E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, FIRST SESSION

Vol. 141 WASHINGTON, WEDNESDAY, APRIL 5, 1995 No. 63 House of Representatives

The House met at 11 a.m. and was The SPEAKER pro tempore. The Fawell Johnson, E. B. Metcalf Fields (LA) Johnson, Sam Meyers called to order by the Speaker pro tem- question is on the Chair’s approval of Flake Johnston Mica pore [Mr. CAMP]. the Journal. Flanagan Jones Miller (CA) f The question was taken; and the Foley Kanjorski Miller (FL) Speaker pro tempore announced that Forbes Kaptur Mineta DESIGNATION OF THE SPEAKER Fowler Kasich Minge the ayes appeared to have it. Fox Kelly Mink PRO TEMPORE Mr. TIAHRT. Mr. Speaker, I object to Frank (MA) Kennedy (MA) Moakley The SPEAKER pro tempore laid be- the vote on the ground that a quorum Franks (CT) Kennedy (RI) Molinari is not present and make the point of Franks (NJ) Kennelly Montgomery fore the House the following commu- Frelinghuysen Kildee Moorhead nication from the Speaker: order that a quorum is not present. Frisa Kim Moran The SPEAKER pro tempore. Evi- Frost King Morella WASHINGTON, DC, dently a quorum is not present. Funderburk Kingston Murtha April 5, 1995. Myers The Sergeant at Arms will notify ab- Gallegly Kleczka I hereby designate the Honorable DAVE Ganske Klink Myrick CAMP to act as Speaker pro tempore on this sent Members. Gejdenson Klug Nadler day. The vote was taken by electronic de- Gekas Knollenberg Neal NEWT GINGRICH, vice, and there were—yeas 384, nays 27, Gephardt Kolbe Nethercutt Speaker of the House of Representatives. Geren LaFalce Neumann answered ‘‘present’’ 2, not voting 21, as Gibbons LaHood Ney f follows: Gilchrest Lantos Norwood Nussle [Roll No. 288] Gilman Largent PRAYER Gonzalez Latham Obey YEAS—384 Goodlatte LaTourette Olver The Chaplain, Rev. James David Ortiz Ackerman Brown (FL) Crane Gordon Laughlin Orton Ford, D.D., offered the following pray- Allard Brown (OH) Crapo Goss Lazio Oxley er: Andrews Brownback Cremeans Graham Leach Packard Archer Bryant (TN) Cubin Green Levin We pray, gracious God, that the Pallone Armey Bryant (TX) Cunningham Greenwood Lewis (CA) Parker words of our mouths and the medita- Bachus Bunn Danner Gunderson Lewis (KY) Pastor tions of our hearts will be acceptable in Baesler Bunning Davis Gutierrez Lightfoot Paxon Baker (CA) Burr de la Garza Gutknecht Lincoln Your sight and that from our words Payne (NJ) Baker (LA) Burton Deal Hall (OH) Linder and meditations will flow deeds that Payne (VA) Baldacci Buyer DeFazio Hall (TX) Lipinski Pelosi serve people with justice and truth. Barcia Callahan DeLauro Hamilton Livingston Peterson (FL) Give us the insight and the wisdom to Barr Calvert DeLay Hancock LoBiondo Peterson (MN) Barrett (NE) Camp Dellums Hansen Lofgren think clearly and to act diligently so Petri Barrett (WI) Canady Diaz-Balart Hastert Longley Pomeroy that we are faithful custodians of the Bartlett Cardin Dickey Hastings (WA) Lowey Porter resources of the land. May Your bless- Barton Castle Dicks Hayes Lucas Portman Bass Chabot Dingell Hayworth Luther ing, O God, that is new every morning Poshard Bateman Chambliss Dixon Hefner Maloney give every person strength and peace Pryce Becerra Chapman Doggett Heineman Manton Quillen according to their need. In Your name, Beilenson Christensen Dooley Herger Manzullo Quinn we pray. Amen. Bentsen Chrysler Doolittle Hilleary Markey Radanovich Bereuter Clayton Dornan Hobson Martinez Rahall f Berman Clement Doyle Hoekstra Martini Ramstad Bevill Clinger Dreier Hoke Mascara Reed THE JOURNAL Bilbray Clyburn Duncan Holden Matsui Regula Bilirakis Coble Dunn Horn McCarthy The SPEAKER pro tempore. The Richardson Bishop Coburn Durbin Hostettler McCollum Riggs Chair has examined the Journal of the Bliley Coleman Edwards Houghton McCrery Rivers last day’s proceedings and announces Blute Collins (GA) Ehlers Hoyer McDade Roemer Boehlert Collins (IL) Ehrlich Hunter McDermott to the House his approval thereof. Rogers Boehner Combest Emerson Hutchinson McHale Rohrabacher Pursuant to clause 1, rule I, the Jour- Bonilla Condit English Hyde McHugh Ros-Lehtinen nal stands approved. Bonior Conyers Ensign Inglis McInnis Rose Bono Cooley Eshoo Istook McIntosh Mr. TIAHRT. Mr. Speaker, pursuant Roth Borski Costello Evans Jackson-Lee McKeon to clause 1, rule I, I demand a vote on Roukema Boucher Cox Everett Jefferson McNulty Roybal-Allard agreeing to the Speaker’s approval of Brewster Coyne Ewing Johnson (CT) Meehan Royce the Journal. Browder Cramer Farr Johnson (SD) Meek

