[Congressional Record (Bound Edition), Volume 152 (2006), Part 6]
[House]
[Pages 7784-7798]
[From the U.S. Government Publishing Office, www.gpo.gov]




      CONFERENCE REPORT ON H.R. 4297, TAX INCREASE PREVENTION AND 
                       RECONCILIATION ACT OF 2005

  Mr. THOMAS. Mr. Speaker, pursuant to House Resolution 805, I call up 
the conference report on the bill (H.R. 4297) to provide for 
reconciliation pursuant to section 201(b) of the concurrent resolution 
on the budget for fiscal year 2006.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to House Resolution 805, the 
conference report is considered read.
  (For conference report and statement, see proceedings of the House of 
May 9, 2006, at page 7395).
  The SPEAKER pro tempore. The gentleman from California (Mr. Thomas) 
and the gentleman from New York (Mr. Rangel) each will control 30 
minutes.
  The Chair recognizes the gentleman from California.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am pleased that the House is finally able to take up 
the conference report. The last time the House visited the 
Reconciliation Act of 2005 was in December of last year. The minority 
was very much concerned about dealing with the alternative minimum tax 
problem facing millions of American taxpayers.
  We were also concerned, primarily on this side of the aisle, with 
making sure that the economy continued its robust growth. I am very 
pleased to announce today that there should be near unanimous support 
on the other side of the aisle for this reconciliation agreement.
  When we offered the alternative minimum tax outside of 
reconciliation, we got 414 votes for providing that alternative minimum 
tax relief outside of reconciliation.
  Subsequent to the House passing the reconciliation measure, my 
friends on the other side of the aisle offered, not once but twice, 
motions to instruct to require the conference to place in the 
reconciliation measure alternative minimum tax repeal.
  It is my pleasure to announce today that the wishes of my friends on 
the other side of the aisle have been granted. The alternative minimum 
tax, in the most comprehensive way ever offered, is part of this 
package; because it is so comprehensive, that more than 15 million 
Americans will not pay the alternative minimum tax once this bill 
becomes law in 2006, and that, in addition, more than 2 million 
taxpayers will not have any liability because of this bill. Because of 
its comprehensive nature, this is the only opportunity for Members of 
the House to vote to provide alternative minimum tax relief to 
taxpayers.

                              {time}  1630

  And so I look forward to having my colleagues join me since we have 
provided in the reconciliation package what they have voted for and 
have asked for.
  I am also pleased to announce to my friends on both side of the aisle 
that this measure also contains a provision which extends one of the 
primary stimulus factors in the economy, and that is the ability to pay 
only a 15 percent tax on dividends for investing in the economy and 15 
percent on capital gains for taking a risk opportunity in the economy.
  I will say for those items that were in both the House and the Senate 
bills that are not part of this package, we are working on an 
additional important tax relief package which will provide that 
opportunity. And I know my colleagues on the other sides of the aisle, 
especially those who represent the States that will see the greatest 
relief under the alternative minimum tax, those Members who represent 
the States of California, New York, Florida, Pennsylvania, 
Massachusetts, New Jersey, they will be pleased to note that a ``yes'' 
vote on this reconciliation measure provides the tax relief and, I 
might underscore, the only opportunity for tax relief on the 
alternative minimum tax measure.
  I might say in the reverse, that if a Member does not vote for this 
measure, they are, in essence, then voting to raise taxes on more than 
15 million Americans.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.

[[Page 7785]]

  Mr. Speaker, well, the Republicans are coming. The Republicans are 
coming. The Republicans are coming with relief for the alternative 
minimum tax. It is the same way they were coming to give our older 
people prescription drugs. Work through the maze, and at the end of it 
we will give you a penalty. The Republicans are coming in order to 
balance the budget, but we just have to borrow more money from China 
and around the world.
  Just how gullible do you think that the American people can be? I can 
imagine now in November my colleagues, Republicans, running around with 
a sign, ``I am from the Republican Congress. I am here to help you.''
  You cannot believe it. If you want the alternative minimum tax the 
way they are offering it, wherever the conference was, you have to 
swallow with that a tax bill, a tax cut bill that costs over $40 
billion. And this only would help a fraction of 1 percent of the 
wealthiest Americans in the world.
  So if you want equity and fair play, which they refuse to give in the 
House for the alternative minimum tax, all you have to do is hold your 
nose and let them continue to give the tax cut to their rich friends 
and then tell you this is the last chance that the train of equity is 
coming through your neighborhood.
  Well, it is not the last time, because we have a motion to recommit 
to tell the conferees to take care of those 81 million people that are 
caught up in this tax hookup which they should not be and to drop the 
rest of it and to let you try to do something with the deficit.
  So let's focus not on the fact that this is the last train in town to 
help, but Democrats are on the way to really help by knocking off the 
tax cuts that no one is asking for except the administration and K 
Street, and concentrate on what we are here for.
  And so it just seems to me that you should not frighten people to 
join some HMO and hold back their drugs and you should not frighten 
people that you are not going to get relief from the alternative 
minimum tax unless you buy the whole package, which is an additional 
$50 billion of unfair, undeserved tax cuts for the wealthy.
  Mr. Speaker, I reserve the balance of my time.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I do want to make a slight correction on a factual 
basis. The gentleman from New York knows full well, in the 
reconciliation package the single largest item is the alternative 
minimum tax relief.
  Mr. Speaker, I yield 2 minutes to the gentleman from Arizona (Mr. 
Hayworth), a member of the committee.
  Mr. HAYWORTH. Mr. Speaker, I think my colleague from California, the 
chairman of the Ways and Means Committee, for this time and as always, 
I listened with interest to my good friend from New York, and I think 
it illustrates some very real differences.
  Tax relief should not be partisan. And part of what we actually do 
here in the people's House is practice the art of the possible. And so 
before this House today we have much-needed tax relief.
  The alternative minimum tax, or AMT, has become Uncle Sam's ATM. Too 
much, too often have we seen the Federal Government reach into the 
pockets of middle-income taxpayers, and with this legislation today, we 
put a stop to using the AMT as Uncle Sam's ATM. That is something that 
the American people want to see.
  And there is other thoughtful tax relief here because, in stark 
contrast to the bleak picture painted by my friends on the other side 
of the aisle, we understand that there is no reason to penalize people 
who succeed. By extending the 15 percent rate on dividend and capital 
gains taxes through 2010 and extending the increased small business 
expensing through 2009, we are not punishing people for succeeding. 
That is vital.
  Is it important to Wall Street? Yeah, Mr. Speaker, it is important to 
Wall Street. But it is important to Main Street and it is important to 
your street, Mr. Speaker, every street in this Union, every 
neighborhood, because it helps to generate wealth and investment and 
that is what we are about here.
  I ask the House to adopt this legislation.
  Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Stark), a senior member of the Ways and Means Committee 
and a hardworking member.
  Mr. STARK. Mr. Speaker, I would like to thank the distinguished 
gentleman from New York for yielding me time.
  This $70 billion sham defrauds the working class to line the pockets 
of the super-wealthy friends of the Republican Party. Taxpayers with 
incomes of over $10 million will have received on average $500,000 from 
the Republican capital gains and dividend cuts, and hardworking 
Americans making under $50,000 have average tax savings of $10; 
$500,000 if you are rich; $10 if you are just getting along.
  Capital gains and dividend tax breaks benefit the rich, not the 
working class. Here is a chart that indicates how this money is 
distributed: $20 to the average middle-income household, $42,000 to 
those making over a million bucks.
  You can see here we have taken care, the Republicans have taken care, 
of Members of Congress, they gave us $1,388, at least for those who are 
only working in the public trough. Not bad.
  But this bill wastes $70 billion on millionaires that could be used 
to improve people's lives. With that $70 billion, $39 billion in 
unnecessary cuts to Medicaid which hurts the health care of children, 
disabled and the poor could be restored. We could fund the President's 
great bragging rights to the No Child Left Behind with $9 billion and 
provide health insurance for every child in this country for $20 
billion, and there might even be a few bucks left over to decrease the 
deficit.
  So you have here, amidst all the cute rhetoric on the other side, 
voodoo economics at its most ridiculous and radical extreme and moral 
reprehensibility that gives $100,000 to millionaires, but takes health 
care away from families earning less than $16,000 a year. Vote ``no.''
  Mr. Speaker, I rise today in strong opposition to the Republican tax 
reconciliation conference report. I'd like to say it was an honor to 
sit on the conference committee, but this backroom deal was cut without 
any input from House Democratic conferees. The predictable result is a 
Republican agreement that benefits millionaires at the expense of 
working families.
  You don't have to dig far into this bill to realize it helps the rich 
get richer, while doing little for hard working American families. The 
extended dividends and cap gains tax breaks didn't even expire until 
2008, but Republicans wanted to reward their rich campaign donors 
before the November elections. As a result, people making over $10 
million get an average capital gains and dividends tax breaks of about 
$500,000 a year. These cuts give families making under $50,000 a 
whopping $10 tax cut. It is clear where the Republican priorities lie.
  Some will say that other tax cuts in this bill help the working 
class. The facts don't support that argument. Families struggling to 
get by on less than $20,000 a year get only $2 in average tax breaks 
from this bill. Average middle income households only get $20. Where 
could all these tax cuts go? The answer is simple, those making over 
$1.6 million--the top 0.1 percent of all taxpayers--get $82,000 a year 
in tax breaks from President Bush and their Republican friends in 
Congress.
  In sum, this tax reconciliation bill is a $70 billion boondoggle for 
America's wealthiest taxpayers. Wouldn't it make a little more sense to 
spend this money to help people in need? We could easily eliminate the 
entire $39 billion in cuts Republicans made last fall to programs like 
Medicaid, student loans and food stamps. That would leave us $31 
billion to fully fund Bush's No Child Left Behind education plan and 
provide every child in the country with health insurance. There might 
even be some money left over to help decrease the budget deficit mess 
Bush has gotten us in.
  It is clear this bill benefits the rich at the expense of the working 
class, but that isn't the whole story. Just as Bush lied about weapons 
of mass destruction to lead us into the quagmire in Iraq, Congressional 
Republicans are lying about the true cost of this legislation. This 
bill pays for the tax cuts for the wealthy by actually raising some 
taxes in the short-

[[Page 7786]]

term. Many of the so-called ``revenue raisers'' in the bill will 
actually end up being huge tax breaks in future years. One specific 
provision allows people to cash out traditional IRAs and convert them 
into Roth IRAs. This raises revenue in the first few years, but will 
cost up to $1 billion dollars a year starting in 2013. Who benefits 
most from this future tax break? You guessed it . . . families making 
over $150,000 a year.
  Regardless of what some may say, tax cuts for the wealthy do not 
generate economic growth, jobs or increased wages. The only people that 
win under the Republican reconciliation plan are the millionaires who 
receive all the tax breaks. It is immoral to give a millionaire an 
extra $100,000 while we're taking Medicaid benefits away from a family 
of three making under $15,750.
  I urge all my colleagues to stand up for the working class and vote 
against these irresponsible and immoral tax breaks for the rich.
  Mr. THOMAS. Mr. Speaker, I yield myself 1 minute.
  What the gentleman just quoted was indeed on the front page of The 
Washington Post today and it comes from the Tax Policy Center. Of 
course, what he did not bother to do is tell you other material that 
has come from the very same Tax Policy Center.
  Because in 2001 we took millions of people off of the tax rolls, and 
so for the first time many people making $10,000 to $20,000 do not pay 
any taxes. And what the Tax Policy Center said was, the top 50 percent 
pay 97 percent of all Federal income taxes.
  We are good, but when we remove people from the tax rolls who do not 
pay any taxes, how would they expect to get money back? That is, of 
course, the other side of the story, and it comes from the very same 
center that the gentleman just quoted.
  Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr. 
Herger), a valued member of the Ways and Means Committee.
  Mr. HERGER. Mr. Speaker, I rise in strong support of the tax relief 
before us. Of the major provisions of the tax reconciliation, two 
particularly stand out as encouraging economic expansion and continued 
job creation: the 2-year extension of the current 5 percent capital 
gains and dividend rates and the continuation of section 179 expensing 
limits.
  I have long supported enhanced small business expensing through 
legislation, and I am pleased this provision was included in the final 
bill. Studies show that a majority of small firms benefit from 
expensing, helping to speed up cost recovery on new investment, 
contributing to small business growth. Since small businesses provide 
roughly two-thirds of new job creation in the United States, such 
growth translates into new jobs for Americans.
  I have also heard from northern California seniors about the 
importance of capital gains and dividends to their retirement income, 
and they are not alone. Future tax rates on investment earnings affect 
the decisions that families and businesses make today. Extending the 
lower rates for capital gains and dividends provides tax certainty, 
helping to boost investment. For proof, we need look no further than 
today's Dow Jones Industrial Average, again reaching historic highs.
  According to a Wall Street Journal piece from a few days ago, capital 
gains tax Federal receipts rose 79 percent after the new rates went 
into effect in 2003; dividend tax receipts rose 35 percent. This is 
further evidence that the lower rates actually produce increased 
revenues.
  Mr. Speaker, I urge everyone's support.
  Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the gentleman said the Wall Street Journal says we are 
doing well. The Main Street Journal says people are going into 
bankruptcy. They are losing their pensions; they are losing their 
health insurance. It depends on what paper you read.
  Mr. Speaker, I yield 2 minutes to the gentleman from Michigan (Mr. 
Levin), an outstanding member of the Ways and Means Committee.
  Mr. LEVIN. Mr. Speaker, two quick comments.
  Mr. Thomas, when you say that the people taken off the rolls a few 
years ago do not pay any taxes--you did, twice you said that.
  Mr. THOMAS. Mr. Speaker, will the gentleman yield on my time?
  Mr. LEVIN. Yes, Mr. Speaker.
  Mr. THOMAS. If, in fact, I said taxes, I obviously meant income 
taxes, and I appreciate the gentleman's bringing that point to me. And 
I would like the record corrected to say, they do not pay income taxes.
  Mr. LEVIN. Okay. I hope in the future Republicans who keep on saying 
they do not pay taxes will not say that anymore.
  Mr. THOMAS. Mr. Speaker, will the gentleman yield on my time?
  Mr. LEVIN. Yes, Mr. Speaker.
  Mr. THOMAS. I do appreciate having you around making sure that 
everyone understands that what we did in 2001 was take millions of 
people off of the income tax rolls.
  Mr. LEVIN. Right, and they continue to pay all kinds of taxes, and 
indeed they are paying taxes compared to what very wealthy people are 
not overall paying.
  Mr. THOMAS. Mr. Speaker, will the gentleman yield on my time?
  Mr. LEVIN. Let me just finish.
  Look, another point, we have voted, we Democrats, two or three times 
on the AMT. We voted two or three times. You are Johnnie-Come-Latelys. 
So now what you say is, vote for a bill that has that in it, but has 
these provisions on dividend and capital gains.
  As Mr. Stark said, essentially you are bringing a tax bill here that 
has caviar for the very wealthy and mostly crumbs for most everybody 
else. That is what you are doing, and the chart shows it: a household, 
50- to 75,000, $110; a household from $500,000 to $1 million, $5,500; 
and more than $1 million, $41,000.

