Small Business Tax Cut Act

Floor Speech

By:  Ted Deutch
Date: April 19, 2012
Location: Washington, DC

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Mr. DEUTCH. Mr. Speaker, this debate has revealed deep differences between the majority and minority when it comes to how to grow our economy. We object to how Leader Cantor's bill borrows $47 billion from China for tax cuts designed to benefit millionaires. That's why the CBO ranked this proposal second to dead last in a long list of things we could do to create jobs.

Now, Americans have learned by now that there is no such thing as a temporary Republican tax cut for the wealthy. They're all permanent. Let's acknowledge the real price tag here, a half a trillion dollars in deficit spending over the next decade--not for education, not for infrastructure, another $500 billion in windfall for the wealthy.

As I said before, our disagreements run deep. The fact that we are outnumbered means that this misguided legislation will likely pass. Given that reality, we should at least be able to come together and agree on which businesses should be excluded from this new windfall. That's what my amendment aims to do.

My changes are relatively small. In fact, Leader Cantor's legislation remains largely the same. For example, pass my amendment, and H.R. 9 will still uphold the GOP plan to take $46 billion from China and give half of it to millionaires. H.R. 9 will still count oil speculators, professional sports teams, and corporate lobbyists as small businesses. H.R. 9 will still pick and choose winners and losers by arbitrarily adding new loopholes to our already overcomplicated Tax Code. And, of course, Leader Cantor's massive tax cut will remain available to businesses even if they create no jobs at all.

So let me be crystal clear about what my bill changes. It better safeguards our taxpayer dollars.

First, my amendment will stop businesses engaging in illegal activity, from drug trafficking to prostitution, from receiving this deduction. This is a no-brainer, and I have no idea why it's not in the bill already. We should all agree, given the recent news from South America, that there is no such thing as being too careful with American tax dollars.

Second, this amendment ensures that no company that outsources American jobs will qualify for this windfall. Certainly our constituents don't want us borrowing money from China to give to companies that outsource jobs to China. Certainly we can all agree that cutting taxes for businesses that are American in name only, that choose foreign workers over American workers, do not deserve another giveaway.

Third, my amendment prevents companies that do business with Iran from being eligible for this tax cut. As Iran pursues an illicit nuclear weapons program, we should not reward businesses that threaten the security of the United States and our treasured ally Israel.

Mr. Speaker, my amendment also stops this bill from cutting taxes for pornographic empires that somehow qualify as small businesses under this bill. It also requires Members of Congress who are owners of small businesses to disclose any benefits that they get under this bill. It excludes golf courses that discriminate based on race and gender. Finally, my amendment bans lobbyists from cashing in on this deduction.

Now, look, I know as soon as I sit down a colleague from the other side of the aisle will come forward and claim that I'm pursuing some procedural ploy and attempting to kill the bill. That's simply not true. Adopt these changes so we can vote on the final bill right here and right now.

Join me and prevent Americans' hard-earned tax dollars from subsidizing Iranian nucs, cutting costs for criminals, and padding the pockets of pornographers. And let's make sure that this bill does not reward companies that ship jobs overseas. It is the right thing to do. It's up to us to make these changes. We can make them right here and right now.

I ask all of my colleagues to protect the American taxpayers and support these final protections to the bill.

I yield back the balance of my time.

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