[Congressional Record Volume 149, Number 141 (Wednesday, October 8, 2003)]
[House]
[Pages H9346-H9349]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
MOTION TO INSTRUCT CONFEREES ON H.R. 1308, TAX RELIEF, SIMPLIFICATION,
AND EQUITY ACT OF 2003
Mr. CROWLEY. Mr. Speaker, I offer a motion to instruct.
The SPEAKER pro tempore. The Clerk will report the motion.
The Clerk read as follows:
Mr. Crowley moves that the managers on the part of the
House in the conference on the disagreeing votes of the two
Houses on the House amendment to the Senate amendment to H.R.
1308 be instructed as follows:
1. The House conferees shall be instructed to include in
the conference report the provision of the Senate amendment
(not included in the House amendment) that provides immediate
payments to taxpayers receiving an additional credit by
reason of the bill in the same manner as other taxpayers were
entitled to immediate payments under the Jobs and Growth Tax
Relief Reconciliation Act of 2003.
2. The House conferees shall be instructed to include in
the conference report the provision of the Senate amendment
(not included in the House amendment) that provides families
of military personnel serving in Iraq, Afghanistan, and other
combat zones a child credit based on the earnings of the
individuals serving in the combat zone.
3. The House conferees shall be instructed to include in
the conference report all of the other provisions of the
Senate amendment and shall not report back a conference
report that includes additional tax benefits not offset by
other provisions.
4. To the maximum extent possible within the scope of
conference, the House conferees shall be instructed to
include in the conference report other tax benefits for
military personnel and the families of the astronauts who
died in the Columbia disaster.
5. The House conferees shall, as soon as practicable after
the adoption of this motion, meet in open session with the
Senate conferees and the House conferees shall file a
conference report consistent with the preceding provisions of
this instruction, not later than the second legislative day
after adoption of this motion.
Mr. CROWLEY (during the reading). Mr. Speaker, I ask unanimous
consent that the motion to instruct be considered as read and printed
in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
The SPEAKER pro tempore. Pursuant to clause 7 of rule XXII, the
gentleman from New York (Mr. Crowley) and the gentleman from California
(Mr. Herger) each will control 30 minutes.
The Chair recognizes the gentleman from New York (Mr. Crowley).
General Leave
Mr. CROWLEY. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on this motion and insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. CROWLEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, today I am offering a motion to instruct conferees on
the child tax credit.
Mr. Speaker, while many of my colleagues continue to believe that
higher deficits and more tax cuts for the rich are the way to end this
Bush recession, let us look at the facts.
Since the beginning of the Bush administration, America has seen the
loss of over 3.3 million jobs, of which 2.5 million have been in
manufacturing. Moreover, taxes on working families have gone up. This
is via interest rate increases that makes your monthly mortgage
payments higher and increases your monthly car payments.
The national deficit has soared to almost half a trillion dollars
this year and is increasing. And what are you getting? Your tax dollars
are paying over $300 billion this year alone on interest on the Bush
tax cut for the rich.
Finally, Democrats, working with Senate Republicans, put forth a bill
to give working families a real tax cut: an extension of the child tax
credit. The Republicans oppose it. They are opposing a tax cut on
working families.
The people missing out on this tax cut include 6.5 million working
families and their 12 million children who are struggling to make ends
meet. One in five of these children are from active duty military
families, making even a Republican Senator from Arizona who, by the
way, ran for President just 2
[[Page H9347]]
years ago, to say, and I quote, ``I don't understand how you, the
Republican leadership and the President, left enlisted men and women
out of this tax package. I do not get it.'' End quote.
Additionally, this bill will disproportionately penalize African
American and Hispanic children. Mr. Speaker, 2.4 million African
American children and 4.1 million Hispanic children's families deserve
this tax cut, but the Republican party refuses to give it to them,
preferring tax cuts for millionaires and big business, this according
to the Children's Defense Fund.
