[Congressional Record Volume 149, Number 68 (Thursday, May 8, 2003)]
[House]
[Pages H3845-H3850]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
REPUBLICANS' JOBS AND GROWTH PACKAGE
The SPEAKER pro tempore (Mr. Mario Diaz-Balart of Florida). Under the
Speaker's announced policy of January 7, 2003, the gentleman from South
Carolina (Mr. Wilson) is recognized for 60 minutes as the designee of
the majority leader.
Mr. WILSON of South Carolina. Mr. Speaker, I rise tonight with
several of my colleagues in support of the Republicans' jobs and growth
package, H.R. 2, which we are scheduled to vote on tomorrow; and in
fact, this vote is so important, I am really going to be missing a very
significant event in South Carolina.
We are very proud that President George W. Bush is going to be
commencement speaker tomorrow at the University of South Carolina for
graduation. I am just so proud of our president there, President
Sorenson, what he has done for our institution, the trustees, Mack
Whittle, Miles Loaholt, Mark Buyck, Eddie Floyd. They are working so
hard to make the University of South Carolina, my alma mater from law
school, one of the best universities in the United States; and
certainly having our President there tomorrow, I am just so proud, and
I know that my wife, Roxanne, will be right on the front row with our
sons Julian and Hunter and Alan to encourage the President.
Our economy is hurting and it needs an immediate boost. House
Republicans believe the best way to get the economy back on track is to
allow Americans to keep more of their own money, and I heard a few
minutes ago that indeed it was not the public's money, it was not the
people's money; but I know so well that, indeed, it is the people's
money, and that is the first fact that we should address; and I
appreciate good people like Jerry Bell of the Lexington County
Chronicle making that point almost every week in his publication.
This will give the economy an immediate shot in the arm by
accelerating tax relief from the marriage penalty, increasing the child
tax credit and providing working families with more of their hard-
earned dollars through accelerated income tax relief.
Furthermore, with sizeable, long-term tax relief on capital,
businesses will receive investment incentives that will help create
more jobs. This Republican plan is estimated to create 1.2 million jobs
by the end of 2004 alone and will create many more in the years to
come.
On the other side of the aisle, House Democrats are talking about a
government growth package. It busts a $30 billion hole in the budget,
guts the Republican child tax credit increases, and it weakens job
growth by watering down Republican tax relief for small businesses.
Once again, the Democrats' answer to every problem, raise taxes and
spend more.
Americans are already overtaxed. Americans for Tax Reform, an
invaluable nonprofit group headed by the visionary Grover Norquist, has
tracked the tax burden in a way that puts it in proper perspective.
Each year, Americans for Tax Reform determines the cost to government
date which is the average date at which every American worker has
earned enough to pay his or her share of taxes imposed by Federal,
State and local governments. The cost to government date 2002 was July
1, representing the largest tax burden since 1996.
Today, we are working a full 6 months just to give Uncle Sam his
yearly check before we can even begin to earn enough to pay for food,
health care, medicine, housing, clothing, college tuition, car payments
and all the other needs that we have to provide for our families.
My friend and former Congressman, the gentleman from Oklahoma (Mr.
Watts), put it best when he said, ``Americans are taxed when we turn on
a light. We are taxed when we use the phone. We are taxed when we eat
lunch. We are taxed when we do brunch. Moms are taxed at the gas pump
when they fill the tank to drive the kids home from a little league
game. Dads are taxed when they try to save a few bucks for retirement
in order to provide for their families, and Grandma and Grandpa are
taxed for having the audacity to die.''
Ronald Reagan was even more blunt and always correct when he
described the government's economic policy this way, ``If it moves, tax
it.''
President George W. Bush understands that Americans are overtaxed.
President Bush also understands that the only way to increase jobs in
America is to allow individuals and small businesses to keep more of
their own money to invest in our economy.
The gentleman from California (Mr. Thomas), the chairman of the
Committee on Ways and Means, has crafted a very wise and sensible bill
that takes the best solutions of President Bush's proposals, and I urge
all of my colleagues to vote for this bill tomorrow.
Americans have given Republicans a tremendous opportunity to lead on
issues that affect every working family. We must not squander this
moment and work to bring them real tax relief. Let us hold true to the
commission given by President Ronald Reagan.
We need true tax reform that will at least make a start toward
restoring for our children the American Dream, that wealth is denied to
no one, that each individual has the right to fly as high as his
strength and ability will take him.
