[Congressional Record Volume 147, Number 7 (Monday, January 22, 2001)]
[Senate]
[Pages S312-S313]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRAMM (for himself and Mr. Miller):
  S. 35. A bill to provide relief to America's working families and to 
promote continued economic growth by returning a portion of the tax 
surplus to those who created it; to the Committee on Finance.


                   Tax cut with a purpose act of 2001

  Sen. GRAMM. Mr. President, I am introducing legislation today with my 
colleague, Senator Miller of Georgia, to provide tax relief for 
America's families by returning a portion of the tax surplus to the 
working men and women who are responsible for creating it.
  Our proposal consists of the core elements of the plan that President 
Bush outlined during his campaign for the Presidency. There are three 
principle components: Lower income tax rates for all Americans, relief 
from the marriage tax penalty, and repeal of the death tax. The bill 
replaces the current tax rate structure with rates of 10, 15, 25, and 
33 percent. Lower income Americans get a larger percentage cut in 
rates, higher income Americans get a smaller reduction, but obviously 
this is a tax cut for taxpayers.
  The next provision of the bill begins the effort to repeal the 
marriage penalty. There is no reason in America that people who meet 
and fall in love should have to pay $1,400 a year in additional taxes 
as the price of getting married. Senator Miller and I are for love and 
marriage, and we don't think they ought to be taxed.
  The final major provision of the bill is repeal of the death tax. A 
death tax is double taxation in which people work their whole lives, 
build up a business or a family farm, and pay taxes on every penny they 
earn. Yet when they die, their children have to sell the business or 
the family farm in order to give the government up to 55 cents out of 
every dollar of its value. This is fundamentally unfair.
  Finally, since our President was elected three things have happened, 
and every one of them argues for this package of tax cuts. No. 1, the 
economy is weaker and investment is falling off. Secondly, our 
estimates of the budget surplus have gone up, not down. And lastly, 
that surplus is being spent at an unprecedented rate.
  We believe that Congress should enact the Bush tax plan, continue to 
pay down the debt, and resist the urge to spend the tax surplus so that 
we can return a portion of it to the working men and women who produced 
it.
  Mr. Miller. Mr. President, I am very pleased to join with Senator 
Gramm as a sponsor of this important piece of legislation, first 
because it is an opportunity to reach across party lines and really 
practice bipartisanship, not just talk about it. But I'm even more 
pleased to be a cosponsor because of the far-reaching consequences of 
this bill.
  Right now, our taxes have never been higher. Right now, our surplus 
has never been greater. To me, it's just common sense you deal with the 
first by using the second.
  Remember that old Elvis Presley song, ``Return to Sender.'' Well, 
that's what we want to do with this overpayment of taxes.
  As some of you know, I've been in politics for a long time, and I 
thought I had seen it all. But when I came to Washington last year I 
was not prepared for the shock of just how matter of factly Congress 
ate into the surplus, gobbled it up indiscriminately and without 
hesitation on both sides of the aisle.
  I couldn't believe it and it became clear to me that if we don't send 
this overpayment of taxes back to those who paid it, much of it will be 
frittered away, and I think most Americans have enjoyed as much of that 
as they can stand.
  Some of my colleagues talk of ``targeted'' tax cuts, and I respect 
their opinion, I respect them. But here's how I think about that: who 
are we to pick and choose and cull and select and single out among our 
taxpayers.
  Who are we to play ``eeny, meany, miney, mo,'' with them. All of them 
combined have paid more than it takes to run this government. And all 
of them combined should get a break from this oppressive tax structure 
of ours.
  This plan would make our tax code more progressive by cutting federal 
income taxes for people all across the income spectrum, and the largest 
percentage cuts would go to those Americans who earn the least. Under 
this proposal, six million families will no longer pay any federal 
income taxes at all. That's one out of five families with children.

  Any time I look at a tax cut, I always apply it to the family I grew 
up in: a single parent with two children. Under

[[Page S313]]

the current rate, that single parent begins paying taxes when she earns 
$21,300. Under this plan, she would not become a taxpayer until her 
earnings reach $31,300.
  Lower taxes gives Americans a better chance at a better standard of 
living. It can mean the difference between renting or buying a home. 
Today, it can be the difference between being able, or not being able, 
to pay your heating bill.
  No one in America should have to work more than four months out of a 
year to pay the IRS, and in peacetime, the federal government should 
never take more than 33% out of anyone's pay check.
  I also believe this tax cut could help provide some needed insurance 
against a long-lasting economic slow down. But most importantly, and 
why I'm here, is that I agree with President Bush that the taxpayers 
are much better judges of how to spend their own money than we are.
  When I was governor of Georgia, I was proud that in my state we cut 
taxes by more than a billion dollars. As a U.S. Senator, I'm looking 
forward to cutting taxes in this nation by more than a trillion 
dollars.
                                 ______