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Congressman Brad Sherman

Representing the 30th District of CALIFORNIA

CONGRESSMAN SHERMAN RAILS AGAINST REGRESSIVE REPUBLICAN TAX PROPOSALSIN SERIES OF "PRICELESS SPEECHES"

  

Jun 5, 2003
Press Release

[Washington, D.C.] “ Congressman Brad Sherman continues to lambast Republican proposals to provide tax cuts for wealthy Americans, proposals that will burden future generations with overwhelming deficits.  Below are a series of speeches he has delivered on the House Floor. The charts that accompany these speeches are available at the following links: https://www.house.gov/sherman/images/republicard.gif 

https://www.house.gov/sherman/images/deficit_express_card.gif

June 05, 2003

 

Mr. Speaker, I rise to oppose a rule that does not allow the House to consider providing working families with the child care credit. The current situation imposes the injury of denying these working families $400 that they need and then adds the insult of telling these families that they are not taxpayers, so they do not deserve any tax relief. Of course, looking at their paycheck stubs, they see the taxes they are paying.

Allowing corporations to avoid American taxes just by renting a hotel in the Bahamas, $8 billion; allowing millionaires to pay virtually nothing on their dividend income, $80 billion; eliminating the estate tax even on the largest estates, $138 billion; telling working families that they do not deserve relief and that they are not taxpayers, that is priceless.

There are some things campaign contributions just will not buy. For everything else, there is RepubliCard , accepted at the finest country clubs in the Bahamas. Members will want to get the Deficit Express card, now that the Republican Congress has increased the credit limit to $12 trillion. The Deficit Express card? Do not leave the House without it.

May 22, 2003

Dividend Exclusion Provision Wont Encourage Investment

Mr. Speaker, this job-killer bill will lead to a continuation of the Bush recession.

We are told we need to end the double taxation of corporate income earned by U.S. corporations, but one-third of corporate income earned by U.S. corporations is not even subject to corporate tax because of the loopholes in that tax. But, of course, their new provision applies to foreign corporations. Their income is not even taxed once.

We are told this is going to encourage investment in newly issued corporate stock. But the dividend exclusion provision is a temporary provision, so who is going to buy corporate stock, just to find the taxes go up on dividends? But if it does encourage investment, it will encourage investment of American capital in foreign corporations issuing stock. Those foreign corporations are paying 12 cents an hour to their employees and stealing American jobs.

We are told the low zero percent rate or 5 percent rate on dividend income will apply to working families. But working families, if they own stock at all, own it in their 401(k) plans, and those plans are unaffected by this bill. In fact, even if we pass this bill, when the dividend income is paid out of a 401(k), it will be subject to a high rate of tax. The big beneficiaries of the 5 percent rate or zero percent rate on dividends will be rich kids with trust funds earning $10,000 or $20,000 of dividend income and paying virtually no tax.

Republicard

The corporate tax rate once you move the corporation to the Bahamas, zero percent.

Individual income taxes on dividends from the Bahamas corporation, 15 percent.

Individual income tax when the stock is held by a trust for rich kids, zero percent.

Knowing that working families are paying about 30 percent tax, FICA and income tax, on their wages ” Priceless.

There are some things campaign contributions just cant buy. For everything else, there is RepubliCard. (Link to Republicard <https://www.house.gov/sherman/images/credit_cards.gif>) Accepted at the finest country clubs in the Bahamas.

And you will want to get the Deficit Express Card, now that the Senate has increased the credit limit by another $981 billion. The Deficit Express Card: Do not leave the House without it.

May 09, 2003

Mr. Speaker, this bill is a job killer. It ensures the continuation of the Bush recession.

Now, some will benefit from this. In fact, those who earn over $1 million a year will average more than $93,000. That is almost enough to be a Bush Pioneer, if you give $100,000 to the Bush campaign.

 

What has happened here in this debate is that the minor economic benefits of this proposal have been talked about extensively, but the offsetting and much larger economic detriments have not been discussed as extensively. Because my colleagues on the Democratic side are so incensed at how unfair this bill is, we have not had enough time to talk about what a job killer it is.

What does this bill do? Yes, it does put some wealthy individuals in a position where they can buy the new $350,000 Mercedes. It is an expensive car. It is a new car. It is the latest toy. And that is where a big chunk, along with similar consumption items, foreign consumption items, where a significant part of this tax bill's result is going.

It is true that some of it will be invested by the wealthy. Some of it will stimulate domestic demand. So there is some positives of the $550 billion. It is hard to find $550 billion that does not have some positives.

