[Congressional Record (Bound Edition), Volume 149 (2003), Part 8]
[House]
[Pages 10969-10975]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  REPUBLICANS' JOBS AND GROWTH PACKAGE

  The SPEAKER pro tempore (Mr. Mario Diaz-Balart of Florida). Under the 
Speaker's announced policy of January 7, 2003, the gentleman from South 
Carolina (Mr. Wilson) is recognized for 60 minutes as the designee of 
the majority leader.
  Mr. WILSON of South Carolina. Mr. Speaker, I rise tonight with 
several of my colleagues in support of the Republicans' jobs and growth 
package, H.R. 2, which we are scheduled to vote on tomorrow; and in 
fact, this vote is so important, I am really going to be missing a very 
significant event in South Carolina.
  We are very proud that President George W. Bush is going to be 
commencement speaker tomorrow at the University of South Carolina for 
graduation. I am just so proud of our president there, President 
Sorenson, what he has done for our institution, the trustees, Mack 
Whittle, Miles Loaholt, Mark Buyck, Eddie Floyd. They are working so 
hard to make the University of South Carolina, my alma mater from law 
school, one of the best universities in the United States; and 
certainly having our President there tomorrow, I am just so proud, and 
I know that my wife, Roxanne, will be right on the front row with our 
sons Julian and Hunter and Alan to encourage the President.
  Our economy is hurting and it needs an immediate boost. House 
Republicans believe the best way to get the economy back on track is to 
allow Americans to keep more of their own money, and I heard a few 
minutes ago that indeed it was not the public's money, it was not the 
people's money; but I know so well that, indeed, it is the people's 
money, and that is the first fact that we should address; and I 
appreciate good people like Jerry Bell of the Lexington County 
Chronicle

[[Page 10970]]

making that point almost every week in his publication.
  This will give the economy an immediate shot in the arm by 
accelerating tax relief from the marriage penalty, increasing the child 
tax credit and providing working families with more of their hard-
earned dollars through accelerated income tax relief.
  Furthermore, with sizeable, long-term tax relief on capital, 
businesses will receive investment incentives that will help create 
more jobs. This Republican plan is estimated to create 1.2 million jobs 
by the end of 2004 alone and will create many more in the years to 
come.
  On the other side of the aisle, House Democrats are talking about a 
government growth package. It busts a $30 billion hole in the budget, 
guts the Republican child tax credit increases, and it weakens job 
growth by watering down Republican tax relief for small businesses. 
Once again, the Democrats' answer to every problem, raise taxes and 
spend more.
  Americans are already overtaxed. Americans for Tax Reform, an 
invaluable nonprofit group headed by the visionary Grover Norquist, has 
tracked the tax burden in a way that puts it in proper perspective. 
Each year, Americans for Tax Reform determines the cost to government 
date which is the average date at which every American worker has 
earned enough to pay his or her share of taxes imposed by Federal, 
State and local governments. The cost to government date 2002 was July 
1, representing the largest tax burden since 1996.
  Today, we are working a full 6 months just to give Uncle Sam his 
yearly check before we can even begin to earn enough to pay for food, 
health care, medicine, housing, clothing, college tuition, car payments 
and all the other needs that we have to provide for our families.
  My friend and former Congressman, the gentleman from Oklahoma (Mr. 
Watts), put it best when he said, ``Americans are taxed when we turn on 
a light. We are taxed when we use the phone. We are taxed when we eat 
lunch. We are taxed when we do brunch. Moms are taxed at the gas pump 
when they fill the tank to drive the kids home from a little league 
game. Dads are taxed when they try to save a few bucks for retirement 
in order to provide for their families, and Grandma and Grandpa are 
taxed for having the audacity to die.''
  Ronald Reagan was even more blunt and always correct when he 
described the government's economic policy this way, ``If it moves, tax 
it.''
  President George W. Bush understands that Americans are overtaxed. 
President Bush also understands that the only way to increase jobs in 
America is to allow individuals and small businesses to keep more of 
their own money to invest in our economy.
  The gentleman from California (Mr. Thomas), the chairman of the 
Committee on Ways and Means, has crafted a very wise and sensible bill 
that takes the best solutions of President Bush's proposals, and I urge 
all of my colleagues to vote for this bill tomorrow.
  Americans have given Republicans a tremendous opportunity to lead on 
issues that affect every working family. We must not squander this 
moment and work to bring them real tax relief. Let us hold true to the 
commission given by President Ronald Reagan.
  We need true tax reform that will at least make a start toward 
restoring for our children the American Dream, that wealth is denied to 
no one, that each individual has the right to fly as high as his 
strength and ability will take him.
  At this time, I will be yielding to the gentleman from North Carolina 
(Mr. Hayes). He is a very respected member on the Committee on Armed 
Services. He also serves on the Committee on Transportation and 
Infrastructure, the Committee on Agriculture; and I know firsthand the 
respect that his constituents have for him.
  Last year, I went with my sons Julian and Hunter door to door in his 
hometown of Concord, North Carolina; and that is where one really finds 
out what people think of their local Congressman, and I found out that 
he was a person who was well thought of. He was highly respected and my 
colleagues will see tonight what a knowledgeable and fine person the 
Congressman from North Carolina is.
  Mr. HAYES. Mr. Speaker, I want to thank my good friend and colleague, 
the gentleman from South Carolina (Mr. Wilson), for yielding time; and 
if I may, I would like my colleague to yield just a few moments of time 
to the gentleman from Pennsylvania (Mr. Murphy), who has a very 
important issue that he wants to raise before we continue to discuss 
the important issue of how can we in the U.S. Congress allow our folks 
back home to keep more of their own money.
  Mr. MURPHY. Mr. Speaker, will the gentleman yield?
  Mr. WILSON of South Carolina. I yield to the gentleman from 
Pennsylvania.


