[Congressional Record (Bound Edition), Volume 152 (2006), Part 2]
[House]
[Pages 2518-2524]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        THE OFFICIAL TRUTH SQUAD

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 4, 2005, the gentleman from Georgia (Mr. Price) is recognized 
for 60 minutes as the designee of the majority leader.
  Mr. PRICE of Georgia. Mr. Speaker, I appreciate the opportunity given 
to me by the leadership and by the Republican Conference to come and 
share a few words this afternoon. This is something that we call the 
Official Truth Squad, and we have been coming to the floor of the House 
almost every day that we have been in session this year.
  We who have organized it are the freshman class. There are about 25, 
26 members of the Republican freshman class. We are the new folks on 
the block. We have been in Congress now for about 14 months. And one of 
the things that disturbed us so, being here, was the tone of the 
debate, was the level of incredible partisanship, the remarkable and 
distasteful distortion of facts, the personal attacks, some of which we 
have heard within the past 30 minutes. The hyperbole and the 
disinformation and the misinformation that goes on here in Washington 
seems to be kind of the order of the day.
  What we thought we might be able to do to contribute to kind of 
raising the level of the rhetoric and the tone is to develop what we 
call the Official Truth Squad. And our effort and our desire is to try 
to bring a positive view of America, a truthful view of America, point 
out some of the wonderful and great things that go on in our Nation and 
that our citizens are involved in. Because truth is incredibly 
important to public debate.
  Mr. Speaker, as you know, if are you not dealing with truth in the 
area of public policy, you cannot reach the right solution, you just 
cannot get to the right end point. That is what is so disheartening 
about much of the debate that goes on here. And I say that in all 
sincerity, understanding, as I know my constituents do, that these are 
not Republican problems or Democrat problems, these are American 
challenges that all of us face. So truth is so incredibly important.
  In my former life, I was a physician, and I knew that if I did not 
have truthful, accurate information going in to take care of a patient, 
that I could not make the right diagnosis. If somehow the information 
was distorted or not accurate, then it just was not possible to get to 
the right diagnosis.
  The same is true in the public policy arena. If we are not talking 
about truthful items, then it just becomes that much more difficult to 
reach appropriate conclusions. I know that when I go home and talk to 
my constituents. They say, do you not get tired of all of that 
negativity up there? And I do. And I know that you do too, Mr. Speaker.
  But that is why our goal is to try to put a little positive spin on 
exactly what is happening here in Washington and present to the 
American public an optimistic view of where we are.
  And we have in the Official Truth Squad many quotes that we are fond 
of. One of the ones I am most fond of is one from former New York U.S. 
Senator Daniel Patrick Moynihan. He says, ``Everyone is entitled to 
their own opinion, but not their own facts.'' Everyone is entitled to 
their opinion, but not their own facts.
  And it really is so true about much of the debate that goes on here 
in Washington. Because with many people, everybody obviously has their 
opinions. But oftentimes they are not supported by facts. And we have 
heard recently some incredible accusations given about, for example, 
the Dubai Ports deal.
  Now, I am not certain that I support that at all, but I do know that 
unless you are dealing with truth and with fact, you cannot reach the 
right conclusion. And one of the things that has come to the floor is 
this huge accusation that there just has not been any money for port 
security, that Congress has been delinquent, that the White House has 
been delinquent, that they are not even paying attention to what is 
happening at the ports.
  Well, here are the facts. Here are the facts. Port security funding 
in 2001, prior to 9/11, was at a level of about $250 million. $250 
million. Fiscal year

[[Page 2519]]