This Republican tax package ignores the needs of working families;
and by ignoring 6.5 million working families, it will have a
devastating impact on these families and the children across our
country. It will have a particularly devastating impact on Latino and
African American families, those suffering some of the worst brunt of
this Bush recession.
We see 3.3 million U.S. jobs disappear in America since January of
2001. We see the unemployment rate for African Americans at 11.2
percent of the population. We see the Hispanic unemployment rate at 7.5
percent.
On top of that, this most recent tax bill for the rich cut out child
care tax benefits for the poorest children in America whose parents are
working, not on welfare as the Republicans would have you believe, but
are working people who can barely keep their head above water, thanks
to the economic nightmare cast on America by this Republican party and
President Bush.
These are people struggling to provide for their families, and this
Republican Congress refuses to fix it. Republicans are holding
America's working families hostage by opposing any legislative remedy
to help working families and instead by offering another huge tax cut
for the richest 1 percent of Americans.
Again, I believe it is shameful to be offering tax cuts to the rich
while cutting benefits for the working poor, cutting benefits for our
veterans, cutting benefits for seniors on Medicare, and allowing
millions of American jobs to disappear since President Bush and
Republicans began to set economic policy almost 3 years ago.
President Bush's economic plan has failed the American people who
should be some of the most cherished members of our society, our
veterans, working families, and innocent children. President Bush's
economic plan does more than ignore these groups. In my opinion, and
many other people's opinion, it hurts them.
As the Disabled American Veterans wrote in a letter to Speaker
Hastert and the Republican Party earlier this year during consideration
of the Republican budget, which mandated massive cuts in veterans'
programs, Disabled American Veterans asked, ``Have you no shame?'' They
were speaking to the Republican Party. Today I ask that same question
on behalf of the working families of my district, the Bronx and Queens.
The child tax credit bill passed by this Republican House leaves
children and families in my district behind, particularly families of
color. Families earning between $10,500 a year and $26,625 a year are
excluded from claiming the child tax credit increase. What does this
mean for Latino families? Half of all Latinos report having an annual
household income under $30,000. Half of all Latinos report having an
annual household income under $30,000. The House Republican child tax
credit plan means most of these Latino families will be excluded, will
be excluded from the child tax credit. It means that approximately 1.6
million or 30 percent of the eligible Latino families who might have
otherwise benefited from the increase are being left out. This is on
top of the fact that the Bush economic plan means more Latinos are out
of work.
Moreover, Latinos have a faster-rising unemployment rate than the
general population. As of this summer it was 7.5 percent compared to
roughly 6 percent for the average American. This is on top of the fact
that the Bush tax cut on dividend income affects only 7 percent of
Hispanics who own stock.
Latinos in my district want to work, and they want to do what they
can to provide good futures for their children. But many Latinos in my
district are working in low-wage jobs or, thanks to the number of full-
time jobs lost, are only working part time. They are being left out of
the Bush tax credit.
President Bush's priorities are clearly not working for Latino
families, and they are clearly not working for African American
families either. African American families are among the hardest hit by
the Bush tax plan and the House Republican child tax credit.
About 932,000 African American children under the age of 18,
according to the Children's Defense Fund, live in extreme poverty.
Given our economy, it is unfortunately not surprising that this
statistic represents a 50 percent increase since 1999.
African American families, like Latino families are
disproportionately left out of the Bush child tax credit. African
American unemployment is rising to above 10 percent. Those who are
eligible to find work are often barely getting by.
These are the families that need the child tax credit the most, and
yet these are the families that the Republicans and this President are
leaving out. A family earning $20,000 with two children is being
overlooked by President Bush in favor of the family earning $200,000 a
year who does not necessarily need the child tax credit. Yet a family
earning $20,000 is the family that sincerely needs a $400 child tax
credit. That credit would be equivalent to a 4 percent raise in pay.
But that tax credit does not exist under President Bush's plan.
