[Congressional Record Volume 149, Number 22 (Thursday, February 6, 2003)]
[Senate]
[Page S2048]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TAX CUTS AND JOBS

  Mr. HATCH. Mr. President, I rise today to make a suggestion about how 
we can work more effectively to get the engine of our economy running 
on all of its cylinders again.
  We have heard a great deal this week about the current state of our 
economy and whether the President's growth plan, which he released this 
past Monday, will be effective in putting Americans who have lost their 
jobs back to work. Many of my colleagues on the other side of the aisle 
are questioning whether there is a link between high taxes and jobs.
  The current debate has featured quotations and commentary from some 
of the most prominent economists and tax experts in America. Both sides 
rely on knowledgeable and learned authorities to make their case that 
the Bush growth plan will or will not be effective in creating jobs. 
And, as the old saying goes, you can find an expert to prove any point 
you wish.
  But too often, I think we tend to overlook the wisdom of people on 
the front lines of the U.S. economy. Sometimes these people can provide 
answers with clarity and common sense.
  A few months ago, a small business owner in Moab, UT, Jeffrey Davis, 
sent me a very heartfelt letter, and his sentiment has stuck in my 
mind. I want to share it with my colleagues here today.
  Moab is a relatively small town in southeastern Utah whose economy is 
greatly dependent on tourism. Within just a few miles of this town lies 
some of the most spectacular scenery on Earth. However, the people who 
make Moab their home face the same economic realities with which 
everyone else in America deals.
  Mr. Davis owns and operates a restaurant in Moab, and over the years 
he has tried his hand at a few other retail businesses as well. From 
his letter, it is obvious he has faced both good times and bad times 
with his businesses. Unfortunately, the recent trends have not been 
positive. He currently employs between 13 and 20 people, depending upon 
the season, and he worries that these people, who depend on him, might 
find themselves out of a job if conditions do not soon improve. Mr. 
Davis understands all too well the pressures that face all small 
business owners.
  In his letter to me, Mr. Davis makes a point that is extremely 
important to the current debate on taxes and jobs--that if high taxes 
force the small business person to go out of business, the U.S. 
Government will not get any tax money.
  As simple and obvious as that concept sounds, I fear it might be one 
who is sometimes lost on those of us in Congress. Taxes and other 
government requirements have a real cost on small businesses in this 
country, many of which are right at the edge of viability. In the case 
of businesses in many towns in Utah and around the country, things have 
been really tough for the past couple of years. The one-two punch of a 
slowing economy and the greatly reduced travel resulting from the 
events of September 11 have moved many thousands of small businesses in 
Utah and around the Nation right to the edge of going out of business. 
This is especially true of businesses in towns that depend heavily on 
tourism, such as Moab.
  Tax cuts, such as the President is proposing, can make the difference 
between a small business surviving and it closing its doors. We must 
keep in mind that a high percentage of small businesses pay taxes at 
the individual rates.
  As we debate the best way to deal with our slow recovery over the 
next weeks, we will surely hear a great deal more from economists and 
experts on the macro effect of various plans and how gross domestic 
product will be affected by enacting one idea or another.
  These opinions and analyses are a very much needed and welcome part 
of the political process. But I urge my colleagues to not forget to 
also consider the wisdom of those back home in their States, who, like 
Jeffrey Davis of Moab, UT, face the real world effects of our 
decisions.

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