[Congressional Record Volume 144, Number 14 (Tuesday, February 24, 1998)]
[House]
[Pages H507-H508]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               TAX REFORM

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 21, 1997, the gentleman from California (Mr. Riggs) is 
recognized during morning hour debates for 5 minutes.
  Mr. RIGGS. Mr. Speaker, I rise today to suggest that we can increase 
take-home pay and improve retirement security in America by leading our 
country to a new level of freedom and opportunity for every American 
worker and taxpayer. I am not talking about raising the minimum wage. I 
am talking about reducing taxes further, especially on working-class 
Americans, those who are on modest incomes, those who have fixed 
incomes because they are wage earners and salaried workers. The first 
step in reducing taxes, as the gentleman from Illinois (Mr. Weller), 
who preceded me here in the well, suggested, is to eliminate the 
marriage penalty in the Tax Code. Then we should go on to pass the 
Middle Class Tax Relief Act and the Taxpayer Choice Act, both 
introduced by the gentleman from South Dakota (Mr. Thune), which would 
have the effect of raising the income levels for the 28 percent tax 
bracket. That would put more working Americans in the lowest tax 
bracket, the 15 percent tax bracket, and for those who are already in 
the 15 percent tax bracket, we would increase the personal exemption. 
The effect again, more take-home pay for working-class Americans.
  Let me be clear about one thing. I think I speak for almost all House 
Republicans when I say this. If the President has money for more social 
spending, then we have money for tax cuts. But also let me be clear 
about one other thing. That is we cannot have, we should not have, tax 
relief without real tax reform. We have to stop the IRS collection 
abuses. The best way to do that is to end the IRS as we know it. That 
is why I and many House Republicans have signed a pledge, a written 
pledge, and we have cosponsored legislation to sunset the Tax Code by 
the year 2001. This is a death sentence for the Tax Code and we hope 
would move the country in the direction of a fairer, a flatter, a 
simpler Tax Code and a tax system, one that is hopefully based on a 
single rate of taxation. But we do not have to wait until the year 
2001. What

[[Page H508]]

we could do right now is let taxpayers choose between paying a flat tax 
and the current system. You heard me right; they could simply, come tax 
day, choose whether to report their income and pay a flat tax on that 
income or to stay in the present system. We do not have to wait to 
2001. That is the Washington way of studying things to death; it is 
called paralysis by analysis back here in Washington.
  We could also and should also let taxpayers have the choice of 
investing a portion of their payroll taxes, their FICA contributions, 
into a directed IRA, an individual retirement account, so that they can 
earn a better return on their money than Social Security. To do that 
though we have to, as Mr. Smith just has suggested here, we have to 
take the Social Security Trust Fund off budget once and for all. We 
have to let the trust fund stay in, the surplus rather, stay in the 
Social Security, let the surplus stay in the Social Security Trust Fund 
so that it will continue to accrue and compound interest.
  We can do this. We can give workers a choice now again between a flat 
tax and the current system, between being able and having to put all 
their payroll taxes in Social Security or at least being able to put a 
portion in a directed IRA so that they can earn a better return than 
Social Security. The net effect is higher take-home pay, better 
retirement security and more freedom and opportunity for every 
American.
  With that, Mr. Speaker, I yield to the gentleman from Florida (Mr. 
Mica).
  Mr. MICA. Mr. Speaker, I am honored to represent the citizens of 
central Florida's 7th Congressional District. Our area and other 
central Florida communities were in the path of devastating tornadoes 
yesterday.
  Mr. Speaker, while our residences, our businesses and our communities 
can and will be replaced, the lives of an unprecedented number of 
wonderful human beings has been lost forever. I would like to extend my 
heartfelt sympathy to the families and friends who have lost loved ones 
in this terrible natural disaster.
  The people of my district are strong, determined, faith and family-
oriented. They will rebuild, they will heal their wounds, but they will 
never forget that night or those lost.
  Yesterday, I had the opportunity to again see the wonderful people of 
my district in central Florida come together. I saw volunteers, law 
enforcement, emergency management personnel, utility workers, Red Cross 
representatives, private contractors, State and local and Federal 
officials and employees working together.
  Mr. Speaker, I salute and pay tribute to the fine citizens of my 
State and district, and I want to take this opportunity to say thank 
you to my colleagues and others who have made expressions of concern 
and support during this difficult time.

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