Senate Proceeding on Nov 5th, 2009 :: 1:22:45 to 1:33:50
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1:22:42 to 1:23:02( Edit History Discussion )

Chuck Grassley: taxe time is up. i just want to encourage us as we move forward in the debate on this proposal to recognize that the tax provisions contained in it it are squarely going to hit those in the middle class. the presiding officer: senator from iowa.

1:22:45 to 1:33:50( Edit History Discussion )
Speech By: Chuck Grassley

1:23:03 to 1:23:24( Edit History Discussion )

Chuck Grassley: mr. grassley: i'm sorry that the acng the to listen to me twice on this same subject. mr. president, members o the senate, when i'm referring to a bill, i'm referring to the 2,000-page house bill. small business is very vital to

1:23:25 to 1:23:45( Edit History Discussion )

Chuck Grassley: the health of our economy. the president and i agree 70% of new private sector jobs are created by small business. they're the small business is the employment chain machine of the american economy.

1:23:46 to 1:24:06( Edit History Discussion )

Chuck Grassley: however, where the presi i differ, is that i believe that small business taxes should be lowered, not raised, to get our economy back on track. and you'll see in my discussion this 2,000-page bill raises these taxes on small business. the president and my c on the other side of the aisle,

1:24:07 to 1:24:28( Edit History Discussion )

Chuck Grassley: have proposed increasing the top marginal tax rates from 39.6%, respectfully, and you can see that on the chart here under the proposed obama budget. 39.6% is where they would raise them.

1:24:29 to 1:24:49( Edit History Discussion )

Chuck Grassley: they have also proposed increasing the tax rates on capital gains and dividends to 20% and providing for an estate tax rate as high as 45% and an exemption of that estate of $3.5 million. also the president and

1:24:50 to 1:25:11( Edit History Discussion )

Chuck Grassley: congressional democrats have called for fully reinstating the personal exemption phaseout and personal exemption phaseout, p.e.p., i'm going to refer to as p.e.p. and they would do that for those make more than $200,000 a year.

1:25:12 to 1:25:35( Edit History Discussion )

Chuck Grassley: in addition, they have called for fully reinstating the limitation on itemized deductions, which is known as p.e.a.s.e. -- pease, after a former congressman from ohio, for those also making ove over $200,000.

1:25:36 to 1:25:58( Edit History Discussion )

Chuck Grassley: so under the 2001 tax law, p.e.p. and pease are scheduled to be completely phased out in 2010. that means the tax rate for current go up, as you can see on the chart here, to 41%. for the vast majority of people

1:25:59 to 1:26:19( Edit History Discussion )

Chuck Grassley: who earn less than $200,000, raising taxes on a high earner might not sow sound so bad. however, this means so many small businesses will be hit with a higher tax bill. and from the standpoint from

1:26:20 to 1:26:40( Edit History Discussion )

Chuck Grassley: where they create 70% of the new jobs, that is bad not just for those taxpayers, that's bad for the entire economy. as if this wasn't bad enough for small business, the tax increases i've already talked about, the house democrats in this

1:26:41 to 1:27:03( Edit History Discussion )

Chuck Grassley: care reform bill,ave propose add new surtax of $5.04%. with this of four in the top bracket will pay a marginal tax rate of 46.4% by the year 2011.

1:27:04 to 1:27:27( Edit History Discussion )

Chuck Grassley: so, you see, you go from current law of 35% to automatically, if congress doesn't intervene, to 39.6%, and then eliminate the p.e.p. and do what the house democrats want

1:27:28 to 1:27:49( Edit History Discussion )

Chuck Grassley: to rate, very, very high, and very, very negative to employment by small business. this tax change would result cumulative in an increase of marginal tax rates of 33%. 33% increase over what taxes

1:27:50 to 1:28:10( Edit History Discussion )

Chuck Grassley: people are paying right owners o businesses, whether regular, which could be -- you can also have so-called c-corporations or other entities that receive dividends or realize capital

1:28:11 to 1:28:34( Edit History Discussion )

Chuck Grassley: gains would face a 25% rate increase under this house bill. so you have a 15% rate today and on dividends going up almost 70% january 1, 2011.

