex- America, and I’m going to start those Mr. BLUMENAUER. I listened to my pand, which is exactly what the Small jobs overseas, outsource those jobs. good friend and colleague from the Business Tax Cut Act provides. Guess who gets the tax break—the other side of the river from my home- While our colleagues in the Senate company that hires 10 new American town of Portland, Oregon, talking are devising new and creative ways to employees? No. They get nothing. The about trying to assist small business raise taxes, here in the House we have firm that fires 10 American employees and encourage economic development. the opportunity to pass legislation here and outsources those jobs to an- But the facts are that the vast ma- that supports our small businesses, en- other country, that company will get jority of this aid, as we’ve talked courages growth and job creation, and the benefits of this tax break. about, is going to be unfocused. It’s lifts our economy out of the current ec- The American public is correct. To- going to go to people whether they onomics of the day. We can and should day’s tax system is skewed towards the need it or not, including some of the do all of this by passing the Small wealthy, and that’s why we have to wealthiest individuals and partner- Business Tax Cut Act today. vote against this legislation. Let us ships—accountants, lobbyists—and to Mr. LEVIN. I now yield 3 minutes to have job creation legislation. Let us companies regardless of whether or not another very active member of our focus on small businesses. This does they add employment or reduce it. committee, the gentleman from Cali- neither. At this very time, we have people on fornia, XAVIER BECERRA. I urge my colleagues to vote against Capitol Hill who are begging us to get Mr. BECERRA. I thank the gen- H.R. 9. real about infrastructure investment. tleman for yielding. Mr. CANTOR. I yield myself 30 sec- We finally are getting a bill to con- When you hear of small business, onds just in response, Mr. Speaker, to ference, but we’re hung up on funding what comes up in your mind first? The the allegation about those who benefit it. The Republican budget would cut corner drug store? The tech trouble- from the Small Business Tax Cut Act. transportation funding 46 percent, $6.5 shooting startup? My daughter’s mar- I would ask the gentleman to perhaps billion less than is necessary to keep tial arts instructor? How about Donald look at the language of the Democrat current obligations. This week, small Trump? How about Trump Sales and alternative on the motion to recommit business people, including a number Leasing, or Paris Hilton Entertain- because it, as well, provides the same who visited my office, came in, implor- ment? What about Larry Flynt Publi- benefit it’s trying to provide to others. ing us to stop the games and to get on cations? Not that any of these latter All those people, the so-called ‘‘rich with the reauthorization of the Surface companies have volunteered to show and famous’’ that he says are the only Transportation Act. me their tax returns, but by all ac- ones that benefit, also benefit under If we really are going to borrow $46 counts, these are the businesses that their alternative. billion from China or from whomever will devour the lion’s share of the tax Mr. BECERRA. Will the gentleman and add to the deficit, if we have that breaks in this legislation. yield? capacity, for heavens sakes, we should Mr. Speaker, 3 percent of the busi- Mr. CANTOR. I will not yield. invest it in rebuilding and renewing nesses in America will get 56 percent of Mr. Speaker, we are here to provide America. the tax breaks provided. The rich and the kind of relief to the small business The SPEAKER pro tempore. The famous will get most of the money. men and women that will benefit from time of the gentleman has expired. 125,000 millionaires in America will get this. Mr. LEVIN. I yield the gentleman an $58,000 in tax breaks this year alone, With that, I yield 2 minutes to the additional 30 seconds. which is the first year of this tax gentlewoman from Tennessee (Mrs. Mr. BLUMENAUER. With this $46 break. That’s how targeted this par- BLACK). billion, added to the bipartisan Senate ticular bill is. Mrs. BLACK. Thank you, Mr. Leader, bill that passed with 74 votes—half the More than that, what we find is that for allowing me to be here today. Republicans—we could have a robust most Americans don’t believe that our I have spent the last year and a half reauthorization of the Surface Trans- tax system is fair. They believe that it traveling throughout the Sixth Con- portation Act and create hundreds of is skewed towards the very wealthy. gressional District that I represent thousands of family-wage jobs. Not by H.R. 9 proves that they are right. Sev- talking to small-, medium-, and large- picking winners and losers, but by enty percent of Americans believe that size businesses. What I have asked going back to the day when we used to the tax system is skewed against them them across the board is, what is it work together on a bipartisan basis to and favors the very wealthy. If Paris that would help you to be able to grow fund infrastructure and to help Hilton, who has what we understand your business. strengthen every community around are about five employees based in Bev- What I hear from them is that there’s the country. erly Hills, can take advantage of this a lot of uncertainty out there, and they Reject this gimmick. If we have an tax cut, or if Donald Trump or Larry are concerned already about large bur- extra $46 billion we’re going to borrow, Flynt or Kim Kardashian or Oprah dens of increasing taxes, more regula- invest it in rebuilding and renewing Winfrey—all small business people— tions, more mandates. They really fear America—really helping small business can take advantage and get, maybe, what Washington will do to them next. and strengthening the environment in $58,000 in tax breaks while most small What if we said to small businesses, every community across America. businesses will get barely anything, that really are the engine of our eco- Mr. CANTOR. I now yield 1 minute to then I think the American public is nomic growth, that we’re going to do the gentlewoman from Kansas (Ms. correct. something for you instead of to you? JENKINS). What if Washington encouraged growth Ms. JENKINS. I thank the leader for b 1130 instead of causing small businesses to yielding. Remember, most businesses in Amer- live in fear that one more tax might Job growth is my top priority, and no ica are sole proprietorships. Most of sink them? one can deny that small business is the those sole proprietorships have no em- Over 20 years ago, my family started engine that drives our economy and ployees. Under this bill, if you’re a sole a small business, and I can tell you our job market. Since 1980, small busi- proprietor and have no employees, you that if the conditions were like they nesses have accounted for 60 percent of get zero of the tax break benefits. are today then we probably would not

VerDate Mar 15 2010 01:37 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00016 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.034 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE April 19, 2012 CONGRESSIONAL RECORD — HOUSE H1995 have taken the risk to put everything This bill today adds $46 billion to the I think our Tax Code should be de- on the line and start our small busi- deficit. Without a hearing? Why don’t signed to promote simplicity, competi- ness. That’s why I’m supporting Leader we just do these proposals by unani- tion, and economic growth. We can do CANTOR’s 20 percent small business tax mous consent and bring them to the this by reducing the burden on small cut that would allow small business floor? We missed the point of what the American businesses that are respon- owners to, one, retain more capital; vetting process does, where people sible for the majority of new jobs cre- two, invest in their business; and stand in front of that committee and ated in our country every day. three—this is the key—to hire more they offer expert testimony. But our This bill will provide an immediate workers. friends on the Republican side, they 20 percent deduction for millions of In the State of Tennessee, we have call this a small business tax cut. This small businesses, one-third of which, over 96,000 small businesses that em- is about the theater of the election by the way, are owned by women and ploy over 1.38 million individuals. In year, and everybody knows it. one-fifth of which are minority-owned. This is the same group that would particular, we have 12,000 small b 1140 women-owned businesses, which have have you believe, incidentally, that tax been, until recently, the fastest grow- cuts pay for themselves, even though Let’s allow small businesses to rein- ing sector of our small business econ- you can’t find an economist who will vest in new jobs, new opportunities, omy. adhere to that position. and new products that will grow our So it’s not just a cliche that getting They have run up the deficits in this economy. Mr. Speaker, I urge my col- small business growing again is the country recklessly, and in the name of leagues to listen, as I have done, to the key to our economic growth; it’s a fact. a political campaign, they’re prepared voices of their small business owners Mr. LEVIN. Mr. Speaker, I yield my- to do it again. They want to pour syrup and operators back home. self 1 minute. on the plate and not even bother to Mr. LEVIN. May I ask the distin- What the leader said is not correct. serve pancakes with it. In our current guished gentleman from the State of The substitute provides some help to fiscal situation, to have not vetted this Ohio how much time remains on both those who invest in property, plant, sort of proposal in front of the com- sides? and equipment. That’s not Paris Hil- mittee is a mistake. The SPEAKER pro tempore. The gen- ton. You want to talk about helping small tleman from the State of Michigan has Mr. CANTOR. Will the gentleman business with tax policy? Count me in. 151⁄2 minutes, and the gentleman from yield? We’ve worked on some good bipartisan Virginia, the majority leader, has 201⁄2 Mr. LEVIN. Let me finish. legislation over the last 20 years to minutes remaining. You didn’t yield at all to us, so let help small business, not to do it in this Mr. LEVIN. I yield 2 minutes to the me finish. manner where this legislation has been gentleman from Texas (Mr. DOGGETT), It has to be a factory that’s built brought to the floor. another active member of our com- here. We had a markup in the committee mittee. I yield to the gentleman from Cali- yesterday where cuts are being pro- Mr. DOGGETT. I thank the gen- fornia. posed to senior citizens, to low-income tleman. Mr. BECERRA. What the gentleman families, eliminate funding for Meals You know, the Republicans are al- Mr. LEVIN is saying is correct, and I On Wheels, and yet they bring this pro- ways so much better in the names they want to correct Mr. CANTOR because he posal up today with a straight face. give these bills than what’s in them. I misspoke about the Democratic alter- Mr. CANTOR. I yield myself 30 sec- think in considering this one we have native. onds. to look at what it is and what it is not. The Democratic alternative requires I just want to set the record straight, It is not an economic recovery meas- that a small business make an invest- Mr. Speaker. ure. A nonpartisan analysis has shown ment in a plant or small machinery. If The Ways and Means Committee had that the economic benefits are consid- Paris Hilton wishes to invest in a plant two small business hearings on the im- ered to be so small as to be incalcu- and machinery, then perhaps she will plications of tax reform in which this lable. qualify. If Larry Flynt would want to proposal was raised. In addition, the It is not helpful to sole proprietors, invest in plants and machinery for his gentleman well knows that there was a who do not benefit at all from this bill. business, perhaps he would qualify. markup. It is not a way to reduce the deficit Otherwise, this is a giveaway. Ours re- Mr. NEAL. Will the gentleman yield? or the national debt. Indeed, this is a quires you to make investments in Mr. CANTOR. If I could finish. No. measure that will add $46 billion to the America. There was a markup in committee in national deficit. Mr. LEVIN. Mr. Speaker, I yield 2 which even the gentleman offered an We were told only yesterday that be- minutes to another distinguished mem- amendment and then withdrew it be- cause of a pressing national debt, we ber of our committee, the gentleman cause it was ruled nongermane. Of can no longer provide one source of fed- from Massachusetts (Mr. NEAL). course there was a markup. Of course eral funding for hot meals for seniors Mr. NEAL. Thank you, Mr. LEVIN. this idea has been the subject of discus- through the Meals on Wheels program Mr. Speaker, I stand in opposition to sion in committee. in Texas, that we could not afford to this proposal today. Again, I just wanted to set the record provide Federal resources that are nec- I have just a couple of thoughts, hav- straight, Mr. Speaker. essary there on child abuse or on keep- ing had long-term membership here. With that, I yield 1 minute to the ing a child with disability at home, or This is not the way to write legisla- gentlewoman from Illinois (Mrs. helping seniors maintain their inde- tion, and the Members on the other BIGGERT). pendence, that there just aren’t the re- side know this. Mrs. BIGGERT. I thank the majority sources to do that. But today we are The chairman of the Ways and Means leader for yielding. told there is $46 billion we can add to Committee should be here with us Mr. Speaker, Tuesday was Tax Day, the debt for a nice-sounding bill. today to discuss this. This should have when Americans everywhere were re- What is this bill? It is another failed been vetted into the full committee. minded just how much Uncle Sam Republican retread. It is a measure This should have had an active markup takes out of our pockets each and that will help those at the top rather with full participation. every year. But it was also a reminder than those who are really struggling to I revere this institution, and I revere that not all of our tax policies are cre- get to the top. I’m concerned about the that committee. Members spend their ated equal. icehouse on the west side of San Anto- careers trying to become members of Some in Washington want to raise nio, about the beauty shop in the Ways and Means Committee. To taxes simply to feed the Federal Gov- Lockhart, about the auto repair shop bring this legislation to the floor today ernment’s spending addiction, even in San Marcos. But those are not the without a hearing is ill-considered. when higher taxes on things like cap- places that will receive the principal From a historic perspective, why ital gains and investments would only benefits of this measure. don’t we talk about how we got into discourage growth and shrink revenue Indeed, 125,000 millionaires in this this situation? in the long term. country will get more in tax benefits

VerDate Mar 15 2010 01:37 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00017 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.037 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE H1996 CONGRESSIONAL RECORD — HOUSE April 19, 2012 out of this than many of the owners of I have to tell you, I remember in are poor want to be poor. And that’s those businesses earn during an entire Ways and Means Committee the debate your anthem. But it can’t find reality. year, in fact, more than the median in- on ObamaCare, the Republicans offered It has no foundation, and it is im- come throughout San Antonio, Austin, an amendment to shield small busi- moral—immoral. and central and south Texas. nesses from tax increases, and our ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE What this measure is is a boon. Democrat friends said they can’t do The SPEAKER pro tempore. The The SPEAKER pro tempore. The that because small businesses have had Chair asks all Members to heed the time of the gentleman has expired. it too easy all these years—small busi- gavel. Mr. LEVIN. I yield the gentleman an nesses have had it too easy all these Mr. CANTOR. Mr. Speaker, I yield 1 additional 30 seconds. years. minute to the gentlewoman from Mr. DOGGETT. It will be a boon to It’s time to give our small businesses highly paid professionals, private eq- South Dakota (Mrs. NOEM). a break, time to get this economy back Mrs. NOEM. I thank the leader for uity firms, hedge fund managers, and on track. It’s time to let them keep yielding. professional sports teams. I think what they have worked so hard to earn. You know, it never ceases to amaze they’ve received enough economic ben- Mr. LEVIN. I yield 2 minutes to an- me the misleading claims that will efit in the past with the Bush tax cuts. other very active member of our com- We ought to be focusing our support come from my colleagues on the other mittee, the gentleman from New Jer- for small businesses not on those who side of the aisle at times. One of them sey (Mr. PASCRELL). are already at the top and should be that has been talked about a lot here Mr. PASCRELL. Mr. Speaker, we are contributing a little to the shared sac- today is the fact that only the rich and really in the middle of the theater of rifice necessary to get our national famous would benefit from this piece of the absurd. I’m not opposed, and appar- debt under control and meet basic legislation. Well, I have been sitting ently the other side is not opposed, to human needs. back here, and I have been trying to Mr. CANTOR. Mr. Speaker, I yield stimulus spending for the economy. I think of even a handful of famous peo- myself 30 seconds. don’t know where they have been for ple in South Dakota that are going to Again, Mr. Speaker, just to correct the last 18 months. Let’s make effec- benefit from this. tive stimulus. the record, the gentleman from Texas b 1150 indicated that this bill doesn’t benefit Since you mentioned the CBO, Mr. sole proprietors. Sole proprietors are, CANTOR, through the Chair, they rank I can’t come up with it; but I’ve got in fact, the disproportionate bene- this bill next to last in bang for the over 20,000 jobs in the State of South ficiaries under this bill. According to buck in job creation. You didn’t quote Dakota, and 20,000 different businesses the Committee on Joint Taxation, 17.9, CBO about that. that are going to benefit from this almost 18 million sole proprietors ben- Through the Speaker, the Joint Com- piece of legislation. That’s why I’m efit under this bill, again, to set the mittee on Taxation said the economic supporting it. My constituents in record straight, Mr. Speaker. impact is so small as to be incalcu- South Dakota so many times only look I yield 2 minutes to the gentleman lable—your own analysis on your Web at government as an entity that costs from Texas (Mr. BRADY), not only the site. It’s very clear it’s going to cost, them money and makes it very detri- chairman of the Subcommittee on add, $1.1 million, for every job created, mental and hard for them to succeed. Trade but, as well, the vice chairman to the deficit. When the government can actually of the Joint Economic Committee. I rise in strong opposition to this leg- step in and do something that makes it Mr. BRADY of Texas. I want to first islation. Just yesterday, in order to easier for them to succeed and help thank Leader CANTOR for his leadership comply with the majority’s budget drive that success, then that is some- on economic issues, especially those that violates the deal Speaker BOEH- thing we should be behind, and that’s along Main Street. That’s what this is NER agreed to last year—that deal is why the Small Business Tax Cut is a about. This isn’t about Paris Hilton, clear, public—the Ways and Means perfect example of that situation. Larry Flynt, or even Hilary Rosen, the Committee cut $53 billion in health Small businesses create jobs, and President’s top adviser, who recently care tax credits, child tax credits, so- they also employ almost half of all the denigrated women who choose to work cial services block credits. You cut it private sector employees in this coun- at home. It’s not about celebrities. It’s yesterday for the disabled, for the el- try. This bill is going to free up the about small business people. They’re derly who are most vulnerable. In New cash so that those small businesses can the ones who have been left behind in Jersey, they could lose millions of dol- keep people employed when they’ve hit the Obama economy. lars for Meals on Wheels, foster care. tough times and maybe reinvest in Think about this. We have tens, lit- This is unacceptable. We are voting their businesses. It’s the key to what erally, tens of millions of Americans to add $47 billion to the deficit today we need to do, and I hope we can all who can’t find a full-time job. There with a giveaway to professional sports come together and support this good are millions more who have just given teams—oh, you didn’t know that—or legislation before us. up. They don’t even look for work any- hedge fund operators or managers or Mr. LEVIN. I yield 2 minutes to an- more. Here we are. It’s hard to believe whatever they call themselves, and other distinguished member of our there are fewer Americans working multimillion-dollar partnerships and committee, the gentleman from New today than when the President took of- corporations. York (Mr. CROWLEY). fice. Bailouts, stimulus, Cash for Yes, $47 billion goes to 125,000 mil- Mr. CROWLEY. I thank the gen- Clunkers, housing bailout, Solyndra lionaires. tleman, my friend from Michigan, for bailout, all of that, fewer Americans The SPEAKER pro tempore. The yielding me this time. working, 700,000 fewer women with a time of the gentleman has expired. Mr. Speaker, I rise in strong opposi- job. Mr. LEVIN. I yield the gentleman an tion to this bill. There are a number of Small businesses have borne the additional 30 seconds. reasons to oppose this legislation. brunt of this terrible recovery. It is Mr. PASCRELL. But each of them One, this bill is not targeted towards time we help them instead of raising gets a tax cut, Mr. Speaker, $60,000. job creation. Frankly, it is not tar- taxes on those who succeed. Why don’t This is wrong. geted at all. It will provide 99.6 percent we let them keep 20 percent more of The same report found that the best of all businesses with a tax break, re- the income they earn, the sales they options for job growth include aid to gardless of whether or not they create make, the weekends they work, the States and increased safety net spend- one American job or not. charges they put on their credit cards, ing, something I know that the other Two, this bill does not prevent busi- all they do to survive and succeed in side opposes. nesses from taking a tax cut even when this economy? Republicans are deter- In fact, the Agriculture Committee they lay off workers. mined to give them a chance to suc- just voted yesterday to cut food Three, this bill fails to help the busi- ceed until this economy can get back stamps, get this, by $34 billion; like all nesses most in need, such as new busi- to work, to hire new workers, to keep of those people on food stamps want to nesses or start-ups. They’re not eligible new workers. be on food stamps, all those people that for any provisions in this bill.