At this time, I will be yielding to the gentleman from North Carolina
(Mr. Hayes). He is a very respected member on the Committee on Armed
Services. He also serves on the Committee on Transportation and
Infrastructure, the Committee on Agriculture; and I know firsthand the
respect that his constituents have for him.
Last year, I went with my sons Julian and Hunter door to door in his
hometown of Concord, North Carolina; and that is where one really finds
out what people think of their local Congressman, and I found out that
he was a person who was well thought of. He was highly respected and my
colleagues will see tonight what a knowledgeable and fine person the
Congressman from North Carolina is.
Mr. HAYES. Mr. Speaker, I want to thank my good friend and colleague,
the gentleman from South Carolina (Mr. Wilson), for yielding time; and
if I may, I would like my colleague to yield just a few moments of time
to the gentleman from Pennsylvania (Mr. Murphy), who has a very
important issue that he wants to raise before we continue to discuss
the important issue of how can we in the U.S. Congress
[[Page H3846]]
allow our folks back home to keep more of their own money.
Mr. MURPHY. Mr. Speaker, will the gentleman yield?
Mr. WILSON of South Carolina. I yield to the gentleman from
Pennsylvania.
Suicide Awareness Week
Mr. MURPHY. Mr. Speaker, I appreciate the gentleman yielding to me.
These issues about creating jobs and dealing with the economy are
extremely important to families. I would just like to take a couple of
moments to talk about another important issue to families.
Later on the floor this evening, one of our other colleagues, the
gentlewoman from California (Mrs. Napolitano), will also be speaking;
and she and I have been working together to establish a Mental Health
Caucus in the U.S. Congress, and I am proud to co-chair that caucus
with her.
The goal of the Mental Health Caucus is to raise awareness both in
Congress and among the public of the importance of mental health; and
it is fitting that this week we speak because it is Suicide Awareness
Week, and it is really the first issue that this caucus is taking up on
speaking on the floor.
Every 18 minutes someone in this country takes their own life, and
suicide is the 11th leading cause of death in the United States and
third leading cause of death among 15- to 24-year-olds. The American
Society of Suicidology found that 4 to 8 percent of adolescents
attempted suicide within the last 12 months, and data from the Centers
for Disease Control and Prevention indicate that half a million teens
attempt suicide each year.
In 2000, suicide attempts outnumbered homicides by five to three. In
that same year, in my home State of Pennsylvania, 1,356 people took
their own lives. As a psychologist, a husband and a father, I find
these numbers disturbing, as does everybody else who works in this
Chamber.
Everyone knows someone who has been depressed in any given year. In
fact, about one out of every 10 adults in this country suffers from
some form of depression. Every family knows someone who has suffered
from this. For those suffering from severe depression, without
treatment, nearly one in six will commit suicide.
The good news is that suicide can be prevented if one recognizes the
signs. People commit suicide when they are overwhelmed with a sense of
hopelessness and are unable to see alternative solutions to problems.
Suicidal behavior is often linked to depression or drug or alcohol
abuse. These are not the worried well, but these are people whose life
circumstances are overwhelming or they have a physiologically based
depression or mental illness that leaves them feeling that the only way
to end their pain is to end their life.
Those who have suffered the loss of a loved one from suicide know the
pain does not end with death. The family members and friends will feel
the loss, perhaps triggering their own life struggle to come to terms.
When someone tells you they are thinking of suicide, it is very
important that everyone take them seriously and get them professional
and medical help. In fact, if someone has reason to believe that, they
should call 911 or the national suicide hotline which is 1-800-SUICIDE.
I would like to mention other dangers include talks of hopelessness,
helplessness, worthlessness, preoccupation with death, loss of interest
in things that a person cares about or giving away valued objects as if
preparing to say good-bye.
In sum, danger signs may also take the form of engaging in risky or
dangerous behavior, like teens who take too many chances with fast cars
or drugs or alcohol.
I would like to highlight for just a moment here some of the things
happening in my home State. Since the 1980s, Pennsylvania has made a
strong effort towards preventing suicide in youth. The Commonwealth
Student Assistance Program was created in 1985; and core teams in each
secondary school consist of teachers, principals, school counselors,
school nurses, psychologists and social workers from this program
called SAP; and they work with identifying students and helping them.
They also have Service for Teens at Risk, otherwise known as STAR, to
address problems of teen suicide and violence. They serve children in
Pennsylvania and West Virginia.
I would like to make one other note here, too, that although I
focused on suicide among our youth, a common misperception is that
suicide rates are highest among the young. However, it is the elderly,
particularly elder white males, with the highest rates. White men, 85
and older, have suicide rates of six times that of the overall national
rate.
