WASHINGTON — Today, ahead of a vote on the Senate floor, U.S. Senator Tom Udall spoke out against the devastating GOP tax plan, highlighting the many ways the bill will hurt New Mexico families. The bill would gut tax deductions for the middle class and working families and force drastic cuts to mandatory federal programs like Medicare and state mineral leasing payments in order to pay for massive tax cuts for corporations and the ultra wealthy.
He released the following statement:
“I want to support responsible tax relief for New Mexico families, but unless you’re a very wealthy individual, a multinational corporation, or a private equity or hedge fund, this bill will leave you worse off – not better. It would actually raise taxes on many working families, drastically cut Medicare, drive health care costs through the roof, and slash a major source of revenue that New Mexico uses to pay for schools, roads and other critical services.
"Republicans are setting up a fiscal trainwreck by adding $1.4 trillion to the deficit, which threatens future government revenues and long-term budgets for our labs, bases, scientific research funding, and public lands. Not only that but unless Congress takes some future, uncertain actions, this tax cut for the wealthy would also jeopardize the royalties the federal government pays New Mexico and other Western states for oil, gas and coal developed on public lands. These payments are compensation for resources on publicly owned land in our state, and New Mexico uses the roughly $450 million in royalties to pay for schools, roads, emergency response and other crucial services that taxpayers rely on. These royalties belong to New Mexico taxpayers – they are not a source of free money for the Republicans to use to pay for their tax cuts for millionaires and billionaires and multinational corporations.
“This tax bill is a scam that would leave the state with fewer resources to meet critical needs, and leave working taxpayers with less money in their pockets. CEOs would be able to write off corporate jets, but regular people could no longer deduct student loan interest. Those are some outrageous priorities. I’ve heard from New Mexicans from all across our state who are angry about this dangerous plan, and I’m going to keep fighting to defeat it in the Senate and to protect New Mexico taxpayers.”
Earlier in the day, Udall held a press conference to protest a highly controversial rider buried in the bill that would open the coastal plain of the Arctic National Wildlife Refuge to drilling. Udall was joined by with U.S. Senators Martin Heinrich (D-N.M.), Maria Cantwell (D-Wash.), Ed Markey (Mass.), and Michael Bennet (D-Colo.) and representatives from the Gwich’in Nation, the League of Conservation Voters, and other advocates. Video of the press conference is available here .
Udall also gave a speech on the Senate floor in opposition to the GOP tax bill. Video of the speech is available here and full text of Udall's remarks is available below.
Mr. President, the Republicans’ tax bill is a disaster for the American people. It would give the ultra-wealthy a tax cut, and make middle class families pay for it. I can't tell you how strongly I oppose it.
We’ve heard a lot from the president and the Republicans how their tax cuts will be a rising tide to lift all boats, but this claim just doesn’t hold water. Look carefully. On top of the $1.5 trillion in new deficits, they are hiding where $5 trillion of cuts over the next 10 years will come from – and just who will actually benefit.
The Republican budget would force steep cuts in health care, education, and other programs that working and middle class families rely on.
It’s a terrible plan for my home state of New Mexico -- where a lot of families already have a hard time getting by.
Plain and simple -- the Republicans’ plan is a massive redistribution of wealth. Listen to this, who it's taking money from and who they're giving it to. It would take money from working families, seniors, children, the sick and disabled, rural families, and the poor – and give it to the very top, the top 1 percent.
And they propose it at a time when the gap between the very rich -- and everyone else -- is already growing. We now have greater income inequality in the U.S. than at the height of the Gilded Age — over one hundred years ago.
Mr. President, I want to highlight for my colleagues across the aisle another big problem with the Republicans’ bill. It has not been talked about enough, but it’s important to my home state of New Mexico, and to many Western states. The Republicans’ deficit-creating tax cuts are going to cause automatic sequestration. And this will cut several mandatory programs under the Pay-As-You-Go Act.
One of those is the mineral royalties from oil and gas drilling and coal mining on public lands that the federal government shares with states.
New Mexico’s royalty share is projected to be $437 million next year. Other states count on these payments for millions of dollars in their budget too. Colorado received over $80 million in 2016. All of that would be at risk. Wyoming received over $660 million last year. Its state budget can’t afford to lose that kind of money. Utah, Montana, and North Dakota all received tens of millions in mineral payments last year as well.
These are royalties that New Mexico and the states are entitled to.
In New Mexico, we mainly use this money for public schools. Other states use it for vital government programs like health care, roads, and police.
Our state legislature has struggled the last couple of years to balance the budget. The chair and vice chair of the New Mexico Legislative Finance Committee wrote just this week to our entire delegation. They warn that losing so much revenue, “would have a devastating impact on the state’s budget and would wipe out the reserves our state has struggled to rebuild.”
Mr. President, New Mexico school kids just can’t afford to take a $437 million hit.
Now, I know it’s possible for Congress to pass legislation some time in the future to take mineral royalties out of sequestration. But there is no guarantee at all of that ever happening. And I am not willing to take chances with the education of New Mexico school children.
The Republicans’ tax cuts will also hit Medicare hard. That’s another concern for New Mexico families. Tax cuts for the super-wealthy and big corporations will mean New Mexico could lose out on about $178 million of federal Medicare payments every year.
I am opposed to trading off seniors’ health just so the rich can get richer.
But the Republicans seem bound and determined to take away America’s health care. Even though the American people have spoken up loud and clear: they want their current health care rights fully protected.
Republicans want to do away with the individual mandate under the Affordable Care Act. But we also know that will mean millions of Americans will lose coverage. And we know that premiums will go up because insurance companies will be covering a sicker population.
I am opposed to trading off the American people’s health just so the rich can get richer.
Mr. President, the majority’s bill is a bad idea for basically everyone in New Mexico and across the country – except for very wealthy individuals, multinational corporations, and private equity and hedge funds. These are the folks that are being helped — the very wealthy individuals, multinational corporations, and private equity and hedge funds.
Let’s instead get down to the business of governing on behalf the American people. Not just the top 1 percent.