                              {time}  1645

  I read in an editorial a few days ago in the Post, ``While the income 
of the families in the middle fifth of society has grown 12 percent 
since 1980, the income of the top 10 percent has grown 67 percent, and 
the income of the top 1 percent has more than doubled. In short, the 
rich have grown a whole lot richer.''
  So what you are doing here is giving this immense tax break to a 
relatively few very wealthy people, and you are combining it tomorrow 
with a budget bill, according to your own language, and I quote, ``the 
debt limit will be increased from $8.965 trillion to $9.618 trillion in 
an increase of $653 billion'' under your proposal.
  So you are saying give the very wealthy, making $1 million or more, 
45 percent of this tax bill, while you are increasing tomorrow the 
national debt by over $653 billion.
  If your great tax policies have brought such great economic growth, 
why is the debt limit being raised $653 billion?
  Mr. THOMAS. Mr. Speaker, how is the time distributed at this point?
  The SPEAKER pro tempore (Mr. Culberson). The gentleman from 
California (Mr. Thomas) has 20 minutes remaining, and the gentleman 
from New York (Mr. Rangel) has 24 minutes remaining.
  Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Maryland (Mr. Cardin), a senior member, hardworking member, in the Ways 
and Means Committee.
  Mr. CARDIN. Mr. Speaker, let me speak on behalf of our children and 
our grandchildren.
  Mr. Levin pointed out our national debt, the actual debt now is $8.3 
trillion, $28,000 per person in this country. What we have is a birth 
tax, and we are adding to that birth tax.
  This bill, as advertised, adds another $70 billion or $69 billion to 
the debt, but when you look at it, it is much higher because we are 
using gimmicks again. We remove the income ceiling on Roth IRAs, and we 
count that as a revenue gain of $6 billion when we know, in fact, it 
will lose revenue for the Treasury to the tune of $1.3 trillion a year.
  So we are using gimmicks and we are going deeper and deeper into 
debt. We are doing this for what? Why do we not have offsets?
  You look at the extension of dividend exclusion, the dividend 
exclusion does not end until 2008. Why do we not work out a program to 
pay for these extensions?

[[Page 7787]]

  We tell our students they have got to pay more for their college 
education, and that we are not going to provide the relief because we 
do not have the money.
  We tell our veterans we cannot provide the health care that we 
promised them because we do not have the money in the budget; but the 
tax cuts, that do not expire until 2008, we can put in this bill, 
knowing full well it is going to add to the deficit of the Nation.
  Where is fiscal responsibility? Why are we not looking after our 
children and grandchildren? Why are we adding more debt to what they 
are going to have to pay? We could have a responsible bill that deals 
with the alternative minimum tax, that deals with selective inequity 
that we have in the Tax Code, and we could pay for every dime of that 
tax cut, as we should, so we do not add to the deficit of the Nation.
  In the last 5 years, we have accumulated more debt held by foreign 
countries of U.S. debt than in the first 225-year history of America. 
It is a matter of national security that we pay our bills.
  This bill moves in the wrong direction. I urge my colleagues to 
reject it.
  Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 2\1/2\ minutes to 
the gentleman from Pennsylvania (Mr. English).
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, I thank the gentleman for 
his superb work in conference. I rise on behalf of this conference 
report because I stand here today on behalf of the next generation.
  We have heard some rhetoric on the other side, but the fact remains, 
the next generation needs new jobs. The next generation needs economic 
growth, and it is fairly clear, contrary to the rhetoric on the other 
side, economic growth helps the working class. It is the key to social 
justice, and ultimately, it is the solution to our deficit.
  We need to leave in place the current tax policies that are working, 
that have been so successful in creating the fastest growth in 20 
years, 138,000 jobs created last month, 18 consecutive quarters of 
growth averaging 3.2 percent. Our trading partners for the most part 
cannot match that. We are doing it because we have put in place clear 
growth incentives, including the right rate on capital gains and the 
right tax treatment of dividends.
  The other side wants to repeal those reforms. The other side wants, 
as usual, to raise taxes. The other side wants to talk about revenues 
that, if these tax rates went up, probably would not be realized. There 
is an absurdity to the tax policy as advocated on the other side that 
schedules a capital gains hike, that schedules a phase-out of the 
proper tax treatment of dividends, and puts in place all sorts of 
distortions that ultimately will reduce the effectiveness of the 
market.
  What we need to do is continue our commitment to economic growth and 
send a clear message to national markets that we are going to continue 
the tax treatments, the tax policies, that have yielded these economic 
benefits.
  Let us pass this legislation. Let us extend for 2 more years the tax 
treatment of capital gains. Let us continue our commitment to economic 
growth.
  May I add, as I was listening to the comments of the speaker from 
Michigan, he was mentioning the other taxes that people pay, other than 
the income tax; and he should have noted that those are their Social 
Security and Medicare contributions. For the most part, those taxes are 
a process of earning benefits.
  It is fairly clear that the Republican majority has taken thousands 
of families off of the Federal income tax rolls to their permanent 
benefit.
  Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
  I do not know what kind of water they drink on the other side of the 
aisle, but back where I come from, you get a check that tells you how 
much you have earned and how much is deducted, and what is deducted is 
a tax and what you take home is net. So you can call it payroll, you 
can call it income tax, but a tax is a tax is a tax.
  Mr. Speaker, I yield 2 minutes to the gentleman from the State of 
Washington (Mr. McDermott), an outstanding member of the Ways and Means 
Committee.
  Mr. McDERMOTT. Mr. Speaker, the Republican rubber-stamp Congress is 
in session. Republicans are going to rubber stamp the last act of the 
budget. The first act was in December when the Republicans took from 
the poor, the disadvantaged and the foster kids, the people on food 
stamps and students trying to get a student loan.
  The Republicans emptied one Christmas stocking, but they thought it 
would be unseemly to immediately give it to the rich right in front of 
the poor. So they waited and they waited and they waited, and finally, 
today, they think the people have forgotten and gone to sleep. So they 
are going to give it to the rich.
  The party of 1 percent is going to get a reward. The millionaires are 
going to get a windfall for which they did nothing except attend fund-
raisers. Every millionaire will get a windfall of $41,000. The average 
American makes exactly that during a year. He will get $16. 
Millionaires, $41,000; ordinary people, $16.
  Those are real numbers, no matter what they say, and that means it is 
reward the rich, ignore the poor. That is the Republican rubber stamp 
of the President's views on the world.
  They say it will increase savings. The savings rate in this country 
is zero. In fact, it is less than zero. Ninety-nine percent of the 
people in this country are not better off, only the 1 percent who get 
the rubber stamp today; and the rest of America is forced to choose 
between filling the gas tank and putting food in the refrigerator.
  Now, they all brought their rubber stamps today, but what they have 
not told you, and I will enter into the Record at this point the 
article from The Washington Post from May 9.

                 [From washingtonpost.com, May 9, 2006]

               Another Possible Bump to the Debt Ceiling

               (By Jonathan Weisman and Shailagh Murray)

       A $2.7 trillion budget plan pending before the House would 
     raise the federal debt ceiling to nearly $10 trillion, less 
     than two months after Congress last raised the federal 
     government's borrowing limit.
       The provision--buried on page 121 of the 151-page budget 
     blueprint--serves as a backdrop to congressional action this 
     week. House leaders hope to try once again to pass a budget 
     plan for fiscal 2007, a month after a revolt by House 
     Republican moderates and Appropriations Committee members 
     forced leaders to pull the plan.
       Leaders also hope to pass a package of tax-cut extensions 
     that would cost the Treasury $70 billion over the next five 
     years. They would then turn Thursday to a $513 billion 
     defense policy bill that would block President Bush's request 
     to raise health-care fees and co-payments for service members 
     and their families.
       In recent days, Congress has received some good news on the 
     budget front. A surge of tax revenues this spring, sparked by 
     economic growth, prompted the Congressional Budget Office 
     last Thursday to revise its 2006 deficit forecast from around 
     $370 billion to as low as $300 billion. But the federal debt 
     keeps climbing because of continued deficit spending and the 
     government's insatiable borrowing from the Social Security 
     trust fund. With passage of the budget, the House will have 
     raised the federal borrowing limit by an additional $653 
     billion, to $9.62 trillion. It would be the fifth debt-
     ceiling increase in recent years, after boosts of $450 
     billion in 2002, a record $984 billion in 2003, $800 billion 
     in 2004 and $653 billion in March. When Bush took office, the 
     statutory borrowing limit stood at $5.95 trillion.
       Democrats will harp on those statistics not only in the 
     budget debate but also when the House takes up tax 
     legislation expected to finally emerge from House-Senate 
     negotiations today. The legislation would extend for two 
     years the deep cuts to tax rates on dividends and capital 
     gains that Congress approved in 2003. It would also slow for 
     one year the expansion of the alternative minimum tax, a 
     parallel income tax system designed to hit affluent but 
     increasingly pinching the middle class.
       Although the debate will be rancorous, the tax measure is 
     expected to pass by a comfortable margin. The budget vote 
     will be closer. House leaders had to pull the budget plan 
     from the floor in April, after moderate Republicans balked at 
     planned cuts to health and education programs and 
     appropriators objected to limits on home district pet 
     projects--known as earmarks--and a provision that would limit 
     emergency spending for natural disasters to about $14 3 
     billion a year.

[[Page 7788]]

       Appropriators have come on board, Appropriations Committee 
     spokesman John Scofield said. GOP leaders and committee 
     chairman Jerry Lewis (R-Calif.) tried to win moderate support 
     last week by cutting $4 billion from the president's defense 
     spending request and adding that money to labor, health and 
     education programs. But some moderates are still holding out.
       ``I expect they do not have the votes right now,'' said 
     Rep. Michael N. Castle (R-Del.), a leader of the balking 
     moderates. ``Could they get the votes by the end of the week? 
     I'd give it a 50-50 chance.''


