[Congressional Record Volume 145, Number 106 (Monday, July 26, 1999)]
[Extensions of Remarks]
[Pages E1652-E1653]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     FINANCIAL FREEDOM ACT OF 1999

                                 ______
                                 

                               speech of

                           HON. DOUG BEREUTER

                              of nebraska

                    in the house of representatives

                        Thursday, July 22, 1999

  Mr. BEREUTER. Mr. Speaker, this Member rises today to express his 
qualified support for H.R. 2488, the Financial Freedom Act. At the 
outset, this Member thinks that a tax cut is very good for the American 
people and for the economy, but he wants to make sure that it is the 
right size and that it focuses on middle income Americans.
  In particular, this Member also wants to see some of the future 
surplus funds used to reduce the national debt. By locking away some of 
the additional money for Social Security and Medicare, and by 
reasonable limits on the tax cut, we can devote more of any real 
surplus to retiring more of the national debt. At this Member's town 
hall meetings, he has found Nebraskans resoundingly in favor of 
reducing the national debt and many of his colleagues have told him 
that they have had the same experience. This Member is pleased to know 
that the manager's amendment to H.R. 2488 expresses the sense of 
Congress on its commitment to debt reduction and a national debt 
increase trigger which would annually block the across-the-board 
Federal income tax reduction if the amount of that debt interest outlay 
increases for total U.S. Federal Government debt from the amount of the 
previous year. This means there will be an iron-clad method to assure 
that there is a payment toward reducing the national debt.
  This Member is confident that the size of the tax cut will be reduced 
in conference. He thinks that the proposed reduction in taxes

[[Page E1653]]

over the next 10 years may be too big because of overly optimistic 
budget surplus projections. This Member fully expects that after 
conference with the Senate this tax cut will be reduced in size.
  In regards to inheritance taxes, this Member does not think the 
conference version of this tax bill should or will include a total 
elimination of the Federal inheritance tax in the case of ``super-
wealthy'' individuals. While this Member wants to give inheritance tax 
relief to family farms and family small businesses by accelerating the 
exemption level for Federal inheritance taxes to $1 million, he does 
not think it is appropriate at this time to eliminate the Federal 
inheritance tax altogether for very wealthy individuals. Hopefully, the 
complete phase-out will be eliminated in the House-Senate Conference. 
Some say the super-wealthy don't pay inheritance tax anyway--that they 
in part give it to charities or establish foundations to avoid taxes. 
Of course that is an exaggeration, but certainly we don't want to 
reduce such charity or beneficial giving by eliminating the inheritance 
tax on the super-wealthy. The American society would surely be harmed.
  This Member also notes that the legislation includes tax relief for 
private utilities with nuclear power plants in a state-deregulated 
environment. It is important to recognize that as states have taken 
action to deregulate, two unintended Federal tax problems have 
resulted. This bill addresses the nuclear decommissioning fund issue 
which affects private utilities. Unfortunately, the bill does not 
address the private-use issue which affects consumer-owned utilities. 
This Member hopes that during the conference, relief can also be 
provided to consumer-owned utilities which are also hindered by an 
outdated Federal tax law.
  On a different note, this Member is quite pleased that two particular 
provisions are included in H.R. 2488 which will increase rural housing 
opportunities. In fact, this Member has been quite active during his 
entire tenure in promoting the need for adequate, affordable rural 
housing. First, H.R. 2488 includes an increase in the Low Income 
Housing Tax Credit program from $1.25 to $1.75 per capita. The bill 
phases in the increase by 10 cents per year from 2000 to 2004 until it 
reaches $1.75 and indexes it for inflation thereafter. This provision 
will give states additional resources in providing rural housing 
throughout America. Second, H.R. 2488 accelerates the phase in of the 
private activity cap to $75 per capita beginning in 2000. This 
provision will give additional capital for financing home purchases by 
low and moderate-income homebuyers in the mortgage revenue bond 
program.
  Therefore, for the above reasons and others, this Member gives his 
qualified support to H.R. 2488, the Financial Freedom Act.

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