[Congressional Record Volume 148, Number 7 (Tuesday, February 5, 2002)]
[House]
[Pages H129-H130]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PASS ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from Illinois (Mr. Weller) is recognized for 5 minutes.
Mr. WELLER. Mr. Speaker, we have an important vote in this body
tomorrow, an important vote that has a major economic impact. Our
Nation is in a recession. When President Bush became President, he
inherited a weakening economy. In fact, his White House housewarming
was essentially a weakening economy, and it turned into a recession.
Under the President's leadership, we passed a tax cut. We decided to
take 20 percent of the budget surplus that resulted from our efforts to
balance the budget and take that 20 cents on the dollar, the surplus,
and give it back to the American people in tax relief. That tax cut was
signed into law in June. By August, economists were noting that the
economy was beginning to get better, and then the tragedy of the
terrorist attack on September 11 occurred, the terrorist attack that
cost thousands of lives, and since September 11 has cost over a million
Americans their jobs.
This House has responded, and of course we twice have passed an
economic stimulus plan. I would note that on December 21 this House
passed and sent to the Senate an economic stimulus plan to revive our
economy. Unfortunately, the Senate failed to act. The bad news today
is, and it was announced by the Senate majority leader, that the Senate
was going to shelve any effort to revitalize this economy. That is bad
news.
Tomorrow we have another important vote that is going to have an
impact on the economy, and that is regarding a proposed tax increase
which Senator Kennedy, Senator Jeffords and others have begun
advocating. Some have been advocating that we suspend, repeal, or
delay.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore. Will the gentleman from Illinois suspend.
Members are reminded to refrain from referring to Members of the
other body by name, except as provided in clause 1 of Rule XX.
Mr. WELLER. Mr. Speaker, some have advocated repealing, delaying, or
killing the implementation of these tax cuts. That is bad news for the
economy. If Members look at what is in the tax cuts that are before us
today, what begins getting phased in in the tax cut, because we were
unable to do it all in the same year, are some pretty important
provisions.
One is our efforts to eliminate the marriage tax penalty. I think
Members agree that under our Tax Code, it is unfair that married
working couples pay more in taxes than two single people living
together. We essentially wipe out the marriage tax penalty in the
President's cut.
{time} 2000
We help small business by eliminating the death tax, which takes away
up to 55 percent of the family business when the founder passes on. The
Bush tax cut also included additional retirement savings benefits which
are phased in over the next few years. And, of course, we double the
child tax credit, currently $500, raising that to $1,000. And for those
in the top two tax brackets, the 39 percent and the 28 percent, we
lower those tax brackets from 39 to 35 and from 28 to 25. Those are all
in jeopardy if we go along with those who want to raise taxes by
suspending those tax cuts. I have yet to find a real-world economist
who tells us that it is a good idea to raise taxes during a recession.
Some of those who have advocated suspending, killing, repealing,
stopping the Bush tax cuts say it is really not a tax increase because
those tax cuts have not gone into effect yet; but they were the same
ones who a few years ago said that if you slow down the rate of growth
on Medicare, that it is a Medicare cut, so we are using the same
definition. The bottom line is suspending, stalling, repealing,
delaying the Bush tax cut is a tax increase.
I would note a couple of key things. The Secretary of the Treasury
was before the House Committee on Ways and Means today. When asked what
is the economic impact of a tax increase, of delaying, stalling,
repealing or killing the Bush tax cut, he said it would be devastating
to the economy. Over a million Americans have lost their jobs and more
would lose their jobs with a tax increase.
I would note on the rate reductions that 17 million small business
owners and entrepreneurs pay taxes under the individual income tax
rates, the two top brackets that are going to be phased in. Think about
it. Who is it that is going to bring about the revival of this economy?
It is not the major corporations, the big guys. It is the little guys
and gals, the entrepreneurs, the small businesspeople. Eighty percent
of those who pay taxes under the top two brackets, the two brackets
being phased in, are small businesspeople and entrepreneurs. We know
they generate the most jobs. We think as Members of this House about
our neighbors, if every small business on Main Street or Liberty Street
in my hometown of Morris, Illinois, hired one more worker, what that
would mean. And, of course, raising taxes on those small businesspeople
will make it much harder to provide those jobs.
From a consumer's standpoint, if you raise taxes, you take money out
of their pocket. When consumers have less money to meet the needs of
their families, they are not able to spend it in our local stores, in
our local businesses, buying products and services. When a consumer
buys a pickup truck, there is an autoworker who makes it. When a
consumer buys a PC, a personal computer or a laptop, there is a worker
somewhere that produces that; and a tax increase will make it much more
difficult.
Mr. Speaker, we have the opportunity tomorrow to go on the record:
Are you for continuing the tax cut, or are you for raising taxes?
Tomorrow this House will have the opportunity to vote for keeping the
tax cut or for raising taxes. It is a simple choice. Everyone will have
the opportunity to go on the record. I urge and ask bipartisan support
for preserving the tax cut and ensuring that we get this economy
[[Page H130]]
moving forward again and give hundreds of thousands of Americans the
opportunity to go back to work.
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