[Congressional Record Volume 141, Number 61 (Monday, April 3, 1995)]
[House]
[Page H4084]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            FAIRNESS OF THE AMERICAN TAX RELIEF ACT OF 1995

  The SPEAKER pro tempore (Mr. Kingston). Under a previous order of the 
House, the gentleman from Illinois [Mr. Ewing] is recognized for 5 
minutes.
  Mr. EWING. Mr. Speaker, I come here tonight to visit about what my 
colleagues have been talking about, the very important business that we 
had before us this week, the American Tax Relief Act of 1995.
  This is part of the Contract With America. It is a very important 
part in the last leg of our journey through the 100 days. The Contract 
With America was an effort to make improvements in our country and the 
way we operate its Government which will help protect the American 
dream. These elements of the contract should not have been partisan 
between the Republicans and the Democrats and I am thankful to say in 
many cases they have not been and we have received a number of 
supporters from the other side of the aisle.
  But unfortunately now that we come to the end of the contract period, 
I believe the success of the contract has caused the other side of the 
aisle to say, ``Can we block this final part of the contract, the 
American Tax Relief Act of 1995?'' It should not be partisan either and 
we should put aside the
 rhetoric about tax relief for the rich. That is class warfare. What we 
want is a fair tax schedule for every American, not rich, not poor, for 
every American. I believe that the American Tax Relief Act of 1995 is 
that fairness.

  We promised to bring it to a vote. Every Member will have an 
opportunity then to vote his conscience, so I would encourage 
bipartisan support for the rule to bring this bill to the floor.
  Now, why do I say it is fair? Because it covers all spectrums of the 
American scene. Certainly it is the middle-class tax relief that the 
Clinton administration never brought to the Hill but promised in the 
campaign.
  Why do I say that? The child credit certainly is very important to 
the middle class. The marriage penalty is very important to both 
spouses when they are working and trying to get ahead and improve their 
own American dream. Improving the IRA's for spouses and for working 
individuals. The adoption credit. The credit for families who take care 
of their own elderly members without expecting the State to pay for 
their care in nursing homes, and of course, repeal of the very unfair 
Social Security tax on middle-class senior citizens.
  Mr. Speaker, we hear so much about capital gains. Ladies and 
gentlemen, capital gains is not a tax break for the rich, though they 
may use it. It is a tax option for all Americans. We have ample proof 
that capital gains is used by the ``little people'' in America, 
certainly as much or more than it is by people with more means. In 
fact, the returns show that nearly 60 percent of those who used the 
capital gains benefit when it was available had incomes under $50,000. 
The argument that it will cut into revenues is just not accurate if you 
base that on past history.
  In fact, some years ago, CBO projected what would be the income level 
from the capital gains tax while we had a lower rate. Of course, we 
changed that and we are well below the projections of the CBO for 
revenues generated by the capital gains tax. In fact, if you look at 
the chart over a long period of time, you will see that capital gains 
revenues from assets sold, put back into the economy, have gone up when 
the rate is low and gone down when it is raised.
  We need to address the capital gains tax along with the rest of it. 
We need to get away from the partisan rhetoric about capital gains tax 
being for the rich.
  I take exception to that. I would insist that every Member go back to 
his district and check with his people, and I think he will get the 
right answer. Encourage support for the American Tax Relief Act of 
1995.

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