VerDate Mar 15 2010 01:37 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00018 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.040 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE April 19, 2012 CONGRESSIONAL RECORD — HOUSE H1997 Fourth, this bill will add billions to fected by tax compliance and high tax this is so small as to be incalculable. the deficit, which will hurt economic rates. The Small Business Administra- That’s why Bruce Bartlett, former eco- growth in America. tion reports that the average tax com- nomic adviser to President Reagan Five, and most egregiously, this bill pliance cost per employee for small said, It will do nothing whatsoever to provides companies who are in the businesses is almost three times the increase employment. midst of offshoring jobs with a tax cost of larger firms. And according to So what’s this all about? It gives a break. the NFIB, tax issues are the single big tax break to the wealthiest individ- During committee consideration of most significant set of regulatory bur- uals while adding $50 billion to our def- this legislation, I offered an amend- dens for most small firms. The Small icit and debt. ment to deny this tax deduction to any Business Tax Deduction Act is simple, Now, Mr. Speaker, this week high- company that reduces the number of fair, and gives small businesses access lights the unfortunate doublespeak American workers and jobs while cor- to badly needed capital to invest in from our Republican colleagues when it respondingly increasing its foreign their companies while providing a lit- comes to the deficit. On the Senate workforce. Additionally, the amend- tle more certainty to help them plan side, a majority of Republicans voted against a bill to apply the Buffett rule, ment stated if a company offshores for the future. meaning that we were going to ask U.S. jobs next year, after this 1-year As chairman of the Small Business millionaires to pay the same effective tax expenditure expires, the funds Committee, I hear from small business tax rate as many of their employees would be recaptured or taken back by owners every single week about their paid and use that $50 billion toward the Treasury. This is so a company regulatory and tax burdens. Through deficit reduction. Here in the House, cannot take the money this year and our interactive Web page, ‘‘Small Biz we’re providing a $50 billion tax break run away with American dollars and Open Mic,’’ we have heard that tax that adds to the deficit, and this one is jobs next year and put them overseas. policies may drive some small firms targeted disproportionately to very My amendment enjoyed the support out of business. wealthy individuals. of every Democrat on the Committee of On Tuesday, Wendy Koller, owner of There’s another sort of strange irony. Ways and Means. Unfortunately, it was Koller Moving and Storage in Fort When we were debating the payroll tax not supported by one Republican on Smith, Arkansas, said: cut for a year that would benefit 160 that committee. Americans and their We are hesitant to hire new employees for million Americans, our Republican col- taxpayer dollars should not be sub- fear of what new tax burdens await us with leagues dragged their feet and then sidizing the destruction of American the expiration of the older tax law and the said this was all a gimmick, it was a 1- jobs. new health care laws coming. We are con- year thing, it was a sugar high. Well, Let me state: Democrats recognize cerned that these new issues may be the ones that push us out of business. at least the nonpartisan Congressional we live in a global economy. We recog- Budget Office said that it would gen- nize that many of our companies need Last Saturday, Debbie Peacock, erate economic activity. In fact, they to operate internationally to remain owner of a fabricating distributor in ranked it near the top. competitive and expand their markets Mesa, Arizona, wrote: This is a 1-year thing that’s going to and market share. But Americans Any additional taxes will only stop any give a great sugar high to the wealthi- should not have their hard-earned tax chance of a recovery, and the government est individuals. They are going to be dollars—$46 billion in this case, Mr. needs to realize we need every penny to in- floating on this. But it’s ranked near Speaker—taken away and used to sub- crease staff, which puts people back to work. the bottom by the nonpartisan Con- sidize this kind of business activity. I can go on and on and on with exam- gressional Budget Office in terms of The SPEAKER pro tempore. The ples like these. economic activity. time of the gentleman has expired. Yesterday, our committee held a You want to know another irony? Mr. LEVIN. I yield the gentleman an hearing on the flood of new taxes that When it came to providing a tax break additional 15 seconds. are just around the corner, such as new for 160 million Americans, payroll tax Mr. CROWLEY. Democrats worked taxes from the health care law and the cut, we paid for it. We offset the cost of hard while in the majority to end the massive tax increase that’s going to that. When it comes to providing a practice of incentivizing the offshoring occur if the 2001 and 2003 tax cuts ex- sugar high, $50 billion tax cut that dis- of U.S. jobs in the Tax Code. We killed pire. All of these measures could send proportionately benefits the wealthy, a number of perverse tax loopholes and the economy into a tailspin, costing we don’t offset it. We put it on our na- reinvested the revenue into initiatives thousands of jobs. tional credit card. We increase the focused on creating U.S. jobs and as- That’s why the Small Business Tax debt. Who pays for that? We’ve heard sisting America’s small businesses. Deduction Act is necessary and is on a bipartisan basis that’s our kids, Defeat this bill. It is immoral. We going to provide that tax relief for our grandkids. We’re all going to be should not be spending U.S. tax dollars America’s most robust job creators. paying for that debt. With that, Mr. Speaker, I would ask in this way. b 1200 Mr. CANTOR. Mr. Speaker, I yield that my colleagues support this bill. myself 30 seconds just to respond to the Mr. LEVIN. I yield 3 minutes to the So Mr. Speaker, this is worse than a gentleman. I think he put his finger on ranking member of the Budget Com- gimmick. It’s not good for the econ- the problem here. The problem with his mittee, the gentleman from Maryland omy, it adds to the deficit, and I urge that we reject this bill. kind of amendment is the problem with (Mr. VAN HOLLEN). Mr. CANTOR. I ask unanimous con- the Tax Code today, because it means Mr. VAN HOLLEN. Thank you, Mr. sent that the gentleman from Michigan that if you’re a business, under his LEVIN. (Mr. CAMP) be permitted to control the rule, you would have to come to Wash- Mr. Speaker, here we go again. This balance of the time. bill provides a windfall tax break to ington to seek eligibility for a tax The SPEAKER pro tempore. Is there break or seek eligibility for a tax hedge fund owners, to big Washington objection to the request of the gen- favor. And if you’re on the approved law firms, to the very wealthy, even if tleman from Virginia? list in Washington, then you can go they don’t hire a single person—not There was no objection. and benefit and have an advantage over one. In fact, in a cruel hoax and twist The SPEAKER pro tempore. The others. on this, wealthy individuals can qual- Chair would advise that the gentleman That’s not what we believe. We be- ify for this tax break even if they fire from Michigan (Mr. CAMP) now con- lieve in helping all small businesses. people this year. And in some cases trols 141⁄2 minutes, and the gentleman With that, I yield 2 minutes to the they can also get a bigger tax break if from Michigan (Mr. LEVIN) has 51⁄4 min- gentleman from Missouri (Mr. they do not make their investments utes. GRAVES), the Small Business Com- this year. The Chair recognizes the gentleman mittee chairman. Mr. Speaker, this place sometimes from Michigan (Mr. CAMP). Mr. GRAVES of Missouri. Mr. Speak- gets to be a fact-free zone. We have the Mr. CAMP. I yield 1 minute to the er, tax season reminds us that small nonpartisan Joint Tax Committee say, distinguished gentleman from Lou- businesses are disproportionately af- The economic activity generated by isiana (Mr. SCALISE).

VerDate Mar 15 2010 01:37 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00019 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.042 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE H1998 CONGRESSIONAL RECORD — HOUSE April 19, 2012 Mr. SCALISE. I thank the gentleman Democrat, a Republican—an economic even get an internship to. That small for yielding. adviser, somebody who advised Ronald business paid my way through college. Mr. Speaker, I rise in support of the Reagan how to get this economy mov- But when I sit and measure and talk Small Business Tax Cut. Louisiana ing—unlike George Bush, I might add— and listen to my constituents, they alone will see 80,000 small businesses and what did he say? What did he say talk about jobs. that will be able to benefit from this about this bill that you have brought They know that there have been 11 and over 890,000 workers that will ben- to the floor—which, by the way, The recessions since World War II, and efit from this. Yet my colleagues on Wall Street Journal today called ‘‘a every other recession we’ve come out the Democrat side maybe think that tax gimmick.’’ The Wall Street Jour- of it stronger and faster. Even the it’s their money. They don’t want nal called this bill that you are offer- greatest recession of ’82, when interest those small businesses to be able to ing today a tax gimmick. And so what rates were double digit, and you meas- keep it, and they think that Wash- did Bruce Bartlett say? ‘‘It will do ured until today, we’d have 13 million ington can spend it better than the nothing whatsoever to increase em- more jobs. But the policy holds it back. small businesses. ployment.’’ So I thought I would go back and I How has that worked, by the way? Point number one, this is not a jobs would analyze just the nearest time in They don’t want small businesses to be bill. It will not grow the economy, and America’s culture of where we created able to keep some more of the hard- it will not do what all of us think needs jobs. So I went back to the end of the earned money that they make so they to be done. last recession, 2001, to the beginning of can invest it in their business. They’d And they went on to say that ‘‘it is this recession in 2007. When people look rather keep it up here for critical nothing more than an election-year at America, they think that was a Washington spending like the $535 mil- giveaway to a favored Republican con- pretty good time in America. The jobs lion they blew on Solyndra, or maybe stituency,’’ a political gimmick, a tax grew, the economy was strong, and the $850,000 that Obama’s GSA blew on gimmick that will cost us $46 billion people were able to buy houses. And I the Vegas junkets. Those are the kind this year alone and $460 billion—let me analyzed who created the jobs. Do you of things that they would rather see, say, round that to half a trillion as in- realize during that time in America, and so they don’t want those small flation pushes it up, a half-a-trillion- small business added 7 million jobs? businesses to be able to keep more of dollar hole adding to the budget deficit Large corporations cut a million. their hard-earned money. They want to that confronts this country that all So to hear somebody on the floor, keep taxing businesses. They’ve added Americans know we must address. Mr. Speaker, say they’re some special over $1.9 trillion of new taxes in Presi- My colleagues, it takes no courage to constituency? Well, I’m very proud to dent Obama’s own budget. vote for this bill. What takes courage stand with the constituency that will We’ve tried it their way. More than 2 is to pay for things. What takes cour- grow jobs. I’m very proud to stand million Americans have lost their jobs age is to say we have an obligation. today to cut 20 percent to put people since President Obama took office. What took courage was to make sure back to work in America. How about we actually try letting that we paid our debts. We didn’t do it. Mr. Speaker, I will stand proudly be- small businesses keep more of their So what happened? We almost took hind this bill because statistics, the hard-earned money so they can create this country to the brink of default. facts, and the history of America have good jobs for hardworking taxpayers? Ladies and gentlemen of this House, Mr. LEVIN. I yield 3 minutes to our proven we are the strongest when small summon the responsibility, judgment, distinguished whip, the gentleman business is strongest, we are strongest and intellectual honesty that our pub- and create jobs through small business, from Maryland (Mr. HOYER). Mr. HOYER. Mr. Speaker, ladies and lic expects. Vote against this bill. not through more politics. gentlemen of this House, it is hard to ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Policy matters, small business mat- call us to responsibility, but that’s The SPEAKER pro tempore. The ters, and jobs in America matter. what our public wants. Our public Chair would again ask all Members to That’s why I tell Members on both wants it on the right, they want it on heed the gavel and also to address their sides of the aisle, this is an American the left, and they want it on the mid- remarks to the Chair and not to other bill for American jobs, for small busi- dle. This is fiscally a totally irrespon- Members in the second person. ness to be strong again in America, and sible piece of legislation, and you know Mr. CAMP. Mr. Speaker, I yield 3 America will be strong again. it. And I know you know it, and Amer- minutes to the distinguished majority Mr. LEVIN. I reserve the balance of ica ought to know you know it. whip, the gentleman from California my time. Ladies and gentlemen, what this bill (Mr. MCCARTHY). Mr. CAMP. At this time, I yield 2 does is blow a $46 billion hole in the Mr. MCCARTHY of California. I minutes to the distinguished gentle- deficit this year alone. But ladies and thank the distinguished chairman of woman from Washington (Mrs. MCMOR- gentlemen, Mr. Speaker, the people of Ways and Means. It’s an honor to be RIS RODGERS). America need to know that we use 10- able to speak on this floor. It’s an Mrs. MCMORRIS RODGERS. Thank year figures for the most part, so this honor to listen to the debate on both you, Mr. Chairman. means $460 billion. sides. And what’s so ironic is that when Mr. Speaker, I rise in strong support Now, I know all of you on your side you listen to the debate, you wonder, of the legislation before us today. of the aisle—because I’ve been here for what happens here becomes law, but Small businesses are the foundation a substantial period of time—are next more importantly, do we ever measure, of our economy. It’s the small busi- year going to say we’re going to raise do we ever measure what creates jobs? nesses that drive job creation in Amer- taxes on small businesses and put that Do we ever measure in America who ica. And every time I’m home in east- 20 percent back. Bet me. You’re going creates jobs? ern Washington, it is such a privilege to say if we did that, it would be the Now, some of you know my story. I to sit down with small business owners. largest tax increase in the history of actually grew up in a family of Demo- I’m always inspired by these people small business. So you’re going to do it crats. I got rather fortunate. I didn’t who have an idea to improve our lives year after year. have great grades, so I went to junior and they turn it into a reality. One of the previous speakers said college. The family didn’t have enough One such business that I recently that we’re taking money from small money to send me away. I worked toured was called Made Naturally. Two businesses. Well, let me tell you who through the summer, I took my money, stay-at-home moms had an idea to you’re taking money from today: my and I created a small business. At the come up with natural cleaning prod- children, your children; my grand- end of 2 years, I then had enough ucts 2 years ago. They put together a children, your grandchildren; and, yes, money to pay my whole way through business plan, and they have now exe- my two great-grandchildren. That’s college, so I sold my business. cuted it, hired 13 employees, and they who’s going to pay this $46 billion hole I applied for a summer internship are doing well in Spokane, Washington. that you’re creating today. with my local Congressman, and he And when I toured their business, what And what does Bruce Bartlett, eco- turned me down. But today on this they told me was that it is the tax bur- nomic adviser to Ronald Reagan—not a floor, I sit elected to the seat I couldn’t den and the regulatory uncertainty