                         GOP HEALTH-CARE REDUX

       It's ``health week'' in the Senate, but don't expect any 
     big policy cures. Republicans are seeking to pass legislation 
     that would restrict malpractice awards and encourage 
     insurance pools among small businesses. The three bills are 
     GOP perennials that in the past have met with staunch 
     opposition by Democrats and interest groups. Given the high 
     stakes of the midterm election year, the prospects this week 
     don't look any brighter. Two of the bills, both aimed at 
     limiting medical malpractice jury awards, stalled in the 
     Senate last night after failing to gain enough votes to 
     overcome Democratic-led procedural hurdles.
       The first measure, sponsored by Sen. John Ensign (R-Nev.), 
     would allow up to $750,000 for non-economic damages and 
     unlimited economic damages. A patient could recover up to 
     $250,000 from a health-care provider and up to two health-
     care institutions each for a total of $750,000. The bill also 
     would guarantee timely resolution of claims by mandating that 
     health-care lawsuits are filed within three years of the date 
     of injury, establish standards for expert witnesses and limit 
     attorneys' fees. The second measure would target lawsuits 
     against obstetric and gynecological providers and was 
     sponsored by Sen. Rick Santorum (R-Pa.), whose wife won 
     $175,000 in damages in a malpractice case against a 
     chiropractor. Democrats mocked the bills as a gimmick 
     designed to rally conservative voters and appease doctors and 
     insurance companies. ``This is not a serious attempt,'' said 
     Sen. Edward M. Kennedy (D-Mass.).
       The third bill up this week, offered by Sen. Mike Enzi (R-
     Wyo.), would allow business and trade association to band 
     their members together and offer group health coverage on a 
     national or regional basis. Opponents warn that it would set 
     the ``barest of bare bones standards for benefits,'' as one 
     Democratic press release put it, undercutting requirements to 
     cover cancer screening, well-baby care, immunization, access 
     to specialists and other services.

  They are going to raise the debt limit as the icing on this cake. 
They are still giving it away faster than it is coming in.
  So when they bring the budget out here, if they ever have the guts to 
bring a budget out here, we are 7 months into a new year and you have 
no budget, they are going to raise the debt limit. So watch them. Just 
remember, this is the rubber stamp and the President's view.
  Vote ``no.''
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  I heard my colleague say a tax is a tax is a tax. Everyone knows a 
consumption tax buys you a fish for a day; an investment buys a fishing 
pole and bait, and you eat for a lifetime.
  A tax is not a tax is not a tax. Capital gains, dividends are a 
fishing pole and bait. The kind of taxes they go for is a fish.
  Eat for a day or eat for a lifetime. Our taxes provide a lifetime of 
benefits.
  Mr. Speaker, it is my pleasure to yield 2 minutes to the gentleman 
from Colorado (Mr. Beauprez), a valued member of the Ways and Means 
Committee.
  Mr. BEAUPREZ. Mr. Speaker, I thank the chairman of the committee and 
applaud him for bringing this legislation to the floor. It has made a 
difference in real American lives and the folks that we all represent.
  I want to talk about one of those, Mr. Speaker. Her name is Linda 
Jones. Linda Jones operates two rental facilities in Westminster, 
Colorado, called Area Rent-Alls, just little equipment rentals like we 
have in all of our neighborhoods back in our districts.
  She utilized section 179 expensing that is so much a part of this 
legislation that we are bringing in today, and in 2003, she bought 
$57,000 worth of new equipment. Somebody had to manufacture that 
equipment. Somebody had to retail that equipment. Somebody had to 
deliver it to a store. That is jobs.
  From that, she saved $7,360 in expense. She applied that $7,360 to 
the health care costs for her employees. Health care costs were very 
much on the rise; she used the tax savings to benefit her workers in 
her shop.
  The next year, she bought $64,000 of additional equipment and used 
the savings for the same thing, to buy down the increase in health care 
costs that she experienced on behalf of her employees.
  Here is what she says: ``The availability of section 179 motivates me 
to continue to grow my business and is a key component within my 
business plan. My goal is to build my rental businesses of two more 
rental stores into one new location. The goal is achievable in a more 
reasonable time frame only because of the availability of section 179. 
It is a vital part of my planning for the future and ensuring a bright 
and profitable future for my rental business and my employees.''
  It works for real, live Americans. It creates jobs and makes those 
with jobs lives much better and more secure.
  I thank the chairman again.
  Mr. RANGEL. Mr. Speaker, I am glad to yield 2 minutes to the 
gentleman from Georgia (Mr. Lewis), the conscience of the Congress, 
from the Ways and Means Committee.
  Mr. LEWIS of Georgia. Mr. Speaker, there is a time when a politician 
must put politics aside. There is a time when we must stand up and meet 
our moral obligation as servants of the people.
  Millions of Americans are struggling today. They work hard. They are 
just trying to make ends meet. They are trying to make a way out of no 
way, and they are looking to Congress for a little bit of light, a 
little bit of hope after a hard day's work.
  They do not want a handout; they just want a fair shake. But with 
this tax bill, we have abandoned our responsibility to the people who 
elected us.

                              {time}  1700

  We have shut the door in their faces. We have told them there is no 
room in the inn.
  In this bill, you cut off the orphaned, the old, the poor, the weak, 
and the sick. In this bill, you cut Medicaid, Medicare, veterans 
benefits and housing programs all in the name of financial discipline.
  Then how can we in good conscience pass a tax bill that helps the 
rich get richer and drives millions of our citizens into financial 
despair? We are asking the poor and the middle class to sacrifice. 
Shouldn't the rich sacrifice, too?
  Where is the mercy, where is the compassion, where is the fairness? 
Our tax policy should be fair.
  I ask you, Mr. Speaker, is it right to have a tax bill that saves 
hardworking American families only $10 a year while millionaires save 
thousands and thousands? With $10 you cannot even fill a tank full of 
gas. You can't pay the light bill. You can't put food on the table or 
clothes on your children's backs.
  Mr. Speaker, this bill is not right. It is not fair. It is not just. 
It demonstrates shameful disregard for the people of this Nation. As a 
Nation and as a people and as a Congress, we must do better and we can 
do better. I ask my colleagues to vote against this tax bill.
  Mr. THOMAS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Illinois (Mr. Weller), a member of the Ways and Means Committee.
  Mr. WELLER. Mr. Speaker, this legislation is all about jobs. Two 
years ago, almost 3 years ago in 2003, this Congress worked with the 
President. We lowered taxes for Americans. We lowered taxes for small 
business. We knew it was time to encourage investment and creation of 
jobs. Frankly, it worked. Over 5 million new jobs were created. 
Unemployment today is at 4.7 percent, lower than the average of the 
1970s, lower than the average of the 1980s, and lower than the average 
of the 1990s. This economy is growing.
  My friends on the other side of the aisle say now is a good time to 
raise taxes. We should cut off that policy that was helping families 
and small business. So the question is who benefits when we put the 
breaks on the alternative minimum tax and cut capital gains and cut 
dividends? Small business does, 25 million small businesses; 28 million 
families benefit on average

[[Page 7789]]

by reduction of almost $990 under 2006 tax returns. And 8.5 million of 
those beneficiaries are seniors who are going to be able to keep $1,144 
on average. Think about that.
  If the Democrats succeed in raising taxes, 28 million families will 
see an average increase on their taxes of $990 this year, thanks to the 
Democrats' efforts to increase taxes. This policy has worked in 
creating jobs. This policy has worked to help regular people keep more 
of what they earn. While Democrats want to raise taxes, let us help 
working families and let us help small businesses by continuing to keep 
their tax burden lower than what the Democrats want. I urge an ``aye'' 
vote.
  Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Massachusetts (Mr. Neal), an outstanding member of the Ways and Means 
Committee.
  Mr. NEAL of Massachusetts. Mr. Speaker, the gentleman from Arizona 
said earlier we ought not to penalize success. What they are asking you 
to do today is to subsidize that success on the backs of working 
Americans. We are stuck in this situation because of what they did at 
the end of last year. Their own Members said their cuts were too 
draconian and hurt too many families, but it allowed them to manipulate 
the rules so that we find ourselves back here today.
  Let us talk about who gets what when this debate concludes. The 
average American family is going to get $20 with the Republican tax 
cut. By the way, this is the sixth and seventh tax cut while we are 
fighting two wars. Where is your conscience when they do not have body 
armor, they do not have the equipment they need in Iraq where they 
serve us so honorably while you cut taxes for Wall Street at the 
expense of Main Street?
  Let us talk about that $42,000 that millionaires are going to get 
with the Republican tax cut and what it means. Think about what you 
could do with that for student aid, which they trimmed last year; as 
they cut Medicare, what you could do with that $42,000. They are giving 
it back to the investors, and where I live $42,000 is annual income for 
thousands of families. They are giving it back to millionaires with 
their tax cuts. And $42,000 is what we pay an enlisted soldier with 3 
years of experience, and they are giving the $42,000 back to 
millionaires.
  $42,000 as they cut Medicaid, $42,000 as they argue that it is okay 
to trim Medicare. It is $20 for those of you who go to work every day 
in America. You know what that means with this administration and this 
Congress, that is 6 gallons of gasoline. Where does it all end with 
their tax cuts?
  Mr. THOMAS. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Pennsylvania (Ms. Hart), a very valued member of the Ways and Means 
Committee.
  Ms. HART. Mr. Speaker, I thank the gentleman for the opportunity to 
speak in favor of H.R. 4297, the Tax Increase Prevention and 
Reconciliation Act. The title is exactly what this bill will do.
  It is important for us to complete our work on this legislation today 
so we can keep our economy growing in the positive direction that it 
has been moving in since we cut taxes. Interesting enough, though, 
those opposed will also oppose reductions in our spending, making it 
very difficult to make sense in making their argument. They want to 
increase spending, and somehow I guess that means we are going to have 
to increase taxes. The results say we need to keep taxes low.
  First, the extension of the enhanced expensing for small business 
will continue to provide incentives for small businesses to expand and 
create more jobs.
  Second, extending the lower rates on capital gains and dividends for 
2 more years will free up additional capital that fuels the economic 
growth that we have experienced over the last 3 years.
  The American economy has rebounded strongly over the past 3 years 
with an average growth rate of 3.9 percent. In the first quarter of 
this year, the growth rate is nearly 5 percent. This growth has 
translated into job creation, with over 5 million jobs created since 
August of 2003, and reducing the national unemployment rate to 4.7 
percent.
  Where I live in western Pennsylvania, we are always the last to see 
the economic growth, until recently. Recent articles in the Pittsburgh 
Post Gazette and our Democrat State Department of Labor have admitted 
that Pittsburghers are finding jobs. A Labor Department analyst, 
Michele Heister, called the latest trend encouraging, and we are 
showing signs of recovery.
  The truth is we need to keep taxes low. The truth is we need to keep 
money in the hands of entrepreneurs who are the job creators. The truth 
is the policy that those on the other side of the aisle advocate will 
kill our economy and cause job loss. I encourage my colleagues to 
support the good, sound economic policy in this legislation.
  Mr. RANGEL. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from 
Maryland (Mr. Hoyer), our outstanding minority whip.
  Mr. HOYER. Mr. Speaker, the first plank of the Contract With America 
was fiscal responsibility. No political promise has ever been so broken 
as that one.
  Mr. Speaker, this blatantly unfair and grossly irresponsible 
legislation represents the last gasp of the Republican Party's failed 
economic policies which have only caused greater disparity in America 
and driven our Nation into the fiscal ditch over the last 5\1/2\ years.
  Today, our Republican friends are desperate to pass this conference 
report because they realize after November the party is over. Make no 
mistake, Mr. and Mrs. America, about what this legislation means to 
you. According to the Urban Institute-Brookings Institution Tax Policy 
Center, if you are among the 0.02 of households making $1 million a 
year, you get a tax cut of $42,000. If you are struggling to make ends 
meet, earning between $10,000-$20,000, you get $2 a year. If you are 
firmly in the middle with household incomes between $75,000-$100,000, 
you get about $400 a year, or $4.75 per week, enough to purchase about 
3 gallons of gasoline.
  Yesterday Republican Senator Olympia Snowe of Maine stated, ``The 
preponderance of these revenues will go to upper income people, people 
who make a million dollars or more. It is a question of priorities.'' 
Priorities, indeed.
  Four months ago congressional Republicans slashed $39 billion from 
student loans, Medicaid and Medicare and child support enforcement. And 
today, 5.4 million more Americans live in poverty than when President 
Bush took office, and 6 million more are without health insurance. Real 
median household incomes are down $1,670, and still, Republicans want 
to give millionaires a new Lexus.
  This conference report is a continuation of 5\1/2\ years of the most 
irresponsible fiscal policies in the history of our country. I urge my 
colleagues to vote against this legislation. Stand up for our country, 
stand up for our children, stand up for our grandchildren. Vote ``no.''
  Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 2 minutes to the 
gentleman from Florida (Mr. Shaw), a senior member of the Ways and 
Means Committee.
  Mr. SHAW. Mr. Speaker, I think what we are seeing here is a basic 
difference between the two political parties.
  Ten years ago almost to the date I stood in this well, as well as 
Members from the other side of the aisle coming to this floor to speak, 
and the subject at that time was welfare reform. And what split us at 
that time, what split us was because the Republicans had faith in the 
human spirit. We heard time after time, speaker after speaker came to 
that podium right over there to my right and said women and children 
were going to be sleeping on grates. The reason is you had no faith in 
the human spirit. You had no faith that those that were poor wanted to 
do better.
  As a result, we created jobs. We created many, many jobs. Now you are 
showing that same skepticism with regard to what is going to happen if 
you let people keep more of their own money.
  Nearly 60 percent of those who are going to benefit by the capital 
gains

[[Page 7790]]

rate being at 15 percent and also the dividend, tax on dividends at 15 
percent, almost 60 percent earn incomes under $100,000. And what are 
these people doing, what is happening? They are reinvesting it in 
American business because they believe in the capitalistic system. It 
is working. We have one of the lowest unemployment rates in the entire 
world. The rate of 4.7 percent is lower than it was throughout the 
1970s, 1980s and 1990s.
  When I first came to Congress 26 years ago, we thought between 5 and 
6 percent was a target for full employment. We have shattered that 
myth. Now it is 4.7. Why? Because we have faith in the system of 
capitalism which we embrace through this bill. People will reinvest 
their money. Where does it go? It creates jobs.
  The gentleman from Georgia was talking about putting clothes on the 
backs of the children. Yes, is there any prouder way to do it than 
through a job? A real job? We have created a tremendous number of jobs 
through the tax rates that we have put in place.
  This is a fair bill. This is a bill that is going to benefit all 
Americans. It will raise all ships.
  Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Texas (Mr. Doggett), a hardworking member of the Ways and Means 
Committee.
  Mr. DOGGETT. Mr. Speaker, some folks really do get all of the breaks, 
and I am not talking about winning the lottery. The lobbyists are 
winning. The very wealthiest few in this country continue to hit the 
jackpot with their Republican friends controlling Washington.
  The tax breaks in this bill will ensure that the ever-growing gap 
between the rich and the poor in America continues growing.

