[Congressional Record (Bound Edition), Volume 147 (2001), Part 7]
[Extensions of Remarks]
[Pages 9935-9936]
[From the U.S. Government Publishing Office, www.gpo.gov]



    CONFERENCE REPORT ON H.R. 1836, ECONOMIC GROWTH AND TAX RELIEF 
                       RECONCILIATION ACT OF 2001

                                 ______
                                 

                               speech of

                             HON. ED PASTOR

                               of arizona

                    in the house of representatives

                          Friday, May 25, 2001

  Mr. PASTOR. Mr. Speaker, I am opposing the passage of H.R. 1836. This 
legislation is fiscally irresponsible and, contrary to its official 
title, will not result in economic growth, but could have a significant 
negative impact on our economy.
  I support a tax cut. I have supported a tax cut since this process 
began in February. But this is the wrong tax cut at the wrong time. The 
House of Representatives and the President started this process all 
wrong. The President submitted this massive ten year tax cut of 
$1,600,000,000,000 before he had even submitted a budget for Fiscal 
Year 2002. And the House proceeded to pass this huge tax cut, without 
having passed a budget. This is completely irresponsible. It is the 
equivalent of a family taking money out of circulation for the next ten 
years before they have sat down and decided how much they need this 
year for health care costs, how much they need to educate their 
children, how much they need to protect their home, how much they need 
for transportation, or how much they need for food, shelter, and 
clothing. Again, Mr. Speaker, I had no problem with cutting taxes, I 
just wanted it done in a responsible manner and after a budget had been 
passed.
  Once the House had passed a budget, the leadership continued on its 
blind path of irresponsibility by insisting on the President's $1.6 
trillion cut. I supported a much more realistic plan, which would have 
divided the on budget surplus, the surplus after contributions to the 
Social Security and Medicare Trust Funds are deducted, into thirds. 
Under this plan, the $2.7 trillion surplus could have been divided into 
$900 billion for a tax cut, $900 billion to further pay down the 
National debt, and $900 billion to help fund National priorities such 
as education, veterans' health care initiatives, a prescription drug 
plan for our elderly, transportation infrastructure needs, disaster 
relief, and National defense. But now, many of these programs will go 
lacking because H.R. 1836 cuts $1.35 trillion, almost half a trillion 
dollars more than the plan I supported.
  This is only the broad perspective of this legislation, however. We 
must also look at it from the immediate effects it will have on the 
individual taxpayer. In reality, the impact on middle income Americans 
is virtually zero.
  I support elimination of the Marriage Penalty. But, adjustments to 
the Marriage Penalty do not even begin until 2005. This priority of 
almost every Member of the House and Senate is not dealt with for four 
years, and not

[[Page 9936]]

completely eliminated for eight years. The adjustment to the Estate Tax 
is so minuscule until its elimination in 2010 that it will have 
virtually no impact on those family farmers and small business onwers 
who need relief right now. If you own a small business or family farm, 
you better do all you can to stay alive until 2010.
  But finally, Mr. Speaker, the real changes to our tax code, the 
changes that have the most effect and impact, are for those individuals 
and families with adjusted gross incomes of more than $136,000 a year. 
The people making these large salaries will experience virtually all 
the tax cuts in this misguided legislation. The majority of my 
constituents, hard working taxpayers who fall into the 15% tax bracket, 
receive virtually nothing. Nothing! In fact, the 15% bracket does not 
change, except for the marginal $300 savings they will see from the 
creation of the 10% bracket on their first $6,000.
  Accordingly, the people in my district who need tax relief the most, 
receive none. The small business owner and small farmer do not get any 
Estate Tax relief, the married couples of the Second Congressional 
District of Arizona don't receive any relief from the penalty for four 
years, and those families making less than $45,200, those in the 15% 
tax bracket, get virtually nothing, while the top one percent of 
taxpayers in our Nation, those making more than $373,000 a year, get 
45% of the tax relief
  This is an unfair tax bill which I am not able to support.

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