WASHINGTON - Ways and Means Committee Ranking Member Sander Levin (D-MI) today made the following statement on the House floor in opposition to H.R. 5806, a permanent, unpaid for extension of three tax provisions that would add more than $11 billion to the debt:
Let me make clear at the outset: This isn’t a debate about the excellent work of charities or foundations or their vital role in our society. This House has already taken action to provide for the three provisions included in this bill for this year’s tax returns as part of the broad extender bill that passed last week. So when the Chairman talks about “no surprises," we’ve already passed through the House and what will become law is an extender bill that makes it clear for this tax season these provisions are in effect. There’s no doubt about that. So everyone who voted in favor of that package has already ensured that taxpayers can benefit from these provisions this year.
This isn’t about politics. And frankly, as a lead sponsor of one of these bills, I find it objectionable any reference to politics. I sponsored that bill regarding food contributions because of my belief that many people wanted to contribute to help supply nutrition.
And when the President issued his Statement of Administration Policy, there was no politics at all. Zero. He had made that clear in July. And I think it’s regrettable that anyone would say that politics has anything to do with this issue.
As I said, these provisions are already going to be available for taxpayers in this tax season. This is about fiscal responsibility and fiscal priorities. What this bill does is to take three provisions out of the many in the extender bill, leaving aside R&D, leaving aside the education provision, leaving aside the Child Tax Credit that would expire in terms of its improvements in a couple of years. What this bill does is to take just these three, important as they are, and say, “we’re going to going to make them permanent," without paying one dime for them, adding more than $11 billion to the debt.
I must say - whatever anyone thought of Chairman Camp’s comprehensive bill, and we had some questions about it, but never questioning the fact that it took some hard work and courage to put these provisions into the context of comprehensive tax reform. So it’s counterintuitive to just pick these three up and make them permanent unpaid for.
Let me read the White House Statement of Administration Policy, if I might. I just hope it sets to rest any claim that this is about politics. Because, as the original sponsor of one of these bills, I can just emphasize what propelled me to propose it. All of the food pantries that I went to. All of the church groups that I went to that provide food. The business people I talked with, who were essentially donating food that they couldn’t sell. And doing so in a way that was timely so the foods were easily edible and readily so. And so, with that spirit, and talking about the spirit of the season, this Administration Policy - I hope with that spirit it will be received:
“The Administration supports measures that enhance non-profits, philanthropic organizations, and faith-based and other community organizations in their many roles, including as a safety net for those most in need, an economic engine for job creation, a tool for environmental conservation that encourages land protections for current and future generations, and an incubator of innovation to foster solutions to some of the Nation’s toughest challenges. The President's Budget includes a number of proposals that would enhance and simplify charitable giving incentives for many individuals.
“However, the Administration strongly opposes House passage of H.R. 5806, which would permanently extend three current provisions that offer enhanced tax breaks for certain donations. As the Administration stated when strongly opposing similar legislation this past July, if this same, unprecedented approach of making certain traditional tax extenders permanent without offsets were followed for the other traditional tax extenders, it would add $500 billion or more to deficits over the next ten years, wiping out most of the deficit reduction achieved through the American Taxpayer Relief Act of 2012. Earlier this year, House Republicans themselves passed a budget resolution that required offsetting any tax extenders that were made permanent with other revenue measures.
“As with other similar proposals, Republicans are imposing a double standard by adding to the deficit to continue tax breaks, while insisting on offsetting the proposed extension of emergency unemployment benefits and the discretionary funding increases for defense and non-defense priorities such as research and development in the Bipartisan Budget Act of 2013. House Republicans also are making clear their priorities by rushing to make these tax cuts permanent without offsets even as the House Republican budget resolution calls for raising taxes on 26 million working families and students by letting important improvements to the Earned Income Tax Credit, Child Tax Credit, and education tax credits expire.
“The Administration wants to work with the Congress to make progress on measures that strengthen America’s charitable sector. However, H.R. 5806 represents the wrong approach.
“If the President were presented with H.R. 5806, his senior advisors would recommend that he veto the bill."
