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October 17, 1990 EXTENSIONS OF REMARKS 30441 EXTENSIONS OF REMARKS BEL AIR VOLUNTEER FIRE CO. stand at the ready every hour of every day to TRIBUTE TO JUDGE HENRY J. CELEBRATES CENTENNIAL be called upon should they be needed. We BRODERICK UPON HIS RE­ are truly blessed in this Nation to have the TIREMENT AFTER 20 YEARS AS HON. HELEN DELICH BENTLEY skill and knowledge of countless volunteer fire A MARIN SUPERIOR COURT OF MARYLAND companies which provide emergency services JUDGE IN THE HOUSE OF REPRESENTATIVES to our communities. Wednesday, October 17, 1990 Having the opportunity to join in the centen­ HON. BARBARA BOXER nial celebration was an honor for me. I cannot Mrs. BENTLEY. Mr. Speaker, my fellow co­ OF CALIFORNIA stress enough the selfless and giving attitude leagues, I rise today so that I may recognize IN THE HOUSE OF REPRESENTATIVES of these fine men and women. I sincerely the Bel Air Volunteer Fire Co. which cele­ Tuesday, October 16, 1990 brates its 100th anniversary on September 15 enjoy their comradeship and outstanding de­ this year. I had the honor and privilege of at­ votion to their work. Their work and contribu­ Mrs. BOXER. Mr. Speaker, I rise today and tending the centennial celebrations which tion to our community, State, and country de­ ask my colleagues to join me in honoring a marked an important week in the history of serves the utmost recognition and is truly fine jurist on the occasion of his retirement. the fire company and the town of Bel Air. commendable. Through giving of themselves, Henry J. Broderick, is retiring after 20 years Established in 1890, the Bel Air Volunteer they not only have worked fo; the betterment of distinguished service as a superior court Fire Co. has served the town of Bel Air and of their fellow man and the town of Bel Air, judge in Marin County. Since Judge Broder­ surrounding communities with a commitment but they also have made this a better Nation ick's appointment in 1970, he has enjoyed a to the needs of their fellow man. I am truly as well. The members of the Bel Air Volunteer well-earned reputation for toughness, fairness, touched by the sense of pride and responsibil­ Fire Co. recognize the profound affect their and intellectual rigor. ity toward the community that is exhibited by work has on the community and derive a dis­ The hundreds of individuals who have ap­ the men and women who volunteer their time tinctive satisfaction from giving to society. peared before Judge Broderick seeking justice over the past two decades have had good and energies to the fire company. Through Although I wish not to recognize one par­ reason to be impressed by his dedication to protecting life and property they have given of ticular person, for the true focus of my salute the highest principles of his profession. Hun­ themselves so that others may benefit. is to the company on its 100th anniversary, I dreds of attorneys have had the privilege of Given the dangers and demands of firefight­ do feel compelled to use for the purpose of ing, one would think that many might shy appearing before a jurist who adhered to the example the name of a senior member, Mil­ away from such work. Yet one cannot help most demanding standards of preparedness lard Purcell. Mr. Purcell personifies the atti­ but be impressed by the spirited and profes­ and pro'iessionalism. sional attitude with which these individuals ap­ tude and commitment shared by all the mem­ I wish Judge Broderick the best in his retire­ proach their work. Stories of firefighters being bers. A former chief, Mr. Purcell; has served ment, and I add my voice to the chorus of hit with falling walls and ceilings, holes in the company for half a century. At age 75, he congratulations. floors, sweltering summer heat complemented still serves the company rather than retiring by 80 pounds of equipment and fire coats so and, again does so with the unmatched com­ covered in ice that they could not be removed mitment and dedication shared by all the GOOD LUCK TO DR. NANCY without first chipping away the ice has not dis­ members. SPAETH couraged the willingness of ihese special men I ask how many individuals do you know and women. who demonstrate such remarkable character­ HON. FORTNEY PETE STARK The town of Bel Air as well as the entire istics? How many individuals do you know OF CALIFORNIA Nation has changed radically since 1890. Al­ who opt for continued work and service rather IN THE HOUSE OF REPRESENTATIVES though Bel Air primarily is surrounded by rural than retiring? As we are all aware, it is far countryside, what was once a quite sleepy better to give than receive. The members of Tuesday, October 16, 1990 little town has experienced a recent surge in the Bel Air Volunter Fire Co. serve as shining Mr. STARK. Mr. Speaker, I rise today to pay population and development that has placed examples of