VerDate Mar 15 2010 01:37 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00020 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.044 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE April 19, 2012 CONGRESSIONAL RECORD — HOUSE H1999 that is preventing them from hiring Mr. SCHILLING. I thank Leader CAN- them that they have no choice but to any new employees right now. TOR for giving me the opportunity to be cut contributions to their employees’ Just like these two business owners here today and speak in favor of the 401(k) plans and their health insurance in Spokane, Washington, there are men Small Business Tax Cut Act. premiums or be forced to lay off em- and women all across this country that As Illinoisans filed their tax returns, ployees. Paige told me this 20 percent face the same challenges when it comes folks in my district felt the pinch of tax cut will keep more money in their to growing businesses. As someone who the tax increases imposed on them by business, allowing her to maintain ben- worked in a family business for more our State’s lawmakers, who last year efits for her employees. than 13 years, I can say they are cer- raised personal income taxes by 66 per- Mr. LEVIN. I reserve the balance of tainly right. cent and corporate taxes by 45 percent. my time. So I’d like to shed some light, espe- State lawmakers told us that taxes Mr. CAMP. I yield 1 minute to the cially on the women, the entrepre- would be used to pay Illinois debt and distinguished gentlewoman from neurial women right now whose busi- prevent budget deficits down the line; Michigan (Mrs. MILLER.) nesses are hurting because of this ad- but the truth, as many of us feared, is Mrs. MILLER of Michigan. Mr. ministration’s policies. It’s important that these tax hikes have done nothing Speaker, we all understand that Amer- because two out of three businesses to help our State. In fact, Illinois un- ican small businesses are the engine of right now are being started by women employment has remained above 9 per- job creation. I think the Democrats are in America. They’re actually the fast- cent for 36 straight months, since waging a war on small business. est-growing segment in our U.S. econ- March of 2009. And thanks to Illinois I have spoken with so many small omy, and every dollar they save in tax hikes, rising gas prices, and Fed- business job creators in my district, taxes is one more dollar they can spend eral tax rates as high as 35 percent, our and they all share the same message: in hiring a new employee. government overregulation and govern- The current path is both unaccept- small businesses are strapped for cash. ment overtaxation is stifling their able and unsustainable. It’s time to As a small business owner, I know ability to grow. This House has already change course. It’s time to give Amer- the pain all too well. Rather than ad- acted decisively to address government ica’s small business owners tax breaks, vancing partisan and un-serious show overregulation, and today we’re going not tax burdens. votes—votes that don’t lower gas prices, don’t encourage economic to act decisively to give small busi- b 1210 growth, and don’t impact our deficit— nesses the tax relief that they need to It’s time to give them relief, not just we in the House want to ensure more grow. rhetoric. It’s time to give them the opportunities for job seekers and job Allowing small businesses with fewer flexibility and freedom they need to creators. than 500 employees a 20 percent tax cut create jobs. So it’s time to move for- Mr. LEVIN. I now yield 30 seconds to to free up capital and to allow those ward with the legislation that will do the distinguished gentleman from New businesses to invest in and to grow just that. I strongly support this bill. York (Mr. ISRAEL). their businesses to create the jobs that Mr. LEVIN. I reserve the balance of Mr. ISRAEL. I thank my friend. Mr. we so desperately need in this economy my time. Speaker, we keep hearing that this is a is the right thing to do. So I was very Mr. CAMP. Mr. Speaker, I yield 1 small business tax cut. It is not. It is a disappointed to see that President minute to the distinguished gentle- bait and switch. One-half of this so- Obama threatened to veto this bill, be- woman from North Carolina (Ms. called ‘‘small business tax cut’’ will go cause, Mr. Speaker and Mr. President, FOXX). to millionaires. So you call it a small I would respectfully tell you that hun- Ms. FOXX. I thank the gentleman for business tax cut, and they give away dreds of small manufacturing firms in yielding time. the store to millionaires, Mr. Speaker. Michigan that are struggling to buy I want to say that our colleagues re- They are saying that we have to dis- new equipment, to pursue new cus- veal their attitude toward taxpayer mantle Medicare because they say we tomers and grow their businesses are money when they say this will cost us. can’t afford it on the one hand, and on not among the corporations with the The attitude of our colleagues on the the other hand they are lavishing mil- biggest profits; and those small busi- other side of the aisle, Mr. Speaker, is lionaires with a $46 billion tax cut. If nesses would benefit from this bill. You that all the money that hardworking you’re one of 125,000 millionaires in can contrast that with General Elec- taxpayers earn belongs to the govern- America, you get $58,000 from this bill. tric, which made over $14 billion in ment. This doesn’t cost us; this allows If you’re a senior on Medicare, it costs profits in 2010 and yet paid no Federal some people to keep more of their you an additional $6,000 for your medi- income tax. money. cine. I oppose this bill. The SPEAKER pro tempore. The I rise today in support of H.R. 9, the Mr. CAMP. I yield 1 minute to the time of the gentlewoman has expired. Small Business Tax Cut Act, which distinguished gentlewoman from North Mr. CAMP. I yield the gentlewoman would provide America’s private sector Carolina (Mrs. ELLMERS). an additional 15 seconds. with the resources needed to help su- Mrs. ELLMERS. Thank you, Mr. Mrs. MILLER of Michigan. We need percharge desperately needed hiring. It’s worth mentioning how this bill Chairman. to remember that the CEO of General Mr. Speaker, I would like to speak will benefit women since one-third of Electric is actually the head of Presi- today on the intellectual responsibility the firms directly benefiting from the dent Obama’s Jobs Council. act are owned by women. In North of H.R. 9. So, Mr. Speaker, I would say that we Back in my home town of Dunn, I Carolina, small businesses with be- can trust the American small busi- have friends who are pharmacists. tween one and 500 employees employ nesses to spend their money more wise- 205,490 individuals; 23,348 of those busi- They own and run an independent phar- ly than government will ever do. nesses are women-owned. Mr. Speaker, macy started by their father 60 years Again, it’s mystifying to me that the it’s for these reasons I urge my col- ago. I’m speaking of Paige Houston and Democratic Party seems to be waging a leagues to support H.R. 9. Cathy Blackman. war on the small business community Mr. LEVIN. Mr. Speaker, how much Paige told me the other day that ini- of America. time is remaining, please? tially in this recession they were Mr. CAMP. Mr. Speaker, I yield 1 The SPEAKER pro tempore. The gen- missed because people were afraid to go minute to the distinguished gentleman tleman from Michigan (Mr. CAMP) has without their medications, and they from Illinois (Mr. KINZINGER). 71⁄2 minutes remaining. The gentleman were willing to pay the money even Mr. KINZINGER of Illinois. You all from Michigan (Mr. LEVIN) has 21⁄4 min- though the economy was starting to know the saying, ‘‘money is power,’’ utes remaining. take a turn. Today, things are so bad right? I think we all can agree in this Mr. LEVIN. I reserve the balance of that people are going without their Chamber that the one thing that we my time. medications, which as a result is a de- want to do is empower small business. Mr. CAMP. Mr. Speaker, I yield 1 crease in the number of customers they How do you empower small business? minute to the distinguished gentleman have and the amount of revenue com- You let them keep more of the money from Illinois (Mr. SCHILLING). ing in. Now their accountant has told they earn so they can go out and they

VerDate Mar 15 2010 01:37 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00021 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.045 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE H2000 CONGRESSIONAL RECORD — HOUSE April 19, 2012 can invest in new products so they can 2 million jobs aren’t there because of over the course of 20 years, but I hire people. I’d love to get people back Obama’s health care policies alone, worked a lot with small businesses. to work. I’d love to empower small regulatory policies, tax policies. Small And in small business it really is about business. That’s why we want to let business is struggling. how do you grow, how do you have the them keep more of what they earn. Now, let me tell you, Congress can- positive cash flow, Mr. Speaker, to I did an initiative in my district not create jobs. We’re not going to cre- grow your business, to invest in new called the One More Jobs Initiative, ate jobs with this bill. We’re going to technology, new equipment, to take where it asks small business owners, allow small businesses to create jobs. your ideas and spin them forward and What do you need from the Federal You’ll either choose government or grow jobs. That’s your whole nature as Government to create just one more you’ll choose the people. You’ll choose an entrepreneur in America, and as it job? A pretty noble concept: instead of government to continue to create jobs should be. pontificating here, let’s actually ask like with Solyndra, and we saw the dis- In Oregon, we’ve got 86,000 small those who create jobs. The number one aster there, or you’ll allow the people businesses employing more than three- answer I got, Mr. Speaker, was: let us to create those jobs. I’m putting my quarters of a million people. This legis- keep more of the money we earn and trust in the people. lation will help those small businesses let us hire people. Give us tax cer- Mr. CAMP. Mr. Speaker, at this time, have what is called ‘‘positive cash tainty. we’re prepared to close. flow.’’ That is from whence jobs flow. That’s why I rise in support today of Mr. LEVIN. I yield the balance of my If you have the money and you can this tax cut package, because this is time to a distinguished member of the retain it rather than have to give it all exactly what small business needs to committee, the gentleman from Cali- up to the government, then you’re continue to be successful, to pull this fornia (Mr. THOMPSON). going to make wise choices in your country out of this recession we’re in, Mr. THOMPSON of California. I business to grow your business, be- and continue to reclaim our mantle as thank the gentleman for yielding. cause it’s your competitive nature to the most powerful country in the Mr. Speaker, I rise in opposition to grow your business, which means to world. this bill today—a $46 billion price tag, create jobs in the economy. Mr. CAMP. At this time, I yield 1 and it’s unpaid for. Moreover, 1 year is My friends on the other side of the minute to the distinguished gentleman not tax certainty if you’re a small aisle had no problem a few years ago from North Carolina (Mr. MCHENRY). business person. spending $1 trillion to have the govern- I rise also as a small business person. Mr. MCHENRY. I thank the chairman ment borrow the money and pick win- Equally as troubling as this bill, un- for yielding. ners and losers and waste it. paid for, $46 billion bill, is the fact that Our Nation is at a crossroads. This This is a good way to spur jobs and yesterday, in the Ways and Means President wants to take more money growth in our economy. I urge its pas- Committee, the majority passed a bill from the private sector and continue sage. the exponential growth of the Federal that they said was to reduce the def- Mr. STARK. Mr. Speaker, I rise today in op- Government. We want to make sure icit. But instead, what they did is they position to H.R. 9, the Small Business Tax Cut that job creators are able to reinvest cut programs that were incredibly im- Act, a bill that provides a $46 billion tax break their hard-earned money back into portant to the elderly, to children, to for the wealthy paid for by ordinary working their businesses to expand and grow the disabled, programs that allowed people. This bill will send half of the tax cuts the economy and get this job creation people help with their daycare so they to those with annual incomes over $1 million cycle going again. That’s why we sup- could go to work. If those people don’t and 80 percent of benefits to those earning port a 20 percent tax cut for small busi- have daycare, they’re not going to be more than $200,000. Once again, Republicans nesses. The President, on the other able to go to work. And, at the same are extending a helping hand to those who hand, wants to raise taxes on small time, the Ag Committee passed a bill need it least, including professional sports businesses and job creators. to cut food stamps. teams, law firms, lobbying firms, and account- There are 22 million small businesses These actions are hard to under- ing firms. helped by this bill, and I think it’s nec- stand, even in these most difficult essary that we pass this bill today. I times. But even harder to understand The Republican Leadership claims that we urge my colleagues to support a 20 per- is, in light of this fiscally irresponsible need this legislation to create jobs, yet the cent tax cut for small businesses so we bill today, those bills were passed. non-partisan Joint Committee on Taxation, can create jobs and make a more pros- I said yesterday that it was a bad day JCT, tells us that this bill will do no such thing. perous America. to be poor. Well, today is a bad day to The Congressional Budget Office, CBO, ranks be fiscally responsible, because this bill broad business tax deductions like this bill as b 1220 is anything but fiscally responsible. one of the least effective proposals for pro- The SPEAKER pro tempore. The And it’s wrong to claim on Wednes- moting economic growth. This is not sur- Chair would advise both sides, the gen- day that you have to cut daycare for prising. H.R. 9 gives a tax deduction to any tleman from Michigan (Mr. CAMP) has low-income people or put seniors at business, even those that don’t hire workers 21⁄4 minutes, and the gentleman from risk, disabled people at risk, and chil- or even lay off workers. Michigan (Mr. LEVIN) has 13⁄4 minutes. dren at risk to cut the deficit but then Today’s bill caps off another banner week Mr. CAMP. At this time, I have two turn around on Thursday and add $46 for House Republicans that once again laid additional speakers. One of them will billion to the deficit. That’s just bare their priorities: hand tax breaks to those close, so I have one speaker before clos- wrong. who don’t need them, and cut the programs ing. The Joint Committee on Taxation that help the middle class, the poor, the sick, Mr. LEVIN. I reserve the balance of said that this bill’s economic impact is and the elderly. Yesterday, the Ways and my time. ‘‘so small as to be incalculable.’’ I can Means Committee passed partisan legislation Mr. CAMP. At this time, I yield 1 tell you, the people that will be hurt that would take away the child tax credit for 3 minute to the distinguished gentleman across this country, that hurt won’t be million children, weaken health coverage for from Alabama (Mr. BACHUS). incalculable. 350,000 middle class Americans, and elimi- Mr. BACHUS. Mr. Speaker, this re- I strongly oppose this bill. nate funding for the Social Services Block cession is different, and the difference Mr. CAMP. I yield the balance of my Grant that provides child care for 4.4 million is there’s no recovery. And that is a time to the distinguished gentleman children and serves 1.7 million low-income historic difference. from Oregon (Mr. WALDEN). seniors through programs like Meals on Now, what is different about this re- Mr. WALDEN. Mr. Speaker, my wife Wheels. That’s a total of $53 billion in cuts to cession and all our other recessions and I were small business owners for the safety net so Republicans can pay for when we had a recovery is government more than two decades, and we still re- more take cuts for the rich. This is class war- policy. Government policy has stifled tain part of that business, so I know fare and one side is clearly winning. job creation. Normally, at this time in what it’s like to meet a payroll. I know If we want to commemorate Tax Day with a a recovery, 65 percent of the jobs are what it’s like to employ people. We vote on a tax bill, we should be voting on the being created by small businesses. But only had 15 to 20 people on our payroll Buffett Rule, a bill that promotes tax fairness.