2006, port security nearly $3 billion. Nearly $3 billion. The request 
for 2007, over $3.5 billion.
  So when you look at the facts, they do not back up the rhetoric of so 
many individuals who are obviously playing politics. And you cannot 
take the politics out of politics, I understand that. But it is 
important that we talk about truth. It is important that we talk about 
real numbers when we are trying to get to solutions to these incredible 
challenges that we have before us.
  So there are the facts on port security funding. Almost a 700 percent 
increase since 9/11. Mr. Speaker, that certainly is not inattentiveness 
to port security funding.
  We have also heard recently about the ``cuts'' in certain budgetary 
items; and the other side is fond of saying that there are cuts in 
Medicare and cuts in education. And so what I would like to do today is 
just share very briefly with folks what the actual facts are, what the 
truth is.
  This is Medicare funding. This is Medicare spending from 1995 to 
2005. These are not my numbers, these are Treasury, budget office of 
the U.S. Government: 1995, $156.9 billion; 2000, $187 billion; 2005, 
$294 billion.
  Now, Mr. Speaker, I do not know where you went to school, but I do 
not think that they would call moving from $187 billion to $294 billion 
a ``cut.'' It is simply not. And so when people describe it as such, 
then all they are doing is playing on the fear of the American public. 
And that does a disservice to the debate. It is dishonest. It does not 
help get us to the right conclusion. Medicare spending every single 
year has increased.
  Education spending: Many are fond of saying that the amount of money 
spent on education over the past 5 years has been cut. You have heard 
them say that. I heard them say that. I always shake my head when I 
hear it, because if you look at the facts, if you look at the truth, 
what we have here is total education spending since the year 2000 to 
2005 has grown, on average, 9.1 percent each year over the past 5 
years.
  Those are the facts. That is the truth.
  So when you hear people talk about the kind of allegations that they 
have regarding decreases to, cuts in spending, it simply is not so. 
What they are talking about it a decrease in the increase; only in 
Washington is that described as a ``cut.''
  So it is important that we talk about truthful things. It is 
important we talk about facts, important that we agree on those items 
before we get to the solution to the remarkable challenges that we 
have.
  Today we are going to talk a little bit about the economy. And if you 
were just getting your information from the major media markets, the 
major television stations and the networks, or the major newspapers 
across this Nation, you might not appreciate that the economy is 
ticking along pretty doggone well. And so we are going to bring some 
information today, some facts, some truth about the economy, that we 
hope will be helpful to the debate and also helpful information for the 
American public.
  Mr. Speaker, I am pleased to be joined today by many of my 
colleagues, and initially, Congresswoman Shelly Moore Capito from West 
Virginia. Congresswoman Capito is a veteran here compared to us 
freshmen. She is from West Virginia and has been a real leader in the 
area of our economy, and a real leader in the area of health care, has 
been working actively to make certain that health care costs do not 
continue to skyrocket because they play into our economy to a great 
degree.
  So I am so pleased that you are able to join us. I yield to you and 
look forward to your comments.

                              {time}  1430

  Mrs. CAPITO. I would like to thank my colleague from Georgia for his 
leadership on so many issues, but also on his leadership of the 
Official Truth Squad.
  I think one of the things that I find when I go back to my home 
district is people do not get what the real truth is. The way we debate 
here in Congress, it is almost who can besmirch somebody's character. 
Who can besmirch somebody's program. Who can say in the most 
sensational way why something is not good, instead of actually looking 
at the facts and debating the truth on the facts.
  That is why I am pleased to be here today, because I want to talk 
about something that I think is very good news for the American public, 
and certainly the State I represent, West Virginia, is one of these and 
that is the state of our economy.
  The American economy in 2005 was the envy of the world. Just 
yesterday, the Prime Minister of Italy, Silvio Berlusconi, was here 
extolling the virtues of a democratic government, extolling the virtues 
of the enormous economic engine that the United States has and brings 
to the global economy. And I think he made us realize that, number one, 
we should not take this for granted and, number two, we should 
recognize it.
  I will talk about facts. We will stick with the facts today. Just the 
facts, ma'am. That is what they say. The economy grew at a robust 3.5 
percent rate in 2005, making this the fourth year of expansion. For 10 
of the last 11 quarters, the economy has grown at better than 3.3 
percent and that is sizable. Furthermore, our economy's fundamental 
health was underscored by the fact that gulf coast hurricanes and 
rising energy prices could not derail significant growth, much to our 
relief.
  We have now seen 29 consecutive months of job gains. During this 
period, 4.8 million jobs were created, and 193,000 just this past 
January. The latest national employment figure, 4.7, is the best since 
July 2001, two months shy of September 11. In my home State of West 
Virginia, we have perennially fought high unemployment. We have 
perennially fought low economic gains, but I am really pleased West 
Virginia is part of this economic boost we are feeling across the 
country.
  Our seasonally adjusted unemployment rate was 3.8 percent in January; 
3.8 percent is the lowest seasonally adjusted rate we have ever had in 
the history of keeping statistics in West Virginia. In December alone, 
the statistics of unemployment was the lowest rate that had ever been 
in the history of any December when that rate was recorded in the State 
of West Virginia. That is wonderful news for our State.
  The numbers do not lie. They are real results, and the results like 
these do not happen by accident. Not so long ago in late 2001 during 
the recession, the economy was being afflicted by serious problems in 
the wake of 9/11, corporate scandals, and other problems. Economic 
growth was lagging, and Americans had stopped investing like they used 
to. There was no job growth, or very little. Fortunately, we here in 
the House acted on a piece of commonsense legislation. The less you tax 
something, the more you get. That goes for income, but it also goes for 
investment. So Congress responded with real tax relief in 2003, 
encouraging more Americans to invest their earnings.
  The Jobs and Growth Act of 2003 lowered all individual tax rates, but 
lowered the individual tax rate on dividend and capital gains to 15 
percent. This loosened the shackles on every individual and freed the 
genius of the American economy. Since May 2003 when the Jobs and Growth 
Act was enacted, 4.7 million jobs have been created. Now, that is a 
truth that is undeniable.
  After nine straight declining quarters of business, we have seen 10 
straight quarters of rising business investment. Unemployment had 
reached 6.3 percent in 2003; and as I said today, the 4.7 figure is 
lower than the averages of the 70s, 80s, and 90s.
  An added benefit of the tax cut was that the Federal Government 
actually collected more tax revenue from capital gains even though the 
rate was lowered. From 2003 to 2004, revenues from capital gains taxes 
increased from $50 to $60 billion. Last year, the Federal Government 
received $75 billion in capital gains tax revenue. In fact, overall 
government tax revenue is currently at its highest level in American 
history, and our State revenues are reflecting this as well. So we need 
to keep that tax rate at 15 percent.