                         Suicide Awareness Week

  Mr. MURPHY. Mr. Speaker, I appreciate the gentleman yielding to me.
  These issues about creating jobs and dealing with the economy are 
extremely important to families. I would just like to take a couple of 
moments to talk about another important issue to families.
  Later on the floor this evening, one of our other colleagues, the 
gentlewoman from California (Mrs. Napolitano), will also be speaking; 
and she and I have been working together to establish a Mental Health 
Caucus in the U.S. Congress, and I am proud to co-chair that caucus 
with her.
  The goal of the Mental Health Caucus is to raise awareness both in 
Congress and among the public of the importance of mental health; and 
it is fitting that this week we speak because it is Suicide Awareness 
Week, and it is really the first issue that this caucus is taking up on 
speaking on the floor.
  Every 18 minutes someone in this country takes their own life, and 
suicide is the 11th leading cause of death in the United States and 
third leading cause of death among 15- to 24-year-olds. The American 
Society of Suicidology found that 4 to 8 percent of adolescents 
attempted suicide within the last 12 months, and data from the Centers 
for Disease Control and Prevention indicate that half a million teens 
attempt suicide each year.
  In 2000, suicide attempts outnumbered homicides by five to three. In 
that same year, in my home State of Pennsylvania, 1,356 people took 
their own lives. As a psychologist, a husband and a father, I find 
these numbers disturbing, as does everybody else who works in this 
Chamber.
  Everyone knows someone who has been depressed in any given year. In 
fact, about one out of every 10 adults in this country suffers from 
some form of depression. Every family knows someone who has suffered 
from this. For those suffering from severe depression, without 
treatment, nearly one in six will commit suicide.
  The good news is that suicide can be prevented if one recognizes the 
signs. People commit suicide when they are overwhelmed with a sense of 
hopelessness and are unable to see alternative solutions to problems. 
Suicidal behavior is often linked to depression or drug or alcohol 
abuse. These are not the worried well, but these are people whose life 
circumstances are overwhelming or they have a physiologically based 
depression or mental illness that leaves them feeling that the only way 
to end their pain is to end their life.
  Those who have suffered the loss of a loved one from suicide know the 
pain does not end with death. The family members and friends will feel 
the loss, perhaps triggering their own life struggle to come to terms.
  When someone tells you they are thinking of suicide, it is very 
important that everyone take them seriously and get them professional 
and medical help. In fact, if someone has reason to believe that, they 
should call 911 or the national suicide hotline which is 1-800-SUICIDE.
  I would like to mention other dangers include talks of hopelessness, 
helplessness, worthlessness, preoccupation with death, loss of interest 
in things that a person cares about or giving away valued objects as if 
preparing to say good-bye.
  In sum, danger signs may also take the form of engaging in risky or 
dangerous behavior, like teens who take

[[Page 10971]]