this principle for I contend that tribute to Dr. Nancy Spaeth, the principal of new demands on the fire company. In addi­ such loyalty and affection for one's work only Castro Valley High School in California's Ninth tion, dramatic advances in technology have can come from the heartfelt satisfaction of Congressional District. Dr. Spaeth is leaving meant that firefighters also must keep pace helping someone in his/her time of need. the Castro Valley Unified School District after with the increasingly technological society in Mr. Speaker, fellow colleagues, it is with a 1O years of dedicated service to take a new which we live. deep respect and admiration for the work of position as associate superintendent for cur­ Life-saving equipment at the scene of an riculum and instruction with the Berkeley the Bel Air Volunteer Fire Co. that I extend accident at one time may have been a crow School District. congratulations on its 100th anniversary. We bar and sledge hammer. Today, they are re­ Dr. Spaeth began her career with the are forever in debt to volunteer fire companies placed by powerful cutting and spreading Castro Valley Unified School District in 1980 tools that quickly can extract an injured across our great Nation. Their hard work and became principal of Castro Valley High person from a car, yet demand a skilled and never shall go unnoticed. May God bless School in 1982. Under her leadership, Castro knowledgeable operator. I always am im­ them and protect them in all that they do. Valley High School became only one of 22 pressed by the amount of equipment and schools nationwide to be selected twice by techniques which emergency personnel must the U.S. Department of Education as a nation­ master and the life or death situations under al exemplary school, once in 1985 and again which they must operate. We indeed owe a in 1989. Castro Valley High was also designat­ great debt to these men and women who ed as a California Distinguished School in under the most stressful and dangerous situa­ 1988. tions perform heroic tasks on a daily basis. Dr. Spaeth has been an outstanding princi­ To enter a burning dwelling is something pal. She has worked to involve the community which few of us can say we ever have experi­ in the life of the school and has made use of enced nor hope to. However, these individuals community resources for students. She has

• This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 30442 EXTENSIONS OF REMARKS October 17, 1990 also worked to improve the educational pro­ areas. They are being offered outstanding tarians hope to immunize every child in the gram through teacher evaluation and an em­ services through Commissioner Doebler's world for polio and other diseases that threat­ phasis on cooperative learning, critical think­ quick response and appropriate guidance to en our youth. The Wichita Falls club has ing, and problem solving. Her administrative problems they may encounter. pledged $21 ,000 over the next 3 years to style of seeking input and sharing decison­ Doebler's commitment to the community assist in this disease fighting program. making has contributed to a positive student proves his devotion to them, and inevitably Mr. Speaker, the accomplishments of the climate. proves he is well-deserving of this honor. Wichita Falls Downtown Rotary Club are too This year, Dr. Spaeth was selected as Cali­ numerous for me to mention today. Their in­ fornia's Outstanding Principal through the In volvement in community, county, State, Na­ Honor of Excellence Program which is spon­ CONGRATULATING THE DOWN- TOWN ROTARY CLUB ON tional, and international endeavors is example sored by the National Association of Second­ of their motto-service above self. However, ary School Principals. She was also the recipi­ THEIR 75TH ANNIVERSARY the most essential element to the success of ent of the Castro Valley School District's Larry the Rotary Club of Wichita Falls is its mem­ J. Goodman Education Service Award for the HON. BILL SARPALIUS bership. Their spirit of enthusiasm is evident in 1985-86 school year. She has also been OF TEXAS active in the Association of California School IN THE HOUSE OF REPRESENTATIVES their work. With approximately 200 members, the Downtown Rotary Club serves Wichita Administrators by helping plan regional confer­ Tuesday, October 16, 1990 ences and participating as a panelist at Falls as the largest civic club. Their member­ forums of this organization. In 1986, she was Mr. SARPAULIUS. Mr. Speaker, the Down­ ship is respected-not only for each mem­ the Castro Valley Unified School District Ad­ town Rotary Club of Wichita Falls is celebrat­ ber's personal involvement in service ministrators' Association's nominee for the ing their 75th anniversary on October 18, projects-but for the club's attitude of team ACSA's Administrator of the Year Award. 