[Congressional Record Volume 145, Number 78 (Thursday, May 27, 1999)]
[Senate]
[Pages S6312-S6313]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself and Mrs. Feinstein):
  S. 1160. A bill to amend the Internal Revenue Service Code of 1986 to 
provide marriage penalty relief, incentives to encourage health 
coverage, and increased child care assistance, to extend certain 
expiring tax provisions, and for other purposes; to the Committee on 
Finance.


              tax relief for working americans act of 1999

  Mr. GRASSLEY. Mr. President, today I am being joined by Senator 
Feinstein in introducing the ``Tax Relief for Working Americans Act of 
1999''. Congresswoman Nancy Johnson is introducing companion 
legislation in the House. We're here today to declare victory in the 
debate over whether or not we should have significant tax relief for 
the American people. The President and most congressional Democrats 
have now joined Republicans in support of cutting taxes. The question 
now is not whether there should be tax cuts, but what kind, and how 
much. I can't think of a better problem to have.

  With our core tax cut plan, we're proposing a major first step in 
sending hard-earned dollars out of Washington and back to the taxpayer. 
I support an across the board tax cut. But, I'm afraid that if we do 
that first, we won't have any money left over to pay for tax cuts that 
people are telling me they really want, like addressing the marriage 
penalty, providing health care tax relief, and more help for education. 
They want these problems in the tax code fixed first. An across the 
board cut won't fix these problems, it'll only compound them. That 
isn't fair. And we're saying fairness should come first.
  The President only offered modest tax cuts, along with a new 
retirement savings proposal that nobody understands, and many question 
whether it will work. And then, he wants to raise other taxes to pay 
for it. The President wants it both ways. He wants to be able to take 
credit for a tax cut on the one hand, while he's raising taxes on the 
other. We deserve what we get, if we let him get away with the double 
talk we all know so well.
  We have two alternatives. One is to push for an across the board tax 
cut first, and let the President and some in Congress play the class 
warfare card they play so well. And in the end, we probably end up with 
no tax relief. Senator Feinstein and I are saying that we should take 
the initiative and push for major tax relief that people really want 
and both Republicans and Democrats support. Our package will provide 
close to $300 billion in tax relief over ten years. I, for one, view 
this as a very strong starting point in determining how the coming on-
budget surplus will be used.
  Among other things, our bill will provide tax relief for senior 
citizens, those who are married, those who need to buy their own health 
insurance, and those who purchase long-term care insurance. Moreover, 
it will include provisions to ensure that parents who make use of 
education or child care tax credits are not hurt by the Alternative 
Minimum Tax. We also hope to improve the living standards of Americans 
through tax relief for urban revitalization, rural preservation, rental 
housing, and economic growth. We also provide needed tax assistance to 
farmers by shielding them from the Alternative Minimum Tax, and 
allowing them to set up special tax-deferred savings accounts to help 
them weather the ups and downs of farming. And, we help improve the 
environment by extending the production tax credit for wind energy and 
expanding the credit for biomass. I've strongly supported both of these 
alternative energies since taking the lead on them back in 1992.
  We think this package is a good start in the process of delivering 
tax relief to the American people, and I urge my colleagues to join us 
in this effort.
  Mrs. FEINSTEIN. Mr. President, I rise, along with my colleague from 
Iowa, to introduce the Tax Relief for Working Americans Act--what I 
consider to be a ``fair share'' tax plan. This bill, while protecting 
our Social Security and Medicare needs, will also allow all Americans 
to benefit from our economic prosperity.
  The American people are responsible for the more than $4 trillion in 
budget surpluses over the next 15 years, so it makes sense to give them 
some needed and deserved tax relief.
  The Tax Relief for Working Americans Act is a sensible and moderate 
bill that provides needed tax relief for working families. It does so, 
moreover, in a fiscally responsible manner which protects Social 
Security and Medicare. This tax plan is estimated to provide tax relief 
of $271 billion over ten years, fitting within the budget framework set 
out by the President to protect Social Security and Medicare.
  The legislation will provide relief to 21 million working couples who 
incur the marriage penalty by increasing the standard deduction to put 
them on equal footing with unmarried couples. A married couple in the 
28% bracket, for example, will save $392.
  It includes tax incentives for the over 30 million Americans who 
purchase their own health insurance or who pay more than 50% of their 
employer provided health care insurance. This means a family that earns 
$60,000 and pays $4,000 a year for health insurance will receive a tax 
credit of $2,400.

  And it will raise the Social Security Earnings test to $30,000, so 
that the 1.1 million seniors between the ages of 65 and 69 who earn 
more than $15,500 would be able to keep more of their hard earned 
dollars. For a 67 year old secretary who earns $30,000 a year this 
would mean she will save nearly $5,000.
  Under this legislation, millions of Americans who struggle to afford 
decent child care, will receive increased benefits from the Dependent 
Care Tax Credit. The credit will increase from 30% to 50% by 2004 and 
millions more will qualify for the maximum credit. When fully in 
effect, a family which earns $30,000 and spends $5,000 a year on child 
care for their two children will receive a $2,400 tax credit which 
should eliminate any federal tax liability.
  This legislation will also help to expand our economy by making 
permanent the Research and Development tax credit. Research and 
development

[[Page S6313]]

is the backbone of our new technology driven economy. It is creating 
millions of high wage, high skilled jobs. The R&D credit has been 
extended 9 times since 1981, but it has been allowed to expire 4 times 
during that period. Now is the time to make it permanent.
  There are also other important provisions in this legislation to 
promote long-term care, create more affordable housing, make education 
more affordable, and to help our farmers.
  I believe that this tax plan is one which can, and will, receive 
broad bipartisan support. It is a tax plan which Congress can pass and 
the President can sign. I urge my colleagues to work with the Senator 
from Iowa and myself, and to pass the Tax Relief for Working Americans 
Act.
                                 ______