If we are going to address the problems of suicide, everyone needs to
recognize the warning signs. Parents need to talk to their children.
Adults and others need to talk to their parents.
This brings us to the underlying important issue of mental health
care. Without question, having major depression increases the risk for
suicide, and anyone suffering from depression in this country must
recognize that depression is a treatable disorder; and we in Congress
can do more to improve access to mental health care.
I know that others will be talking about this later tonight, and I
appreciate the gentleman yielding on this during this important time
when we are speaking about families on many levels. It is important to
know we do care about the family on every level, what happens to them
mentally and emotionally, socially, economically. All these things are
the business of Congress, and they are the business of government; and,
again, I thank the gentleman for the time.
At this point, I will insert for the Record my full statement.
I join my colleagues on the floor tonight to call attention to a
health care epidemic that claims the lives of three-quarters of a
million Americans a year: suicide. This is ``Suicide Awareness Week,''
and it's an important reminder why it's so important for parents,
educators, and children to learn the signs of depression and suicide.
I'd like to first take a moment to thank my colleague, Mrs.
Napolitano of California, for her hard work in establishing the
Congressional Mental Health Caucus, and I'm proud to be co-chair of
that Caucus with her. The goal of the Mental Health Caucus is to raise
awareness, both in Congress and among the public, of the importance of
mental health.
It is fitting that suicide awareness is the first issue that the
Caucus takes up by speaking on the Floor today. Every 18 minutes,
someone in this country takes their own life. Suicide is the 11th
leading cause of death in the United States, and the 3rd leading cause
of death among 15-24 year olds. The American Society of Suicidology
found that 4 to 8 percent of adolescents attempted suicide within the
last twelve months. Data from the Centers for Disease Control and
Prevention indicates that a half-million teens attempt suicide each
year. In 2000, suicide deaths outnumbered homicides by 5 to 3, and that
same year in my home state of Pennsylvania, 1,356 people took their own
lives. As a psychologist, a husband, a father, I find these numbers
deeply disturbing. Everyone in this Chamber knows someone who had been
depressed--in any given year, about 1 out of every 10 adults in this
country suffer from some form of depression. For those suffering from
severe depression, without treatment nearly one in six will commit
suicide.
The good news is that suicide can be prevented if you recognize the
signs. People commit suicide when they are overwhelmed with a sense of
hopelessness and unable to see alternative solutions to problems.
Suicidal behavior is often linked to depression or drug and alcohol
abuse. These are not the ``worried well,'' but a person whose life's
circumstances of physiologically-based depression or mental illness
leaves them feeling that the only way to end their pain is to end their
life. Those who have suffered the loss of a loved one from suicide know
that the pain does not end with death. Family members and friends will
feel the loss--perhaps triggering their own lifelong struggle to come
to terms with the loss.
If someone tells you they are thinking about suicide, you should take
them seriously and get them professional medical help immediately. If
you have any reason to believe that someone is in imminent danger of
harming him or herself, call 911 or the national suicide hotline, 1-
800-SUICIDE. Other danger signs include talking about hopelessness,
helplessness, or worthlessness; preoccupation with death, loss of
interest in things that a person cares about, or giving away valued
objects as if preparing to ``say goodbye.'' In some, danger signs may
also take the form of engaging in risky or dangerous behavior.
I'd like to take a few minutes to highlight some of the efforts my
home State, Pennsylvania, has undertaken. Since the 1980's,
Pennsylvania has made strong efforts toward
[[Page H3847]]
preventing youth suicide. The Commonwealth Student Assistance Program
(SAP) was created in 1985 and operates in all 501 school districts.
Every secondary school building is required to have a student
assistance program. Core teams in each secondary school, consisting of
teachers, principals, school counselors, school nurses, psychologists,
social workers, and community liaisons from mental health and drug and
alcohol agencies assist in identifying students at risk for suicide or
other behavioral health problems.
I am also proud of the accomplishments of the Services for Teens at
Risk, commonly abbreviated as STAR-Center, in addressing problems
related to youth suicide, depression, and violence. STAR-Center began
in Pittsburgh in 1986, and is affiliated with the Western Psychiatric
Institute and Clinic. The Center's clinic serves patients in West
Virginia, Ohio, and Pennsylvania, and since 1996 has treated over 6,400
children and adolescents at risk for suicide. Through its outreach
program STAR-Center goes into communities throughout Pennsylvania to
address suicide, depression, and other mental health issues our teens
may face. And when a suicide or other tragedy does occur, STAR-Center
staff consults with educators on how to provide postvention services.