[[Page 2520]]

  We recently passed H.R. 4297, and this bill would make the 15 percent 
tax rate permanent, and I am hopeful that will pass. But, you know, it 
is not Washington, D.C. that drives the economy. It is the daily 
choices of millions of free Americans that drive it. Small businessmen 
and -women, miners, farmers, taxi drivers, doctors, teachers, all these 
people who contribute to what we call the national economy. And we 
should always remember that we owe the strength of our economy to all 
these hardworking Americans who quietly make this country work every 
single day.
  I would like to take just a few more minutes about my home State of 
West Virginia. I am very proud that we have had low unemployment. It 
has been spiraling downward over the last several months. Our 
homeownership has gone up. We are at one of the highest levels of 
homeownership across the Nation.
  Our crime rate, which we are very, very pleased is perennially low, 
is lower than ever. I think that is indicative of the rise of the 
economy and the feeling of robustness and optimism that they have that 
they can provide for their families.
  In West Virginia, more people are going to college than ever before. 
To me that is an indicator of several things: people are preparing to 
engage in the knowledge-based economy that we see in our future. Also, 
if they are able to go on to college right after high school, what does 
that tell you? It means they can improve their education and they do 
not need to go into the workforce right away to help their families. 
And this is a positive step, I think, in broadening and making our West 
Virginia economy much greater.
  As everyone knows, coal is very important to our West Virginia 
economy. We are a resource-based economy. We always have been. We have 
had some very sad times recently in our coal industry, and I want to 
take this opportunity to thank the Nation for their heartfelt prayers 
and sincere thoughts concerning the loss of our miners in West 
Virginia.
  It has been very difficult for us because we are a small State. We 
care about each other very much and one person's loss is every person's 
loss. That is why we are working in a bipartisan way to do mine safety 
legislation here in Congress to help with oxygen supplies, to help with 
tracking miners, to help with communications, to help with response 
times. And I think that we will get to a good bipartisan resolution on 
how we can prevent these accidents from happening in the future.
  We have over 12 new mines opened in West Virginia. Twelve more than 
last year. Over 1,200 new miners. This shows you the strength of our 
economy. Over 50 percent of the electricity generated in this country 
is generated through coal, and we are very, very pleased about that.
  So I think that the problems now that I am hearing or whenever I go 
out to my town meetings or around grocery shopping or wherever I happen 
to be, I ask people all the time, how is it going? How is your 
business? How is work? How are you feeling about the economy? And 
honestly, to a person, the optimistic flavor of West Virginians both in 
the State and national economy is immeasurable.
  It is so much greater than it has been in the past, to the point 
where, what am I hearing now: I cannot find enough people to employ; I 
need 50 more people; we need more miners; we need more electricians; we 
need more clerks. So I think that we are going to see a time of 
national prosperity, as we have now, continue to grow and to continue 
to make that American Dream possible for every American family: the 
ability to buy a home, to raise your family in a community that you 
know is safe, to be able to enjoy those small-town values that States 
like Georgia and West Virginia provide in abundance to Americans.
  So I am very pleased that the growth and jobs packages that we have 
put forward in this Congress are translating into the real meat-and-
potato issues on the dinner tables of America. So I thank you very much 
for giving me the opportunity to speak. I am going to be speaking about 
this a lot because I think not only do people realize it, but they need 
to be reminded that these things do not happen by accident; that 
policies go into place that bring about the economic changes that bring 
about more jobs, lower unemployment, more homeownership, more people 
going to college, and a more optimistic attitude about our future.
  Again, I would remind you if you did not see the Prime Minister from 
Italy yesterday, he had a very powerful message for Americans on 
several fronts, national security certainly, but also the fact of the 
admiration that people around the world and countries around the world 
have for our American economy.
  Mr. PRICE of Georgia. I thank the gentlewoman from West Virginia so 
much for sharing those words and what a wonderful, wonderful picture 
you paint about West Virginia, about the economy and about the policies 
that we adopt here and their effect on the Nation and each and every 
State.
  I too was struck by the Prime Minister from Italy, Prime Minister 
Berlusconi yesterday. It was really a moving time to have him speak to 
us in his native tongue and to describe what he said he saw in America. 
And that is the leader of the world in the area of democracy, in the 
area of freedom and liberty but also in the area of the economy, and 
how those things are so interwoven and intertwined together. So I 
appreciate you bringing that up. Thank you ever so much for being with 
us today.
  Mrs. CAPITO. Thank you.
  Mr. PRICE of Georgia. I want to very briefly comment about how all of 
our hearts go out to West Virginians and the miners and their families. 
We had a committee meeting yesterday on mine safety, and I know that we 
will reach the right conclusion on trying to get to the tracking and 
the oxygen and resources for them. Thank you ever so much.
  Mr. Speaker, did you hear the numbers that were described by the 
gentlewoman from West Virginia? Did you hear the unemployment numbers: 
3.8 percent in West Virginia. Most economists will tell you that 5 
percent, or even some will say 6 percent, is full employment. If you 
have unemployment of 5 or 6 percent, then you are at full employment 
because of people desiring to be between jobs; but West Virginia is at 
3.8 percent, which tracks relatively well to the entire Nation.
  Again, the Official Truth Squad's desire is to put real information, 
honest information, truthful numbers out for the American public and 
just let them draw the conclusions that they draw, understanding that 
the conclusions that we draw when we look at these numbers are pretty 
doggone optimistic, pretty positive, not what you normally hear coming 
out of Washington.
  This chart here talks about the unemployment rate and the jobs 
rebound. And the graph here goes from January of 2003 to just the end 
of last year, the end of 2005. Now, it ought to go further. I have to 
get this updated because the trend of these lines continues in the same 
direction. And this upper line here, the red line here, is the 
unemployment rate; and the green line down here is the number of jobs. 
And as you see, there was a peak of unemployment around the beginning 
to the middle of 2003, and that rate at that time was somewhere in the 
range of 6.1, 6.2 percent.
  What we have seen since that time is a steady decrease in 
unemployment and a consistent increase in jobs. As the gentlewoman from 
West Virginia mentioned, in January 193,000 new jobs. And although this 
has the unemployment rate at 5 percent, which it was toward the ends of 
2005, the unemployment rate now for the Nation is 4.7 percent.

