As rosy as the budget surplus projections look now, it is important to remember that they are in fact only that: projections.  We cannot assume that these projections guarantee a decade or more of windfall revenues, and such a rash conclusion could lead to our debt spiraling further out of control. A simple trigger mechanism would halt the implementation of tax cuts if the surplus does not materialize.  This precaution would safeguard our budget against inaccurate projections, but H.R. 3 fails to include such commonsense protection.

I would also remind my colleagues that Congress is required to pass a budget resolution at the beginning of each year precisely because Members need to know what funding levels are feasible for a broad range of critical federal programs.  Otherwise, Congress risks spending money the government does not have, which is exactly what will occur with the passage of H.R. 3.   

Let us not forget that just recently we struggled with annual deficits of up to $290 billion, a national debt of $5.6 trillion, and interest-only payments on that debt of $300 billion annually.  Put into perspective, those interest payments represented more than we were spending on Medicare, and almost as much as our entire national defense budget.  

Retiring the national debt is a paramount concern that should inform every aspect of our budget policy.  I want to be secure in the knowledge that our debt will continue to be reduced and our children and grandchildren will not have to shoulder the burden of our recklessness.  In addition, paying down the debt will result in one of the best tax cuts we can provide to America’s working families.  Reduction and elimination of the debt will ensure low interest rates and a sound long-term economic future for the nation.

We all want to reward hard-working families by returning some of their tax dollars, but this cannot come at the expense of our nation’s future fiscal well-being, nor should we adopt an approach that is so disproportionately skewed toward the wealthy.  I have strong reservations about the size of the across-the-board tax cut included in H.R. 3 and the inadequate number of taxpayers who would benefit from it.  Under this measure, an estimated 34,000 families with children, 68,000 children to be exact, in my home state of Rhode Island would not benefit from the proposed rate cut because they do not have  federal income tax liability.  In other words, 25% of Rhode Island families with children would not see a cent of the Republican tax cut!

While they would see no benefit from an income tax cut, these struggling families would still be required to pay the same payroll tax as wealthier Rhode Islanders, which is a significantly higher percentage of their income.  For most families, the largest federal tax burden is their payroll tax, not the income tax.  Furthermore, all families must pay state and local taxes – again, low-income families pay a considerably larger percentage of their income in such taxes than wealthier families.  That is why H.R. 3 is not a tax cut for all but rather the few.  And that is why I cannot support this bill in its current form.

Instead, I am cosponsoring the Democratic substitute with the Ranking Member of the Ways and Means Committee, because it is fiscally responsible and offers immediate and fair tax relief for middle- and lower-income families.  This measure would create a new 12% tax bracket, give all Americans an across-the-board tax cut, and give those working families who pay only payroll and federal excise taxes a refund through expansion of the Earned Income Tax Credit.  It also provides marriage tax penalty relief by doubling the standard deduction for married couples and leaves room in the budget for consideration of estate tax relief in the future.  Most important of all, under our alternative, families with children who earn less than $65,000 will receive equal or larger tax breaks than under the Administration’s proposal.  

I ask my colleagues to consider all of our nation’s needs.  Without a doubt, taxpayers deserve relief.  But they also deserve a strengthened Social Security system, a Medicare program that covers necessary prescription drugs, a military that is equipped to protect our nation, a quality health care system that is affordable and accessible to every family, and a world-class educational system that prepares our children for the 21st century.  These needs are great and they must not be ignored.  Because – at the end of the day – I refuse to look into the eyes of our elderly, our children, our soldiers and our working families and tell them that I traded their futures for those of the wealthy.