[Congressional Record Volume 140, Number 145 (Friday, October 7, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 7, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                         CONTRACT WITH AMERICA

  (Mr. PORTMAN asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. PORTMAN. Mr. Speaker, 2 weeks ago I joined colleagues on this 
side of the aisle in signing a contract. A signed agreement with our 
constituents that we would do certain things.
  Perhaps one of the most important provisions of the contract was one 
which stated my commitment to ensure that the contract, as a whole, 
will result in a reduction, I repeat, a reduction, in the Federal 
budget deficit.
  I am proud of the fact that the contract provides for selected tax 
cuts to stimulate the economy. Because of the way the congressional 
budget office insists on analyzing the impact of these cuts using a so-
called static rather than dynamic model, it appears on paper that they 
will result in a $140 billion decrease in Federal receipts over 5 
years. No economist would believe that.
  Taking the capital gains tax cut and indexing proposal as an example. 
I am convinced from looking at the actual record of what happened to 
tax revenues when the capital gains cut was repealed in 1986, that 
restoring this incentive will increase revenue to the Federal 
Government. It is as simple as it is empirically true: this tax cut 
will provide a far stronger incentive for Americans to invest in our 
country's future, thereby growing the economy, creating jobs, and 
generating Federal revenue.
  But for those who insist on using the so-called static model to 
determine the impact on the national debt--let me provide some comfort. 
Along with my support for this and other tax cuts in the contract, I am 
also supporting, and have voted for, cuts in Federal spending that far 
exceed any potential revenue decrease. Indeed, this year I joined most 
of my Republican colleagues in supporting a budget proposal that 
included specific spending cuts that are roughly triple the size of the 
expected revenue decrease.
  The misstatements about the fiscal impact of this contract bring to 
light, more than ever, the need for us to restore the bonds of trust 
between Americans and their elected officials. There can be an honest 
debate over the merits of our proposals but let us stick to the facts 
as we go home.

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