[Congressional Record Volume 149, Number 68 (Thursday, May 8, 2003)]
[House]
[Pages H3835-H3836]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1845
PASS MEANINGFUL TAX RELIEF
The SPEAKER pro tempore (Mr. Gingrey). Under a previous order of the
House, the gentlewoman from Ohio (Ms. Pryce) is recognized for 5
minutes.
Ms. PRYCE of Ohio. Mr. Speaker, I am going to get right to the point,
we have an economy today that is flat on its back. The national
unemployment rate has hit an 8-year low at 6 percent. Manufacturing has
dipped to historic lows, causing inventories to decline. While worker
productivity may be on the rise, more and more employees are logging in
3 hours less every day. In the past 2 years, the Nasdaq has fallen over
60 percent.
Americans are out of work, and those with jobs are seeing their
401(k)s and retirement savings dwindle by the day. What this economy
needs, Mr. Speaker, is what we would call in Ohio a Buckeye boost.
We know what the problem is, an investor-led sluggishness, that is
stifling growth, new capital demand, and job creation. And we have the
right solution.
That formula for success begins with the understanding that
government does not earn a profit. Government just does not earn a
profit. Government does not create the jobs in this economy. Government
can only stand in the way of progress and prosperity.
So House Republicans have developed a common sense plan that targets
the twin pillars of economic growth, consumers and small businesses.
Let us talk about consumers first. It might surprise the average
American to know that he or she comprises three-fourths of economic
activity in this country. That is right. Consumer spending on goods and
services represents 75 percent of the entire economy.
Think about that for a minute. That is why Republicans place such
emphasis on returning power and income back to the hands of the
individual taxpayer. Because when they have the money, they spend it on
their needs and their family's needs, and that grows the economy.
So our plan accelerates income tax relief for every American who pays
taxes. We give a little extra help for married couples struggling to
make ends meet by eliminating the extra taxes they pay just for saying
``I do.'' I do not know about others, but I have never seen the tax man
leave a wedding gift when he confiscates the extra taxes from married
couples every April 15.
Additionally, our plan expands the child tax credit for families,
giving parents an extra $1,000 to help raise their child and pay the
bills. Finally, the onerous AMT continues to push more and more
families into higher tax brackets. Our plan will save nearly 10 million
Americans from paying more. That is real relief.
Let us talk about small businesses for a moment. Now the second and
perhaps the most important part of this package is small businesses.
Nine out of 10 jobs in your neighborhoods and communities were created
by small businesses. That local entrepreneur who wanted to take a risk
and open their own business is the reason jobs are created and this
economy grows.
Republicans feel it is important to help that small business owner
whenever we can. Our business expensing
[[Page H3836]]
provisions are just what the doctor ordered. Every business owner I
talked to in Columbus, Ohio, tells me how important these expensing
deductions are because when we lower costs, we free up income. That
lets us businesses make investments elsewhere.
How often do we forget that over 23 million small business owners pay
taxes at the personal rates, not the lower corporate tax rates. Did you
ever wonder where the Democrats come up with these bogus numbers for
the ``super rich'' and then they wage class warfare with these numbers?
The dirty little secret they hope Americans do not realize is that most
of these super wealthy people are actually small business owners.
Finally, the capital gains and dividends relief provisions in this
package are an economist's dream come true. History is on our side.
Every time this Congress has reduced the capital gains rate in this
country, the economy has grown and revenues into Washington have
increased. Conversely, every time we have raised the rate in order to
tax businesses more and reduce the deficit, the opposite has happened.
It is a simple economic truism. If you want more of something, tax it
less.
So the gentleman from California (Mr. Thomas) and the Committee on
Ways and Means have developed a revolutionary idea to tax both
dividends and capital gains less. This provision alone is projected to
produce 400,000 new jobs and boost the stock market by as much as $550
billion. That is what I call a return on investment.
Mr. Speaker, we have failed the American taxpayer and the American
worker if we do not first commit in this body to do our level best to
create more and better-paying jobs, and that is what we have done.
Taken together, this package will produce 1.2 million new jobs in a
little more than a year.
In contrast, our opponents' plan pledges more spending and more
unemployment checks, but no new jobs. There is not one guarantee for
any new job under their plan because they raise taxes on individuals
and businesses 1 year after they lower them.
So the next time Members hear of soaking the rich or reverse Robin
Hood, just ask our opponents if their constituents would prefer 1.2
million new jobs or none with an unemployment check. The choice is
clear.
This economy has one obstacle standing between historic levels of
growth and a jobless recovery. That is meaningful tax relief. As
Members, we can choose to do something about it, to make bold decisions
for a bold recovery. Or we can sit on the sidelines, wring our hands,
and hope, like the Democrats, that things get better on their own.
Mr. Speaker, the American people did not send us here to be potted
plants. We came to change the course of history, to make this country a
better place to live, work and raise a family, and that is what I
intend to do.
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