                              {time}  1445

  4.7 percent, as she mentioned, is the lowest monthly rate since July 
of 2001.
  I think it is important when we talk about these numbers, again 
truthfully, honestly and openly, to give folks an opportunity to 
compare them to something. What are you going to compare it to?
  The best thing to compare it to is the history. What is our history? 
Where

[[Page 2521]]

has the rate been? Well, the rate that we currently have now, 4.7 
percent, is lower than the average for the decade of the 1970s, decade 
of the 1980s, and the decade of the 1990s. You remember the boom time 
in the 1990s?
  Lower than the average for the 1970s, the 1980s and the 1990s. Over 2 
million jobs created in the last 12 months and over 4.7 million jobs 
created since 2003.
  I am fond of charts and pictures because I think they just paint the 
story so much better than I can describe it. There is also a line here, 
this vertical line here of the dotted green color, and what happened at 
that point, curiously enough, is what again the gentlewoman from West 
Virginia mentioned, and that is, that the Jobs and Growth Act went into 
effect, the fair tax decreases went into effect so that there was more 
money to put into the economy so people had more disposable income. And 
when you give people back more of their own money, what happens? The 
economy booms, the economy increases and gets better. So it is a cause-
and-effect relationship without any doubt.
  I mentioned the number of new jobs, 4.7 million new jobs, and again, 
with a picture being able to paint it so much better than I can 
describe, on this axis down here, we have January 2002, all the way 
over to January 2006. These are the percentages of unemployment, the 
monthly change each month in the number of jobs, the amount of 
unemployment, and before the fair tax decreases went into effect, what 
you see is a decrease in the number of jobs available, lower jobs 
available.
  Then, as soon as that happens, as soon as those tax decreases went 
into effect, what happens? We see significant increases in the number 
of jobs available; so much so that it is a steady run, and it continues 
as such, again, 193,000 new jobs in January of this year.
  So these are facts. This is the truth. The picture tells the story, 
and it is a story, again, that you often do not get if you are paying 
attention to your nightly news or your friendly newspaper.
  So we are proud and pleased to come before the American people and 
tell this kind of optimistic and positive story.
  I am always pleased to be joined by the gentlewoman from Virginia, 
another fellow freshman who, like I, was somewhat distressed at the 
tone of the rhetoric that we heard in Washington and was really a prime 
mover in getting this started, this Official Truth Squad, to bring a 
positive message to the American people.
  And today, talking about the economy, a successful small business 
woman; and I am so pleased to have you join us again. I yield to the 
gentlewoman from the great State of Virginia (Mrs. Drake).
  Mrs. DRAKE. Mr. Speaker, I thank you, Congressman Price, and I really 
do appreciate the effort you have made to make sure that the American 
people truly understand what is happening within our economy today. I 
know you and I share a lot of very similar beliefs.
  I just wanted to start today by reminding you and bringing to mind 
again a really wonderful quote by former President Ronald Reagan, when 
he said, ``There are no great limits to growth because there are no 
limits of human intelligence, imagination and wonder,'' and that is 
part of what you are seeing in this increase in job growth.
  We believe that the strength of our Nation lies with the individual 
and that each person's dignity, freedom and ability and responsibility 
must be honored. We believe that free enterprise and encouraging 
individual initiative have brought this Nation opportunity, economic 
growth and prosperity.
  But there is an alternative to what we believe, and that alternative 
belief is one that seeks a solution that consists more of invasive 
government. And not surprisingly, Ronald Reagan had something to say 
about that as well. I think we as Americans remember the quote very, 
very well, and it is that ``The government's view of the economy could 
be summed up in a few short phrases: If it moves, tax it. If it keeps 
moving, regulate it. And if it stops moving, subsidize it.''
  In economic terms, we will all remember the 21st century began 
slowly. The telecom bubble burst. We were attacked in the heart of our 
financial sector. Certain industries lagged, and we had entered a 
recession. It is during these difficult periods that we require 
leadership more than ever. We needed to pursue positive economic 
policies that would put the American people back in the driver's seat.
  I know you and I share the belief that our tax policies should be one 
that supports our economy, that it increases our revenue, and so that 
is why I wanted to talk today about what changes have come about in the 
past 5 years, these changes that support our American families and 
support American businesses.
  You will remember in the 2001 tax cuts that the first objective was 
to put money back in the hands of individuals and families. In June of 
2001, tax cuts were enacted through the Economic Growth and Tax Relief 
Reconciliation Act. Some of the most important aspects of that act are 
that they lowered marginal income tax rates, reduced the marriage 
penalty and the death tax, and increased the child tax credit, all 
things that are very important to American families. This was 
comprehensive legislation that reduced the tax burden on all Americans.
  In the 2003 tax cuts, the objective was to create a more favorable 
climate for industry and small business to invest and to create job 
growth. In the years preceding the 2003 Jobs and Growth Act, business 
investment spending had steadily declined. We needed to pull businesses 
and entrepreneurs back into the market through investment-friendly tax 
policies, restoring economic competitiveness and employment 
opportunities. So Congress took decisive action.
  Despite the naysayers, the results speak for themselves, and the 
results are very clear. Growth in our economy is one of the least told 
stories. I believe, and I know that you believe that if we allow 
Americans to keep more of their hard-earned dollars, that they will 
save that money, they will invest that money, they will create new jobs 
with that money.
  And business investment has grown in every quarter. Today, small 
businesses, small businesses like mine, represent 99.7 percent of all 
employer firms. They employ nearly half of all private sector 
employees, and over the past decade, on average, have generated 60 to 
80 percent of the net new jobs.
  Job creation, as you were showing the chart there right now, nearly 
4.7 million jobs have been created since President Bush signed the 2003 
Jobs and Growth Act, with 2.1 million of those created in the past 
year.
  Today's unemployment rate is at 4.7 percent and is lower than the 
decade averages of the 1970s, 1980s and 1990s. What an incredible 
statement. And they are good jobs. Real, after-tax income has risen at 
a rate higher than inflation since 2001, and personal income has grown 
above inflation in 49 of our 50 States.
  Most importantly, Federal revenues have been rising during this time. 
If we let people save their money or create new jobs, create new 
revenues, that creates additional tax revenue for the Federal 
Government. In May of 2003, receipts were under $1.8 trillion. In 
fiscal year 2005, they rose to an all-time high of $2.15 trillion.
  We realize that we cannot feed the Federal Treasury by starving 
American businesses, but thanks to these policies, more low- and 
middle-income Americans looking for a job will be able to find one 
simply because there are 2.1 million more jobs this year.
  But you and I realize there is more work to be done, that America 
agrees, and I think it is in everyone's minds that we do need complete 
tax reform, and I know that is something we will be working on.
  I really think that there are models across the world for us, and I 
think the most compelling story today is the story of Ireland. In the 
mid-1980s, Ireland's economy was faltering; we all know that. College 
graduates could not find a job and were leaving the country in droves. 
Confidence in the Irish economy was at an all-time low. Change

