[Congressional Record (Bound Edition), Volume 150 (2004), Part 4]
[House]
[Pages 4927-4928]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        TAX CUTS IMPROVE ECONOMY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Tennessee (Mrs. Blackburn) is recognized for 5 
minutes.
  Mrs. BLACKBURN. Mr. Speaker, last week I spoke about a Tennessee 
report showing 15,647 new corporations, LLCs and limited partnership 
registrations in my State. That was the best ever, the best on record. 
The tax cuts that President Bush and Congress passed are clearly giving 
those with the entrepreneurial spirit the room to take that leap and 
form new businesses. This is what America is all about, living out that 
American dream.

[[Page 4928]]

  And today I have more good news. This time from the Nashville 
Tennesseean Business Section that speaks to the growth that this 
Republican tax relief is helping to generate.
  Democrats and candidate John Kerry say the Bush tax cuts are not 
working, that they will repeal the Bush tax cuts and raise your tax 
bill so that they can fund more government spending. Well, I would like 
to recommend that they just hold on a minute before the Democrats rally 
around tax increases.
  They should read this article. ``Businesses Using Tax Cuts to Get 
While Gettin's Good.'' This is from the Nashville Tennesseean. 
``Businesses Using Tax Cuts to Get While the Gettin's Good.'' This is 
what we said would happen with tax cuts, businesses would grow.
  Now the article is about John Aron, a business owner in Nashville. He 
runs The Pasta Shop, and his story is a testament to the Bush tax 
relief. Mr. Aron wanted to expand his business, but the cost of new 
equipment was nearly $81,000. After looking at the President's tax 
relief package that this Congress passed last year, and it gives 
businesses a tax break on equipment purchases, Mr. Aron went ahead and 
made the investment and expensed 57 percent of his equipment costs this 
year, saving his company $35,000 on his 2003 taxes.
  Well, guess what he did next? He hired two employees. This is exactly 
what Republicans said would happen if we lowered the taxes.
  Now, some across the aisle are saying, well, that is just one story 
and it cannot be a trend; but let me give you a few more examples. Brad 
Blevins spent $100,000 for a metal stamping machine for his company. 
He'll save $30,000 in taxes. Business grows.
  Rivergate Partners in Nashville spending $350,000 on their 50,000-
square-foot building. They will save $60,000. Business is growing.
  Richards & Richards, able to write off $100,000 worth of storage 
shelving for their offices.
  Get the point? Businesses are growing because of the tax relief. Mr. 
Aron said, ``The Bush tax cuts substantially reduced the risk of 
entry.''
  If I were calling for tax increase, I would be feeling a little bit 
foolish right now for calling for those tax increases.
  In 2003, 25 million small business owners saved an average of $2,853 
on their tax bill. That is 25 million small business owners. The 
President and Republicans supported this relief because we know that it 
will spur investment and encourage Americans to start new businesses 
and reach that American dream.
  Mr. Speaker, I would like to correct a few misplaced perceptions that 
have been allowed to go unchallenged far too long. The Democrats have 
criticized the President. They have slammed his foreign policy, his 
economic policy, and they often cite Europe as an example of the sort 
of countries that we ought out emulate.
  I beg to differ.
  The countries of Europe have created large, extensive welfare 
systems. They have outrageously high taxes. They tax and spend, all to 
support growing government social programs. And the result? In December 
2003, Belgium had an 8.3 unemployment rate. In January 2004, France, a 
vocal critic of U.S. economic and foreign policy, had a whopping 9.3 
percent unemployment rate. Germany, another consistent critic of the 
U.S., in January of this year had a 9.1 percent unemployment rate.
  Mr. Speaker, in January of 2004 America had a 5.6 percent 
unemployment rate.
  A leftist European model does not work in foreign affairs and it does 
not work here in economics. Unfortunately and unwisely, Democrats have 
adopted this kind of approach for their platform.
  We have weathered a recession and September 11 with the $1 trillion 
impact it had on our economy, and we remain committed to tax relief. 
And this month the Employer Outlook Survey reported that 28 percent of 
the 16,000 employers that they surveyed expected to hire more workers 
from April to June of this year.

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