                              {time}  1715

  And our deficit will keep growing, also, imposing a greater and 
greater burden on our children and on our grandchildren.
  The Republicans say that further tax breaks are a necessity, and I 
guess they are right. With gas prices skyrocketing, the occupation of 
Iraq showing no end and poll numbers nosediving, more tax breaks for 
the wealthiest few are what Republican supporters view as a political 
necessity.
  They are right. It is a jobs bill. It is their jobs that it is a bill 
about. They will pay any price with your children and grandchildren's 
tax dollars to cling to power up here.
  The administration can't capture Osama Bin Laden. It can't meet the 
prescription needs of our seniors. It can't agree on what to do about 
immigrants. About the only issue around on which they can reach any 
agreement is more tax breaks for the privileged few.
  Yes, President Clinton did sign an end to welfare as we know it, but 
corporate welfare has never had a better friend than this Republican 
caucus. Never mind that they have to borrow money from all to give tax 
breaks to a few. Never mind that this is the first time in recorded 
history that a country has embarked on a war by saying to some people, 
you must die for your country, and to others, you must stuff your 
pocket with more tax breaks. Some shared sacrifice.
  A ``no'' vote today is a vote for fiscal responsibility. It is a vote 
for long-term stability over short-term gimmicks. A ``no'' vote is a 
step forward in freeing our children from the burdens of today's 
Republican excesses.
  Mr. HOYER. Mr. Speaker, will the gentleman yield?
  Mr. DOGGETT. I yield to the gentleman from Maryland.
  Mr. HOYER. Our Republican friends have talked a lot about jobs. Under 
the Clinton administration, we created 216,000 jobs per month. Under 
the Bush plan we have created 21,000, on average, per month.
  Mr. THOMAS. Mr. Speaker, I yield myself 30 seconds to engage in a 
colloquy with the gentlewoman from Florida (Ms. Ginny Brown-Waite).
  Ms. GINNY BROWN-WAITE of Florida. Mr. Chairman, the deduction of 
State and local sales taxes is extremely important to my constituents 
and those in States that do not have an income tax.
  Do you expect to present a bill to extend this crucial deduction 
soon?
  Mr. THOMAS. I will tell my colleague that in my opening remarks I 
indicated that there were provisions that passed both the House and the 
Senate in the reconciliation packages that are not part of this bill. 
We are working currently on this next bill. Clearly, the State and 
local tax deduction will be a part of it, and we will move it to the 
floor as soon as possible.
  Mr. RANGEL. Yeah, that next bill will probably be $100 billion.
  Mr. Speaker, I yield 2 minutes to the gentleman from North Dakota 
(Mr. Pomeroy), an outstanding member of the Ways and Means Committee.
  Mr. POMEROY. Mr. Speaker, the majority Members have said this is all 
about jobs. No, it's not. It's all about debt.
  Let me tell you something that you are not going to hear from a 
single proponent for this tax cut. The passage of it is going to 
necessitate raising the borrowing limit for our country yet another 
time because we are spiraling into further red ink under their reckless 
fiscal policy.
  Look at the record. June 2002, they raised the debt. May 2003, they 
raised the debt. November 2004, they raised the debt. March of this 
year, they raised the debt. And do you know what we have now 
discovered? In their budget documents that will be presented on this 
floor this week or next, they are going to raise the debt again. They 
just raised it in March, now they are going to raise it again.
  The record of this President will be that 42 Presidents left this 
country with a debt of $5.6 trillion, and under the watch of President 
George W. Bush, that debt will double.
  This could not be happening at a worse time. Seventy-eight million 
Americans are going to retire next decade. The draw on Social Security 
and Medicare will begin. And yet we are saddling those that will follow 
in our country with this staggering debt even while we have the 
entitlement obligations to meet.
  This feeding frenzy of more tax cuts, deeper fiscal imbalance, more 
borrowing, yet another borrowing, has got to stop. We are leaving our 
children with a legacy of debt they will never get out of.
  Do you know any family whose approach to retirement is to blow 
everything they have got, expecting fully that the children are going 
to take care of their debts, pay their medical bills, give them income 
to live on in retirement? Of course not. Families take care of their 
children. This Congress is selling our children short by saddling them 
with unending debt.
  Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 1 minute to the 
gentleman from Tennessee (Mr. Duncan).
  Mr. DUNCAN. Mr. Speaker, just today one leading national newspaper 
reported the Federal revenue has gone up 11.2 percent in the first 7 
months of this fiscal year over last year, three times the rate of 
inflation. The tax cuts enacted under Chairman Thomas' leadership have 
strengthened the economy so much that not only has Federal revenue gone 
way up, but growth was 4.8 percent the first quarter, and unemployment 
is at a very low 4.7 percent.
  Now, as to the deficit and the debt that some on the other side have 
mentioned, they are too high. But those on the other side attack us 
continually for not spending enough on every program out there. Well, 
you can't have it both ways. You can't continually enact big increases 
in spending and lower the debt at the same time.
  But the best way, the best thing we can do is to keep lowering taxes 
so we can keep improving our economy. And I commend Chairman Thomas and 
his staff, and I thank the gentleman for giving me this time.
  And I rise in strong support and urge support for this conference 
report.
  Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Ohio (Mrs. Jones), who makes outstanding contributions to the Ways and 
Means Committee.
  Mrs. JONES of Ohio. Mr. Speaker, I thank the ranking member for the 
opportunity to be heard.
  I was sitting in my chair over there, and people kept complimenting 
me

[[Page 7791]]

today about this scarf that is about Save the Children. And I started 
thinking, you know, when I was a little girl we used to play this game 
called ``What Time Is It, Mr. Wolf'' And Mr. Wolf would say, ``1:00.''
  And we would go on and you say, ``Well, what time is it, Mr. Wolf?'' 
And he would say, ``2:00.''
  And then next was, ``Well, what time is it, Mr. Wolf?'' And then he 
would say, ``It's time to eat you up.''
  And that is what I am thinking about with this legislation. What time 
is it?
  It ought to be time for our children to know that we would expend 
money to improve opportunities for education.
  It ought to be time for us to take money and tell seniors you don't 
have to sign up on May 15; you sign up when you get ready, but we are 
going to ensure you that you have a prescription drug benefit.
  It ought to be time to tell children across the country that we are 
going to extend deductions for classroom expenses for teachers.
  It ought to be time that we would extend deduction of tuition and 
related expenses for students.
  It ought to be time that we tell companies that we are going to 
provide them an R&D, or research and development, tax credit.
  It ought to be time for us to tell working families that we are going 
to cover the AMT and remove it from the situation.
  But, instead, when we ask, ``What time is it, Mr. Wolf?'' his 
response is that we are going to make sure that the top 1 percent get a 
tax deduction.
  And one of my colleagues said, ``You ought to have faith in the human 
spirit.'' When I say, ``What time is it, Mr. Wolf?'' I am afraid that 
there is no human spirit left out here, because if there was human 
spirit in the House of Representatives, we would not even be debating 
this issue today.
  What time is it, Mr. Wolf?
  Well, today we are going to deal with some tax reductions, and when 
we ask, Well, why not the AMT for a longer period of time? Oh, we are 
going to do that in the next tax bill. And the appearance they want to 
give to the world is that each month we are going to do a tax bill 
reduction.
  Instead of ``What time is it, Mr. Wolf?'' I am going to take care of 
the children.
  Mr. THOMAS. Mr. Speaker, I yield to the gentleman from Michigan (Mr. 
Camp) for a revision and extension remark.
  Mr. CAMP of Michigan. Mr. Speaker, I rise in favor of the Tax 
Increase Prevention and Reconciliation Act.
  By approving this Conference Report, the House of Representatives is 
sending another strong signal to American taxpayers that Republicans 
want to lock in tax relief and continue the economic recovery. The U.S. 
economy has grown for 18 consecutive quarters and the unemployment rate 
is at 4.7 percent--a rate lower than the average of the 1960s, 1970s, 
1980s, and 1990s. Workers are taking home more money with paychecks 
growing at 4.1 percent in the last 12 months, the fastest pace since 
1998.
  Despite high gas prices, disposable income has increased, business 
investment continues to advance, retail sales are up and consumer 
confidence is rising. Interestingly too, the U.S. unemployment rate is 
lower than that of Canada, France, Germany, Italy, and the United 
Kingdom. Congress must continue to pursue tax policies that are 
responsible for this outstanding economic activity. In my view, the tax 
cuts the Republicans have passed since 2001 are largely responsible for 
this economic expansion.
  This bill could not have come at a better time. Extending the 15 
percent rate on capital gains and dividends to 2010 is important to do 
today. Investors want assurances that their money will not be subject 
to large tax increases only a few years from now. By extending cap 
gains and dividend relief Congress is sending a strong signal to the 
markets that economic growth will continue into the next decade. For 
taxpayers, market growth means businesses will continue to spend and 
create jobs.
  The Conference Report also shields millions of taxpayers from the 
onerous AMT, provides small businesses with enhanced expensing limits, 
and contains international tax provisions that aim to increase the 
competitiveness of U.S. firms. The Conference Report accomplishes all 
this while staying within our current budget limits.
  The House should pass this measure now and protect millions of 
Americans from unfair tax increases.
  Mr. THOMAS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Virginia (Mr. Cantor).
  Mr. CANTOR. Mr. Speaker, first of all, I would like to thank the 
chairman for his leadership in bringing this bill to the floor. It is a 
monumental task, and I want to congratulate him on its completion.
  I rise in support of the Tax Relief Extension and Reconciliation Act 
of 2005. And there is no question that today is a great day for 
American families, and despite how much Republican policies translate 
into a stronger economy, what we hear today from our friends on the 
other side of the aisle is continued talk of the tired language of tax 
and spend and their insistence on engaging in class warfare.
  But let's take a look at the facts: 5.4 million jobs have been 
created since the enactment of these rate cuts; unemployment is at $4.7 
percent. These cuts have spurred spectacular economic growth. And as 
far as the assertion that we are aggravating the debt limit, the facts 
are, revenues are up 14 percent this year and receipts this year have 
far outstripped the growth in outlays.
  And what about those, and who are they, that benefit from these rate 
cuts? Sixty percent of American families who benefit from these cuts 
make under $100,000 a year. So clearly, the assertion that there is 
some type of unfairness or a class-based argument is simply absurd. 
Wage payers and wage earners alike have benefited from these rate cuts.
  And I would like to respond to one of the speakers on the other side 
who says, how dare Americans want to stuff their pockets with tax cuts.
  I would ask, Mr. Speaker, whose money is it anyway? It is the 
taxpayers' money. It is their money that goes into their pockets.
  We must act now, Mr. Speaker. We must not leave American families in 
limbo wondering whether their taxes will go up. Delaying the extension 
of these cuts only serves to punish taxpayers who count on us to 
provide certainty in fiscal policy and to respect the temptation to 
engage in class warfare.
  Mr. RANGEL. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from 
Illinois (Mr. Emanuel), an outstanding, valued member of our Ways and 
Means Committee.
  Mr. EMANUEL. Mr. Speaker, it's deja vu all over again. Another 
windfall for the wealthy while everybody else gets to work for a 
living. By my count, this Congress has now financed three wars with 
four tax cuts. How else do you get $300 billion in annual deficits, $3 
trillion in new debt accumulated in just 4 years and a budget that 
raises the debt ceiling to $10 trillion?
  Middle-class families care about gas prices. They care about the war 
in Iraq that has now cost $450 billion. Health care costs are up 58 
percent. College tuition, 38 percent. The median income in this country 
has dropped 2.3 percent.
  So what's the number one priority for the Republican Congress? None 
of the above. The top 1 percent, whose average income is $5.3 million, 
will save an average of $82,000 under this bill. Those who make $1 
million or more will get $42,000 in tax cuts. But the middle-class 
families, who work hard and play by the rules in this country, will get 
$20. That is the epitome of the wrong-headed priorities and fiscal 
insanity.
  But there is more. This Congress has come up with yet another tax 
shelter for the wealthy when it comes to savings. The Wall Street 
Journal last week, here is their headline, ``Wealthier Taxpayers to 
Gain.'' If you make a six-figure income, your retirement prospects may 
be getting a boost, while for 55 percent of the country, all they have 
is Social Security. But for the wealthiest people in this country, we 
are giving them a boost to help save, while other people have no 
retirement savings.
  It is coming up to Mothers Day. Sometimes I wonder what your mother 
thinks you are doing here on the floor. People working, people dying in 
Iraq

