[Congressional Record Volume 149, Number 79 (Monday, June 2, 2003)]
[Extensions of Remarks]
[Pages E1096-E1097]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




APPOINTMENT OF CONFEREES ON H.R. 2, JOBS AND GROWTH RECONCILIATION ACT 
                                OF 2003

                                 ______
                                 

                               speech of

                             HON. TOM UDALL

                             of new mexico

                    in the house of representatives

                         Thursday, May 22, 2003

  Mr. UDALL of New Mexico. Mr. Speaker, the facts are startling. In 
just over 2 years, this administration has taken a vibrant economy and 
turned it into a total mess. Once we saw projected federal surpluses 
for years, but now we see unprecedented deficits as far as the eye can 
see. Once we saw Americans working in good paying jobs, but now we see 
over two million jobs lost and families needing help to make ends meet. 
Once we saw states thriving and providing much needed benefits to the 
most needy, but now we see massive state deficits that require federal 
assistance to close.
  Something needs to be done to fix these problems. The question is 
what's the best way to do it? When we began the debate earlier this 
year about how to turn around our struggling economy, I was looking for 
a plan that passed three simple tests. Was the plan fair? Was the plan 
fast-acting? Was the plan fiscally sound?
  Tonight, the House is voting on the President's proposal. The answer 
to all three of these simple questions is a resounding ``no.''
  Is it fair?
  The other side likes to point out that the average family will 
receive about $1,000 in tax breaks. What they don't tell you is that 53 
percent of all taxpayers--yes, 53 percent of all taxpayers--will see 
less than $100 in their pockets. However, if you make over $1 million a 
year, you get a tax cut of $93,500. This clearly is not fair.
  Is it fast acting?
  Well, it's going to take effect this year. Yes, that much is true. 
Unfortunately, the President's plan gives the break this year and next, 
then it takes it away again in 2005. So, the average middle class 
taxpayer will actually see their taxes go up 2 years from now. And this 
trickle-down tax policy will not stimulate the economy now. In fact, it 
totally depends on those who benefit--the few--to reinvest their 
windfall down the road. In fact, there is no guarantee that any of this 
will happen, so there is no guarantee that this tax cut will generate 
any jobs, let alone the one million promised by the President.
  Is it fiscally sound?
  The answer is a resounding no. The dividend tax reduction and the cut 
in the capital

[[Page E1097]]

gains rate will give us little bang for our buck. Many leading 
economists argue that the dividend cut especially is one of the least 
effective options to grow the economy.
  This bill is a cruel hoax on New Mexico families. The overwhelming 
majority of hardworking New Mexicans will reap minimal benefits from 
these tax cuts. Although the final agreement hammered out by the House 
and Senate is much better than President Bush's original proposal, it 
still will not deliver much of a boost to the economy and instead 
increase the federal debt to be paid for by future generations.

  With passage of this tax cut, Congress and the president are 
demonstrating their economic arrogance. Over 400 economists, 10 Nobel 
prize-winning economists, Federal Reserve Chairman Alan Greenspan and a 
host of other credible experts have told us that this is not the way to 
go. It is not good economic policy, it is not good tax policy, it is 
not good fiscal policy, and it is going to put us in a deeper and 
deeper deficit hole. Eventually interest rates will rise because of the 
federal debt and that's going to hit middle-income families harder than 
the wealthy individuals who benefit the most from this misguided bill.
  Two years ago, President Bush told us that we could enact his 
policies and virtually eliminate the debt held by the public by 2008. 
Now, the Bush Administration is asking Congress to raise the debt limit 
by almost $1 trillion. It is an unprecedented turn of events. Those in 
the White House and their allies who want to eventually end the role of 
the federal government as we know it today--in education, homeland 
security, health care, Social Security, Medicare, veterans' benefits 
and other basic services--are well on their way.
  The only beneficial provisions included here are the ones that we 
included in our alternative plan: raising the refundable child tax 
credit, speeding up tax relief for married couples, preventing more 
individuals from being hit by the alternative minimum tax, small 
business expensing, and the financial aid to the states. Unfortunately, 
these redeemable items will be strangled by the capital gains and 
dividends tax breaks for the few.
  In 2001, I voted against the Bush tax cut bill because it was too 
skewed toward the wealthiest Americans and too fiscally irresponsible. 
Since then, we have gone from record surpluses to record deficits, and 
the economy is still floundering. Passing another enormous tax cut this 
year will only continue this trend and increase the economic problems 
that our children and grandchildren will inherit.
  Tonight, I will do so again. I urge my colleagues to vote ``no'' on 
this conference report.

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