[Congressional Record (Bound Edition), Volume 145 (1999), Part 1]
[Extensions of Remarks]
[Page 300]
[From the U.S. Government Publishing Office, www.gpo.gov]



                        IT'S TIME FOR A TAX CUT

                                 ______
                                 

                          HON. JOE KNOLLENBERG

                              of michigan

                    in the house of representatives

                       Wednesday, January 6, 1999

  Mr. KNOLLENBERG. Mr. Speaker, as we begin the new year and the 106th 
Congress, there are many things that the American people can be 
optimistic about. Our economy is growing at a brisk pace. Unemployment 
is low. Inflation is almost non-existent. And interest rates are down.
  While more Americans are working and earning more money because of 
our strong economy, excessive taxation is making it harder for families 
to get ahead. When looking at the burden taxes impose on the lives of 
the American people, I am reminded of an observation offered by Mark 
Twain. This great American author asked, ``What's the difference 
between a taxidermist and a tax collector?'' He answered, ``the 
taxidermist takes only your skin.''
  The average family in America is currently paying more money in taxes 
than it spends on housing, food, and clothing combined. In fact, when 
State and local taxes are added to Federal taxes, the average family 
sees 40 percent of its income confiscated by the Government. This is 
outrageous. Working Americans should be allowed to take care of their 
basic needs before being asked to finance the Government.
  With the budget balanced and the Federal Government projected to run 
a surplus of $1.6 trillion over the next 10 years, the 106th Congress 
has a historic opportunity to cut taxes so working Americans can keep 
more of their hard-earned money.
  Today, I have introduced five bills which ease the burden of Federal 
taxation. These bills will strengthen families and promote economic 
growth by cutting income taxes and removing the penalties imposed on 
saving and investing.
  The first bill in my tax relief package is entitled the Taxpayer 
Relief Act. This bill cuts marginal income tax rates by 10 percent 
across the board. This broad-based tax cut benefits every working 
American and rewards hard work and success.
  The next bill in my package is the Taxpayer Fairness Act. This bill 
allows taxpayers to deduct the amount of payroll taxes they pay each 
year from their Federal income taxes. It's simply wrong to tax people 
on income they never receive. This bill ends this ridiculous policy and 
will benefit millions of middle income taxpayers, many who pay more in 
payroll taxes than they pay in income taxes.
  The third bill in my package is the Job Creation Act. This bill will 
stimulate investment in new businesses and good paying jobs by 
eliminating the capital gains tax.
  The fourth bill in my package is the Senior Citizen Tax Relief Act. 
This bill contains three provisions. It repeals the 1993 tax increase 
on Social Security benefits. It eliminates the earnings limitation for 
Social Security benefits, thereby encouraging more seniors to continue 
working and contributing to our Nation's economy. And it eliminates the 
taxes on estates and gifts. While death and taxes may be the only two 
certainties of life, any individual shouldn't have to encounter both at 
the same time.
  The last bill in my package is the Marriage Penalty Relief Act. Under 
current law, approximately 21 million married couples pay about $1,400 
more a year in taxes than they would if they were single. My bill 
provides some relief from this stiff penalty by increasing the standard 
deduction provided to married couples so that it equals twice the 
amount of the deduction provided to single taxpayers.
  Mr. Speaker, the American people are paying too much in taxes and 
they want their Members of Congress to do something about it. The five 
bills I have just discussed provide significant tax relief to the 
American people. These tax cuts benefit every working American. They 
strengthen working families. They promote economic growth. And they 
restore fairness and simplicity to the tax code.
  I urge my colleagues on both sides of the aisle to join me in this 
fight for lower taxes and yield back the balance of my time.

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