1:28:35 to 1:28:55( Edit History Discussion )

Chuck Grassley: no are pretty important. candidate obama campaned on everyone in america -- everyone, would pay lower taxes than they uld under rates bill clinton had in the 1990's. end of quote. that's quite a promise. that's good for business

1:28:56 to 1:29:16( Edit History Discussion )

Chuck Grassley: lower than had. the small proposed by the house democrats, however, violate president obama's pledge that he made as a candidate. therefore, i want you to know that i stand with president obama in opposing the small

1:29:17 to 1:29:37( Edit History Discussion )

Chuck Grassley: business surtax proposed by t house democrats in this bill -- this 2,0 now according to the national federation of independent businesses, and they make a survey, and their data show 50% of the owners of small businesses that emp

1:29:38 to 1:29:59( Edit History Discussion )

Chuck Grassley: workers would fall into the top bracket. so the red bar haoerbgs 50% of -- bar here, 50% of all small employers fall into that bracket. according to small business administration, about two-thirds of the nation's small business workers are employed by small

1:30:00 to 1:30:20( Edit History Discussion )

Chuck Grassley: businesses with 20 to employees. do we really want to raise taxes on these small businesses that create new jobs and employ two-thirds of the small businesses? in his radio address a few months ago, the president noted that small businesses are hurting. and they are hurting because

1:30:21 to 1:30:42( Edit History Discussion )

Chuck Grassley: we're helping wall street but we aren't helping main street with all the things we're doing here in congress. and, of course, there's no argument from this side of the aisle on that point. president obama recognized in that speech the credit crunch on small businesses continues despite hundreds of billions of

1:30:43 to 1:31:03( Edit History Discussion )

Chuck Grassley: bailouts for big banks. with these small businesses already suffering from the credit crunch, do we really want to think it's wise to hit them with a double whammy of a 33% in rates? just yesterday we received data

1:31:04 to 1:31:25( Edit History Discussion )

Chuck Grassley: from the congressional tax scorekeepers, the joint committee on taxation, that said that $1 out of every $3 raised by the massive $461 billion house surtax -- and that's in this 2,000-page bill -- it would come from small business.

1:31:26 to 1:31:46( Edit History Discussion )

Chuck Grassley: and that's conservative. a very because other kinds of income that these business owners receive such as capital gains and dividends, aren't included in that figure. if the proponents of the marginal rate increases on small business owners agree that a 33% tax increase for half -- half --

1:31:47 to 1:32:08( Edit History Discussion )

Chuck Grassley: of the small businesses that employ two-thirds of all small business workers is not wise, then they should either oppe these tax increases or present data that show different results. this house bill of 2,000 pages

1:32:09 to 1:32:30( Edit History Discussion )

Chuck Grassley: here and the surtax included in it piles on the heavy taxes small businesses will in a are struggling to stay afloat, does this make sense to impose the additional burden on them by raising their taxes? odds are they'll cut s in other words, the small

1:32:31 to 1:32:53( Edit History Discussion )

Chuck Grassley: businesses will cut spending. they'll canceling orders for new equipment, cut health insurance for and lay off people. instead of seeking to raise taxes on those who create jobs in our economy, our policies need to focus

1:32:54 to 1:33:16( Edit History Discussion )

Chuck Grassley: excessive faction and regulatory barriers -- excessive tax and regulatory barriers that stand in the way of small businesses making production and creating sustainable jobs. one more minute, mr. president? the presiding officer: without objection. mr. grassley: creating sustainable jobs, which is what

1:33:17 to 1:33:38( Edit History Discussion )

Chuck Grassley: i refer to as small business being the job-creating miracle of our economy. so i want you to know, regardless of this 2,000-page house bill, with these big tax increases in it, i will continue to fight to prevent a dramatic tax increase on our nation's job engine, the small business of america.

1:33:39 to 1:33:50( Edit History Discussion )

Chuck Grassley: i hope my friends on t other side of the accordingly. and i ask unanimous consent, mr. president, if i could put in the record a statement from the