This is particularly important given the traumatic impact the death of
a fellow student can have on his or her peers. The center also
publishes STAR-Center Link, a newsletter featuring best practices on
mental health treatment and violence prevention, and its ``Survivors of
Suicide'' program is nationally recognized. I'd personally like to
thank the staff of STAR-Center for their dedication to our youth.
Although I've focused a lot on suicide among our youth, one common
misperception is that suicide rates are highest among the young.
However, it is the elderly, particularly older white males, who have
the highest rates. White men 85 and older have suicide rate that is six
times that of the overall national rate. If we are going to address the
problem of suicide, everyone needs to learn to recognize the warning
signs, parents need to talk to their children, and adult children need
to talk to their parents.
This brings us to the important underlying issue, mental health care.
Without question, having major depression increases the risk for
suicide. Anyone suffering from depression in this country must
recognize that depression is a treatable disorder. And we here in
Congress can do more to improve access to mental health care.
Legislation has been introduced in the House to provide for Mental
Health Parity, H.R. 953. I am proud to be a co-sponsor of this
legislation, and I hope my colleagues will support this bill as well.
Jobs and Growth Package
Mr. HAYES. Mr. Speaker, I thank the gentleman for bringing to our
attention a vitally important part of our attempt to do everything we
can for families in America, to strengthen those families and to
provide them with the wherewithal they need to support this great
country.
The gentleman from South Carolina (Colonel Wilson) did spend time in
my district. The gentleman's district and mine are very similar. We
have some large cities, Columbia and Charlotte, Fayetteville; but we
also have a tremendous amount of rural America that we represent in our
districts, and as the gentleman and I spend time listening to our
constituents, the themes are clear and consistent. National security
and economic security through good jobs are the two issues that are on
people's minds.
I continue to refer to the gentleman as our colonel because our Armed
Forces have distinguished themselves in ways heretofore never known. We
are talking about the economy and jobs tonight, not only because it is
so vitally important, but because we are in the midst of a period of
trial in America, the likes of which we have never seen.
September 11, 2001, no one ever thought that would happen. The
terror, the horror of that still sticks with us, our people, our
families, and, yes, our economy. We are fighting a war on terrorism
very successfully, and that is a most appropriate use of the money that
our constituents work so hard to earn. That is a big issue as we
discuss what tomorrow will be, a jobs creation, economic stimulus
package.
It is not a complicated matter. Whose money are we here discussing
tonight? Are we discussing the government's money? I do not think so.
The last time I checked, the government had no money except that money
which was sent to us by our people back home.
That being true, then the question very simply is, Whom do the people
trust to spend that money most wisely? In my case, we do not talk in my
district, and I am sure it is the same in my colleague's, that much
about Democrats and Republicans, because obviously both constituencies
are vitally important; and the Democrats in my district are very
conservative. They care about their families. They care about
education. They care about jobs.
{time} 2030
Mr. Speaker, as I and other Members of Congress empower and enable
our people at home to keep more of their money to spend on their
education, their needs, then that money goes straight into the economy
because there is not only a need for services and goods, there is the
financial ability to buy those goods and services.
Here we have a chart. This is the essence of our discussion tonight,
creating new jobs. How do we do it? Fulfilling America's promise of a
bright financial future for us, but more especially for future
generations. I have a new granddaughter, 3 weeks last Monday night.
Members can rest assured, I am concerned about future generations.
The package that we are considering and will pass tomorrow creates
over a million new jobs. A million new jobs or zero. What is the
choice?
Mr. WILSON of South Carolina. Mr. Speaker, I appreciate the gentleman
bringing up the point about jobs.
Joining us in this discussion is the gentleman from Pennsylvania (Mr.
Murphy). I am very proud that he is a member of the Committee on
Financial Services and the Committee on Government Reform. Additionally
he serves on the Committee on Veterans' Affairs. He is a freshman, but
as a freshman he has been the most recent of being truly in a tough
campaign and finding out what the people think. I look forward to
joining the Mental Health Caucus along with the gentleman. I am proud
that the gentleman has taken that lead, and I yield to the gentleman
from Pennsylvania (Mr. Murphy).
Mr. MURPHY. Mr. Speaker, when I came to this town I found it to be
very different. Back in Pennsylvania, it is not always one of those
things that has such partisan disagreements as Republicans or Democrats
or Independents. It is a matter of talking with people and finding out
what is important to them. In that I would just like to relate a couple
things. Whether it is rural communities in Washington County,
Pennsylvania, or towns that are struggling along in Allegheny County,
Pennsylvania, but Americans are concerned about basic things for their
family. I hear them say they want some of their tax money back. Some of
the issues that are going to be discussed in upcoming votes about
increasing the child credit to a thousand dollars, to eliminate the
marriage penalty, are so important to families so they can have money
for rent, mortgages, and groceries. It is important because they know
what their families need.
