[Congressional Record Volume 141, Number 35 (Friday, February 24, 1995)]
[Extensions of Remarks]
[Page E422]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


 INTRODUCTION OF LEGISLATION TO EXCLUDE UNEMPLOYMENT COMPENSATION FROM 
                                TAXATION

                                 ______


                        HON. BARBARA B. KENNELLY

                             of connecticut

                    in the house of representatives

                       Thursday, February 23, 1995
  Mrs. KENNELLY. Mr. Speaker, Mr. Olver and I rise today to introduce 
legislation that would exclude from gross income unemployment 
compensation benefits.
  All the newspapers tell us that the economy is strong and that 
unemployment is down. Such headlines, however, mask a number of other 
things going on in the economy. First, in some regions of the country, 
including my home State of Connecticut, the recovery has lagged. In 
addition, the low unemployment rate belies the uncertainty and 
seemingly never ending corporate restructuring that continues despite 
the recovery. Second, while more Americans may have a job now than in 
the past few years, they are faced with paying income tax on 
unemployment compensation benefits at the same time they struggle to 
make ends meet.
  In these 100 days we will debate tax cuts of all kinds. And we will 
debate who will benefit and who won't. I happen to think not taxing 
unemployment compensation is just about the most important tax cut we 
could provide for American families. The old days of working for a 
corporation for life are gone forever. A good deal of the unease felt 
by American families today stems from living in this global economy 
where you don't know from day to day where you have a job despite good 
performance reviews. This isn't a tax cut we have to debate because on 
any given day, any American could find him/herself unemployed.
  We can't change the global economy but we can make commonsense 
changes to help every American breathe a little easier. I would urge my 
colleagues to cosponsor and support this legislation.


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