[Congressional Record (Bound Edition), Volume 150 (2004), Part 10]
[Extensions of Remarks]
[Page 13114]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   AMERICAN JOBS CREATION ACT OF 2004

                                 ______
                                 

                          HON. JEB HENSARLING

                                of texas

                    in the house of representatives

                        Thursday, June 17, 2004

  Mr. HENSARLING. Mr. Speaker, one of my top priorities in Congress is 
to help ease the overwhelming tax burden on families and small 
businesses.
  I am also a firm believer in fighting for less government and more 
freedom, and one of the underlying tenets of this philosophy is 
promoting free trade. Free trade policies provide consumers--not 
government--the opportunity to make their own decisions about how to 
spend their money.
  Americans benefit from free trade and open markets every day. Free 
trade undeniably delivers a greater choice of goods and services at 
lower prices to Americans. Free trade also boosts local economies and 
jobs for our trading partners, which in turn, creates jobs, improves 
wages and the standard of living for American workers and their 
families here at home.
  When trade grows, income flows. Reducing and eliminating barriers to 
trade both at home and abroad is vital to a robust U.S. economy. Nearly 
one in ten jobs in the United States is directly related to the export 
of American goods and services. I believe it is vitally important to 
the future of our Nation that we continue to expand trade in an effort 
to promote economic growth, peace and prosperity at home and abroad.
  Because of my commitment to promoting unfettered trade and untying 
the hands of American workers and businesses I voted for the American 
Jobs Creation Act. This legislation will end the damaging tariffs that 
the European Union has imposed on a host of American goods that have 
hampered free trade and hurt American businesses since they were 
imposed in March of this year. In addition, it will decrease the tax 
rate for small businesses, farmers, and manufacturers and increase 
America's competitiveness with our global trade partners.
  The United States has the second higher corporate tax burden in the 
world. The American Jobs Creation Act is a step in the right direction 
to making American companies more competitive in the world marketplace.
  The American Jobs Creation Act will also help Texans and taxpayers in 
eight other states achieve equity under our tax code by allowing them 
to deduct state sales taxes from their federal income tax returns. The 
current system is clearly unjust, as it allows a federal tax deduction 
for state and local income and property taxes. Millions of people from 
those states that rely on sales taxes are clearly disadvantaged and 
overlooked by the current system and this jobs bill removes this 
inequity. It is estimated that the lack of this deduction robs Texans 
of over $700 million and 16,000 jobs. However, the House passed version 
only provides this relief for two years. I strongly support a permanent 
state sales tax deduction, and am hopeful that Congress will make this 
provision permanent in the future.
  Of course, I would ultimately prefer a simpler, more equitable tax-
code that treats taxpayers fairly and stops trying to pick winners and 
losers. All Americans would be better of if Congress repealed both 
deductions for state and local income tax and the new state sales tax 
deduction, and put in their place new lower tax rates for both 
individuals and corporations--and made them permanent. Many of my 
colleagues keep forgetting that it is not our money; it's the people's 
money. I am committed to letting Americans keep more of what they earn, 
without the government stepping in and creating carve-outs, loop-holes 
and special interest niches.
  While this legislation accomplishes several very important goals such 
as the elimination of tariffs and providing for state sales tax 
deductibility, it was not all that I had hoped for. I have serious 
concerns about several of its provisions, particularly the inclusion of 
a tobacco bailout. This bill ended a decades old government quota and 
price support system for tobacco--and that alone is a very good thing. 
The federal government should not purposefully manipulate markets to 
try to fix prices. However, I find it highly objectionable that the 
American taxpayer is asked to foot the bill for buying out tobacco 
quota owners and tobacco growers. As a former board member of the 
American Cancer Society in Dallas, I am well aware of the harmful and 
often fatal affects of tobacco use. While the government has absolutely 
no business setting up quotas for any product and affecting the market 
price, I find it abhorrent that Congress would force taxpayers to cough 
up billions in order to subsidize tobacco. This quota system can and 
should be ended without the use of taxpayer money.
  Unfortunately, rather than decreasing corporate tax rates across the 
board, this bill also included numerous corporate pork provisions 
through special tax shelters. Special breaks and exclusions for certain 
industries, companies and products should not be a policy of the U.S. 
Congress. This bill includes special treatment for the cruise ship 
industry, former car dealers, makers of bows and arrows, and others 
industries. I have nothing against any of these industries, but 
Congress should not be promoting one product, company or industry over 
another. All American companies, taxpayers and consumers deserve lower 
taxes, not a chosen few.

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