Here we are battling within the Beltway, and most Americans do not
care about Republicans or Democrats. They care about doing the right
thing for their family. When they go to bed at night and when they wake
up in the morning, that is what they are concerned about. Whether they
have decent jobs is a big part of that. Some of the things that are so
important are in this job package.
They included aspects which will help small business. Having owned a
small business for a few years, I know how important those aspects are.
Again, many Americans may not appreciate such concepts as depreciation
or small business expensing, but when you are a small business owner
and you are taking the money that is really your family's money and
investing it to create jobs for other employees, whether it is buying
equipment, whether it is a computer or desk or building new office
space, that is money that the family cannot use. They are making an
investment, and when government says we would like you to take some of
that money to create jobs, it means a tremendous amount to families to
do that.
I hope we can lay down the arms of battle and pick up the arms that
embrace jobs, and do what is right for families. I believe many of
these things here, again when we go back to the streets and the farms
of America and ask them what they think, they like
[[Page H3848]]
these ideas of creating new jobs and bringing some of that money back
home so they can do what is best for their families.
Mr. WILSON of South Carolina. Mr. Speaker, I thank the gentleman for
his input. For a person who is leading a young family, the gentleman is
making a difference trying to protect them for the future.
As we discuss H.R. 2 tomorrow, the Jobs and Growth Tax Act of 2003,
we are going to hear a lot of scare tactics and misinformation, but I
would like to go over what the different points are of the act because
I believe the American people will understand that this is beneficial
again in creating jobs, creating opportunities for our young people,
for persons of all ages to have a better life. I am so pleased that we
have an opportunity to discuss it tonight, and then tomorrow to vote on
it.
The first point about the acceleration of the 2001 tax relief for
individuals, the President achieved an historic cut in taxes, and this
is being accelerated.
The first point about the child credit, this will increase the child
credit to $1,000 for 2003, 2004, and 2005. I am so aware of the costs,
having raised 4 children myself, along with my wife Roxanne, and I
know how helpful this is going to be to young families as they are able
to care for their children and give them the opportunities they want.
The 10 percent bracket, this will accelerate the expansion of the 10
percent bracket for 2003, 2004 and 2005.
Marriage penalty relief, this accelerates the expansion of the 15
percent bracket and the increase in the standard deduction for married
persons filing joint returns, again in the years 2003, for immediate
relief, 2004 and 2005.
Individual rate cuts, this accelerates the 2006 individual rate cut
scheduled for 2003 retroactively. That means that immediately the
people of the United States will receive benefits, and families could
receive a benefit on average of $1,048. This is real money to families,
and so helpful to raising children and meeting the needs that we have
of car payments, mortgage payments, and medical bills.
The increase in the individual alternative minimum tax, the exemption
amount, this will be increased by $7,500 for single persons and $15,000
for joint filers in 2003, 2004, and 2005.
To help create the jobs, the business investment incentives that are
in the bill which will be voted on tomorrow, first is bonus
depreciation. This will increase the bonus depreciation from 30 to 50
percent and extend it through December 31, 2005. This will encourage
businesses to buy equipment to increase manufacturing which creates
jobs. I want to commend the gentleman from Illinois (Mr. Weller), who
helped lead the effort to provide for the bonus depreciation increase
so that small businesses could grow.
Then we have small business expensing for 2003 through 2007. That is
an increase in the amount small businesses can expense. That would be
immediately to from $25,000 to $100,000. It increases the definition of
small business from $200,000 for capital purchases to $400,000, and the
provisions are indexed for inflation.
We all know that the backbone of business in America are small
businesses. They provide in my State 85 percent of the employment. They
are 99 percent of the businesses. So this is something I really am so
pleased to have the support of the National Federation of Independent
Businesses. We have excellent groups like NFIB which are letting
Americans know how beneficial this will be.
There is another business investment incentive and that is the net
operating loss carryback which will extend the net operating loss
carryback for 3 years, 2003 to 2005, and holds taxpayers harmless for
the alternative minimum tax.
Finally, another provision which will be voted on tomorrow is the
dividend and capital gain tax reduction. This will reduce the tax rate
on dividends and capital gains to 5 percent to taxpayers in the lowest
tax bracket, and to 15 percent to all other taxpayers.
