[Congressional Record Volume 141, Number 10 (Wednesday, January 18, 1995)]
[Senate]
[Page S1020]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        MIDDLE-CLASS TAX RELIEF

  Mr. GRAMS. Thank you, Mr. President. Mr. President, yesterday I 
testified before the House Ways and Means Committee on an issue of 
great importance to me: The Minnesotans, whom I represent in the U.S. 
Senate, and every overburdened American taxpayer. The issue is middle-
class tax relief.
  Two years ago while serving in the House, I introduced the idea of a 
$500 per child tax credit in my families-first legislation, coauthored 
by Congressman Tim Hutchinson, of Arkansas.
  Our arguments then were simple: Taxes were too high; the burden of 
tax increases fell disproportionately on the middle class; and big 
government was forcing more workers out of the working class and into 
the welfare class.
  Consider the facts: Most middle-class American families pay more in 
Federal taxes than they spend for food, clothing, transportation, 
insurance, and recreation combined.
  Since World War II, Federal income and payroll taxes have increased 
from 2 to 24 percent of the median income of a family of four. Despite 
this, while Congressman Hutchinson and I were making the case for tax 
relief, Congress was in the midst of passing the 1993 Clinton tax 
proposal--the largest tax increase in American history.
  Far from providing tax relief for the middle class, the Clinton 
proposal actually increased their tax burden, making it more difficult 
for the middle class to care for themselves and for their children. The 
message from Washington was clear: Give us your money and we will solve 
all your problems.
  But the American voters said ``no'' to this message in November and 
delivered one of their own. And that was ``let us keep our money.''
  Today, the arguments for tax relief have not changed. Taxes are still 
too high, the tax burden still falls too heavily on the middle class. 
The big difference, however, is that this year--with this Congress--we 
can do something about it.
  We promised tax relief, and now we have to deliver. And as I said in 
my testimony yesterday, we have to do it for what country western 
singer Garth Brooks calls the ``hard hat, six-pack, achin'-back, flag-
wavin', fun-lovin' crowd,'' because these are the people who work hard 
every day, care for their children, pay their bills and finance the 
growth of big government with their hard-earned tax dollars. For years, 
they have watched their paychecks grow smaller while Washington grows 
bigger. And last November they spoke out loud and clear. They voted for 
change in the way things were done in Washington. They voted for less 
government and lower taxes. They voted for a balanced budget. And, yes, 
they voted for a $500 per child tax credit.
  But even now, the old barons of Washington and the long-time 
defenders of big government still do not get it. They do not understand 
that every dollar Washington spends is one less dollar that taxpayers 
can spend. And worst of all, they do not understand that it is not the 
Government's money to begin with. They just do not get it. But the 
people do, and that is what counts.
  And so what are we going to do about it? Well, the answer is simple: 
Let the taxpayers keep their money. And the way to begin this process 
is to pass the families first $500-per-child tax credit.
  The families first tax credit means $25 billion annually to taxpayers 
across America--$500 million to Minnesota alone. And 90 percent of the 
benefits of the tax relief goes to families making annual incomes of 
$60,000 or less.
  It is the largest, fairest, most progressive way of providing tax 
relief for families, and it lives up to our Government and our 
commitment of reducing the size of the Federal Government. By cutting 
Government spending to pay for middle-class tax relief, families first 
is the strongest response that we can send to the American people that 
we heard their message, that we accept their mandate, and we will 
deliver on our promises.
  Mr. President, what we do in this Congress will be judged by the 
middle-class Americans who voted for us last November. And, Mr. 
President, what we do in this Congress, in this Chamber, will determine 
the makeup of the next Congress. Republicans made a commitment to the 
taxpayers, and I urge my colleagues to uphold that commitment as we 
continue to fight for the middle class and as we fight for fairness.
  I yield back the floor.
  

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