1990. The Wichita Falls Rotary Club started in accomplishment. Mr. Speaker, although Dr. Spaeth will be 1915 as an intregal part of Rotary Internation­ Mr. Speaker I ask my fellow Members to sorely missed, I wish her much happiness and al which benefits people worldwide through a join me today in congratulating the Downtown success in her new position. Our loss is the number of service projects. The Rotary's Rotary Club of Wichita Falls on their 75th an­ Berkeley School District's gain. motto-Service Above Self-is an example for niversary. We commend them for a job well all people of every nation to follow. The Wich­ done and wish them well as they continue to ita Falls Rotary's commitment to service. The better our world by-service above self. W. SHERMAN DOEBLER RE­ Rotary Club members first went to bat for the CEIVES PSACC MEMBER OF boys is as strong as ever. Since its humble THE YEAR AWARD beginnings in the old city hall on Ohio Street, LSC/GAO REPORT the Wichita Falls Boys Clubs now boast five HON. GEORGE W. GEKAS club buildings and serves over 4,000 boys OF each year. Much of the success of the boys HON. CHARLES W. STENHOLM IN THE HOUSE OF REPRESENTATIVES clubs can be contributed to the commitment OF TEXAS of rotary members. Tuesday, October 16, 1990 In 1959 the Rotary Club helped sponsor a IN THE HOUSE OF REPRESENTATIVES Mr. GEKAS. Mr. Speaker, I would like to family that fled Hungary. Andy Chagoly, now a Tuesday, October 16, 1990 dentist in Wichita Falls, said if it were not for bring to your attention today the work of Mr. STENHOLM. Mr. Speaker, I rise today Union County Commissioner W. Sherman the Rotary Club, he would not be here now. to call to the attention of my colleagues the Doebler as he has been named PSACC He and his family escaped from Hungary on findings of a recent GAO study of Federal Member of the Year by the Pennsylvania Christmas Day 1956 and the Rotary Club paid Legal Services attorneys' handling of migrant State Association of County Commissioners. their way to the United States. Commissioner Doebler received this award Also in 1959, the late Lt. Col. Floyd Taylor farmworker disputes with agricultural produc­ for his outstanding leadership and active in­ convinced fellow Rotarians here to "adopt" a ers. The report clearly shows a lack of ac­ volvement in the Union County government, squadron of airmen. Today, almost every com­ countability for the expenditure of Federal tax and for his superior role in local and regional munity which boasts of a military base has a dollars. This is entirely unacceptable for a pro­ development activities. squadron adoption program, an effort that had gram in which $320 million was appropriated Doebler is serving his fourth term as a its beginnings in Wichita Falls. In three dec­ last year, a program that has not been author­ Union County Commissioner; he was first ades since the Rotary Club of Wichita Falls ized for over 10 years. elected in 1976. Since then, he has held the followed the urgings of one of its past presi­ Of the eight questions we asked, GAO was position of chairman for 12 of his 14 years in dents and adopted the first squadron at Shep­ unable to answer, even partially, well over office. In this capacity, Doebler was instru­ pard Air Force Base, the program has become half. Why? Because records were incomplete mental toward the installation of the first elec­ one of the best tools available for good rela­ and Legal Services grantees would not allow tronic voting system used in Pennsylvania. An­ tions between military installations and host GAO access to the program records. Here is other first for Union County under Doebler's communities. an example of what GAO was up against­ leadership as commissioner was the imple­ Without the financial help of the Rotary Club quoting from the report: mentation of the regional emergency commu­ of Wichita Falls, hundreds of local students nications system. would find paying for college a little bit more Because we did not have access to account records, we were unable to verify that the Doebler has committed much of his time to difficult. Each year, the Rotary Club provides grantees had properly implemented these various programs and activities for the State financial aid to Midwestern State University procedures or that the procedures provided association. He has worked on the committee students in the form of internships, scholar­ adequate controls over the accounts, • • •. for the Pennsylvania Environmental Insurance ships, and short-term low interest loans. Local Pool for over 3 years in an effort to provide high school students receive awards for This is not a way to "run a railroad," much extensive environmental liability insurance annual speech and essay contests. less a $320 million Government-sponsored coverage for counties. He has also served on The Rotary Club's current endeavor is the program. Representative MCCOLLUM and I the Pennsylvania Counties Risk Pool Board of