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

H 4179 H 4180 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Rush Spence Vucanovich MESSAGE FROM THE SENATE the injury to Tyus Edney, who had Salmon Spratt Walker Sanders Stark Walsh A message from the Senate by Mr. played so brilliantly throughout the Sanford Stearns Wamp Hallen, one of its clerks, announced tournament, keep them from their Sawyer Stenholm Ward that pursuant to Public Law 94–304, as goal. Instead, they focused on what Saxton Studds Waters they could do, and the O’Bannon broth- Scarborough Stump Watt (NC) amended by Public Law 99–7, the Chair, Schaefer Stupak Waxman on behalf of the Vice President, ap- ers, Cameron Dollars Toby Bailey, and Schroeder Talent Weldon (FL) points Mr. CAMPBELL, Mr. the other Bruins raised their game. I Schumer Tanner Weldon (PA) congratulate them and Coach Jim Seastrand Tate Weller KEMPTHORNE, Mr. SANTORUM, and Mr. Sensenbrenner Tauzin White ABRAHAM to the Commission on Secu- Harrick for their inspirational play. Serrano Taylor (NC) Whitfield rity and Cooperation in Europe. I also want to take a moment to ex- Shadegg Tejeda Wicker The message also announced that press appreciation to Coach Nolan Shaw Thomas Williams Richardson and his Arkansas players. Shays Thornberry Wilson pursuant to Public Law 93–29, as Shuster Thornton Wise amended by Public Laws 98–459 and 102– They are great champions and dis- Skaggs Thurman Wolf 375, the Chair, on behalf of the Presi- played tremendous determination and Skeen Tiahrt Woolsey dent pro tempore, reappoints Robert L. skill to reach the final game. I hope Skelton Torkildsen Wyden Slaughter Towns Wynn Goldman of Oklahoma to the Federal Corliss Williamson and Scotty Smith (MI) Traficant Yates Council on the Aging. Thurman will return for their senior Smith (NJ) Tucker Young (AK) f years so that the Nation can be treated Smith (WA) Upton Young (FL) to a championship rematch next year. Solomon Velazquez Zeliff REPUBLICAN CONTRACT WITH Souder Visclosky Zimmer f AMERICA NAYS—27 (Mr. CHRISTENSEN asked and was THE BASIC MESSAGE Abercrombie Foglietta Menendez given permission to address the House Brown (CA) Furse Oberstar (Mr. TIAHRT asked and was given Chenoweth Gillmor Owens for 1 minute and to revise and extend permission to address the House for 1 Clay Hastings (FL) Pickett his remarks.) minute and to revise and extend his re- Deutsch Hefley Pombo Mr. CHRISTENSEN. Mr. Speaker, marks.) Engel Hinchey Sabo our Contract With America states the Fattah Jacobs Taylor (MS) Mr. TIAHRT. Mr. Speaker, today as Fazio Lewis (GA) Vento following: we consider the tax relief bill, I urge Filner McKinney Volkmer On the first day of Congress, a Re- my colleagues and the American people publican House will require Congress to ANSWERED ‘‘PRESENT’’—2 to keep in mind what this debate is live under the same laws as everyone really about. Republicans want to cut Harman Stockman else; cut committee staffs by one-third; taxes. The big-government party wants and cut the congressional budget. We NOT VOTING—21 to raise taxes. kept our promise. From now on, only a few will remem- Ballenger Mollohan Smith (TX) It continues that in the first 100 days, Collins (MI) Rangel Stokes ber the details in this legislation, and Fields (TX) Reynolds Thompson we will vote on the following items: A fewer will care about the specifics. But Ford Roberts Torres balanced budget amendment—we kept Goodling Schiff Torricelli everyone will remember this basic fact: our promise; unfunded mandates legis- The Republicans want to cut taxes. Hilliard Scott Waldholtz lation—we kept our promise; line-item Mfume Sisisky Watts (OK) The liberal big-government party veto—we kept our promise; a new wants to raise taxes. crime package to stop violent crimi- b 1121 The vote today is simple. If this bill nals—we kept our promise; national se- Mr. RUSH changed his vote from passes, more Americans will keep more curity restoration to protect our free- ‘‘nay’’ to ‘‘yea.’’ of their own money. If this bill fails, doms—we kept our promise; Govern- those who oppose reform, the defenders So the Journal was approved. ment regulatory reform—we kept our of the status quo, the liberals who love The result of the vote was announced promise; commonsense legal reform to big government, will have won a big as above recorded. end frivolous lawsuits—we kept our victory while the American people will promise; welfare reform to encourage f have lost. work, not dependence—we kept our Mr. Speaker, last November the peo- PLEDGE OF ALLEGIANCE promise; congressional term limits to ple voted out the past and voted in the The SPEAKER pro tempore (Mr. make Congress a citizen legislature— we kept our promise; family reinforce- future. I hope my colleagues remember CAMP). Will the gentlewoman from ment, tax cuts for middle-income fami- this basic message sent by the voters. Maryland [Mrs. MORELLA] come for- They voted in people who promised to ward and lead the House in the Pledge lies, and the senior Citizens’ Equity Act to allow our seniors to work with- give America tax relief, and they voted of Allegiance. out government penalty—we will do out people that they knew would raise Mrs. MORELLA led the Pledge of Al- these today. taxes. legiance as follows: This is our Contract With America. f I pledge allegiance to the Flag of the f United States of America, and to the Repub- THE TAX BILL AND THE lic for which it stands, one nation under God, CONGRATULATIONS UCLA ALTERNATIVE MINIMUM TAX indivisible, with liberty and justice for all. (Mr. WAXMAN asked and was given (Mr. STUPAK asked and was given f permission to address the House for 1 permission to address the House for 1 minute and to revise and extend his re- minute.) ANNOUNCEMENT BY THE SPEAKER marks.) Mr. STUPAK. Mr. Speaker, lately I PRO TEMPORE Mr. WAXMAN. Mr. Speaker, as an have been on the floor talking about The SPEAKER pro tempore. As the undergraduate and law school graduate what I call the Republican version of Chair is about to receive a message of UCLA, and as the Representative of AFDC, not aid to families with depend- from the Senate, the Chair would note the congressional district that includes ent children, but aid for dependent cor- that for many years messages from the the UCLA campus, I rise to congratu- porations. Senate have been delivered by Mr. late the Bruins on a great victory on This tax bill is another example of Brian Hallen. Mr. Hallen is retiring, Monday night. AFDC, welfare for corporations. The and this is the last message he will de- Coach John Wooden once said this to Republican tax bill repeals the cor- liver to the House. his players: ‘‘Do not let what you can- porate alternative minimum tax, AMT, The Chair on behalf of the House not do interfere with what you can do.’’ a provision of the 1986 Tax Code which thanks him for his many courtesies The 1995 Bruins lived that advice in the ensures that profitable corporations and wishes him well in the future. championship game. They did not let pay their fair share of income taxes. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4181 I have offered an amendment to the Rupert of book deal fame, Rupert that it was highly appropriate. After Committee on Rules to prevent the re- Murdoch. all, we have our own ringmaster, we peal of this provision, but it was not The Daily News reports that the Re- have our own clowns. made in order by the Republican lead- publicans in the conference committee I heard yesterday that a Member of ership. dropped their opposition to the tax the other body asked what do we do, Every year thousands of parents break after learning Murdoch was the how do you stop an elephant if they go make room in their budget to buy beneficiary and after consulting with berserk in the Capitol? Well, I under- school supplies for their kids, things Mr. GINGRICH. If Mr. GINGRICH wants to stand he was talking about the need for like this 99-cent bottle of glue. Most of do something about the Murdoch book assault weapons here in the Capitol. you do not know, but in 1981 virtually deal, now is the time to do it with a The next thing you know, we will be every one of those parents paid more in concurrent resolution pulling it back hunting giraffes. taxes than the multimillion-dollar before we get to ring 3 of the circus But the real issue is that the ele- company which produced this product. today, the amazing contortionists who phants have gone berserk in the Cap- According to Citizens for Tax Justice, are going to explain how to balance the itol; it is called the contract on Amer- in the 1981 tax year, Borden, the mak- Federal budget by reducing the amount ica. How do you stop them? There is an ers of this glue, despite making a profit of Federal revenues. Who needs a circus election in 18 months. Until then, it is of over $201 million, paid no income outside when we have a circus on the bread and circuses here in our three- tax. In fact, they got back $14.9 million inside? ring circus. in tax credits. f Mr. Speaker, I hope we reject this f bill, reject this rule, bring back tax THE CIRCUS fairness. (Mr. HAYWORTH asked and was A GLORIOUS DAY FOR AMERICA f given permission to address the House (Mr. SOUDER asked and was given for 1 minute and to revise and extend WE MUST PASS THE REPUBLICAN permission to address the House for 1 his remarks.) TAX RELIEF BILL minute.) Mr. HAYWORTH. Mr. Speaker, I will Mr. SOUDER. Mr. Speaker, today (Mr. SAM JOHNSON of Texas asked agree with the preceding speaker on should be a glorious day for America. and was given permission to address one matter: There is a circus and it is We hope to pass, in one day, a law that the House for 1 minute and to revise not the Ringling Brothers outside; the will cut taxes, releasing the engine of and extend his remarks.) circus came to town 40 years ago with economic—dynamic economic growth Mr. SAM JOHNSON of Texas. Mr. my liberal brethren on the other side of and giving parents the freedom to Speaker, in 1993, President Clinton and the aisle, still dealing with hocus-pocus make decisions for their own children. the liberal Democrats passed the larg- of the speaker when we know that Sen- It will move Congress toward a bal- est tax increase in history, claiming it ator MOSELY-BRAUN of Illinois intro- anced budget, and it will begin to was for deficit reduction. But, the fore- duced all these little sleight-of-hand transfer the power of the Federal Gov- cast is $200 billion in deficits as far as documents here. ernment back to the people. the eye can see. Let us talk about the rhetoric and The defenders of the Washington wel- The problem is not that the Govern- the clowns. Those are folks who come fare state charge we ‘‘terrible’’ Repub- ment does not have enough money; it forth making claims so outlandish re- licans favor the rich, we want to de- just spends too much. We have the garding school lunches and school prive our children of lunches, and other proof: For every dollar they have loans they would be funny if they were desperate charges. Whine, whine, raised in taxes, they have spent a dol- not so pathetic. Then you have the real whine; I fear they drank too much of lar fifty-nine. acrobats. Those are the Members who their own wine. We must pass the Republican tax re- talk about deficit reduction but then The truth is simple. America has spo- lief bill. It reduces the Clinton Tax on acting another way to spend our grand- ken. Washington does not know best. workers, helps businesses expand, cre- children’s money without shame. They Today can be the real beginning of the ates jobs, and gives money back to the could be the real contortionists. reversal of power where Americans can people who earned it. Then you have the tightrope walkers; make their own decisions without con- This tax cut is vital. We must elimi- those are Members who balance precar- nate the deficit. These cuts take sulting Congress. You might even say, iously between what the voters want, ‘‘A morning in America, part 2,’’ only money away from the beast, big gov- which is lower taxes and lower spend- ernment, and put dollars back in the this time not only will the cuts again ing, and then you have what the liberal increase Government revenues but now hands of the creators of economic leadership of the Democratic Party growth, the American people. we have a Republican Congress that is wants, which is higher taxes and more not going to spend it all. God has given f spending. us a second change. Today should be a b 1130 Mr. Speaker, there is one real dif- glorious day. ference between Ringling Brothers and THE CIRCUS IS INSIDE, TOO the liberal Democratic leadership: At f (Mr. DOGGETT asked and was given least the real circus out front is enter- permission to address the House for 1 taining. LET US PUT OUR MONEY WHERE minute.) f OUR DEFICIT IS Mr. DOGGETT. Mr. Speaker, there is (Mr. ROEMER asked and was given a circus outside, but the real show is ANNOUNCEMENT BY THE SPEAKER permission to address the House for 1 here with the rings on the inside. In PRO TEMPORE minute and to revise and extend his re- ring No. 1, the incredible fire acts. You The SPEAKER pro tempore. The marks.) remember last week when we ap- Chair will remind Members not to refer Mr. ROEMER. Mr. Speaker, in the proved—some of us did not approve of to Members of the other body. last 91 days here in the United States it—burning your citizenship card in f Congress, we have passed some new leg- order to save billions of dollars if you islation to give the President and the are a billionaire and move offshore. HOW DO YOU STOP AN ELEPHANT Congress more ability to cut spending Well, they performed very well. Appar- THAT GOES BERSERK? and reduce the deficit. I voted for the ently, if you have got enough money, (Ms. LOFGREN asked and was given line-item veto; I voted for the balanced patriotism does not matter anymore. permission to address the House for 1 budget amendment. But now the rub- In ring 2, the amazing vanishing act. minute.) ber meets the road. Now we have the Yes, 18 of the 19 special deals vanished Ms. LOFGREN. Mr. Speaker, when I opportunity to put our money where right out of the conference report, but told my 10-year-old last night that the deficit is. one is still there; that is the one deal Ringling Brothers was coming to the Are we going to spend over $700 bil- for Rupert Murdoch. You remember House, he laughed out loud. I told him lion that we cut in spending and give it H 4182 CONGRESSIONAL RECORD — HOUSE April 5, 1995 to corporations and wealthy individ- vestors who own shopping centers, who Mr. PASTOR. Mr. Speaker, I think it uals? Or are we going to give every sin- own stocks and bonds on Wall Street. has become clear to the American peo- gle American a tax break and reduce That is where they want to give it. ple that the Contract With America is the deficit, keep the interest rates Last, who do they really want to give nothing more than a contract on the down, keep the economy growing, it to? How about GE, AT&T, IBM, and middle and working class of America. allow Americans the opportunity to all the big corporations, because they And now, the Republican majority has buy a new home? That is the tough de- are no longer, under their tax bill, a new contract out on the college stu- cision we should make. Let us not pan- going to have to pay 1 penny in taxes. dents of this country. der for reelection in 1996. Let us make That is who the money goes to. We all know, Mr. Speaker, that the the difficult choice for our children and f cost of attending college is rising. And reduce spending and put it toward the yet my Republican colleagues have deficit. H.R. 1327 ACTUALLY RAISES suggested giving the wealthy a tax cut TAXES ON OVER 2 MILLION f by reducing funding for Federal finan- AMERICANS cial aid programs. On the Republican WORKING FAMILIES DESERVE (Mrs. MORELLA asked and was given chopping block is the interest-deferred THIS TAX RELIEF permission to address the House for 1 Stafford Loan Program which if elimi- (Mr. JONES asked and was given per- minute and to revise and extend her re- nated would cost the average student mission to address the House for 1 marks.) $4,344 in added loan repayments. minute.) Mrs. MORELLA. Mr. Speaker, I have The work study programs, which pro- Mr. JONES. Mr. Speaker, Americans concerns about H.R. 1327 because I be- vide Federal dollars to colleges to hire are working harder today than ever. lieve that genuine deficit reduction low- and middle-income students for However, they are receiving lower rather than tax cuts should be our No. campus jobs, would also be eliminated wages and paying higher taxes. 1 priority. But I really want to point if Republicans have their way. Other Throughout the country, both parents out to this body that while purporting GOP targets include the Supplemental are having to work just to keep their to decrease taxes, this bill actually Education Opportunity Grants and the heads above water. raises taxes on over 2 million Ameri- Perkins Loans, which go to the need- In 1948, the average American family cans. iest students. These cuts will do noth- with children paid only 3 percent of its Mr. Speaker, title IV of this bill ing for this Nation other than assure income to the Federal Government in would raise Federal employee retire- that college students, especially the income and payroll taxes. Today, the ment contributions by 2.5 percent. It neediest students, will be forced out of same family pays 24.5 percent to the also would change the retirement for- school altogether. Federal Government. mula to reflect the highest 5 years of To put it simply, Mr. Speaker, any- Working families deserve relief from salary instead of the current highest 3 thing that would help the children of this growing burden. The Republican years of salary. This change in retire- low-income and working American tax relief proposal will do just that. It ment formula would affect postal em- families to get ahead has been or will will provide 35 million families with ployees as well as civil service workers. be eliminated if the Republican Con- the $500 per child tax credit, lowering Why are we once again taxing a work tract on the average American becomes the tax burden for 89 percent of the force that has already contributed to law. American families. deficit reduction for more than a dec- The middle-class squeeze is taking ade? The tax bill that is before us con- f its toll on families in endless struggle tains $91 billion more than is needed to to make ends meet and taking its toll fund the tax cuts. The $12 billion from TAX DAY IS FAST APPROACHING on the fabric of our society as well. tax increases on Federal employees is (Mr. FUNDERBURK asked and was More than ever before, American fami- not needed. given permission to address the House lies deserve tax relief. Both the Congressional Research for 1 minute and to revise and extend f Service [CRS] and the General Ac- his remarks.) counting Office [GAO] agree that the Mr. FUNDERBURK. Mr. Speaker, tax THE TAX CUT BENEFITS WILL GO ‘‘Federal retirement system’s unfunded day is fast approaching. As a result of TOWARD THE WEALTHIEST IN liability is not a problem that needs to Bill Clinton’s tax hike the people in my AMERICA be fixed.’’ Both CRS and GAO conclude district have to work from January 1 (Mr. VOLKMER asked and was given that ‘‘there will always be sufficient to May 5 just to pay Uncle Sam’s taxes permission to address the House for 1 assets in the retirement fund to cover and then they work until July to pay minute.) benefit payments to all current and fu- off State and local government. Mr. Mr. VOLKMER. Mr. Speaker, this is ture retirees.’’ Speaker, I resent the liberal Democrats the 92d day of our imperial speaker- The provisions in title IV of H.R. 1237 claiming that my constituents’ hard- ship. What has happened in that 92 were never approved by the Govern- earned money is the property of Gov- days? Well, they voted, the majority ment Reform and Oversight Commit- ernment that they must continue to Republicans voted to take heating as- tee. I really do not understand why we pay for those who won’t work. Working sistance away from my poor, they are bypassing the normal and fair pro- people have the right to keep their own voted to take school lunches and cedures of the House by including these money. breakfasts out of the mouths of the provisions in the tax reduction bill. I come from a rural district, most of children in my district. They voted to I want to point out that an average my constituents work on small farms take food stamps from the working Government employee who earns and in small factories. They create the poor and children in my district. They $30,000 per year will have to pay an ad- jobs, fight the wars, and struggle ev- voted to take the training and edu- ditional $750 per year. This is a signifi- eryday to keep the country going. On cation away from women on welfare cant, hefty sum to pay. It is unfair. We their behalf, I support tax cuts—even who want to be off of welfare. Now they should keep our contract with our Fed- more cuts than are in this bill—and I are talking about taking college loans eral work force, those people who make reject the politics of class warfare ped- away from my middle-income families America run. dled by the minority. It is obscene for so they cannot go to colleges or univer- f the Democrats and their Hollywood sities. and media friends to ridicule the peo- What are they going to do with this? REPUBLICAN MAJORITY HAS A ple in my district who want nothing They are going to give it to the NEW CONTRACT OUT ON COL- more than to take back control of their wealthy, $200,000 income parents who LEGE STUDENTS lives and communities from the wel- have children. Those are the children (Mr. PASTOR asked and was given fare state. that they are worried about they want permission to address the House for 1 Mr. Speaker, let us cut taxes now and to take care of. They want to give it minute and to revise and extend his re- let the Democrats explain why they away in capital gains cuts for big in- marks.) stood in the people’s way. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4183 THE PRICE OF PANDERING WITH THIS TAX BILL IS A CRUEL FEDERAL EMPLOYEES PAYING TAX CUTS DREAM MACHINE FOR REPUBLICAN TAX CUTS (Mr. MEEHAN asked and was given (Ms. KAPTUR asked and was given (Mr. HOYER asked and was given permission to address the House for 1 permission to address the House for 1 permission to address the House for 1 minute.) minute and to revise and extend her re- minute and to revise and extend his re- Mr. MEEHAN. Mr. Speaker, the Re- marks.) marks.) publican tax plan is not about helping Ms. KAPTUR. Mr. Speaker, the Re- Mr. HOYER. Mr. Speaker, this is the out struggling families. It is about pan- publican contract calls parts of today’s Contract With America. This is a Con- dering with promises that will destroy tax bill the American dream. Well, I, tract With America, and I have looked our economy if they are kept. too, have an American dream. My at the fine print, and it does not say we are going to increase the taxes on 2 Call me cynical, but I do not think dream is that we pay off the debts of million people. It does not have a pro- Republicans want to give tax credits this century and not pass on $4.7 tril- vision which says that on 2,000,000 of for children because they believe in lion of debt to the next generation. our employees’ families you are going family values but because people with This Republican bill will cost our tax- to have to tax increase. It does not say kids are likely to vote. payers up to $700 billion over the next to those that are working for the Fed- Republicans do not want to let large 10 years. Under the Republican bill it is eral Government and our employees in corporations avoid paying taxes be- absolutely wrong that households earn- this House, ‘‘If you make $20,000, you’re cause they think it will boost produc- ing $200,000 would receive an average going to have a $500 tax increase; if you tivity, but because the people who run tax cut of over $11,000 while those make 30, you’re going to have a $750 in- those companies are big givers to Re- under $30,000 receive a hundred bucks. crease; if you make 40, a thousand dol- publican campaigns. In fact, working families with two chil- lar increase, and if you make 50, a Do not be fooled, America. The price dren with incomes of up to $16,000 $1,250 tax increase so we can give a tax of this pandering will be paid by ordi- would not get anything, while those cut for the wealthiest of America.’’ nary working families, the very people with adjusted gross incomes of up to ‘‘Now STENY HOYER has a lot of Fed- Republicans claim to be trying to help. $250,000 would receive a $500 per child eral employees.’’ My colleagues are Cutting student loans to pay for tax tax credit. saying, ‘‘This is a tax increase; we cuts now will make it harder to send This bill is a cruel dream machine. don’t believe it.’’ their kids to college. Opening tax loop- To make matters worse, huge corpora- Let me quote GERALD SOLOMON, holes for the wealthy and corporations tions would no longer pay even the chairman of the Committee on Rules: will smother the economy with debt, minimum tax. Vote for what is right. ‘‘I have to agree with you that this is eroding the living standards of the Do not wait for the next election. Vote a case where we are raising taxes on middle class. ‘‘no’’ on this Republican bill. some to pay for tax cuts for others,’’ Let us cut wasteful spending and bal- and that to me says Chairman SOLO- f MON is wrong. ance the budget. But until then, the pandering on tax cuts has got to stop. f LET US PASS THIS TAX BILL f TODAY THE TIME IS RIGHT FOR A DEBATE ON TAXES (Mr. WHITE asked and was given per- b 1145 mission to address the House for 1 (Mr. ROTH asked and was given per- minute.) mission to address the House for 1 NEEDED TAX RELIEF Mr. WHITE. Mr. Speaker, a week or minute.) (Mrs. SEASTRAND asked and was two ago I made a very difficult deci- Mr. ROTH. Mr. Speaker, yes, this is given permission to address the House sion. There is nobody in this House who preeminently the time for us to debate for 1 minute and to revise and extend wants to cut taxes more than I do. But taxes. The people in America are filling her remarks.) I decided that I would not vote for the out their tax returns, and they are darned mad and they are not going to (Mrs. SEASTRAND. Mr. Speaker, tax tax cuts that we are going to consider take it anymore. relief for middle-class families is long today unless I was sure we had the Some here in Congress wonder why overdue. President Clinton promised spending cuts to go along with them. I middle-class tax cuts, but he walked the American people are so upset. Well, did not want to make the deficit worse, let me give an example: away from his promise. He promised and, as I explained when I sat down and deficit reduction, and this year he Here is a letter from a constituent of talked to leadership about this, I do mine, a man I represent back home in walked away from that promise. This not think we should go on a diet, or I Wisconsin, who points out that the FBI new Congress promised both deficit re- do not think we should eat our dessert Director on Tuesday pointed out that duction and tax cuts for the middle before we go on a diet. We have got a $44 billion—let me repeat that—$44 bil- class, and unlike the previous 40 years lot of hard work to do this summer to lion of our national health costs go to of one-party rule, we are keeping our get the spending cuts under control. fraud. promise of tax relief for families. Then it would be time to pass the tax Now, no wonder the American people Our bill will help families by provid- cuts. are upset. People are sick and tired of ing them with a $500 per child tax cred- Well, Mr. Speaker, I am very pleased all the waste, fraud, and abuse. it targeted to the middle class. It will to say that the bill we are going to Yes, we need tax breaks because help families pay for college tuition by consider today does exactly that. The maybe the less money we give to the expanding penalty-free IRA withdraw- tax cuts under this bill do not take ef- Federal Government, just maybe, it als, and it will help our senior citizens fect unless we have done our job this will be less that will be wasted. by restoring the cuts in Social Secu- summer with the Senate to enact laws f rity that were passed by the Clinton that will balance the budget. The great THE CIRCUS IS UNDER THE Democrats. genius of this, Mr. Speaker, is that, CAPITOL DOME Members on both sides of the aisle when every special interest group can either stand on the sidelines as we comes to see us this summer asking us (Mr. GENE GREEN of Texas asked make tough votes, or they can join us to save their particular program, the and was given permission to address as we work to ultimately balance the American people will know that, if we the House for 1 minute and to revise budget, provide tax relief to create do our job and they help us do our job, and extend his remarks.) jobs, help families, and provide a better we will be able to cut their tax. Mr. GENE GREEN of Texas. Mr. future for our children and grand- That is what we should do. Let us Speaker, the circus is in the District of children by protecting the American Columbia today, and it is actually out- pass this bill today. dream. side these doors of the Capitol. So we H 4184 CONGRESSIONAL RECORD — HOUSE April 5, 1995 bring in the clowns. We will shoot $500 a little clumsy, but they’ll still try to Well, we have about 150 of them rep- tax cuts out of a cannon and sell cot- pull it off. You will see elephants—that resented here. They are, among others, ton candy wrapped around a capital great symbol of the Grand Old Party— the people that used to be known as gains cut. Who is left paying at the dance and stomp around, just as you moderate Republicans. About a hun- ticket booth? Well, our senior citizens, will see the Republicans dance around dred Republicans signed a letter saying our grade school and college students the issue of deficit reduction, and they did not like a tax credit for people who have already sustained cuts, con- stomp on the principle of tax fairness. that made $200,000, but, like the India struction workers, mothers, and finally You want to see a high wire act? rubber man, just because they signed all taxpaying Americans. Well, do not bother watching death-de- the letter does not mean they cannot Today the Republican majority will fying professional acrobats when you be twisted into voting the bill. There attempt to pass a bill which will create can watch professional politicians defy will probably be a majority of Repub- the largest deficits that have been pro- logic during their high-wire act. licans who will vote for this bill, hav- posed recently. Welcome to the real And the Republicans will even per- ing told us how much they do not like circus under our Capitol dome. The Re- form without a net! Unfortunately, it some aspects of it. Just like the India publican majority are working to give is your safety net: loans for college rubber man, they will start standing up the top 2 percent Americans 58 percent education, school lunches and nutri- straight, but the leadership will come, of that $180 billion tax cut. The 10-year tion programs for your kids, heating and twist them, and move them, and cost will be $630 billion. Now that real- assistance for the elderly. push them, and, by the time they are ly is under the big top. Well, the circus came to town. But, through, they will be all bent out of The bears and elephants are not eat- eventually, the tents get folded, the shape, but they will vote for it. ing peanuts but hundred-dollar bills at sawdust gets swept up, and the ele- Actually the circus is probably the our expense, from the pockets of hard- phants and clowns get back on the wrong institution to talk about when working Americans. Children are pay- train. This week, the Republican circus we talk about moderate Republicans. ing $2.3 billion in cuts in education and closes. Let us hope it does not return. The place where they will be found school nutrition programs. I hope they f hereinafter is in museums, because enjoy the circus today because it will there will not be any more left. The be the last one for 10 years. THE TRUTH ABOUT THE pressures that the right wing is able to The Greatest Show on Earth is not CONTRACT’S FAMILY TAX CUTS generate on Republicans means we will Barnum and Bailey, it is under our (Mr. RIGGS asked and was given per- continue to see the kind of ultimate Capitol dome. mission to address the House for 1 flexibility which leads them to sign a f minute.) letter saying they do not like the tax Mr. RIGGS. Mr. Speaker, to reduce bill and then get twisted into voting THIS TAX BILL WILL HELP SMALL the tax burden on working middle class for it. BUSINESS AND WORKERS families we Republicans are proposing (Mr. ENGLISH of Pennsylvania asked a $500 a year tax credit for each child f and was given permission to address under 18 years old in tax-paying fami- the House for 1 minute.) lies with income less than $200,000. H.R. 1215 UNFAIR TO FEDERAL Mr. ENGLISH of Pennsylvania. Mr. Using their tired refrain of class war- WORKERS Speaker, I believe it is time for Con- fare, Democrats are calling our pro- (Mr. DAVIS asked and was given per- gress to make small business stronger posal a proposal that would benefit mission to address the House for 1 and more competitive, and the best only the rich. Let us take a look at the minute and to revise and extend his re- way to do that is by passing House Res- truth. marks. olution 1215, the Republican tax plan. The families of 52,000,000 American Mr. DAVIS. Mr. Speaker, I rise to This legislation will help small busi- children, which comes to 35,000,000 fam- sound the alarm against a huge tax ness continue its critical role as the ilies, are eligible for the $500 per child hike on 2 million Americans that has largest producer of jobs in our country. tax credit. In fact, according to the been slipped into H.R. 1215, the package The Republican tax plan increases House Committee on Ways and Means, of tax reforms that will be considered the amount of capital equipment that a the family tax credit would lessen the on this floor today. Here are the facts: small business can expense, doubling it tax burden on a vast majority; in fact, Fact: The rule governing today’s tax over a period of time to lower the cost 89 percent of these families. The $500 debate prevents a clean vote for the tax of capital equipment, for cost of cap- per child tax credit would completely reductions that were promised in the ital for equipment, used by small busi- eliminate the Federal tax burden for Contract With America. We will be ness. This assists cash-starved small 4.7 million working families at the low- asked to vote on a package that in- businesses that need to make strategic est income levels. cludes a 2.5-percent payroll tax hike capital investments to survive, and it The bottom line: The contract tax that would cost every Federal worker encourages small business growth. credit will provide families with $120 between $3,500 and $11,000 over the next What this legislation does is it makes billion in tax relief over the next 5 5 years. The Congressional Budget Of- American workers more productive and years. Just about all families will bene- fice has scored this as a revenue which more internationally competitive. This fit, the Democrats’ class warfare not- means that it is a tax. And that’s not legislation is pro small business, it is withstanding. Family, children, jobs; all. pro worker. It is time we passed it. that is what the Republican tax credit Fact: The same tax package would f is all about. reduce lifetime benefits for Federal f workers by 4 percent by changing the THIS WEEK, THE REPUBLICAN retirement formula to reflect the high- CIRCUS CLOSES INDIA RUBBER MEN UNDER THE est 5 years of salary as opposed to the (Mr. GUTIERREZ asked and was BIG TOP TODAY current formula based on the highest 3 given permission to address the House (Mr. FRANK of Massachusetts asked years of salary. This provision simply for 1 minute.) and was given permission to address makes it more expensive for Federal Mr. GUTIERREZ. Mr. Speaker, the the House for 1 minute.) workers to retire on schedule and en- circus came to town today. But, you Mr. FRANK of Massachusetts. Mr. courages them to stay on the payroll know what? If you were looking out- Speaker, I want to talk about an as- longer to make up for the losses in side on the Capitol Grounds, you pect of the circus that we usually see planned retirement benefits. missed it. The real circus is right in- in the sideshow, but it has moved in The tax hike supporters claim that side the House, as the Republicans here, in the big top. That is the India this revenue is needed to fund the clown around to try to pass this tax rubber man who can be bent and twist- CSRS retirement system. Let’s look at cut for the wealthy and well-off. ed all out of shape, no bones, no resist- the facts: Step right up and you will see the ance. One can just make all kinds of Fact: None of this increased revenue Republicans juggle numbers—it will be shapes out of them. will be set aside in a trust fund for the April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4185 benefit of future Federal retirees. In- citizens. Today our grandparents are evolution. While the criteria for award of one stead, it will go into the general treas- used as money trees by the Federal of the Armed Forces' highest honors must re- ury to finance tax cuts for others. Government. Instead of treating our el- main high, I commend the services for rec- Fact: 50 percent of Federal employees ders with respect, our Government has ognizing that the Iraqi incident, occurring in are part of the FERS retirement sys- come to look at them as just another the presence of hostile forces, meets the cri- tem which everyone agrees has abso- tax target. teria for award of the Purple Heart. lutely no unfunded liability. Neverthe- For instance, the earnings limit im- less, these workers are subjected to the posed on working seniors actually dis- f same tax hike and will get no addi- courages work. The tax is so unfair A HISTORY LESSON IN ECONOMICS tional retirement benefit or security. that if a senior citizens earns over Fact: CRS has determined that the $11,000 in a year, he or she will be as- (Mr. KINGSTON asked and was given Federal retirement system does not sessed a marginal tax rate of 56 per- permission to address the House for 1 have an unfunded liability problem and cent. That is 56 percent; that is ridicu- minute, and to revise and extend his faces no threat of insolvency. These lous. This rate is twice the rate that remarks.) findings have been verified and con- millionaires pay. Mr. KINGSTON. Mr. Speaker, of firmed by the GAO. Excuse me, but I think there is some- course, the Democrats and the White H.R. 1215 includes a huge, unfair tax thing wrong with this picture. House are concerned about the circus hike selectively imposed on 2 million In our Contract with America, Re- coming to town. They hate having the working Americans. This tax hike does publicans promised to reduce the tax competition. Besides, they might get not belong in a tax reduction bill and burden imposed on senior citizens. We stomped on by a charging elephant. must be defeated. I will oppose any rule are committed to tax fairness and to They already had that experience in that does not address this tax hike, and protecting our grandparents. We owe it November. I will oppose any so-called Tax Fair- to those who fought the wars, raised But have they no shame? For the ness bill that arbitrarily punishes the families, and built the Nation to past 40 years, while controlling the these 2 million Federal workers. protect them from an out-of-control House, the Democrats had deficit f Federal Government bent on taxing the spending, and now suddenly they are American people into the poorhouse. deficit hawks concerned about a tax TAX CUTS FOR THE RICH, THE Let us cut taxes now. cut that might hurt the economy or CROWN JEWEL OF THE REPUB- f the deficit, according to them. LICAN CONTACT Of course, we know that Democrats (Mr. OLVER asked and was given AWARD OF PURPLE HEART TO love taxes, so they do not want to give permission to address the House for 1 SERVICE MEMBERS KILLED IN up on any tax revenue. But I would say minute and to revise and extend his re- IRAQI ‘‘NO FLY’’ ZONE INCIDENT to my friends on that side of the aisle, marks.) (Mr. DIXON asked and was given per- if they would look at history, economic Mr. OLVER. Mr. Speaker, Speaker mission to address the House for 1 history, they would see that tax cuts NEWT GINGRICH, the Speaker of this minute, and to revise and extend his actually increase revenues. House, has called the tax cut for the remarks.) From 1956 to 1969, taxes were down, rich bill that we are going to be debat- Mr. DIXON. Mr. Speaker, I rise today and GDP increased. From 1970 to 1982, ing today the crown jewel of the Re- to commend the Army and Air Force taxes were up and GDP went down, rev- publican Contract on America. Well, he for their decision to award the Purple enue from taxes went down. From 1983 is also quoted in the Washington Times Heart posthumously to members of the to 1988, revenue from taxes went up and yesterday. Speaker NEWT GINGRICH Armed Forces killed on April 14, 1994, taxes were down. But then after the quoted fairness is the animating prin- in a friendly fire incident in the north- 1989–90 tax bill, taxes went up and reve- ciple, end quote, of the bill says House ern Iraqi no fly zone. Fourteen Amer- nues went down. speaker NEWT GINGRICH who attacks ican service members on peacekeeping Mr. Speaker, this is economic his- the Democrats’ argument as, quote, duty—were killed when two American tory. It is not partisan politics. I would class warfare, unquote. F–15C fighter aircraft accidently shot be happy to share it with any of the down two United States Black Hawk b 1200 Members. helicopters in northern Iraq. Well, I am going to leave it to the Mrs. Kaye Mounsey, the widow of f American people to decide if it is fair Army WO Eric Mounsey—a pilot of one THE CIRCUS AND THE GOP SHARE to take $15 billion of financial aid from of the helicopters—resides in Culver THE SPOTLIGHT the children of middle and low income City in my congressional district. I families, who would want to use that met with Mrs. Mounsey last summer (Mr. (ENGEL asked and was given financial aid to go to college, and use and she related to me the concern permission to address the House for 1 the $15 billion to allow some of our big- which she and other family members minute, and to revise and extend his gest corporations in America to pay no shared about the initial decision of the remarks.) taxes. Corporations like Anheuser- military not to award the Purple Mr. ENGEL. Mr. Speaker, much as Busch, Boeing, du Pont, General Dy- Heart. been said this morning about the circus namics, PepsiCo, Texaco, Westing- As a result of language inserted in coming to town, and it is true. As we house, and Xerox—all of them would be last year’s defense appropriations con- speak, the circus is out here on the allowed to pay no taxes under this bill. ference report and the consistent advo- Capitol Grounds, celebrating its 125th Is it fair to take $50 billion of heat cacy of family members that decision anniversary, complete with clowns and and housing aid from elders and nutri- has now been reversed. It was the ap- elephants performing tricks. tion from young people and child care propriate thing to do. While the elephants are outside per- and subsistence from poor people and I am pleased that the services have forming their tricks, the GOP ele- give that to the wealthiest families agreed to recognize the sacrifice of phants in this Chamber are performing who make $200,000 a year? Is it fair? these members of the Armed Forces. It their tricks on the American people. f is the appropriate thing to do. While They say they are for balancing the there is little we can do to compensate budget, but instead they are about to TAX FAIRNESS MEANS TAX for the loss of a husband, brother, sis- pass legislation giving tax breaks for RELIEF FOR SENIOR CITIZENS ter or child, it is essential that we ac- the rich, at the expense of the rest of (Mr. CHABOT asked and was given knowledge the Nation’s gratitude for the American people. These tax cuts permission to address the House for 1 the ultimate sacrifice that these Amer- for the wealthy, which the Speaker minute.) icans gave in service to their country. calls his crown jewel, will surely ex- Mr. CHABOT. Mr. Speaker, the time The role and complexity of United States plode the national deficit and at the has come to provide tax relief for all Armed Forces missions have evolved and it is same time cut or eliminate college stu- Americans, especially for our senior important that the services acknowledge that dent loans, take food out of the mouths H 4186 CONGRESSIONAL RECORD — HOUSE April 5, 1995 of schoolchildren, cut funds for edu- Mr. MORAN. Mr. Speaker, 1 hour ago zy, offensive way to this institution. cation, and decimate senior citizens we turned and faced this flag. We And, yes, it was done. and veterans’ health care. pledged allegiance to it, and we pledged Mr. ARCHER, what a shame on you, The Speaker is planning a big speech liberty and justice for all. and what a shame on this institution, and festivities celebrating the end of Mr. Speaker, where is the justice and what a shame on the Speaker that the 100 days of the contract on Amer- when we take an average of $5,000 from it was done. ica. These Republican circus festivities each of America’s civil servants in We have the ability to correct what may not be as entertaining as the real order to pay a tax cut of about $1,000 was done. Yesterday I attempted to circus, but to paraphrase a very famous over the next 5 years to America’s tax- offer a joint resolution to take out that song, Mr. Speaker: ‘‘Where are the payers? Where is the justice to increase obscene provision. I have tried to do clowns and who are the clowns?’’ taxes on America’s civil servants and that today. I have spoken to Mr. Mr. Speaker, it looks like they are reduce their benefits in order to pro- ARMEY this morning and asked for his here. vide tax cuts for other people? consent, because it does require unani- There is no justice, and there is no mous consent to take out that provi- f integrity, Mr. Speaker, when 8 years sion. PASSAGE OF THE TAX BILL ago America’s civil servants were faced I urge you, my colleagues on the HOLDS OUT HOPE FOR NEXT with one of their most important deci- other side of the aisle, who talk in good YEAR’S TAXPAYERS sions, the financial security of their faith about this institution and about wives and children when they retire, how things need to change, to do in (Mrs. SMITH of Washington asked and we promised them we would never deed what your words have said. Mr. and was given permission to address again change their retirement system. ARCHER, I ask you—you are sitting the House for 1 minute, and to revise Mr. Speaker, we are going to do that here right now—to do in deeds what and extend her remarks.) today. Where is the justice? Where is your words and your Speaker have Mrs. SMITH of Washington. Mr. the integrity of this institution? said, take out that provision. Speaker, I want to talk to the folks at I urge my colleagues to vote against f home, my clients that I left at home. I this tax cut bill and against the rule. am a tax consultant, and at this time MEMBER’S RESPONSE TO f of the year I am usually up 24 hours a CHARGES INVOLVING TAX PRO- day practically helping people get VISION through the maze of taxes and trying AN AVERSION TO TAX CUTS to explain to them why every year they (Mr. WALKER asked and was given (Mr. ARCHER asked and was given keep going up and up and up. permission to address the House for 1 permission to address the House for 1 I want to tell you next year what is minute.) minute.) going to happen when you have your Mr. WALKER. Mr. Speaker, I do not Mr. ARCHER. Mr. Speaker, the gen- tax return filed. It will be different know why Democrats hate employers, tleman has used my name and violated than it is this year if this bill passes but they do. Just listen to what they the rules of the House because remarks today. say about tax cuts. are supposed to be addressed to the First of all, when you get to the end, I do not know why Democrats hate Speaker, not to individual Members, you are going to get to take $500 off per middle-class two-earner families, but and, second, what he just said is to- child, but really that just means you they do. Just listen to what they say tally distorted. get to keep $500 of your hard-earned about tax cuts. The amendment to which he refers money that the Government is not I do not know why Democrats hate was introduced in the conference com- going to take. You can buy a washing small business men and women, but mittee by the Democratic Senator machine with it or you can take the they do. Just listen to what they say from Illinois, CAROL MOSELEY-BRAUN, kids to Disneyland, but you will spend about tax cuts. and pushed by the—— the money and that will cause tax rev- I do not know why Democrats hate Mr. DEUTSCH. Mr. Speaker, will the enues to come into the economy. Do success, but they do. Just listen to gentleman yield? you trust you better to spend your what they say about tax cuts. Mr. SOLOMON. Regular order. money and spur the economy, or do I do not know why Democrats hate Mr. DEUTSCH. Mr. Speaker, will the you think it is better to have it go into the guy who gets lucky and wins the gentleman yield? the big buildings that are being built lottery, but they do. Just listen to The SPEAKER pro tempore (Mr. all the way around me here in Wash- what they say about tax cuts. CAMP). Regular order has been called. ington, DC, filling them with the bu- Democrats start with the idea that The gentleman will suspend. Mr. AR- reaucracy? Which one is better? Which everything earned by everybody is CHER has the floor. one is better for the economy? Which theirs to spend. Democrats believe that Mr. DEUTSCH. Mr. Speaker, will the one can use the money, the Govern- every tax is a good thing because it al- gentleman yield to answer to the ment or you who were going to sell or lows them to do what they see as good American people why you did what you were about to sell that rental that you things, and they hate anyone who gets did? fixed up and you are holding it because money back from their tax bill because The SPEAKER pro tempore. The gen- you do not want it all to go away in it takes away from their ability to tleman from Florida is out of order. taxes because of the huge tax increase spend. Mr. SOLOMON. Mr. Speaker, regular that was passed in 1986 by this side of Democrats love taxes. They hate to order. the aisle? I want to tell you that next reduce taxes, and they hate the Mr. ARCHER. Mr. Speaker, is anar- year you can actually sell it and we thought that there are Americans who chy acceptable procedure on the floor will not keep all the money if we pass would like to keep more of the money of the House? Is interruption and anar- this legislation. they earn for themselves. chy the basis on which we will conduct I encourage you to call your legisla- our business on the floor of the House? f tor and tell him, ‘‘Pass this middle I hope not. class tax cut, and do it today.’’ The SPEAKER pro tempore. The gen- THE RUPERT MURDOCH TAX tleman may not be interrupted. The f BREAK gentleman from Texas may proceed. (Mr. DEUTSCH asked and was given Mr. ARCHER. Mr. Speaker, the gen- FEDERAL WORKERS THREATENED permission to address the House for 1 tleman has totally distorted what he WITH TAX INCREASES TO GIVE minute, and to revise and extend his spoke of. He should go to the Democrat TAX CUTS TO OTHERS remarks.) Senator from Illinois, Senator CAROL (Mr. MORAN asked and was given Mr. DEUTSCH. Mr. Speaker, this MOSELEY-BRAUN, and ask her why she permission to address the House for 1 House passed legislation that provided insisted and why the Senate insisted, minute, and to revise and extend his for a $63 million gift to Rupert in order to be able to get this con- remarks.) Murdoch. It was done in the most slea- ference report out, on this provision April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4187 being included. There was a real need minute and to revise and extend his re- Mr. WATT of North Carolina. Mr. for expedition to be able to give the marks.) Speaker, today the House is scheduled self-employed taxpayers of this coun- Mr. FORBES. Mr. Speaker, I rise to pass the crown jewel of the Repub- try the opportunity to deduct their today in full support of the Tax Fair- lican’s serve-the-rich contract scam. health care benefits on insurance be- ness and Deficit Reduction Act. Over The American public needs to under- fore April 15, and our side did every- the past 4 years, Americans have been stand how the Republican serve-the- thing we could to expedite the ability hit with two of the largest tax in- rich scam game is played. for that to occur. The Senate insisted creases in modern memory. While Start with the number, $11,266. That on including such—— home mortgage rates have continued happens to be the average amount peo- Mr. DEUTSCH. Regular order, Mr. to rise, the cost to Long Island and my ple who make over $200,000 a year will Speaker. What about rules? Mr. SOLO- area has continued to rise, Washington save in taxes each year under the Re- MON, what about 1-minutes? agencies and departments have enjoyed publican’s tax plan. That also happens The SPEAKER pro tempore. The gen- double digit increases in their spending to be the approximate cost of leasing a tleman from Florida is out of order. budgets, helped along by over $300 bil- brand new foreign-made Mercedes Benz Mr. DEUTSCH. What about 1-min- lion in new taxes over the last 4 years automobile. It also happens to be the utes, Mr. SOLOMON? I would ask for on hard working American families. amount it would cost to serve 6,294 unanimous consent that the gentleman Today we begin the process to re- school lunches to poor school kids who be able to conclude and that I have 1 verse what has been a de facto policy in otherwise go hungry. minute to respond. Washington of punishing families. We So you make the choice: a brand new The SPEAKER pro tempore. The gen- will give $190 billion back to the Amer- foreign-made Mercedes Benz for the tleman from Florida will suspend. ican people for their own tax relief. rich, or 6,294 school lunches for the There will be regular order. One important element of this tax re- U.S. poor. And we wonder why our chil- The Chair recognizes the gentle- lief bill is a provision to help along the dren are hungry? We wonder why our woman from New York [Ms. job creators, the small business men dollar is valueless? Get real, Congress. VELA´ ZQUEZ]. For what purpose does the and women of this country who are cre- Let us not play the Republican serve- gentlewoman rise? ating the jobs. On eastern Long Island the-rich scam game. small businesses are the heart of our f local economy, and across America. It f AN AMERICAN DREAM RESTORA- is time that Washington understood LET FAMILIES SPEND MONEY, TION ACT FOR THE WEALTHY and that my colleagues on the other side understood that the American peo- RATHER THAN GOVERNMENT (Ms. VELA´ ZQUEZ asked and was ple need tax relief. (Mr. DREIER asked and was given given permission to address the House permission to address the House for 1 for 1 minute, and to revise and extend f minute and to revise and extend his re- her remarks.) THE FAMILY TAX-BREAK ACT marks.) Ms. VELA´ ZQUEZ. Mr. Speaker, this (Mr. TUCKER asked and was given Mr. DREIER. Mr. Speaker, fascinat- week the American people see the Con- permission to address the House for 1 ing figures we have been hearing from tract With America for what it really minute and to revise and extend his re- our colleagues from the other side of is, that the centerpiece of the Repub- marks.) the aisle about Mercedes Benzes and lican agenda, the so-called American Mr. TUCKER. Step right up. Step school lunches. Let us counter it just a Dream Restoration Act, is nothing but right up for the GOP’s famous dis- little. A message for America’s fami- a massive tax giveaway to the wealthy. appearing act. Yes, the circus has come lies: When the big-government party b 1215 to town. Deficit reduction, now you see warns you how bad off you will be if it, poof, now you do not. Last Friday, the Wall Street Journal you get to keep your money rather Yes, Republicans want to cut taxes, than sending it to Washington, DC, reported that we give $228 billion a but it does not take a rocket scientist year in tax breaks and subsidies to hide your wallet. to know that they cannot cut taxes We have heard a lot about student large corporations. The rest of the $700 billion and at the same time re- country gets crumbs, and then picks up loans lately. Let us look at the real im- duce the deficit. pact of spending money back to fami- the tab. This slight-of-hand tax bill is not the This legislation is really an Amer- lies rather than funding more govern- deficit reduction that the voters have ment. ican dream denial act. In order to fi- demanded and that the Republicans in nance the tax proposals, the Repub- If a family takes the $500 per child their Contract With America have tax credit that we offer today and puts licans will deny the Republican dream promised. The Republicans’ proposed to the millions of students that need fi- it in a tax-free American Dream sav- tax cut will explode the deficit at a ings account that we will offer today, nancial aid to get a college education. time when deficit reduction is what is Elimination of the Stafford loan pro- they will have $14,766 tax free for each needed in this country most. This $700 child after 18 years. Now, if in return gram will deny 4.5 million low- and billion tax cut will be a neat trick all middle-income students college aid; the smaller government no longer sub- right. It will take money out of the sidized interest on college loans, the ending Perkins loans cuts out another hands of the poor and give it into the 740,000 students. Seven hundred and end of the world according to big-gov- hands of the very, very rich. ernment liberals, the average loan fifty thousand more college kids will Mr. Speaker, as Yogi Berra once said, lose their work-study jobs. would cost $21 more per month over the ‘‘It is deja vu all over again.’’ The same life of a student loan. That is $2,520. These are the cuts that the Repub- trickle-down theory that they used in licans will demand in order to finance Our answer to failed big-government the 1980’s is coming back again. It is liberalism is to give the people the billions of dollars of tax breaks for the the same trickle-down that quadrupled rich. Almost half of this tax giveaway chance to keep $14,766 of their own the deficit in the first place. In this money. They can fully replace Govern- goes to the wealthiest 10 percent of the sick, sad three-ring circus that they country. This is the Republican con- ment help with college and still have call the Republican GOP Party, we over $12,000 left. tract. What is there to celebrate? know that the elephants do not forget, Please, Mr. Speaker, do not forget to but neither do the American taxpayers. f include corporate welfare reform in f your next 100 days. EDUCATION IS THE GATEWAY TO f THE SERVE-THE-RICH SCAM GAME EVERYTHING (Mr. WATT of North Carolina asked (Ms. ESHOO asked and was given per- VOTE FOR TAX RELIEF and was given permission to address mission to address the House for 1 (Mr. FORBES asked and was given the House for 1 minute and to revise minute and to revise and extend her re- permission to address the House for 1 and extend his remarks.) marks.) H 4188 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Ms. ESHOO. Mr. Speaker, last week I minute and to revise and extend his re- native minimum tax for big corpora- was privileged to participate in an ex- marks.) tions. traordinary field hearing at the Uni- Mr. POMEROY. Mr. Speaker, the We put this provision in 1986 so that versity of San Francisco on Republican Committee on Rules has quite possibly the big corporations will have to pay plans to dismantle student financial wiped out the last chance to get a some taxes. The American people burn aid programs. The testimony we heard meaningful deduction for those mil- when they work hard, pay five, six, from students, parents, and college lions of Americans struggling every seven thousand dollars in taxes, and leaders put a human face on the disas- month to pay their own health insur- General Electric and Mobil and Phil- ter we face if this budget and debt ance. I offered an amendment which lips Petroleum pay none. buster passes. would have allowed 80 percent of the Well, for 6 years that has not hap- I listened with growing anger and premium to be deducted and would pened. They have had to pay 25 percent concern as officials from Stanford Uni- have paid for it by limiting the child of their income as taxes, and now the versity, University of California, and tax credit in the Republican bill to Republican majority wants to repeal it. U.S.F. showed in detail how the pro- families earning up to $80,000. If we Can you believe it? They are saying to posed cuts would devastate middle- would have foregone this tax credit for the average American it is okay to go class families and result in smaller, families earning 6-figure incomes, up back to the old days when Unocal and more elitist college populations. to $250,000, we could have fully funded Phillips Petroleum and Mobil and Ford We heard the moving testimony of this vital deduction. and Chrysler paid less taxes than you. students, Michael Rodriguez, Ronelle For me, it is a matter of priorities. I Shame on them, shame on them, shame Baribaldi, Ameer Loggins, and Mary think it is much more important for on them. Wu. All are hard working and are mak- Congress to help families afford the ing enormous sacrifices everyday be- coverage they need to get their chil- f cause they have a thirst for education. dren health insurance than to give this b 1230 They all underscored that student tax break to themselves and other fam- loans are investments, not handouts. ilies earning in the 6-figure range. It IN SUPPORT OF THE TAX FAIR- They are smart investments in our Na- underscores what this Republican tax NESS AND DEFICIT REDUCTION tion’s future. bill is all about: Helping the rich, and ACT OF 1995 I urge my colleagues to reject this sticking it to middle-income working (Mr. RAMSTAD asked and was given budget busting tax cut proposal. Edu- Americans. permission to address the House for 1 cation is the gateway to everything in f minute and to revise and extend his re- this Nation. Let us not shortcut our marks.) students or our Nation’s future. WHAT IS GOOD FOR TODAY’S DEMOCRATS Mr. RAMSTAD. Mr. Speaker, I rise in f strong support of the Tax Fairness and (Mr. HOKE asked and was given per- Deficit Reduction Act of 1995. SENIOR AMERICANS: AMERICA’S mission to address the House for 1 Our job-creating tax cuts enhance MOST PRECIOUS RESOURCE minute and to revise and extend his re- the progressivity of the Tax Code. Mid- (Mr. HASTERT asked and was given marks.) dle-income taxpayers will overwhelm- permission to address the House for 1 Mr. HOKE. Mr. Speaker, I want you ingly benefit directly from the capital minute and to revise and extend his re- to listen carefully to the following gains tax cut, as the vast majority of marks.) quote and tell me what shameless, un- taxpayers claiming capital gains are Mr. HASTERT. Mr. Speaker, as we repentant, unreconstructed, trickle- middle income know, the American family is over- down, supply-sider said it: ‘‘Tax rates In fact, 70 percent of all taxpayers re- taxed. But our families are not limited are too high today and tax revenue is porting capital gains, in a recent tax to just young newlyweds or those with too low. The soundest way to raise the year, had incomes of less than $50,000. kids in college. Our families include revenues in the long run is to cut the By comparison, 5 percent of tax re- our parents and grandparents. And just rates now.’’ turns with capital gains were from tax- as high taxes are antijobs and Jack Kemp? No. Ronald Reagan? payers with annual incomes between antifamily, they are antiseniors. Nope. DICK ARMEY? Close, no cigar. Ac- $100,000 and $200,000. And, fully three- Here are the facts: tually, this wild-eyed supply-sider was quarters of the value of all capital Senior citizens with an average in- none other than John Fitzgerald Ken- gains went to taxpayers earning less come face the highest marginal tax nedy. He understood what the lim- than $100,000. rates in the country In fact, for seniors ousine liberals in today’s Democratic Most importantly, capital gains tax 40- to 80-percent tax rates are not un- Party do not: Tax cuts are good for the cuts means more jobs for the American common; economy. people. One leading economist testified A senior working at a job that pays That is why the tax bill that we are in the Ways and Means Committee that $5 an hour will only net $2.20 an hour considering today is so important. It 285,000 jobs a year—or about 1.4 million after he or she works even 1 hour past will not only restore fairness to our over the 5 year period—will be gained. the current $11,280 earnings limit; and Tax Code, but it will also promote sav- The same economist showed that A senior who earns juat $1 over the ings and investment, just the kind of every $1 billion reduction in annual earnings limit annually will face an ef- activities that our economy needs. It taxes on capital income will lead to a fective marginal tax rate of 56 percent. was good enough for Jack Kennedy, $25 billion increase in the Nation’s out- Mr. Speaker, we need to restore tax then why is it not good enough for to- put of goods and services. fairness to all families, including sen- day’s Democrats? Why? Why? Capital gains relief will facilitate the growth iors. Why should the American dream f of new business and job formation, improve disappear when someone turns 65? Why long-term productivity and make the United should someone be discouraged from ALTERNATE MINIMUM TAX TO BE States more competitive. working just when they can offer years REPEALED Vote for job growth, lower capital of experience and wisdom? By raising (Mr. SCHUMER asked and was given costs, increased productivity and com- the earnings limit to $30,000 we will be permission to address the House for 1 petitiveness. raising the hopes and futures of one of minute and to revise and extend his re- Vote for H.R. 1327. our Nation’s most precious resources, marks.) our senior Americans. Mr. SCHUMER. Mr. Speaker, let me f f just say there is a little hidden dirty secret in the Republican tax bill. It was TAXING FEDERAL WORKERS HURTING MIDDLE-INCOME not in the contract. you will find none (Mr. WYNN asked and was given per- AMERICANS of the Republicans come up and talk mission to address the House for 1 (Mr. POMEROY asked and was given about it. But it is the worst part of minute and to revise and extend his re- permission to address the House for 1 their whole bill. They repeal the alter- marks.) April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4189 Mr. WYNN. Mr. Speaker, I am con- STUDENT LOAN PROGRAMS THE NATIONAL TAXPAYERS UNION fused. I thought the Republicans were (Mrs. CLAYTON asked and was given (Mr. COLEMAN asked and was given trying to cut taxes. So why are they permission to address the House for 1 permission to address the House for 1 raising taxes, raising taxes on 2 million minute and to revise and extend her re- minute and to revise and extend his re- Federal employees? To finance their marks.) marks.) tax bill they have to raise $12 billion. Mrs. CLAYTON. Mr. Speaker, we Mr. COLEMAN. Mr. Speaker, I only So what do they do? They ask Federal really are about fairness here. I would wanted to highlight an issue that was employees to increase their contribu- suggest to our former speaker that we raised by the gentleman from New tion for their retirement program by sometimes want to see that fairness go York [Mr. SOLOMON]. The National 2.5 percent. both ways. Taxpayers Union, I think it was, that What does that mean? It means that Mr. Speaker, under the fictitious he cited, put into the RECORD. for the average Federal employee mak- banner of a fair tax bill, there is a re- I would hope that everyone would un- ing about $30,000, it is a tax of $750 a lentless and unswerving drive that has derstand that that organization does year. Why? been launched by the Republican party not have a whole lot of credibility The program is not insolvent. The against the average working American. when it comes to ranking Members, be- program is not overly generous. People This drive is designed to give tax re- cause what they did when the Senate in the private sector do not pay any- lief to the wealthy Americans who earn was in control of the Republicans a few thing toward their retirement pro- more than $200,000 and more. It is a years back, they had a different cri- grams. crusade that is oblivious to the harm teria for their votes on appropriations So it works out like this: In order to that is caused in its wake. They plan to bills than they did for the Democrats over on the House side. get a $500-per-child tax credit, Federal give $277 billion in spending cuts. The And I just wanted everyone to be employees, whether they have a child bulk of these spending cuts will come aware that that is hardly the criteria or not, have to pay a tax of $750. It does from reducing discretionary spending we ought to be or a standard we ought not make sense. and the welfare reform, according to to be utilizing. They pick and choose Moreover, today’s Washington Post the gentleman from Ohio [Mr. KASICH]. the bad votes such as, did you vote for points out that fully 50 percent of the They also plan $190 billion in tax cuts, the interior appropriations bill, yes or tax benefits to go to the top 10 percent the bulk of which will go to the richest of Americans, not the Ma and Pa stores no? If you did, boy, that is a bad vote. citizens in America. You are going to find, if they used and not your average American citizen, In other words, Mr. Speaker, what and fully 10 percent of these so-called the same standards on us, as Demo- you have to do is add the cuts for poor crats when we were in charge and had tax benefits for the middle class go to people and the average working Amer- the top 1 percent of wage earners in to pass legislation and were governing, ican and give those tax cuts to the as they will use on you, I think you this country. There is something wrong richest persons in America. will find that you have a whole lot of with this tax bill. The difference in this equation is a real bad votes with that organization. On the subject of Federal employees, loss to low- and middle-income Ameri- We will see if they are going to have before my Republican colleagues vote, cans. To mollify people with money, any credibility left at the end of this I urge them to check to see the number they are causing pain to those who session in ranking you poorly because of Federal employees in their district, have very little money who are the you vote for an appropriations bill. because you are raising taxes on a lot working Americans in society. of very good, average American citi- f f zens. TAX CUTS AND THE NATIONAL DEBT f TIME FOR THE PEOPLE BACK HOME (Mr. TAYLOR of Mississippi asked THE BIG SPENDERS and was given permission to address (Mr. HANCOCK asked and was given the House for 1 minute.) (Mr. SOLOMON asked and was given permission to address the House for 1 permission to address the House for 1 Mr. TAYLOR of Mississippi. Mr. minute and to revise and extend his re- Speaker, in response to my good friend, minute.) marks.) Mr. SOLOMON. Mr. Speaker, I have the gentleman from Ohio [Mr. HOKE], Mr. HANCOCK. Mr. Speaker, this ar- who quoted John Kennedy, I would like been sitting here patiently waiting to gument that we are into is getting to take up the rule on the tax cut pack- to remind him, I reminded him pri- where if it was not so serious, it would vately, I will remind him publicly, at age. I have been looking through the be amusing. We are talking about vot- the time John Kennedy said that, the list of speakers from the Democrat side ing to reduce the deficit. We are talk- Nation’s annual operating deficit was of the aisle. They all talk about how ing about concentrating on the budget $10 billion a year, Now it is $200 billion they cannot vote for this tax cut be- of the Federal Government. a year. At the time that John Kennedy cause they want to reduce the deficit. Do you not think it is time that we said that, our Nation’s total debt was I am just going through a list from started talking about the people back about $500 billion. Today it is almost $5 the National Taxpayers Union from home and doing something to help trillion. this past year. Almost every one of them balance their budgets? Who do we Now, we have a very strange situa- these speakers appears on this list as represent up here? The U.S. Govern- tion with the tax cutters who, as my the biggest spenders in the Congress. ment or the people that elected us? good friend, the gentleman from New Not only do they appear on this year’s I am going to concentrate my vote on York [Mr. SOLOMON], pointed out, list, but last year’s list and the year doing everything I can to give the peo- should be for deficit reduction. I am before that and the year before that. ple tax breaks back home and reduce one of those people, Mr. SOLOMON. I am Where is the credibility for those the overall size of the Federal Govern- for deficit reduction. that say they want to stand up here ment rather than merely talking So I am going to say that whatever and vote to reduce the deficit? about, we cannot have tax breaks until we save go toward the deficit, because I am going to make a challenge to we stop the spending. it does not make any sense at all for you, every one of you that have stood We tried that once. We are going to this Nation to borrow $200 billion this up here and spoken against this tax cut get the tax breaks, and we are going to year and pay the interest on it for the because you want to lower the deficit. stop the spending. And we are going to next 10 years just to give people a very We will have a reconciliation bill com- start representing the people that miniscule break today and to give the ing to the floor. I kept a careful list, elected us instead of saying, we are the wealthiest Americans, whose maxi- and I am going to ask every one of you Government. We are not the Govern- mum tax rate went from 66 percent in to vote for balancing the budget, which ment. The people sent us up here to 1981 down to about 35 percent today, an will come later this year. Good luck. represent them. even bigger tax break. H 4190 CONGRESSIONAL RECORD — HOUSE April 5, 1995 AFTER THE ACRIMONY IS OVER I would simply say to you that there negotiations. However, if Republicans (Mrs. MEEK of Florida asked and was are some things worth discussing: the want to act on behalf of working mid- given permission to address the House adoption credit, the elderly care credit, dle-class families in this Nation, and for 1 minute and to revise and extend the spousal IRA’s are worth talking on behalf of small businesses, and her remarks.) about, the small business credits, the against a multimillion-dollar break for Mrs. MEEK of Florida. Mr. Speaker, I home office deduction. Rupert Murdoch and his taxes, they would like to say to the American pub- Why can we not take the gloves off, just need to ask the President of the lic, when all of this acrimony that you come together and talk about a rea- United States ‘‘Pull the bill back, sup- hear on the floor is over, let me tell soned response to the America’s defi- port the concurrent resolution, and do you what is going to happen. You are cit? Why are we fighting each other away with this outrageous billionaire going to end up with an enormous ache and counting votes so we can have a boondoggle.’’ in your heart and also in your pocket- crown jewel; which really is nothing f book. more than costume jewelry held to- Today the Republicans will bring to gether with paste. Why do we not stand SUPPORT THE TAX RELIEF BILL the House floor a bill that cuts pro- for the American people, stop cutting, (Mr. HUTCHINSON asked and was grams that serve average Americans to let us stand for what is right and make given permission to address the House pay for huge tax cuts. Do you know sure we reduce the deficit so that for 1 minute and to revise and extend what the message is? The message is young people will have a future. his remarks.) that the spending policies here center f Mr. HUTCHINSON. Mr. Speaker, I around sharp cuts in programs that b 1245 rise today to strongly support the rule serve average Americans like you, no- and to strongly support the tax relief tably education, and to pay for huge THE TRUTH ABOUT TAX CUTS bill that the House will be debating. tax cuts for the wealthiest Americans. (Mr. SMITH of Michigan asked and This, I think, is the most critical fea- Think about where you come in. The was given permission to address the ture of the Contract With America, and President and the Democrats want to House for 1 minute and to revise and there is nothing more important in target tax relief to middle income extend his remarks.) this tax relief provision than what we Americans. The Republicans’ bill will Mr. SMITH of Michigan. Mr. Speak- offer the American family. We have give 20 percent of its benefits to the top er, Gilbert and Sullivan once said in told the American family time and 1 percent of American families. one of their operas ‘‘Things are seldom time again ‘‘Your time will come.’’ Think about it, when the acrimony is what they seem.’’ We have been talking Every study, every evaluation of the over, think about where you stand. All a lot about the protests, and that American family says we need to have told, the tax cuts that the Republicans maybe the tax cuts are unfairly divided a tax credit for children, and yet it has would bring today would give away between rich and poor. been delayed and delayed and delayed. $31.3 billion in tax breaks. I think it is important that we re- Over 70 percent of the benefits of this Once again, the Republicans are mind ourselves what is in this legisla- tax cut will go to families making less looking to the past for answers to the tion. In this legislation what we are than $75,000 a year who pay only 45.6 future. going to be voting on is $100 billion of percent of all the income taxes. A mere 121⁄2 percent will go to Americans who f spending cuts. That is $23 billion out of discarding needless bureaucracy, $24 earn over $75,000, and they pay 54.4 per- [Ms. NORTON addressed the House. billion cut in the area of eliminating cent of the income tax burden. Her remarks will appear hereafter in duplication and waste, $10,900,000,000 This is an eminently fair provision. the Extensions of Remarks.] cut from foreign aid, $7,500,000,000 at- It is progressive. The contract’s $500 f tacking corporate welfare, $22 billion per child tax credit treats all of Ameri- in setting empowerment, and an $11 ca’s children equally. That is the way WHAT IS THE RUSH? billion spending cut. they should be treated. We need to pass (Ms. JACKSON-LEE asked and was Also what this bill does, it says none the rule today and we then need to give given permission to address the House of these tax reductions take effect relief to the American family. for 1 minute and to revise and extend until we cut an estimated another $400 f her remarks.) billion in spending and get on that Ms. JACKSON-LEE. Mr. Speaker, glide path toward a balanced budget, THE AMERICAN PEOPLE CAN HAN- what is the rush? which is our goal. DLE THE TRUTH ABOUT TAX RE- DUCTIONS I stood on the House floor last f evening and asked the same question (Mr. KENNEDY of Massachusetts and, unfortunately, have gotten no an- CHARGES RELATING TO TAX asked and was given permission to ad- swer. We come today, on April 5, 1995, BREAK FOR RUPERT MURDOCH dress the House for 1 minute and to re- to ask the American people to accept ARE LUDICROUS vise and extend his remarks.) what some would call a tax cut. (Ms. DELAURO asked and was given Mr. KENNEDY of Massachusetts. Mr. I would simply share with you that permission to address the House for 1 Speaker, I want to stand today in oppo- the tax cut goes to those earning minute and to revise and extend her re- sition to the rule that has been pro- $200,000 and over, 58.1 percent of the cut marks.) posed. First and foremost, this is a rule to those earning that amount. This Ms. DELAURO. Mr. Speaker, for the that I went before the chairman of the morning we had a phony vote on the chairman of the Committee on Ways committee and he agreed that we journal, not because we needed to vote and Means to come up here a few min- ought to be including some additional on it, ladies and gentlemen, but simply utes ago and to suggest that a junior services for adoptive parents that are so the Republicans could count the Senator in the minority party in the in dire need of assistance to be able to votes. What is the rush? other body is responsible for a multi- adopt children in this country. We have This tax cut is not going to impact million dollar tax break for Rupert got over 3 million abused children, we citizens filing their 1994 taxes. And ev- Murdoch is ludicrous. Democrats have have 450,000 kids in foster care, and we erywhere you go across this Nation, not been able to win one vote in com- desperately need to provide adoption the statistics say that the American mittee in this body and in the other services to those children. people want us to cut the deficit, not body since January. Most importantly, I oppose this rule cut taxes. Newspaper accounts report that the because I do not think that this is a pe- This is supposed to be the crown Republicans supported the tax break riod of time that we ought to be talk- jewel. We have editorials saying ‘‘it is after learning that Murdoch was the ing about tax cuts for the American more paste than jewel.’’ Then we have beneficiary of the legislation, and after people. The fact of the matter is we got those saying ‘‘Congress fiddles with consulting the Speaker of this House, need to bring the deficit of this coun- tax code while deficit burns.’’ according to six sources involved in the try down. We ought not to be at this April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4191 time pandering to the American peo- Mr. Speaker, it was wrong to repeal the land paid no income taxes, and we ple, we ought to be tough. The Amer- the interest deduction on student loans are about to turn back the clock. This ican people are tough. They can handle in the 1986 tax reform bill, and it is bill repeals a modest income tax on the a tough choice. worse that the Republicans have re- largest, most profitable corporations in The fact of the matter is that we are scinded the amount of the money for this country, so they can go back to standing there telling the American subsidizing those student loans that paying zero. people ‘‘We can have tax deductions, allow them to get an education, and People who earn over $200,000 a year, tax reductions, at the same time that not have the interest on those student they can get capital gains at 14 per- we are going to be facing $200 billion a loans accrue until after they graduate. cent. That is half of the tax bracket for year deficits.’’ It is not right. The peo- That is not right. middle income Americans. Is it not a ple can handle it, and we ought to say Members know that the cost of high- great country when people, Members of the truth. er education is going up, and we should Congress earning $133,000 a year, can f not make it more difficult for students. vote themselves a wonderful juicy tax f break, because they are in a big enough REPEAL THE ONEROUS TAX IN- tax bracket to take advantage of it? CREASE ON SENIOR CITIZENS’ THE TAX BILL WILL STRENGTHEN When the dust settles, average Amer- INCOMES AMERICAN FAMILIES icans are going to get it stuck to them (Mr. COX of California asked and was (Mr. FOX of Pennsylvania asked and again, and the rich are going to be given permission to address the House was given permission to address the drinking champagne and eating caviar. for 1 minute and to revise and extend House for 1 minute and to revise and f his remarks.) extend his remarks.) Mr. COX of California. Mr. Speaker, I Mr. FOX of Pennsylvania. Mr. Speak- REPUBLICANS READY TO hope it is not considered pandering to er, the fact of the matter is that Amer- INTRODUCE TAX LEGISLATION the American people, as the previous ican people are going to have with this (Mr. GOSS asked and was given per- speaker suggested, to permit our senior Contract With America $180,000,000,000 mission to address the House for 1 citizens who are receiving Social Secu- in deficit reduction, $190,000,000,000 in minute and to revise and extend his re- rity benefits to keep something of what spending cuts, and Mr. Speaker, the marks.) they earn. tax reduction bill is the third part that Mr. GOSS. Mr. Speaker, responding In 1993, in the context of the largest the American people are waiting for. to the previous speaker, I would just tax increase in American history, The Republican majority is offering a like to announce that I do not believe President and the then Democrat Con- $500-per-child tax credit. We believe anybody on our side asked him to take gress imposed a 70-percent income tax one of the most important things Gov- a 1-minute, or anybody else over there rate increase on senior citizens who ernment can do for American families to take a 1-minute. We are ready to go. work. An important part of the bill is to take less of their earnings. Repub- We are ready do the Nation’s business that we are now bringing to the floor is licans recognize the profoundly posi- on the rule. going to roll that back. tive impact stronger families can have The minute the 1-minutes are over, It was criticized as a tax increase on on our Nation. we will be very happy to proceed. seniors who are rich, on rich retirees, We believe the basic family unit can Mr. SOLOMON. Mr. Speaker, will the on rich Social Security beneficiaries. be stronger if it is able to keep more of gentleman yield? In fact, the 70-percent income tax rate its own earnings and make its own de- Mr. GOSS. I am happy to yield to the increase on Social Security benefits cisions about how those earnings gentleman from New York. started for senior citizens who work should be spent. Mr. SOLOMON. Mr. Speaker, we are and who make as little as $30,000 a We also respect the contributions of so excited to bring up this last of the year. They are not, in my book, the our senior citizens and their right to contract promises. Let’s go. rich. I do not think they are anywhere continue being a productive partner in Mr. GOSS. Reclaiming my time, Mr. else in America. I hope all of us will building a better America. That is why Speaker, I would point out that the take this opportunity to repeal that this week Republicans will remove the sooner we start, the better prospects onerous tax increase. tax burden placed on Social Security are, the sooner we will get out. f earnings last year by the Democrats. Finally, Americans believe in the fu- f THE TAX BILL AND CUTS IN PRO- ture. We know America’s future de- VISIONS FOR EDUCATION BENE- pends on America’s being able to save THE $63,000 TAX GIVEAWAY TO FITS more and invest more in new jobs and RUPERT MURDOCH (Mr. KENNEDY of Rhode Island new productivity. That is why we will (Mr. GIBBONS asked and was given asked and was given permission to ad- reduce the capital gains tax cut, which permission to address the House for 1 dress the House for 1 minute and to re- will help all Americans. minute and to revise and extend his re- vise and extend his remarks.) Seventy-five percent of the tax cuts marks.) Mr. KENNEDY of Rhode Island. Mr. will benefit those with incomes less Mr. GIBBONS. Mr. Speaker, I yield Speaker, the question before us today than $100,000. Please vote for the bill. to the gentleman from Florida. is what kind of tax relief are we going f Mr. DEUTSCH. Mr. Speaker, I have to give the American people. The dif- the opportunity now to respond to ference could not be clearer. The Re- A BETTER CAPITAL GAINS DEAL some of the charges that the gen- publicans’ tax break would benefit 76 FOR THE WEALTHY tleman from Texas [Mr. ARCHER], percent of those families earning (Mr. DEFAZIO asked and was given chairman of the Committee on Ways $100,000 or more. If you look at the permission to address the House for 1 and Means, raised previously. Citizens for Tax Justice, they say 71 minute and to revise and extend his re- It is just absolutely absurd. There is percent of the total capital gains tax marks.) not one person in this building, in this breaks go to those making in excess of Mr. DEFAZIO. Mr. Speaker, the rea- district, in this country that believes $200,000. son we are still doing 1-minutes is be- Senator BRAUN on her own was able to Who pays the bill? It is young people cause the Republican leadership is provide the obscene, sleazy $63 million who pay the bill. It is those who want twisting the arms of their caucus to gift to Rupert Murdoch. It just defies to go out and get those well-paying try to get the votes for this tax give- credibility. jobs that the Republicans talk about. away, the same arms that they did not There is an expression that I have However, how can we expect them to twist last week when term limits was used, and I think everyone in this get those well-paying jobs if they can- on the floor. country has heard previously. It is look not first afford the higher education There was a shameful time in this like a duck and it smells like a duck that they are going to need to get if country in the mid-1980’s when the and it walks like a duck and it talks they are to land those jobs? largest, most profitable corporations in like a duck, it is probably a duck. To H 4192 CONGRESSIONAL RECORD — HOUSE April 5, 1995 think that the Speaker and the chair- measures originate in the House of consisting of the text of H.R. 1327, modified man of the Committee on Ways and Representatives. by the amendment printed in part 1 of the Means did not know about this special The SPEAKER pro tempore. The gen- report of the Committee on rules accom- deal is absurd. tleman’s notice will appear in the panying this resolution. That amendment in the nature of a substitute shall be considered RECORD. I am about to offer once again a con- as read. All points of order against that current resolution which would take f amendment in the nature of a substitute are out that provision. The Speaker of this TAX CUTS AND DEFICIT REDUC- waived. No amendment to that amendment Chamber has publicly stated that he in the nature of a substitute shall be in order supports taking it out. I have asked TION FOR THE FEDERAL GOV- except the further amendment in the nature the gentleman from Texas [Mr. ERNMENT of a substitute printed in part 2 of the report, ARMEY]. I have followed the rules to (Mr. MARTINI asked and was given which may be offered only by Representative this Chamber to get unanimous con- permission to address the House for 1 Gephardt of Missouri or his designee, shall sent. minute and to revise and extend his re- be considered as read, shall be debatable for marks.) one hour equally divided and controlled by Mr. Speaker, I ask unanimous con- the proponent and an opponent, and shall not sent to take up Concurrent Resolution Mr. MARTINI. Mr. Speaker, in sit- be subject to amendment. All points of order 55, which would take out the tax provi- ting here this morning and listening to against the further amendment in the nature sion provided for Mr. Murdoch. this debate, it reminds me of a debate of a substitute are waived. At the conclusion The SPEAKER pro tempore. Under less than 2 years ago in my home State of consideration of the bill for amendment the Chair’s guidelines, the gentleman of New Jersey. At that time, when the the Committee shall rise and report the bill is not recognized for that purpose. The then-newly elected Governor Whitman to the House with such amendment as may gentleman’s time as expired. spoke about tax cuts and cutting have been adopted. Any Member may de- mand a separate vote in the House on any f spending at the same time, then, as now, the same naysayers rose and com- amendment adopted in the Committee of the NOTICE OF INTENT TO OFFER plained and said it could not be done. Whole to the bill or to the amendment in the nature of a substitute made in order as origi- RESOLUTION REGARDING CON- I am pleased to report today, Mr. nal text. The previous question shall be con- STITUTIONALITY OF TARGETED Speaker, that less than 2 years into her sidered as ordered on the bill and any amend- TAX BENEFIT term, she has accomplished two-thirds ment thereto to final passage without inter- Mr. DEUTSCH. Mr. Speaker, under of her tax cut, with sufficient deficit vening motion except one motion to recom- the rule IX, I rise to serve notice that reduction, and what we have witnessed mit with or without instructions. I intend to offer the following resolu- in New Jersey is an increase in reve- b 1300 tion and read it into the RECORD. nues, jobs, and a healthy economy. The SPEAKER pro tempore. The gen- I am confident that with the passage The SPEAKER pro tempore (Mr. tleman is recognized. of today’s bill and rule, we will accom- GOODLATTE). The gentleman from New Mr. DEUTSCH. Resolution: To pre- plish the same things here for the Fed- York [Mr. SOLOMON] is recognized for 1 serve the constitutional role of the eral Government, and with the linkage hour. House of Representatives to originate and language that exists today in this Mr. SOLOMON. Mr. Speaker, for the revenue measures. tax bill, the linkage which assures that purpose of debate only, I yield the cus- Whereas, rule IX of the Rules of the we will have sufficient deficit reduc- tomary 30 minutes to the gentleman House of Representatives provides that tion with tax relief, I am even more from Massachusetts [Mr. MOAKLEY], questions of privileges shall arise confident that we can accomplish that pending which I yield myself such time whenever the rights of the House col- goal. as I may consume. During consider- lectively are affected; f ation of this resolution, all time yield- Whereas, under the precedents, cus- PROVIDING FOR CONSIDERATION ed is for the purpose of debate only. toms, and traditions of the House, pur- OF H.R. 1215, CONTRACT WITH (Mr. SOLOMON asked and was given suant to rule IX, a question of privilege AMERICA TAX RELIEF ACT OF permission to revise and extend his re- has arisen in cases involving the con- 1995 marks, and include extraneous mate- stitutional prerogatives of the House; rial.) Whereas section 7 of article 1 of the Mr. SOLOMON. Mr. Speaker, by di- Mr. SOLOMON. Mr. Speaker, the res- Constitution require that revenue rection of the Committee on Rules, I olution before us is a rule providing for measures originate in the House of call up House Resolution 128, and ask the consideration of the bill H.R. 1215, Representatives; and for its immediate consideration. which is the Contract With America Whereas the conference report on the The Clerk read the resolution, as fol- Tax Relief Act of 1995. The bill is ap- bill, H.R. 831, contained a targeted tax lows: propriately entitled the Tax Fairness benefit which was not contained in the H. RES. 128 and Deficit Reduction Act of 1995 be- bill as passed by the House of Rep- Resolved, That at any time after the adop- cause it combines the tax relief provi- resentatives and which was not con- tion of this resolution the Speaker may, pur- sions of H.R. 1215 with various spending tained in the amendment of the Sen- suant to clause 1(b) of rule XXIII, declare the reductions from other committees, ate; Now, therefore be it House resolved into the Committee of the both to offset the cost of the tax cuts Whole House on the state of the Union for Resolved, that the Comptroller Gen- consideration of the bill (H.R. 1215) to amend and to begin us on a downward glide eral of the United States shall prepare the Internal Revenue Code of 1986 to path toward a balanced budget. Have and transmit, within 7 days after the strengthen the American family and create we not waited forever for this? date of the adoption of this resolution, jobs. The first reading of the bill shall be dis- The rule provides for a Democrat a report to the House of Representa- pensed with. All points of order against con- substitute printed in part 2 of the tives containing the opinion of the sideration of the bill are waived. General de- Rules Committee report if offered by Comptroller General on whether the bate shall be confined to the bill and the the gentleman from Missouri [Mr. GEP- amendment in the nature of a substitute addition of a targeted tax benefit by HARDT], the minority leader. made in order as original text and shall not the conferees of the conference report exceed four hours, with two hours equally di- Finally, the rule provides for 1 mo- on the bill, H.R. 831 (A bill to amend vided and controlled by the chairman and tion to recommit with or without in- the Internal Revenue Code of 1986 to ranking minority member of the Committee structions. permanently extend the deduction for on Ways and Means and two hours equally Mr. Speaker, this rule represents the the health insurance costs of self-em- divided among and controlled by the chair- final major procedural hurdle to fulfill- ployed individuals, to repeal the provi- man and ranking minority members of the ing our Contract With America and, sion permitting nonrecognition of gain Committee on the Budget and the Commit- oh, what an exciting, successful run on sales and exchanges effectuating tee on Commerce. After general debate the this 100-day contract period has been. bill shall be considered for amendment under policies of the Federal Communica- the five-minute rule. It shall be in order to Did you ever think it would get here? tions Commission, and for other pur- consider as an original bill for the purpose of The bill this rule makes in order is poses) violates the requirement of the amendment under the five-minute rule an certainly an appropriate closing to U.S. Constitution that all revenue amendment in the nature of a substitute that contract. It addresses both the April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4193 need to give tax relief to the American Mr. Speaker, if we deviate, then fur- reconciliation bills. Put aside your ad- people and debt relief to future genera- ther policy options for putting us back ditional individual wish lists. I have tions by locking us into a downward on track will be a part of the subse- done it for now, and I want you to look glide path toward a balanced budget by quent budget resolution and those in at the big picture. This rule and this fiscal year 2002. turn will be translated into real spend- bill takes the fiscally responsible ap- Mr. Speaker, I do not think I have to ing cuts in the reconciliation bill to proach of paying for the tax cuts and prove my credentials as a deficit hawk follow, on which each and every one of putting us on that downward glide path to anyone in this body. I am the only us are going to be forced to vote on, on toward a balanced budget which is so Member of this House, in the last 20 the floor of this House. terribly, terribly important to the fu- years, to actually offer a balanced That is no fig leaf. Perhaps we should ture generations of this country. budget with specifics. But, Mr. Speak- not have Members, running for higher I urge every Member to vote ‘‘yes’’ er, like many of my colleagues, I have office, running around here saying it is. on the rule and to vote ‘‘yes’’ on this expressed concerns about enacting tax Mr. Speaker, anyone who calls this a bill. The American people want it. cuts without first making the nec- fig leaf does not know the difference Mr. Speaker, I include the following essary spending cuts to produce a bal- between a fig leaf and a sledgehammer. for the RECORD: anced budget. That is very, very impor- Well, I do, believe you me. Reconcili- tant to me. I would not be standing ation is a sledgehammer. If you have CORRECTION OF VOTES IN COMMITTEE REPORT here today in support of this rule and ever been here to vote on one, you The Rules Committee’s report, House Re- bill if I did not think that this bill as ought to know, because you are going port 104–100 on H. Res. 128, the rule for the modified by the adoption of the lan- to be responsible to the voters back consideration of H.R. 1215, the ‘‘Contract guage that we are putting into this home whichever way you vote. It With America Tax Relief Act of 1995,’’ con- rule right now—which we will be vot- makes a real impact and it gets real re- tains an erroneously reported rollcall vote ing on in a few minutes—locks us into sults. You all, that are on this big- due to a typographical error during the printing process. The vote was correctly re- that commitment. It does that. Make spender list I have here, always com- ported in the original report filed with the no mistake about it, a vote on this rule plain about it. Clerk. is a vote to balance the budget, and Mr. Speaker, over 40 amendments Below is a correct version of that vote as you better remember that. were filed with the Committee on contained in the Rules Committee report as To those on the other side who claim Rules. Many of those amendments were filed with the House. The amendment num- that this is some kind of a fig leaf, I good amendments that I could individ- ber referred to in the motion is to an amend- would just urge you to first read the ually support. But we cannot rewrite ment filed with the Rules Committee—a legislation. The Upton-Castle-Martini- the Internal Revenue Code on the floor summary of which are contained following Solomon amendment prohibits the tax of this House. We did not do it under a the listing of votes in the committee report. cuts from taking effect until we first Democrat House, and we will not do it RULES COMMITTEE ROLLCALL NO. 122 adopt a budget resolution that projects under a Republican House. Not only do Date: April 4, 1995. a balanced budget by the year 2002. It such amendments affect other provi- Measure: Rule for the consideration of H.R. then—and this is the critical point—re- sions in that code in ways we cannot 1215, Contract With America Tax Relief Act. quires that pursuant to that budget always anticipate, but taken together Motion By: Mr. Moakley. resolution a reconciliation bill must be they can also produce vast new revenue Summary of Motion: Allow a division of enacted into law that keeps that com- drains on the Treasury that we just the question and a separate vote on Titles II mitment with real spending cuts. And cannot afford given our current deficit and V (H.R. 1215), the senior citizen equity that is enacted into law. This is not situation. You all know how serious provisions. Results: Rejected, 4 to 9. some budget resolution that the Com- that is. Vote by Member: Quillen—Nay; Dreier— mittee on Rules can waive the Budget I urge Members on both sides of the Nay; Goss—Nay; Linder—Nay; Pryce—Nay; Act for. If spending cuts are not done, aisle to remain true to our past, our bi- Diaz-Balart—Nay; McInnis—Nay; those tax cuts do not become law. It is partisan practice of modified closed Waldholtz—Nay; Moakley—Yea; Beilenson— just as simple and as real as that. rules when we are dealing with tax and Yea; Frost—Yea; Hall—Yea; Solomon—Nay. THE AMENDMENT PROCESS UNDER SPECIAL RULES REPORTED BY THE RULES COMMITTEE,1 103D CONGRESS VERSUS 104TH CONGRESS [As of April 4, 1995]