President Bush's priorities are not the families that need the tax
credit the most. President Bush continues to ignore the voices of
Latino and African American families. Our national debt increases, our
debt limit increases, and President Bush continues to increase tax
breaks for those who do not need them. And I believe and all of this
side of the aisle believe that that is wrong.
Mr. Speaker, I reserve the balance of my time.
Mr. HERGER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the gentleman from New York (Mr. Crowley) apparently has
not read the House-passed bill. The House-passed bill is the same as
the motion to instruct in the treatment of low-income families. Both
accelerate the refundability of the child tax credit effective this
year, exactly the same as the motion to instruct.
Mr. Speaker, I rise in opposition to the motion to instruct offered
by the gentleman from New York (Mr. Crowley). We all agree that changes
need to be made in the child tax credit. The legislation passed by the
House earlier this year, legislation that passed by voice vote, by the
way, makes a number of beneficial changes to the child tax credit. For
example, the House legislation will ensure that child credit remain at
$1,000 per child through the year 2010. Under current law, the credit
is scheduled to be reduced after 2004 resulting in a tax increase on
American families. I hope we can all agree to keep the credit at
$1,000.
The House bill also eliminates the marriage penalty in the child
credit. Eliminating this marriage penalty will provide more than $20
billion of tax relief to middle-income families over 11 years.
The House bill enhances tax fairness for the members of the U.S.
military who risk their lives to defend our freedom by granting capital
gains relief on home sales, making death gratuity payments tax free,
and other important provisions.
Perhaps of most interest to those who are supporting the motion, the
House bill increases the amount of the child tax credit that is
refundable from 10 percent of income over $10,500 to 15 percent of
income over this amount. Our bill would make this increase effective
this year.
The motion to instruct, on the other hand, would reduce the child tax
credit for millions of children. It would allow the child credit to
drop from $1,000 per child to $700 per child.
{time} 1715
The motion to instruct does not eliminate the marriage penalty in the
child credit until 2010 and then it only does so for 1 year.
Under this motion to instruct, millions of children will be denied
the child credit simply because their parents are married. The House
bill benefits middle-income families by eliminating the marriage
penalty in the child credit immediately.
[[Page H9348]]
Finally, let me make clear that the House passed bill does not, I
repeat, does not deny the child credit to military families. Military
families, including those who are deployed abroad, are already
receiving a refundable child credit and will continue to receive a
refundable child credit under the House bill.
The motion to instruct would use a different definition of the income
when determining the child credit, thus increasing the child credit for
some military families. But I would note that this definition of income
is different than the definition of income recommended by the prior
administration, a Democratic administration. In fact, the current
definition of income, as proposed by the Clinton administration, was
enacted in the law in order to simplify the program and limit the
potential for fraud and abuse.
So let us be clear. The House bill provides more tax relief to
military families because it includes $806 million in military tax
benefits that are not included in the motion to instruct.
Mr. Speaker, we should support the very worthy legislation passed by
this House and reject the motion to instruct.
Mr. Speaker, I reserve the balance of my time.
Mr. CROWLEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I will point out that I think my colleague is euphoric
over the victory yesterday of his party and the election in California.
I know perfectly well what bill is before this House, what bill passed
this House. I know that at that desk is a bill from the other body that
is a clean bill, that will not cost any additional money above and
beyond what the Senate has asked for to pay for the tax cut for the 6.5
million poor people that we are talking about that deserve and need
this tax cut.
The bill that passed this House will cost an additional $80 billion
and support the wealthiest 1 percent in this country. I was very clear
in my statement about that. I know what bill passed this House. I voted
against that bill. I will support, and I would ask the gentleman if he
will go to our leadership and bring down to this floor a bill that we
can all support. The gentleman said it himself, he does not necessarily
disagree with me that these 6.5 million people should get this tax
credit, but he wants to pass a bill that will also tag on additional
billions of dollars, increasing our national debt, an additional $80
billion to support the wealthiest 1 percent in this country. I think
that is unconscionable.
But, then again, in California we can look at the job loss rate.
