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Video archive of the US Congress

Senate Proceeding on Sep 22nd, 2010 :: 5:07:35 to 5:19:40
Total video length: 9 hours 49 minutes Stream Tools: Stream Overview | Edit Time

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Jon Kyl

5:07:33 to 5:07:53( Edit History Discussion )

Jon Kyl: disclosure, disclosure, disclosure. thank you, mr. president, and i yield the floor. a senator: mr. president? the presiding officer: the senator from arizona is recognized. mr. kyl: mr. president, we continue to have discussion about whether or not there should be a tax increase on americans, and if so, which ones. we're not sure whether the

Jon Kyl

5:07:35 to 5:19:40( Edit History Discussion )
Speech By: Jon Kyl

Jon Kyl

5:07:54 to 5:08:16( Edit History Discussion )

Jon Kyl: senate is going to vote on one of those propositions before the elections, but there appears still to be a chance that we would do that. i found it of interest that a couple of surveys, one of economists and one of americans generally, throw more cold water on the idea that we should be raising taxes on any americans.

Jon Kyl

5:08:17 to 5:08:39( Edit History Discussion )

Jon Kyl: i wanted to report, first of all, a cnbc poll which just came out today. the headline is "most americans want all bush tax cuts extended." well, that's the other way of saying that we shouldn't raise taxes on any americans. i'll just quote from two lines." in the new poll released this week, 55% said that increasing

Jon Kyl

5:08:40 to 5:09:00( Edit History Discussion )

Jon Kyl: taxes on any americans will slow the economy and kill jobs. only 40% said the bush era tax cuts should be canceled for higher earners." one other interesting statistic is that the policies show that 55% of americans said that president obama's overall economic plans have made things

Jon Kyl

5:09:01 to 5:09:22( Edit History Discussion )

Jon Kyl: worse so far. and this poll is consistent with every other that we have seen. most americans do not believe that we should be raising taxes on anyone, on the wealthy, on businesses, on others, on anyone. and i think most of them get the fact that if you start raising taxes, particularly in the middle of a recession, you're

Jon Kyl

5:09:23 to 5:09:45( Edit History Discussion )

Jon Kyl: going to kill economic recovery and certainly slow the creation of more jobs. well, that was also the opinion of a group of economists who were surveyed by cnn. they surveyed 31 different economists and had a variety of options. what should the senate and the house do, they asked?

Jon Kyl

5:09:46 to 5:10:08( Edit History Discussion )

Jon Kyl: and in this survey, 18% of the economists said we should not raise taxes on anyone. in other words, extended the tax rates that have been in effect for the last ten years for everyone, continue to extended extended -- to extend them. there were only three of the economists who said no, we should differentiate, extend for

Jon Kyl

5:10:09 to 5:10:31( Edit History Discussion )

Jon Kyl: some and not for others. it's okay to go ahead and raise taxes on the so-called wealthy. i noted also today that the national taxpayers union released a letter with 300 economists, saying the same thing, that we should not raise taxes on anyone. and finally, i noted in comments i made monday that secretary geithner had said that what we should be doing to preserve jobs

Jon Kyl

5:10:32 to 5:10:52( Edit History Discussion )

Jon Kyl: in america is to promote savings and investment, and that is, of course, precisely what we should be doing. unfortunately, that's exactly the opposite of what would happen if we raised the taxes on the so-called upper two brackets because that's how small businesses by and large pay their taxes. 50% of the

Jon Kyl

5:10:53 to 5:11:14( Edit History Discussion )

Jon Kyl: approximately $1 trillion of business income will be reported on returns that have a marginal rate that's another way of saying that if you increase the tax in those top two brackets, you're going to dramatically impact small businesses who create about 25% of the total work

Jon Kyl

5:11:15 to 5:11:36( Edit History Discussion )

Jon Kyl: force here in the united states, and in testimony before the congressional budget office, doug holseiken -- excuse me, before the finance committee on which i said, the former director of c.b.o., doug holseiken, testified that an increase in the top effective marginal income tax rate would increase the probability that a small business entrepreneur

