S7698 CONGRESSIONAL RECORD — SENATE July 8, 1998 Idaho’s children are of particular in- College, Creighton University (where rounded in his final season with youngsters terest to Kirk. He has used his edu- he coached Bob Gibson, the famous who had never won a thing in the NBA. They cation and business experience to act baseball pitcher), and North Dakota were tuning him out? He should have turned them out. as a tremendous resource to our chil- (where he coached Phil Jackson, now For anyone to endure four years with the dren, from elementary school to the coach of the Chicago Bulls). He won the Clipper’s and 25 seasons in the NBA as a university level. 1981 NBA title as the Boston Celtics’ coach is semi-amazing. If meddling manage- As an active member of the Business coach with Larry Bird. He coached in ment isn’t giving you a headache, some Week Foundation, Kirk served as a the NBA for 25 years and was the only underachieving knucklehead player is giving mentor to Idaho high school students person to coach 2,000 regular-season you heartache. eager to learn how business operates You need a cast-iron stomach to coach in games and his 944 wins ranked second the NBA for 25 years. To be the only person and how to be successful in the work- only to NBA coach Lenny Wilkens. I to coach 2,000 regular-season games in the place. am grateful to Mike Hlas of the Cedar league tells how highly regarded Fitch was As the founder of the Bishop Kelly Rapids Gazette for writing this column held. His 944 wins rank second only to Lenny Foundation, Kirk raised money for Boi- about one of Iowa’s great athletes, and Wilkens. It is something worth honoring. se’s private high school. I am thankful to my friend, Senator As any coach will tell you, losing one game Kirk has not just played a supporting John Culver, for bringing it to my at- tears you apart. To drop 1,106 and keep plug- ging is wonderful. role in those ventures, nor in others. tention. ‘‘It’s depressing,’’ Fitch said about this When Kirk sets out to do something, he At this point, I ask that Mr. Hlas’ ar- season, days before he was fired. ‘‘But it’s takes charge. He actively raised money ticle be printed in the RECORD. also one that makes you want to say, ‘Never for the Children’s Home Society of The article follows: again,’ We’ll get it going in the right direc- Idaho, he is leading a $500,000 fund [From The Gazette, Apr. 22, 1998] tion again.’’ If you spend four years with the Bad News drive for the Boise Master Chorale, and C.R.’S FITCH A BIG WINNER he raises funds for the University of Clippers and can still say a thing like that, (By Mike Hlas) you are a winner for the ages.∑ Idaho. No one will ever put a sign at Cedar Rap- f Kirk’s boundless energy is con- ids’ city limits proclaiming it the hometown tagious. I have seen him take on so of the NBA’s all-time losingest coach. CAPITAL GAINS TAX CUT many different issues and set lofty That’s good. Bill Fitch, who attended Wil- ∑ Mr. ABRAHAM. Mr. President, I rise goals. He doesn’t know the word ‘‘no.’’ son back when it was a high school and to support the Majority Leader’s legis- When he’s asked to do something, it is coached at Coe, deserves respect. You don’t last long enough to lose 1,106 lation, S. 2214, reducing the top capital always ‘‘yes.’’ I’ve seen him gather times unless you were good. You don’t be- gains tax rate from 20 to 15 percent, some of the very talented people in the come the only coach in NBA history to coach and reducing from 18 to 12 months the state of Idaho and tackle some of these 2,050 times in the regular season unless you holding period required on capital major projects and come up with major were good. gains. results. It is so invigorating to see how Fitch, fired by the Los Angeles Clippers Mr. President, this legislation is good he weaves your magic. Monday at age 63, was good. news for the economy, and it is good In fact, even though Kirk Sullivan is But as Casey Stengel once said, I managed news for America’s working families. good, they just played bad. not an alumnus of the University of Perhaps none of Fitch’s 25 NBA squads was Ours is a global economy, Mr. Presi- Idaho, he has received the school’s as bad as the 1997–98 Clippers, who won 17 dent. And in my view it is crucial, if we Presidential Citation for giving to the and lost 65, and did so without a hint of want to continue enjoying our current University and its community. style. prosperity, that we do more to main- I must add, Mr. President, that the It didn’t even feel this rotten for Fitch in tain our competitive edge. Even with University of Idaho is not the only ben- 1970, when he and the Cleveland Cavaliers last year’s capital gains tax cut, at 20 eficiary of Kirk Sullivan’s efforts and spent their first years in the NBA together. percent America’s long term capital enthusiasm. He has served as President The original Cavs were so bad they were gains tax rate remains among the in- unaffectionately nicknamed the Cadavers. of the Bronco Athletic Association at Somehow, Fitch kept a sense of humor and dustrialized world’s highest. Further, Boise State University and is currently his sanity. countries like Australia and the United a member of the Commission on the By the time Fitch’s nine-year engagement Kingdom, which have higher rates, also Future of Clemson University, his alma closed in Cleveland, the Cavs had made the allow taxpayers to index the cost of the mater. He also is on Clemson’s College playoffs three times. asset on which they make gains. of Engineering and Science Leadership As the years passed, Cedar Rapids could We pay a high price for our high cap- Committee, with a fundraising goal of take more and more