[Congressional Record Volume 152, Number 66 (Wednesday, May 24, 2006)]
[Extensions of Remarks]
[Page E953]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   H.R. 4297, TAX INCREASE PREVENTION AND RECONCILIATION ACT OF 2005

                                 ______
                                 

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                        Wednesday, May 24, 2006

  Ms. McCOLLUM of Minnesota. Mr. Speaker, I rise in strong opposition 
to the Republican's tax reconciliation bill. This legislation is a 
cynical tax giveaway for the wealthy paid for by slashing services 
critical to families and heaping debt on future generations.
  H.R. 4297 includes $70 billion in tax breaks--primarily an extension 
of capital gains and dividend tax cuts. Almost half of that $70 billion 
will benefit those making over $1 million a year. In Minnesota, 68 
percent of the benefit of this bill will go to only 2 percent of 
taxpayers. Those making $200,000 or more will see an average benefit of 
over $6,000, while those making under $75,000 will see a return of only 
$55 on average.
  The Majority party has focused tax relief on a chosen few rather than 
providing tax relief for everyone. Even though tax cuts passed in 2001 
and 2003 have already provided millionaires with an average tax cut of 
$109,000, Republicans have again chosen to prioritize further gains to 
those who need it the least at the expense of middle-class families. 
The alternative minimum tax, which is a critical problem facing middle-
class families, is shortchanged by this proposal. This bill provides 
only a one-year extension instead of honestly dealing with this issue. 
In addition, because these tax cuts are partially paid for by cuts to 
student loans and health care, working men and women are paying twice 
in this Republican plan.
  This bill also fails to address critical issues such as extending the 
research and development tax credit, the tax deduction for student 
loans, and the deduction of state and local taxes--provisions that make 
an enormous difference in the lives of families across the country. For 
example, the student loan tax deduction provides opportunities for more 
families to access higher education, resulting in better paying jobs, 
which fuels our economy.
  Our national debt is nearly $9 trillion. In the last 5 years, 
President Bush has borrowed more than $1 trillion from foreign 
governments and financial institutions. It is clearly not the time to 
add billions of dollars to the debt in order to provide more wealth for 
those most fortunate. This is a fiscally and morally irresponsible plan 
and should be rejected.
  Mr. Speaker, this bill does not reflect the priorities of Minnesota 
or American families. With our country facing a growing deficit, a 
stagnant job economy, and spiking gas prices, it is not the time for 
reckless spending through tax cuts. Democrats have offered an 
alternative that targets relief for families without adding to the debt 
burden facing our children and grandchildren.
  I urge my colleagues to oppose this reckless bill and support 
economic policies that benefit families, increase our competitiveness, 
and reduce our national debt.

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