[Congressional Record Volume 145, Number 105 (Thursday, July 22, 1999)]
[House]
[Pages H6345-H6346]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    REVIEW OF FINANCIAL FREEDOM ACT

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Maryland (Mr. Ehrlich) is recognized for 5 minutes.
  Mr. EHRLICH. Mr. Speaker, over the last 24 hours we have sure heard 
it all from the floor of this House. The usual class warfare, us versus 
them; the usual class envy rhetoric concerning the rich. And how many 
folks watching the national TV right this second making $40,000 a year 
with a couple of kids know that they are rich, or making $50,000 a year 
with four children and believe they are rich? Very few, I suspect.
  We have seen revisionist history, Mr. Speaker, in how we got to a, 
what seemed to be just a few years ago, permanent deficit situation in 
this country as the minority party controlled this House for 40 years.
  What we saw most of all, Mr. Speaker, however, was a great sense of 
frustration because the Speaker and this majority have moved a bill to 
return money to the people, to the pockets of the people, a 
comprehensive package that rewards married couples, senior citizens, 
working families, the self-employed schools, and distressed 
neighborhoods.
  The Republican tax relief plan improves the lives, Mr. Speaker, of 
all Americans. One of the most unfair provisions in our present tax 
code, Mr. Speaker, is its treatment of married couples. They pay more 
in taxes simply because they choose to get married. The Republican plan 
ends this unfair so-called marriage penalty. It allows married couples 
to claim a standard deduction for a single taxpayer to the benefit of 
42 million taxpayers.
  Families with single people also benefit. The Republican tax plan 
provides for a phased in 10 percent deduction in individual rates over 
the next 10 years. Taxpayers know best how to spend their own money. 
Washington needs to get out of the way and let taxpayers control their 
own money. That thought is why many of us were sent to Washington in 
the first place.
  The cost of education continues to rise. The Republican plan provides 
meaningful tax relief. First, our legislation increases from $500 to 
$2,000 the contribution limit for education savings accounts.
  Second, the bill permits private universities to offer prepaid 
tuition plans and exempts the earnings from all prepaid plans from 
Federal taxation, a real good idea.
  Third, the plan eliminates the 60-month limitation on the student 
loan interest deduction. The Republican plan also addresses the basic 
brick and mortar issues associated with quality education. Unlike the 
President's bad idea to take general fund revenue and build public 
schools, our public school construction initiative makes permanent 
statutory changes so that State and local governments issuing public 
school construction bonds can more easily comply with the appropriate 
rules.
  Similar to education, the cost of health care keeps rising. The 
Republican plan makes health care and long-term care more affordable 
and accessible to all Americans. Of particular significance, our plan 
allows a 100 percent deduction for health care premiums and long-term 
care insurance premiums. It is about time.

[[Page H6346]]

  Our proposal also recognizes the financial hardships associated with 
caring for elderly members at home. We provide for an additional 
personal exemption for these taxpayers. Likewise, the Republican plan 
allows employers to offer long-term care insurance and cafeteria plans.
  Finally, our plans expand the availability of medical savings 
accounts.
  Mr. Speaker, the Republican plan properly buries the death tax that 
forces many Americans to pay the IRS 37 to 55 percent of their savings 
when they die, immoral, inefficient, wrong. It is time we got rid of 
it. This bill is the first step.
  Finally, Mr. Speaker, the Republican plan also provides significant 
tax incentives for families and businesses in distressed neighborhoods. 
The family development accounts encourage low-income families to save a 
portion of their income by allowing tax-free withdrawal for education 
expenses, a first home, a business start-up, or certain medical 
expenses.
  Mr. Speaker, hardworking Americans deserve the benefits that the 
Republican tax relief plan offers. It is imperative that this Congress 
ensure these benefits become a reality. The people deserve it. The 
workers deserve it. The taxpayers deserve it.

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