[[Page 2522]]

was necessary, along with the leadership necessary to implement it.
  The corporate tax rate today in Ireland is 12.15 percent, far below 
the rest of Europe. This attracted foreign investment necessary to 
boost economic growth. Today, nine of ten of the world's top 
pharmaceutical companies and seven of the top ten software designers 
currently have operations in Ireland, and it is currently the second 
richest country in the European Union with a per capita GDP higher than 
that of Germany, France and Britain.
  Now we have to ask ourselves, do we continue to encourage American 
businesses by creating the climate necessary for success or do we allow 
them to go somewhere else?
  So I thank you for the opportunity, thank you for your work in making 
sure that we do tell the American people the good news story that we 
are in as a result of the tax cuts of 2001 and 2003. It is our 
responsibility to make sure that we maintain a solid policy, tax policy 
that grows our economy, grows our revenues and benefits each and every 
American.
  Thank you for what you are doing.
  Mr. PRICE of Georgia. Mr. Speaker, you are very kind. I appreciate 
you coming and sharing those words and, once again, words of optimism, 
words of truthful perspective as it relates to the United States.
  I was struck by your description of the tax policy because what we 
saw with that tax policy is the increase in the child tax credit, the 
decreased marriage penalty. These are family-friendly things. This is 
what some of the folks on the other side of the aisle will call tax 
cuts for the wealthy. It just is not so. Again, we have got to talk 
about truth if we are going to get to the right solution.
  When you decrease taxes, as you well know, on small business, which 
is the engine of our economy, small businesses across our Nation, what 
happens is that you allow individuals more opportunity for employment. 
When people have jobs, then they are able to care for their families 
and, again, a family-friendly environment that we have in this Nation 
now as it relates to tax policy. Those are the kinds of things that 
need to continue.
  People say, well, what difference does it make who is in charge there 
in Washington? I am here to tell you, elections are about choices and 
the choices we are going to have this year are fairly stark from 
individuals on one side who will tell you that, no, you do not need to 
have the kind of tax decreases, the tax cuts, that we have had; what 
the government needs is more of your money. That just is not the case, 
as we have demonstrated time and time again here with The Official 
Truth Squad.
  But when you put more people's money back in their pockets, what 
happens? They are happier, their families are more secure, the 
communities are more secure, and businesses and the economy flourish.
  So thank you very much for sharing those kind words.
  I was also struck by the description of Ireland, which nobody a few 
years ago would have said was an economic engine or a powerhouse, but 
now it is. It is again because of their tax policy that is friendly to 
business, which, in turn, becomes friendly to communities and friendly 
to families, and that is how economics work.
  If you appreciate and you understand how a capitalist economy works, 
and then you understand that it is important to put more money, more 
people's money back in their own pockets; that it is not the 
government's money, it is the people's money; and that we here in 
Washington do not have a revenue problem, we have got a spending 
problem.
  So I am so pleased to be able to be joined by my colleagues to bring 
light to that, and one of my great freshman colleagues who has just 
been a wonderful contributor and supporter and innovator in the 
Official Truth Squad joins us now, the gentlewoman from North Carolina 
(Ms. Foxx). She is a great friend, has a great history in the arena of 
education, but understands clearly the importance of a positive 
economic outlook and a positive economic perspective and economic 
policy.
  So I welcome and yield to the gentlewoman from North Carolina (Ms. 
Foxx).
  Ms. FOXX. Mr. Speaker, I thank Congressman Price for yielding. I 
appreciate it very much, and as our colleagues have expressed to you 
before, we thank you for organizing these meetings and helping to get 
the Truth Squad out here.
  Many of us have been concerned for the past several months that there 
is a lot of disinformation out there and that the time has come for us 
to set the record straight, and I think that it is very important that 
we do so. Just saying things will not make them so, but if they are not 
responded to, then people will believe that they are so.
  I thought that our colleague, the gentlewoman from the State of 
Virginia (Mrs. Drake), was doing a great job of talking about several 
of the issues that I think are important, and talking about Ireland as 
a great success story is important to do.