I had an opportunity yesterday to meet Rick Wagner, who is the CEO of
General Motors. In his presentation he indicated that there would be an
increase in the value of the stock market of between 6 to 15 percent.
This is hundreds of millions of dollars, billions of dollars which will
benefit the American public.
In fact, the dividend reductions in taxes, a majority of that are for
the senior citizens of the United States. So I am so pleased that Mr.
Wagner, who is building a home in Daufuskie Island in South Carolina,
we welcome somebody who has been such an aggressive promoter of
reducing taxes on the American people and to increase the value of the
stock market, to increase and give incentives for more investment, more
jobs for the American people.
Those are the facts that are very clear. I know and I apologize if it
sounded like I was an accountant, and I love accountants, but the
American people need to know the facts. They will hear other
information. The bottom line is this is beneficial to the American
taxpayer.
Mr. Speaker, I yield to the gentleman from North Carolina (Mr.
Hayes).
Mr. HAYES. Mr. Speaker, I might ask a series of questions, and ask
that the chart with the tax breakdown be put up on the easel. The
gentleman did a wonderful job of outlining the specific areas in which
money would be created and put into the economy. The gentleman
indicated all of the different pluses of this stimulus package.
I think it would be instructive at this point in time to see where
that money comes from. If you would point to the bottom figure, the top
50 percent pays 96.09 percent of the tax bill. So if we are going to
give people more of their own money back, we have to go where that
money is in order to supply a stimulus, that fuel for the economic
engine that creates jobs and creates revenue to drive this wonderful
country forward. So I think it is very instructive for people to look
at that as we continue this discussion.
Earlier our colleagues on the other side of the aisle I think made
just a little difference in the way you and I would look at things.
Trying to phrase this kindly, we talk about deficits. You and I and the
people in Columbia and Concord hate deficits. They and you and I have
to balance our checkbook every month. We cannot spend more than we have
or serious problems occur. That is not a serious question. That needs
to stay on the table. Everybody agrees on that.
The question becomes how do we create the revenue so this Federal
Government can provide for the national defense of our young men and
women who have done so well, and provide for the interstate highway
system. There is the answer, we have to go where the money is. But our
friends and folks at home would be interested to know that these new
budget hawks, these new deficit reduction folks, and I am glad to see
their new interest, there was a total a couple of weeks ago that was
run up, a total of the amendments that they added to the budget bill. I
have not seen it published, but the total of their additions, the folks
that want to cut the deficit so and are so alarmed by the deficit,
which we all hate, added over $1.6 trillion to that budget.
I trust the people at home. I trust them to see through the
subterfuge. We talk about stimulating the economy and creating jobs. It
is our people using their common sense to solve problems to create jobs
and to grow that economy.
{time} 2045
Do not fall for the tax and spend. They have never seen a tax hike
that they did not like here.
Mr. WILSON of South Carolina. It is so obvious by the tax breakdown
that the gentleman from North Carolina (Mr. Hayes) brought out and the
points he brought out that we need to be promoting, as the President is
doing, the jobs and economic growth plan. I want to quote the
President's speech in Little Rock this week. He has clearly indicated
that by growing the economy, that is how you reduce the deficit, not by
spending more money, as the gentleman correctly indicated the other
side is truly proposing, but to grow the economy. His direct quote was,
``In order to offset any deficit, you've got to have more revenues. The
best way to have more revenues is to encourage economic growth. The
more economic growth there is, the more people are working, the more
likely it is that you're going to get more revenues into the Treasury
of the United States, and also to the individual States. I'm concerned
about the deficit but I'm first
[[Page H3849]]
and foremost concerned about that person looking for a job.'' That is
what President Bush said this week in Little Rock, Arkansas. I am so
proud that he has correctly identified what the gentleman just
identified.
Mr. HAYES. If the gentleman will yield further, earlier tonight we
heard our colleagues talk about sending more money back to the States.
My first question to the gentleman from South Carolina is, are the
States better off if they are allowed to keep their own money and spend
it there or are they better off sending it to Washington, us taking
part of it and then sending the remains back? What do the people back
home tell the gentleman? I bet I know the answer.
Mr. WILSON of South Carolina. I had the great privilege of serving
the people of South Carolina for 17 years in the State senate. In fact,
the State budget is being debated probably as we speak tonight. I know
that instead of just sending money back to the States, we have already
had a revenue-sharing experience that did not work and so that is
simply spending more money. What we need to do is what the President
has proposed and, that is, create new jobs, create new opportunities
for people to have incomes.