103d Congress 104th Congress Rule type Number of rules Percent of total Number of rules Percent of total

Open/Modified-open 2 ...... 46 44 21 75 Modified Closed 3 ...... 49 47 7 25 Closed 4 ...... 9 9 0 0 Totals: ...... 104 100 28 100

1 This table applies only to rules which provide for the original consideration of bills, joint resolutions or budget resolutions and which provide for an amendment process. It does not apply to special rules which only waive points of order against appropriations bills which are already privileged and are considered under an open amendment process under House rules. 2 An open rule is one under which any Member may offer a germane amendment under the five-minute rule. A modified open rule is one under which any Member may offer a germane amendment under the five-minute rule subject only to an overall time limit on the amendment process and/or a requirement that the amendment be preprinted in the Congressional Record. 3 A modified closed rule is one under which the Rules Committee limits the amendments that may be offered only to those amendments designated in the special rule or the Rules Committee report to accompany it, or which preclude amendments to a particular portion of a bill, even though the rest of the bill may be completely open to amendment. 4 A closed rule is one under which no amendments may be offered (other than amendments recommended by the committee in reporting the bill).

SPECIAL RULES REPORTED BY THE RULES COMMITTEE, 104TH CONGRESS [As of April 4, 1995]

H. Res. No. (Date rept.) Rule type Bill No. Subject Disposition of rule

H. Res. 38 (1/18/95) ...... O ...... H.R. 5 ...... Unfunded Mandate Reform ...... A: 350–71 (1/19/95). H. Res. 44 (1/24/95) ...... MC ...... H. Con. Res. 17 ...... Social Security ...... A: 255–172 (1/25/95). H.J. Res. 1 ...... Balanced Budget Amdt ...... H. Res. 51 (1/31/95) ...... O ...... H.R. 101 ...... Land Transfer, Taos Pueblo Indians ...... A: voice vote (2/1/95). H. Res. 52 (1/31/95) ...... O ...... H.R. 400 ...... Land Exchange, Arctic Nat’l. Park and Preserve ...... A: voice vote (2/1/95). H. Res. 53 (1/31/95) ...... O ...... H.R. 440 ...... Land Conveyance, Butte County, Calif ...... A: voice vote (2/1/95). H. Res. 55 (2/1/95) ...... O ...... H.R. 2 ...... Line Item Veto ...... A: voice vote (2/2/95). H. Res. 60 (2/6/95) ...... O ...... H.R. 665 ...... Victim Restitution ...... A: voice vote (2/7/95). H. Res. 61 (2/6/95) ...... O ...... H.R. 666 ...... Exclusionary Rule Reform ...... A: voice vote (2/7/95). H. Res. 63 (2/8/95) ...... MO ...... H.R. 667 ...... Violent Criminal Incarceration ...... A: voice vote (2/9/95). H. Res. 69 (2/9/95) ...... O ...... H.R. 668 ...... Criminal Alien Deportation ...... A: voice vote (2/10/95). H. Res. 79 (2/10/95) ...... MO ...... H.R. 728 ...... Law Enforcement Block Grants ...... A: voice vote (2/10/95). H. Res. 83 (2/13/95) ...... MO ...... H.R. 7 ...... National Security Revitalization ...... PQ: 229–100; A: 227–127 (2/15/95). H. Res. 88 (2/16/95) ...... MC ...... H.R. 831 ...... Health Insurance Deductibility ...... PQ: 230–191; A: 229–188 (2/21/95). H. Res. 91 (2/21/95) ...... O ...... H.R. 830 ...... Paperwork Reduction Act ...... A: voice vote (2/22/95). H. Res. 92 (2/21/95) ...... MC ...... H.R. 889 ...... Defense Supplemental ...... A: 282–144 (2/22/95). H. Res. 93 (2/22/95) ...... MO ...... H.R. 450 ...... Regulatory Transition Act ...... A: 252–175 (2/23/95). H. Res. 96 (2/24/95) ...... MO ...... H.R. 1022 ...... Risk Assessment ...... A: 253–165 (2/27/95). H. Res. 100 (2/27/95) ...... O ...... H.R. 926 ...... Regulatory Reform and Relief Act ...... A: voice vote (2/28/95). H 4194 CONGRESSIONAL RECORD — HOUSE April 5, 1995 SPECIAL RULES REPORTED BY THE RULES COMMITTEE, 104TH CONGRESS—Continued [As of April 4, 1995]

H. Res. No. (Date rept.) Rule type Bill No. Subject Disposition of rule

H. Res. 101 (2/28/95) ...... MO ...... H.R. 925 ...... Private Property Protection Act ...... A: 271–151 (3/1/95). H. Res. 104 (3/3/95) ...... MO ...... H.R. 988 ...... Attorney Accountability Act ...... A: voice vote (3/6/95). H. Res. 103 (3/3/95) ...... MO ...... H.R. 1058 ...... Securities Litigation Reform ...... H. Res. 105 (3/6/95) ...... MO ...... A: 257–155 (3/7/95). H. Res. 108 (3/6/95) ...... Debate ...... H.R. 956 ...... Product Liability Reform ...... A: voice vote (3/8/95). H. Res. 109 (3/8/95) ...... MC ...... PQ: 234–191 A: 247–181 (3/9/95). H. Res. 115 (3/14/95) ...... MO ...... H.R. 1158 ...... Making Emergency Supp. Approps...... A: 242–190 (3/15/95). H. Res. 116 (3/15/95) ...... MC ...... H.J. Res. 73 ...... Term Limits Const. Amdt ...... A: voice vote (3/28/95). H. Res. 117 (3/16/95) ...... Debate ...... H.R. 4 ...... Personal Responsibility Act of 1995 ...... A: voice vote (3/21/95). H. Res. 119 (3/21/95) ...... MC ...... A: 217–211 (3/22/95). H. Res. 125 (4/3/95) ...... O ...... H.R. 1271 ...... Family Privacy Protection Act ...... A: 423–1 (4/4/95). H. Res. 126 (4/3/95) ...... O ...... H.R. 660 ...... Older Persons Housing Act ...... H. Res. 128 (4/4/95) ...... MC ...... H.R. 1215 ...... Contract With America Tax Relief Act of 1995 ...... Codes: O-open rule; MO-modified open rule; MC-modified closed rule; C-closed rule; A-adoption vote; PQ-previous question vote. Source: Notices of Action Taken, Committee on Rules, 104th Congress.