pride in calling Fitch a ital gains tax, Mr. President. As Stan- homeboy. Especially when NBA coaching ford Dean John B. Shoven points out, $100 million. legend Red Auerbach, then a general man- So you can see, Mr. President, that ager—brought him to Boston to coach the higher capital gains rates increase the Kirk and his wife, Betty, are valuable then-stale Celtics. cost of investing in capital and equip- assets and cherished members of our When surrounded by people who could play ment. As a percentage of Gross Na- community. the game better than anyone, Fitch turned tional Product, the United States in- While Kirk is retiring, I’m confident out to be quite a coach. He had three con- vested less in nonresidential projects in the knowledge that his good works secutive 60-game winners in Boston, and won from 1973 to 1992 than any of our major the NBA title in 1981 with young Larry Bird. competitors. And investment in plant and commitment to his state will never Houston was Fitch’s next stop. The Rock- wane. Idaho is a much better place be- ets had four winning seasons in five years and equipment has fallen to only half cause of the dedication and tireless ef- under Fitch, and once reached the NBA the level of the 1960’s and 1970’s. forts of Kirk Sullivan. finals, only to lose to Bird’s Celtics. Without updated plant and equip- I take pride in congratulating him The NBA’s heights were great, but Fitch ment, productivity lags and we cannot today, and I know all Idahoans salute was one of the few coaches who could survive compete with other nations. Lowered him.∑ in its depths. His last seven teams were in capital gains taxes would directly ad- New Jersey and Los Angeles, where talent f dress this problem. National Council of was inadequate. Last year, though, he did Policy Assessment Senior Fellows IOWA’S BILL FITCH lead a very young Clipper club to the play- offs. Gary and Aldona Robbins predicted, be- ∑ Mr. HARKIN. Mr. President, our The promise gave way to a nightmare sea- fore last year’s reduction in the top former colleague, Senator John Culver son. A very good player (Bo Outlaw) left as capital gains tax rate, that a cut of 50 of Iowa, brought to my attention an ar- a free agent, and another star (Loy Vaught) percent in that rate, to 14 percent, ticle, which recently appeared in the missed most of the year with a bad back. would lower the cost of capital by 5 Cedar Rapids Gazette, about Bill Fitch. So the coach got fired because he’s 63 years percent. This would induce investors to Mr. Fitch was an outstanding athlete old, because his players supposedly began to increase the capital stock by $2.2 tril- tune him out, and because the Clippers are when he attended Cedar Rapids’ Wilson about to move into a big new arena in down- lion in 5 years. And that larger stock of High School and, also, during his col- town Los Angeles and want a sharper image. capital would create 721,000 new jobs lege years at Coe College in Cedar Rap- Fitch, who had worked with Bird and and increase GDP cumulatively by al- ids. Later on, Mr. Fitch coached at Coe Kevin McHale and Moses Malone, was sur- most $1 trillion. July 8, 1998 CONGRESSIONAL RECORD — SENATE S7699 That’s a lot of jobs and a lot of years, putting the free-market Repub- to encourage savings and investment, growth, Mr. President. Particularly lican party in control of both Houses of spur continued economic growth and when we can achieve them simply by Congress. maximize federal revenues. I urge my allowing the American people to keep Mr. President, middle class investors colleagues to grant the American peo- more of what they earn. And we are in America support our nation through ple the benefits of this important legis- well on our way to spurring this disproportionate savings and invest- lation.∑ growth and job creation. For example, ment. In return these middle class f Mr. President, Congress’ Joint Com- Americans seek fair treatment. They CORRECTING THE AGRICULTURAL mittee on Taxation estimates that the seek policies that do not penalize them RESEARCH, EXTENSION, AND recent cut in the top capital gains tax for their hard work and financial re- EDUCATION REFORM ACT OF 1998 rate from 28 to 20 percent will increase sponsibility. And in my view it is time capital gains realizations by $1 trillion we gave it to them. And that means Mr. GRASSLEY. Mr. President, for over the next 10 years. That’s a trillion lowering the capital gains tax to 15 the leader I ask unanimous consent dollars, Mr. President, that will be percent. that the Senate proceed to the imme- freed from stagnant investments for It is also important to note, Mr. diate consideration of S. 2275, which more productive purposes. President, that it is the moderate in- was introduced earlier today by Sen- We should also keep in mind, Mr. come person who is penalized most by ator LUGAR. President, that this tax cut will benefit high capital gains tax rates. The in- The PRESIDING OFFICER. Without the vast majority of the American peo- crease in moderate income workers re- objection, it is so ordered. ple. In addition to creating jobs and porting capital gains is largely due to The clerk will report. keeping our businesses competitive in the increasing use of mutual funds. The legislative clerk read as follows: the global marketplace, this capital These funds allow more and more A bill (S. 2275) to make technical correc- gains tax cut will directly aid Ameri- Americans to invest in the stock mar- tions to the Agricultural Research, Exten- sion, and Education Reform Act of 1998. ca’s working families. ket by pooling resources in the hands It is time to recognize, Mr. President, of a fund manager who buys and