[Congressional Record Volume 149, Number 68 (Thursday, May 8, 2003)]
[House]
[Pages H3832-H3833]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 SUPPORTING JOBS AND GROWTH ACT OF 2003

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Texas (Mr. Hensarling) is recognized for 5 minutes.
  Mr. HENSARLING. Mr. Speaker, I rise today in strong support of H.R. 
2, the Jobs and Growth Act of 2003. Now that we have won the battle for 
Baghdad and liberated the people of Iraq from despotism, it is time to 
win the battle for jobs and liberate the American family from economic 
uncertainty.
  American families need more job opportunities and they need them now. 
The Democrats' plan for the American family is the same that it has 
been for 50 years, tax and spend, tax and spend, in other words, to 
take a larger slice of the family income pie. Our plan, the Republican 
plan, is to grow the size of that family income pie by growing the 
economy. Democrats have a plan to create more government. Republicans 
have a plan to create more jobs. The Republican plan will create 1.2 
million new jobs by the end of 2004. The Democrat plan grows the 
government and erases tax relief, increasing taxes by $128 billion, 
dramatically threatening our economic recovery.
  Mr. Speaker, Americans want more jobs, not more government. When 
economic growth occurs, businesses generate greater profits, more 
people go to work, they get better jobs, and they get better wages. But 
to encourage individuals and families to risk their time, to risk their 
savings on that new software idea, a transmission repair shop or any 
other enterprise, they need tax relief. Our plan provides it.
  Mr. Speaker, we have historical evidence that tax relief works. Each 
time our Nation has significantly reduced income tax rates, economic 
growth has followed. After President Reagan lowered tax rates in the 
1980s, real economic growth averaged 3.2 percent per year and Federal 
revenues actually increased by 20 percent.
  When President Kennedy reduced marginal rates in the 1960s, we 
experienced several years of 5 percent economic growth.
  The same is true of tax relief during the 1920s, where economic 
growth averaged 4.3 percent. The Democrats criticize the Jobs and 
Growth Act because they claim tax relief causes deficits. But as I just 
explained, history shows us that tax relief and business incentives can 
grow our economy and create jobs. That is the way to fight deficits. 
And while the Democrats protest job-creating tax relief on the one 
hand, they want to bust the budget by increasing Federal Government 
spending by over $1 trillion on the other.
  The tax relief proposed in the Republican Jobs and Growth Plan 
amounts to just 2 percent of the budget. In other words, 98 percent of 
the deficit problem is on the spending side, the Democrat side. No 
Democrat in Congress should be able to look the American people in the 
eye, claim to care about deficits, yet propose to spend billions and 
billions more on Federal programs.
  The Democrat plan guts the family budget. It is wrong. It is unfair, 
and does nothing to create jobs. Democrats claim to love jobs. They 
just seem to hate those who create them.
  Now, Mr. Speaker, before becoming a Member of Congress, I was a small 
businessman for 10 years. And small

[[Page H3833]]

business is the job engine of America, creating two out of three new 
jobs in our Nation. While consumer spending has grown over the last 2 
years, total business investment has declined for 8 consecutive 
quarters. We must reverse this trend.
  Mr. Speaker, we cannot have capitalism without capital. Small 
business needs greater access to capital. Under the Republican jobs and 
growth package, 23 million small businesses in America would face a 
simpler, fairer Tax Code. They will benefit from a reduction in 
marginal income tax rates; they will face lower capital gains and 
dividend taxes; they can increase the amount of plant and equipment 
they can expense, all of which will allow them to grow their businesses 
and hire new workers.
  Mr. Speaker, H.R. 2 will indeed create new jobs and jump-start the 
economy. I urge all of my colleagues to support the Jobs and Growth Act 
and do the right thing for our economy and do the right thing for our 
American families.

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