But what about the negative? 100 percent of the cost of this bill, and as the gentleman from South Carolina (Mr. Spratt) explained, that is over $1 trillion, gets sucked out of our capital markets. What does this mean? It means that the over 2.5 million Americans who have already lost their job in the Bush recession will not find new jobs, because when small businesses in my district go to borrow money, the banker will say no, money is not available. We lent it instead to the U.S. Treasury, who has an excellent record of paying it back.

How are small businesses supposed to get the capital they need to expand? They are not going to be able to get it from our capital markets, because $1 trillion is going to be sucked out to pay for this deficit.

It is not typical for me to come to this floor and criticize one of my California colleagues and how they run their office, but I say to the gentleman from California (Mr. Thomas), you must give your staff a raise, because they have come up with a more regressive tax proposal than the Bush administration. They have done more for the Pioneers.

 

Look at this. This is amazingly regressive, with virtually nothing going to half of Americans, and $93,000 going to the very wealthy. How do they achieve that? Let us look at the next chart. They come up with an interesting approach.

The tax provisions that help middle-class families cease to have any effect in 2007, whereas the provisions that are responsible for the millionaires getting $93,000 each each year continue for quite some time. In fact, this bill does not have a single provision that helps middle-class families that continues in effect past 2007.

So, let us summarize this bill:

Benefits in 2008 for future years that help middle-class families, zero.

Benefits to 50 percent of all Americans from the dividend provisions in this bill, 1 percent.

Benefits to the top 1 percent coming from the dividend provisions and capital gains provisions of this bill, over 50 percent.

Having a staff that can put together a bill that is more regressive than the White House was able to put together, priceless.

Yes, RepubliCard . Some things, campaign contributions just cannot buy. For everything else, there is RepubliCard . RepubliCard . The country club will accept nothing less.

Also, finally, do not forget to apply for the Deficit Express Card, now with a $12 trillion credit limit, because we will indeed have a $12 trillion national debt with the budget adopted by the majority party. Deficit Express Card, don't leave the House without it.

April 10, 2003

Mr. Speaker, this budget resolution is designed to enrich the rich at the expense of economic growth for all Americans. It means larger budget deficits, higher interest rates, larger trade deficits. It will take capital away from business investment while under investing in education and infrastructure.

Senate tax cut, $350 billion. House tax cut, $550 billion. Ultimate tax cut, $1.2 trillion. Knowing you can pass the entire cost to future generations, priceless.

Allowing corporations to escape American taxes just by renting a hotel room in the Bahamas, $4 billion. Cutting veterans benefits, $6 billion. Cutting education, law enforcement, et cetera, $168 billion. Setting up a $1.2 trillion tax cut while allowing Senators to pretend it is only $350 billion, priceless . Republicard, and get the new Deficit Express Card with the $12 billion credit limit.

March 20, 2003

Mr. Speaker, we are united in our prayers for the success and safety of our men and women in combat. The powers that be have brought to this floor a highly divisive budget resolution. This budget resolution is designed to enrich the rich at the expense of economic growth for all America. It means larger budget deficits, higher interest rates, larger trade deficits. It will take capital out of the private sector and away from business investments while under-investing in education and infrastructure.

But I rise to address another point, another flaw in this budget resolution and I will do so with an analogy to a credit card advertisement that we are all familiar with.

Allowing corporations to get our of paying American taxes just by renting a hotel room in the Bahamas, $4 billion; ending taxes on all dividends, $385 billion; ending the estate tax even on the largest estates, $662 billion; knowing Members can pass the entire cost of all of this to future generations, priceless. RepubliCard, it is everything the super rich want it to be.

Also available, the new Deficit Express Card soon with a $4.2 trillion credit limit. The Deficit Express Card, do not leave the House without it.

March 20, 2003

Mr. Chairman, both Republican budget resolutions, the leadership resolutions and the Toomey alternative, give us huge deficits, high interest rates, and increased trade deficits. They take capital out of the capital markets and make it unavailable for private business investment, thus resulting in slower economic growth.

Now, to sell anything that bad, one needs a commercial. This morning I brought such a commercial to the floor, but marketing experts tell us commercials require repetition. So here, once again, is a commercial on behalf of both Republican budget resolutions:

Allowing corporations to skip out on their American taxes just by renting a hotel room in the Bahamas: $4 billion. Ending taxes on dividends: $385 billion. Ending the estate tax, even for the largest estates: $662 billion. Knowing you can pass the entire cost to future generations: Priceless.

RepubliCard: It is everything the super-wealthy want it to be.

Also available, the Deficit Express Card, now with a $4.2 trillion credit limit. The Deficit Express Card: Dont leave the House without it.