sells The Senate proceeded to consider the that America’s middle class is fully in- stocks. bill. tegrated into our free market econ- The only down side to this profitable Mr. GRASSLEY. Mr. President, I ask omy. The vast majority of working arrangement, Mr. President, is created unanimous consent that the bill be Americans are not just wage-earners, by the tax code. Individuals investing considered read a third time and they are investors as well. in mutual funds cannot balance their passed, the motion to reconsider be Americans who own stocks, bonds capital gains by selling off other stocks laid upon the table, and that any state- and other investments on which they showing capital losses as wealthy peo- ments relating to the bill appear at may take capital gains are investors. ple can. This means that a significant this point in the RECORD. Small business owners, nonprofessional proportion of mutual fund investors There being no objection, the bill (S. salaried employees and blue collar show capital gains on a regular basis— 2275) was considered read the third workers with a company retirement and see their returns reduced because time and passed as follows: plan are investors. of capital gains taxes—even though S. 2275 As economist Lawrence Kudlow they are not controlling individual in- Be it enacted by the Senate and House of Rep- points out, ‘‘Today’s investor class vestment decisions. resentatives of the United States of America in could total as many as 125 million peo- If we want Americans to save more, Congress assembled, SECTION 1. TECHNICAL CORRECTIONS TO AGRI- ple. That’s equivalent to virtually the Mr. President, in my view it makes CULTURAL RESEARCH, EXTENSION, entire working population of the U.S..’’ sense to make savings pay more by AND EDUCATION REFORM ACT OF How does Mr. Kudlow come up with taxing it less. This cut in capital gains 1998. this number? According to a recent taxes will make savings and invest- (a) FOREST AND RANGELAND RENEWABLE RE- Nasdaq survey, 43 percent of all Ameri- ment more attractive to Americans by SOURCES RESEARCH.—Section 3(d)(3) of the cans own stocks—more than double the increasing the net return on invest- Forest and Rangeland Renewable Resources Research Act of 1978 (16 U.S.C. 1642(d)(3)) (as 21 percent reported in 1980. An NBC/ ments. amended by section 253(b) of the Agricultural Wall Street Journal poll found that 51 Finally, Mr. President, I believe it is Research, Extension, and Education Reform percent of Americans own at least important at this point to address the Act of 1998) is amended by striking ‘‘The Sec- $5,000 in stocks, mutual funds or other fear expressed by a number of people retary’’ and inserting ‘‘At the request of the retirement saving vehicles. And the that this tax cut would bust the budg- Governor of the State of Maine, New Hamp- American Savings Education Council et. Fortunately for us, that simply is shire, New York, or Vermont, the Sec- reports that nearly half of all Amer- not true. retary’’. ican workers contribute an average of 5 As I have already mentioned, the (b) HONEY RESEARCH, PROMOTION, AND CON- SUMER INFORMATION.—Section 7(e)(2) of the percent of their gross income to 401(k) Joint Committee on Taxation has esti- Honey Research, Promotion, and Consumer individual retirement plans. mated that the most recent cut in the Information Act (7 U.S.C. 4606(e)(2)) (as Forty-nine percent of America’s in- capital gains tax rate will produce $1 amended by section 605(f)(3) of the Agricul- vestors are women, 38 percent are non- trillion over the next 10 years in in- tural Research, Extension, and Education professional salaried workers—and creased capital gains realizations. That Reform Act of 1998) is amended by striking both groups have annual incomes of translates, Mr. President, into an in- ‘‘$0.0075’’ each place it appears and inserting $75,000 or less. Nearly two thirds of in- crease of $47 billion in federal revenues. ‘‘$0.01’’. vestor families have incomes under This further cut in the top marginal (c) EFFECTIVE DATE.—The amendments made by this section take effect on the date $50,000. capital gains tax rate will only mag- of enactment of the Agricultural Research, Mr. President, these responsible, nify that increase in revenue. Extension, and Education Reform Act of hard-working, middle class Americans Indeed, Congress’ own Joint Eco- 1998. are concerned about their futures; they nomic Committee last year published a f are attempting to build and nurture a study, written by economists James nest-egg for themselves, their retire- Gwartney and Randall Holcombe of ORDERS FOR THURSDAY, JULY 9, ment and their children. Florida State University, finding that 1998 These Americans know that wealth is revenue from the capital gains tax Mr. GRASSLEY. Mr. President, for created through innovation and hard would be maximized at 15 percent. the leader I ask unanimous consent work in free markets. They know that Thus, the tax cut we are considering that when the Senate completes its saving is crucial to their future and to today would achieve the maximum fed- business today it stand in adjournment the future of this nation. They saw the eral revenue possible from this tax, until 9 a.m. on Thursday, July 9. I fur- dangers big-government social engi- while in addition spurring economic ther ask that when the Senate recon- neering posed to our economy and growth and job creation. venes on Thursday, immediately fol- brought about the most significant po- This is a truly win-win situation, Mr. lowing the prayer, the routine requests litical revolution in this country in 50 President. We now have an opportunity through the morning hour be granted.