VerDate Mar 15 2010 01:51 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00022 Fmt 4634 Sfmt 9920 E:\CR\FM\K19AP7.049 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE April 19, 2012 CONGRESSIONAL RECORD — HOUSE H2001 The Buffett Rule is targeted—it will only im- receive nearly half of the benefit from this leg- before this chamber today that would provide pact taxpayers who have income over $1 mil- islation, while true small businesses accrue a one-time tax windfall in the tens of thou- lion and are not paying their fair share of only 10 percent. Once again, as the largest sands of dollars to entertainers, sports fran- taxes. Nearly 65 percent of taxpayers who corporations get fatter, small businesses have chises, smut peddlers, and other wealthy busi- earn more than $1 million pay lower tax rates to struggle for scraps. ness owners, while doing little to create jobs for those who make less than $100,000. There Small, fast growing startups, which often for struggling middle-class America and add- is something wrong with our tax system when have little tax liability, would see no tax sav- ing $46 billion to the national deficit. ordinary working families are paying higher tax ings—yet these are the firms most likely to My colleagues on the other side of the aisle rates than some of the wealthiest individuals. create jobs. Even worse, this plan would give are bringing this legislation before the House According to CBO, the Buffett Rule would tax breaks to companies shedding employ- in the name of tax relief for small businesses generate $47 billion over the next decade. We ees—exactly the wrong incentive. Finally, this and job creation. could use this $47 billion to create jobs, revi- bill does nothing to address small business I would happily vote in favor of legislation talize the middle class, and sustain a safety owners’ top concern—a lack of demand for that provided targeted relief to small busi- net for the poor, the sick, the elderly, and their goods and services. A real small busi- nesses and spurred much-needed job creation other groups who are being abused by the ness bill would tackle that problem. in my district and throughout the country. Republican Majority. This is not a small business bill—it is a mil- Unfortunately, H.R. 9 would do no such It is time we got our priorities straight and lionaire’s tax break bill. Vote no so we can thing. In fact, the Joint Committee on Taxation stopped providing handouts to the most fortu- focus on real solutions to small businesses’ stated, ‘‘the effects of the bill on economic ac- nate at the expense of lower income Ameri- needs. tivity are so small as to be incalculable.’’ cans. I strongly oppose this legislation and Mr. FLAKE. Mr. Speaker, I rise in support of Similarly, a report last year by the Congres- urge my fellow members to join me in voting this provision to get construction of Keystone sional Budget Office rated the approach taken ‘‘no’’. XL pipeline underway. in H.R. 9 to be one of the least cost-effective Mr. MORAN. Mr. Speaker, I rise today in For months, Members from both sides of ways to encourage growth or create jobs in a strong opposition to H.R. 9, an irresponsible the aisle have worked tirelessly to impress weak economy. CB0 estimated that this legis- bill that, in the name of cutting taxes for small upon the Administration the urgent need for lation’s approach would create one job or business and spurring job growth, would pro- the Keystone XL pipeline project to proceed. fewer per $1 million of budgetary cost. vide a windfall for those who need them least. The justification for Keystone as a safe and However, H.R. 9, if enacted, would be a This one-year measure would increase our critical boon to private sector job creation and boon to wealthy taxpayers. Nearly half of the federal deficit to the tune of $46 billion. American energy security has not changed. benefit would go to individuals with incomes of H.R. 9 provides qualifying businesses with This project will still create thousands of jobs. over $1 million. less than 500 employees a 20 percent tax de- It will still increase the nation’s capacity to Seventy-six percent of small business em- duction for domestic business income which transport crude oil by 830,000 barrels per day; ployers have incomes below $200,000, but could be taken during the current tax year. In- and the State Department is still on record this group only received 16 percent of the stead of supporting local small businesses stating that Keystone ‘‘poses little environ- benefit under H.R. 9. And 55 percent of small though, this bill inordinately benefits wealthy mental risk’’ and will lead to ‘‘no significant im- business employers have incomes below business owners. Half of the tax cuts in the bill pacts to most resources.’’ $100,000 but this group receives only six per- would go to the four percent of small business Unfortunately, the Administration’s reluc- cent of the total benefit. owners earning over $1 million a year. The 55 tance to proceed with the Keystone XL pipe- At a time when our Nation must tackle its percent of small-business employers that have line has left some other figures unchanged growing deficit, and push further job creation, incomes below $100,000 would receive only 6 since debate on Keystone began. The unem- the last thing this Congress ought to do is give percent of the benefit from this bill. Struggling ployment is still above 8 percent. The U.S. still expensive handouts to the richest individuals small business owners who are operating at relies on the same sources of foreign energy; in our society. an annual loss will not benefit from this bill in and American’s are still asking why? Instead, this Congress ought to be debating any way. Yet thousands remain out of work because on how to deliver targeted job creation legisla- The Center for American Progress reports the President refuses to pick up his pen. tion and protect essential safety net programs, that professional sports franchises such as the Americans want more jobs and greater energy like the Supplemental Nutritional Assistance Los Angeles Dodgers, Donald Trump’s Trump security. Construction of the Keystone XL Program and Medicaid, which this House re- Tower Sales & Leasing, and Paris Hilton En- Pipeline will help to ensure both. I urge sup- cently voted to cut in the hundreds of billions tertainment, Inc. are among the businesses port for this provision. of dollars over the next decade in the name of owned by millionaires that would enjoy this tax Mr. WILSON of South Carolina. Mr. Speak- ‘‘deficit reduction.’’ break. er, today, the House is expected to vote on I call on my colleagues on both sides of the This one-time windfall simply will not change the Small Business Tax Cut Act, legislation al- aisle today to stand for commonsense fiscal incentives for hiring. According to the Con- lowing for job creation promoting economic principles and targeted job creation and vote gressional Budget Office (CBO): ‘‘[T]he one- growth by cutting taxes for small business against H.R. 9. Mr. POE of Texas. Mr. Speaker, our small year of tax savings provided by the bill is un- owners. likely to make the costs of much investment in In an opinion piece published Tuesday in businesses are hurting. In the past year, only one in five small busi- physical capital or labor recruitment and train- Politico, Steve Forbes writes ‘‘Real economic nesses has hired. ing worthwhile.’’ In fact, this will incentivize growth has been pathetic during the Obama This is a problem because if small busi- qualifying business to delay investment in Presidency. Last year, the economy grew 1.7 nesses aren’t hiring, we don’t recover. order to maximize taxable income in 2012. Ad- percent. By comparison, the Reagan recovery According to a survey from the U.S. Cham- ditionally, H.R. 9 does not require a company was spectacular, growing at 4.5 percent in ber of Commerce, they are not hiring because to create any jobs or invest in the U.S. econ- 1983, with nearly 3.5 million jobs. In just one they don’t know what Washington, DC is going omy. In fact, if a company reduces their work- month, September 1983, the Reagan econ- to do to them next. force or sends jobs overseas, they would still omy added more than a million jobs, nearly as Four in five small-business owners said that qualify for this 20 percent tax break. many as the economy grew for all of 2011.’’ the taxes, regulations and legislation coming H.R. 9 borrows billions in order to create a In order for our nation to recover from the from Washington made it more difficult for new tax expenditure yet fails to address the economic recession, small businesses must them to hire additional workers. primary issue facing American small business, be given the opportunity to grow and create In other words, our government is getting in lack of consumer demand. This bill chooses jobs. The President and the liberal-controlled the way of economic recovery. anti-tax orthodoxy over fiscal and economic Senate continue to stall dozens of bills which H.R. 9 will be a breath of fresh air to them. logic. Given our current fiscal situation we would promote jobs. I urge my colleagues to For every $100 of income, small businesses cannot afford another reckless giveaway to the vote in favor of this bill and help American will save $7 in federal taxes. wealthy. I urge my colleagues to reject H.R. 9. families create jobs. That’s 7 percent they can put towards hiring Ms. VELA´ ZQUEZ. Mr. Speaker, I rise in op- In conclusion, God Bless our troops and we a veteran back from Iraq or someone who position to this legislation. There is nothing in will never forget September 11th in the Global hasn’t been able to find a job for years. this bill specifically for small businesses. In- War on Terrorism. Washington needs to get out of the way and stead, this is another attempt to award tax Mr. GENE GREEN of Texas. Mr. Speaker, let our small businesses do what they do best: breaks to the wealthy. In fact, millionaires will I rise in opposition to H.R. 9, the legislation hire new workers.

VerDate Mar 15 2010 02:38 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00023 Fmt 4634 Sfmt 9920 E:\CR\FM\A19AP7.019 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE H2002 CONGRESSIONAL RECORD — HOUSE April 19, 2012 And that’s just the way it is. At a time when strong leadership is needed Why are we spending time on a policy that Mr. RAHALL. Mr. Speaker, I support tax and to address our nation’s crippling debt, it is un- everyone knows has no chance of being regulatory policies that help small businesses fortunate that President Obama has contin- signed into law as currently drafted? Could it attract investment and create jobs, but I also ually failed to lead by example. He even be because, as recently reported by Politico, believe that we in the Congress must be re- walked away from the recommendations of his ‘‘Congress is readying for a political fight with sponsible stewards of taxpayer funds. own bipartisan fiscal commission. dueling tax votes this week that will define I voted against H.R. 9 because it would Unfortunately, the House today has done no each party’s priorities in this election year’’? spend an enormous amount of money without better than the Senate or president. The Wall The final paragraph of today’s Wall Street any requirements that the funds be invested in Street Journal, in an editorial today headlined Journal editorial noted that ‘‘[t]he economy job creation or even invested in the American Bipartisan Tax Gimmickry, candidly described works best when investors and companies can economy. Any company that receives the tax the proposal before us as a ‘‘gimmick’’ and operate under predictable policies that allow benefit provided by this bill could use it to bol- went on to say that Republicans ‘‘would do them to better judge their risks for the long ster profits while laying off workers and ship- more for the economy and their political pros- term. Reagan-era officials understood this, but ping American jobs overseas. Half of the tax pects if they began to educate the country too many Republicans have forgotten. The breaks would go to only 0.3 percent of tax- about sensible tax policy.’’ U.S. economy doesn’t need another tax gim- payers, those with incomes exceeding $1 mil- The bill before us is a temporary, one-year mick. It needs a tax reform that includes a lion, costing $46 billion while the rest of our proposal that will increase our debt by $46 bil- permanent cut in individual and business tax Nation is forced to endure the impact of pain- lion, without an offset to pay for this additional rates for everyone.’’ ful spending cuts in programs important to deficit spending. I want to stress: $46 billion The president and some on the other side working middle-class families. That’s hardly for a temporary, one-year proposal. of the aisle say that our debt crisis is because fair and certainly not right. I want to remind my colleagues that two Americans are under-taxed. Like President This measure is more about scoring political months ago Congress essentially wiped out Reagan said, and I believe, ‘‘the problem is points in an election year—trying to play the $95 billion in savings cut from the 2011 not that people are taxed too little, the prob- gotcha—when we should be trying to move and 2012 appropriations bills when it approved lem is that government spends too much.’’ forward on measures that would give a real extending the payroll ‘‘holiday’’ for another There is no question that the real problem is boost to job creation and economic growth. year at a cost of $93 billion. overspending, especially on runaway entitle- Mr. WOLF. Mr. Speaker, I have been con- We are now talking about adding to this ment costs and through hundreds of billions of sistent in my support for comprehensive tax spending for a total of $139 billion in tem- so-called tax expenditures. reform that lowers rates for individuals and porary, one-year stimulus spending with no It is no secret that our inefficient and bur- businesses by eliminating the types of carve offsets; no way to pay for it. densome tax code is undermining consumer outs and deductions in the tax code that, as We are already running trillion dollar deficits and business confidence, further weakening recently reported by The Hill, have let 26 For- for the fourth straight year. We are $15.6 tril- our fragile economic recovery. Comprehensive tune 500 companies pay a negative tax rate lion in debt. We have unfunded obligations tax reform is needed now more than ever to over a four-year span. To be clear, that means and liabilities of $65 trillion. Republicans on rid our tax code of earmarks and loopholes these companies are getting paid by the gov- the Senate Budget Committee earlier this that promote crony capitalism and let Wash- ernment while hard-working men and women month posted a chart on its Web site showing ington pick winners and losers. pay their taxes. that our debt at the end of 2011 was greater Two weeks ago I was one of 38 members Something is very wrong with this picture. than the combined debt of the United Kingdom to vote for the bipartisan Cooper-LaTourette That is precisely the reason why we need real, and the entire Eurozone. substitute amendment to the budget, which long-term comprehensive tax reform. Last We need look no further than the riots in was modeled on the work of the Simpson- year, Senator TOM COBURN identified nearly Europe to see the destructive impact that re- Bowles Commission. The Simpson-Bowles $1 trillion in annual spending through the tax sults from the crushing reality of a government Commission produced a credible plan that code through tax earmarks that benefit special unable to deliver promised entitlements to its gained the support of a bipartisan majority of interests such as video game developers, citizens. There have been riots in Belgium, the commission’s 18 members. Called ‘‘The hedge fund managers, NASCAR, dog and Spain, France, Ireland, England, Italy, Latvia, Moment of Truth,’’ the commission’s report horse tracks and ethanol producers. Unlike an and Greece. And yet we are considering an- made clear that eliminating the debt and def- earmark in an annual appropriations bill, these other proposal that moves us closer to Eu- icit will not be easy and that any reform must tax earmarks are far worse because once en- rope’s instability. begin with entitlements. Mandatory and discre- acted they typically exist in perpetuity. We are now spending $4.3 billion a week tionary spending also has to be addressed as Using these extensive tax loopholes, Gen- simply on interest to service the debt. And this well as other ‘‘sacred cows,’’ including tax re- eral Electric (GE) paid no federal taxes in is at historically low interest rates. form and defense spending. 2010. Yet, the Congressional Research Serv- The Congressional Budget Office (CBO) The Cooper-LaTourette substitute was a ice has found that GE was honored by a Chi- projects that by 2022 we’re going to be send- balanced and ambitious plan, that, while not nese newspaper for ranking 32nd among com- ing $11.6 billion out the door each week to na- perfect, was the type of bitter medicine nec- mercial service sector companies that paid tions such as China, which is spying on us, essary to address our deficit. There is never a taxes to China. where human rights are an afterthought, and convenient time to make tough decisions, but Let me repeat: GE paid no taxes to the Catholic bishops, Protestant ministers and Ti- the longer we put off fixing the problem, the United States, but was a significant source of betan monks are jailed for practicing their worse the medicine will be. Unfortunately, the tax revenue for China. China? China, a coun- faith, and oil-exporting countries such as amendment failed. try that is spying on us, persecutes people of Saudi Arabia, which funded the radical For nearly six years I have pushed bipar- faith and has a long record of horrific human madrasahs on the Afghan-Pakistan border, re- tisan legislation to set up an independent com- rights abuses. sulting in the rise of the Taliban and al Qaeda. mission to develop a comprehensive deficit re- Rather than putting forth true comprehen- And, unless we change course, according to duction package that would require an up-or- sive tax reform—the type that would bring sta- the CBO’s long term estimate, every penny down vote by the Congress. I have said that bility to the economy by providing certainty for collected of the federal budget will go to inter- the enormity of the crisis we face demands job creators and families—both parties in both est on the debt and entitlement spending by that everything must be on the table for dis- chambers have pushed political agendas in- 2025. cussion—all entitlement spending, all domestic stead of what is best for America. Every penny. That means no money for na- discretionary spending, and tax policy; not tax The so-called ‘‘Buffett rule’’ the Senate at- tional defense. No money for homeland secu- increases, but reforms to make the tax code tempted to pass earlier this week was de- rity. No money to fix the nation’s crumbling simpler and fairer and free from special inter- feated, and rightly so. Washington Post col- bridges and roads. No money for medical re- est earmarks. umnist Ruth Marcus points out President search to find a cure for cancer or Alzheimer’s I have supported every serious effort to re- Obama’s pursuit of this policy ‘‘is pure political or Parkinson’s disease. solve this crisis: the Bowles-Simpson rec- stunt. . . . It won’t pass. And even if that hap- Quite frankly this borrowing is unsustain- ommendations, the ‘‘Gang of Six’’ effort, and pened, it would have a negligible impact on able, dangerous and irresponsible. the ‘‘Cut, Cap and Balance’’ bill—including the the exploding debt—$4.7 billion a year, or less Given our nation’s fiscal obligations, one Balanced Budget Amendment. None of these than four-tenths of 1 percent of this year’s def- must ask: Can we really afford another costly, solutions were perfect, but they all took the icit—and take a tiny nibble out of income in- one-year policy absent the needed com- steps necessary to rebuild and protect our equality.’’ prehensive reform? economy.

