Date: 1981-07-29
Speaker: ROBERT C. BYRD (democrat)
Chamber: S

Mr. President. I have consistently raised concerns about the Presidents 3year. acrosstheboard Individual tax cut. I have also consistently said that the American people need to have their taxes reduced. and that business needs incentives to increase Its investment In productive capacity. The bill before us is far from perfect. In fact. it is still flawed with the basic problems of Kemp/Roth. It has an unfair distribution of tax benefits. and it contiains a third year tax cut which I do not believe can be justified as prudent fiscal policy. On the other hand. the bill does provide a margin of tax relief to the hard pressed middle class of this country. and it contains many important incentives for Increased investment and savings. I have supported numerous amendment. to this bill. which I believe would have made It a far better bill. I supported the Bradley amendment which attempted to redistribute some of the benefits of the Individual tax cut to the $1O.0004$50.000ayear income group. I supported the Exon amendment which would have tied the third year of the tax cut to the performance of the economy. measured against the administrations own economic projections. I voted f.1r a Bradley substitute for the individual rate cuts which provided for a 1year Individual rate reduction. and targeted the rate reductions to people earning between $10.000 and $50.000 per year. In order to stimulate capital formation. I voted for a Bradley amendment to reduce the amount of income subject to capital gains from 40 to 30 percent. For the same reason. I voted for a DArnato amendment which would have maintained the current exclusion from income of interest and dividends of $200 per individual and $400 per couple. I voted for the Riegle amendment which would have reduced the corporate tax rates of small businesses. and for the Kennedy amendment which would have Increased the tax credit for industrial and commercial energy conservation. In the interest of fairness to the Nations elderly. particularly in light of the assault the administration is making on the social security system. I voted for a Kennedy amendment to increase the retirement income tax credit enjoyed by elderly Americans. and I voted for a Riegle amendment to accelerate the effective date of the marriage penalty. All of these amendments failed. most of them on the basis of a highly partisan vote. I wish they all had passed. Had they passed. I believe the Senate would have the opportunity to vote on a bill which is far superior to that which Is now before us. However. having tried to Improve the bill. and having failed. the question then becomes "Should one vote for this bill. If he or she Is not 100 percent In accord with it?" Senators will make this judgment Ubsed on a complex set of factors. I Intend to vote for the bill. not because I subscribe to the theory of acrosstheboard. multiyear tax cuts. nor because I subscribe to the notion of trickle down economics. which is implicit In this bill. But I do believe that the American people want and deserve a tax cut. I do believe that American business needs incentives to increase its level of productivity. And finally. it is my hope. that thd bill can be improved In conference. especially If the Ways and Means alternative is successful In the House. I continue to have grave concerns about the economic course upon which this administration is steering the Nation. I continue to disagree strongly with the administrations tight money policy which is crippling American business and crushing the dreamsof many American consumers. I voted to support a Boren amendment which expressed the sense of the Senate that the President should aszlre our allies at the Ottawa Summit that the United States would take immediate. direct. and affirmative steps to lower significantly our domestic interest rates. In one of many partisan votes which characterized consideration of this bill. that reasonable amendment was tabled by a vote of 53 to 40. I am voting for this bill because I feel it is important to grant tax relief to the American people. My vote should not be misinterpreted. It is not a vote in support of this administrations economic policies. nor Is it a vote in support of the large deficits and high interest rates which I fear their policies will sustain. I would have preferred to vote for a much more targeted. prudent tax cut. Democratic efforts to frame such a tax cut were consistently frustrated. so I vote for this tax bill with the hope that the new administrations rosy economic scenario proves true. However. I cannot be terribly sanguine on this front. Mr. President. the chairman of the Finance Committee. the Senator from Kansas . has distinguished himself in his first major legislative effort as chairman of the Senate Finance Committee. While I have not always agreed with him on this bill. his ever present and sometimes biting wit has brightened the Chamber and lightened our heavy load as we worked tirelessly to deliver this bill to the Presidents desk prior to the August recess. As always. the distinguished ranking minority member of the committee. Mr. LoNo. has shown himself to be the master of the U.S. Tax Code and one of this Chambers most skilled and tireless legislators. Mr. President. I thank all Senators for their cooperation in expediting the consideration of this very important measure. During consideration of this bill. the Senate has disposed of 118 amendments in 2 weeks time. This is a considerable legislative achievement.