too many chances with fast cars or drugs or alcohol.
  I would like to highlight for just a moment here some of the things 
happening in my home State. Since the 1980s, Pennsylvania has made a 
strong effort towards preventing suicide in youth. The Commonwealth 
Student Assistance Program was created in 1985; and core teams in each 
secondary school consist of teachers, principals, school counselors, 
school nurses, psychologists and social workers from this program 
called SAP; and they work with identifying students and helping them.
  They also have Service for Teens at Risk, otherwise known as STAR, to 
address problems of teen suicide and violence. They serve children in 
Pennsylvania and West Virginia.
  I would like to make one other note here, too, that although I 
focused on suicide among our youth, a common misperception is that 
suicide rates are highest among the young. However, it is the elderly, 
particularly elder white males, with the highest rates. White men, 85 
and older, have suicide rates of six times that of the overall national 
rate.
  If we are going to address the problems of suicide, everyone needs to 
recognize the warning signs. Parents need to talk to their children. 
Adults and others need to talk to their parents.
  This brings us to the underlying important issue of mental health 
care. Without question, having major depression increases the risk for 
suicide, and anyone suffering from depression in this country must 
recognize that depression is a treatable disorder; and we in Congress 
can do more to improve access to mental health care.
  I know that others will be talking about this later tonight, and I 
appreciate the gentleman yielding on this during this important time 
when we are speaking about families on many levels. It is important to 
know we do care about the family on every level, what happens to them 
mentally and emotionally, socially, economically. All these things are 
the business of Congress, and they are the business of government; and, 
again, I thank the gentleman for the time.
  At this point, I will insert for the Record my full statement.
  I join my colleagues on the floor tonight to call attention to a 
health care epidemic that claims the lives of three-quarters of a 
million Americans a year: suicide. This is ``Suicide Awareness Week,'' 
and it's an important reminder why it's so important for parents, 
educators, and children to learn the signs of depression and suicide.
  I'd like to first take a moment to thank my colleague, Mrs. 
Napolitano of California, for her hard work in establishing the 
Congressional Mental Health Caucus, and I'm proud to be co-chair of 
that Caucus with her. The goal of the Mental Health Caucus is to raise 
awareness, both in Congress and among the public, of the importance of 
mental health.
  It is fitting that suicide awareness is the first issue that the 
Caucus takes up by speaking on the Floor today. Every 18 minutes, 
someone in this country takes their own life. Suicide is the 11th 
leading cause of death in the United States, and the 3rd leading cause 
of death among 15-24 year olds. The American Society of Suicidology 
found that 4 to 8 percent of adolescents attempted suicide within the 
last twelve months. Data from the Centers for Disease Control and 
Prevention indicates that a half-million teens attempt suicide each 
year. In 2000, suicide deaths outnumbered homicides by 5 to 3, and that 
same year in my home state of Pennsylvania, 1,356 people took their own 
lives. As a psychologist, a husband, a father, I find these numbers 
deeply disturbing. Everyone in this Chamber knows someone who had been 
depressed--in any given year, about 1 out of every 10 adults in this 
country suffer from some form of depression. For those suffering from 
severe depression, without treatment nearly one in six will commit 
suicide.
  The good news is that suicide can be prevented if you recognize the 
signs. People commit suicide when they are overwhelmed with a sense of 
hopelessness and unable to see alternative solutions to problems. 
Suicidal behavior is often linked to depression or drug and alcohol 
abuse. These are not the ``worried well,'' but a person whose life's 
circumstances of physiologically-based depression or mental illness 
leaves them feeling that the only way to end their pain is to end their 
life. Those who have suffered the loss of a loved one from suicide know 
that the pain does not end with death. Family members and friends will 
feel the loss--perhaps triggering their own lifelong struggle to come 
to terms with the loss.
  If someone tells you they are thinking about suicide, you should take 
them seriously and get them professional medical help immediately. If 
you have any reason to believe that someone is in imminent danger of 
harming him or herself, call 911 or the national suicide hotline, 1-
800-SUICIDE. Other danger signs include talking about hopelessness, 
helplessness, or worthlessness; preoccupation with death, loss of 
interest in things that a person cares about, or giving away valued 
objects as if preparing to ``say goodbye.'' In some, danger signs may 
also take the form of engaging in risky or dangerous behavior.
  I'd like to take a few minutes to highlight some of the efforts my 
home State, Pennsylvania, has undertaken. Since the 1980's, 
Pennsylvania has made strong efforts toward preventing youth suicide. 
The Commonwealth Student Assistance Program (SAP) was created in 1985 
and operates in all 501 school districts. Every secondary school 
building is required to have a student assistance program. Core teams 
in each secondary school, consisting of teachers, principals, school 
counselors, school nurses, psychologists, social workers, and community 
liaisons from mental health and drug and alcohol agencies assist in 
identifying students at risk for suicide or other behavioral health 
problems.
  I am also proud of the accomplishments of the Services for Teens at 
Risk, commonly abbreviated as STAR-Center, in addressing problems 
related to youth suicide, depression, and violence. STAR-Center began 
in Pittsburgh in 1986, and is affiliated with the Western Psychiatric 
Institute and Clinic. The Center's clinic serves patients in West 
Virginia, Ohio, and Pennsylvania, and since 1996 has treated over 6,400 
children and adolescents at risk for suicide. Through its outreach 
program STAR-Center goes into communities throughout Pennsylvania to 
address suicide, depression, and other mental health issues our teens 
may face. And when a suicide or other tragedy does occur, STAR-Center 
staff consults with educators on how to provide postvention services. 
This is particularly important given the traumatic impact the death of 
a fellow student can have on his or her peers. The center also 
publishes STAR-Center Link, a newsletter featuring best practices on 
mental health treatment and violence prevention, and its ``Survivors of 
Suicide'' program is nationally recognized. I'd personally like to 
thank the staff of STAR-Center for their dedication to our youth.
  Although I've focused a lot on suicide among our youth, one common 
misperception is that suicide rates are highest among the young. 
However, it is the elderly, particularly older white males, who have 
the highest rates. White men 85 and older have suicide rate that is six 
times that of the overall national rate. If we are going to address the 
problem of suicide, everyone needs to learn to recognize the warning 
signs, parents need to talk to their children, and adult children need 
to talk to their parents.
  This brings us to the important underlying issue, mental health care. 
Without question, having major depression increases the risk for 
suicide. Anyone suffering from depression in this country must 
recognize that depression is a treatable disorder. And we here in 
Congress can do more to improve access to mental health care. 
Legislation has been introduced in the House to provide for Mental 
Health Parity, H.R. 953. I am proud to be a co-sponsor of this 
legislation, and I hope my colleagues will support this bill as well.