Since this President took office, they have lost 361,000 jobs in that
State. I wonder if we ask any of the 361,000 people, who probably will
not be eligible now for a child tax credit under their bill, whether
they think this bill should pass or not.
Mr. Speaker, I yield 4 minutes to the gentleman from Washington (Mr.
Inslee).
(Mr. INSLEE asked and was given permission to revise and extend his
remarks.)
Mr. INSLEE. Mr. Speaker, in thinking about the context of these
bills, I imagined how we would react if a politician pulled up next to
a third grader getting out of school ready to traipse home, came up to
the third grader and said, I am taking your lunch money unless I get my
new tax break at over $200,000 income, and I am not giving you your
lunch money for tomorrow unless I get my tax break, because that is
what the Republican position is on this bill.
The Republican House position on this bill is that unless these
higher-income individuals get an additional tax break on top of the
millions of dollars they have already got, that little Johnny does not
get his lunch money, and his parents do not get the child tax credit
break that they have coming to them.
We have a bill right here that will get unanimous approval to give
this child tax credit to the people who deserve it, but they will not
give it to him because they are holding these children hostage. And it
is not a pretty sight from either side of this aisle. And when we think
about the children who are subject to this, I want to make sure we know
who these kids are and who their parents are: 178,000 are children of
farmers, good folk; 567,000 are children of nurses or orderlies taking
care of our families; 337,000 of them are teachers; and 262,000 are
children of personnel, many of whom are serving in Iraq and Afghanistan
today.
But I want to make sure the record is really clear, the Republican
party is telling the Army, for example, in Iraq today that their
children do not get a tax credit unless the millionaires of America get
another tax break for their income. And when you come home, you will be
coming home to an America where your kid still does not get a tax
credit unless our millionaire buddies who participate in the political
process get their tax break first.
That is not the message I want to send. That is not the message the
Democratic party wants to send to the soldiers and sailors who are
proudly serving in Iraq and Afghanistan today.
I also want to point out another glitch that we need to fix that the
Republicans refuse to fix. Today an E-5 sergeant with 6 years of
service and two children, who is paid $29,000, who is serving in Iraq
today would normally get the $1,000 tax credit, but because they are in
combat, under existing law, this is pretty incredible, because they are
in combat, they only get a $450 break under the House bill. So what the
Republican House bill did is to say people who go to Iraq and get
combat pay get a less child credit.
We want to fix that problem. I think probably the Republicans want to
fix that problem too, but they just refuse to do it because you want to
hold it hostage to the tax breaks for their rich pals, and that is
wrong. And the reason we have come down here is we are not going to
give up on this until these kids and their parents get this tax credit,
and we are going to make sure America knows about this travesty to get
this done. I thank the gentleman from New York (Mr. Crowley) for
sticking on this.
Mr. HERGER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, my friend is incorrect. The House bill does not give any
benefits to the wealthiest 1 percent of families because the wealthiest
are not eligible for the child credit. Our bill benefits low-income and
middle-income families who are left out of the Democrat motion to
instruct.
Mr. Speaker, I reserve the balance of my time.
Mr. CROWLEY. Mr. Speaker, does the gentleman have any additional
speakers? I reserve the right to close.
The SPEAKER pro tempore (Mr. LaHood). The gentleman from New York
(Mr. Crowley) is prepared to close. The gentleman from California (Mr.
Herger) may proceed.
Mr. HERGER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, in conclusion, this House passed a good bill to improve
the child tax credit and to provide tax relief to our brave men and
women in the Armed Forces.
Now is not the time to abandon what we have already done. We should
continue to work with the other body to resolve this issue, but we
should not settle for a bill that is inferior to what was already
passed by this House. Hardworking families and the military men and
women who preserve our freedom deserve tax fairness today more than
ever. Let us show our support for the House bill by rejecting this
motion to instruct.
Mr. Speaker, I yield back the balance of my time.
