Rep. Maxine Waters (D-CA) Statement at Hearing on National Debt

“When we return next year in the new Congress, with Democrats in the Majority, this Committee will reject harmful and reckless policies like these, and work to ensure that our financial system is fair.” — Rep. Maxine Waters (D-CA)
“When we return next year in the new Congress, with Democrats in the Majority, this Committee will reject harmful and reckless policies like these, and work to ensure that our financial system is fair.” — Rep. Maxine Waters (D-CA)

WASHINGTON — Congresswoman Maxine Waters (D-CA), Ranking Member of the House Committee on Financial Services, gave the following statement at a full Committee hearing entitled, “The Peril of an Ignored National Debt.

As Prepared for Delivery

Thank you, Mr. Chairman.

Mr. Chairman, since this hearing is about attention to the national debt, I think it is important for the public to understand that the Republican tax scam, pushed through by Congressional Republicans and Donald Trump during this Congress, explodes deficits by an estimated $2.3 trillion from 2018 through 2028, leaving future generations to foot the bill.

The shameless GOP tax scam contains massive giveaways for the nation’s largest banks. According to Americans for Tax Fairness, the country’s six largest Wall Street banks will collectively save an estimated $14 billion in 2018 alone.

And it’s not just banks – the tax scam includes a 20 percent deduction for pass-through businesses, which is a huge giveaway to hedge funds and other Wall Street firms.

To make matters worse, companies are overwhelmingly using the windfall from the tax scam not to hire more workers or raise wages, but to buy back shares from their investors.

This law has been very deliberately constructed by my colleagues on the other side of the aisle to benefit huge corporations on Wall Street and millionaires and billionaires, at the expense of hardworking Americans.

The American public, and future generations will be forced to pay for these handouts to massive corporations because of the actions of the Republican-controlled Congress and this President.

And of course, Republican policies such as the Bush tax cuts – and the Iraq war – are also major contributors to the deficit.

So, when my colleagues on the other side of the aisle talk about fiscal responsibility and the perils of ignoring the national debt, it must be understood that their actions do not match their rhetoric, particularly when it comes to tax cuts for the wealthy.

When we return next year in the new Congress, with Democrats in the Majority, this Committee will reject harmful and reckless policies like these, and work to ensure that our financial system is fair. We will prioritize protecting consumers and investors, making sure strong safeguards are in place to prevent another financial crisis, expanding and supporting affordable housing opportunities, encouraging responsible innovation in financial technology, promoting diversity and inclusion in the financial services sector and ensuring that hardworking Americans and small businesses have fair access to the financial system and opportunities to thrive.

So, Mr. Chairman, I thank you and I yield back the balance of my time.

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1 Comment

  1. Lower taxes by replacing state & federal income taxes on our $10 Trillion AGI[1], the 10% capital gains tax, the average 6% sales tax, excise taxes, tariffs and subsidies with a decentralized form of Edgar Feige’s 0.3% flat tax[2,3] on the $4 quadrillion of dollar liquidity flows[4] through the banking system. Broadening the tax base, in this way, allows for lower individual taxes These tax revenues may be widely distributed to municipal governments and appropriations legislated upwardly through state & federal governments after local community issues are addressed. Lower taxes curb appeal for tax havens[5,6] that reduce tax revenues. Lower taxes encourage local businesses and create jobs. Lower taxes raise net wages, net profits and allow for lower priced goods & services in local markets. Lower taxes allow more competitively priced goods & services to be exported abroad which reduces long-term trade imbalances. And this tax reform saves $800 billion each year in overhead costs for helping to reduce national debt to more sustainable levels. The use of QE/ZIRP/IOER, bail-in/bail-outs and welfare-warfare spending[7,8]* are additional fiscal concerns that require taxpayer dollars and taxpayer guarantees. Lower taxes are a good thing, as long as government manages it’s budget properly. There is such a thing as government becoming overly costly and overly protective to the point of smothering the economy and smothering people’s rights.

    *Note that SS/Medicare is separately funded by FICA payroll withholding.

    [1] Summary of the Latest Federal Income Tax Data, 2017 Update | Tax Foundation
    [2] Alternative Proposals Reform, May 11 2005 | Video | C-SPAN (second 5-minute speaker)
    [3] Taxation for the 21ST Century: The Automated Payment Transaction (APT) Tax | SSRN
    [4] Intraday Liquidity Flows | FRBNY
    [5] The Spider’s Web – Britain’s Second Empire | Youtube
    [6] [PDF] Treasure Islands | Nicholas Shaxson
    [7] America’s $1.1 Trillion National Security Budget | POGO | 2017
    [8] CRS Report: Welfare Spending The Largest Item In The Federal Budget | Sessions | 2012

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