flag project. For a nominal fee the Rotary Club plan to offer an amendment to the Com­ Directors for nearly 4 years. This agency will will place an American flag in a person's front merce/ Justice/State appropriations confer­ enable Union County residents to see a signif­ yard on six designated U.S. holidays. This fine ence report which will address the problems icant 4 percent reduction in insurance costs, example of patriotism is expected to be seen identified in the GAO report, make Legal Serv­ while maintaining the broad range of insur­ on 1,000 lawns in Wichita Falls thanks to the ices accountable to the American people and ance coverage available to them. efforts of the Downtown Rotary Club. help it to provide the much-needed services PSACC's award means that Doebler's con­ Not only is the club's interest of a communi­ Congress intended it to provide. stant dedication and service has benefited ty perspective, the Downtown Rotary Club has residents of Union County, as well as outlying a record of international service. By 1996, Ro- October 17, 1990 EXTENSIONS OF REMARKS 30443 ED AND DOROTHY BELTZ CELE­ THE DEFICIT REDUCTION after budget plan proved to be a charade. BRATE 60TH WEDDING ANNI­ PACKAGE With a few exceptions, this package relied on concrete steps taken now, not accounting VERSARY gimmicks or vague plans for the future. The HON. LEE H. HAMILTON package contained new enforcement mecha­ HON. JOE KOLTER OF INDIANA nisms to ensure that most of the savings IN THE HOUSE OF REPRESENTATIVES would materialize and grow into the coming OF PENNSYLVANIA years. Wednesday, October 17, 1990 IN THE HOUSE OF REPRESENTATIVES Third, the package would have allowed a Mr. HAMILTON. Mr. Speaker, I would like to drop in interest rates which would help bol­ Tuesday, October 16, 1990 insert my Washington Report for Wednesday, ster economic growth in the economy. The October 10, 1990, into the CONGRESSIONAL Federal Reserve Chairman has said that he Mr. KOL TEA. Mr. Speaker, I rise today to will move to reduce interest rates if a credi­ pay a special tribute to my good friends Doro­ RECORD: ble budget package is enacted. That will thy and Ed Beltz of Ellwood City, PA, who are THE DEFICIT REDUCTION PACKAGE help to offset some of the effects of tax in­ celebrating their 60th wedding anniversary on After months of difficult and sometimes creases and spending cuts; in particular, October 30, 1990. bitter deficit reduction negotiations between homeowners with adjustable rate mortgages Dorothy and Ed are no ordinary couple. the President and Congressional leaders, and those buying homes will benefit. It will the House last week considered, but reject­ also increase business investment and pro­ They met each other and have lived and ed, the negotiated package. The largest defi­ ductivity, and lengthen our nation's current worked in the western Pennsylvania area of cit reduction package ever, it called for cut­ short-term planning horizon. New Castle, PA all of their lives. Their lives ting the deficit $40 billion in 1991 and $500. Fourth, the size and the timing of the pro­ have been full as they have actively participat­ billion over a five-year period. It had two jected deficit reduction was about right. ed in the endeavors of their children, Bonnie, dollars in spending cuts for every dollar of The package had a little of this and a little Bill, Charlotte, Harold, and David. These 5 tax increases. While far from my ideal pack­ of that-a mix of excise taxes, user fees, age, I felt it was a positive step to help us limits on income tax deductibility, and cuts have given in return, 11 grandchildren, and get our fiscal house in order. in defense spending and entitlements. I felt those grandchildren have enhanced Dorothy THE NEED FOR DEFICIT REDUCTION that the $40-billion reduction target for next year was reasonable. Any less and the and Ed's lives by giving them 12 great grand­ The federal budget deficit is our most children. pressing economic problem; it must come budget deal would lack credibility; any more This couple has worked long and hard to and it might slow an already sluggish econo­ down. With the economy on the brink of re­ my. Because the deficit reduction in the support and encourage each member of their cession, deficit reduction is urgently needed package was real, the savings would grow, family circle to survive the joys and sorrows of to allow lower interest rates to restore taking a larger bite out of the deficit in life. At a time when they should have been health to the economy. For the longer term, deficit reduction is the only sure and proven future years. enjoying retirement from their business enter­ way for the federal government to increase DRAWBACKS OF THE PACKAGE prises-restaurant ownership, schoolbus con­ national savings and thereby strengthen in­ The package was certainly not my ideal tracting, and management of school food