[Congressional Record Volume 141, Number 157 (Wednesday, October 11, 1995)]
[House]
[Page H9866]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               FACTS BEING OVERLOOKED ON PROPOSED TAX CUT

  The SPEAKER pro tempore (Mr. Fox of Pennsylvania). Under a previous 
order of the House, the gentleman from Tennessee [Mr. Duncan] is 
recognized for 5 minutes.
  Mr. DUNCAN. Mr. Speaker, there has been so much talk lately about the 
proposed $245 billion tax cut that some key facts are being overlooked 
or lost in all the political rhetoric.
  First, this is not an all-at-once cut. It is spread over 7 years. 
This comes out to $35 billion per year. This amounts to slightly less 
than 2 percent of Federal spending over this period. Federal spending 
has gone up almost 300 percent since 1980. The first Reagan budget was 
$581 billion. We are at a figure almost triple that now, and will be at 
more than triple that during this 7-year budget period; in other words, 
a 300 percent increase in Federal spending in the last 15 years, while 
inflation during that time has averaged about 3 percent a year, or 
roughly 45 to 50 percent over that period.
  Federal spending, in other words, Mr. Speaker, has increased at a 
rate roughly six times the rate of inflation over this period. Surely 
it is not asking too much for Federal bureaucrats to give back 2 
percent a year when they have had such whopping increases, and an 
almost 300 percent increase over the last 15 years.
  Federal taxes now take almost half of the average person's income. We 
are talking about the average person here, not the wealthy, but almost 
half of the average person's income when you consider taxes of all 
types: Federal, State, local, sales, property, income, gas, excise, 
Social Security, and so forth. When you consider the indirect taxes 
that we all pay in the form of higher prices because corporations do 
not pay any taxes, they have to pass their taxes on to the consumer in 
the form of higher prices for shirts, tires, shoes, food or everything 
that we buy.
  Second, most of this proposed tax increase, over 70 percent, would go 
to people making less than $50,000 per year. Somehow we never hear 
about that.
  Third, one of our leaders, the gentleman from Texas [Mr. Armey], has 
proposed a flat tax which would totally exclude all income under 
$38,000 for a married couple and $26,000 for a single person. In other 
words, most of the people I represent would be totally excluded from 
Federal income taxes. They would still have to pay other taxes, but 
what this really means is that the position of most Republicans is that 
we would exclude lower income people from Federal income taxes 
altogether. Somehow, we never hear about that either.
  Now, I voted for the $245 billion tax cut, this 2 percent tax cut. 
But I also happen to be one of 10 Republicans who voted for a so-called 
compromise budget which would have put off any tax cut until we get the 
budget balanced. I am willing to accept less, but we should not 
exaggerate this $245 billion tax cut all out of proportion just for 
partisan political purposes. We should not constantly call this a tax 
cut for the wealthy, when by far the majority of it goes to middle and 
lower income citizens.
  Our very biased national media is reporting this tax cut in a very 
biased, very unfair manner. I believe the people of this country know 
better how to spend their money, far better how to spend their own 
money, than the bureaucrats in Washington do. I know, too, that even 
with this proposed 2 percent tax cut, the Federal Government would 
still be spending over $1.6 trillion, rising to almost $2 trillion over 
this next 7 years, even if we pass this very modest 2 percent tax cut.
  The choice is simple: Are we going to side with the ordinary, hard 
working people and give them back 2 percent of their money, or are we 
going to side with the bureaucrats and say you really do not have to 
tighten your belts. You have had just a 300 percent increase over the 
last 15 years, but apparently that is not enough.
  Despite the lies, despite the demagoguery, despite the distortions, 
despite all the propaganda, I believe the people still want us to cut 
spending and cut taxes and give some of their money, their hard earned 
money, back to them.

                          ____________________