Jon Kyl

5:11:37 to 5:11:57( Edit History Discussion )

Jon Kyl: would add to his or her payrolls by roughly 18%. i suggest that it may even be more than that. what i'd like to do here is just quote from comments from a few small business folks to the effect of the tax increase on them. if the tax increase were to be

Jon Kyl

5:11:58 to 5:12:18( Edit History Discussion )

Jon Kyl: voted by this body and the house of repre into law, or if the tax -- current tax rate is not extended for everyone, here's what a few small business folks say would happen to them. some of these examples come from the chamber of commerce, some from the national federation of independent business. for example, mark clinton of

Jon Kyl

5:12:19 to 5:12:39( Edit History Discussion )

Jon Kyl: decisive management in little rock, arkansas. last year, he says he paid about half of his business income back in taxes. he has a small business that meets this threshold that i mentioned before, and he said that any tax increase would effectively kill his business. i thought it was interesting, he gets frustrated, he said, when he hears the top tier tax cuts

Jon Kyl

5:12:40 to 5:13:00( Edit History Discussion )

Jon Kyl: referred to as tax cuts for the rich. he said, and i'm quoting him -- "these are employers who work hard to balance their budgets and make ends meet. they need money to sustain their businesses. do you want someone who is broke as your employer? no, you want someone who is able to pay their bills and pay your salary." here's another example of someone who says he would be

Jon Kyl

5:13:01 to 5:13:21( Edit History Discussion )

Jon Kyl: hurt if the -- if his taxes are raised, jim murphy from e.s.t. analytical in cincinnati, ohio." if taxes go up above the $250,000 threshold, the bottom line of his business will be that he will be forced to make serious business decisions to make up for the lost income. he just recently lifted a pay

Jon Kyl

5:13:22 to 5:13:44( Edit History Discussion )

Jon Kyl: freeze that has been in place for almost 18 months. his company suspended the 401-k contributions at the same time, and that likely will have to continue in the future. so instead of potentially hiring more people, he's definitely not going to make any new hires. the threat and uncertainty of health care costs going up next year he said is also a great concern.

Jon Kyl

5:13:45 to 5:14:06( Edit History Discussion )

Jon Kyl: so instead of purchasing needed for capital equipment and generating economic activity for other businesses, i will have to make do with what we have. just mention a couple more. ron hatch of hatch furniture in yankton, south dakota. he said his business, which is a furniture store, has struggled. he has seen his business fall by 25%. had to close one of his two stores.

Jon Kyl

5:14:07 to 5:14:28( Edit History Discussion )

Jon Kyl: his business is heavily dependent on capital. he says that any tax increase would inhibit his ability to compete and force him to lay off more workers. if the current tax rates are allowed to expire, he says he might well have to go out of business. steve farii with mr. rooter

Jon Kyl

5:14:29 to 5:14:49( Edit History Discussion )

Jon Kyl: plumbing in gladstone, oregon, says he has been lucky that his business has been able to survive so far, but that increasing his tax rates, the rate at which he pays, which is what we're talking about here, would directly impact his business. he would not be able to consider hiring a new employee or buying new equipment, should the tax hike take effect. there are several from the printing industry.

Jon Kyl

5:14:50 to 5:15:11( Edit History Discussion )

Jon Kyl: i'll just quote from one here. mike novice at j.k. creative printers in quincy, illinois. and he makes the point that the tax increase has hurt his clients which then, in turn, hits him. he talks about the fact that his clients are having to cut back their budgets and that this has had an impact on him. he said that increasing taxes

Jon Kyl

5:15:12 to 5:15:32( Edit History Discussion )

Jon Kyl: will be especially hard-hitting for his clients. as a result, he's going to continue to lose customers. and with that loss of customers combined with the tax increase hitting his own budget, he'll be hit from both sides and the looming tax increase and uncertainty with the forthcoming health care mandates has left him in a position where he's hesitant to take on risks and grow his business.