vestment and productivity. budget plan. Too much of the burden would service-they have assisted in the rehabilita­ The deficit has kept us from addressing be shouldered by the middle class, in excise tion of their beloved daughter-in-law who has important domestic needs, and has led to taxes and user fees. The Medicare cuts were courageously learned to live with paralysis as budgetary games that cost us dearly in deeper than I would prefer, and could be a terms of public trust. Failure to solve the burden on low- and middle-income persons. a result of a stroke, and they have instilled deficit problem would lead to a lower stand­ The package would have increased some­ strength and faith to three of their lovely ard of living in the long run and reduced what the tax burden on the wealthy­ grandchildren who are afflicted with juvenile American influence . No one can through limiting their itemized deductions, diabetes. believe that this country should allow $300- taxing their luxury items, and raising the No adversity has been too great for them billion deficits to continue. cap of their Medicare payroll taxes. Yet the as they have survived the losses of their Tht. ryackage went after obvious targets. overall result of the package was that mod­ On the spending side, it recognized that the erate-income taxpayers would be hit harder eldest and youngest sons. All of the chal­ Soviet threat has lessened and that Medi­ than the most well off. My preference lenges of their lives have simply made them care costs-expected to double over the next would be to place more of the burden on stronger and more faithful to their ultimate five years-should be restrained. Although those most able to bear it. goal of doing good for others. the excise tax increases were controversial, Although the deficit cuts in the package Mr. Speaker, I want to take this opportunity higher prices for cigarettes and alcohol may were real, the long-run economic assump­ discourage younger Americans from smok­ tions underlying the package were still too on the floor of this House of Representatives ing and drinking, and the gasoline tax would optimistic. That meant the underlying defi­ to offer my heartiest congratulations to two reduce our consumption of foreign oil. The cit was much larger than indicated; so the very fine people who have weathered all the package removed Social Security from the result would be higher deficits than predict­ adversities of life with an enthusiasm which budget and avoided any cost-of-living-ad­ ed and additional deficit reduction needed cannot be diminished. They continue at their justment freezes or taxes on Social Security down the road. ages-Ed has just recently celebrated his benefits. LIMITED OPTIONS 80th birthday and Dorothy her 76th-to serve REASONS FOR THE PACKAGE Despite its drawbacks, the package was a their church as officers, they enjoy traveling, Although I disagreed with many aspects long-overdue shift toward responsible fiscal square dancing, golfing, Masonic organization­ of the package, I voted for it for several rea­ policy. For years we have been stalemated sons. First, and most importantly, the alter­ because each Member wanted a lower deficit al activities and continue to work tirelessly to native is fiscal chaos. Failure to pass a pack­ and had his own unique program to achieve bring happiness and comfort to their family age would mean the Gramm-Rudman deficit it. But when the House took up the pack­ and friends who need their attention and sup­ reduction law would trigger large across-the­ age, it was not a question of this one or port. board spending cuts, shutting down many some personal preference; no other feasible I ask the Members of the U.S. House of parts of government and curtailing all kinds alternative was available. I felt that a "no" Representatives to join with me in extending of essential services, from meat inspection vote on this package could mean that the to mail delivery to air traffic control. While economy falters, the federal government congratulations and best wishes to Dorothy the package would have reduced the 1991 stops, the markets fall, the deficit explodes, and Ed on their 60th wedding anniversary. deficit by $40 billion, the Gramm-Rudman and the economy slips out of control. May this lovely couple enjoy life to its fullest cuts would wring out more than $100 billion. It is easy to pick apart this package. The and every day of the future and may all the Cuts that large would be disastrous, almost package was a result of divided government good deeds they have done for others be re­ certainly pushing into recession an economy and a reflection of the election results. With already weakened by the shock of increased neither party totally in charge of the gov­ turned to them fourfold. oil prices and problems in the financial ernment, neither got entirely what it system. wanted. Second, on the whole it was a credible def­ The package was better than no package icit reduction effort. Over the past decade, and better than any feasible alternative. we have lost the public trust as budget plan Yet the package had no study, no hearings,

