[Congressional Record (Bound Edition), Volume 149 (2003), Part 5]
[House]
[Pages 6455-6456]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  TAX CUTS AFFECT NEW JERSEY PROGRAMS

  The SPEAKER pro tempore. Pursuant to the order of the House of 
January 7, 2003, the gentleman from New Jersey (Mr. Pallone) is 
recognized during morning hour debates for 5 minutes.
  Mr. PALLONE. Mr. Speaker, this week, probably tomorrow and Thursday, 
we will probably have a final vote Thursday on the Republican budget 
resolution in the House; and I wanted to speak to that resolution today 
because I think it really sets a terrible precedent for where we are 
going in terms of spending programs, tax cuts, as well as the economy 
in general, which as we all know has experienced a major downturn in 
the last year or so.
  My major point is this, that essentially what the President is doing, 
what the Republicans are doing in this budget is to give huge tax cuts, 
primarily to wealthy Americans and to

[[Page 6456]]

corporate interests. As a result of that, there will be a major slash 
of programs that are important to the average American and also a major 
increase in the deficit. A few years ago under President Clinton we 
actually had a surplus with the budget. We were paying down our debt. 
We were paying back the Social Security and Medicare trust funds. Now 
the opposite is happening.
  With this Republican budget, which the President essentially 
supports, we are building huge deficits once again. We are borrowing 
from the Social Security trust fund. We are borrowing from the Medicare 
trust fund. And those two retirement security programs, basically 
Social Security and Medicare, the day when they will go broke or will 
run out of funds will come closer and closer because of the drain on 
those trust funds and their resources.
  But, Mr. Speaker, I was pleased to see that over the weekend, in fact 
Sunday, in the New York Times there was an editorial that basically 
says how I feel with regard to the Republican budget and gives some 
information of which I would like to read certain sections.
  It is entitled, ``How Tax Cuts Trickle Down.'' In the beginning it 
says, Mr. Speaker, ``In a sorry effort to protect President Bush's tax 
cut mania, the Republican leaders of Congress have unveiled proposals 
for slashing the most basic government programs for years to come. With 
rationalizations running from tragic to ludicrous, House budgeteers 
envision cuts of $470 billion in Medicare, Medicaid, education, child 
care and other vital programs, from transportation to health care, the 
environment, to science research.'' And it goes on. And I will go back 
and give other sections of it, Mr. Speaker.
  But I just wanted to give Members an idea of how these Republican 
cuts in the budget would specifically affect my State of New Jersey. 
And keep in mind that the only reason these cuts are being made is to 
pay for tax cuts to wealthy Americans and corporate interests.
  An analysis of the President's budget shows drastic cuts in critical 
services in New Jersey; and the terrifying fact is that the House 
Republican budget approved last week in the committee, which we will be 
voting on tomorrow or Thursday, is even worse than the President's 
budget in this respect in what it slashes.
  In New Jersey, the President's budget cuts $9.9 million for after-
school programs leaving 14,110 children without after-school services 
through the 21st Century Community Learning Center's program. The 
President's budget cuts $1.8 million in teacher-quality funding for New 
Jersey and cuts funds nationally for grants to improve teacher quality 
by $80 million.
  Now this is the President who has said that no child should be left 
behind. The President's budget cuts more than $27 million in Federal 
highway funding for New Jersey. The President's budget slashes clean 
water funding for New Jersey by more than $20 million this year.
  This is so important to my district because my district is primarily 
along the shore, along the ocean, the Raritan Bay and the Raritan 
River; and we are dependent on this Federal funding to keep our waters 
clean and for sewage treatment.
  The President's budget cuts more than $3 million in low-income home 
energy assistance for New Jerseyans and the President's budget cuts 
more than $4 million in community service block grants which provide 
local organizations the funds to help reduce poverty, revitalize low-
income communities, and provide families with the help they need to 
become fully self-sufficient.
  Now, I could go on and on, Mr. Speaker; but I do not want to keep 
stressing what is happening in my home State, but I have to say that 
this is happening all over the country.
  Now, why are we doing this? Well, the President says it is because of 
tax cuts. And if I could go back to the New York Times, they say, ``The 
estimated shortfall,'' this is the deficit now, ``of $2.7 trillion 
could have been an $890 billion surplus but for the Bush proposal, 
according to the Congressional Budget Office.''
  So the fact of the matter is, the reason we will have a deficit 
because of the President's budget is because of tax cuts. The next $1.4 
trillion cut geared to the affluent will average $80,000 a year for 
millionaires. So what we are seeing, Mr. Speaker, is primarily we are 
going into deficit and slashing these programs to pay for tax cuts for 
the wealthy. The President has suggested otherwise, but there is 
another New York Times article that gives the specifics and I just 
wanted to read it to you.
  It says, ``The average tax cut is over $1,000,'' this is what the 
President is saying, ``because a few rich taxpayers would get such 
large reductions.'' For example, for households with incomes over 
$200,000, the average tax cut is $12,000; but if you are making less 
money, you will get about $300.

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