VerDate Mar 15 2010 02:38 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00024 Fmt 4634 Sfmt 9920 E:\CR\FM\A19AP7.012 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE April 19, 2012 CONGRESSIONAL RECORD — HOUSE H2003 But powerful special interests continue to cost of capital, or ‘‘bonus depreciation,’’ in the ‘‘(D) 10-PERCENT-OR-LESS DIRECT OWNERS.— hold this institution hostage and undermine first year for new investment in machinery and The term ‘10-percent-or-less direct owner’ every good faith effort to change course. And equipment—a proposal even conservative means, with respect to any qualified small business, any direct owner of such business that’s why we have these actions on the floor economists consider one of the most produc- who owns (or is considered as owning under of the House and Senate instead of the much- tive ways to boost economic growth. the applicable non-family attribution needed proposal to enact comprehensive re- This is not the time to hand another tax cut rules)— form. to our nations’ wealthiest as H.R. 9 proposes, ‘‘(i) in the case of a qualified small busi- Mr. Speaker, I do not sign political pledges and I urge my colleagues to oppose this mis- ness which is a corporation, not more than 10 to special interest groups. My only pledge is guided legislation. percent of the outstanding stock of the cor- the oath of office I take on the first day of The SPEAKER pro tempore. All time poration or stock possessing more than 10 each Congress. And that is why I cannot par- for debate on the bill has expired. percent of the total combined voting power of all stock of the corporation, or AMENDMENT IN THE NATURE OF A SUBSTITUTE take in this political vote that would further add ‘‘(ii) in the case of a qualified small busi- OFFERED BY MR. LEVIN to the deficit without dealing with the under- ness which is not a corporation, not more lying drivers of our deficit and debt. Mr. LEVIN. Mr. Speaker, I offer an than 10 percent of the capital or profits in- As The Hill reported this week: ‘‘Repub- amendment in the nature of a sub- terest of such business. licans and Democrats are hurtling toward a fis- stitute. ‘‘(E) APPLICABLE NON-FAMILY ATTRIBUTION cal cliff, but neither side wants to take the The SPEAKER pro tempore. The RULES.—The term ‘applicable non-family at- plunge. Clerk will designate the amendment. tribution rules’ means the attribution rules ‘‘In less than nine months, Bush-era tax The text of the amendment is as fol- of subsection (c) or (e)(3) of section 267, as lows: the case may be, but in each case applied rates are scheduled to expire, hiking rates for without regard to section 267(c)(2). Strike all after the enacting clause and in- the middle class as well as top income earn- ‘‘(3) W–2 WAGES.—For purposes of this sec- sert the following: ers. At the same time, automatic spending tion— cuts will kick in. The combination, coupled with SECTION 1. SHORT TITLE. ‘‘(A) IN GENERAL.—The term ‘W–2 wages’ the expiration of the payroll tax cut and other This Act may be cited as the ‘‘Small Busi- means, with respect to any person for any factors, would constitute a blow that analysts ness Tax Cut Act’’. taxable year of such person, the sum of the say could imperil the economic recovery and SEC. 2. DEDUCTION FOR DOMESTIC BUSINESS IN- amounts described in paragraphs (3) and (8) COME OF QUALIFIED SMALL BUSI- of section 6051(a) paid by such person with send America crashing back into recession.’’ NESSES. respect to employment of employees by such We need to simplify the tax code to lower (a) IN GENERAL.—Part VI of subchapter B person during the calendar year ending dur- tax rates. But we need to do it through real, of chapter 1 of the Internal Revenue Code of ing such taxable year. comprehensive reform, not through a piece- 1986 is amended by adding at the end the fol- ‘‘(B) LIMITATION TO WAGES ATTRIBUTABLE TO meal approach that makes it too politically lowing new section: QUALIFIED DOMESTIC BUSINESS INCOME.—Such easy to ignore our overall finances. I vote ‘‘SEC. 200. DOMESTIC BUSINESS INCOME OF term shall not include any amount which is QUALIFIED SMALL BUSINESSES. not properly allocable to domestic business ‘‘present’’ to bring attention to this point. ‘‘(a) ALLOWANCE OF DEDUCTION.—In the Mr. PENCE. Mr. Speaker, I rise today in gross receipts for purposes of subsection case of a qualified small business, there shall (d)(1). strong support of the Small Business Tax Cut be allowed as a deduction an amount equal ‘‘(C) OTHER REQUIREMENTS.—Except in the Act (H.R. 9), which will provide tax relief to to 20 percent of the lesser of— case of amounts treated as W–2 wages under Hoosier small businesses and help them to ‘‘(1) the qualified domestic business income paragraph (4)— grow and create jobs. of the taxpayer for the taxable year, or ‘‘(i) such term shall not include any In Indiana there are more than 100,000 ‘‘(2) taxable income (determined without amount which is not allowed as a deduction small businesses that employ more than a mil- regard to this section) for the taxable year. under section 162 for the taxable year, and ‘‘(b) DEDUCTION LIMITED BASED ON WAGES lion Hoosiers. Nearly 14,000 of these small ‘‘(ii) such term shall not include any PAID.— amount which is not properly included in a businesses are owned by women. As I travel ‘‘(1) IN GENERAL.—The amount of the de- return filed with the Social Security Admin- across Indiana and hear from these hard- duction allowable under subsection (a) for istration on or before the 60th day after the working Hoosier entrepreneurs and taxpayers, any taxable year shall not exceed 50 percent due date (including extensions) for such re- one thing is clear: Washington, DC needs a of the greater of— turn. new approach to fostering job growth. With ‘‘(A) the W–2 wages of the taxpayer paid to ‘‘(4) CERTAIN PARTNERSHIP DISTRIBUTIONS unemployment in Indiana at a disheartening non-owners, or TREATED AS W–2 WAGES.— 8.4 percent, Hoosiers are looking for tax relief ‘‘(B) the sum of— ‘‘(A) IN GENERAL.—In the case of a qualified ‘‘(i) the W–2 wages of the taxpayer paid to that will help their friends and neighbors get small business which is a partnership and individuals who are non-owner family mem- elects the application of this paragraph for back to work. bers of direct owners, plus the taxable year— The Small Business Tax Cut Act reduces ‘‘(ii) any W–2 wages of the taxpayer paid to ‘‘(i) the qualified domestic business taxable the heavy burden of taxes on Hoosier small 10-percent-or-less direct owners. income of such partnership for such taxable businesses by allowing them to deduct 20 per- ‘‘(2) DEFINITIONS RELATED TO OWNERSHIP.— year (determined after the application of cent of their active income this year. In all, this For purposes of this section— clause (ii)) which is allocable under rules important measure would reduce taxes on job ‘‘(A) NON-OWNER.—The term ‘non-owner’ similar to the rules of section 199(d)(1)(A)(ii) creators by $46 billion, freeing up capital for means, with respect to any qualified small to each qualified service-providing partner business, any person who does not own (and small businesses to grow and take on new shall be treated for purposes of this section is not considered as owning within the mean- as W–2 wages paid during such taxable year employees. ing of subsection (c) or (e)(3) of section 267, to such partner as an employee, and This pro-growth, pro-taxpayer legislation will as the case may be) any stock of such busi- ‘‘(ii) the domestic business gross receipts help to foster new investment in our economy ness (or, if such business is other than a cor- of such partnership for such taxable year and spur job growth. I urge my colleagues to poration, any capital or profits interest of shall be reduced by the amount so treated. support the Small Business Tax Cut Act. such business). ‘‘(B) QUALIFIED SERVICE-PROVIDING PART- Mrs. MALONEY. Mr. Speaker, I rise in ‘‘(B) NON-OWNER FAMILY MEMBERS.—An in- NER.—For purposes of this paragraph, the strong opposition to H.R. 9, the so-called dividual is a non-owner family member of a term ‘qualified service-providing partner’ Small Business Tax Cut Act, which, instead of direct owner if— means, with respect to any qualified domes- ‘‘(i) such individual is family (within the helping small businesses or growing the econ- tic business taxable income, any partner who meaning of section 267(c)(4)) of a direct is a 10-percent-or-less direct owner and who omy, is merely another tax giveaway to the owner, and materially participates in the trade or busi- rich. ‘‘(ii) such individual would be a non-owner ness to which such income relates. Americans are demanding that we take ac- if subsections (c) and (e)(3) of section 267 ‘‘(5) ACQUISITIONS AND DISPOSITIONS.—The tion to create jobs and spur economic growth, were applied without regard to section Secretary shall provide for the application of but this legislation before us today adds $46 267(c)(2). this subsection in cases where the taxpayer billion to the deficit in the next year alone, fails ‘‘(C) DIRECT OWNER.—The term ‘direct acquires, or disposes of, the major portion of to create jobs and actually discourages the in- owner’ means, with respect to any qualified a trade or business or the major portion of a small business, any person who owns (or is vestments our economy needs. separate unit of a trade or business during considered as owning under the applicable the taxable year. Now is the time to support American small non-family attribution rules) any stock of ‘‘(c) LIMITATION BASED ON INVESTMENT IN businesses and grow the economy, as Demo- such business (or, if such business is other QUALIFIED PROPERTY.— crats would do in an alternative proposal, by than a corporation, any capital or profits in- ‘‘(1) IN GENERAL.—The amount of the de- allowing companies to deduct 100% of the terest of such business). duction allowable under subsection (a) for

VerDate Mar 15 2010 01:51 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00025 Fmt 4634 Sfmt 0634 E:\CR\FM\A19AP7.013 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE H2004 CONGRESSIONAL RECORD — HOUSE April 19, 2012 any taxable year shall not exceed the allow- not in existence on January 1, 2012, the de- (D) Section 219(g)(3)(A)(ii). ance which would be determined under sec- termination under paragraph (1) shall be (E) Section 221(b)(2)(C)(i). tion 168(k)(1)(A) with respect to the taxpayer made with respect to calendar year 2012. (F) Section 222(b)(2)(C)(i). for the taxable year if such section were ap- ‘‘(4) APPLICATION TO CALENDAR YEARS IN (G) Section 246(b)(1). plied— WHICH EMPLOYER IN EXISTENCE FOR PORTION (H) Section 469(i)(3)(F)(iii). ‘‘(A) by substituting ‘100 percent’ for ‘50 OF CALENDAR YEAR.—In the case of any cal- (4) Section 163(j)(6)(A)(i) of such Code is percent’, and endar year during which the employer comes amended by striking ‘‘and’’ at the end of sub- ‘‘(B) without regard to paragraph (2). into existence, the number of full-time clause (III) and by inserting after subclause ‘‘(2) ADJUSTMENT OF BASIS.—No deduction equivalent employees determined under (IV) the following new subclause: shall be allowed to the taxpayer under sub- paragraph (2) with respect to such calendar ‘‘(V) any deduction allowable under section section (a) for any taxable year unless the year shall be increased by multiplying the 200, and’’. adjusted basis of property taken into ac- number so determined (without regard to (5) Section 170(b)(2)(C) of such Code is count under paragraph (1) is reduced by the this paragraph) by the quotient obtained by amended by striking ‘‘and’’ at the end of amount of the deduction allowed under sub- dividing— clause (iv), by striking the period at the end section (a) before computing the amount ‘‘(A) the number of days in such calendar of clause (v) and inserting ‘‘, and’’, and by in- otherwise allowable as a depreciation deduc- year, by serting after clause (v) the following new tion under this chapter (including any allow- ‘‘(B) the number of days during such cal- clause: ance otherwise determined under section endar year which such employer is in exist- ‘‘(vi) section 200.’’. 168(k)) for such taxable year and any subse- ence. (6) Section 172(d) of such Code is amended quent taxable year. ‘‘(5) SPECIAL RULES.— by adding at the end the following new para- ‘‘(d) QUALIFIED DOMESTIC BUSINESS IN- ‘‘(A) AGGREGATION RULE.—For purposes of graph: COME .—For purposes of this section— paragraph (1), any person treated as a single ‘‘(8) DOMESTIC BUSINESS INCOME OF QUALI- ‘‘(1) IN GENERAL.—The term ‘qualified do- employer under subsection (a) or (b) of sec- FIED SMALL BUSINESSES.—The deduction mestic business income’ for any taxable year tion 52 (applied without regard to section under section 200 shall not be allowed.’’. means an amount equal to the excess (if any) 1563(b)) or subsection (m) or (o) of section 414 (7) Section 613(a) of such Code is amended of— shall be treated as a single employer for pur- by striking ‘‘deduction under section 199’’ ‘‘(A) the taxpayer’s domestic business poses of this subsection. and inserting ‘‘deductions under sections 199 gross receipts for such taxable year, over ‘‘(B) PREDECESSORS.—Any reference in this and 200’’. ‘‘(B) the sum of— subsection to an employer shall include a (8) Section 613A(d)(1) of such Code is ‘‘(i) the cost of goods sold that are allo- reference to any predecessor of such em- amended by redesignating subparagraphs (C), cable to such receipts, and ployer. (D), and (E) as subparagraphs (D), (E), and ‘‘(ii) other expenses, losses, or deductions ‘‘(f) SPECIAL RULES.— (F), respectively, and by inserting after sub- (other than the deduction allowed under this ‘‘(1) ELECTIVE APPLICATION OF DEDUCTION.— paragraph (B) the following new subpara- section), which are properly allocable to Except as otherwise provided by the Sec- graph: such receipts. retary, the taxpayer may elect not to take ‘‘(C) any deduction allowable under section ‘‘(2) DOMESTIC BUSINESS GROSS RECEIPTS.— any item of income into account as domestic 200,’’. ‘‘(A) IN GENERAL.—The term ‘domestic business gross receipts for purposes of this (9) Section 1402(a) of such Code is amended business gross receipts’ means the gross re- section. ceipts of the taxpayer which are effectively by striking ‘‘and’’ at the end of paragraph ‘‘(2) COORDINATION WITH SECTION 199.—If a connected with the conduct of a trade or (16), by redesignating paragraph (17) as para- deduction is allowed under this section with graph (18), and by inserting after paragraph business within the United States within the respect to any taxpayer for any taxable meaning of section 864(c) but determined— (16) the following new paragraph: year— ‘‘(17) the deduction provided by section 200 ‘‘(i) without regard to paragraphs (3), (4), ‘‘(A) any gross receipts of the taxpayer and (5) thereof, and shall not be allowed; and’’. which are taken into account under this sec- (c) CLERICAL AMENDMENT.—The table of ‘‘(ii) by substituting ‘qualified small busi- tion for such taxable year shall not be taken sections for part VI of subchapter B of chap- ness (within the meaning of section 200)’ for into account under section 199 for such tax- ter 1 of such Code is amended by adding at ‘nonresident alien individual or a foreign able year, and the end the following new item: corporation’ each place it appears therein. ‘‘(B) the W–2 wages of the taxpayer which ‘‘(B) EXCEPTIONS.—For purposes of para- ‘‘Sec. 200. Domestic business income of are taken into account under this section qualified small businesses.’’. graph (1), domestic business gross receipts shall not be taken into account under sec- shall not include any of the following: tion 199 for such taxable year. The SPEAKER pro tempore. Pursu- ‘‘(i) Gross receipts derived from the sale or ‘‘(3) APPLICATION OF CERTAIN RULES.—Rules ant to House Resolution 620, the gen- exchange of— similar to the rules of paragraphs (1), (2), (3), tleman from Michigan (Mr. LEVIN) and ‘‘(I) a capital asset, or (4), (6), and (7) of section 199(d) shall apply ‘‘(II) property used in the trade or business a Member opposed each will control for purposes of this section (applied with re- 1 12 ⁄2 minutes. (as defined in section 1231(b)). spect to qualified domestic business income ‘‘(ii) Royalties, rents, dividends, interest, The Chair recognizes the gentleman in lieu of qualified production activities in- from Michigan. or annuities. come). ‘‘(iii) Any amount which constitutes wages ‘‘(g) REGULATIONS.—The Secretary shall Mr. LEVIN. I yield myself such time (as defined in section 3401). prescribe such regulations as are necessary as I may consume. ‘‘(3) APPLICATION OF CERTAIN RULES.—Rules to carry out the purposes of this section, in- The Democratic amendment in the similar to the rules of paragraphs (2) and (3) cluding regulations which prevent a tax- nature of a substitute offers a 1-year of section 199(c) shall apply for purposes of payer which reorganizes from being treated extension of 100 percent bonus depre- this section (applied with respect to quali- as a qualified small business if such taxpayer ciation for certain U.S. businesses. fied domestic business income in lieu of would not have been treated as a qualified Most importantly, the amendment qualified production activities income and small business prior to such reorganization. offers a stark contrast to the major- with respect to domestic business gross re- ‘‘(h) APPLICATION.—Subsection (a) shall ceipts in lieu of domestic production gross apply only with respect to the first taxable ity’s untargeted giveaway to the very receipts). year of the taxpayer beginning after Decem- wealthy Americans. ‘‘(e) QUALIFIED SMALL BUSINESS.—For pur- ber 31, 2011.’’. First, bonus depreciation is available poses of this section— (b) CONFORMING AMENDMENTS.— only to businesses that make invest- ‘‘(1) IN GENERAL.—The term ‘qualified (1) Section 56(d)(1)(A) of such Code is ments in depreciable property. As a re- small business’ means any employer engaged amended by striking ‘‘deduction under sec- sult, most of the benefit from the in a trade or business if such employer had tion 199’’ both places it appears and inserting fewer than 500 full-time equivalent employ- ‘‘deductions under sections 199 and 200’’. bonus depreciation provision will flow ees for either calendar year 2010 or 2011. (2) Section 56(g)(4)(C) of such Code is to businesses such as manufacturers ‘‘(2) FULL-TIME EQUIVALENT EMPLOYEES.— amended by adding at the end the following that make significant investments in The term ‘full-time equivalent employees’ new clause: property, plant, and equipment. These has the meaning given such term by sub- ‘‘(vii) DEDUCTION FOR DOMESTIC BUSINESS are the types of businesses that create section (d)(2) of section 45R applied— INCOME OF QUALIFIED SMALL BUSINESSES.— good jobs here in our country. ‘‘(A) without regard to subsection (d)(5) of Clause (i) shall not apply to any amount al- In contrast to the majority’s mis- such section, lowable as a deduction under section 200.’’. taken bill, very little, if any, benefit ‘‘(B) with regard to subsection (e)(1) of (3) The following provisions of such Code would go to lawyers, lobbyists, hedge such section, and are each amended by inserting ‘‘200,’’ after ‘‘(C) by substituting ‘calendar year’ for ‘‘199,’’. fund managers, and entertainers, to ‘taxable year’ each place it appears therein. (A) Section 86(b)(2)(A). mention just a few. These service pro- ‘‘(3) EMPLOYERS NOT IN EXISTENCE PRIOR TO (B) Section 135(c)(4)(A). fessionals simply do not make large in- 2012.—In the case of an employer which was (C) Section 137(b)(3)(A). vestments in depreciable property.