39-059 0 -91-30 (Pt. 21) 30444 EXTENSIONS OF REMARKS October 17, 1990 and was drafted by a handful of officials. tivation for fomenting such a confrontation. policy should take, and bitter debate over That is not the way to govern. Shamefully, the United States sponsored the the vexing issue of the budget. I really be­ resolution. It is apparent that President Bush lieve President Bush deserves credit for being willing to consider every issue as a ELEMENTARY SCHOOL CONTIN­ is desperately trying to protect his alliances subject for negotiation and compromise in UES TO LIVE UP TO VISION OF with the Arabs in Operation Desert Shield and his relations with the Democratic Leader­ CECIL H. PARKER he's using Israel as a sacrificial lamb. ship in Congress, including putting the issue While I deeply deplore the Palestinian of taxes on the table. He has walked the last HON. NITA M. LOWEY deaths in Jerusalem, it must be understood mile in his effort to come to some bipartisan that the stone throwers were the ones who agreement, and in fact has taken a lot of OF NEW YORK provoked the incident. The PLO has endorsed heat from people on both sides of the aisle. IN THE HOUSE OF REPRESENTATIVES Saddam Hussein and his power hungry de­ It's no secret that our economy is facing a Wednesday, October 17, 1990 signs, and the riot in Jerusalem was simply a slowdown, and unemployment is on the rise. As President Bush's Secretary of HUD, I ex­ Mrs. LOWEY of New York. Mr. Speaker, calculated Palestinian move to advance Sad­ press the concerns of millions of low income Cecil H. Parker was a pioneer in the field of dam's agenda. It is shameful and disgraceful Americans struggling to make a living and education. Through her passion, her patience, that the President and the Secretary of State keep homes together in the inner cities of and her faith, she instilled a sense of pride have made one-sided comments condemning this country. We owe it to the poor to do ev­ and sparked a sense of curiosity in her stu­ Israel while turning a deaf ear to Palestinian erything in our power to maintain, and provocation and calculation. indeed, restore the growth momentum dents. She has been a role model for educa­ which has created over 21 million jobs tors and students for many years. during the past eight years and launched Seven years ago, the Nathan Hale Elemen­ A SPEECH BY SECRETARY JACK over 4 million new small businesses. tary School in Mount Vernon, NY, was re­ KEMP The good shepherd reminds us all that named and rededicated as the Cecil H. Parker those who are blessed have an obligation to Elementary School in her honor. She had be a blessing to those left out or left behind. taught there for almost 30 years. At the same HON. STEVE GUNDERSON It is the poorest of our citizens who suffer time, Cecil H. Parker/Nathan Hale Elementary OF WISCONSIN the most from the consequences of bad eco­ IN THE HOUSE OF REPRESENTATIVES nomic policies. They are the first to lose School graduates are selected to receive their jobs and homes, and the first to suffer scholarships to continue their education. This Wednesday, October 17, 1990 from a credit crunch. Indeed, their problems scholarship program makes a higher educa­ Mr. GUNDERSON. Mr. Speaker, given the are the most severe and distressing. tion affordable to young people who would many arguments that have been made on the In the interests of both promoting eco­ without this help not have been able to afford various budget proposals before Congress, I'd nomic growth and reaching a budget agree­ to go beyond high school. ment that truly reduces the deficit, I would like to add one more. offer the suggestion that Congress consider Mr. Speaker, in Ms. Parker's vision, the In his recent address to the Aspen Institute, teachers were the gardeners and the students the plan offered by the President: reducing Housing and Urban Affairs Secretary Jack the effective rate on capital gains taxes to the garden. In her vision, our schools would Kemp made a good point that we should not 15% plus indexing, then in return, as the produce harvests of responsible, committed be tied to addressing persistent economic Democrats demand, raising the top margin­ citizens. I wish to congratulate all of the Cecil problems with the same old, failed solutions. al rate to 31 % to put an end to the com­ H. Parker Elementary School family for their Following are the Secretary's remarks which plaints of so-called "unfairness." success in continuing Ms. Parker's tradition of I hope will be reviewed by my colleagues on The American economy is sliding into a recession that may be long and deep if Con­ educational excellence. Her legacy will