                        Jobs and Growth Package

  Mr. HAYES. Mr. Speaker, I thank the gentleman for bringing to our 
attention a vitally important part of our attempt to do everything we 
can for families in America, to strengthen those families and to 
provide them with the wherewithal they need to support this great 
country.
  The gentleman from South Carolina (Colonel Wilson) did spend time in 
my district. The gentleman's district and mine are very similar. We 
have some large cities, Columbia and Charlotte, Fayetteville; but we 
also have a tremendous amount of rural America that we represent in our 
districts, and as the gentleman and I spend time listening to our 
constituents, the themes are clear and consistent. National security 
and economic security through good jobs are the two issues that are on 
people's minds.
  I continue to refer to the gentleman as our colonel because our Armed 
Forces have distinguished themselves in ways heretofore never known. We 
are talking about the economy and jobs tonight, not only because it is 
so vitally important, but because we are

[[Page 10972]]

in the midst of a period of trial in America, the likes of which we 
have never seen.
  September 11, 2001, no one ever thought that would happen. The 
terror, the horror of that still sticks with us, our people, our 
families, and, yes, our economy. We are fighting a war on terrorism 
very successfully, and that is a most appropriate use of the money that 
our constituents work so hard to earn. That is a big issue as we 
discuss what tomorrow will be, a jobs creation, economic stimulus 
package.
  It is not a complicated matter. Whose money are we here discussing 
tonight? Are we discussing the government's money? I do not think so. 
The last time I checked, the government had no money except that money 
which was sent to us by our people back home.
  That being true, then the question very simply is, Whom do the people 
trust to spend that money most wisely? In my case, we do not talk in my 
district, and I am sure it is the same in my colleague's, that much 
about Democrats and Republicans, because obviously both constituencies 
are vitally important; and the Democrats in my district are very 
conservative. They care about their families. They care about 
education. They care about jobs.