VerDate Mar 15 2010 01:51 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00026 Fmt 4634 Sfmt 0634 E:\CR\FM\A19AP7.014 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE April 19, 2012 CONGRESSIONAL RECORD — HOUSE H2005 Second, bonus depreciation is only economy was in any worse of a situa- the gentlelady from Nevada, SHELLEY available for property used in our coun- tion than it is in today. Raising taxes BERKLEY. try. So a business that builds a new is not good policy on any American. If Ms. BERKLEY. I thank the gen- factory only gets the deduction if the ever there were a starker contrast be- tleman for yielding. factory is built in this country. tween the two visions for America, if I rise in support of the Levin sub- In contrast, the majority’s bill pro- ever there were a starker contrast be- stitute and on behalf of the middle vides a benefit to businesses regardless tween the Republican Party and the class families of Nevada, who are strug- of where they’re expanding or invest- Democratic Party’s visions on how to gling to make ends meet. I’m talking ing. Businesses that cut jobs in the get the economy going, it is what’s about the housekeepers and the card U.S. and expand overseas could get the happening today in Washington, D.C. dealers, the teachers, the nurses, the benefit of H.R. 9. In practice, they Across this hallway, in the United cops on the beat, the ones who work would get no benefit from this amend- States Senate, they are attempting to hard to take care of their families—to ment. raise taxes on America’s small busi- put food on the tables, to fill their cars Third, the incentive to purchase de- nesses—yes, pass-through entities that with gas, to buy new sneakers for their preciable property provides a benefit to pay a rate and take that capital away kids, and to make the mortgage pay- all of the businesses that produce the from them and their ability to invest ments on time. property. The result is a more general in capital, in their ability to hire work- Yet, in spite of these challenges, and widespread economic stimulus. ers. Here in the House of Representa- Washington asks them to give a little Fourth, and finally, bonus deprecia- tives, we are trying to do the opposite. more. Washington Republicans ask tion is a proposal that has had bipar- We’re saying that we’re listening to them to make additional sacrifices and tisan support, unlike H.R. 9. H.R. 9 is these job creators, that we’re listening ask them to carry the extra burden for going nowhere—nowhere—and it should to these people who actually do the wealthy Wall Street millionaires who not. hiring. are not paying their fair share. Why on Vote for and pass this substitute. It Do you know what they’re saying? Earth should a waitress in Nevada pay is sound policy and can become the law Their access to capital is drying up, a higher tax rate than a yacht owner? of the land. and the cash in their bank accounts Why should a janitor pick up the slack I reserve the balance of my time. doesn’t quite meet their needs each for a Big Oil executive? Why should a Mr. CAMP. Mr. Speaker, I rise to month. They need more capital to be card dealer sacrifice more than a Wall claim the time in opposition. able to go out and hire people. They Street hedge fund manager? That The SPEAKER pro tempore. The gen- need more capital to be able to go out doesn’t make sense. It’s not fair. Wall and buy equipment. tleman from Michigan (Mr. CAMP) is Street corporations shipping American So that’s what this targeted tax cut recognized for 121⁄2 minutes. jobs overseas and big oil companies is. It’s not for the big corporations. It’s Mr. CAMP. I yield such time as he making record profits don’t need our targeted at people who have fewer than may consume to a distinguished mem- help. Working men and women in this 500 employees. And guess what? You ber of the Ways and Means Committee, country do. can have whatever opinion you want on the gentleman from Illinois (Mr. This piece of legislation would be de- the political ideology. You can’t have SCHOCK). structive to them, their futures, and your own facts, and the facts are these: Mr. SCHOCK. Mr. Speaker, I appre- Over the last 2 years, seven out of 10 their families. It is time we started sid- ciate my distinguished chairman yield- jobs created in this country were cre- ing with middle class families, who ing time. ated by people who employ fewer than most definitely do need our help, and I can understand why the American 500 people, the very people this tax bill that starts by passing the Buffett rule. people are frustrated. We have a Presi- is targeted at. Second, you can’t throw Mr. CAMP. I yield 2 minutes to the dent who, from day one, campaigned on up your hands and wonder why Amer- distinguished gentleman from Oregon raising taxes, raising taxes, then be- ica’s job creators are not hiring, why (Mr. WALDEN). Mr. WALDEN. Thank you, Mr. Chair- came the President of the United unemployment continues to be above 8 States, and his party in the House and percent for the longest time in our man. Mr. Speaker, I am intrigued by my his party in the Senate, they’ve talked country’s history while at the same colleague’s comments a few minutes about raising taxes. All the while, time advocating policies that will drive ago about how we need to support this we’ve had a down economy. All the a stake into the heart of our economy while, we’ve had unemployment above and our small businesses. substitute to help small businesses and 8 percent. Yet the interesting thing is This tax policy targeted at America’s all. that, when the same Democratic Party small businesses will give them the Yet what troubles me is, first of all, controlled the House of Representa- capital they need to stay in business, it’s highly complicated. It further com- tives and controlled the United States to hire those additional workers, to in- plicates the Tax Code. The real bene- Senate for 2 years, they decided not to vest in additional capital, and maybe ficiary will be your accountant because implement the Buffett tax. even to prevent layoffs, maybe even to you’ve got to go through all of these machinations to figure out which side b 1230 prevent somebody from having to go on the unemployment line. It is the right of this you qualify for. At the end of They decided not to increase taxes on policy. I wish that our friends on the the day, according to the Joint Com- Americans. other side of the aisle would embrace mittee on Taxation, because of the im- Why? Because they know what we the policy that they had a year ago, position of the additional restrictions know and they know the truth, and which is that tax increases on any called for by the Democrats in their that is that raising taxes will hurt the American is a bad policy in a down substitute, which we’re debating at economy, that raising taxes is not economy. this moment, the entire relief would be what you do when you want to put peo- Mr. LEVIN. I yield myself 30 seconds. something on the order of $287 million ple back to work. It’s bad policy. It’s The gentleman is correct in that the nationwide to small businesses. why a year ago, despite all the rhetoric contrast is very stark. They’ve tried to So there is your alternative. against the Bush tax cuts, despite all raise taxes on millionaires in the Sen- You’ve got the Democrats saying, the rhetoric against the ’01 and ’03 ate so they pay like the people who boy, according to Joint Tax, $287 mil- rates, this same majority in the United work for them. This bill would provide lion. Oh, that’s going to solve the prob- States Senate and this same President a tax break of $58,000 to those who lem this year. That’s really going to said—what? President Obama said, make over $1 million, which are 125,000 help. We’re saying, no, we want to do Now is not the time to increase taxes taxpayers. That is a stark contrast. something that really affects small on any American. A year ago. Have people very wealthy pay a fair businesses, middle class small busi- If that were good policy a year ago, I share on the one side, and have this nesses—people like my wife and me might submit to you that it’s good pol- House give them a big break. when we were in small business and icy today. I don’t know many Ameri- I now yield 2 minutes to another dis- worked with other small businesses in cans who believed a year ago that the tinguished member of our committee, small communities. They are small

VerDate Mar 15 2010 01:51 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00027 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.052 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE H2006 CONGRESSIONAL RECORD — HOUSE April 19, 2012 businesses that want to keep some of promising women’s reproductive health Committee, and what our Ranking their cash flow home, where they can rights, which is why I can only assume Member LEVIN and we Democrats in invest it in their businesses, in their that these simple drafting errors have the Ways and Means Committee sup- employees, chase these ever-rising come to characterize this bill. I urge ported, offered immediate expenses, a costs of health insurance and all of its rejection. Let’s start over. bonus depreciation for capital invest- these other things that you do in small b 1240 ment for small businesses that was business—the added government costs fully offset and fully paid for by elimi- of regulation, all of the things that Mr. CAMP. Mr. Speaker, how much nating the tax breaks that large oil drive up your costs you need cash to time is remaining? companies are receiving today, who are pay for. The SPEAKER pro tempore. There sitting on record profits, with record We want to help those small busi- are 61⁄2 minutes remaining on both high prices. And it wouldn’t add a nick- nesses because that is the heartbeat, sides. el to the deficit. the growth of where innovation comes Mr. CAMP. Thank you. That’s why I adamantly oppose the from—from jobs in America. It is small At this time, I yield 2 minutes to the underlying bill before us today. It’s the business. This is targeted specifically distinguished gentleman from Illinois, here-we-go-again syndrome around at small businesses in America that a Member of the Ways and Means Com- here. How deep are we going to create can keep some of their money. mittee, Mr. ROSKAM. this hole? It’s a $46 billion tax cut By the way, it’s not the government’s Mr. ROSKAM. Mr. Speaker, I thank that’s not offset, that’s not paid for, money first. The government wasn’t the gentleman for yielding. will go straight to deficit, close to half your best business partner. You went I want to speak for just a minute on of it going to millionaires. An average out and you earned it. You ought to be the substitute. tax savings of over $58,000 is not the able to keep more of it. That’s the dif- Speaking of drafting errors, you can way to get this economy out of the ference in philosophy working out here only assume that there was a drafting hole that it’s in. In fact, when the on the floor; and those of us who have error on the substitute. Look, that Joint Committee on Taxation and the met payrolls, who have paid bills, who happens. If it was a drafting error, the Congressional Budget Office analyzed have dealt with government regulation best thing to do is take the bill out of the Republican underlying bill, they get that. Those who haven’t have a the record and start again. I think the said this is probably the worst thing hard time understanding why, at the notion of comparing $287 million in tax for the buck that we can invest in the beginning, this is the business’s money, relief to $47 billion in tax relief is sim- economy to create the jobs that we the individual’s money, the individual ply a nonstarter. It’s as if the minority need today. Yet, this is a syndrome who has worked hard. It is not the gov- is saying, We sort of accept part of the that happens over and over again from ernment’s money. It is the individual’s premise of this tax cut, but we’re going the other side. They support huge tax money. to cut it down. And then we’re going to cuts without paying for them, driving I urge the defeat of the substitute. cut down the tax relief a little more. our Nation deeper into debt. Mr. LEVIN. I yield 11⁄2 minutes to the And then we’re going to cut down the If they think it’s worthwhile enough gentleman from Virginia (Mr. CON- tax relief a little more and a little and important enough to invest in, NOLLY). more and a little more and a little then pay for it. Find offsets in the Mr. CONNOLLY of Virginia. Mr. more until finally it’s this obscure lit- spending, and let’s have that discussion Speaker, I support the substitute tle bit of nonsense that isn’t going to as far as our priorities. But don’t go amendment, and I oppose the under- do anything. down the easy route of trying to offer lying bill. Here’s what we need to do. We need this illusion of tax relief to all Ameri- I think my Democratic friends actu- to give relief to the small business in cans, especially the iconic small busi- ally have it all wrong about this bill. I my district. I was touring a plant, and ness owner out there, without paying a could be mistaken, but I think there the owner/entrepreneur who started nickel for it and adding to the budget was a drafting error in this legislation. the company said, Look, the smart deficits that are accumulating today. When introducing this bill, the sponsor move for me, Congressman, is to put I tried to explain to folks back home said, It will put more money into the three-quarters of a million dollars into how we got into this hole. Certainly, hands of small business owners to rein- this new production line. It would the most important driving factor is vest those funds in order to retain, cre- mean that I would expand production, the underperforming economy and the ate jobs and grow their businesses, bring in more people, and so forth, and huge recession that we’re trying to plain and simple. have a very simple ripple effect, but climb out of right now. But you can This bill does nothing of the sort. I’m not going to do it. The reason I’m also look back at previous policies not For starters, it does not target small not going to do it is because Wash- so long ago supported by the other businesses as the title claims. Rather ington, D.C., tells me I’m rich. I’m not side: two huge tax cuts that weren’t than maximizing assistance for those rich. I’m just a prudent businessman paid for; two wars that weren’t paid employers who need it most, fewer who’s built a successful business. for; the largest expansion of entitle- than half the tax cuts go to legitimate What we need to do, Mr. Speaker, is ment spending in the prescription drug small businesses. What’s more, there is to create an environment where that bill that wasn’t paid for. It’s little won- no requirement that this taxpayer sub- business owner, that entrepreneur says der we’re facing huge deficits. sidy should be used to hire new work- to himself or herself, I’m willing to in- I reject the underlying bill and sup- ers or expand facilities to grow the vest. port the Levin amendment. economy. I am also puzzled, Mr. Speak- They need relief. They’re begging for Mr. CAMP. I reserve the balance of er, when looking at the bill before us relief in suburban Chicago from their my time. today and previous drafts. You see, ear- tax liability, and this is an opportunity Mr. LEVIN. I yield 11⁄2 minutes to the lier drafts excluded certain businesses now with this language that is au- gentleman from New York (Mr. CROW- like liquor stores, casinos and strip thored by the majority leader and that LEY). clubs from receiving any tax relief; but is on the House floor. Mr. CROWLEY. Mr. Speaker, I think the current draft does not have such I urge its passage, and I urge rejec- it needs to be reiterated once again exclusions. Further, this bill is not off- tion of the substitute. that the sponsor of the underlying bill, set and would actually increase the Mr. LEVIN. I yield 2 minutes to an- the gentleman from Virginia (Mr. CAN- deficit by $46 billion, which I know other distinguished member of our TOR), believes that we need to find pay- runs contrary to the intent of the spon- committee, the gentleman from Wis- fors. We need to pay for it and not add sor, who believes that even in emer- consin (Mr. KIND). to the deficit when it comes to disaster gencies Federal assistance should be Mr. KIND. I want to thank the rank- relief. offset. ing member for yielding me this time. Let’s put that in perspective. A hur- So you see, Mr. Speaker, I know my Mr. Speaker, just to set the record ricane hits, wipes out a town. The colleagues are very busy and are, per- straight, the amendment that was of- American government cannot go and haps, distracted with issues like com- fered by Mr. MCDERMOTT at the Rules rescue and help those people and pay

