[Congressional Record (Bound Edition), Volume 154 (2008), Part 1]
[House]
[Page 416]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          PAYROLL TAX HOLIDAY

  The SPEAKER pro tempore. Pursuant to the order of the House of 
January 4, 2007, the gentleman from Oregon (Mr. DeFazio) is recognized 
during morning-hour debate for 5 minutes.
  Mr. DeFAZIO. The Bush administration presided over the creation of 
the housing bubble and the underlying exotic financial instruments with 
their typical ``hands off'' regulatory approach. Now it has exploded, 
and some in the administration are recognizing that the economy is in 
trouble, something that middle-income America and average Americans 
have known for quite some time.
  Finally, the President and his appointees are talking about some 
stimulus. But they are drawing a line. They are saying yes, we will do 
some stimulus, but we will not invest in America. There will be no 
infrastructure investment. They are saying that would be bad. So far, 
there's no indication either that they intend to bring any regulatory 
discipline to the bizarre, exotic, over-leveraged, and opaque financial 
markets, something that also cries out to be done.
  Stimulus, yes. I believe we can reach agreement on that. It needs to 
be targeted toward those who have been hurt the worst: Middle-income 
and working families. The best way to do that, the most progressive way 
to do that would be through a payroll tax holiday. Nearly half of the 
people in this country pay more in payroll taxes than they do Federal 
income taxes. It's a flat, regressive tax. Forty-four percent pay more 
in payroll taxes than they do income taxes. Lower income Americans, 
seniors in particular, who work part-time jobs to augment their 
retirement Social Security, pay no taxes, and would not get any rebates 
under the President's plan. They need help too. They are struggling 
with higher costs of medical care, fuel, and heating like everybody 
else in this country.
  So a payroll tax holiday would be the fairest way to get money to the 
people who need it the most, who would be most likely to spend the 
money, and provide some short-term stimulus to the economy. That is 
short-term. But long-term we need to reinvest in America, and it is 
strange the President draws a line in the sand there. It is not so 
strange, I guess, since the Secretary of Transportation last week, Mary 
Peters, recommended phasing out any Federal role, any Federal 
investment in our roads, bridges, highways, and transportation systems 
in this country. She said the financial markets will take care of that, 
they will lend us the money, the same financial markets that are 
totally in the tank and having to go overseas now, the same big firms 
that are borrowing money from Saudi Arabia and other state funds in 
order to stay afloat because of all their speculation. No. We need 
investment in America.
  Unemployment among construction workers is up to nearly 10 percent, 
and nearly a million are unemployed. If we just spent $15 billion on 
ready-to-go and needed infrastructure projects in this country; roads, 
bridges, highways, water and sewer systems, we could put 712,000 people 
to work. That's 712,000 people. We could basically wipe out 
unemployment in the construction trades. But the President says no. He 
won't borrow money to invest in America, he will borrow some money to 
provide some short-term consumption.
  Of course, part of the problem with that is those who won't just use 
it to pay bills, or essentials, which many will, will be buying things 
that aren't made in America any more. So that money is going to leak 
overseas to China when they buy that flat screen television with the 
$600 or $800 rebate the President is proposing.
  So we need both. We need a stimulus, and that will help some if it's 
targeted to those most in need, but we also need a long-term 
reinvestment in our country. It will make us more economically 
efficient, it will save fuel, and it will put people to work. It's 
worth borrowing money to do that.

                          ____________________