Date: 1982-05-20
Speaker: ROBERT C. BYRD (democrat)
Chamber: S

Mr. Prestdent. Senator HoLoNrs has just performed a major service to this body. His courageoiis efforts place the blame for the huge deficits squarely where they belongwith the extravagant and unfair KempRoth tax scheme. His work is appreciated by every Senator. I voted against the amendment offered by my good friend with great reluctance. but I did so because the resolution itself increases taxes by $107 billion. A vote to defer the third year. in my judgment. would be simply to add $76 billion to that $107 billion. making it $183 billion in increased taxes. What I propose to do is to call up an amendment. a sense of the Senate resolution. that provides as follows: It is the sense of the Senate that in reporting legislation to achieve the $107.2 billion in revenues required under this Resolution. rather than impose new. regressive taxes on American taxpayers. the Committee on Finance should (1) defer the third year of the KempRoth individual rate reduction until the current budget crisis has prssed and interest rates have dropped to affordable levels. or (2) repeal the third year if the KempRoth individual rate reduction and replace it with a fiscally prudent tax cut which distributes the benefits fairly to all working and middleincome Americans. Mr. Piesident. the $107 billion included in the budget resolution in increased taxes could come from many sources. One possitia tax increase is the repeal of the deduction for intangible drilling cost. which would destroy the oil and gas industry in West Virginia. This is a young and growing industry that provides jobs. Another possible tax that could hurt our State is an acrosstheboard energy tax which would hurt oil. coal. and gas. Another tax increase might be user fees on our waterways and ports. which would hurt the coal industry. There are other taxes that could be imposed to make up the $107 billion included in the resolution before us. For example. there could be new taxes on disability payments for military personnel. veterans payments. taxes on veterans benefits. taxes on railroad retirement benefits. taxes on unemployment insurance. taxes on workmens compensation payments. taxes on social security benefits. to name Just a few. There could be taxes on health insurance programs for workers. taxes on the GI bill student benefits. taxes on individual retirement plans. taxes on disability benefits. taxes on black lung payments. So. Mr. President. we are talking about $107 billion in new taxes that do not now exist. In other words. Mr. President. we are voting a virtual blank check to raise $107 billion in new taxes on average people. !n my own case on average West Virginia workers. farmers. small businessmen. and so on. These are people who have already been hurt and are now being asked to pay more. I would say that to raise new taxes in the amount of $107 billion in the middle of a recession is the wrong way to go. It does not provide a solution to our fiscal crisis nor is it fair. So. Mr. President. I offer this amendment so that the Senate may have an opportunity to vote to defer the third year of the KempRoth tax cut as part of the $107 billion in new revenues called for by the resolution until the current budget crisis has passed and interest rates have dropped to affordable levels. I am not saying to eliminate the third year. My amendment provides for deferral of the third year or replacement of it with a fiscally prudent tax cut that distributes reductions fairly to all working and middleincome Americans. The KempRoth tax cut now ptovides that 40 percent of the benefits go to 5 percent of the taxpayers. The Vinance Committee could have the option of deferring the third year of the KempRoth tax cut and thus avoid raising new taxes by $107 billion. The third yearwe are talking about $76 billion across 3 yearswould be used as an offset against the $107 billion which will otherwise be raised in new taxes on workers. farmers. small businessmen. who are already heavily overtaxed. Mr. President. I hope the Senate will vote for the amendment. I send it to the desk and ask that it be stated by the clerk.