Middle Class Tax Cut Act--Motion to Proceed--Continued
Floor Speech
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Ms. COLLINS. Mr. President, today I have filed an amendment to extend for 1 year the individual income tax provisions of the 2001 and 2003 tax relief acts for all Americans, but with a surtax of two percent on those earning $1 million or more, coupled with a ``carve-out'' to protect our nation's small businesses.
The Congressional Budget Office has warned us that the ``fiscal cliff'' created by the expiration of current tax rates on December 31, coupled with ill-advised and deep cuts in defense spending that would result from ``sequestration,'' would likely result in a recession in the first half of next year. It makes no sense and should be unacceptable to all of us to allow our country to go over this ``fiscal cliff.''
I have long urged that we begin the debate on comprehensive tax reform aimed at creating a simpler, fairer, pro-growth tax code. I also believe that multimillionaires and billionaires can afford to pay more to help us deal with our unsustainable deficit.
My amendment would, therefore, impose a 2 percent surtax on millionaires, with a carve-out to protect small business owners who pay taxes through the individual income tax system. Our Nation's small businesses must not be lumped-in with millionaires and billionaires. The ``carve-out'' I am proposing would shield small businesses owners from tax increases intended to fall on the very wealthy.
These small business owner-operators are on the front lines of our economy, and of the communities in which they live. The income that shows up on their tax returns is critical to their ability to create jobs, finance investment, and grow their businesses. Left in their hands, this income will lead to more jobs and buy the tools that help American workers compete.
Congress still could tackle tax reform this year but, unfortunately, this is not likely. That is why, in my amendment, I propose extending the current individual tax rates for all Americans through 2013, to give us the time we need to consider and adopt comprehensive reform that results in a simpler, fairer, pro-growth Tax Code. The surtax on the very wealthy, combined with protection for small businesses, will help us begin to deal with the deficit without harming the job creation engine of our economy--small business.
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