be em­ both sides of the aisle. bodied in the accomplishments of those who gress does not soon agree to the growth ini­ SPEECH BY SECRETARY JACK KEMP are educated at this special institution. What tiative President Bush has endorsed. In the Thank you for that warm introduction. interests of furthering that effort, I would she has done for education will long live as a It's an honor to be part of such an outstand­ further urge Congress to consider suspend­ tribute to the remarkable dedication of Ms. ing program, focusing on the domestic and ing attempts to secure a five-year budget Cecil H. Parker. international challenges facing America agreement and concentrate its energies today. toward securing a one-year budget agree­ What an exciting time it is to be alive. ment that limits or even freezes spending PALESTINIAN-ISRAELI President Bush has called it the Revolution and cuts taxes, not raises them. HOSTILITY MAKE HEADLINES of 1989, but perhaps it's just the Revolution The ambitious effort to cut $500 billion in of 1776 not yet brought to its ultimate com­ a five-year agreement began when the econ­ HON. ELIOT L. ENGEL pletion. omy was stronger and there was no foreign OF NEW YORK But as in all revolutionary eras, Charles policy challenge as we face in the Middle Dickens' statement still applies: it can be East today. In my view, it's not logical to IN THE HOUSE OF REPRESENTATIVES the best of times and the worst of times si­ adopt sharp tax increases in the face of Wednesday, October 17, 1990 multaneously. It is best of times to witness such an uncertain future. The poorest and the triumph of liberal domestic values­ the weakest in our society are sure to be Mr. ENGEL. Mr. Speaker, the Temple small "l," small "d"-capturing the global hurt the most, as they would be in any eco­ Mount confrontation in Jerusalem has brought zeitgeist. It is the worst of times when we nomic downturn. Palestinian-Israeli hostility back into the head­ see poverty, despair, homelessness, and This compromise would give the Demo­ lines and has pushed Saddam Hussein's inva­ hopelessness cripple the lives of too many crats in Congress one last chance to prove sion of Kuwait off the front pages, just as people and far too many children living in that they are sincere when they say they Saddam would want. It's clear to me that the America's inner cities. are willing to help the President find a solu­ Palestinian rock throwers deliberately pro­ Clearly we can't help the poor if the coun­ tion to this country's need for growth and voked the incident to help Saddam Hussein try itself becomes poorer. So for a few mo­ budgetary stability. If the Democratic Lead­ ments, I'd like to discuss the war against ership now rejects this fair and generous link his invasion of Kuwait to the Arab-Israeli poverty in the context of the great debate offer from the President, they will have conflict. Barrels of stones were later found, in­ now taking place on Capitol Hill over tax shown their intent is not to help, but to ob­ dicating that the rock throwing incidents were and budget policies. struct. apparently planned in advance. One of the most hotly contested issues Cutting the capital gains tax will unlock Unfortunately, as usual, the international today involves the current budget talks be­ billions of dollars now tied up in existing community has taken the bait. The United Na­ tween the White House and Congress. I be­ assets, while indexing for inflation would tions Security Council passed a resolution lieve that President Bush demonstrated reduce the confiscatory effective tax rates condemning the Israeli security forces' han­ great leadership in advocating a cut in the that can easily reach 75% on long-term capital gains tax to 15% during the presi­ assets, according to economist David Gold­ dling of the situation, and not mentioning one dential election two years ago, and again in man. Those dollars will provide access to word about the fact that peaceful Jewish wor­ his State of the Union Address. the seed capital which is the number one shippers at the Western Wall were initially Clearly there are deep differences and di­ need of entrepreneurs seeking to start or bombarded with stones. Apparently no visions between Republicans and Democrats expand an enterprise and put people to thought was given to possible Palestinian mo- about the direction our national economic work. October 17, 1990 EXTENSIONS OF REMARKS 30445 Even economist Allen Sinai-never a placed by the entrepreneurial capitalist competition through magnet schools, educa­ strong proponent of tax cuts-has conclud­ spirit so alive in Eastern Europe today, and tion vouchers, tuition tax credits, and poli­ ed that cutting the capital gains tax would even in Moscow. cies for choice in education like those being raise federal revenue by $30-$40 billion be­ President Bush has asked me to help championed by State Representative Polly tween 1990 and 1995, increase GNP by eliminate this socialist second economy so Williams in Wisconsin and Council Member almost 3% or over $150 billion, create 2.5 that every American-especially the poor­ Keith Butler in Detroit. million new jobs, and boost business capital can participate in the free enterprise Eighth, Congress should pass President spending by 1.3%. system. We want everyone to have the Bush's HOPE legislation