NATIONAL TAXPAYERS UNION—BIG SPENDER Iowa: Sen. Tom Harkin, Rep. Neal Smith. North Carolina: Rep. Evan Clayton, Rep. OF 1993 Kansas: Rep. Dan Glickman. W.G. Hefner, Rep. Stephen L. Neal, Rep. Alabama: Rep. Tom Bevill, Rep. Robert E. Kentucky: Sen. Wendell H. Ford, Rep. Ro- David Price, Rep. Charlie Rose, Rep. Melvin Cramer, Rep. Earl F. Hilliard. mano L. Mazzoli. Watt. Arizona: Rep. Karan English, Rep. Ed Pas- Louisiana: Sen. John B. Breaux, Sen. J. Ohio: Sen. John Glenn, Sen. Howard M. tor. Bennett Johnston, Rep. Cleo Fields, Rep. Metzenbaum, Rep. Douglas Applegate, Rep. Arkansas: Sen. Dale Bumpers, Sen. David William J. Jefferson. Sherrod Brown, Rep. Tony P. Hall, Rep. Tom Pryor, Rep. Ray Thornton. Maine: Sen. George J. Mitchell, Rep. Sawyer, Rep. Louis Stokes, Rep. Ted Thomas H. Andrews. California: Sen. Barbara Boxer, Sen. Strickland. Maryland: Sen. Barbara A. Mikulski, Sen. Dianne Feinstein, Rep. Xavier Becerra, Rep. Oklahoma: Rep. Mike Synar. Paul S. Sarbanes, Rep. Benjamin L. Cardin, Howard L. Berman, Rep. George E. Brown, Oregon: Rep. Elizabeth Furse, Rep. Mike Rep. Steny H. Hoyer, Rep. Kweisi Mfume, Rep. Ronald V. Dellums, Rep. Julian C. Rep. Albert R. Wynn. Kopetski, Rep. Ron Wyden. Dixon, Rep. Don Edwards, Rep. Anna G. Massachusetts: Sen. Edward M. Kennedy, Pennsylvania: Sen. Harris Wofford, Rep. Eshoo, Rep. Sam Farr, Rep. Vic Fazio, Rep. Sen. John Kerry, Rep. Barney Frank, Rep. Lucien E. Blackwell, Rep. Robert A. Borski, Bob Filner, Rep. Dan Hamburg, Rep. Jane Joseph P. Kennedy, Rep. Edward J. Markey, Rep. William J. Coyne, Rep. Thomas M. Fog- Harman, Rep. Tom Lantos, Rep. Matthew G. Rep. Joe Moakley, Rep. Richard E. Neal, lietta, Rep. Paul E. Kanjorski, Rep. John P. Martinez, Rep. Robert T. Matsui, Rep. Rep. John W. Olver, Rep. Gerry E. Studds. Murtha. George Miller, Rep. Norman Y. Mineta, Rep. Michigan: Sen. Carl Levin, Sen. Donald W. Rhode Island: Sen. Claiborne Pell, Rep. Nancy Pelosi, Rep. Lucille Roybal-Allard, Riegle Jr., Rep. David E. Bonior, Rep. Bob Jack Reed. Rep. Pete Stark, Rep. Esteban E. Torres, Carr, Rep. Barbara-Rose Collins, Rep. John South Carolina: Sen. Ernest F. Hollings, Rep. Walter R. Tucker, Rep. Maxine Waters, Conyers, Rep. John D. Dingell, Rep. William Rep. James E. Clyburn, Rep. Butler Derrick, Rep. Henry A. Waxman, Rep. Lynn Woolsey. D. Ford, Rep. Dale E. Kildee, Rep. Sander M. Rep. John M. Spratt. Colorado: Sen. Ben Nighthorse Campbell, Levin. South Dakota: Sen. Tom Daschle. Rep. David E. Skaggs. Minnesota: Sen. Paul Wellstone, Rep. Tennessee: Sen. Harlan Mathews, Sen. Jim Connecticut: Sen. Christopher J. Dodd, James L. Oberstar, Rep. Martin Olav Sabo, Sasser, Rep. Harold E. Ford. Rep. Rosa DeLauro, Rep. Sam Gejdenson, Rep. Bruce F. Vento. Texas: Rep. Jack Brooks, Rep. John Bry- Rep. Barbara B. Kennelly. Mississippi: Rep. G.V. Montgomery, Rep. ant, Rep. Jim Chapman, Rep. Ronald D. Delaware: Sen. Joseph R. Biden Jr. Bennie Thompson, Rep. Jamie L. Whitten. Coleman, Rep. E. de la Garza, Rep. Martin Florida: Sen. Bob Graham, Rep. Jim Bac- Missouri: Rep. William L. Clay, Rep. Rich- Frost, Rep. Henry B. Gonzalez, Rep. Gene chus, Rep. Corrine Brown, Rep. Peter ard A. Gephardt, Rep. Ike Skelton, Rep. Har- Green, Rep. Eddie Bernice Johnson, Rep. Sol- Deutsch, Rep. Sam M. Gibbons, Rep. Alcee L. old L. Volkmer, Rep. Alan Wheat. omon P. Ortiz, Rep. J.J. Pickle, Rep. Frank Hastings, Rep. Harry A. Johnston, Rep. Montana: Sen. Max Baucus, Rep. Pat Wil- Tejeda, Rep. Craig Washington, Rep. Charles Carrie P. Meek, Rep. Pete Peterson, Rep. liams. Karen L. Thurmon. Nevada: Sen. Harry Reid, Rep. James Wilson. Georgia: Rep. Sanford D. Bishop, Rep. Bilbray. Vermont: Sen. Patrick J. Leahy, Rep. Ber- George Darden, Rep. John Lewis, Rep. Cyn- New Jersey: Rep. Robert Menendez, Rep. nard Sanders. thia A. McKinney. Donald M. Payne, Rep. Robert G. Torricelli. Virginia: Rep. Rick Boucher, Rep. Leslie L. Hawaii: Sen. Daniel K. Akaka, Sen. Daniel New Mexico: Rep. Bill Richardson. Byrne, Rep. James P. Moran, Rep. Robert C. K. Inouye, Rep. Neil Abercrombie, Rep. New York: Sen. Daniel Patrick Moynihan, Scott. Patsy T. Mink. Rep. Gary L. Ackerman, Rep. Eliot L. Engel, Washington: Sen. Patty Murray, Rep. Illinois: Sen. Carol Moseley-Braun, Sen. Rep. Floyd H. Flake, Rep. Maurice D. Norm Dicks, Rep. Mike Kreidler, Rep. Jim Paul Simon, Rep. Cardiss Collins, Rep. Rich- Hinchey, Rep. George J. Hochbrueckner, McDermott, Rep. Al Swift, Rep. Jolene ard J. Durbin, Rep. Lane Evans, Rep. Luis V. Rep. Nita M. Lowey, Rep. Thomas J. Man- Unsoeld. Gutierrez, Rep. Mel Reynolds, Rep. Dan Ros- ton, Rep. Michael R. McNulty, Rep. Jerrold West Virginia: Sen. Robert C. Byrd, Sen. tenkowski, Rep. Bobby L. Rush, Rep. George Nadler, Rep. Major R. Owens, Rep. Charles B. John D. Rockefeller IV, Rep. Alan B. Mollo- E. Sangmeister, Rep. Sidney R. Yates. Rangel, Rep. Charles E. Schumer, Rep. Jose han, Rep. Nick J. Rahall, Rep. Bob Wise. Indiana: Rep. Frank McCloskey, Rep. Peter E. Serrano, Rep. Louise M. Slaughter, Rep. Wisconsin: Rep. Gerald D. Kleczka, Rep. J. Visclosky. Edolphus Towns, Rep. Nydia M. Velazquez. David R. Obey. NATIONAL TAXPAYERS UNION

381839 830962 All Avg. 0.45922 Name PA Sta Dist Grade Percent Rank Percent Support Eligibility LDR Budg- Approp. Region score attend. 382510 832963 et Support Eligibility

Long J (IN) ...... D IN 4 D 42 219 100.00 845 2028 ...... 2 Cox J (IL) ...... D IL 16 D 42 220 100.00 843 2028 ...... 2 Stallings R (ID) ...... D ID 2 D 41 221 90.53 761 1836 ...... 1 Johnston H (FL) ...... D FL 14 D 41 222 98.47 826 1997 ...... 3 Mazzoli R (KY) ...... D KY 3 D 41 223 100.00 838 2028 d ...... 3 Larocco L (ID) ...... D ID 1 D 41 224 99.51 831 2018 ...... 1 Visclosky P (IN) ...... D IN 1 D 41 225 100.00 832 2028 ...... 1 2 Lloyd M (TN) ...... D TN 3 D 41 226 97.83 810 1984 ...... 3 Lancaster H (NC) ...... D NC 3 D 41 227 99.90 823 2026 ...... 3 Huckaby J (LA) ...... D LA 5 D 41 228 86.09 709 1746 ...... 1 ...... 3 Peterson C (MN) ...... D MN 7 D 40 229 99.46 811 2017 ...... 2 Andrews M (TX) ...... D TX 25 D 40 230 99.95 815 2027 ...... 3 Schroeder P (CO) ...... D CO 1 D 40 231 99.61 802 2020 d ...... 1 Thomas L (GA) ...... D GA 1 D 39 232 83.04 665 1684 ...... 1 3 Brewster B (OK) ...... D OK 3 D 39 233 99.85 799 2025 ...... 3 Cramer B (AL) ...... D AL 5 D 39 234 99.56 795 2019 ...... 3 Hoagland P (NE) ...... D NE 2 D 39 235 99.75 796 2023 ...... 2 Beilenson A (CA) ...... D CA 23 D 39 236 92.55 737 1877 ...... 1 ...... 1 Derrick B (SC) ...... D SC 3 D 39 237 99.80 790 2024 d ...... 3 April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4195 NATIONAL TAXPAYERS UNION—Continued

381839 830962 All Avg. 0.45922 Name PA Sta Dist Grade Percent Rank Percent Support Eligibility LDR Budg- Approp. Region score attend. 382510 832963 et Support Eligibility

Pickett O (VA) ...... D VA 2 D 39 238 99.36 786 2015 ...... 3 Spratt J (SC) ...... D SC 5 D 39 239 100.00 789 2028 ...... 1 ...... 3 Early J (MA) ...... D MA 3 D 39 241 90.34 707 1832 ...... 1 4 McMillen T (MD) ...... D MD 4 D 38 242 100.00 778 2028 ...... 4 Kennedy J (MA) ...... D MA 8 D 38 243 95.27 741 1932 ...... 4 Gordon B (TN) ...... D TN 6 D 38 244 93.93 725 1905 d ...... 3 Panetta L (CA) ...... D CA 16 D 38 245 98.67 756 2001 d 1 ...... 1 Browder G (AL) ...... D AL 3 D 37 246 99.11 753 2010 ...... 3 Bacchus J (FL) ...... D FL 11 D 37 247 99.41 750 2016 ...... 3 Pease D (OH) ...... D OH 13 D 37 247 99.41 750 2016 ...... 1 ...... 2 Bilbray J (NV) ...... D NV 1 D 37 249 98.52 743 1998 ...... 1 Bruce T (IL) ...... D IL 19 D 37 250 99.56 737 2019 ...... 2 Atkins C (MA) ...... D MA 5 D 36 251 96.25 711 1952 ...... 1 4 Skelton I (MO) ...... D MO 4 D 36 252 94.63 692 1919 ...... 2 DeFazio P (OR) ...... D OR 4 D 36 253 97.24 702 1972 ...... 1 Sangmeister G (IL) ...... D IL 4 D 36 254 98.22 709 1992 ...... 2 Johnson T (SD) ...... D SD 0 D 36 255 99.70 719 2022 ...... 2 Staggers H (WV) ...... D WV 2 D 35 256 89.45 643 1814 ...... 4 Bryant J (TX) ...... D TX 5 D 35 257 95.32 685 1933 ...... 1 ...... 3 Carr B (MI) ...... D MI 6 D 35 258 95.81 688 1943 ...... 1 2 Jenkins E (GA) ...... D GA 9 D 35 259 95.27 684 1932 ...... 3 Darden G (GA) ...... D GA 7 D 35 260 98.13 700 1990 ...... 3 Vento B (MN) ...... D MN 4 D 35 261 99.61 700 2020 ...... 2 Espy M (MS) ...... D MS 2 D 34 262 96.99 676 1967 ...... 1 ...... 3 Eckart D (OH) ...... D OH 11 D 34 263 96.60 668 1959 d ...... 2 Costello J (IL) ...... D IL 21 D 34 264 94.23 650 1911 ...... 3 Murphy A (PA) ...... D PA 22 F 33 266 93.74 633 1901 ...... 4 Hall T (OH) ...... D OH 3 F 33 267 99.21 667 2012 ...... 2 Andrews R (NJ) ...... D NJ 1 F 33 268 97.68 653 1981 ...... 4 Hatcher C (GA) ...... D GA 2 F 33 269 62.72 419 1272 ...... 3 Volkmer H (MO) ...... D MO 9 F 33 270 98.96 660 2007 ...... 2 Price D (NC) ...... D NC 4 F 33 271 99.70 664 2022 ...... 1 3 McCloskey F (IN) ...... D IN 8 F 33 272 98.67 656 2001 ...... 2 Stark P (CA) ...... D CA 9 F 33 273 92.26 612 1871 ...... 1 Schumer C (NY) ...... D NY 10 F 32 274 95.51 627 1937 ...... 4 Aucoin L (OR) ...... D OR 1 F 32 275 86.19 565 1748 ...... 1 1 Peterson P (FL) ...... D FL 2 F 32 276 97.14 634 1970 ...... 3 Russo M (IL) ...... D IL 3 F 32 277 74.36 485 1508 d ...... 2 Applegate (OH) ...... D OH 18 F 32 278 98.22 634 1992 ...... 2 Synar M (OK) ...... D OK 2 F 31 279 98.42 626 1996 d ...... 3 Wilson C (TX) ...... D TX 2 F 31 280 95.61 608 1939 ...... 1 3 Wyden R (OR) ...... D OR 3 F 31 281 99.31 631 2014 ...... 1 Pickle J (TX) ...... D TX 10 F 31 282 97.78 621 1983 ...... 3 Olin J (VA) ...... D VA 6 F 31 283 88.56 561 1796 ...... 3 Miller G (CA) ...... D CA 7 F 31 284 93.64 592 1899 d 1 ...... 1 Studds G (MA) ...... D MA 10 F 31 285 98.92 622 2006 ...... 4 Jones B (GA) ...... D GA 4 F 31 286 78.16 491 1585 ...... 3 Lipinski W (IL) ...... D IL 5 F 31 287 86.93 545 1763 ...... 2 Durbin R (IL) ...... D IL 20 F 31 288 99.90 626 2026 ...... 1 1 2 Oberstar J (MN) ...... D MN 8 F 31 289 99.95 626 2027 ...... 1 ...... 2 McDermott J (WA) ...... D WA 7 F 31 290 99.95 621 2027 ...... 1 Horn J (MO) ...... D MO 2 F 31 291 100.00 621 2028 ...... 2 Slaughter L (NY) ...... D NY 30 F 31 292 99.16 614 2011 ...... 1 ...... 4 Conyers J (MI) ...... D MI 1 F 30 293 83.43 514 1692 ...... 2 Yates S (IL) ...... D IL 9 F 30 294 85.31 525 1730 ...... 1 2 Kostmayer P (PA) ...... D PA 8 F 30 295 99.80 614 2024 d ...... 4 Ford H (TN) ...... D TN 9 F 30 296 84.27 518 1709 ...... 3 Gejdenson S (CT) ...... D CT 2 F 30 297 99.56 611 2019 d ...... 4 Andrews T (ME) ...... D ME 1 F 30 298 98.67 603 2001 ...... 4 Hayes C (IL) ...... D IL 1 F 30 299 98.32 598 1994 ...... 2 Williams P (MT) ...... D MT 1 F 30 300 92.70 556 1880 d ...... 1 Chapman J (TX) ...... D TX 1 F 30 301 98.62 590 2000 ...... 1 3 Sawyer T (OH) ...... D OH 14 F 29 302 99.90 597 2026 ...... 2 Hamilton L (IN) ...... D IN 9 F 29 303 100.00 597 2028 ...... 2 Levin S (MI) ...... D MI 17 F 29 304 99.90 596 2026 ...... 2 Leighan E (OH) ...... D OH 19 F 29 305 88.66 528 1798 ...... 2 Richardson B (NM) ...... D NM 3 F 29 306 96.89 576 1965 ...... 1 Kennelly B (CT) ...... D CT 1 F 29 307 99.65 590 2021 d ...... 4 Frank B (MA) ...... D MA 4 F 29 308 99.01 583 2008 ...... 1 ...... 4 Mfume K (MD) ...... D MD 7 F 29 309 98.62 579 2000 ...... 4 Clay W. (MO) ...... D MO 1 F 29 310 97.63 573 1980 ...... 2 SABO M (MN) ...... D MN 5 F 29 311 99.21 581 2012 d 1 1 2 Owens M (NY) ...... D NY 12 F 29 312 95.66 555 1940 ...... 4 Wise B (WV) ...... D WV 3 F 28 313 95.41 551 1935 ...... 1 ...... 4 Tallon R (SC) ...... D SC 6 F 28 314 90.24 521 1830 ...... 3 Reed J (RI) ...... D RI 2 F 28 315 100.00 576 2028 ...... 4 Skaggs D (CO) ...... D CO 2 F 28 316 100.00 576 2028 ...... 1 1 Kildee D (MI) ...... D MI 7 F 28 317 100.00 570 2028 ...... 1 ...... 2 Laface J (NY) ...... D NY 32 F 28 318 96.94 552 1966 ...... 4 Yatron G (PA) ...... D PA 6 F 28 319 89.55 509 1816 ...... 4 Gibbons S (FL) ...... D FL 7 F 28 320 96.65 549 1960 ...... 3 Washington C (TX) ...... D TX 18 F 28 321 97.73 555 1982 ...... 3 Dellums R (CA) ...... D CA 8 F 28 322 99.31 562 2014 ...... 1 Weiss T (NY) ...... D NY 17 F 28 323 84.52 478 1714 ...... 4 Solarz S (NY) ...... D NY 13 F 28 324 81.95 461 1662 ...... 4 Olver J (MA) ...... D MA 1 F 28 325 99.41 557 2016 ...... 4 Wolpe H (MI) ...... D MI 3 F 28 326 92.70 517 1880 ...... 2 Payne D (NJ) ...... D NJ 10 F 27 327 94.77 527 1922 ...... 4 Lantos T (CA) ...... D CA 11 F 27 328 96.45 532 1956 ...... 1 Guarini F (NJ) ...... D NJ 14 F 27 329 95.07 524 1928 ...... 1 ...... 4 Ortiz S (TX) ...... D TX 27 F 27 330 94.58 521 1918 ...... 3 Nowark H (NY) ...... D NY 33 F 27 331 94.97 520 1926 ...... 4 Anderson G (CA) ...... D CA 32 F 27 332 94.53 512 1917 ...... 1 Flake F (NY) ...... D NY 6 F 27 333 90.93 491 1844 ...... 4 Serrano J (NY) ...... D NY 18 F 27 334 97.14 524 1970 ...... 4 Swift A (WA) ...... D WA 2 F 27 335 98.96 533 2007 d ...... 1 Lehman R (CA) ...... D CA 18 F 26 336 87.72 471 1779 ...... 1 1 Blackwell L (PA) ...... D PA 2 F 26 337 97.24 516 1972 ...... 4 Markey E (MA) ...... D MA 7 F 26 338 95.32 503 1933 ...... 4 Lowey N (NY) ...... D NY 20 F 26 339 100.00 526 2028 ...... 4 Rangel C (NY) ...... D NY 16 F 26 340 98.67 516 2001 d ...... 4 Foglietta T (PA) ...... D PA 1 F 26 341 89.50 467 1815 ...... 4 Collins B (MI) ...... D MI 13 F 26 342 93.00 484 1886 ...... 2 Evans L (IL) ...... D IL 17 F 26 343 99.95 519 2027 ...... 2 Edwards D (CA) ...... D CA 10 F 26 344 97.53 505 1978 ...... 1 Collins C (IL) ...... D IL 7 F 25 345 82.84 425 1680 ...... 2 Wheat A (MO) ...... D MO 5 F 25 346 99.65 511 2021 d ...... 2 Savage G (IL) ...... D IL 2 F 25 347 82.79 423 1679 ...... 2 H 4196 CONGRESSIONAL RECORD — HOUSE April 5, 1995 NATIONAL TAXPAYERS UNION—Continued

381839 830962 All Avg. 0.45922 Name PA Sta Dist Grade Percent Rank Percent Support Eligibility LDR Budg- Approp. Region score attend. 382510 832963 et Support Eligibility