VerDate Mar 15 2010 01:51 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00028 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.054 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE April 19, 2012 CONGRESSIONAL RECORD — HOUSE H2007 for that without finding a pay-for in amendment, and Mr. CAMP is a man- ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE order to substitute for that payment. ager in opposition. The SPEAKER pro tempore. The When tornados hit middle America The Chair recognizes the gentleman Chair would note that it is not in order and peoples’ lives are destroyed, their from Michigan (Mr. LEVIN). during debate to refer to persons on the homes are destroyed, and cities and Mr. LEVIN. I yield myself the bal- floor of the House as guests of the towns are eviscerated, the Congress has ance of my time. House. to come up with pay-fors in order to The SPEAKER pro tempore. The gen- Pursuant to the rule, the previous help in that disaster relief, but not tleman is recognized for 2 minutes. question is ordered on the bill, as Mr. LEVIN. There is a criticism that when it comes to a tax break for com- amended, and on the amendment of- the bonus depreciation provision panies that will offshore American fered by the gentleman from Michigan doesn’t go far enough. My answer to jobs. (Mr. LEVIN). that is: let’s pass this and then join to- Those tax breaks we don’t have to The question is on the amendment gether. You have supported bonus de- pay for. Mr. CANTOR doesn’t believe you offered by the gentleman from Michi- preciation in the past. You haven’t have to pay for those. But for disasters gan (Mr. LEVIN). acted on it. We do. that hit America and cities and towns The question was taken; and the that are annihilated, they must be paid Let me just say what’s at stake. This bill isn’t going anywhere—it’s going Speaker pro tempore announced that for. I just think that needs to be point- the noes appeared to have it. ed out to the American people. nowhere, but it says everything about the majority’s priorities. Mr. LEVIN. Mr. Speaker, on that I The Levin bill is a far superior bill. It demand the yeas and nays. incentivizes growth within small busi- They oppose raising taxes on the The yeas and nays were ordered. nesses without burdening the American very wealthy, they take a pledge that The vote was taken by electronic de- taxpayer at the same time. applies to the very wealthy, and they Whose money are we talking about? end up with a bill they won’t pay for. vice, and there were—yeas 175, nays This is not the small business person’s They make empty rhetoric about the 236, not voting 20, as follows: money. This is money that otherwise deficit. Essentially what they’re com- [Roll No. 175] would be revenue to the country. This ing here today to do is to make it YEAS—175 worse, by giving a tax break to the is the American taxpayer’s money that Ackerman Frank (MA) Murphy (CT) we’re just giving back to millionaires, very wealthy through this bill. Altmire Fudge Nadler hardworking Americans who work and b 1250 Andrews Garamendi Neal Baca Gonzalez Olver toil every day to give a tax break to We’ve said it many times, nobody re- Baldwin Green, Al Owens millionaires. futes it. You’re stuck on a pledge not Bass (CA) Green, Gene Pallone Becerra Grijalva ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Pascrell to raise taxes even for the very Berkley Gutierrez The SPEAKER pro tempore. The Pastor (AZ) wealthy, and you come today with a Berman Hahn Pelosi Chair would again ask Members to proposal for a tax break for 125,000 tax- Bishop (GA) Hanabusa Perlmutter Bishop (NY) Hastings (FL) heed the gavel. Peters payers making more than a million Blumenauer Heinrich Pingree (ME) The Chair recognizes the gentleman dollars with a tax break of 58,000. Then Bonamici Higgins Polis from Michigan (Mr. CAMP). Boswell Himes to make it still worse, you cut nec- Price (NC) Brady (PA) Hinchey Mr. CAMP. I continue to reserve the essary programs for lower- and middle- Quigley balance of my time. Brown (FL) Hinojosa income families, from child care and Butterfield Hirono Rahall Mr. LEVIN. Does the gentleman from Meals On Wheels. Where’s your con- Capps Hochul Reyes Michigan have any other speakers? Capuano Holden Richardson science? Richmond Mr. CAMP. No. The SPEAKER pro tempore. The Cardoza Holt Mr. LEVIN. I now yield 1 minute to Carnahan Honda Rothman (NJ) time of the gentleman from Michigan Carney Hoyer Roybal-Allard the gentleman from Oregon (Mr. BLU- (Mr. LEVIN) has expired, and the gen- Carson (IN) Israel Ruppersberger MENAUER). tleman from Michigan (Mr. CAMP) has Castor (FL) Jackson (IL) Rush Mr. BLUMENAUER. Mr. Speaker, I 1 Chandler Jackson Lee Ryan (OH) 4 ⁄2 minutes remaining. Chu (TX) Sa´ nchez, Linda heard my good friend from Chicago Mr. CAMP. Mr. Speaker, I yield my- Cicilline Johnson (GA) T. talking about people begging for in- self such time as I may consume. Clarke (MI) Johnson, E. B. Sanchez, Loretta vestment. Well, business is looking for I appreciate at least hearing some of Clarke (NY) Kaptur Sarbanes our assistance, but nobody has come Clay Keating Schakowsky the new-found fiscal responsibility Cleaver Kildee seeking an inefficient effort like this Schiff from my friends on the other side, Clyburn Kind Schwartz that will dig ourselves deeper into debt since the Obama administration has Cohen Kissell Scott (VA) and not have impact. We have offered come into office with help from Demo- Connolly (VA) Kucinich Scott, David Conyers Langevin Serrano alternatives that would not have added crats on the other side of the aisle who Cooper Larsen (WA) to the deficit and would have helped Sewell increased the debt by $5 trillion, with a Costa Larson (CT) Sherman Costello Lee (CA) business right away. ‘‘t.’’ Sires Courtney Levin I’m honored to be joined on the floor Let me just comment on this sub- Smith (WA) Critz Lewis (GA) Speier by a young friend, Johnny Hammer, stitute. It’s not that the bonus depre- Crowley Lipinski Stark who in looking at this assessment, ciation in this legislation doesn’t go Cuellar Loebsack Sutton Cummings Lofgren, Zoe said, This is going to be adding to the far enough. It’s that it doesn’t provide Thompson (CA) deficit. That’s right, and we didn’t need Davis (CA) Lowey bonus depreciation. It does limit the Davis (IL) Luja´ n Tierney to do that. Instead, we should be focus- bill based on the concept of bonus de- DeFazio Lynch Tonko ing on things that are deficit neutral preciation, but this bill has been ana- DeGette Maloney Towns Tsongas that will give American business lyzed by the Joint Committee on Tax- DeLauro Markey Deutch Matsui Van Hollen things that will add productivity right ation. Dicks McCarthy (NY) Vela´ zquez now. Rather than providing the $46 billion Dingell McCollum Visclosky I strongly urge my colleagues to re- of tax relief, this bill only provides a Doggett McDermott Walz (MN) ject this proposal and think about the small fraction of that, 6 percent. Under Donnelly (IN) McGovern Wasserman Doyle McNerney Schultz young Johnny Hammers of this world the underlying legislation, millions of Edwards Meeks Watt investing in our future in a way that is small businesses would be able to make Ellison Michaud Waxman responsible and sustainable. investments, be able to buy equipment, Engel Miller (NC) Welch Eshoo Miller, George Wilson (FL) Mr. CAMP. Mr. Speaker, I am pre- would be able to hire workers. This Farr Moore Woolsey pared to close. substitute guts the bill and will result Fattah Moran Yarmuth I believe the gentleman from Michi- in no economic impact in this country. NAYS—236 gan (Mr. LEVIN) has the right to close. I would urge a ‘‘no’’ vote on the sub- The SPEAKER pro tempore. The gen- stitute. I would urge support for the Adams Amash Bachus Aderholt Amodei Barletta tleman from Michigan (Mr. CAMP) has underlying bill, and I yield back the Akin Austria Barrow the right to close. It is Mr. LEVIN’s balance of my time. Alexander Bachmann Bartlett

VerDate Mar 15 2010 02:17 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00029 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.055 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE H2008 CONGRESSIONAL RECORD — HOUSE April 19, 2012 Barton (TX) Guthrie Peterson Mrs. NAPOLITANO. Mr. Speaker, on Thurs- ‘‘(4) DENIAL OF DEDUCTION FOR MOVING Benishek Hall Petri UNITED STATES JOBS OVERSEAS.— Berg Hanna day, April 19, 2012, I was absent during roll- Pitts ‘‘(A) IN GENERAL.—No deduction shall be Biggert Harper call vote No. 175 due to a family medical Platts allowed under this section with respect to Bilbray Harris Poe (TX) emergency. Had I been present, I would have any employer— Bilirakis Hartzler Pompeo voted ‘‘yea’’ on agreeing to the Levin Sub- Black Hastings (WA) ‘‘(i) which has fewer full-time equivalent Posey stitute Amendment to H.R. 9, Small Business Blackburn Hayworth Price (GA) employees in the United States for the tax- Bonner Heck Quayle Tax Cut Act. able year beginning in calendar year 2012 as Bono Mack Hensarling Reed Mr. FILNER. Mr. Speaker, on rollcall 175, I compared to the preceding taxable year, and Boren Herger Rehberg was away from the Capitol due to prior com- ‘‘(ii) which has more full-time equivalent Boustany Herrera Beutler Reichert mitments to my constituents. Had I been employees outside the United States for the Brady (TX) Huelskamp Renacci Brooks Huizenga (MI) present, I would have voted ‘‘yea.’’ taxable year beginning in calendar year 2012 Ribble as compared to the preceding taxable year. Broun (GA) Hultgren Rigell Buchanan Hunter b 1320 MPLOYEES OUTSIDE THE UNITED Rivera ‘‘(B) E Bucshon Hurt Roby The SPEAKER pro tempore (Mr. STATES.—For purposes of this paragraph, an Buerkle Issa Roe (TN) OMACK employee shall be treated as employed by Burgess Jenkins W ). The question is on the en- Rogers (AL) the employer outside the United States Calvert Johnson (IL) grossment and third reading of the bill. Rogers (KY) Camp Johnson (OH) The bill was ordered to be engrossed whether employed directly or indirectly Rogers (MI) Campbell Johnson, Sam and read a third time, and was read the through a controlled foreign corporation (as Rohrabacher defined in section 957) or a pass-through enti- Canseco Jones third time. Cantor Jordan Rokita ty in which the taxpayer holds at least 50 Capito Kelly Rooney MOTION TO RECOMMIT percent of the capital or profits interest. Ros-Lehtinen Carter King (IA) Mr. DEUTCH. Mr. Speaker, I have a ‘‘(C) EXCEPTION FOR EMPLOYEES SEPARATED Cassidy King (NY) Roskam motion to recommit at the desk. VOLUNTARILY OR FOR CAUSE.—For purposes of Chabot Kingston Ross (AR) Chaffetz Kinzinger (IL) Ross (FL) The SPEAKER pro tempore. Is the this paragraph, the number of full-time Coble Kline Royce gentleman opposed to the bill? equivalent employees shall be determined Coffman (CO) Labrador Runyan Mr. DEUTCH. I am opposed. without regard to any employee separated Cole Lamborn Ryan (WI) The SPEAKER pro tempore. The from employment voluntarily or for cause. Conaway Lance Scalise Clerk will report the motion to recom- ‘‘(D) AGGREGATION RULE.—Subsection Cravaack Landry Schilling mit. (d)(5)(A) shall apply for purposes of this para- Crawford Lankford Schmidt graph.’’. Crenshaw Latham Schock The Clerk read as follows: (b) EFFECTIVE DATE.—The amendment Culberson LaTourette Schweikert Mr. Deutch moves to recommit the bill Davis (KY) Latta Scott (SC) made by this section shall apply to taxable H.R. 9 to the Committee on Ways and Means years beginning after December 31, 2011. Denham Lewis (CA) Scott, Austin with instructions to report the same back to Dent LoBiondo Sensenbrenner the House forthwith with the following Mr. DEUTCH (during the reading). DesJarlais Long Sessions Mr. Speaker, I ask unanimous consent Diaz-Balart Lucas Shimkus amendments: Dold Luetkemeyer Shuler At the end of paragraph (2) of section 200(c) to dispense with the reading of the Dreier Lummis Shuster of the Internal Revenue Code of 1986, as pro- amendment. Duffy Lungren, Daniel Simpson posed to be added by section 2 of the bill, add The SPEAKER pro tempore. Is there Duncan (SC) E. Smith (NE) the following: objection to the request of the gen- Duncan (TN) Mack Smith (NJ) Ellmers Marchant ‘‘(C) DENIAL OF DEDUCTION FOR CERTAIN tleman from Florida? Smith (TX) Mr. CAMP. I object. Emerson Matheson Southerland BUSINESSES.—The term ‘domestic business Farenthold McCarthy (CA) Stearns gross receipts’ shall not include any gross re- The SPEAKER pro tempore. Objec- Fincher McCaul Stivers ceipts attributable to any of the following: tion is heard. Fitzpatrick McClintock Stutzman ‘‘(i) ILLEGAL ACTIVITIES.—Any illegal activ- The Clerk will continue to read. Fleischmann McCotter Sullivan Fleming McHenry ity, including trafficking in illegal drugs and The Clerk continued to read. Terry Flores McIntyre prostitution. Mr. CAMP (during the reading). Mr. Thompson (PA) Forbes McKeon ‘‘(ii) PORNOGRAPHY.—Any property with re- Thornberry Speaker, I ask unanimous consent to Fortenberry McKinley spect to which records are required to be suspend the reading. Foxx McMorris Tiberi Tipton maintained under section 2257 of title 18, The SPEAKER pro tempore. Is there Franks (AZ) Rodgers United States Code. Frelinghuysen Meehan Turner (NY) objection to the request of the gen- ‘‘(iii) DISCRIMINATORY GOLF COURSES AND Gallegly Mica Turner (OH) tleman from Michigan? CLUBS.—Golf courses or clubs that Gardner Miller (FL) Upton Mr. CROWLEY. I object. Walberg discriminatorily restrict membership on the Garrett Miller (MI) The SPEAKER pro tempore. Objec- Gerlach Miller, Gary Walden basis of sex or race. Gibbs Mulvaney Webster ‘‘(iv) LOBBYING.—Activities described in tion is heard. Gibson Murphy (PA) West section 162(e)(1). The Clerk will continue to read. Westmoreland Gingrey (GA) Myrick ‘‘(v) BUSINESS ACTIVITIES OF PERSONS IN The Clerk continued to read. Gohmert Neugebauer Whitfield VIOLATION OF THE IRAN SANCTIONS ACT OF The SPEAKER pro tempore. Pursu- Goodlatte Noem Wilson (SC) ant to the rule, the gentleman from Gowdy Nugent Wittman 1996.—Any activity of any person (including Granger Nunnelee Wolf any successor, assign, affiliate, member, or Florida is recognized for 5 minutes in Graves (GA) Olson Womack joint venturer with an ownership interest in support of his motion. Graves (MO) Palazzo Woodall any property or project any portion of which Mr. DEUTCH. Mr. Speaker, this de- Griffin (AR) Paulsen Yoder is owned by such person) that is in violation bate has revealed deep differences be- Griffith (VA) Pearce Young (AK) of the Iran Sanctions Act of 1996 (50 U.S.C. Grimm Pence Young (IN) tween the majority and minority when 1701 note) or the Comprehensive Iran Sanc- it comes to how to grow our economy. NOT VOTING—20 tions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8501 et seq.). We object to how Leader CANTOR’s bill Bass (NH) Guinta Schrader borrows $47 billion from China for tax Bishop (UT) Manzullo Slaughter ‘‘(D) DISCLOSURE BY MEMBERS OF CON- Braley (IA) Marino Thompson (MS) GRESS.—No amount shall be taken into ac- cuts designed to benefit millionaires. Burton (IN) Napolitano Walsh (IL) count as domestic business gross receipts by That’s why the CBO ranked this pro- Filner Nunes Waters any Member of Congress unless the amount posal second to dead last in a long list Flake Paul Young (FL) of the deduction allowed under this section Gosar Rangel of things we could do to create jobs. and a description of the business activities Now, Americans have learned by now b 1317 giving rise to such deduction are publicly that there is no such thing as a tem- disclosed (in such manner and form as the Mrs. ROBY and Messrs. MCCARTHY porary Republican tax cut for the Secretary may prescribe) not later than the wealthy. They’re all permanent. Let’s of California and REICHERT changed date on which the return of tax is filed.’’. acknowledge the real price tag here, a their vote from ‘‘yea’’ to ‘‘nay.’’ Add at the end of the bill the following: Messrs. CARSON of Indiana, COURT- half a trillion dollars in deficit spend- NEY, and CAPUANO changed their SEC. 3. DENIAL OF DEDUCTION FOR MOVING ing over the next decade—not for edu- UNITED STATES JOBS OVERSEAS. vote from ‘‘nay’’ to ‘‘yea.’’ (a) IN GENERAL.—Subsection (e) of section cation, not for infrastructure, another So the amendment was rejected. 200 of the Internal Revenue Code of 1986, as $500 billion in windfall for the wealthy. The result of the vote was announced added by section 2 of this Act, is amended by As I said before, our disagreements as above recorded. adding at the end the following new para- run deep. The fact that we are out- Stated for: graph: numbered means that this misguided