                              {time}  2030

  Mr. Speaker, as I and other Members of Congress empower and enable 
our people at home to keep more of their money to spend on their 
education, their needs, then that money goes straight into the economy 
because there is not only a need for services and goods, there is the 
financial ability to buy those goods and services.
  Here we have a chart. This is the essence of our discussion tonight, 
creating new jobs. How do we do it? Fulfilling America's promise of a 
bright financial future for us, but more especially for future 
generations. I have a new granddaughter, 3 weeks last Monday night. 
Members can rest assured, I am concerned about future generations.
  The package that we are considering and will pass tomorrow creates 
over a million new jobs. A million new jobs or zero. What is the 
choice?
  Mr. WILSON of South Carolina. Mr. Speaker, I appreciate the gentleman 
bringing up the point about jobs.
  Joining us in this discussion is the gentleman from Pennsylvania (Mr. 
Murphy). I am very proud that he is a member of the Committee on 
Financial Services and the Committee on Government Reform. Additionally 
he serves on the Committee on Veterans' Affairs. He is a freshman, but 
as a freshman he has been the most recent of being truly in a tough 
campaign and finding out what the people think. I look forward to 
joining the Mental Health Caucus along with the gentleman. I am proud 
that the gentleman has taken that lead, and I yield to the gentleman 
from Pennsylvania (Mr. Murphy).
  Mr. MURPHY. Mr. Speaker, when I came to this town I found it to be 
very different. Back in Pennsylvania, it is not always one of those 
things that has such partisan disagreements as Republicans or Democrats 
or Independents. It is a matter of talking with people and finding out 
what is important to them. In that I would just like to relate a couple 
things. Whether it is rural communities in Washington County, 
Pennsylvania, or towns that are struggling along in Allegheny County, 
Pennsylvania, but Americans are concerned about basic things for their 
family. I hear them say they want some of their tax money back. Some of 
the issues that are going to be discussed in upcoming votes about 
increasing the child credit to a thousand dollars, to eliminate the 
marriage penalty, are so important to families so they can have money 
for rent, mortgages, and groceries. It is important because they know 
what their families need.
  Here we are battling within the Beltway, and most Americans do not 
care about Republicans or Democrats. They care about doing the right 
thing for their family. When they go to bed at night and when they wake 
up in the morning, that is what they are concerned about. Whether they 
have decent jobs is a big part of that. Some of the things that are so 
important are in this job package.
  They included aspects which will help small business. Having owned a 
small business for a few years, I know how important those aspects are. 
Again, many Americans may not appreciate such concepts as depreciation 
or small business expensing, but when you are a small business owner 
and you are taking the money that is really your family's money and 
investing it to create jobs for other employees, whether it is buying 
equipment, whether it is a computer or desk or building new office 
space, that is money that the family cannot use. They are making an 
investment, and when government says we would like you to take some of 
that money to create jobs, it means a tremendous amount to families to 
do that.
  I hope we can lay down the arms of battle and pick up the arms that 
embrace jobs, and do what is right for families. I believe many of 
these things here, again when we go back to the streets and the farms 
of America and ask them what they think, they like these ideas of 
creating new jobs and bringing some of that money back home so they can 
do what is best for their families.
  Mr. WILSON of South Carolina. Mr. Speaker, I thank the gentleman for 
his input. For a person who is leading a young family, the gentleman is 
making a difference trying to protect them for the future.
  As we discuss H.R. 2 tomorrow, the Jobs and Growth Tax Act of 2003, 
we are going to hear a lot of scare tactics and misinformation, but I 
would like to go over what the different points are of the act because 
I believe the American people will understand that this is beneficial 
again in creating jobs, creating opportunities for our young people, 
for persons of all ages to have a better life. I am so pleased that we 
have an opportunity to discuss it tonight, and then tomorrow to vote on 
it.
  The first point about the acceleration of the 2001 tax relief for 
individuals, the President achieved an historic cut in taxes, and this 
is being accelerated.
  The first point about the child credit, this will increase the child 
credit to $1,000 for 2003, 2004, and 2005. I am so aware of the costs, 
having raised 4 children myself, along with my wife Roxanne, and I know 
how helpful this is going to be to young families as they are able to 
care for their children and give them the opportunities they want.
  The 10 percent bracket, this will accelerate the expansion of the 10 
percent bracket for 2003, 2004 and 2005.
  Marriage penalty relief, this accelerates the expansion of the 15 
percent bracket and the increase in the standard deduction for married 
persons filing joint returns, again in the years 2003, for immediate 
relief, 2004 and 2005.
  Individual rate cuts, this accelerates the 2006 individual rate cut 
scheduled for 2003 retroactively. That means that immediately the 
people of the United States will receive benefits, and families could 
receive a benefit on average of $1,048. This is real money to families, 
and so helpful to raising children and meeting the needs that we have 
of car payments, mortgage payments, and medical bills.
  The increase in the individual alternative minimum tax, the exemption 
amount, this will be increased by $7,500 for single persons and $15,000 
for joint filers in 2003, 2004, and 2005.
  To help create the jobs, the business investment incentives that are 
in the bill which will be voted on tomorrow, first is bonus 
depreciation. This will increase the bonus depreciation from 30 to 50 
percent and extend it through December 31, 2005. This will encourage 
businesses to buy equipment to increase manufacturing which creates 
jobs. I want to commend the gentleman from Illinois (Mr. Weller), who 
helped lead the effort to provide for the bonus depreciation increase 
so that small businesses could grow.
  Then we have small business expensing for 2003 through 2007. That is 
an increase in the amount small businesses can expense. That would be 
immediately from $25,000 to $100,000. It increases the definition of 
small business

[[Page 10973]]

