[Congressional Record Volume 149, Number 79 (Monday, June 2, 2003)]
[Extensions of Remarks]
[Pages E1100-E1101]
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
______
HON. CHARLES B. RANGEL
of new york
in the house of representatives
Monday, June 2, 2003
Mr. RANGEL. Mr. Speaker, the President has said in numerous speeches
that his policies are designed to ``leave no child behind.'' He has
said recently that, ``My jobs and growth plan would reduce tax rates
for everyone who pays income tax.'' White House Press Secretary Ari
Fleischer stated on May 29 about the new tax-cut law (which includes
all of the provisions of the President's plan in full or in part),
``This certainly does deliver tax relief to people who pay income
taxes.'' Now that the bill has been signed, all of these statements
have been shown to be false.
Back then, during the debate on this bill, the Republicans assured
the press that the final conference bill retained a Senate provision
that, while it did not extend any tax relief to millions of low-income
working families with children, did at least accelerate the 15 percent
partial refundability. The Republicans also claimed that the marriage
penalty relief was accelerated for couples. These claims have been
proven false as well.
The American people were sold a false bill of goods by the
Administration and the Congressional Republicans. In the middle of the
night, the Republicans passed a bill that over and over again puts the
interests of the wealthiest people in the country ahead of those of the
ordinary American family.
You will hear all sorts of excuses from the Republicans as to why
this occurred. The spokeswoman for Chairman Bill Thomas of the House
Committee on Ways and Means told The New York Times that the blame lay
with the members of the other body of Congress''(W)hen we had to
squeeze it all to $350 billion, they weren't talking about the child
credits.'' She concluded, ``(W)hatever we do is not going to be enough
for some segments of the population.''
The ``segments'' of the population we are talking about are those
people who the President and Congressional Republicans say that he
wants to help. We are talking about 11.9 million children (in 6.5
million families) who would benefit from accelerating the increase in
the refundability of the child tax credit. These are parents who work
hard at low wages and pay high payroll taxes to the Federal government.
Another ``segment'' we are talking about is working couples who qualify
for the Earned Income Tax Credit. These are working poor families who
are often struggling to stay together given the financial pressures on
them. A couple with two children where each parent earns about $10,000
has about a $1,000 marriage penalty next year. And yet, the Republicans
decided that marriage penalty relief should not include them.
The Republicans also left out 8.1 million taxpayers who receive no
benefits from the new tax law and yet pay income taxes. This group
consists mainly of low-income single individuals and moderate-income
single parents whose children are over 16.
Not only are these ``segments'' made up of men and women who work and
pay Federal taxes, many of the people that are left out of tax relief
are the same men and women who just fought for this country in Iraq.
The society they sacrificed for has decided to raid the Social Security
and Medicare trust fund to give billions of dollars in tax relief to
wealthy investors, but has not seen fit to give a tax cut to our
soldiers.
Make no mistake about it. Nobody forgot to put benefits in because
they were sleepy in the middle of the night. This was not necessary
because the bill had to cost only $350 billion and it was simply
impossible to do anything for these working Americans in the bill. The
Republicans in Congress, with the tacit approval of the White House,
deliberately skimped and trimmed on the few provisions under
consideration to help millions of middle- and low-income working
families. Meanwhile, they enhanced provisions for the wealthy and for
special interests. They made sure that the average millionaire would
receive a $93,500 tax break. They made sure that luxury SUV owners
would get a generous tax break if they can figure out a way to make
their vehicle a ``business expense.'' They even made sure that the tax
cuts for dividends, the so-called elimination of ``double taxation,''
applied to dividends from companies that use sham headquarters in tax
havens to get out of paying any tax. These companies that put profits
over patriotism get benefits from the tax bill the President signed,
but the parents of 12 million children do not.
The bill we introduce tonight is designed to serve those people with
children that the Republicans talk about but somehow never do anything
for. This includes many of our service men and women who are or have
been stationed in Iraq, Afghanistan, and Korea. These men and woman
have risked their lives and done their duty at such low wages that the
President's tax cut which he claims helps ``working families'' has left
them out.
The bill would include an expansion of the refundable child credit
that was included in the Democratic economic stimulus proposal. It
would expand the refundable child credit for the families of military
serving in Iraq and other combat zones. It also would include the
provision of the Democratic stimulus plan that accelerated the marriage
penalty relief in the earned income tax credit that was provided in the
2001 tax bill.
The President's bill gave big tax cuts to the wealthiest citizens and
funded these tax cuts though borrowing. While we want every child in
America to benefit from tax cuts, we do not want to pass the cost of
what we do to our children and grandchildren in the form of more
national debt. The cost of the bill would be offset by a combination of
the corporate tax shelter and Enron-specific provisions that passed the
Senate and Mr. Neal's bill stopping corporate expatriation.
The legislation we propose has two key sections:
Liberalization of Refundable Family Credit
Under current law, the per-child tax credit is partially refundable
(i.e., paid even if the family has no income tax liability). The amount
of partial refundability is 10 percent of taxable wages above $10,000.
Under the 2001 tax act, the amount of refundability is increased to 15
percent of taxable wages over $10,000 effective in 2005 and thereafter.
This legislation accelerates the 15 percent partial refundability and
lowers the threshold for partial refundability from $10,000 to $7,500.
It would increase the number of families eligible for partial
refundability.
The military serving in combat zones receive an exclusion for their
pay while serving in the zone. As a result, many in the military will
not be eligible for the partial refundable family credit because they
do not have taxable wages. The legislation solves this problem by
disregarding the combat pay exclusion when computing the size of the
partially refundable family credit.
Marriage Penalty Relief in Earned Income Credit
The 2001 tax act provided three types of marriage penalty relief, an
increase in standard deduction, an expanded 15 percent rate bracket,
and an increase in the dollar amount at which the earned income credit
begins to be phased out. The recently enacted tax cut accelerates the
first two types of marriage penalty relief, but does not accelerate the
relief in the earned income tax credit.
This legislation will accelerate the marriage penalty relief in the
earned income tax credit.
When the Republicans brought their final tax cut bill up in the House
in the middle of the night, I argued on the House floor that the bill
did almost nothing for working people while rewarding the wealthiest
people in our society who have lots of unearned income. The Republicans
accuse me of engaging in ``class warfare'' and expect me to back down.
But I agree that it is class warfare. The Republicans have declared war
against those who earn their living through work, even when those
individuals are serving their nation in the armed service. This
legislation shows that in this
[[Page E1101]]
class warfare, we are on the side of working men and women.
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