[Congressional Record Volume 141, Number 62 (Tuesday, April 4, 1995)]
[House]
[Page H4163]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   THE TIME IS NOT RIGHT FOR TAX CUTS

  The SPEAKER pro tempore (Mr. Bilbray). Under a previous order of the 
House, the gentleman from Pennsylvania [Mr. Doyle] is recognized for 5 
minutes.
  Mr. DOYLE. Mr. Speaker, I was born and raised in, and now represent 
western Pennsylvania and I can tell you that in our region we remember 
the 1980's very well--we remember the huge tax cuts that were enacted 
under the guise of stimulating the economy, under the guise of 
increasing revenues, but the
 corresponding spending cuts needed to keep the budget under control 
never took place. What happened? In western Pennsylvania we watched as 
the Federal budget deficit quadrupled from 1 trillion to over 4 
trillion and brought on an economic downturn from which we have not 
recovered. Now we see that the new Republican majority in Congress 
wants to do it all again--enact huge tax cuts before we make the 
necessary cuts in spending. It sounds like the same mistakes made in 
the 1980's are coming back again in the 1990's.

  The Republicans want to enact a bill of massive tax cuts that they 
claim is designed to help the middle-class. Let it be perfectly clear 
that this is one Member who believes the best way to help the middle-
class, and everyone else for that matter, is to reduce our monstrous 
Federal debt. Since we are just beginning to make some progress in this 
area, I do not believe it is the right time for any tax cuts and I am 
confident that most of the country and the people in my district would 
agree that we must stay focused on reducing the deficit rather than 
exacerbating the problem by enacting tax cuts that we cannot afford.
  Still, when we actually examine this Republican plan, my opposition 
to it grows even stronger because there is no question in my mind that 
these proposed tax cuts will in truth, benefit the wealthiest Americans 
at the expense of the middle and lower classes! A Treasury Department 
study has shown that the wealthiest 1 percent of Americans will derive 
20 percent of the benefits under this bill. In fact, over half--51.5 
percent--of the tax benefits derived under the Republican proposal will 
go to benefit families with annual incomes over $100,000. This is 
plainly and simply--an outrage.
  Adding insult to this injury, the Republicans have made their ``tax 
credit for families with children'' nonrefundable. This means only 
wealthy families will be able to take full advantage of the credit 
while low and middle-income Americans lose out again. I heard one of my 
friends on the other side of the aisle say that the Contract With 
America wanted to make a statement that children have value, but with 
this provision, a family of three with one child, earning $15,000 a 
year would get a $90 credit, not $500. A family of five including three 
children, earning $22,000 a year would get $375 not $1500. I guess 
under the contract, a child's value is determined by the wealth of his 
or her parents.
  As I said before, I do not believe the time is right for tax cuts of 
any kind--but for the Republicans to propose a plan designed to help 
those who need it least while it hurts those who most need help is not 
only foolhardy--its reprehensible.
  I urge my colleagues to oppose this proposal, and I yield back the 
balance of my time.


                          ____________________