                              {time}  1500

  Our economy is doing great, and talking it down does not help our 
situation and our country. I think we do need to be positive and talk 
about how things are going great.
  I speak to a lot of school groups, and they will often ask me what is 
the difference between Democrats and Republicans, and I generally give 
them several things to think about. But as my colleague pointed out, 
the biggest difference between Democrats and Republicans is we believe 
that the public knows how to spend its money better than the government 
knows how to spend their money. That is sort of a short definition. If 
we left it up to the Democrats, they would basically be taking all the 
money from everybody and giving it to government bureaucrats to spend.
  I think the whole issue of family friendly taxes is very important 
too. We are not a party of extremely wealthy people, as we are 
portrayed to be. In fact, there is a lot more wealth on the other side 
than there is on our side, but they do a pretty good job of trying to 
hide that.
  I want to talk about some specific numbers also, in addition to 
talking about in general terms some things that may have already been 
said by some of my colleagues. I have been out meeting with 
constituents, so I am not sure of all the things that were said, and I 
hope I do not repeat too many of the same things.
  I think it is important to talk about the fact that our unemployment 
rate right now is 4.7 percent, the lowest monthly rate since 2001, and 
lower than the averages of the 1970s, 1980s, and 1990s.
  Just today I was talking to a man with a very large business down in 
North Carolina in the fifth district, and he was saying they could grow 
their business by 300 or 400 people if they could get the skilled 
workers that they need to grow that business. That is a very 
significant point for us. Our economy could be doing even better, but 
we do lack skilled folks. I talked with him and I will be working with 
the community college system down there to try to help him get the 
programs established that he needs so that they can get people with the 
backgrounds that they need.
  I am not sure if Congresswoman Drake mentioned this, but real 
household net worth right now is $51.1 trillion, an all-time high in 
this country. Our GDP, of course, is growing at a much higher rate than 
anybody thought it was going to grow. The fourth quarter grew at 1.6 
percent, and the estimate had been 1.1 percent. This encouraging 
economic news is proof that lower taxes plus restrained Federal 
spending equals economic growth.
  That is a math equation that the Democrats just cannot seem to grasp. 
Maybe it is because they keep trying to substitute new variables and it 
just does not work. Taxing plus spending will never equal economic 
growth and prosperity. But the Republican formula of lower taxes and 
restrained Federal spending will always come out in favor of the 
American taxpayer and his checkbook, and that is what we need to be 
concentrating on.

[[Page 2523]]