VerDate Mar 15 2010 02:17 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00030 Fmt 4634 Sfmt 0634 E:\CR\FM\A19AP7.016 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE April 19, 2012 CONGRESSIONAL RECORD — HOUSE H2009 legislation will likely pass. Given that pornographers. And let’s make sure Holt McGovern Sa´ nchez, Linda reality, we should at least be able to that this bill does not reward compa- Honda McIntyre T. Hoyer McNerney Sanchez, Loretta come together and agree on which busi- nies that ship jobs overseas. It is the Israel Meeks Sarbanes nesses should be excluded from this right thing to do. It’s up to us to make Jackson (IL) Michaud Schakowsky new windfall. That’s what my amend- these changes. We can make them Jackson Lee Miller (NC) Schiff ment aims to do. right here and right now. (TX) Miller, George Schrader Johnson (GA) Moore Schwartz My changes are relatively small. In I ask all of my colleagues to protect Johnson, E. B. Moran Scott (VA) fact, Leader CANTOR’s legislation re- the American taxpayers and support Jones Murphy (CT) Scott, David mains largely the same. For example, these final protections to the bill. Kaptur Nadler Serrano Keating Shuler pass my amendment, and H.R. 9 will I yield back the balance of my time. Neal Kildee Olver Sires Kind still uphold the GOP plan to take $46 Owens Smith (WA) Kissell Speier billion from China and give half of it to Pallone b 1330 Kucinich Stark Pascrell millionaires. H.R. 9 will still count oil Langevin Sutton Mr. CAMP. Mr. Speaker, I seek time Pastor (AZ) speculators, professional sports teams, Larsen (WA) Thompson (CA) Pelosi in opposition to the motion. Larson (CT) Tierney and corporate lobbyists as small busi- Perlmutter nesses. H.R. 9 will still pick and choose The SPEAKER pro tempore. The gen- Lee (CA) Tonko tleman from Michigan is recognized for Levin Peters Towns winners and losers by arbitrarily add- Pingree (ME) 5 minutes. Lewis (GA) Tsongas ing new loopholes to our already over- Lipinski Polis Van Hollen complicated Tax Code. And, of course, Mr. CAMP. I would just say to my Loebsack Price (NC) Vela´ zquez friend that I’m not going to stand up Lofgren, Zoe Quigley Visclosky Leader CANTOR’s massive tax cut will and say that this is a procedural ploy. Lowey Rahall Walz (MN) remain available to businesses even if Luja´ n Reyes Wasserman they create no jobs at all. But I will stand up and say it is a polit- Lynch Richardson Schultz So let me be crystal clear about what ical ploy. Maloney Richmond Waters Ross (AR) my bill changes. It better safeguards We should not be picking winners and Markey Watt losers. The fact is small businesses are Matheson Rothman (NJ) Waxman our taxpayer dollars. Matsui Roybal-Allard Welch First, my amendment will stop busi- hurting because of the failed policies of McCarthy (NY) Ruppersberger Wilson (FL) nesses engaging in illegal activity, the Obama administration. It’s time to McCollum Rush Woolsey McDermott Ryan (OH) Yarmuth from drug trafficking to prostitution, stand up for small business and the from receiving this deduction. This is a people they employ. NOES—229 Let’s get America back to work. I no-brainer, and I have no idea why it’s Adams Fitzpatrick LoBiondo not in the bill already. We should all urge defeat of this motion to recommit Aderholt Fleischmann Long agree, given the recent news from and support for H.R. 9, the Small Busi- Akin Fleming Lucas South America, that there is no such ness Tax Cut Act. Alexander Flores Luetkemeyer I yield back the balance of my time. Amash Forbes Lummis thing as being too careful with Amer- Amodei Fortenberry Lungren, Daniel ican tax dollars. The SPEAKER pro tempore. Without Austria Foxx E. Second, this amendment ensures that objection, the previous question is or- Bachmann Franks (AZ) Mack dered on the motion to recommit. Bachus Frelinghuysen Marchant no company that outsources American Barletta Gallegly McCarthy (CA) jobs will qualify for this windfall. Cer- There was no objection. Barrow Gardner McCaul tainly our constituents don’t want us The SPEAKER pro tempore. The Bartlett Garrett McClintock borrowing money from China to give to question is on the motion to recommit. Barton (TX) Gerlach McCotter The question was taken; and the Benishek Gibbs McHenry companies that outsource jobs to Berg Gibson McKeon China. Certainly we can all agree that Speaker pro tempore announced that Biggert Gingrey (GA) McKinley cutting taxes for businesses that are the noes appeared to have it. Bilbray Gohmert McMorris Bilirakis Goodlatte Rodgers RECORDED VOTE American in name only, that choose Black Gowdy Meehan foreign workers over American work- Mr. DEUTCH. Mr. Speaker, I demand Blackburn Granger Mica ers, do not deserve another giveaway. a recorded vote. Bonner Graves (GA) Miller (FL) Third, my amendment prevents com- A recorded vote was ordered. Bono Mack Graves (MO) Miller (MI) Boustany Griffin (AR) Miller, Gary panies that do business with Iran from The SPEAKER pro tempore. Pursu- Brady (TX) Griffith (VA) Mulvaney being eligible for this tax cut. As Iran ant to clause 9 of rule XX, the Chair Brooks Grimm Murphy (PA) pursues an illicit nuclear weapons pro- will reduce to 5 minutes the minimum Broun (GA) Guthrie Myrick gram, we should not reward businesses Buchanan Hall Neugebauer time for any electronic vote on pas- Bucshon Hanna Noem that threaten the security of the sage. Buerkle Harper Nugent United States and our treasured ally The vote was taken by electronic de- Burgess Harris Nunnelee Israel. vice, and there were—ayes 179, noes 229, Calvert Hartzler Olson Camp Hastings (WA) Palazzo Mr. Speaker, my amendment also not voting 23, as follows: Campbell Hayworth Paulsen stops this bill from cutting taxes for [Roll No. 176] Canseco Heck Pearce Cantor Hensarling Pence pornographic empires that somehow AYES—179 qualify as small businesses under this Capito Herger Peterson Ackerman Chu Donnelly (IN) Carter Herrera Beutler Petri bill. It also requires Members of Con- Altmire Cicilline Doyle Cassidy Huelskamp Pitts gress who are owners of small busi- Andrews Clarke (MI) Edwards Chabot Huizenga (MI) Platts nesses to disclose any benefits that Baca Clarke (NY) Ellison Chaffetz Hultgren Poe (TX) Baldwin Clay Engel Coble Hunter Pompeo they get under this bill. It excludes Bass (CA) Cleaver Eshoo Coffman (CO) Hurt Posey golf courses that discriminate based on Becerra Cohen Farr Cole Issa Price (GA) race and gender. Finally, my amend- Berkley Connolly (VA) Fattah Conaway Jenkins Quayle ment bans lobbyists from cashing in on Berman Conyers Frank (MA) Cravaack Johnson (IL) Reed Bishop (GA) Cooper Fudge Crawford Johnson (OH) Rehberg this deduction. Bishop (NY) Costa Garamendi Crenshaw Johnson, Sam Reichert Now, look, I know as soon as I sit Blumenauer Costello Gonzalez Culberson Jordan Renacci down a colleague from the other side of Bonamici Courtney Green, Al Davis (KY) Kelly Ribble the aisle will come forward and claim Boren Critz Grijalva Denham King (IA) Rigell Boswell Crowley Gutierrez Dent King (NY) Rivera that I’m pursuing some procedural ploy Brady (PA) Cuellar Hahn DesJarlais Kingston Roby and attempting to kill the bill. That’s Brown (FL) Cummings Hanabusa Diaz-Balart Kinzinger (IL) Roe (TN) simply not true. Adopt these changes Butterfield Davis (CA) Hastings (FL) Dold Kline Rogers (AL) Capps Davis (IL) Heinrich Dreier Labrador Rogers (KY) so we can vote on the final bill right Capuano DeFazio Higgins Duffy Lamborn Rogers (MI) here and right now. Cardoza DeGette Himes Duncan (SC) Lance Rohrabacher Join me and prevent Americans’ Carnahan DeLauro Hinchey Duncan (TN) Lankford Rokita hard-earned tax dollars from sub- Carney Deutch Hinojosa Ellmers Latham Rooney Carson (IN) Dicks Hirono Emerson LaTourette Ros-Lehtinen sidizing Iranian nucs, cutting costs for Castor (FL) Dingell Hochul Farenthold Latta Roskam criminals, and padding the pockets of Chandler Doggett Holden Fincher Lewis (CA) Ross (FL)

VerDate Mar 15 2010 02:17 Apr 20, 2012 Jkt 019060 PO 00000 Frm 00031 Fmt 4634 Sfmt 0634 E:\CR\FM\K19AP7.061 H19APPT1 smartinez on DSK7TPTVN1PROD with HOUSE H2010 CONGRESSIONAL RECORD — HOUSE April 19, 2012 Royce Smith (NE) Upton Flores Lankford Rogers (AL) Pastor (AZ) Sa´ nchez, Linda Thompson (CA) Runyan Smith (NJ) Walberg Forbes Latham Rogers (KY) Pelosi T. Tierney Ryan (WI) Smith (TX) Walden Foxx Latta Rogers (MI) Peters Sanchez, Loretta Tonko Scalise Southerland Webster Franks (AZ) Lewis (CA) Rohrabacher Peterson Sarbanes Towns Schilling Stearns West Frelinghuysen LoBiondo Rokita Pingree (ME) Schakowsky Tsongas Schmidt Stivers Westmoreland Gallegly Loebsack Rooney Polis Schiff Van Hollen ´ Schock Stutzman Whitfield Garamendi Long Ros-Lehtinen Price (NC) Schrader Velazquez Schweikert Sullivan Wilson (SC) Gardner Lucas Roskam Quigley Schwartz Visclosky Scott (SC) Terry Wittman Scott (VA) Wasserman Garrett Luetkemeyer Ross (AR) Rahall Scott, Austin Thompson (PA) Wolf Gerlach Lungren, Daniel Ross (FL) Scott, David Schultz Reyes Sensenbrenner Thornberry Womack Gibbs E. Royce Serrano Waters Ribble Sessions Tiberi Woodall Gibson Mack Runyan Sewell Watt Richardson Shimkus Tipton Yoder Gingrey (GA) Marchant Ruppersberger Sherman Waxman Shuster Turner (NY) Young (AK) Gohmert Matheson Ryan (WI) Richmond Shuler Welch Simpson Turner (OH) Young (IN) Goodlatte McCarthy (CA) Scalise Rothman (NJ) Sires Wilson (FL) Gowdy McCaul Schilling Roybal-Allard Smith (WA) Woodall NOT VOTING—23 Granger McCotter Schmidt Rush Speier Woolsey Bass (NH) Green, Gene Rangel Graves (GA) McHenry Schock Ryan (OH) Stark Yarmuth Graves (MO) McIntyre Schweikert Bishop (UT) Guinta Sewell ANSWERED ‘‘PRESENT’’—1 Braley (IA) Landry Sherman Griffin (AR) McKeon Scott (SC) Burton (IN) Manzullo Slaughter Griffith (VA) McKinley Scott, Austin Wolf Clyburn Marino Grimm McMorris Sensenbrenner Thompson (MS) NOT VOTING—22 Filner Napolitano Walsh (IL) Guthrie Rodgers Sessions Flake Nunes Young (FL) Hall Meehan Shimkus Bass (NH) Green, Gene Perlmutter Gosar Paul Hanna Mica Shuster Bishop (UT) Guinta Rangel Harper Miller (FL) Simpson Braley (IA) Landry Slaughter Harris Miller (MI) Smith (NE) Burton (IN) Manzullo Thompson (MS) b 1345 Hartzler Miller, Gary Smith (NJ) Clyburn Marino Walsh (IL) Hastings (WA) Murphy (PA) Smith (TX) Mrs. EMERSON changed her vote Filner Napolitano Young (FL) Hayworth Myrick Southerland Flake Nunes from ‘‘aye’’ to ‘‘no.’’ Heck Neugebauer Stearns Gosar Paul So the motion to recommit was re- Hensarling Noem Stivers ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE jected. Herger Nugent Stutzman Herrera Beutler Nunnelee Sullivan The result of the vote was announced The SPEAKER pro tempore (during Hochul Olson Sutton the vote). There are 2 minutes remain- as above recorded. Huelskamp Owens Terry Stated for: Huizenga (MI) Palazzo Thompson (PA) ing. Hultgren Paulsen Thornberry Mrs. NAPOLITANO. Mr. Speaker, on Thurs- Hunter Pearce Tiberi b 1355 day, April 19, 2012, I was absent during roll- Hurt Pence Tipton So the bill was passed. call vote No. 176 due a family medical emer- Issa Petri Turner (NY) Jenkins Pitts Turner (OH) The result of the vote was announced gency. Had I been present, I would have Johnson (IL) Platts Upton as above recorded. voted ‘‘aye’’ on the Motion to Recommit to Johnson (OH) Poe (TX) Walberg A motion to reconsider was laid on H.R. 9, Small Business Tax Cut Act. Johnson, Sam Pompeo Walden the table. Mr. GENE GREEN of Texas. Mr. Speaker, Jones Posey Walz (MN) Jordan Price (GA) Webster Stated against: on rollcall No. 176, the Democratic Motion to Kelly Quayle West Mr. GENE GREEN of Texas. Mr. Speaker, Recommit H.R. 9, had I been present, I would King (IA) Reed Westmoreland on rollcall No. 177, final passage of H.R. 9, have voted ‘‘aye.’’ King (NY) Rehberg Whitfield Kingston Reichert Wilson (SC) had I been present, I would have voted ‘‘nay.’’ Mr. FILNER. Mr. Speaker, on rollcall 176, I Kinzinger (IL) Renacci Wittman Mrs. NAPOLITANO. Mr. Speaker, on Thurs- was away from the Capitol due to prior com- Kissell Rigell Womack day, April 19, 2012, I was absent during roll- mitments to my constituents. Had I been Kline Rivera Yoder call vote No. 177 due to a family medical present, I would have voted ‘‘aye.’’ Lamborn Roby Young (AK) Lance Roe (TN) Young (IN) emergency. Had I been present, I would have The SPEAKER pro tempore. The voted ‘‘nay’’ on final passage of H.R. 9, Small question is on the passage of the bill. NAYS—173 Business Tax Cut Act. The question was taken; and the Ackerman Davis (IL) Kaptur Mr. FILNER. Mr. Speaker, on rollcall 177, I Speaker pro tempore announced that Altmire DeFazio Keating was away from the Capitol due to prior com- the noes appeared to have it. Amash DeGette Kildee mitments to my constituents. Had I been Mr. LEVIN. Mr. Speaker, on that I Andrews DeLauro Kind Baca Deutch Kucinich present, I would have voted ‘‘nay.’’ demand the yeas and nays. Baldwin Dicks Labrador PERSONAL EXPLANATION The yeas and nays were ordered. Bass (CA) Dingell Langevin Becerra Doggett Larsen (WA) Mr. MANZULLO. Mr. Speaker, I missed The SPEAKER pro tempore. This is a votes today to attend to official government 5-minute vote. Berkley Doyle Larson (CT) Berman Edwards LaTourette business in Illinois. If I had been here, I would The vote was taken by electronic de- Bishop (GA) Ellison Lee (CA) have voted ‘‘yea’’ on rollcall No. 172; ‘‘yea’’ on Blumenauer Engel Levin vice, and there were—yeas 235, nays rollcall No. 173; ‘‘yea’’ on rollcall No. 174; ‘‘no’’ 173, answered ‘‘present’’ 1, not voting Bonamici Eshoo Lewis (GA) Brady (PA) Farr Lipinski on rollcall No. 175; ‘‘no’’ on rollcall No. 176; 22, as follows: Broun (GA) Fattah Lofgren, Zoe and ‘‘yea’’ on rollcall No. 177. [Roll No. 177] Brown (FL) Fortenberry Lowey Butterfield Frank (MA) Luja´ n f YEAS—235 Capps Fudge Lummis REMOVAL OF NAME OF MEMBER Adams Boswell Cravaack Capuano Gonzalez Lynch Aderholt Boustany Crawford Cardoza Green, Al Maloney AS COSPONSOR OF H.R. 2341 Akin Brady (TX) Crenshaw Carnahan Grijalva Markey Mr. LANGEVIN. Mr. Speaker, I ask Alexander Brooks Cuellar Carney Gutierrez Matsui Amodei Buchanan Culberson Carson (IN) Hahn McCarthy (NY) unanimous consent to withdraw my Austria Bucshon Davis (KY) Castor (FL) Hanabusa McClintock name as a cosponsor of H.R. 2341. Bachmann Buerkle Denham Chu Hastings (FL) McCollum The SPEAKER pro tempore. Is there Bachus Burgess Dent Cicilline Heinrich McDermott Barletta Calvert DesJarlais Clarke (MI) Higgins McGovern objection to the request of the gen- Barrow Camp Diaz-Balart Clarke (NY) Himes McNerney tleman from Rhode Island? Bartlett Campbell Dold Clay Hinchey Meeks There was no objection. Barton (TX) Canseco Donnelly (IN) Cleaver Hinojosa Michaud Benishek Cantor Dreier Cohen Hirono Miller (NC) f Berg Capito Duffy Connolly (VA) Holden Miller, George b 1400 Biggert Carter Duncan (SC) Conyers Holt Moore Bilbray Cassidy Duncan (TN) Cooper Honda Moran LEGISLATIVE PROGRAM Bilirakis Chabot Ellmers Costa Hoyer Mulvaney Bishop (NY) Chaffetz Emerson Costello Israel Murphy (CT) (Mr. HOYER asked and was given Black Chandler Farenthold Courtney Jackson (IL) Nadler permission to address the House for 1 Blackburn Coble Fincher Critz Jackson Lee Neal minute.) Bonner Coffman (CO) Fitzpatrick Crowley (TX) Olver Bono Mack Cole Fleischmann Cummings Johnson (GA) Pallone Mr. HOYER. Mr. Speaker, I yield to Boren Conaway Fleming Davis (CA) Johnson, E. B. Pascrell the majority leader, the gentleman

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