I know that in South Carolina, we are very proud about the expansion
of Michelin Tire Corporation in Lexington, South Carolina. There are
three plants there producing wonderful jobs and wonderful tires for the
people of America. We have worked hard in our State to attract foreign
economic investment. We are very proud that in Spartanburg in the
community of Greer that we have the BMW facility. All Z-3s in the world
are made there, the X-5s. Every time I have had the opportunity to
travel, I have been very proud to know that we have had the economic
expansion of BMW in our State providing jobs. That is what we are
trying to do in the bill tomorrow with H.R. 2, and, that is, to
encourage economic investment in the United States, to provide jobs and
to give families the ability to spend their own money.
Mr. HAYES. I would like to ask the gentleman one more question.
Another thing we heard earlier was that we are not helping the States.
That is simply not true. Before the gentleman answers my question, let
me make one more point. They talk about States who are cutting teachers
and education, who are cutting prosecutors, who are cutting prison
guards. My State is not cutting those vital services. They have choices
to make. I do not want to send money back to States that are making
those kinds of decisions. I do not think that is happening. But the
gentleman has a chart before him that gives a good illustration of how
we in Washington are working to help our States. Would the gentleman
describe that to our listeners at home, please?
Mr. WILSON of South Carolina. This does indicate that under
unemployment insurance, that the States have received $8 billion. This
is from Federal funding. In 2002, only $2 billion of that was actually
used. There was a surplus apparently of $6 billion. The bottom line is
by creating jobs, what we are doing in the plan that we will be voting
for tomorrow, we are providing for additional State revenue by sales
tax. That is virtually a universal tax in the United States at most
State levels and, that is, by providing for an increase in income, by a
person having the ability to keep their own money, when they go to the
store and buy products, when they are at Wal-Mart as I frequently am,
that with the sales tax, that goes straight to the State. It goes for
schools.
Additionally, I am so pleased that this package includes a reduction
in the capital gains tax. I can tell the gentleman from firsthand
experience, until 16 months ago I was a real estate attorney. I know
that by reducing the capital gains tax, and this has been a cause of
the chairman of the Committee on Ways and Means, the gentleman from
California (Mr. Thomas), for a number of years. By reducing the capital
gains tax, this will help again create jobs. The first thing that will
occur, because I ran into it, a number of people that I know,
particularly elderly people, would not sell property they have, real
property, because they felt like they were being overly taxed and they
considered it an insult, whatever the percentage was. So by reducing it
to 5 percent, what will occur is that people who are currently holding
on to property simply because they do not want to pay a capital gains
tax, they will sell that property. When they do sell the property, the
first occurrence will be construction. I met with the homebuilders
association this week. They are very supportive.
The AGC and the ABC, the various construction interests, are very
pleased that if we can have a sale of property and the construction,
the jobs are created. This also is going to benefit local governments
and State governments in that having a turnover of real property, the
taxes that are generated will go for schools. They will go for the
services of local governments. This is going to be so beneficial
because many people in our State, and I think this is true in other
States, too, they will actually put goats or they will put a cow on
some extraordinarily valuable property in the middle of an urban area.
That is because they are able legitimately to qualify for an
agricultural assessment.
When they get an agricultural assessment, they may pay $10 in taxes
on that particular tract of land. But by having the reduction in the
capital gains taxes, by having the sale of the property, by having the
development of that property by construction of new businesses or
homes, that will generate thousands of dollars, instead of $10 to the
local governments, that can be used to build schools, to address the
problems that we have in local government, that we have to produce the
best schools that we can for our citizens. There is just so much
positive in the bill that we will be voting on tomorrow.
I know that the gentleman probably has another question that he wants
to ask me.
Mr. HAYES. I thank the gentleman again for his incredible leadership
not only here tonight but back home in South Carolina, not only as a
Congressman but as a colonel in our wonderful Armed Forces. I think it
is appropriate that we close with our continued pride, support and
absolute awe at the way they have conducted themselves. That is so
important to the economy, to rid the world of terrorists. The costs
that have been incurred, they have created hardships for all of us. But
thanks to their ingenuity, their courage, their training, their
bravery, their leadership, they have gone in and outthought and
outfought a very, very difficult enemy. Now we have, because of their
sacrifices, the opportunity to put this economy back on its feet, to
put our people at home to work. I hope the McMillens in Hampton County
are listening tonight. They are farming pretty hard so they may not be.
I hope the folks in Richmond County, in Hoke County, all throughout the
eighth district, are listening because they understand from the
gentleman's leadership and his presentation the sound, commonsense
approach that this jobs growth economic stimulus plan that the
gentleman and I and others on this side of the aisle support so
strongly, they understand and appreciate what that brings to our
districts and to our economy.
