[Congressional Record Volume 141, Number 63 (Wednesday, April 5, 1995)]
[House]
[Pages H4331-H4332]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                  OTHER PROVISIONS IN GEPHARDT PACKAGE

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Delaware [Mr. Castle] is recognized for 5 minutes.
  Mr. CASTLE. Mr. Speaker, I would like to go back to about an hour ago 
on the floor of the House of Representatives when the minority leader 
presented a motion to recommit with respect to the tax cut package 
which went through.
  He stated specifically and had a placard, a board which showed that 
this bill does four things and that is all he spoke to. He says it 
substitutes $95,000 for the threshold level for the family tax credit. 
The retirement changes are lowered only for Members of Congress. It 
closes a loophole of renouncing American citizenship and avoiding 
taxes. It includes the Browder-Castle language with respect to 
thresholds that would have to be met and other matters pertaining to 
being able to balance our budget.
  Quite frankly, that was a very attractive package to me as I listened 
to him and it gave me a great deal of pause as to whether or not I 
should go ahead and support that because this does encompass some of 
the things that had concerned me in this bill, as it went along.
  He mentioned one thing at that point that caught my attention, 
though. He says this is 16 pages. At some point in the middle of that 
he said that. We got a copy of this and have checked it out since that 
time.
  I think to establish the Record, we need to show here, Mr. Speaker, 
exactly what else was in that 16 pages that was not mentioned by Mr. 
Gephardt here tonight.
  The provisions which he filed in the 16 pages eliminate the tax 
credit to reduce the marriage penalty. It eliminates the American dream 
savings account or the IRA. It eliminates the spousal IRA. He did not 
mention that he eliminates the child tax credit altogether in the first 
year then reduces from $500 to $100 in the next 2 years and raised it 
to $300 thereafter. He also failed to mention that he reduces the 
income eligibility for the child tax credit from $200,000 to $60,000.
  Mr. WISE. Would the gentleman yield?
  Mr. CASTLE. I will yield very briefly.
  Mr. WISE. There are several statements. For instance, on your last 
one, you are not probably representing that.
  Mr. CASTLE. Let me reclaim my time and finish.
  Mr. WISE. If the gentleman is----
  Mr. CASTLE. Reclaiming my time.
  Mr. WISE. If the gentleman is going to attack the minority leader, 
then he ought to yield.
  Mr. CASTLE. It eliminates the repeal of the tax on social security 
benefits. It eliminates the tax coverage for long-term insurance, 
accelerated death benefits and long-term care benefits. It eliminates 
the capital gains tax reduction. It eliminates the neutral cost 
recovery provisions. It eliminates the repeal of the alternative 
minimum tax. It eliminates the taxpayer debt buy-down. It eliminates 
the small business expensing. It eliminates the elderly care tax 
credit. It eliminates the tax credit for adoption. It eliminates the 
[[Page H4332]] increase in social security earnings test.
  In other words, Mr. Speaker, what this piece of legislation did or 
this attempt on the motion to recommit was a lot more than the four 
items which were mentioned here. Quite frankly, this is one Member who 
was influenced by what he said and what he put on that
 board and would be tremendously impacted by that, perhaps even at the 
sake of a vote and I think that is a real problem in the House of 
Representatives.

  Quite frankly, I have a problem with motions to recommit anyhow. They 
come in at the last minute. You have 10 minutes to consider them. This 
is a general problem, I am speaking to now. Unfortunately, sometimes 
these things can try to get slipped by in the course of oral testimony 
which is given here usually when the chambers are filled and it makes 
it very, very difficult.
  I would like to make this a part of the Record. I did not put this 
together. It was done by the Ways and Means people. If somebody wants 
to try to split hairs and take it apart, fine, that could be done.
  Mr. SOLOMON. Would the gentleman yield?
  Mr. CASTLE. I will yield to the gentleman from New York.
  Mr. SOLOMON. I would just like to say to the gentleman, he is 
absolutely correct. I even spoke to some Members of the Democratic 
party on that side who had the sense to vote against that motion to 
recommit and when they found out that this was in there, they were just 
outraged that they would be misled this way. I just thank the gentleman 
for bringing this to Members' attention.
  Mrs. SMITH of Washington. Would the gentleman yield?
  Mr. CASTLE. I will yield to the gentlewoman from Washington.
  Mrs. SMITH of Washington. I was really confused during the vote, but 
am I to understand that when people file their tax return next year 
that there was another provision in there, too, that would have 
eliminated a child tax credit in the first year? I do not think he said 
that either. He then reduces it from 500 to 100 the next 2 years and 
raises it back. Otherwise, he basically eliminated any benefit. I do 
not recall that that was made a point. Did I miss that?
  Mr. CASTLE. Reclaiming my time, the gentlewoman is absolutely 
correct. You did not miss it. It was not made a point. It does 
eliminate it for one year. It is a lower level altogether to begin 
with. He did state it was a lower income level, but there was some 
question about what that particular level was but clearly the other 
omissions were not stated.
  Mrs. SMITH of Washington. So when they file their tax returns, if 
they have two kids next year, right now they would have $1,000 they 
could keep to buy a washer or dryer or something for their family. 
Under this, they would have to wait for 2 years out, hopefully, and 
then it would be reduced.
  Mr. CASTLE. That is correct the way it has been interpreted.
  Mrs. SMITH of Washington. That would have been wrong. He would have 
been eliminating the children's tax credit.
  Mr. CASTLE. Mr. Speaker, may I ask unanimous consent to have this 
submitted as part of the record?
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman?
  There was no objection.

    What Gephardt ``Forgot'' to Tell Us About His Motion to Recommit

       Page 3 (bottom) ``strike subtitle A of title VI of the bill 
     (other than section 6101).''
       This eliminates the tax credit to reduce marriage penalty.
       This eliminates the American dream savings accounts.
       This eliminates the spousal IRA.
       Gephardt failed to mention that he eliminates the child tax 
     credit in the first year, then reduces it from $500 to $100 
     for the next two years and raises it to $300 thereafter (see 
     page 4).
       He also failed to mention that he reduces income 
     eligibility for the child tax credit from $200,000 to $60,000 
     (representing it as $95,000).
       *Page 5 (top) ``strike subtitles B, C, D, and E of title 
     VI.''
       This eliminates the repeal of the tax on Social Security 
     benefits.
       This eliminates the tax preference for long-term insurance, 
     accelerated death benefits and long-term care benefits.
       This eliminates the capital gains tax reduction.
       This eliminates the neutral cost recovery provisions.
       This eliminates the repeal of the alternative minimum tax.
       This eliminates the taxpayer debt buydown.
       This eliminates small business expensing.
       This eliminates the elderly care tax credit.
       This eliminates the tax credit for adoption.
       This eliminates the increase in Social Security earnings 
     test.
     

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