Washington, D.C. – U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Thursday regarding a proposed paid-for extension of the payroll tax cut and the need for the President move forward on the shovel-ready Keystone XL Pipeline:
“Yesterday, Republicans, led by Senator Heller, introduced what we believe is a much smarter approach to extending the temporary payroll tax cut than the one proposed by Democrats involving permanent tax hikes on job-creators.
“Like Democrats, we think struggling American workers should continue to get this temporary relief for another year. There’s no reason folks should suffer even more than they already are from the President’s failure to turn this jobs crisis around. But there’s also no reason we should pay for that relief by raising taxes on the very employers we’re counting on to help jolt this economy back to life.
“We wouldn’t be helping anybody by making it less likely that small businesses actually start hiring people again.
“So Senator Heller’s proposal would achieve the same result, the same relief, without the gratuitous hit on job-creators. Even better, our plan protects Social Security and reduces the federal deficit by more than $111 billion.
“How do we do it?
“Well, consistent with the recommendations of the bipartisan Simpson Bowles commission, our payroll tax plan would institute a three-year pay freeze on federal civilian employees — including members of Congress.
“It would also reduce the federal workforce gradually by 10 percent — not by firing anybody, but by only hiring one replacement for every three federal employees who leave federal service, until the 10 percent reduction that the Simpson-Bowles commission recommended is reached.
“Our bill would also save money by means-testing Medicare benefits for millionaires and billionaires.
“What’s that mean?
“Well, one of the things the economic downturn of the past few years has revealed is that a lot of people out there are getting a pretty good deal from government at every level, all on the taxpayer’s dime.
“Let me give you an example.
“Yesterday, a CBS affiliate in Philadelphia reported that a former Philadelphia schools superintendent who got a nearly $1 million buy-out in August is now putting in for unemployment benefits. This lady got shown the door, got $905,000 not to finish out her five-year contract with the school district, and on top of that, she now wants the taxpayers to subsidize her unemployment benefits, to the tune of about $30,000 a year.
“Our proposal helps minimize this kind of thing.
“What we’re saying is that anybody who makes more than a million dollars a year shouldn’t be getting an unemployment check on top of it, paid for with the tax dollars of folks struggling just to make ends meet.
“No more unemployment checks or food stamps for millionaires.
“And we don’t think these folks would mind having to pay full freight on their Medicare premiums either.
“Millions of seniors need help covering their monthly Medicare premiums; Warren Buffett isn’t one of them.
“And here’s another way we think folks like Warren Buffett can help offset the relief we’re giving working Americans through this temporary extension of the payroll tax cut: our proposal also incorporates legislation from Sen. Thune that would allow people who want to voluntarily help pay down the federal debt to do so on their tax return. There would actually be a new line right on Warren Buffett’s tax returns enabling him or anybody else to give as much as they want. That way those who want to go that route can feel like they’re contributing in a way they want, and small business owners who want to help our economic and fiscal situation by growing their businesses and creating jobs can do that too — without Washington dictating one way or the other.
“This is the kind of balanced plan Americans are looking for.
“It’s focused on helping middle-class Americans without asking them to fund benefits for the wealthiest among us — and it does so without hamstringing the economy, as the Democrats would, with a permanent tax on job creators.
“And it also helps rein in bureaucracy in Washington. Millions of Americans have had to go without or to live with less over the past few years, yet all they see here is that Washington just keeps getting bigger and richer.
“It’s about time Washington took the hit for a change.
“So we think this is a plan that those who are fed up with Washington and Wall Street can embrace.
“But, as I’ve said before, we’re never going to turn this economy around as long as we’re focused on these temporary measures. Yesterday, I outlined our vision of a tax reform plan that restores basic fairness, helps put businesses on a level playing field, and puts our tax rates in line with our competitors overseas. That’s the kind of thing that will get this economy charging again. And we’ll continue to press for it.
“Meanwhile, we’ll also continue to point out the things this administration is doing to prevent job creation now.
“Yesterday, Republicans drew attention to one of the greatest fumbles of this administration yet.
“I don’t know how many Americans are familiar with the proposed Keystone XL Pipeline. But this is an issue that every single American should know about.
“The Keystone XL Pipeline is the single-largest shovel-ready project in the entire country.
“It would transport oil from Canada to the Gulf Coast.
“It’s privately funded, so it wouldn’t cost a dime in taxpayer dollars.
“And we’re told that its approval would lead to the creation of 20,000 jobs immediately.
“This project is enormous. It’s a huge job-creator. And it’s ready to go.
“Labor unions love this project. Folks in the heartland love this project. The Chamber of Commerce loves this project. But here’s the problem: President Obama’s getting heat from his base over this project — especially from the very young and very liberal voters he’ll need knocking on doors before November. So the State Department now says they’re going to delay its approval — even though previously they were seemingly ready to approve it after a three-year review, including two exhaustive environmental evaluations.
“Here’s the bottom line: the President has said time and again that his top priority is jobs.
“Yet here we’ve got the single largest shovel-ready project in the country, ready to go, and he’s delaying its approval until after the election. He’s saying he doesn’t care so much about jobs in states like Nebraska that he doesn’t think he’ll carry next year so he can keep the enthusiasm up in states he hopes to carry. So I think it’s pretty clear the President cares less about this particular boon for job creation than in his own job preservation. And it’s wrong.
“There is no reason whatsoever to delay this project and these jobs by another day.
“As the President recently put it: ‘We’ve got to decide what are our priorities. We’ve got to ask ourselves what’s not just best for me, but what’s best for us. What’s the best way to grow the economy and create jobs?’
“And that’s why Republicans are proposing legislation today that would require the President either to approve this massive job-creating project within 60 days or to explain clearly why he doesn’t think it’s in the national interest to do so. We think the people who want to start hiring deserve action, or a straightforward explanation from the President himself as to why he opposes it. Get this pipeline going now, Mr. President, or get out of the way.”
