Hoyer: Congress Needs to Effect Fiscally Sound, Long-Term Tax Reform to Grow Our Economy

WASHINGTON, DC - House Democratic Whip Steny H. Hoyer (MD) spoke on the House Floor this afternoon in support of the tax extenders bill and to discuss the need for Congress to pass long-term, fiscally responsible tax reform. Below is a transcript of his remarks and a link to the video:

Click here for the video.

“Mr. Chairman, thank you for your courage. I'm not going to thank you for this bill, however. But I’m going to vote for this bill.

“Mr. Speaker, American families and businesses deserve certainty from their tax system. Confidence. Stability. I'm glad we're able to move forward on this legislation rather than pursue a plan to make certain tax preferences permanent while ballooning our debt.

“While I am supporting this tax extender package, Mr. Speaker, I do so with two very serious reservations.  First, it adds the cost of extending this preference to our deficit. It is good, however, that we did not make unpaid-for extensions on a permanent basis, as the Ranking Member has just discussed.  Second, this is a very short-term fix when Congress needs to work toward a long-term solution.

“I join the Ranking Member in congratulating Mr. Camp for bringing that forward – well, at least he put it on the table; it didn't come forward. We ought to make the Research and Experimentation Tax Credit permanent – but we need to pay for it. And while this legislation allows teachers to deduct their out-of-pocket expenses, it does not give them the certainty that they'll be able to do so in 2015 or beyond. To that extent, they're in the same position that everybody else covered by this bill will be [in].  Neither does this bill provide appropriate tax support for renewable energy, biofuels, and energy efficiency. Sadly, the failure to extend this for at least two years may result in the loss of up to 30,000 jobs. Nor, Mr. Speaker, does it provide long-term clarity on bonus depreciation or small business expensing, all of which would give greater confidence to the growth of jobs.

“This also speaks to a larger challenge that Congress has an opportunity to address in the new year.  Instead of this annual ritual of extending individual credits and deductions, we ought to engage in meaningful, comprehensive, and pro-growth tax reform that provides greater certainty across our economy to businesses and individuals alike.  We all know that doing so will not be easy.  It will involve difficult choices on both sides of this aisle.

“Again, Mr. Chairman, I want to congratulate you. You had the courage to put forward a bill earlier this year that made tough decisions in order to show a path to lower rates and a simpler code without adding to the deficit.  But that path wasn't the path taken by the Majority in this Congress, Mr. Speaker.  Instead the House voted on bill after bill after bill to cut taxes recklessly without any plan to stabilize the debt, invest in our future priorities, and create jobs in a meaningful way. 

“This package we will be voting on today is the least we can do.  It isn't what I hoped for; it isn't what I hoped I would stand in this well and urge my colleagues to support at the beginning of the 113th Congress. But it is better than many of the cynical alternatives that we have heard about. And I want to congratulate the Ranking Member and, frankly, the President of the United States for saying no to an irresponsible package.

“Mr. Speaker, while I support this measure, I do so believing that America deserves better, wants better, hopes to get better. That's what each and every one of us was sent here to deliver: responsible policy for our country. This is not that policy. It is however, as I said, better than the alternative in that it would at least give those in 2014 who have operated on the expectation of getting the credit the assurance that they'll get it.

“My hope, Mr. Speaker, is that, come next December, we won't be here again considering another tax extender bill to keep the economy from collapsing. It is my hope, Mr. Speaker, that the Republican Majority and the Democratic Minority can work together to effect responsible, fiscally sound tax reform, which will help grow our economy and give the business community and our people the confidence they need to have to grow our economy and to participate effectively in making America better.

“Mr. Speaker, again in closing, I want to congratulate Mr. Camp because I think he did bring forth a bill that could have engendered that responsible debate that we needed – a fiscally sound proposal making tough tradeoffs, but that we ought to have the courage to make. He had that courage. And I congratulate him for it. And I yield back the balance of my time.”