Jon Kyl

5:15:33 to 5:15:53( Edit History Discussion )

Jon Kyl: another example from the printing industry, frank goodknight, diversified graphics in salisbury, north carolina. real estate industry, a lot of examples there. kurt greene from kurt greene and company in texarkana, arkansas. let me just close with two examples that show other indirect effects. steve walker from walker

Jon Kyl

5:15:54 to 5:16:14( Edit History Discussion )

Jon Kyl: information in indianapolis, indiana, talks about one of the indirect consequences of his firm having to pay more in taxes, his small business. it's a family business. he said, we've always taken care to give back to our community in indianapolis and central indiana. but here's a direct quotation. he said, "if congress increases taxes, it will directly affect

Jon Kyl

5:16:15 to 5:16:36( Edit History Discussion )

Jon Kyl: the extent of our charitable work in addition to impacting our company's bottom line. i look at pre-tax dollars as a pie chart. right now uncle sam gets 35%. if uncle sam gets 39.6%, then 4.6% will come from other uses. for us, those uses are as follows: reinvest in business,

Jon Kyl

5:16:37 to 5:16:57( Edit History Discussion )

Jon Kyl: give to charity, and meet capital obligations. well, meeting capital obligations are fixed so the impact of tax increase will reduce the amount available for charity first and investment capital second." he said, i've already made some plans assuming some sort of tax increase is coming, and he talks about how that will drop his contributions to united way, for example.

Jon Kyl

5:16:58 to 5:17:18( Edit History Discussion )

Jon Kyl: he concludes by saying, "i think congress needs to have a much greater appreciation for the direct and indirect consequences a massive tax increase would have on businesses and the communities that re-- that we and our employees live and work in." and finally, noting a physician who has a business in chicago,

Jon Kyl

5:17:19 to 5:17:39( Edit History Discussion )

Jon Kyl: dr. herb sohn of strauss surgical group, and he makes another point not just about marginal income tax rates but capital gains and dividends as well. remember that these taxes would also be increased under the democrats' proposal. and he says that increases in dividends and capital gains taxes will prevent his patient care business from expanding and

Jon Kyl

5:17:40 to 5:18:00( Edit History Discussion )

Jon Kyl: provide quality care to more patients. he talks about having practiced medicine since the early 1970's in the chicago area. his focus is on his patients, but he says, unfortunately, the impending tax increases will impair our ability to focus on patients and their care. the increases in capital gains taxes and dividends tax rates

Jon Kyl

5:18:01 to 5:18:22( Edit History Discussion )

Jon Kyl: will impact our business, derailing our opportunities to expand our operations. and finally, he notes that as structured as a passthrough entity -- and that's how all of these small businesses pay their taxes, that's why they're impacted by an increase in the top two marginal income tax rates, he says, "if congress increases the marginal income tax rates, that means we will have less money to expand and

Jon Kyl

5:18:23 to 5:18:44( Edit History Discussion )

Jon Kyl: reinvest in our business, which, again, is focused on patient care." he concludes by saying, "i'm not a tax expert but die have a straightforward diagnosis on this issue. congress needs to keep all the tax rates at their current levels and not slap us with a bigger tax bill." my point, mr. president, is

Jon Kyl

5:18:45 to 5:19:06( Edit History Discussion )

Jon Kyl: this -- the american people by a wide margin believe that we should not increase taxes on anyone. economists by a wide margin agree we should not increase taxes on anyone. and the several examples of owners of small businesses who would be the first to be impacted by an increase in the

Jon Kyl

5:19:07 to 5:19:31( Edit History Discussion )

Jon Kyl: upper two marginal income tax brackets have made it very clear -- every one of them -- it will have a direct impact on their ability to hire people, to expand their businesses or to continue in business and an indirect impact on the customers they serve who then, in turn, would have less business for these small businesses. all in all, mr. president, it is

Jon Kyl

5:19:32 to 5:19:41( Edit History Discussion )

Jon Kyl: a bad idea to even think about increasing taxes on any americans, let alone small businesses. we should make it clear right now that these folks do not have anything to worry about, they're

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