[[Page 7792]]

fighting for this country. And what do we do? We have three wars, one 
in Afghanistan, one in Iraq, good men and women of our country 
fighting. And we are going to give another tax cut to the wealthiest 1 
percent.
  Mr. Speaker, the defining characteristic of this Congress is its 
shameless devotion to the special interests. Instead of working to 
extend the middle-class AMT relief for another year, for more than just 
1 year, they also snuck in a provision to exempt certain overseas 
income for active financing to businesses to the tune of $5 billion.
  What did we not do? Extension of key middle-class tax incentives for 
higher education, for hiring welfare recipients and for offsetting 
aggressive State and local sales taxes, not to mention the research and 
development, R&D, tax credit that is so critical for our innovation, 
our technology and manufacturing.
  Mr. Speaker, to govern is to choose. And leadership is about 
priorities. This Congress has made the wrong choice. It is time for a 
new direction, a new set of priorities.

                              {time}  1730

  Mr. THOMAS. Mr. Speaker, I yield 2 minutes to the gentleman from New 
York (Mr. Reynolds), a member of the Ways and Means Committee.
  Mr. REYNOLDS. Mr. Speaker, I had prepared remarks talking about the 
fact that so many people said we couldn't, absolutely couldn't do a 
middle class tax break for 2006 on AMT. We absolutely couldn't put that 
withholding the tax rates for 2 more years on capital gains and on 
dividends, and some might have even forgotten that expensing for small 
business section 179 allows an extension of the opportunity to have an 
additional 2 years of expensing of $100,000 on small business.
  So when I listened to my colleague from the other side of the aisle 
put forth the politics of the party of ``no,'' what he failed to say 
and what we saw on the weekend talk shows, the Democratic Party stands 
for more taxes and bigger government. He was quick to outline the 
things he would like to see Federal Government spend, but he didn't 
tell you it is going to come from a tax increase.
  There is no comparison. If you cannot support this legislation today 
to continue middle class tax cuts for the AMT and to help businesses 
continue the economy that has the strength that we have seen and 
strength for quarter after quarter after quarter, it was a clear 
message from the financial markets and Wall Street and businesses 
across Main Street U.S.A. today, give us continuity of knowing that we 
have the opportunity of having both dividends and capital gains as part 
of our planning. More importantly, fit in expenses so we can plan the 
small businesses that we can write 100 grand off.
  Maybe the Democratic Party has been out of touch with mainstream 
businesses across our country because that is a clear message they 
asked us to get done. Chairman Thomas and the conferees have completed 
that work. I urge passage of this legislation today because it is going 
to give a break to middle class America.
  Mr. Speaker, as the lead sponsor of the House's middle-class AMT 
relief bill--which has been incorporated into the legislation before us 
today--I rise in strong support of this conference report.
  For months now, we've heard our friends on the other side of the 
aisle tell us that we must choose between extending the lower rates on 
investments and the need to extend essential middle-class AMT relief. 
For months, they've said we can't do both. And for months, the party or 
no has offered no solutions and no fresh ideas--just slash and burn 
attacks on the Republican majority.
  But today, Mr. Speaker, our majority is moving and with our positive 
agenda on behalf of America's hardworking taxpayers.
  With regard to the AMT, many in this chamber will recall that the 
House passed my Stealth Tax Relief Act late last year by an 
overwhelming, bipartisan vote of 414 to 4. That legislation would 
prevent this stealth tax from sneaking up on millions of unsuspecting 
middle-class taxpayers by extending the temporary AMT relief for one 
additional year.
  I would remind my colleagues that the stealth tax was never intended 
to hit the middle class. It was originally enacted in 1969 to prevent a 
small percentage of taxpayers with very high incomes from paying little 
or no Federal income tax. However, because the AMT was never adjusted 
for inflation, it is now threatening more and more middle class 
taxpayers each year as they climb the income ladder.
  While Congress must certainly continue to work toward a permanent 
solution on this critical issue, our immediate task is clear. America's 
middle class deserves to have its temporary AMT relief extended, and I 
am very pleased that my legislation serves as a centerpiece of today's 
conference report.
  I am also pleased that the conference agreement includes an extension 
of the lower rates for capital gains and dividends. This is an 
important priority not just for the ever-growing investor class--which 
includes millions of seniors and other middle-class Americans--but for 
our economy as a whole.
  Thanks in large part to these lower rates on investments, tax 
revenues have been streaming into the Federal Treasury at a record 
pace. And these lower rates--which are particularly important to the 
economy of my home state of New York--have helped keep our Nation's 
economy strong and our domestic job base growing.
  Mr. Speaker, I commend Chairman Thomas and the other conferees for 
their efforts to ensure that these critical priorities are addressed, 
and I urge my colleagues to support this much-needed tax relief with a 
strong, bipartisan vote.
  Mr. RANGEL. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, for those who say that we will not have an opportunity 
to vote for a fair alternative minimum tax, I would like to share with 
you that on the motion to recommit that we give instructions that we 
will have an opportunity to do that. Why are the Republicans so excited 
about enacting the cuts and interest rates and capital gains taxes for 
something that does not expire when 17 million, 18 million people need 
help? I don't know, but they want to give this $50 billion tax cut to 
people who are not screaming for it.
  Where are they going to get the money? They are going to borrow the 
money in order to give the tax cuts, so that on our motion to recommit 
we set aside these tax cuts for the rich and concentrate on the middle 
class. This is really where your vote should be counted. Do you want to 
deal where 50 percent of this tax cut is going to the top 1 percent of 
the country, or are you really concerned with the alternative minimum 
tax that we Democrats have been advocating for the last few years that 
these people were not supposed to be caught up in this, and so we don't 
want them caught up in this. We don't pay for it, we borrow money to do 
it. It is paid for.
  It just seems to me that as we talk about the economy booming, that 
as we go home, I hope we talk with the people that worked in the 
factory. The increase that we have had in job creation, 50 percent of 
it has been an expansion in government jobs. I am certain that this is 
not what the other side is so proud of. But as you walk the street and 
ask the people that work every day that are concerned about their 
pensions, concerned about their health care, the Delta pilots on 
strike, our automobile industry in jeopardy, why don't you ask these 
people about this great economic boom that you are talking about, and 
now you got to promise them more.
  I am glad that we have come to this time in this session that we can 
distinguish between Republicans and Democrats and we can see the 
difference between us. I think what you are saying if you give these 
enormous tax cuts to the richest people, sooner or later it will leak 
down to the people who are working on the jobs.
  I can understand how some people do not believe that a Medicare tax 
or that a Social Security tax is a tax. You may call it a fish, you may 
call it a fishing pole. But when people work every day and they know 
what their salary really is and they see what they take home, they 
think what is taken out is a tax.
  Maybe in November we will see who is right and who is wrong. 
Meanwhile, this is an opportunity for America to distinguish do we 
borrow money for tax cuts and do we cut those people off that are 
relying on Medicaid and Medicare and reduce their services that we are 
supposed to give them. I think this is a classic case as we see more 
and

[[Page 7793]]

more poor people becoming poor statistically and more of the rich 
people getting rich and more of the middle class people losing that 
status, and the people know who they are.
  If the old folks really think that they have gotten a fair shake by 
the other side, well, then, they can be heard. They have an opportunity 
to be heard. But right now what we are talking about is fairness, we 
are talking about equity, we are talking about services. Clearly, we 
are talking about $70 billion or at least $50 billion of that going to 
the richest people that we have in this country.
  The AMT should have been handled separately, and we hope that the 
motion to recommit will carry, and therefore we would see what honest 
Americans really believe as to where the relief is going to be.
  The biggest fault that we have probably on our side is that we don't 
rub shoulders with the billionaires and millionaires that you are doing 
this for. But we do work for the American people. We do know what they 
want, and I have not received one letter from people asking me to give 
more relief in that upper income tax bracket. I, for one, refuse to 
wait for this to leak down and be able to help the middle class people 
that made this great republic the great country that it is.
  People who work hard every day, not just cutting coupons to make this 
country great, people who volunteer to fight this great war, which we 
are paying $500 billion a month, these are the people we should be 
supporting and not the richest of the rich that make no sacrifice at 
all.
  Mr. Speaker, I yield back the balance of my time.
  Mr. THOMAS. Mr. Speaker, I yield 1 minute to the gentleman from Texas 
(Mr. Hensarling).
  Mr. HENSARLING. Mr. Speaker, the tax relief that the Republicans have 
passed has now helped to create over 5 million new jobs. But if 
Democrats succeed with their huge automatic tax increase, you start to 
lose those jobs. Let me tell you about a few of them.
  Hugh Dublin owns East Texas Right of Way in Tennessee Colony, Texas. 
In the past 3 years his company has grown from two full-time employees 
and four part-timers to adding an additional four employees. Why? 
Because of tax relief.
  The Democrats now want to raise taxes on Hugh Dublin and his small 
business. They want to replace his employees' paychecks with welfare 
checks. This is their idea of compassion.
  Eddie Alexander owns Triple S Electric in Henderson County, Texas. 
For the past 3 years, he worked alone with one part-time helper. Since 
the passage of the President's economic growth plan he has had to hire 
two more workers just to keep up. But the Democrats now want to raise 
taxes on Eddie Alexander in his small business, replacing his 
employees' paychecks with welfare checks. This is their idea of 
compassion. The Republican idea is more jobs, hope and opportunity.
  Mr. THOMAS. Mr. Speaker, I yield myself the remainder of my time.
  The gentleman from Illinois wanted to know why we aren't going to be 
voting on the research and development tax credit, on State sales tax 
provision, the work opportunity tax credit or the assistance to 
teachers for out-of-pocket expenses, money for paying for items in the 
classroom. My answer to the gentleman from Illinois is that he should 
look forward shortly for an opportunity to vote on that measure. My 
hope is, based on the statement, at least the feeling I got out of the 
statement that he made, that he would be anxious to vote ``yes'' on 
that measure. We will provide him an opportunity to do that.
  Gee, I don't know. We had AMT outside of reconciliation, and we got 
all kinds of complaints about how it should be inside reconciliation. 
We put it inside reconciliation, and we get all kinds of complaints 
about the fact that it is inside reconciliation.
  Our colleague from Ohio said, what time is it, Mr. Wolf? I will tell 
her what time it is. It is time to act. This is the measure that 
provides alternative minimum tax to American taxpayers. It is time to 
act.
  If you vote ``yes,'' you are in favor of that relief. If you vote 
``no,'' you are not. What time is it, Mr. Wolf? It is time to quit 
wolfing. It is time to vote. A ``yes'' vote provides relief.
  Mr. ETHERIDGE. Mr. Speaker, I rise today to voice my opposition to 
H.R. 4297. I have long supported responsible tax reform, but this bill 
is the opposite of responsible policy. The Republicans in Congress have 
once again failed to provide the American people with a fair, common-
sense tax reform bill. Instead, they are trying to promote a bill that 
hides its deficiencies behind gimmicks and trickery. But the American 
people will not be duped.
  North Carolina taxpayers struggle to provide for their families, 
educate their children, and still save enough for retirement, without 
having the extra burden of high taxes, an intrusive IRS, or a 
complicated tax code.
  The median household income of the people in North Carolina's Second 
Congressional District is about $36,000. If this bill passes, their 
savings would be a whole $16--less than half a tank of gas in the 
family minivan.
  Under this Republican Congress, the national debt per person is 
currently $28,000. And this bill would give my constituents $16. 
Instead of adopting a bill that would increase the burden on our 
children and grandchildren, we need a common-sense solution that would 
return fairness to our tax system.
  Under Republican rule in Washington, we have witnessed the most 
dramatic fiscal reversal in our nation's history. Our budget surpluses 
have been wasted, and our nation suffers under ever-growing budget 
deficits and increasing federal debt. This debt crisis is the direct 
result of the irresponsible tax schemes the Republican Congress have 
enacted.
  The people of North Carolina's Second District elected me to help 
chart a common-sense, prudent course for the country. I pledged to 
represent my constituents by paying down the national debt; saving 
Social Security and Medicare funds for older Americans, and investing 
our country's resources into education, health care and other 
initiatives that enable people to improve their lives. H.R. 4297 is 
inconsistent with these goals; therefore, I oppose the bill.
  Mr. FARR. Mr. Speaker, with today's vote on the ``Tax Relief Act of 
2005'' (H.R. 4297) conference report, the Congressional Republican 
Leadership is planning, once again, to give huge tax cuts to the 
wealthiest one percent of Americans, while leaving 99 percent of 
Americans with little to no tax relief, a federal government hamstrung 
by deficits and a future generation saddled with monstrous debt.
  I would like to insert into the record a chart from the Tax Policy 
Center that outlines how much Americans would actually save under this 
bill. These numbers clearly spell out the priorities of this Republican 
Leadership:

                 HOW MUCH WOULD YOU SAVE UNDER THE PLAN?
------------------------------------------------------------------------
                                                             Average tax
                  Income, in 2005 dollars                      savings
------------------------------------------------------------------------
$10,000-20,000.............................................           $2
$20,000-30,000.............................................            9
$30,000-40,000.............................................           16
$40,000-50,000.............................................           46
$50,000-75,000.............................................          110
$75,000-100,000............................................          403
$100,000-200,000...........................................        1,388
$200,000-500,000...........................................        4,499
$500,000-1 million.........................................        5,562
More than $1 million.......................................      41,977
------------------------------------------------------------------------
SOURCE: Tax Policy Center.

  As legislators, we have to remember that tax cuts are part of the 
larger federal budget picture. We have access to a range of tax and 
budget policy tools, and we have to use these tools, along with common 
sense, to support and grow all sectors of our national economy.
  Today, I tried to reestablish American values and priorities for our 
Nation's veterans while addressing some of the most egregious problems 
created by the Republican budget and tax policy. During the House 
Appropriations Committee debate on the FY07 funding bill for Military 
Quality of Life programs and Veterans, I offered an amendment that 
would have rolled back part of President Bush's tax cuts for 
millionaires. Specifically my amendment would have reduced the tax cut 
for taxpayers making over $1 million annually by a mere 4.5%, reducing 
their tax cut from $114,172 to $109,025. The savings would have 
provided more funding for mental health care and prosthetics devices 
for veterans of the Iraq war, increased the number of VA nursing home 
beds and added health care coverage for Priority 8 veterans. 
Unfortunately, the amendment failed on a party line vote.
  The one Middle Class tax issue the Republicans should have addressed, 
but didn't, is the Alternative Minimum Tax (AMT). Their ``fix'' is only 
for one year. Without a serious, long-term AMT fix, the Administration 
and Congressional Republicans are leaving middle and upper middle 
income Americans in financial limbo. Democrats want real AMT reform.

[[Page 7794]]

Republicans have passed sham AMT reform. We all need to work together 
to promote a progressive tax system that Americans deserve.
  Mr. MARKEY. Mr. Speaker, I rise in opposition to this bill.
  With this bill we are now engaged in the second phase of ``The 
Republican ReCONciliation Game.'' That's exactly what it is--a giant 
Con Game.
  In February, the Con Game began with the Republicans' cutting nearly 
$40 billion in benefits for the most vulnerable in our society:
  They cut $12 billion from student loan programs to help kids go to 
college.
  They cut $6.4 billion from Medicare and made elderly beneficiaries 
pay higher premiums for their health care.
  And they cut $6.9 billion from Medicaid which helps the poorest and 
sickest children and families in our country get healthcare.
  And then they tried to turn to the second part of the Con Game, where 
the Republicans turn over that money that they got from cutting 
programs for the poor to the Ways and Means Committee to give all of 
that money away to their millionaire friends.
  But in February when they tried for the first time to give this money 
to millionaires there was a public outcry because people understood 
that the Republicans were taking from the poor and giving to the rich. 
So the Republicans had to pull the bill and wait for the public to 
forget.
  So now, three months later, the Republicans are hoping that the 
American public has forgotten about all of those cuts they made. They 
are hoping the American public won't remember that the Republicans cut 
Medicare and Medicaid and student loans in order to give more to their 
fat cat friends.
  This bill favors the wealthy so dramatically that the average 
American family making $40,000-$50,000 a year will get $46, which is 
about enough for one tank of gas.
  But if you make over a $1 million a year, you will get about $42,000. 
That's enough to buy a luxury Hummer 3 and still have $10,000 left over 
for the gas!
  It is immoral to take medicine away from the poor, elderly and 
disabled so that millionaires can buy Hummers.
  Vote to reject this con game and vote ``no'' on this shortsighted, 
fiscally irresponsible and immoral legislation.
  Mr. LARSON of Connecticut. Mr. Speaker, I rise today in strong 
opposition to the tax reconciliation conference report, H.R. 4297, that 
will cost $70 billion over ten years and provides little to no tax 
relief for working American families. With continued job outsourcing, 
cuts to pensions, health and retirement benefits, and a deficit crisis, 
the American people deserve targeted tax relief, they deserve better 
than this bill.
  Today is yet another missed opportunity by the Republican-controlled 
Congress to provide real tax relief to working families. This tax 
package is disingenuous and reckless. For example, for the wealthiest 
among us, this bill would extend the capital gains and dividends tax 
cut set to expire in 2008 for an additional 2 years through 2010. While 
on the other hand, the bill would only provide a one-year extension in 
relief for the Alternative Minimum Tax (AMT) that affects an estimated 
18.9 million middle-class taxpayers and already expired in 2005.
  Originally intended to ensure the wealthy taxpayers paid their fair 
share, the AMT has become a tax on the middle-class. Without 
adjustments for inflation like the federal income tax, the AMT targets 
a growing number of people each year. Those most affected by the AMT 
are taxpayers in states like my home state of Connecticut with high 
property taxes, high local and state income taxes, and high sales 
taxes. These taxpayers are middle-class families: the engineer at Pratt 
& Whitney, the assistant school principal at your child's elementary 
school, the real estate agent, the architect, the restaurant general 
manager, or the policy underwriter working at any number of the 
insurance companies located in Hartford.
  What are the priorities of this Republican-controlled House? Consider 
this, under the Bush dividends and capital gains tax cut, taxpayers 
making more than $10 million a year will receive approximately $500,000 
annually in tax savings. ExxonMobil's retiring CEO, Lee Raymond will 
receive approximately $2.5 million in tax relief for his stock 
investments, while the average American family making less than $50,000 
will receive an average of $10 in relief a year, which barely covers 
the cost of 3 gallons of gas.
  This conference agreement also drops three provisions in the Senate 
bill that would have rolled back nearly $5.4 billion over ten years in 
unneeded tax breaks and loopholes for the oil industry. Last week, I 
offered a motion to instruct house conferees to adopt these provisions 
because they reflected the common sense that Americans should not be 
getting hit by high prices twice--once at the pump and once again by 
seeing their tax dollars given away to an industry enjoying 
unprecedented levels of profit. House Republicans, and this conference 
agreement, rejected this simple idea in favor on continuing this 
Congress' misguided record of subsidizing the bottom line of oil 
companies and executives rather than providing real energy relief for 
the American people.
  I am voting against this tax package because it is another example of 
the party of the few ignoring the majority of Americans and taking care 
of only the wealthiest taxpayers. I am not opposed to tax cuts. In 
fact, I've voted 6 times to expand tax relief and protect middle-class 
families from the growing reach of the AMT in the 109th Congress. The 
American people deserve better. Instead of helping more Americans help 
themselves and ensure that as a country, we move forward together, this 
bill will continue the Republican's record in the House to benefit the 
wealthiest among us and leave the majority of Americans behind.
  Mr. DINGELL. Mr. Speaker, I rise in opposition to this ill-advised, 
ill-conceived, poorly calculated, and deeply regressive tax bill for 
the same reasons that I rose to oppose the tax cuts of 2001 and the 
yearly effort by this Congress to make them permanent every year since 
their approval.
  I oppose them for a host of reasons. I oppose them because they are 
leaving our children and grandchildren with trillions, I say that 
again, trillions of dollars of liabilities owned by the Chinese, the 
Saudis, the Indians, and the Europeans. We are literally mortgaging the 
prosperity of today's children to the fickle nature of our competitors 
and rivals.
  I oppose them because it has forced our military to go into battle 
without proper body armor on our troops--soldiers who largely come from 
families that do not benefit from these tax cuts--and without blast 
shields on our Humvees.
  I oppose them because it shifts the tax burden from those who benefit 
the most from the success of America, to those who are desperately 
trying to realize their American dream. In fact, Mr. Speaker, the 
poorest workers under this legislation will end up with a total tax 
savings of two dollars while those who earn $1,000,000 or more will 
pocket a generous $42,000.
  But this distribution isn't just unfair to the working poor; it is 
deeply unjust to the middle class. Families who earn from $75,000 to 
$100,000 will only receive a dollar a day of tax relief--not even close 
enough to cancel out the higher interest rates on credit cards and 
student loans that are resulting because of our persistent budget 
deficits.
  Finally, I am opposed to this legislation because it excuses this 
Congress from the tough decisions that a future Congress and a future 
President are going to have to make. We all know that the Alternative 
Minimum Tax is going to hit the middle class hard and to fix it will 
cost hundreds of billions of dollars. But rather than addressing it, we 
are asking the Congress of 2012 to take care of our mess. We know that 
the retirement of the Baby Boomers is going to force massive 
concessions in our budget, but again, our message is to leave it to 
tomorrow. Let someone else clean up our mess.
  Well, I hate to say, with this Congress and this President I am not 
surprised we are asking someone else to take responsibility for yet 
another mess.
  Mr. HOLT. Mr. Speaker, I rise in opposition to the tax reconciliation 
bill. Today's tax budget reconciliation bill will give the average 
American family an average of $10 per year from the extension of this 
tax benefit, or about enough to cover 3 gallons of gas. They will 
receive no benefit from the extension until 2009. Despite the popular 
GOP rhetoric about the large percentage of Americans that benefit from 
the rate reduction, the average American family's share of the total 
tax cut is approximately 2 percent.
  Taxpayers with annual incomes greater than $10 million will receive 
approximately $500,000 in tax reductions per year.
  While I do believe we need to create a fix to the Alternative Minimum 
Tax problem, today's bill just pushes off the problem by another year. 
I have voted numerous times in favor of AMT relief far larger than the 
provisions included in the conference report. The conference report has 
limited relief that only applies in 2006, but protects dividend and 
capital gains benefits through the close of 2010.
  We are paying for this $70 billion tax cut by deep cuts of $39 
billion over 5 years in programs like Medicaid and child support 
enforcement. The other $31 billion will be added to the debt.
  Medicare funding was cut by $6.4 billion; the social security index 
by $732 million. In

[[Page 7795]]

