Washington, D.C. - Mr. Speaker, I rise today in opposition to this so-called “Compromise” Estate Tax proposal. This bill does make compromises – it compromises our children’s futures, it compromises the future of our Social Security system, and it compromises our working families.
We’re facing real issues in this country. We have rising deficits and a Social Security system that needs to be further secured. And today we are debating a bill to effectively repeal a tax that affects only the largest one half of one percent of estates. In the first ten years after it takes effect, it will cost more than $750 billion, including interest on the added debt. That bill will have to be paid by the rest of America, including our grandchildren.
My colleague, Congressman Pomeroy, offered a substitute to reform the estate tax and help shore up Social Security. We could increase the current estate tax exclusion to $3 million per individual and $6 million per couple after 2006 and $3.5 million per individual and $7 million per couple in 2009. This would exempt 99.7% of estates from tax liability. And we could funnel estate tax revenues into Social Security, solving a full quarter of the trust fund’s shortfall.
Let me remind my colleagues that Social Security not only provides essential retirement security for our nation’s seniors, it also provides disability and life insurance for our troops. We had an opportunity to turn estate tax funds into a dedicated source of revenue for this vital program. We had an opportunity for real reform.
Unfortunately, the Majority on the Rules Committee rejected this opportunity by rejecting the alternate proposal by Mr. Pomeroy. Now we are debating some very different priorities. Instead of guaranteeing a source of funding for Social Security for our nation’s seniors and military families, we’re talking about guaranteeing a huge tax break to multimillionaires and billionaires. Instead of seriously facing our massive deficits, we’re talking about adding to them. Instead of instituting real, clear tax reform, we are talking about a tax rate that is not even defined outright in this bill. I have been willing to consider certain creative proposals that would allow individuals to voluntarily prepay their tax, but this proposal is a non-starter.
If we pass this legislation, who will pay for the deficits? This bill will add $750 billion to the national debt over ten years. Who will pay that price? Certainly not those who can best afford it – they’re the ones who are reaping the benefits. This bill gives a small portion of the richest people in this country a gift and asks the middle class and their children to pay for it.
Mr. Speaker, I urge my colleagues to reject this false compromise. It’s time to stop passing special interest legislation like this and start focusing on real reforms that benefit all Americans.