[Congressional Record (Bound Edition), Volume 149 (2003), Part 8]
[Extensions of Remarks]
[Pages 11352-11353]
[From the U.S. Government Publishing Office, www.gpo.gov]




             JOBS AND GROWTH RECONCILIATION TAX ACT OF 2003

                                 ______
                                 

                               speech of

                            HON. TODD TIAHRT

                               of kansas

                    in the house of representatives

                         Thursday, May 9, 2003

  Mr. TIAHRT. Mr. Speaker, I rise today in strong support of the Jobs 
and Growth Tax Act of 2003 (H.R. 2). I am supporting this jobs and 
growth package because that is exactly what my district in Kansas needs 
right now: new jobs and economic growth.
  While most of the United States continues to feel the economic after-
effects of the September 2001 terrorist attacks, southcentral Kansas is 
especially struggling to rebound. Wichita is known as the ``Air Capital 
of the World,'' but with the dramatic drop in demand for new aircraft, 
many companies have had to ground production work, causing massive 
layoffs. More than 12,000 aviation workers are out of work in the 
Wichita area, and several thousand more have been laid off in what has 
been a trickle-down effect. The local economy is desperate for new 
growth.
  The jobs and growth package the House of Representatives is 
considering today will provide a real boost to the Kansas job market. 
According to estimates, the Jobs and Growth Tax Act of 2003 is 
estimated to bring an average of 5,700 new jobs every year to the State 
of Kansas, over the next five years. More than 8,000 new Kansas jobs 
would be created in 2004 alone.
  H.R. 2 is a job-friendly package that will benefit people looking for 
work. By providing businesses the tools they need to grow, we will see 
new jobs created in southcentral Kansas. One of the stimulus tools I 
have strongly supported increases the bonus depreciation rate from 30 
to 50 percent, which will allow businesses to recover more costs 
involved in the expansion of their production capabilities. Companies 
that have held off purchasing aircraft will now have a strong incentive 
to buy while the 50 percent bonus depreciation option is available. 
Companies that purchase new aircraft from Wichita would be allowed to 
depreciate 66 percent of the aircraft's value the first year. This 
incentive for companies to buy aircraft now translates to more jobs for 
Wichita.
  Another tool H.R. 2 provides is the increase in the amount a small 
business can deduct from its taxes when it purchases new capital. This 
economic growth bill will increase the amount a small business can 
expense from $25,000 to $100,000, and it expands the definition of a 
small business from $200,000 of capital purchases to $400,000.
  Another significant element in this jobs and growth package is the 
reduction of the personal income tax rate on long-term capital gains 
and dividends. Taxpayers in the lowest two brackets will have their 
rate on capital gains and dividends lowered to five percent; taxpayers 
in all other brackets will have their rates lowered to 10 percent for 
long-term capital gains and dividends.
  By lowering these rates, investors will be more willing to invest 
because they will be taxed less on their profits. Businesses will see 
their costs decline when they invest in new projects. These new 
investments will boost our economy and create more jobs.
  Businesses will also benefit from the extension of the net operating 
loss carryback. This provision will allow small businesses more 
flexibility in choosing when they can carry back net operating losses 
to a previous tax year. Generally, these businesses will receive a 
refund of Federal income tax for that year. Again, this is just another 
way we can free up resources to help spark the economy. If we expect 
businesses to create more jobs, we need to help them free up cash flows 
to expand their production capabilities.
  H.R. 2 is also pro-family. It increases the child tax credit, expands 
the lowest 10 percent personal income tax bracket, accelerates marriage 
penalty relief, accelerates the individual tax rate schedule for 
millions of American families and small businesses, and saves nearly 10 
million taxpayers from having to deal with the alternative minimum tax.
  By accelerating the increase in the basic standard deduction amount 
for married joint tax filers, we will bring parity to that of single 
tax filers. Those who decide to get married should not be taxed more 
than they would if they were still single. With the enactment of 
President Bush's 2001 tax cut, we provided a phase-out of the marriage 
penalty over several years. H.R. 2 immediately phases it out for the 
next three years.
  Millions of families will benefit from the child tax credit this year 
as it is increased from $600 to $1,000 for the next three years. By 
accelerating the phase-in of this provision from the 2001 tax cuts, we 
will be providing families with more cash to help pay for things like 
school supplies, clothes or summer vacations.
  H.R. 2 is good for seniors. An estimated 10 million American senior 
citizens who receive

[[Page 11353]]

dividend income will be able to make their golden years more secure by 
keeping a larger percent of these payments. Seniors who have worked 
hard all their lives and have invested for the future will see more 
money staying in their pockets instead of being sent to Washington.
  Today I urge my colleagues to join me in sending a positive message 
to the American people by voting for passage of H.R. 2. This bill will 
pump an estimated $200 billion into the economy and create 1.2 million 
new jobs by the end of 2004. The tax rate cut on both dividend income 
and capital gains will provide relief for the 50 percent of Americans 
who are invested in the market, as well as the 70 million Americans who 
own their homes. This is the kind of economic relief America needs.

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