from $200,000 for capital purchases to $400,000, and the provisions are 
indexed for inflation.
  We all know that the backbone of business in America are small 
businesses. They provide in my State 85 percent of the employment. They 
are 99 percent of the businesses. So this is something I really am so 
pleased to have the support of the National Federation of Independent 
Businesses. We have excellent groups like NFIB which are letting 
Americans know how beneficial this will be.
  There is another business investment incentive and that is the net 
operating loss carryback which will extend the net operating loss 
carryback for 3 years, 2003 to 2005, and holds taxpayers harmless for 
the alternative minimum tax.
  Finally, another provision which will be voted on tomorrow is the 
dividend and capital gain tax reduction. This will reduce the tax rate 
on dividends and capital gains to 5 percent to taxpayers in the lowest 
tax bracket, and to 15 percent to all other taxpayers.
  I had an opportunity yesterday to meet Rick Wagner, who is the CEO of 
General Motors. In his presentation he indicated that there would be an 
increase in the value of the stock market of between 6 to 15 percent. 
This is hundreds of millions of dollars, billions of dollars which will 
benefit the American public.
  In fact, the dividend reductions in taxes, a majority of that are for 
the senior citizens of the United States. So I am so pleased that Mr. 
Wagner, who is building a home in Daufuskie Island in South Carolina, 
we welcome somebody who has been such an aggressive promoter of 
reducing taxes on the American people and to increase the value of the 
stock market, to increase and give incentives for more investment, more 
jobs for the American people.
  Those are the facts that are very clear. I know and I apologize if it 
sounded like I was an accountant, and I love accountants, but the 
American people need to know the facts. They will hear other 
information. The bottom line is this is beneficial to the American 
taxpayer.
  Mr. Speaker, I yield to the gentleman from North Carolina (Mr. 
Hayes).
  Mr. HAYES. Mr. Speaker, I might ask a series of questions, and ask 
that the chart with the tax breakdown be put up on the easel. The 
gentleman did a wonderful job of outlining the specific areas in which 
money would be created and put into the economy. The gentleman 
indicated all of the different pluses of this stimulus package.
  I think it would be instructive at this point in time to see where 
that money comes from. If you would point to the bottom figure, the top 
50 percent pays 96.09 percent of the tax bill. So if we are going to 
give people more of their own money back, we have to go where that 
money is in order to supply a stimulus, that fuel for the economic 
engine that creates jobs and creates revenue to drive this wonderful 
country forward. So I think it is very instructive for people to look 
at that as we continue this discussion.
  Earlier our colleagues on the other side of the aisle I think made 
just a little difference in the way you and I would look at things. 
Trying to phrase this kindly, we talk about deficits. You and I and the 
people in Columbia and Concord hate deficits. They and you and I have 
to balance our checkbook every month. We cannot spend more than we have 
or serious problems occur. That is not a serious question. That needs 
to stay on the table. Everybody agrees on that.
  The question becomes how do we create the revenue so this Federal 
Government can provide for the national defense of our young men and 
women who have done so well, and provide for the interstate highway 
system. There is the answer, we have to go where the money is. But our 
friends and folks at home would be interested to know that these new 
budget hawks, these new deficit reduction folks, and I am glad to see 
their new interest, there was a total a couple of weeks ago that was 
run up, a total of the amendments that they added to the budget bill. I 
have not seen it published, but the total of their additions, the folks 
that want to cut the deficit so and are so alarmed by the deficit, 
which we all hate, added over $1.6 trillion to that budget.
  I trust the people at home. I trust them to see through the 
subterfuge. We talk about stimulating the economy and creating jobs. It 
is our people using their common sense to solve problems to create jobs 
and to grow that economy.

                              {time}  2045

  Do not fall for the tax and spend. They have never seen a tax hike 
that they did not like here.
  Mr. WILSON of South Carolina. It is so obvious by the tax breakdown 
that the gentleman from North Carolina (Mr. Hayes) brought out and the 
points he brought out that we need to be promoting, as the President is 
doing, the jobs and economic growth plan. I want to quote the 
President's speech in Little Rock this week. He has clearly indicated 
that by growing the economy, that is how you reduce the deficit, not by 
spending more money, as the gentleman correctly indicated the other 
side is truly proposing, but to grow the economy. His direct quote was, 
``In order to offset any deficit, you've got to have more revenues. The 
best way to have more revenues is to encourage economic growth. The 
more economic growth there is, the more people are working, the more 
likely it is that you're going to get more revenues into the Treasury 
of the United States, and also to the individual States. I'm concerned 
about the deficit but I'm first and foremost concerned about that 
person looking for a job.'' That is what President Bush said this week 
in Little Rock, Arkansas. I am so proud that he has correctly 
identified what the gentleman just identified.
  Mr. HAYES. If the gentleman will yield further, earlier tonight we 
heard our colleagues talk about sending more money back to the States. 
My first question to the gentleman from South Carolina is, are the 
States better off if they are allowed to keep their own money and spend 
it there or are they better off sending it to Washington, us taking 
part of it and then sending the remains back? What do the people back 
home tell the gentleman? I bet I know the answer.
  Mr. WILSON of South Carolina. I had the great privilege of serving 
the people of South Carolina for 17 years in the State senate. In fact, 
the State budget is being debated probably as we speak tonight. I know 
that instead of just sending money back to the States, we have already 
had a revenue-sharing experience that did not work and so that is 
simply spending more money. What we need to do is what the President 
has proposed and, that is, create new jobs, create new opportunities 
for people to have incomes.
  I know that in South Carolina, we are very proud about the expansion 
of Michelin Tire Corporation in Lexington, South Carolina. There are 
three plants there producing wonderful jobs and wonderful tires for the 
people of America. We have worked hard in our State to attract foreign 
economic investment. We are very proud that in Spartanburg in the 
community of Greer that we have the BMW facility. All Z-3s in the world 
are made there, the X-5s. Every time I have had the opportunity to 
travel, I have been very proud to know that we have had the economic 
expansion of BMW in our State providing jobs. That is what we are 
trying to do in the bill tomorrow with H.R. 2, and, that is, to 
encourage economic investment in the United States, to provide jobs and 
to give families the ability to spend their own money.
  Mr. HAYES. I would like to ask the gentleman one more question. 
Another thing we heard earlier was that we are not helping the States. 
That is simply not true. Before the gentleman answers my question, let 
me make one more point. They talk about States who are cutting teachers 
and education, who are cutting prosecutors, who are cutting prison 
guards. My State is not cutting those vital services. They have choices 
to make. I do not want to send money back to States that are making 
those kinds of decisions. I do not think that is happening. But the 
gentleman has a chart before him that gives a

