[Congressional Record Volume 143, Number 86 (Thursday, June 19, 1997)]
[House]
[Page H4077]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  2230
                          HOME-BASED BUSINESS

  The SPEAKER pro tempore (Mr. Cooksey). Under a previous order of the 
House, the gentleman from New Jersey [Mr. Pappas] is recognized for 5 
minutes.
  Mr. PAPPAS. Mr. Speaker, we are talking about common sense things 
here. Just a few months ago, many of my friends here know, in fact, 
everyone here, save for two, are cosponsors of the bill that I 
introduced dealing with the home office deduction. And they know who 
they are.
  I am very happy to see that in the new bill that the Committee on 
Ways and Means has been bringing forward includes, maybe not the exact 
language, but the concept of the home office deduction is included. So 
many individuals in our country are starting home-based businesses. 
Some people are employed in a corporation or maybe another small 
business. Yet on their own time they are putting their energy, their 
creativity to work, which is truly a part of the American 
entrepreneurial spirit in starting a home-based business. I am excited 
about the support that that has really across the country from all 
walks of life.
  Seventy percent of the new home-based businesses or small businesses 
that are started are started by women. And as my colleagues know, there 
are many single-parent families that are headed by women. And being 
able to have the home-based business with the deductions that other 
home-based businesses have had, I think, is fair. I am very encouraged 
to see so much support among my colleagues here tonight, most of them, 
and, hopefully, by the end of the night, all of them.
  I yield to the gentleman from Pennsylvania [Mr. Fox].
  Mr. FOX. To enter this discussion as part of this tax reform debate, 
all of my colleagues have agreed to be part of the Pappas legislation 
with the home office deduction. But I think that scores the important 
point about how most small businesses are the engine of the economy. 
Ninety percent of new jobs come from small businesses. So the Pappas 
legislation, along with other tax reforms, are what Americans really 
need. I believe that legislation is going to move forward, and we 
appreciate the leadership of the gentleman from New Jersey [Mr. Pappas] 
on that issue.
  I know the gentleman from Georgia [Mr. Kingston] has been working 
feverishly to make sure that we do get the new package. I believe what 
the gentleman from South Dakota [Mr. Thune] said earlier is true, the 
balanced budget together with tax reform is really going to be historic 
and make a difference in people's lives.
  The balanced budget is important because we are going to see 
reductions in the interest payments for college loans, in the interest 
payments for the car, and the interest payments for the home mortgage. 
That is the key to America.
  Mr. KINGSTON. Mr. Speaker, if the gentleman would yield, I wanted to 
make sure folks understand that under President Clinton in 1993, we 
experienced the largest tax increase in the history of the country, 
which I believe was in the figure of somewhere about $250 billion. We 
are talking about only, unfortunately, an $85 billion decrease in 
taxes. It does not take us back to the pre-Clinton days, if you will.
  Now what is interesting is, as we hear the cries of those that oppose 
the tax relief, is you would think we are giving away the farm. And it 
is so important for people to realize it is not our money. The United 
States Congress does not own money. We, through the force of 
Government, confiscate money out of people's pocket and we take it.
  All we are saying is, hey, let us take less of the middle-class hard 
earned dollars. That is all we are talking about. And yet people, you 
would think, are about to give away their first born child the way some 
of the opponents are fighting this tax relief.
  Mr. SOUDER. Mr. Speaker, if the gentleman would yield, I think his 
point about the home office deduction, as well as the point of the 
gentleman from Georgia [Mr. Kingston] about the general attitude of 
many in the other party is very perplexing.
  One time one parent had their son tell me what he had been taught was 
the difference between Republicans and Democrats; and that is that 
Republicans believe in big people and little government, and Democrats 
believe in big government and little people.
  I think President Clinton and some have moved beyond that, but there 
are many in this body who are still criticizing that. They do not seem 
to understand how jobs in America are created, how people can have 
choices. So many millions of American people through Amway, through 
Discovery Toys, through the many different things that have branched 
out, as well as new computer-based businesses at home, give not only 
mothers now the choice to stay home with their kids or women to be able 
to start a business, but now many men are working at home in different 
types of businesses.
  If we do not recognize these changes, we kill the engine of economic 
growth of how jobs are created. They are created not by government but 
by people looking for creative ways to combine the needs of their life-
styles and the needs of capital and the shortage thereof.
  With the Internet nowadays and with the ability to use phones and all 
the different ways, we need to make sure that the home office deduction 
and things like this reflect the ways of economic growth.

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