[Congressional Record Volume 141, Number 2 (Thursday, January 5, 1995)]
[Extensions of Remarks]
[Page E49]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                THE JOB CREATION AND WAGE ENHANCEMENT ACT

                                 ______


                            HON. BILL ARCHER

                                of texas

                    in the house of representatives

                       Wednesday, January 4, 1995
  Mr. ARCHER. Mr. Speaker, today I am proud to introduce the Job 
Creation and Wage Enhancement Act. This bill is an important component 
of the Contract With America.
  For the past several decades, Federal taxes, regulations, and 
mandates have increasingly limited job creation, suppressed wages, and 
stifled economic growth. This bill is an important step in reversing 
this trend.
  The Job Creation and Wage Enhancement Act would cut taxes and 
government redtape. It recognizes that the way to unleash the American 
economy is by lowering taxes and getting government out of the way.
  First, the bill would cut taxes on capital gains. Investors who sell 
a capital asset would have a 50-percent capital gains deduction. In 
addition, capital assets would be indexed for inflation, ending the 
unfair practice of taxing gains due to inflation. Taxpayers who sell 
their homes at a loss could deduct that loss as a capital loss.
  Second, the bill would increase depreciation deductions for business 
equipment. Currently, depreciation deductions do now allow businesses 
to recover the true economic cost of their business investment. The 
bill would increase depreciation deductions to approach the economic 
equivalent of expensing. The bill would also increase to $25,000 the 
amount a small business could expense annually.
  The bill would raise the current estate and gift tax exemption 
equivalent to $750,000. It would also clarify the home office deduction 
in instances where the taxpayer conducts essential administrative or 
management activities in his or her home.
  The bill also would empower taxpayers to allocate a portion of their 
tax liability to a public debt reduction fund. These funds would be 
strictly earmarked for national debt reduction. Under the law, Congress 
would be required to cut spending equal to the amount designated by 
taxpayers. If these cuts are not realized, an across-the-board 
sequester would be imposed.
  Significant regulatory relief would also be provided by the bill. 
Federal agencies would be required to assess the risks and cost of 
regulations they impose. Federal agencies would be forced to announce 
the cost of their policies and to complete regulatory impact analyses.
  Congress doesn't get off the hook either. Congress would be required 
to report the cost of mandates it imposes on State and local 
governments.
  The bill would reduce the paperwork burden imposed on American 
businesses by 5 percent and limit the government's ability to impose 
undue burdens on private property owners.
  Since I was first elected to Congress, I have been fighting for 
capital gains tax relief and other savings and investment incentives. 
This bill provides these incentives. It lowers taxes on investment and 
reins in government regulation to create additional jobs, raise wages, 
and recognize private property rights.
  Last November, the voters told us that they wanted lower taxes and 
less government. This bill, along with other bills in the Contract With 
America, provides just that.


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