[Congressional Record Volume 144, Number 132 (Monday, September 28, 1998)]
[Senate]
[Page S11017]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        THE HOUSE-PASSED TAX CUT

  Mrs. HUTCHISON. Madam President, I want to speak for a few moments 
about the action that was taken by the House of Representatives last 
week in passing a tax cut for the middle-income, hard-working 
Americans. I commend the House for doing that and hope that the Senate 
will follow suit. I think it is very important that every year we give 
the taxpayers back something of what they have worked so hard to earn 
when we are looking at a surplus. That is, in fact, what we are looking 
at.
  You know, if I had said to my constituents 5 years ago, ``I'm running 
for the U.S. Senate, and I'm going to balance the Federal budget,'' 
most of them would have probably smiled benignly and thought, ``Oh, at 
least she is naive enough to think that she can make a difference.''
  Well, in fact, that is exactly what has happened. I did run saying 
that I wanted to work to balance the budget. I did not promise that I 
would come to Washington and do it alone, but I did say that this is 
something I thought our Congress should do. In fact, in the Congress 
that came in in 1994, we did make the promise and keep the promise that 
we would balance the Federal budget. In fact, this year, we will see 
that balanced budget.
  So then, of course, the question comes, What are we going to do with 
the new surplus? Of course, there are lots of ideas. Of what we think 
is going to be a $1.5 trillion surplus over the next few years, the 
lion's share should go toward making sure that Social Security is 
secure--no question about it. But an $80 billion tax cut every year, I 
think, will stimulate the economy, will do what is right by America, 
and will correct some inequities that we have found in the Tax Code--
the major portion of what the House passed is the bill that I 
introduced with Senator Faircloth last year and the year before; and 
that is to reduce the marriage tax penalty.
  In fact, if a policeman who makes about $33,000 a year in Houston, 
TX, marries a schoolteacher in Pasadena, TX, they have a penalty of 
$1,000, or a little more; and every person in those income categories 
in our country has the same. In fact, the average is about $1,400. Now, 
this is a young couple who gets married that wants to start saving to 
buy a new house or buy another car, have their nest egg, get started in 
life. And they get hit with a $1,000 penalty.
  That is not what was ever intended. But the Tax Code, because there 
are more two-income-earner couples now than when the last revision of 
the Tax Code was passed, in fact, has penalized those two-income-
earning couples, many of whom have two incomes because they are trying 
to make ends meet. So we are taking away a part of their quality of 
life. So I commend the House for saying it is time to correct that 
inequity and it is our highest priority. I am pleased that they passed 
the bill that Senator Faircloth and I introduced. It is our highest 
priority.
  It will also help ease the burden for small business owners and 
farmers and ranchers and others who have been able to accumulate 
something to realize the American dream; and that is, that they would 
give their children a better start than they had by increasing the 
inheritance tax--the death tax--exemption to $1 million starting 
January 1 of next year. I think that is the right thing to do. It will 
begin to ease the tax on the elderly. I think we should do that.
  We have already eased the capital gains tax. I hope we can eliminate 
that. But, Madam President, I think it is important that we, every 
year, make a little bit more progress in giving the hard-working 
Americans more of the money they earn back to them so they can decide 
how to spend the money for their families rather than having Government 
decide for them.
  I hope the Senate will pass tax cuts. It is a high priority. I think 
we can have two goals that are very clear: We are going to save Social 
Security; and we are going to give a little bit of the money people 
work so hard to earn back to them to get our Government in perspective.
  I think it is time that we lowered the opportunities for spending at 
the Federal level, let the States and local governments have more 
leeway, have families have better opportunities to spend the money they 
earn, and to make sure that Social Security is secure. I think those 
are the right priorities for spending that surplus. I hope the Senate 
will follow suit.
  Thank you, Madam President.
  I yield the floor.
  Mr. DORGAN addressed the Chair.
  The PRESIDING OFFICER. The Senator from North Dakota is recognized.

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