[Congressional Record Volume 140, Number 24 (Tuesday, March 8, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                   FAMILIES FIRST BUDGET ALTERNATIVE

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
February 11, 1994, the gentleman from Arizona [Mr. Hutchinson] is 
recognized for 5 minutes.
  Mr. HUTCHINSON. Madam Speaker, I rise today in support of the 
``families first'' budget alternative, a budget that will reduce the 
deficit more than the administration's budget and still provide 
progrowth incentives and, most importantly, middle-class tax relief.
  The issue is, will we cut wasteful Government spending in order to 
provide relief to overtaxed American families?
  Today, most American families pay more in Federal taxes than they 
spend for food, clothing, transportation, insurance and recreation 
combined.

                              {time}  1110

  This is a sharp and shameful contrast with the years after World War 
II, when Federal income and payroll taxes took only 2 percent of the 
income of a median family of four. Now that burden has increased to 24 
percent.
  During the past four decades, there has been a steady erosion in the 
value of the personal exemption for families with children. If the 
shelter of that exemption had kept pace with inflation and remained a 
fixed percentage of per capita income, it would now be over $8,000 
instead of the current $2,300.
  Recognizing that, the bipartisan National Commission on Children 
proposed, as its most important recommendation, a tax credit of $1,000 
per child. And only last year, the Democrat nominee for the Presidency 
promised that ``middle class taxpayers will have a choice between a 
children's tax credit or a significant reduction in their income tax 
rate.'' This budget plan provides an opportunity for the President to 
fulfill his promise.
  The American family has been in a financial vise and it is time the 
Federal Government loosened the vise--a ``families first'' budget is a 
first step.
  This budget alternative provides a $500 tax credit for dependent 
children. With three children, that is an additional $1,500 in 
purchasing power. Furthermore, 75 percent of this money would go to 
families with gross annual incomes below $60,000.
  I think it is clear that our public policies have grown increasingly 
hostile to the family. These numbers reflect just that. Our Tax Code 
has, for whatever reason, been used as a weapon against the family. Put 
simply, the home front is crumbling.
  The very first principle of public policy toward the family should be 
``do no harm.''
  But we have done harm.
  The American dream is increasingly at risk. The Tax Foundation 
reports that the overall tax burden is at an all-time high. Hot dog and 
hamburger America is finding itself squeezed by higher and higher 
taxes.
  We take their hard-earned money away on Friday in the form of taxes 
and give it back to them minus a beltway handling charge in the form of 
middle-class entitlements.
  The ``families first'' budget believes parents are more capable of 
deciding where and how to spend their resources than the Federal 
Government is.
  In most congressional districts, there are about 120,000 children 
eligible for the credit. That's $60,000,000 that would stay in the 
pockets of the working, tax-paying citizens. This would provide needed 
purchasing power for middle-class families to realize again the 
vanishing American dream.
  Some will say we cannot afford this tax relief.
  Well, it amounts to little more than 1 cent on the dollar over 5 
years. If this Congress cannot find that for Mom and Pop America, we 
had better reexamine our priorities.

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