Mr. Speaker, tonight we have heard the truth in a very clear, in a
very concise, and in an understandable fashion. The presentation of the
gentleman from South Carolina is responsible for that. I thank the
gentleman for serving our country. I thank him for serving this
Congress.
Mr. WILSON of South Carolina. Mr. Speaker, I want to conclude with
some other points real quickly, that is, that the President's jobs and
economic growth plan is designed to strengthen the economy by allowing
Americans to keep more of their own money to spend, save, and invest by
creating jobs. The President's plan to cut taxes and hold the line on
government spending would grow the economy and ultimately reduce the
deficit as stronger economic growth and job creation causes revenues to
rise to meet the restrained level of spending.
At this time, too, I would like to, as we are concluding, indicate
the various groups that are supportive of the bill tomorrow, H.R. 2. In
fact, I would like to read a letter which was sent by the Tax Relief
Coalition. There are hundreds and hundreds of organizations, in fact
there are over 1,000, that are supporting the Jobs and Growth Tax Act
of 2003. This is a letter again sent by the Tax Relief Coalition:
[[Page H3850]]
``On behalf of the more than 1,000 organizations and 1.8 million
businesses of the Tax Relief Coalition, we urge you as a member of
Congress to support the full elimination of the double taxation of
dividends, the increase in the small business expensing allowance, and
the acceleration of all the scheduled income tax rate reductions when
the Committee on Ways and Means considers the economic growth
reconciliation legislation. As companies and organizations representing
businesses that employ tens of millions of Americans, we believe
these provisions are necessary if we are to jump-start the economy and
put people back to work.
``The full elimination of the double taxation of dividends within the
framework of a $550 billion tax relief package is achievable and will
have a singularly positive effect on the economy in both the short term
and the long term. It will spur consumer spending by putting more money
in the hands of shareholders who will pay less in taxes, receive higher
dividend payouts and accumulate increased wealth as a result of the
upward pressure on stock prices. The resulting increased demand and
lower cost of capital will sustain economic growth and create jobs as
companies invest in the new equipment, build new plants and develop new
products. Many economists also believe eliminating this double tax will
boost the stock market from 10 to 20 percent.
``Since small businesses create two-thirds of the new jobs in the
United States, the importance of the small business provisions of the
President's proposal should not be underestimated. Approximately 85
percent of small business owners file tax returns as individuals and
represent nearly 80 percent of the taxpayers at the top income bracket.
Accelerating all of the scheduled income tax rate reductions to this
year, 2003, will provide approximately $10 billion in tax savings to
small businesses that file as individuals. Allowing small business
owners to expense critical investments will facilitate economic
expansion, so we urge you to support raising the small business
expensing limit from $25,000 to $75,000 and indexing it for inflation.
These changes will create savings for small businesses that will put
money directly into the economy and create new jobs.
``Any proposal that does not include the critical small business
provisions and result in the full elimination of the unfair double
taxation on dividends will significantly compromise the economic
benefits of the President's package and jeopardize the hundreds of
thousands of new jobs that would otherwise be created.
``In our view, representing tens of millions of working Americans and
businesses, if you do not include the dividend tax reduction and the
critical small business provisions, the jobs and growth package will
simply not have the same effect.
``This has been respectfully submitted by the Tax Relief Coalition.''
Mr. Speaker, I am just very honored to have been here tonight with
the gentleman from North Carolina to present on behalf of nearly 1,000
business associations, businesses and other think tanks that are
proposing that we reduce taxes and the tax burden on the American
people. I just cannot wait until tomorrow, and I hope the American
people follow the debate. I am confident that just as we had the
debates following the tax increases of 1993, which when those tax
increases were put in place that we heard were so good tonight, the
immediate effect was that a Republican Congress was elected for the
first time in over 40 years.
And so people do understand these issues. I know in the State of
South Carolina that we understand those issues because, in fact, not
only was there a new Republican majority in the House here in
Washington, but for the first time since 1877 there was a Republican
majority and the first Republican Speaker of the House of
Representatives in the entire South, David Wilkins, was elected. The
American people do understand these issues. We have gotten excellent
leadership in our State and here in Washington. The Republicans then
achieved a majority in the State Senate in 2001 for the first time
since 1877 because people do understand the philosophical differences
between the two parties. They understand that we as Republicans are
working for limited government, expanded freedom. On the other side,
they have tax-and-spend policies. They are well meaning, but they are
wrong.
____________________