COMMITTEE on WAYS and MEANS

Hardworking taxpayers deserve to know whether these tax policies are going to be there year in and year out on a permanent basis.  Temporary renewals cannot provide the certainty that American businesses need in order to make the best decisions about how to invest in cutting edge research, whether to buy that new piece of equipment, and most importantly, whether to hire that additional worker.  And, these temporary renewals mean uncertainty for families as well as they try to plan their family budgets.

Throughout the year, the Ways and Means Committee has produced legislation that carefully examined many of these temporary extenders and reformed and made permanent several of the most important ones.  The whole House, on a bipartisan basis, subsequently passed this legislation.  This included important policies such as a permanent and improved credit for research and development and permanently higher section 179 expensing levels for small businesses – policies that were also included in the President’s budget proposals.

Analysis by the non-partisan experts at the Joint Committee on Taxation confirmed that permanent extensions of these policies would result in companies spending more on R&D and making new investments, all of which would promote job creation and higher wages.  

Having passed a number of these policies through the House on a bipartisan basis, we proceeded with the rather old-fashioned approach of beginning bipartisan negotiations with the Senate.  Until last week, we were making significant progress in those negotiations as everyone involved worked in good faith to reach a successful conclusion.  We were close to reaching an agreement that would ensure many of the bills that passed the House on a bipartisan basis would be included. 

In addition, we were going beyond the list of traditional tax extenders and including additional policies designed specifically to assist low- and middle-income American families.  In particular, policies such as the American Opportunity Tax Credit, which helps low- and middle-income families afford college, which was also included in the President’s budget proposals.  Other policies included making permanent the deduction for state and local sales taxes and the tax rules for mass transit benefits. 

However, before those negotiations could conclude, the Administration took the unbelievable step of issuing a veto threat.  Yes – the President issued a veto threat over bipartisan, bicameral negotiations.

Now, I cannot tell you with certainty exactly what the Administration wants, because the Administration has not even bothered to reach out and tell us what the President’s priorities are.  Rather than trying to engage and work with Congress, the Administration is only communicating through press statements.

The President has often said he wants to work with Congress to find bipartisan solutions.  In fact, in his press conference after the election, the President said, “I’m eager to work with the new Congress to make the next two years as productive as possible.  I’m committed to making sure that I measure ideas not by whether they are from Democrats or Republicans, but whether they work for the American people.”

That statement is completely at odds the President’s actions last week.  And we all know that actions speak louder than words. 

As a result of the Administration’s actions, negotiations with the Senate have come to a standstill.  Inexplicably, the Administration and some Senate Democrats have taken the position that policies that promote savings, investment, charitable donations, and job creation are a “giveaway” to big corporations. 

Perhaps these Senators and the Administration should listen to the 1,032 charitable organizations that have written to every Member of Congress in support of the permanent tax incentives for charitable giving that would have been included in the agreement with the Senate.  I don’t think that policies that promote donations to food banks, homeless shelters and hospitals are giveaways to corporate America.

The Administration’s actions now force us to take a different and less effective approach.  With the end of the year and a new tax filing season rapidly approaching, we need to act.  The IRS has been clear that unless Congress acts quickly, it will be forced to delay the start of the tax filing season. 

American families are struggling to make ends meet as wages remain flat even as expenses rise.  These families cannot and should not face a delay in getting their tax refunds.

The legislation before you today will address the concerns raised by the IRS and ensure the tax filing season can open on time.  We should ensure that the President’s actions do not hurt hardworking taxpayers who are counting on that tax refund.  Therefore, I urge the House to pass this legislation and ensure that the tax filing season opens on time.