[Congressional Record Volume 141, Number 175 (Tuesday, November 7, 1995)]
[House]
[Page H11790]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                CONGRESSIONAL LIBERALS VOICE BOGUS CLAIM

  (Mr. HERGER asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. HERGER. Mr. Speaker, liberals here in Congress and in the White 
House love to claim that Republicans are raising taxes on the poor 
because of our efforts to reform the earned income tax credit. This 
claim is bogus and is an outright scare tactic.
  EITC was set up in the 1970's to help working, poor families. It was 
designed to be a tax refund program. Since then, EITC has turned into a 
welfare program. In fact, only one-quarter of the $21 billion spent on 
EITC actually go to tax refunds. The other three-fourths go to welfare 
grants. The program has expanded far beyond its original intent.
  In the last 10 years, spending on the program has increased 1,220 
percent. This is unsustainable growth.
  Mr. Speaker, the American people need to know that we are not raising 
taxes on poor people. Every family covered by EITC will receive the 
$500 per-child tax credit and it is an outright fabrication to suggest 
that reforming EITC is a tax increase.

                          ____________________