  I am going to throw out a few more facts to go along with what we are 
trying to do through the Truth Squad. We have got high consumer 
confidence these days, too. It rose to 106.3 in January, the highest 
level in over 3 years. So we are doing our best to make sure people 
know the economy is doing well and to raise consumer confidence.
  We know that incomes rose in December, and we are up 1.4 percent in 
2005. Again, very, very good news. Retail sales rose in December. We 
are up 6.4 percent in 2005 over 2004. Our manufacturing continues to 
expand. Manufacturing activity grew for the 32nd consecutive month in 
January. There is tremendous expansion out there, so we want that to 
continue to grow.
  Construction spending is at an all-time high. Construction spending 
rose 1 percent in the month of December alone. For 2005, spending 
reached a record $1.120 trillion, an increase of 8.9 percent over the 
previous record set in 2004. Housing starts continue to go up.
  So our economy is doing very well, and, again, it is based on the 
fact that Republicans believe in lower taxes and leaving more money in 
the pockets of American families. That is the way we can grow the 
economy. I hate hearing the words ``government investment.'' The 
government never invests. It spends.
  We have to get people to understand the language. As my colleagues 
know, language is a very important thing to us. How we use words is 
important because it gets people's minds set about what those words 
mean. We need to stop government spending, and we need to leave as much 
money as possible in the hands of the American taxpayers. We need to 
keep this economy growing vitally, and the way to do that is to keep 
Republicans in charge.
  With that, Mr. Speaker, I will yield back to the gentleman from 
Georgia.
  Mr. PRICE of Georgia. Congresswoman Foxx, thank you so very, very 
much for coming and joining us today and really painting a wonderful 
picture.
  Mr. Speaker, I do not know if you heard all of the items that 
Congresswoman Foxx ticked off there, but this is positive news. This is 
great news. This is good, good news.
  Consumer confidence increasing, incomes up across the Nation, average 
real after-tax income per person has risen 7.9 percent, retail sales 
increased, manufacturing continues to expand, durable goods orders on 
the rise, new orders for durable goods increased 1.3 percent in 
December with new orders for machinery rising 6.5 percent, the highest 
level since the series began tracking that in 1992. That is good news. 
Productivity growth is strong. Productivity increased 2.3 percent and 
has grown 3.2 percent, at that annual rate, since the end of 2000. That 
is good news. Construction rates up; all-time high. Again, remarkable. 
Remarkably good news.
  And that is what the Official Truth Squad is all about, coming to the 
floor to give honesty to the debate. Truthful numbers. Real numbers. 
Because it is important that people have that in order to make 
decisions.
  Something that has been alluded to a number of times as we have had 
our discussion here today is the effect of tax decreases. I call them 
fair tax decreases. Some people call them tax cuts, I guess. I call 
them fair tax decreases. And what they will say is, we cannot have any 
more tax cuts. We cannot have any more tax decreases or even keep what 
we have. That is what the other side says, we cannot allow you to keep 
your money because government needs it. That is the way the line goes.
  But what is the effect of tax decreases? What is the effect from an 
economic standpoint? Well, again, a picture paints it better than 
anything I could ever say. Down here is the year 2000 all the way to 
2005. The vertical line there, the vertical dotted green line is when 
the tax decreases, the Jobs and Growth Act, went into effect. And the 
red line is revenue coming in to the government, how much money the 
government is receiving based upon the taxes.
  Again, remember, revenue going down here from 2000 to 2003, 
decreasing money coming into the government. So what do the President 
and the Republican Congress do? Well, they decrease taxes. A fair tax 
decrease. That is what happened here. Then what happens? Revenue 
increases. Money coming into the government increases.
  That seems counterintuitive, but that is what happens. President 
Kennedy knew that. That is what happened when he had his tax decreases. 
President Reagan knew that. That is what happened when he instituted 
his tax decreases. And what happened with President Bush's tax 
