[Congressional Record (Bound Edition), Volume 149 (2003), Part 4]
[House]
[Pages 5208-5209]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 PRESIDENT BUSH'S JOBS AND GROWTH PLAN

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Texas (Mr. Hensarling) is recognized for 5 minutes.
  Mr. HENSARLING. Mr. Speaker, I rise today in strong support of 
President Bush's plan to grow the economy, create jobs, and provide 
meaningful tax relief to hardworking Americans.
  In these troubling times, some critics across the aisle believe that 
the answer to our Nation's problems is to take a greater slice of 
family income pie. President Bush and I, instead, want to grow the size 
of that pie by growing the economy. When economic growth occurs, 
businesses generate greater profits, more people go to work, they earn 
better wages, and they have greater opportunities. To encourage 
individuals and families to risk their time and to risk their savings 
on that new software idea, that transmission repair company, that 
hamburger stand, that new enterprise, Mr. Speaker, they need tax 
relief. They need permanent tax relief. And the President's plan does 
just that.
  We have historical evidence that tax relief works. It is not just 
faith, it is evidence. Each time our Nation has significantly reduced 
income tax rates, economic growth has followed. When President Reagan 
lowered rates in the 1980s, it fostered economic growth averaging 3.2 
percent a year, and Federal revenues actually increased, I repeat, 
increased by 20 percent. When President Kennedy lowered tax rates in 
the 1960s, we had several years of real economic growth of 5 percent. 
And the same is true of tax relief during the 1920s, where economic 
growth averaged 4.3 percent.
  History has shown us that tax relief can spur economic growth and can 
allow hardworking American families to keep more of what they earn and 
increase government revenues.
  Now, Mr. Speaker, some say that tax relief is too expensive. But in 
fact, under a worst-case scenario, if the President's plan generates no 
economic growth at all, the package would account for only 5 percent of 
the $2.2 trillion budget proposed for next year. Yet as many of my 
colleagues from across the aisle decry deficits and tax relief

[[Page 5209]]

on the one hand, they are the first to demand more Federal spending on 
the other. Instead of focusing on the 5 percent of the budget that 
constitutes tax relief, perhaps we should all focus on the 95 percent 
which constitutes Federal spending, much of which is pure waste and 
duplication.
  Today, we have nearly twice as much inflation-adjusted Federal 
spending per family than when I was born. Do we really need that much 
Federal Government? And over this same period, inflation-adjusted 
Federal spending has grown seven times faster than our family budgets. 
Is it any wonder that our family tax burdens are near an all-time high? 
A middle income American family can now pay up to 40 percent of their 
income in Federal, State, and local taxes. That is not tax fairness.
  The President's economic program is tax fairness because it provides 
tax relief to taxpayers, especially middle income Americans.

                              {time}  1500

  Mr. Speaker, 46 million married couples would keep over $1,700 of 
what they earned, enough to pay two mortgage payments. Now that is a 
housing program. Thirty-four million families with children would keep 
an additional $1,500, enough to purchase a new personal computer for 
their children. That is an education program. Six million single women 
with children would keep $541, which could purchase a month of day-
care. That is a child care program.
  Middle-income families would also receive additional relief from 
accelerated reduction of the marriage penalty, a faster increase in the 
child care tax credit, and immediate implementation of the new, lower 
10 percent tax bracket.
  To boost investor confidence and encourage investment, the 
President's plan also eliminates the unfair double taxation on 
dividends. The elimination of this unfair double taxation on dividends 
is expected to produce a one-time increase in equity values of up to 5 
percent, at a time when we desperately need to increase stock values 
and consumer confidence.
  Mr. Speaker, about half of all dividend income goes to our seniors 
who often rely on those checks for a steady source of retirement 
income.
  Mr. Speaker, we cannot tax, spend, or sue our way into prosperity. We 
can only grow our way into prosperity. I strongly encourage Members to 
support the President's jobs and growth plan.

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