[Congressional Record Volume 141, Number 61 (Monday, April 3, 1995)]
[House]
[Page H4083]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              WE NEED TO CUT TAXES FOR THE AMERICAN FAMILY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Ohio [Mr. Chabot] is recognized for 5 minutes.
  Mr. CHABOT. Mr. Speaker, the minority leader, a Democrat, made an 
interesting statement the other day. Referring to the tax cut bill that 
we will consider this week he said, ``This issue,'' meaning taxes, 
``may be the best expression of the differences between the parties,'' 
and you know he is probably right. Republicans understand that the 
American people are overtaxed. We Republicans understand that the tax 
burden that the Government imposes on families and on senior citizens 
is becoming simply intolerable. We understand, and we are taking a 
first step to reduce that burden, to reduce taxes. That is a big 
difference from the last Congress when the Democrats were in charge, 
when President Clinton was able to ram through the biggest tax increase 
in American history.
  Well, there is a new majority here now, and I say, ``You're right, 
Mr. Minority Leader.'' This new majority leader does seek to cut taxes. 
We are tired of seeing our Government throwing money around and
 expecting working families to pick up the tab.

  The most devastating change in the Federal tax system over my 
lifetime has been that Government has shifted the tax burden so heavily 
onto the backs of working families. The tax code now discriminates 
against families. It penalizes marriage, and it burdens parents trying 
to care for their own children.
  In fact, during my lifetime, and I'm 41 years old--actually 42 now--
the Federal income tax burden on a family of four has increased by over 
300 percent as a share of family income. That is outrageous. It 
threatens the very foundation of the American dream. It denies 
opportunity to people trying to work their way up.
  The Government has been imposing a hidden tax increase on families 
every year by holding down the exemption that parents can take for 
dependent children. Right now a lot of you at home are probably working 
on your income taxes or thinking about it, and you probably know, in 
looking at the taxes all this year, that you can claim $2,450, almost 
$2,500 per person in your family as an income tax exemption. Well, if 
that rate had gone up to match inflation, that exemption would now be 
$8,000, $8,000, and we can only claim $2,450.
  Mr. Speaker, that is just not fair, but, despite that fact, there are 
some in this body who would begrudge parents even a $500 per child tax 
credit, and that is sad, and they call us mean spirited.
  Well, we ought to remember that it is not our money. We are proposing 
allowing families to keep a little bit more of the money that they 
themselves earn. We should not act like it is a gift or a handout; it 
is not. It is simple fairness.
  So, too, is the rollback we propose of the 1993 recordbreaking tax 
increase on senior citizens. Seniors were unfairly singled out for 
punitive treatment. We are going to undo that, and we are going to 
provide relief from the unwise earnings limit that insidiously taxes 
seniors who choose to continue working.
  We are also going to reduce the marriage tax penalty. We have just 
been through a long debate over outdated welfare policies that tear 
families apart, and we voted for reform there. Let us reform the tax 
system's ridiculous marriage penalty as well.
  Now opponents of tax reform who do not think that the American people 
are overtaxed argue that you cannot have take both tax relief and a 
balanced budget. Quite frankly, some of them do not seem to want either 
goal, judging from their votes, but I believe that we have got to send 
a message that Government just cannot continue to increase spending at 
the rate that it has. Government spending is out of control. That does 
not mean that taxes are too low. Quite the reverse. We just spend too 
much up here in Washington.
  We also need to reduce capital gains taxes so that we can create more 
jobs. There are still a lot of people in this country who need jobs. If 
we cut capital gains taxes, that will mean more jobs for Americans. The 
old class-warfare arguments for keeping capital gains rates high will 
not wash anymore. Productive investment, whether in a home or in job-
creating business is something that everyone should want to encourage, 
and nearly 60 percent of capital gains tax filers have adjusted gross 
incomes under $50,000, so it is not just tax breaks for the wealthy.
  So, please, let us not try to divide Americans up and pit one group 
against another anymore. We are all in this together, and, as a people, 
we are overtaxed. We need to cut taxes, we need to cut taxes on the 
American family, and we are going to do that this week.


                          ____________________