John B. Breaux: “most people think we are debating a tax cut bill. There are some tax cuts in the bill. But there is also a $35 billion…”

“most people think we are debating a tax cut bill. There are some tax cuts in the bill. But there is also a $35 billion tax increase--a $35 billion tax increase on schoolteachers who work overseas, ministers who work overseas, Catholic relief workers, charitable workers, and technicians who work overseas, earn income overseas, and pay taxes overseas. We are now changing the law to eliminate the exemption they have always traditionally enjoyed. They do not live in this country and don't get the benefits of living in this country, and therefore we give them a tax exemption. That has been eliminated in the amendment that has been offered by the Senator from Oklahoma. It is a $35 billion tax increase to pay for the dividend provisions of the legislation. We just voted, incidentally, for overseas corporations, if they bring their profits back to the United States--guess what we did. We voted to tax them at 5 percent for 1 year. But if an individual works overseas and makes money, we are now saying that your tax exemption has been eliminated; you will pay taxes in the country where you are getting a credit against your income tax, but you will pay taxes as if you lived--resided--and worked in United States. It is a $35 billion tax increase on people making $50,000 to $75,000 a year in order to pay for a dividend tax cut from which most people are not going to benefit.”