[[Page 10974]]

good illustration of how we in Washington are working to help our 
States. Would the gentleman describe that to our listeners at home, 
please?
  Mr. WILSON of South Carolina. This does indicate that under 
unemployment insurance, that the States have received $8 billion. This 
is from Federal funding. In 2002, only $2 billion of that was actually 
used. There was a surplus apparently of $6 billion. The bottom line is 
by creating jobs, what we are doing in the plan that we will be voting 
for tomorrow, we are providing for additional State revenue by sales 
tax. That is virtually a universal tax in the United States at most 
State levels and, that is, by providing for an increase in income, by a 
person having the ability to keep their own money, when they go to the 
store and buy products, when they are at Wal-Mart as I frequently am, 
that with the sales tax, that goes straight to the State. It goes for 
schools.
  Additionally, I am so pleased that this package includes a reduction 
in the capital gains tax. I can tell the gentleman from firsthand 
experience, until 16 months ago I was a real estate attorney. I know 
that by reducing the capital gains tax, and this has been a cause of 
the chairman of the Committee on Ways and Means, the gentleman from 
California (Mr. Thomas), for a number of years. By reducing the capital 
gains tax, this will help again create jobs. The first thing that will 
occur, because I ran into it, a number of people that I know, 
particularly elderly people, would not sell property they have, real 
property, because they felt like they were being overly taxed and they 
considered it an insult, whatever the percentage was. So by reducing it 
to 5 percent, what will occur is that people who are currently holding 
on to property simply because they do not want to pay a capital gains 
tax, they will sell that property. When they do sell the property, the 
first occurrence will be construction. I met with the homebuilders 
association this week. They are very supportive.
  The AGC and the ABC, the various construction interests, are very 
pleased that if we can have a sale of property and the construction, 
the jobs are created. This also is going to benefit local governments 
and State governments in that having a turnover of real property, the 
taxes that are generated will go for schools. They will go for the 
services of local governments. This is going to be so beneficial 
because many people in our State, and I think this is true in other 
States, too, they will actually put goats or they will put a cow on 
some extraordinarily valuable property in the middle of an urban area. 
That is because they are able legitimately to qualify for an 
agricultural assessment.
  When they get an agricultural assessment, they may pay $10 in taxes 
on that particular tract of land. But by having the reduction in the 
capital gains taxes, by having the sale of the property, by having the 
development of that property by construction of new businesses or 
homes, that will generate thousands of dollars, instead of $10 to the 
local governments, that can be used to build schools, to address the 
problems that we have in local government, that we have to produce the 
best schools that we can for our citizens. There is just so much 
positive in the bill that we will be voting on tomorrow.
  I know that the gentleman probably has another question that he wants 
to ask me.
  Mr. HAYES. I thank the gentleman again for his incredible leadership 
not only here tonight but back home in South Carolina, not only as a 
Congressman but as a colonel in our wonderful Armed Forces. I think it 
is appropriate that we close with our continued pride, support and 
absolute awe at the way they have conducted themselves. That is so 
important to the economy, to rid the world of terrorists. The costs 
that have been incurred, they have created hardships for all of us. But 
thanks to their ingenuity, their courage, their training, their 
bravery, their leadership, they have gone in and outthought and 
outfought a very, very difficult enemy. Now we have, because of their 
sacrifices, the opportunity to put this economy back on its feet, to 
put our people at home to work. I hope the McMillens in Hampton County 
are listening tonight. They are farming pretty hard so they may not be. 
I hope the folks in Richmond County, in Hoke County, all throughout the 
eighth district, are listening because they understand from the 
gentleman's leadership and his presentation the sound, commonsense 
approach that this jobs growth economic stimulus plan that the 
gentleman and I and others on this side of the aisle support so 
strongly, they understand and appreciate what that brings to our 
districts and to our economy.
  Mr. Speaker, tonight we have heard the truth in a very clear, in a 
very concise, and in an understandable fashion. The presentation of the 
gentleman from South Carolina is responsible for that. I thank the 
gentleman for serving our country. I thank him for serving this 
Congress.
  Mr. WILSON of South Carolina. Mr. Speaker, I want to conclude with 
some other points real quickly, that is, that the President's jobs and 
economic growth plan is designed to strengthen the economy by allowing 
Americans to keep more of their own money to spend, save, and invest by 
creating jobs. The President's plan to cut taxes and hold the line on 
government spending would grow the economy and ultimately reduce the 
deficit as stronger economic growth and job creation causes revenues to 
rise to meet the restrained level of spending.
  At this time, too, I would like to, as we are concluding, indicate 
the various groups that are supportive of the bill tomorrow, H.R. 2. In 
fact, I would like to read a letter which was sent by the Tax Relief 
Coalition. There are hundreds and hundreds of organizations, in fact 
there are over 1,000, that are supporting the Jobs and Growth Tax Act 
of 2003. This is a letter again sent by the Tax Relief Coalition:
  ``On behalf of the more than 1,000 organizations and 1.8 million 
businesses of the Tax Relief Coalition, we urge you as a member of 
Congress to support the full elimination of the double taxation of 
dividends, the increase in the small business expensing allowance, and 
the acceleration of all the scheduled income tax rate reductions when 
the Committee on Ways and Means considers the economic growth 
reconciliation legislation. As companies and organizations representing 
businesses that employ tens of millions of Americans, we believe these 
provisions are necessary if we are to jump-start the economy and put 
people back to work.
  ``The full elimination of the double taxation of dividends within the 
framework of a $550 billion tax relief package is achievable and will 
have a singularly positive effect on the economy in both the short term 
and the long term. It will spur consumer spending by putting more money 
in the hands of shareholders who will pay less in taxes, receive higher 
dividend payouts and accumulate increased wealth as a result of the 
upward pressure on stock prices. The resulting increased demand and 
lower cost of capital will sustain economic growth and create jobs as 
companies invest in the new equipment, build new plants and develop new 
products. Many economists also believe eliminating this double tax will 
boost the stock market from 10 to 20 percent.
  ``Since small businesses create two-thirds of the new jobs in the 
United States, the importance of the small business provisions of the 
President's proposal should not be underestimated. Approximately 85 
percent of small business owners file tax returns as individuals and 
represent nearly 80 percent of the taxpayers at the top income bracket. 
Accelerating all of the scheduled income tax rate reductions to this 
year, 2003, will provide approximately $10 billion in tax savings to 
small businesses that file as individuals. Allowing small business 
owners to expense critical investments will facilitate economic 
expansion, so we urge you to support raising the small business 
expensing limit from $25,000 to $75,000 and indexing it for inflation. 
These changes will create savings for small businesses that will put 
money directly into the economy and create new jobs.
  ``Any proposal that does not include the critical small business 
provisions

