[Congressional Record Volume 140, Number 137 (Tuesday, September 27, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 27, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]


                              {time}  1040
 
                    REPUBLICAN CONTRACT WITH AMERICA

  The SPEAKER pro tempore (Mr. Sangmeister). Under the Speaker's 
announced policy of February 11, 1994, and June 10, 1994, the gentleman 
from South Carolina [Mr. Derrick] is recognized during morning business 
for 3 minutes.
  Mr. DERRICK. Mr. Speaker, right outside, on the steps of the U.S. 
Capitol, Republicans are saying they are signing a contract to help the 
American people. Newt Gingrich is out there telling all who will listen 
this contract is a great plan for the people.
  But let me share with you some facts Newt won't tell you.
  The only people who will gain anything by this so-called contract are 
the Republican leadership and their wealthy contributors.
  This is one of those prearranged contracts for cash. Newt Gingrich 
and his wealthy political contributors tell Republican candidates for 
Congress exactly what to do.
  The Republican candidates sign a blood oath, a contract for cash, to 
do exactly what Newt and his merry band of wealthy contributors want 
them to do. Then tonight, the Republican candidates receive their big 
payoff.
  Tonight, Republicans will attend a big political fundraiser. If you 
are one of the Republican candidates who sold your future votes by 
signing Newt's contract today, then you can pick up a check tonight 
from Newt's wealthy contributors.
  So, it is simple. If you are a Republican candidate for Congress, 
your party bosses told you to sign away your independent voice. You 
have signed away the priorities and the best interests of your 
district. For selling your vote and your district in exchange for what 
is best for Newt and the Republican Party bosses, you will receive a 
big check tonight.
  How do I know this contract was written by Newt and his wealthy 
contributors? Newt explained the arrangement in his own words. Just 
listen to what Newt told his wealthy contributors about his so-called 
contract in a letter he sent out asking for money for his own political 
action committee, GOPAC. ``Will you help me draft the Republican 
legislative agenda for the 104th Congress?'' Gingrich asked, just 
before he asked for a financial contribution to GOPAC.
  Isn't it obvious that Newt is willing to sell his Republican 
legislative agenda to anyone who can afford to buy it?
  Let me read to you what Ellen Miller of the Center for Responsive 
Politics said about Newt's so-called contract for cash in a recent Roll 
Call article.

       If you really believed the fundraising appeal, it would be 
     auctioning off the legislative agenda. It's a cheap political 
     fundraising technique which exacerbates public cynicism about 
     politics.

  So Newt won't tell you the straight facts. He won't tell you this 
contract for cash benefits only the wealthy and the Republican 
leadership.
  And let me tell you what else Newt won't tell you. This contract, by 
conservative estimates, will cost $1.6 trillion over the next 7 years.
  Newt won't tell you where the money is coming from. That is a little 
detail he left out of the contract for cash.
  Well, common sense will tell you it won't come from Newt and his 
wealthy contributors. Remember, they wrote the contract.
  The $1.6 trillion will cost the hard-working middle income families 
in this country who are struggling to get by. They are not the ones who 
will get the tax breaks under the contract designed by Newt and his 
wealthy contributors.
  As noted in a recent Wall Street Journal story, the facts are 
different for what the Republicans want you to believe. Let me read you 
an excerpt on the Gingrich contract from that Wall Street Journal 
article.

       The biggest tax break would be a $500 tax credit per child 
     for all families making up to $200,000 a year. Since it's not 
     refundable, it wouldn't help low-income taxpayers. Thus, a 
     couple with four kids making $190,000 would subtract $2,000 
     from their taxes, but a couple with four kids making $19,000 
     would get nothing. The point of any children's allowance 
     ought to be to help families cope with financial burdens.

  As pointed out in this article, Newt's plan tries ``to camouflage 
goodies to upper-income taxpayers.''
  It will also come at the cost of senior citizens who daily face the 
difficulties of living on a fixed income.
  The Republican contract calls for tax cuts and balancing the budget 
that would mean eliminating $700 billion more in cuts in 5 years, 
according to Republican leader Dick Armey.
  What the Republicans won't tell you is these cuts will come from 
Social Security and Medicare.
  This is a contract to help the wealthy and hurt middle-income 
American families and our senior citizens. Now Newt and his wealthy 
contributors won't tell you that.
  I ask the Republican candidates who are there now: Have you read the 
fine print in this contract? Don't sell out your district and your vote 
to the Republican party bosses for cash. Read the fine print of this 
contract for cash and you will see the truth for yourself.

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