39-059 0 - 91-31 (Pt. 21) 30476 EXTENSIONS OF REMARKS October 17, 1990 argue the importance of job performance. I then look at policy decisions based on values a real recession, then if we're worried about could go on. I won't. and vision, about which they then make de­ the deficit shouldn't our very first goal be to Suffice it to say that this bill, in my opinion, cisions that are numerical. avoid a recession? But unless you go through that almost cy­ now meets the test of rightness and practicali­ And they'd be told by the experts, no, bernetic loop, you are in fact missing the that doesn't count because the Joint Com­ ty. key elements of how to make decisions. mittee on Taxation has an economic model The second choice I had was to talk about which is static and does not take into ac­ the budget as if we'd actually allowed REMARKS BY CONGRESSMAN count any kind of expectational changes, normal citizens to write it. and cannot predict outside effects. GINGRICH CONCERNING THE Let me give you just one example, because BUDGET I'll give you an example. The much-ma­ I think it is such an astonishing and such an ligned capital gains tax, which, by the way, unnoticed fact in this city, that it's worth would have two surprising indirect effects. HON. WILLIAM M. THOMAS paying a lot of attention to. If you had ran­ One is by lowering the cost of capital in the domly drawn any 21 citizens in America into OF CALIFORNIA a room, and said we 're going to give you United States, it would draw money into the IN THE HOUSE OF REPRESENTATIVES four and a half months to think about the United States, thereby providing non-Feder­ al Reserve Board liquidity and at the Wednesday, October 17, 1990 federal budget, we're going to give you all the technical backup you need, we're going margin lowering interest rates, and, second, Mr. THOMAS of California. Mr. Speaker, to give you all the opportunities to look at it would raise the value of real property, want to commend our colleague, Congress­ all the arguments-one of the things they something of substantial importance if man GINGRICH, for recent remarks he made could never have done, ever, is allow the Ap­ you're the federal government, and you are propriations Committees to have no cuts. I the largest single seller of real property in concerning the budget summit and the budget America today. Therefore, it would lower process in general. I am submitting them for mean, only in Washington would you start a budget process by saying we're going to pro­ the cost of the S&L bailout. the record as his thoughts on what the voters tect the Appropriations Committees so that Neither of those changes can be handled want and what we have been doing are they have full inflation-level growth in their by the Joint Committee on Taxation. The worthy of consideration by all of us. spending for the next five years, and now Joint Committee on Taxation is today intel­ ADDRESS BY REPRESENTATIVE NEWT GINGRICH we 're going to talk about cutting spending. lectually the equivalent of a travel agency TO A CONFERENCE SPONSORED BY THE FINAN­ And yet in America at large, where there's that will not put you on an airplane because CIAL EXECUTIVES INSTITUTE an overwhelming majority convinced that their model airplanes can't fly. Rep. NEWT GINGRICH: Thank you very government is a bad buy. that they're not It's literally true. If you look at their non­ much. I thought I would talk for a little getting their money's worth, that Washing­ dynamic model of how human beings while and then take questions, but I should ton doesn't have the wisdom to spend their behave, they always overestimate revenue, say that my major claim to fame isn't all money intelligently-and after watching us for example, and excise taxes because they that nice stuff you just heard; it is that I am last weekend, this has been doubled or tri­ underestimate the speed with which the congressman who represents the Atlan­ pled. humans stop doing the things we tax. They ta Airport. And in a sophisticated group like In the rest of the country they would always underestimate the revenue gain from this, I always ask, how many of you have have started out by saying, now how much things like capital gains that increase be­ been through my district? Raise your hand, do you intend to have the Appropriations haviors, because they always underestimate Committees spend? And it's well over a tril­ the expectational changes of humans when if you've been through.