New Jersey alone three thousand mothers will be dropped from the Women, 
Infants, and Children (WIC) program, which helps mothers care for their 
babies before and after birth. Four hundred children in New Jersey 
currently attending Head Start will be cut out of this important 
childhood education and development program. More than 3,200 low-income 
and disabled people will be cut from Section 8 housing vouchers, all in 
New Jersey alone.
  They have also made a college education more expensive. Cuts--more 
than $12.76 billion--to federal student financial aid were made by 
increasing rates that students pay, charging students more fees on 
their loans, and reductions in subsidies to lenders. This is the 
largest cut in history in student loans. The result will be nearly $8 
billion in new charges that will raise the cost of college loans--
through new fees and higher interest--for millions of American students 
and families who borrow to pay for college. For the typical student 
borrower, already saddled with $17,500 in debt, these new fees and 
higher interest charges could cost up to $5,800. Once again, New Jersey 
families were hit--over 125,000 college students in New Jersey will be 
affected.
  Today's tax bill cuts $70 billion in taxes and the reconciliation 
bill cut $39 billion in spending, so how will the other $31 billion be 
made up? By adding to our national debt, putting the burden on our 
children and grandchildren. According to the Treasury Department, major 
foreign holdings of U.S. Treasury securities total $2.18 trillion. 
Currently, China is the world's second-largest buyer, exceeded only by 
Japan. Furthermore, China's purchases of U.S. government securities 
have exploded by more than 211 percent since the beginning of 2001 and 
now total $311 billion.
  This situation is dangerous because it is a major way that we are 
funding the federal government--by selling our debt to the Chinese. In 
1980, 17 percent of the federal debt held by the public was in foreign 
hands. By 2006, 45 percent of the debt held by the public was owned 
overseas. Unfortunately, this trend seems to be increasing rapidly. 
During the past year, approximately 90 percent of the debt we have 
accumulated has been purchased by foreign banks, individuals and 
governments.
  The high level of foreign holdings of U.S. securities could have a 
debilitating impact on our economy and foreign policy. If China 
threatened to sell large volumes of U.S. Treasury securities, it could 
easily fuel higher inflation and put pressure on the Federal Reserve to 
increase interest rates, putting our economy at risk for a large-scale 
recession.
  Mr. Speaker, I ask my colleagues to oppose this tax reconciliation 
bill, because we can do better.
  Mr. LANGEVIN. Mr. Speaker, today I rise in opposition to H.R. 4297, 
the Tax Reconciliation Conference Report. This gimmick-laden piece of 
legislation will require taxpayers to borrow another $70 billion so 
that the wealthiest Americans can keep their taxes low in 2009 and 
2010. What kind of priorities favor the wealthy in the future over 
working families today? We can ill afford the continued ``tax cut and 
spend'' mentality that has marked the House during the last few years. 
Without a change in fiscal policy, future generations will be buried 
under a mountain of debt created by the Republican Congress.
  H.R. 4297 includes a 2-year extension of the capital gains and 
dividend tax cuts, which are not scheduled to expire until 2008. Nearly 
half of these tax cuts will go directly into the pockets of the 1 in 
500 taxpayers who earn more than $1 million per year. The contrast is 
stark: those who earn between $40,000 and $50,000 will see an average 
tax cut of $46, while those earning more than $1 million will save an 
average of $42,000 in taxes. More egregiously, those earning over $10 
million will receive an average $500,000 tax cut per year.
  Regardless of what the Republicans claim, this legislation 
disproportionately favors the wealthiest Americans. For taxpayers 
earning less than $100,000 per year, only 1 out of 7 benefit from the 
dividend tax reduction, and only 1 out of 20 benefit from the capital 
gains tax cut.
  Under this legislation, an additional 20 million middle class 
families will have their taxes raised in 2007 thanks to the Alternative 
Minimum Tax (AMT). Congress had an opportunity to exempt the middle 
class from this complicated tax that was created to prevent a very 
small group of high income families from avoiding income tax 
altogether. Unfortunately, H.R. 4297 only offers a band aid to this 
massive problem, and more and more middle class families will have 
their taxes raised in the future because this Congress chose to cut 
taxes for multimillionaires instead.
  In addition, I am disappointed that unlike an early version of H.R. 
4297, this bill does not include the extension of the Research and 
Development Tax Credit, which expired in December. I am a cosponsor of 
a bill to make the Research and Development Tax Credit permanent, as it 
keeps American companies competitive and provides a strong incentive 
for businesses to invest in the future and create jobs.
  This year, we have a projected deficit of more than $330 billion. We 
will spend billions more in Iraq and Afghanistan, as well as rebuilding 
the Gulf Coast in the wake of Hurricanes Katrina, Rita, and Wilma.
  We simply cannot afford all of these emergency expenses while cutting 
taxes for the richest Americans.
  I urge my colleagues to join me in rejecting the conference report 
and supporting responsible tax policies that benefit all Americans, not 
just the wealthiest.
  Mr. Speaker, our Nation's fiscal house is not in order. The tax 
portion of the budget reconciliation bill, which we are considering 
today, does absolutely nothing to fix that.
  Congressional leaders and the President should go back to the drawing 
board and create a budget plan that more adequately balances the 
interests of the American people. When President George H.W. Bush faced 
a similar budget crisis, he had the courage to create a bipartisan 
budget summit and to implement needed fiscal constraints. America is 
better for it, and I hope that our leaders today will follow that 
example.
  I have no quarrel with providing a substantial tax cut for middle 
class Americans. That is why I have consistently supported legislation 
to eliminate the marriage tax penalty, to abolish the federal estate 
tax, and to allow persons to contribute more to their retirement 
savings. But, like with federal spending allocations, tax cuts must be 
paid for in the budget. In this case, they are not.
  The budget reconciliation bill contains more tax cuts than spending 
cuts and plunges our country deeper into debt. This is fiscally 
irresponsible and gives the short shrift to our children and 
grandchildren who will be forced to pick up the tab for such out of 
control budgeting.
  At a time when America is embarking on a prolonged and costly war on 
terrorism and is waging a war against insurgents in Iraq, I am 
convinced that this bill would make it far more difficult to meet the 
defense and homeland security needs of our Nation, while keeping Social 
Security and Medicare on sound fiscal footing.
  I hope my colleagues will abandon this reckless budgeting style and 
embrace a more common sense approach to drafting a budget. Reinstating 
the effective pay-as-you-go (PAYGO) rules, long championed by 
conservative House Democrats, that helped create the budget surplus of 
the 1990s would be a good place to start.
  Mr. UDALL of Colorado. Mr. Speaker, I cannot support this conference 
report.
  As I noted before, this conference report--like the House-passed 
bill--is only part of a brew based on the Republican leadership's 
budget recipe.
  Last year, they put the first ingredients into the mixing bowl in the 
form of a bill to cut more than $50 billion over five years from 
Medicaid, student loans, and many other programs of great importance to 
millions of Americans. Then, with the original version of this bill, 
they added a compound of a few good things tainted by such unwholesome 
provisions as the premature extension of preferential rates for 
dividends and capital gains.
  The result was a full-bodied one-two punch that might have been 
intoxicating to some but was sure to leave us all with a bad budgetary 
headache and stick future generations with paying the tab.
  So, when it originally came to the House floor, I voted against it 
but held out some hope that a conference with the Senate would result 
in a bill that deserved enactment. Unfortunately, that did not occur 
and instead we have before us a conference report that perhaps is a 
little better than the House-passed bill but shares its basic flaws.
  The centerpiece of the conference report, like that of the House-
passed bill, is an extension of the reduced tax rates on capital gains 
and dividends, even though those rates are not scheduled to change 
until 2008.
  This is not only unnecessary, I think it is not good policy--and 
neither is letting lapse better tax provisions such as the research and 
development tax credit, the education tax deduction to help students go 
to college, tax deductions for teacher's classroom expenses, and the 
deduction of state and local sales taxes. All of these have been 
omitted from the conference report.
  It is true that the conference report addresses the need to remove 
the threat of alternative minimum tax (AMT) liability from millions of 
middle-income American families. But it provides only a one-year 
respite.

[[Page 7796]]

  And, worst of all, enacting the conference report will result in 
adding at least another $70 billion onto the deficit, while the long-
term budget costs are masked by a change in the rules for Individual 
Retirement Accounts that may increase revenue in the short term but 
will greatly worsen the long-term budget picture.
  Questionable at any time, that kind of increase in the deficit--
meaning an increase in the national debt--is even worse now, when 
America is at war and when President Bush and the Republican Congress 
have taken us from paying off our debts to a projected deficit of $3.3 
trillion. Over the last 5 years, the Federal Government has had to 
borrow more than $1 trillion--much of it from foreign governments--
which is more than the total it borrowed over the preceding two 
centuries. This is a sorry record, and this conference report will make 
it worse.
  So, Mr. Speaker, count me out. I thought the original recipe was 
wrong. I did not vote for the original House bill and I cannot vote for 
this conference report.
  That doesn't mean I am opposed to tax relief. That's why I voted for 
the motion to recommit, which would have shielded middle-income 
families from the AMT without adding to the deficit. Unfortunately, the 
Republican leadership insists on rejecting that in favor of its own 
recipe. I fear the result will be half-baked and leave a bitter 
aftertaste.
  Mr. VAN HOLLEN. Mr. Speaker, I rise today to support providing much 
needed relief from the alternative minimum tax, but oppose those 
provisions providing special tax breaks for the wealthiest. I am 
disappointed that important legislation to help the American middle 
class is tied to an irresponsible tax giveaway to the wealthiest among 
us. The dividends tax break would help only 1 in 7 families making 
under $100,000 a year. The capital gains tax break affects only 1 in 20 
such families. In a time of massive deficits, we should not be passing 
such unnecessary tax cuts. It is unfortunate that an important tax 
break--the AMT--is tied into this bill. While I support the AMT fix, I 
strongly object to the crass political ploy of attaching it to a tax 
break that disproportionately benefits the very wealthiest among us.
  The original purpose of the AMT was to ensure that taxpayers with 
high incomes would not take advantage of loopholes in the tax code and 
pay little or no income tax. However, because the AMT is not adjusted 
for inflation, it will penalize middle income families. The IRS calls 
this tax the ``Number 1 most serious problem'' facing taxpayers. We 
must extend AMT relief to ensure that middle class families do not face 
the burden of this complicated and expensive tax. That is why I am 
encouraging my colleagues to vote for the Democratic substitute. The 
substitute would eliminate AMT liability for individuals whose income 
is less than $125,000 and for couples whose income is less than 
$250,000. It is simpler, broader relief, and we can pay for it by 
restricting tax shelters.
  But an extension is only a temporary fix. We must amend the AMT to 
accomplish its original purpose rather than unfairly penalize millions 
of taxpayers. If we do not make serious changes, the AMT will affect 
nearly 35 million taxpayers in 2010. An extension is a good first step, 
but we should continue to work on policies to make the tax structure 
sensible and fair.
  Ms. LEE. Mr. Speaker, I rise in opposition to H.R. 4297. This 
legislation would give big benefits to millionaires, billionaires and 
giant corporations while the average American suffers under record high 
energy costs and again gets stuck with the bill.
  Mr. Speaker, we should not increase the burden on our children and 
our grandchildren with this administration's record deficits just to 
make another 70 billion dollar gift that will line the pockets of the 
wealthiest few. Let's not extend tax rates that would encourage oil 
company executives to continue gouging record profits from every hard 
working American.
  Mr. Speaker, we need to rethink our priorities. Instead of another 70 
billion dollars for the super rich, why not provide health care for 
millions of children, provide housing for the neglected victims of 
Katrina or improve the education of the countless students that this 
administration has left so far behind? Is this Republican Congress so 
busy returning profits to the wealthy, that it has forgotten the 
families who have done all the hard work?
  I encourage members to remember the American families that are the 
back bone of our nation and our economy and vote ``no'' on this bill.
  Mr. EDWARDS. Mr. Speaker, I rise today to speak out on our nation's 
dire fiscal situation. How can it be that at a time of war, when we are 
cutting $735 million from the defense health care budget and facing the 
largest deficits in our Nation's history and an $8.3 trillion national 
debt, this Congress decides to prioritize million dollar tax breaks to 
Big Oil Company CEOs instead?
  Because of the tax cut legislation passed out of the House, the 
former CEO of Exxon Mobil, Lee Raymond, will take home an extra $2.5 
million dollars in dividend income each year on top of his $400 million 
retirement package and the $144,000 he made each day when he was Exxon 
Mobil's CEO. Tell me how that is possibly fair to the middle class 
worker who is paying $3 a gallon to fill up his car, or to the student 
who has to find a third job in order to pay off her student loans. The 
truth is it isn't fair, Mr. Speaker, and Americans everywhere know it.
  The average middle class family could not afford to buy one meal for 
their family with the money they will save from this tax cut, but Lee 
Raymond gets $2.5 million?
  I urge my colleagues to take a serious look at our nation's fiscal 
priorities as we continue down this road of fiscal irresponsibility. We 
owe it to our children and grandchildren, to leave them a legacy of 
economic stability, not one of debts and deficits. We should show them 
that we care about their future by not squandering away more money we 
don't have to pay for irresponsible tax cuts benefiting only Big Oil 
Company CEOs like Lee Raymond.
  It's past time to focus on the true priorities of the American 
people.
  Mrs. MALONEY. Mr. Speaker, I rise today in strong opposition to the 
tax reconciliation conference report, H.R. 4297, that will cost $70 
billion over 10 years and provides little to no tax relief for working 
American families. Today is yet another missed opportunity by the 
Republican-controlled Congress to provide real tax relief to working 
families. For example, this bill would extend the capital gains and 
dividends tax cut set to expire in 2008 for an additional 2 years 
through 2010. While on the other hand, the bill would only provide a 1-
year extension in relief for the Alternative Minimum Tax (AMT) that 
affects an estimated 15 million middle-class taxpayers and already 
expired in 2005.
  Originally intended to ensure the wealthy taxpayers paid their fair 
share, the AMT has become a tax on the middle-class. Without 
adjustments for inflation like the federal income tax, the AMT targets 
a growing number of people each year. Those most affected by the AMT 
are taxpayers in States like my home State of New York, with high 
property taxes, high local and state income taxes, and high sales 
taxes. These taxpayers are middle-class families. Instead of taking 
this opportunity to pass real AMT reform, the House Republicans have 
chosen to barely patch this problem without providing any real relief 
for working families.
  Making matters worse, this conference agreement also drops three 
provisions in the Senate bill that would have rolled back nearly $5.4 
billion over 10 years in unneeded tax breaks and loopholes for the oil 
industry. This is truly unbelievable when we see oil companies earning 
record profits and consumer paying record prices.
  I wish this Congress could get their priorities straight and pass 
real AMT reform and provide leadership for true fiscal responsibility.
  Mr. MOORE of Kansas. Mr. Speaker, I rise today to express my 
opposition to the conference report on H.R. 4297, the FY06 tax 
reconciliation bill.
  As I stated in December 2005, when I voted against the House tax 
reconciliation bill, I do not oppose tax cuts, and in a more stable 
fiscal climate I would support reduced tax rates for capital gains and 
dividend income. What I do oppose is borrowing money to pay for tax 
cuts, particularly for tax cuts that do not expire for another 3 years. 
According to the Joint Committee on Taxation, the conference report 
before us today would cost approximately $91 billion over the next 10 
years, and would raise taxes by approximately $22 billion over the same 
period. Considering the state of our current fiscal situation, this 
conference report would do more harm than good at this time.
  In 2001, I was one of only 28 House Democrats to vote for President 
Bush's 2001 tax cuts that reduced marginal income tax rates. Since 
2001, however, our country's fiscal condition has dramatically reversed 
course. In 2001, the Congressional Budget Office [CBO] predicted that 
the 10-year budget surplus would be $5.6 trillion. That projected 10-
year surplus of $5.6 trillion has deteriorated into a projected $3.9 
trillion deficit during the same period. In FY 2005, the Federal 
Government ran a budget deficit of $319 billion, the third largest 
deficit in our Nation's history.
  Further, on February 17, 2004, the national debt of the United States 
exceeded $7 trillion for the first time in our Nation's history. On 
October 21, 2005, the national debt of the United States exceeded $8 
trillion for the first time in our Nation's history. That is an 
increase of $1 trillion in our national debt over

