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Mr. President, with our vote today on the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, we have passed legislation that will have profound short- and long-term consequences for our nation. I supported this measure once it became the only available option to provide much-needed help to American families. I, however, have deep concerns with other aspects of this bill, and I extend my support for it with strong reservations.
Our economy has not yet recovered from the downturn that began over two years ago. Hawaii's foreclosure rate in October of this year was the twelfth highest in the nation. In November, Hawaii saw a 49 percent increase in consumer bankruptcy filings compared to the same month in 2009, the second largest increase in the country. These are strong indications that people in Hawaii cannot sustain an increase in their tax obligations. We cannot allow taxes to rise on the working-class when so many homeowners are already unable to afford their mortgages and consumers are unable to meet their outstanding debt obligations.
Mr. President, one major cause of these problems is unemployment, and I would not have been able to support this legislation had it not included a thirteen-month extension of unemployment benefits. Families and individuals across Hawaii and the nation need these benefits to help pay their rents and mortgages while they search for a job, and parents need this assistance to put food on the table and provide for their children. I refuse to abandon these people. That is why I supported this bill.
Mr. President, I regret that we were unable to provide permanent tax relief for working-class Americans, families, and small businesses because their financial well-being has been haplessly tied to tax cuts for millionaires and billionaires since the beginning of this tax debate. Earlier this month, we considered two fair and reasonable tax proposals - one to permanently extend the expiring tax cuts for families earning under $250,000, followed by a compromise that included Americans earning up to one million dollars a year. These were good-faith efforts to provide help where it is most needed - to families and small businesses that, unlike the millionaires and billionaires out there, do not have the financial security to weather the recession. Unfortunately, both were defeated by a minority of my colleagues and instead we have been forced to maintain fiscally-irresponsible Bush-era tax policies through the legislation that we have just passed.
When these tax cuts were enacted at the beginning of this decade, I called it "irresponsible fiscal policy." I correctly predicted that the upper-income tax breaks would lead to an explosion of the deficit and leave a mountain of debt for future generations. At the time, I lobbied for targeted tax cuts that would stimulate economic growth and employment while preserving fiscal discipline.
Mr. President, the national debt now stands above $13.8 trillion. Our budget surpluses have long since turned into deficits. Difficult budget choices are now before us. We will have the opportunity to reexamine these tax cuts for the richest Americans that we have just imprudently extended, as well as the temporary estate tax and payroll tax holiday provisions in the bill. Fiscal discipline must be maintained. I am prepared to make hard choices to restore and preserve our country's long-term economic security. Until then, I am pleased that we were able to help the unemployed and working-class through this extension of expiring tax provisions and unemployment benefits, and that is why I supported this bill.
Thank you, Mr. President.
Statement on tax legislation
Congressional Record Statement of Senator Daniel K. Akaka
Wed, December 15, 2010
Mr. President, with our vote today on the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, we have passed legislation that will have profound short- and long-term consequences for our nation. I supported this measure once it became the only available option to provide much-needed help to American families. I, however, have deep concerns with other aspects of this bill, and I extend my support for it with strong reservations.
Our economy has not yet recovered from the downturn that began over two years ago. Hawaii's foreclosure rate in October of this year was the twelfth highest in the nation. In November, Hawaii saw a 49 percent increase in consumer bankruptcy filings compared to the same month in 2009, the second largest increase in the country. These are strong indications that people in Hawaii cannot sustain an increase in their tax obligations. We cannot allow taxes to rise on the working-class when so many homeowners are already unable to afford their mortgages and consumers are unable to meet their outstanding debt obligations.
Mr. President, one major cause of these problems is unemployment, and I would not have been able to support this legislation had it not included a thirteen-month extension of unemployment benefits. Families and individuals across Hawaii and the nation need these benefits to help pay their rents and mortgages while they search for a job, and parents need this assistance to put food on the table and provide for their children. I refuse to abandon these people. That is why I supported this bill.
Mr. President, I regret that we were unable to provide permanent tax relief for working-class Americans, families, and small businesses because their financial well-being has been haplessly tied to tax cuts for millionaires and billionaires since the beginning of this tax debate. Earlier this month, we considered two fair and reasonable tax proposals - one to permanently extend the expiring tax cuts for families earning under $250,000, followed by a compromise that included Americans earning up to one million dollars a year. These were good-faith efforts to provide help where it is most needed - to families and small businesses that, unlike the millionaires and billionaires out there, do not have the financial security to weather the recession. Unfortunately, both were defeated by a minority of my colleagues and instead we have been forced to maintain fiscally-irresponsible Bush-era tax policies through the legislation that we have just passed.
When these tax cuts were enacted at the beginning of this decade, I called it "irresponsible fiscal policy." I correctly predicted that the upper-income tax breaks would lead to an explosion of the deficit and leave a mountain of debt for future generations. At the time, I lobbied for targeted tax cuts that would stimulate economic growth and employment while preserving fiscal discipline.
Mr. President, the national debt now stands above $13.8 trillion. Our budget surpluses have long since turned into deficits. Difficult budget choices are now before us. We will have the opportunity to reexamine these tax cuts for the richest Americans that we have just imprudently extended, as well as the temporary estate tax and payroll tax holiday provisions in the bill. Fiscal discipline must be maintained. I am prepared to make hard choices to restore and preserve our country's long-term economic security. Until then, I am pleased that we were able to help the unemployed and working-class through this extension of expiring tax provisions and unemployment benefits, and that is why I supported this bill.
Thank you, Mr. President.
