On the recordMay 24, 2012
as Senator Harkin pointed out, the Republican proposal goes right to the heart of prevention, and that will have two effects. It will deny critical services to families all across this country, and it will do something else--it will deny us the chance to bend that proverbial cost curve. If we do not control those costs, we will be in a fiscal disaster. The proposal they are making does not make sense. We have proposed to close a tax loophole that has been described by the Treasury inspector general for tax administration as a multibillion-dollar employment tax shelter. We have restricted it to the people who are receiving over $200,000 a year. This is not small business men and women. This is not the corner hardware store. These are lobbyists. These are lawyers who have craftily used subchapter S corporations to avoid paying payroll taxes. This loophole has been criticized on the editorial pages of the Wall Street Journal. This is no ``just raise taxes.'' This is trying to find a loophole which has been criticized by the right as well as the left to pay for and ensure that we do not double the interest rate on students. I cannot think of a clearer choice: Reject the Republican proposal; accept our proposal; do not allow the subsidized student loan interest rate to rise on July 1. The PRESIDING OFFICER. The Senate will be in order. The Senator from Tennessee.