decrease? Same thing.
  You would think there was a trend there, Mr. Speaker. You would think 
that, in fact, if you decreased taxes, you would increase governmental 
revenue. Well, that is the secret. That is what happens. And why does 
that happen? Because as we have talked about, the economy flourishes. 
The economy flourishes when you put more of the people's money in their 
back pocket and in their purses, and not in the government's purse. 
What happens is that the economy flourishes.
  Now, I mentioned a little earlier that we in Washington, that 
government does not have a revenue problem. It has enough revenue. That 
is clear. It has a spending problem. So Congress is trying as hard as 
it can to decrease the amount of spending. And it is a difficult thing 
to do in this environment where you have the distortion and the 
misinformation and the disinformation and the incredible personal 
attacks that are given. So it is a difficult thing to do.
  But all last year what we tried to do is to work on what is called a 
deficit reduction act, which is spending less money. Ultimately, it 
took a little over a year, but in January when we came back, in early 
February we passed the Deficit Reduction Act that saved, that saved 
$39.8 billion. That is a good thing. That is a positive thing.
  I asked my staff to see if they could get me a poster of the number 
of folks on the other side of the aisle, the Democrats, that supported 
a decrease in spending, which is what they say they want to do all the 
time. How many folks on the other side of the aisle voted for that? And 
I have that chart here somewhere. I found it. I found the poster that 
has the name of every single Democrat that voted in favor of a $39.89 
billion decrease in spending.
  There it is. Right there. Not a one. Not a one. I point up the other 
charts because, as I say, they are truthful. This is truthful. This is 
the slate of individuals on the other side of the aisle who are 
interested truly in stepping up to the plate and working hard together. 
Because these are not Republican problems, and they are not Democrat 
problems. But, Mr. Speaker, when only one party is interested in 
working positively, it gets pretty doggone hard to do something here. 
It really does.
  So those are the folks willing to help us on the other side in terms 
of decreasing spending. So that is what the Official Truth Squad is all 
about, bringing appropriate, honest, truthful information to the 
American people. And we get terribly frustrated, as I mentioned, with 
what has been described as the politics of division. Many people 
practice it here in Washington. It is kind of tried-and-true; but, 
again, it does not get to the right answers. It does not help. It has 
been used for a long time, but it is not positive, it is not a 
productive activity, and it does not serve people well back home.
  One gentleman who knew that well was Abraham Lincoln. Abraham Lincoln 
knew that the politics of division are destructive, and he talked about 
it in a way that I think is more eloquent than anybody has ever said. 
What he said was: ``You cannot bring about prosperity by discouraging 
thrift. You cannot strengthen the weak by weakening the strong. You 
cannot help the wage earner by pulling down the wage payer. You cannot 
encourage the brotherhood of man by encouraging class hatred. You 
cannot help the poor by destroying the rich. You cannot build character 
and courage by taking away man's initiative and independence. And you 
cannot help men permanently by doing for them what they could do for 
themselves.''

[[Page 2524]]

  Remarkable words from one of the pillars in our Nation's history. It 
kind of crystallizes the American philosophy. It puts it better than, 
frankly, I have ever heard it.
  So what the Official Truth Squad is all about, Mr. Speaker, is 
bringing truth and enlightening information to the American people and 
trying to give them a little alternative to what they oftentimes hear 
coming out of Washington. We try to make sure there is a positive tilt 
to it, because we live in the greatest Nation on the face of the Earth. 
We live in a glorious and wondrous Nation. It is a Nation that still is 
seen by men and women around the world as a beacon of liberty and a 
repository of hope.
  I am so honored and proud to serve in the United States House of 
Representatives and to have the opportunity to share a positive 
perspective and a positive vision with my colleagues and with the 
American people.

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