Mr. CROWLEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, in closing, let me say in response to the gentleman from
California (Mr. Herger), under the House bill that passed that I voted
against, I actually, myself, personally, would become eligible for the
tax credit. I would only become eligible for it if the House bill
passed. I did not ask for it. I am not asking for it. I do not need it,
but I have constituents in my district who are asking me for it. They
do need it.
I do not have a rich district. I do not have a wealthy district. I
have a lower- to lower-middle-class district, and they are asking for
this assistance.
Today I rise in support of these working families and of their
children and of similar families all across this country from New York
City to California, from the State of Maine to Florida and Texas.
Today, I rise in support of African American and Latino families in
[[Page H9349]]
my district and across this Nation as well. Today I rise in support of
our military families who are serving our country while trying to
provide for a better life for their children.
The Republican child tax credit package hurts all of those groups. A
child tax credit package that goes out of its way to exclude those that
need it the most, the families that need it the most, that it is
actually most meaningful to, is not helpful to these families in our
country, a child tax credit package that goes out of its way to exclude
those that would actually spend the tax credit, putting those funds
back into our stalled economy, it just simply is not helpful to those
families and to our country that needs that stimulus. That is not a
family-friendly package and that package is not helpful to our economy.
Yet, my colleagues on the other side are still telling us that higher
deficits and more tax cuts for the rich are the way to end this Bush
recession. Republicans are still telling us that tax cuts for the rich
are what will help working families. Well, the statistics tell us a
different story and the people of my district, they understand there,
and they know better.
Since President Bush took office, America has lost over 3.3 million
jobs. That is 3.3 million people hurt by reckless tax policies of this
administration and this Republican Congress. And yet the Republicans
still have the audacity to tell the working African American and Latino
families that they, by and large, will be excluded from yet another tax
break. Mr. Bush and House Republicans have the audacity to tell many
working families who serve our military that they too will be excluded.
Mr. Bush has the audacity to charge those families suffering the most
under an economy he created and says he will not help.
The Republicans have given us 3.3 million new unemployed in this
country. The Republicans have given us a $500 billion deficit this
year. The Republicans have given us high interest rates on our homes
and cars through reckless economic policies. Yet the Republicans refuse
to give American working families and the enlisted military personnel a
much needed tax cut. It is unconscionable, and I urge my colleagues in
this House to support this motion before us.
Mr. BACA. Mr. Speaker, I rise in support of Representative Crowley's
motion to instruct the conferees to grant the Child Tax Credit to
thousands of needy families wrongfully ignored by the Republican
majority.
When the conference report on the Republican tax cut was finished,
the dividend tax cut got bigger and tax credits for working families
got smaller. It is unconscionable that we are willing to sacrifice
Child Tax Credits for the poorest in our society, so that we can give
more money to the wealthiest.
Six and a half million families in this Nation earn $10,500 to
$26,625 per year. If we do not pass a child tax credit for the
families, 19 million children will be ignored. In my home State of
California, nearly 1.3 million working families will not receive a
child tax credit because the Republicans needed to give President Bush
more billionaire tax cuts. These working families need relief!
By not passing a complete child tax credit, 250,000 kids of active
duty military families, many of whom are right now fighting overseas,
will be ignored. Military families need relief!
Our economy is in desperate need of stimulus. Unemployment across the
Nation has remained over 6 percent and the Hispanic unemployment rate
remains above 7.5 percent. America's families are suffering.
Unemployment is up. Wages are down. Poverty is on the rise. More
Americans can no longer afford health care.
America's families need our help. They need a child tax credit!
During this time of economic downturn we must not leave out those who
are working harder for less pay or those who have recently joined the
ranks of the unemployed. It is time to put working families back into
the equation.
I urge my colleagues to support Representative Crowley's motion to
instruct.
Mr. CROWLEY. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. Without objection, the previous question is
ordered on the motion to instruct.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to instruct
offered by the gentleman from New York (Mr. Crowley).
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mr. CROWLEY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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