[[Page 10975]]

and result in the full elimination of the unfair double taxation on 
dividends will significantly compromise the economic benefits of the 
President's package and jeopardize the hundreds of thousands of new 
jobs that would otherwise be created.
  ``In our view, representing tens of millions of working Americans and 
businesses, if you do not include the dividend tax reduction and the 
critical small business provisions, the jobs and growth package will 
simply not have the same effect.
  ``This has been respectfully submitted by the Tax Relief Coalition.''
  Mr. Speaker, I am just very honored to have been here tonight with 
the gentleman from North Carolina to present on behalf of nearly 1,000 
business associations, businesses and other think tanks that are 
proposing that we reduce taxes and the tax burden on the American 
people. I just cannot wait until tomorrow, and I hope the American 
people follow the debate. I am confident that just as we had the 
debates following the tax increases of 1993, which when those tax 
increases were put in place that we heard were so good tonight, the 
immediate effect was that a Republican Congress was elected for the 
first time in over 40 years.
  And so people do understand these issues. I know in the State of 
South Carolina that we understand those issues because, in fact, not 
only was there a new Republican majority in the House here in 
Washington, but for the first time since 1877 there was a Republican 
majority and the first Republican Speaker of the House of 
Representatives in the entire South, David Wilkins, was elected. The 
American people do understand these issues. We have gotten excellent 
leadership in our State and here in Washington. The Republicans then 
achieved a majority in the State Senate in 2001 for the first time 
since 1877 because people do understand the philosophical differences 
between the two parties. They understand that we as Republicans are 
working for limited government, expanded freedom. On the other side, 
they have tax-and-spend policies. They are well meaning, but they are 
wrong.

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