[[Page 7797]]

the last 2 years. It took our country 193 years, from 1787 to 1980, to 
accumulate an additional $1 trillion in debt.
  Unfortunately, our national debt is only getting worse. When I voted 
against the House tax reconciliation bill in December, our national 
debt was $8.1 trillion. Today, our national debt is $8.4 trillion, an 
increase of $300 billion in only 5 months. An $8.4 trillion national 
debt comes down to approximately $28,000 per person in our country. 
That is simply unacceptable.
  Mr. Speaker, the conference report on H.R. 4297 extends several tax 
cut measures, including reduced rates for capital gains and dividend 
income and relief from the alternative minimum tax, that I support and 
would vote for in a balanced, revenue neutral measure. I would also 
support several provisions, including the above-the-line deduction for 
higher education and classroom expenses and the research and 
development credit, that were included in the House tax reconciliation 
bill and are not included in this conference report. I hope that 
extensions of these provisions in the tax code will be included in a 
future tax measure this year.
  Further, while the conference report includes multiyear extensions of 
lowered capital gains and dividend tax rates, it includes only a one-
year extension of relief from the alternative minimum tax [AMT]. I 
strongly support AMT relief, and voted for H.R. 4096, the Stealth Tax 
Relief Act, on December 7, 2005, which extended AMT relief and indexed 
it for inflation. The AMT is the most significant looming tax concern 
for middle-class American families; if AMT relief is allowed to lapse, 
the number of taxpayers subject to the AMT will increase from 3 million 
in 2004 to 21 million this year. The Congressional Budget Office 
estimates that extending AMT relief and indexing it for inflation would 
reduce Federal revenue by $191 billion over the next 5 years. This is 
an immediate problem that Congress and the administration need to work 
together to fix in a responsible, bipartisan, and long-term manner, 
before millions of Americans are hit with large, unexpected tax 
increases.
  Mr. Speaker, I will continue to work with my colleagues in both 
parties to advance commonsense, bipartisan approaches to solving our 
country's fiscal problems. I urge my colleagues on both sides of the 
aisle to act as soon as possible, in a fiscally sound way, to prevent 
serious consequences for current and future generations.
  Mr. THOMAS. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Aderholt). Without objection, the 
previous question is ordered on the conference report.
  There was no objection.


                Motion to Recommit Offered by Mr. Rangel

  Mr. RANGEL. Mr. Speaker, I offer a motion to recommit.
  The SPEAKER pro tempore. Is the gentlemen opposed to the conference 
report?
  Mr. RANGEL. Yes, in its present form.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Rangel moves to recommit the conference report on the 
     bill (H.R. 4297) to the committee of conference with 
     instructions to the managers on the part of the House to 
     report back on or before May 17, 2006, a new conference 
     report which--
       (1) includes the maximum amount of relief for individuals 
     from the alternative minimum tax permitted within the scope 
     of conference,
       (2) does not include any extension of the lower tax rate on 
     dividends and capital gains that would otherwise terminate at 
     the close of 2008, and
       (3) to the maximum extent possible within the scope of 
     conference, will neither increase the Federal budget deficit 
     nor increase the amount of the debt subject to the public 
     debt limit.

  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. RANGEL. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, the Chair 
will reduce to 5 minutes the minimum time for any electronic vote on 
the question of the adoption of the conference report.
  The vote was taken by electronic device, and there were--yeas 190, 
nays 239, not voting 4, as follows:

                             [Roll No. 134]

                               YEAS--190

     Abercrombie
     Ackerman
     Allen
     Andrews
     Baca
     Baird
     Baldwin
     Barrow
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boehlert
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brown (OH)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardin
     Carnahan
     Carson
     Case
     Chandler
     Clay
     Cleaver
     Clyburn
     Conyers
     Cooper
     Costa
     Crowley
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Doyle
     Edwards
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Ford
     Frank (MA)
     Gonzalez
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Harman
     Hastings (FL)
     Herseth
     Higgins
     Hinchey
     Hinojosa
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson, E. B.
     Jones (OH)
     Kaptur
     Kildee
     Kilpatrick (MI)
     Kind
     Kucinich
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Lofgren, Zoe
     Lowey
     Lynch
     Maloney
     Markey
     Marshall
     Matsui
     McCarthy
     McCollum (MN)
     McDermott
     McGovern
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Millender-McDonald
     Miller (NC)
     Miller, George
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sabo
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Schakowsky
     Schiff
     Schwartz (PA)
     Scott (GA)
     Scott (VA)
     Serrano
     Sherman
     Skelton
     Slaughter
     Snyder
     Solis
     Spratt
     Stark
     Strickland
     Stupak
     Tanner
     Tauscher
     Taylor (MS)
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Weldon (PA)
     Wexler
     Woolsey
     Wu
     Wynn

                               NAYS--239

     Aderholt
     Akin
     Alexander
     Bachus
     Baker
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bass
     Bean
     Beauprez
     Biggert
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Boren
     Boustany
     Bradley (NH)
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carter
     Castle
     Chabot
     Chocola
     Coble
     Cole (OK)
     Conaway
     Costello
     Cramer
     Crenshaw
     Cubin
     Cuellar
     Culberson
     Davis (KY)
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     DeLay
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Emerson
     English (PA)
     Everett
     Feeney
     Ferguson
     Fitzpatrick (PA)
     Flake
     Foley
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gillmor
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Gordon
     Granger
     Graves
     Green (WI)
     Gutknecht
     Hall
     Harris
     Hart
     Hastert
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hostettler
     Hulshof
     Hunter
     Hyde
     Inglis (SC)
     Issa
     Istook
     Jenkins
     Jindal
     Johnson (CT)
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Kanjorski
     Keller
     Kelly
     Kennedy (MN)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline
     Knollenberg
     Kolbe
     Kuhl (NY)
     LaHood
     Latham
     LaTourette
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Matheson
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McHugh
     McIntyre
     McKeon
     McMorris
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy
     Murtha
     Musgrave
     Myrick
     Neugebauer
     Ney
     Northup
     Norwood
     Nunes
     Nussle
     Osborne
     Otter
     Oxley
     Paul
     Pearce
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Poe
     Pombo
     Porter
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Reichert
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Royce
     Ryan (WI)
     Ryun (KS)
     Saxton
     Schmidt
     Schwarz (MI)
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Sherwood
     Shimkus

[[Page 7798]]


     Shuster
     Simmons
     Simpson
     Smith (NJ)
     Smith (TX)
     Sodrel
     Souder
     Stearns
     Sullivan
     Sweeney
     Tancredo
     Taylor (NC)
     Terry
     Thomas
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Walden (OR)
     Walsh
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                             NOT VOTING--4

     Cardoza
     Evans
     Kennedy (RI)
     Smith (WA)

                              {time}  1808

  Messrs. McCOTTER, PEARCE, CASTLE, REYNOLDS, KIRK, BARTON of Texas and 
MARCHANT changed their vote from ``yea'' to ``nay.''
  Mr. ABERCROMBIE changed his vote from ``nay'' to ``yea.''
  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore (Mr. Aderholt). The question is on the 
conference report.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. WICKER. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 244, 
noes 185, not voting 4, as follows:

                             [Roll No. 135]

                               AYES--244

     Aderholt
     Akin
     Alexander
     Bachus
     Baker
     Barrett (SC)
     Barrow
     Bartlett (MD)
     Barton (TX)
     Bass
     Bean
     Beauprez
     Biggert
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Boren
     Boustany
     Bradley (NH)
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carter
     Case
     Castle
     Chabot
     Chocola
     Coble
     Cole (OK)
     Conaway
     Cramer
     Crenshaw
     Cubin
     Cuellar
     Culberson
     Davis (KY)
     Davis (TN)
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     DeLay
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Emerson
     English (PA)
     Everett
     Feeney
     Ferguson
     Fitzpatrick (PA)
     Flake
     Foley
     Forbes
     Ford
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gillmor
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Gordon
     Granger
     Graves
     Green (WI)
     Gutknecht
     Hall
     Harris
     Hart
     Hastert
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hostettler
     Hulshof
     Hunter
     Hyde
     Inglis (SC)
     Issa
     Istook
     Jenkins
     Jindal
     Johnson (CT)
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Keller
     Kelly
     Kennedy (MN)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline
     Knollenberg
     Kolbe
     Kuhl (NY)
     LaHood
     Latham
     LaTourette
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Marshall
     Matheson
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McHugh
     McIntyre
     McKeon
     McMorris
     Melancon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy
     Musgrave
     Myrick
     Neugebauer
     Ney
     Northup
     Norwood
     Nunes
     Nussle
     Osborne
     Otter
     Oxley
     Paul
     Pearce
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Poe
     Pombo
     Porter
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Reichert
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Royce
     Ryan (WI)
     Ryun (KS)
     Salazar
     Saxton
     Schmidt
     Schwarz (MI)
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Sherwood
     Shimkus
     Shuster
     Simmons
     Simpson
     Smith (NJ)
     Smith (TX)
     Sodrel
     Souder
     Stearns
     Sullivan
     Sweeney
     Tancredo
     Taylor (NC)
     Terry
     Thomas
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walden (OR)
     Walsh
     Wamp
     Weldon (FL)
     Weldon (PA)
     Weller
     Westmoreland
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                               NOES--185

     Abercrombie
     Ackerman
     Allen
     Andrews
     Baca
     Baird
     Baldwin
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boehlert
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brown (OH)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardin
     Carnahan
     Carson
     Chandler
     Clay
     Cleaver
     Clyburn
     Conyers
     Cooper
     Costa
     Costello
     Crowley
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Doyle
     Edwards
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Frank (MA)
     Gonzalez
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Harman
     Hastings (FL)
     Herseth
     Higgins
     Hinchey
     Hinojosa
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson, E. B.
     Jones (OH)
     Kanjorski
     Kaptur
     Kildee
     Kilpatrick (MI)
     Kind
     Kucinich
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Leach
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Lofgren, Zoe
     Lowey
     Lynch
     Maloney
     Markey
     Matsui
     McCarthy
     McCollum (MN)
     McDermott
     McGovern
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Michaud
     Millender-McDonald
     Miller (NC)
     Miller, George
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sabo
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Schakowsky
     Schiff
     Schwartz (PA)
     Scott (GA)
     Scott (VA)
     Serrano
     Sherman
     Skelton
     Slaughter
     Snyder
     Solis
     Spratt
     Stark
     Strickland
     Stupak
     Tanner
     Tauscher
     Taylor (MS)
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Wexler
     Woolsey
     Wu
     Wynn

                             NOT VOTING--4

     Cardoza
     Evans
     Kennedy (RI)
     Smith (WA)

                              {time}  1816

  Mr. CLEAVER changed his vote from ``aye'' to ``no.''
  So the conference report was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________