Statements on Introduced Bills and Joint Resolutions S397

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. ENSIGN (for himself and Mrs. HUTCHISON):

S. 397. A bill to amend the internal Revenue Code of 1986 to allow a deduction for the old-age, survivors, and disability insurance taxes paid by employees and self-employed individuals, and for other purposes; to the Committee on Finance.
Mr. ENSIGN. Mr. President, 194 years ago this week, a son was born to Nancy and Thomas Lincoln in Elizabethtown, Kentucky. That son, Abraham, would go on to become President of the United States at one of the most defining times in our Nation's history.

President Lincoln is still revered today for his leadership and vision of a country in which all citizens have the opportunity to succeed. In 1864, when the outcomes of the war and his re-election were in question, he asked soldiers from Ohio's 66th regiment to stop at the White House on their way home so he could express his appreciation. President Lincoln shared with them the following:

"I beg you to remember this . . . I happen temporarily to occupy this big White House. I am a living witness that any one of your children may look to come here as my father's child has. It is in order that each of you may have through this free government which we have enjoyed, an open field and a fair chance for your industry, enterprise and intelligence; that you may all have equal privileges in the race of life, with all its desirable human aspirations. It is for this the struggle would be maintained, that we may not lose our birthright . . . The nation is worth fighting for, to secure such an inestimable jewel."

That jewel—the American dream that should be within reach of all who grasp for it—has been the hope of generations in this nation. This Nation that elected Abraham Lincoln—born in a one-room log cabin and once a farmhand . . . This Nation that harvests in its children a yearning to soar beyond the earth's atmosphere . . . This Nation that preaches that education, hard work, and family bring success.

Unfortunately, making a living, raising a family, and educating ourselves and our children is becoming more and more difficult in America. And it's the leaders of this nation that have made the obstacles to success higher to get over and wider to get around.

Here in Washington, we've built a wall of obstacles with one tax burden after another. Our Founding Fathers outlined exactly the powers they wanted Congress to have in Article I, Section 8 of the Constitution. Just because the first thing listed is the power to lay and collect taxes, doesn't mean it's the power we need to exercise the most.

Not only should we take the responsibility of stopping the building of this wall of tax burdens, we need to step up and start removing these burdens. We need to alleviate the tremendous stress that comes with having to work to pay so much of what we earn to the government.

Last year, the average taxpayer in my home State of Nevada did not finish paying taxes until April 27, which was also the average across the United States. Everything earned for the first 117 days of the year went to a government entity. In comparison, the average American spends only 106 days paying for food, clothing, and shelter combined.

That doesn't leave enough days to pay for a family vacation or to save for education or to pay medical bills or to save for retirement or to take a class to improve skills or to do whatever you want with your money—after all, it is your money.

In itself, our tax system is unfair because American families have to work harder to make more money only to pay greater taxes, and workers bear the burden of a government that continues to find ways to tax them into working even harder.
Whatever our individual thoughts are on tax relief, we must agree that, although being taxed has become a challenging part of life, the idea of being double taxed is truly the government stealing from working Americans. Double taxation is immoral.
Think about it in terms of a parent teaching a child. I am a parent of three young children. Just as I would explain to my children that it is not all right to take a piece of candy that they have not paid for, I would also tell them it is absolutely not okay to charge someone for something they aren't getting. But that is exactly what our government is doing with the Social Security tax.

Time magazine recently called it "The Really Unfair Tax." I call it the Social Security double dip. The take-home pay of 100 million Americans is fodder for this gutsy government scam. In very simple terms, this means that when a family pays income tax, the portion that is withheld for Social Security—money that they never see—is calculated into their personal income. The first dip is the tax that workers pay on wage income. The second dip is the icing on the cake for the government—taxing money that they are already taking anyway. Working Americans are forced to pay income tax on their Social Security tax. It is textbook double taxation, and if a business concocted such a scheme it would be shut down. How can we continue this policy if we would teach our children that it is wrong? This is only one reason why the tax is unfair.

Another example of the outrageousness of this tax is that while working families are double taxed, American businesses are not. You see, half the Social Security tax is paid by workers, but employers pay the other half. Businesses and corporations get to deduct what they pay in Social Security taxes—a savings that working families are not afforded. This tax discrimination is unacceptable.

We must eliminate this absolutely wrong tax policy that mocks our Constitution's goal to "promote the general Welfare." I propose an above-the-line deduction for Social Security taxes so that an individual's Social Security taxes are not included in the calculation of income for income tax purposes. It's the right thing to do if we want to lead this Nation by example.
Providing a Social Security tax deduction makes sense and will make a real difference to working families. About 100 million individuals and families would feel the savings—to the tune of around $2,000 each. Such savings translate into real growth and opportunity. Scholars predict that the Payroll Tax Deduction Act would mean 900,000 new jobs in this country, and it also means a Nation of workers who get to keep more of their hard-earned money.

When government takes money away from working families, it stifles growth and builds obstacles to success. Let's take this chance to provide relief to America's families, open the doors to opportunity, and let future generations know that the American dream—the jewel that inspired Abraham Lincoln—is well within the reach of all who truly desire it.

I ask unanimous consent that the text of the bill be printed in the RECORD.