Waxman H (CA) ...... D CA 24 F 25 348 97.88 499 1985 ...... 1 Scheuer J (NY) ...... D NY 8 F 25 349 91.91 465 1864 ...... 4 Moakley J (MA) ...... D MA 4 F 25 350 92.85 469 1883 d ...... 4 Torricelli R (NJ) ...... D NJ 9 F 25 351 97.29 491 1973 ...... 4 Unsoeld J (WA) ...... D WA 3 F 25 352 92.80 468 1882 ...... 1 Neal R (MA) ...... D MA 2 F 25 353 98.13 492 1990 ...... 4 Kanjorski P (PA) ...... D PA 11 F 25 354 100.00 500 2028 ...... 4 Hoyer S (MD) ...... D MD 5 F 25 355 99.06 495 2009 d ...... 1 4 Delauro R (CT) ...... D CT 3 F 25 356 100.00 499 2028 ...... 4 Kleczka G (WI) ...... D WI 4 F 25 357 98.92 493 2006 d ...... 2 Matsui R (CA) ...... D CA 3 F 25 358 94.92 472 1925 d 1 ...... 1 Hefner W (NC) ...... D NC 8 F 24 359 53.70 266 1089 d ...... 1 3 Stokes L (OH) ...... D OH 21 F 24 360 98.32 485 1994 ...... 1 2 Pelosi N (CA) ...... D CA 5 F 24 361 89.74 442 1820 ...... 1 1 Ford W (MI) ...... D MI 15 F 24 362 94.28 464 1912 ...... 2 Nagle D (IA) ...... D IA 3 F 24 363 96.25 471 1952 ...... 2 Berman H (CA) ...... D CA 26 F 24 364 98.92 483 2006 ...... 1 ...... 1 Jones W (NC) ...... D NC 1 F 24 365 76.97 373 1561 ...... 3 Obey D (WI) ...... D WI 7 F 24 366 99.75 481 2023 d ...... 1 2 Frost M (TX) ...... D TX 24 F 24 367 96.45 463 1956 d ...... 3 McHugh M (NY) ...... D NY 28 F 24 368 99.06 474 2009 d ...... 1 4 Abercrombie N (HI) ...... D HI 1 F 23 369 97.78 466 1983 ...... 1 Pastor E (AZ) ...... D AZ 2 F 23 370 96.60 458 1959 ...... 1 Mavroules N (MA) ...... D MA 6 F 23 371 96.84 443 1964 ...... 4 Waters M (CA) ...... D CA 29 F 22 372 94.72 432 1921 ...... 1 De la Garza E (TX) ...... D TX 15 F 22 373 93.44 423 1895 ...... 3 Smith L (FL) ...... D FL 16 F 22 374 90.19 408 1829 d ...... 1 3 Moran J (VA) ...... D VA 8 F 22 375 91.67 414 1859 ...... 3 Traficant J (OH) ...... D OH 17 F 22 376 99.31 447 2014 ...... 2 Ackerman G (NY) ...... D NY 7 F 22 377 82.79 372 1679 ...... 4 Koltr J (PA) ...... D PA 4 F 22 378 74.41 331 1509 ...... 4 Lewis J (GA) ...... D GA 5 F 22 379 94.87 418 1924 d ...... 3 Towns E (NY) ...... D NY 11 F 22 380 83.33 365 1690 ...... 4 Mink P (HI) ...... D HI 2 F 21 381 95.32 415 1933 ...... 1 Mrazek R (NY) ...... D NY 3 F 21 382 89.64 386 1818 ...... 1 4 Coyne W (PA) ...... D PA 14 F 21 383 99.80 429 2024 ...... 4 Boxer B (CA) ...... D CA 6 F 21 384 60.65 260 1230 ...... 1 Downey T (NY) ...... D NY 2 F 21 385 99.46 425 2017 ...... 4 Cardin B (MD) ...... D MD 3 F 21 386 95.56 407 1938 ...... 4 Roybal E (CA) ...... D CA 25 F 20 387 99.56 413 2019 ...... 1 1 Bevill T (AL) ...... D AL 4 F 20 388 95.81 396 1943 d ...... 1 3 Whitten J (MS) ...... D MS 1 F 20 389 68.34 277 1386 d ...... 1 3 Rahall N (WV) ...... D WV 4 F 20 390 98.42 395 1996 ...... 4 Natcher W (KY) ...... D KY 2 F 20 391 100.00 401 2028 ...... 1 3 Mineta N (CA) ...... D CA 13 F 20 392 99.51 398 2018 d ...... 1 Boucher R (VA) ...... D VA 9 F 20 393 99.31 393 2014 ...... 3 Engel E (NY) ...... D NY 19 F 19 394 94.03 366 1907 ...... 4 Dwyer B (NJ) ...... D NJ 6 F 19 395 85.06 331 1725 ...... 1 1 4 Gaydos J (PA) ...... D PA 20 F 19 396 79.44 309 1611 ...... 4 Kaptur M (OH) ...... D OH 9 F 19 397 96.20 373 1951 ...... 1 2 Kopetski M (OR) ...... D OR 5 F 19 398 98.37 379 1995 ...... 1 Martinez M (CA) ...... D CA 30 F 19 399 97.19 374 1971 ...... 1 Rostenkowski D (IL) ...... D IL 8 F 19 400 89.99 344 1825 d ...... 2 Dicks N (WA) ...... D WA 6 F 19 401 96.01 366 1947 ...... 1 1 Manton T (NY) ...... D NY 9 F 19 402 92.46 352 1875 d ...... 4 Brown G (CA) ...... D CA 36 F 18 403 89.40 333 1813 ...... 1 Hochbrueckner G (NY) ...... D NY 1 F 18 404 99.85 371 2025 ...... 4 Dingell J (MI) ...... D MI 16 F 18 405 88.66 328 1798 ...... 2 Jefferson W (LA) ...... D LA 2 F 18 406 86.88 321 1762 ...... 3 Traxler B (MI) ...... D MI 8 F 18 407 50.30 182 1020 ...... 1 2 McNulty M (NY) ...... D NY 23 F 18 408 98.96 356 3007 ...... 4 Perkins C (KY) ...... D KY 7 F 18 409 87.92 316 1783 ...... 3 Annunzio F (IL) ...... D IL 11 F 18 410 87.38 314 1772 ...... 4 Brooks J (TX) ...... D TX 9 F 17 411 89.69 318 1819 ...... 3 Levine M (CA) ...... D CA 27 F 17 412 58.68 205 1190 ...... 1 Bustamante A (TX) ...... D TX 23 F 17 413 88.12 303 1787 d ...... 3 Lehman W (FL) ...... D FL 17 F 17 414 75.94 260 1540 ...... 3 Aspin L (WI) ...... D WI 1 F 17 415 97.73 329 1982 ...... 2 Dymally M (CA) ...... D CA 31 F 16 416 52.22 174 1059 ...... 1 Rose C (NC) ...... D NC 7 F 16 417 99.41 325 2016 ...... 3 Smith N (IA) ...... D IA 4 F 16 418 93.89 306 1904 ...... 1 3 Gephardt R (MO) ...... D MO 3 F 16 419 90.73 295 1840 d 1 ...... 2 Borski R (PA) ...... D PA 3 F 16 420 98.62 320 2000 ...... 4 Murtha J (PA) ...... D PA 12 F 15 421 97.58 294 1979 d ...... 1 4 Bonior D (MI) ...... D MI 12 F 15 422 82.30 247 1669 d ...... 2 Fazio V (CA) ...... D CA 4 F 15 423 98.37 292 1995 d ...... 1 1 Dixon J (CA) ...... D CA 28 F 15 424 98.03 289 1988 ...... 1 1 Hertel D (MI) ...... D MI 14 F 14 425 92.16 256 1869 ...... 2 Mollohan A (WV) ...... D WV 1 F 14 426 97.44 269 1976 ...... 1 4 Coleman R (TX) ...... D TX 16 F 13 427 97.53 264 1978 ...... 3 Gonzalez H (TX) ...... D TX 20 F 13 428 100.00 266 2028 ...... 3 Thornton R (AR) ...... D AR 2 F 13 429 97.73 259 1982 d ...... 3 Alexander B (AR) ...... D AR 1 F 13 430 78.85 201 1599 ...... 1 3 Roe R (NJ) ...... D NJ 8 F 12 431 87.23 218 1769 ...... 4 Oakar M (OH) ...... D OH 20 F 12 432 84.02 198 1704 ...... 2

[From the National Taxpayers Union, Vic Fazio, Rep. Tom Lantos, Rep. Richard H. Lehman, Rep. Douglas Peterson, Rep. Law- Washington, DC] Lehman, Rep. Mel Levine, Rep. Matthew G. rence J. Smith. Martinez, Rep. Robert T. Matsui, Rep. Nor- Georgia: Rep. George Darden, Rep. Charles BIGGEST SPENDERS—102D CONGRESS, 1ST man Y. Mineta, Rep. Leon E. Panetta, Rep. F. Hatcher, Rep. Ed Jenkins, Rep. Ben Jones, SESSION 1991 Nancy Pelosi, Rep. Edward R. Roybal, Rep. Rep. John Lewis, Rep. J. Roy Rowland, Rep. Alabama: Rep. Tom Bevill, Rep. Glen Esteban Edward Torres, Rep. Henry A. Wax- Lindsay Thomas. Browder, Rep. Bud Cramer, Rep. Claude Har- man. Hawaii: Rep. Neil Abercrombie, Sen. Dan- ris, Sen. Howell Heflin, Sen. Richard C. Shel- Colorado: Rep. Ben Nighthorse Campbell, iel Akaka, Sen. Daniel Inouye, Rep. Patsy T. by. Rep. David E. Skaggs. Mink. Arkansas: Rep. Bill Alexander, Rep. Beryl Connecticut: Rep. Rosa DeLauro, Sen. Idaho: Rep. Larry LaRocco, Rep. Richard F. Anthony, Jr., Rep. Ray Thornton. Christopher Dodd, Rep. Sam Gejdenson, Rep. H. Stallings. California: Rep. Glenn M. Anderson, Rep. Barbara B. Kennelly, Sen. Joseph Illinois: Rep. Frank Annunzio, Rep. John Howard L. Berman, Rep. Barbara Boxer, Rep. Lieberman. W. Cox, Jr., Rep. Dan Rostenkowski. George E. Brown, Jr., Rep. Julian C. Dixon, Florida: Rep. Jim Bacchus, Rep. Dante B. Indiana: Rep. Jim Jontz, Rep. Frank Rep. Calvin Dooley, Rep. Don Edwards, Rep. Fascell, Rep. Sam M. Gibbons, Rep. William McCloskey. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4197 Iowa: Rep. David R. Nagle, Rep. Neal [From the National Taxpayers Union, Charles E. Schumer, Rep. Edolphus Towns, Smith. Washington, DC] Rep. Major R. Owens, Rep. Stephen J. Solarz, Kentucky: Rep. Romano L. Mazzoli, Rep. BOMBS OF 1990 Rep. Charles B. Rangel, Rep. Jose E. William H. Natcher, Rep. Carl C. Perkins. The number one congressional song for big Serrano, Rep. Eliot L. Engel, Rep. Nita M. Louisiana: Sen. John Breaux, Rep. William spenders in 1990 ‘‘Hey, Big Spender.’’ Lowey, Rep. Bejamin A. Gilman, Rep. Mi- J. Jefferson. Alabama: Sen. Howell T. Heflin, Sen. Rich- chael R. McNulty, Rep. Sherwood L. Boeh- Maryland: Rep. Benjamin L. Cardin, Rep. ard C. Shelby, Rep. Glen Browder, Rep. Tom lert, Rep. Matthew F. McHugh, Rep. Frank Steny H. Hoyer, Rep. Tom McMillen, Sen. Bevill, Rep. Ronnie Flippo, Rep. Claude Har- Horton, Rep. Louise M. Slaughter, Rep. Paul Sarbanes. ris. Henry J. Nowak. Massachusetts: Rep. Chester G. Atkins, Alaska: Sen. Ted Stevens. North Carolina: Sen. Terry Sanford, Rep. Rep. Barney Frank, Rep. Joseph P. Kennedy Arizona: Sen. Dennis DeConcini, Rep. Mor- Walter B. Jones, Rep. H. Martin Lancaster, II, Rep. Edward J. Markey, Rep. Nicholas ris K. Udall. Rep. David E. Price, Rep. Charlie Rose, Rep. Mavroules, Rep. John Joseph Moakley, Rep. Arkansas: Rep. Bill Alexander, Rep. Beryl W.G. (Bill) Hefner. Richard E. Neal, Rep. John W. Olver. F. Anthony, Jr. North Dakota: Sen. Quentin N. Burdick. Michigan: Rep. David E. Bonior, Rep. Bob California: Sen. Alan Cranston, Rep. Doug- Ohio: Sen. John Glenn, Rep. Thomas A. Carr, Rep. Barbara-Rose Collins, Rep. John las H. Bosco, Rep. Robert T. Matsui, Rep. Vic Luken, Rep. Marcy Kaptur, Rep. Thomas C. D. Dingell, Rep. Dennis M. Hertel, Rep. Dale Fazio, Rep. Nancy Pelosi, Rep. Barbara Sawyer, Rep. Edward F. Feighan, Rep. Mary E. Kildee, Rep. Sander M. Levin, Rep. Bob Boxer, Rep. Don Edwards, Rep. Tom Lantos, Rose Oakar, Rep. Louis Stokes. Traxler. Rep. Norman Y. Mineta, Rep. Leon E. Pa- Oklahoma: Sen. David L. Boren, Rep. Mike Minnesota: Rep. Martin Olav Sabo, Rep. netta, Rep. Richard H. Lehman, Rep. Henry Synar, Rep. Wes Watkins. Bruce F. Vento. A. Waxman, Rep. Edward R. Roybal, Rep. Oregon: Rep. Les AuCoin, Rep. Ron Wyden, Mississippi: Rep. Mike Espy, Rep. Jamie L. Howard L. Berman, Rep. Mel Levine, Rep. Rep. Peter A. DeFazio. Whitten. Julian C. Dixon, Rep. Augustus F. Hawkins, Pennsylvania: Rep. Thoms M. Foglietta, Missouri: Rep. Richard A. Gephardt, Rep. Rep. Matthew G. Martinez, Rep. Mervyn M. Rep. William H. Gray III, Rep. Robert A. Joan Kelly Ham, Rep. Alan Wheat. Dymally, Rep. Glenn M. Anderson, Rep. Borski, Rep. Peter H. Kostmayer, Rep. John Nebraska: Rep. Peter Hoagland. Esteban Edward Torres, Rep. George E. P. Murtha, Rep. William J. Coyne. Nevada: Rep. James H. Bilbray, Sen. Rich- Brown, Jr. South Carolina: Rep. Butler Derrick, Rep. ard H. Bryan, Sen. Harry Reid. Colorado: Rep. David E. Skaggs. John M. Spratt, Jr. New Jersey: Rep. Bernard J. Dwyer, Rep. Connecticut: Rep. Barbara B. Kennelly, South Dakota: Rep. Tim Johnson. Robert A. Roe, Rep. Robert G. Torricelli. Rep. Sam Gejdenson. Tennessee: Sen. Albert Gore, Jr., Rep. New Mexico: Rep. Bill Richardson, Sen. Florida: Sen. Bob Graham, Rep. Bill Nel- Marilyn Lloyd, Rep. Bob Clement, Rep. Bart Jeff Bingaman. son, Rep. Lawrence J. Smith, Rep. William Gordon, Rep. John Tanner, Rep. Harold E. New York: Rep. Gary L. Ackerman, Rep. Lehman, Rep. Dante B. Fascell. Ford. Sherwood L. Boehlert, Sen. Alfonse Georgia: Sen. Wyche Fowler, Jr., Rep. Texas: Sen. Lloyd Bentsen, Rep. Jim Chap- D’Amato, Rep. Thomas J. Downey, Rep. Lindsay Thomas, Rep. Charles F. Hatcher, man, Rep. Charles Wilson, Rep. Jack Brooks, Rep. Ben Jones, Rep. John Lewis, Rep. Eliot L. Engel, Rep. Benjamin A. Gilman, Rep. J.J. Pickle, Rep. Marvin Leath, Rep. George (Buddy) Darden, Rep. J. Roy Row- Pete Geren, Rep. E Kika de la Garza, Rep. Rep. George J. Hochbrueckner, Rep. Frank land. Ronald D. Coleman, Rep. Craig A. Washing- Horton, Rep. John J. LaFalce, Rep. Nita M. Hawaii: Sen. Daniel K. Inouye, Sen. Daniel ton, Rep. Henry B. Gonzalez, Rep. Albert G. Lowey, Rep. Thomas J. Manton, Rep. Mat- K. Akaka. Bustamante, Rep. Martin Frost, Rep. Mi- thew F. McHugh, Rep. Michael R. McNulty, Illinois: Rep. Charles A. Hayes, Rep. Wil- chael A. Andrews, Rep. Solomon P. Ortiz. Sen. Daniel Patrick Moynihan, Rep. Robert liam O. Lipinski, Rep. Cardiss Collins, Rep. Vermont: Sen. Patrick J. Leahy, Rep. J. Mrazek, Rep. Charles B. Rangel, Rep. Dan Rostenkowski, Rep. Sidney R. Yates, James M. Jeffords. Charles E. Schumer, Rep. Jose´ E. Serrano, Rep. Lane Evans, Rep. Terry L. Bruce, Rep. Virginia: Rep. Norman Sisisky, Rep. Lewis Rep. Louise M. Slaughter, Rep. Stephen J. Richard J. Durbin, Rep. Jerry F. Costello. F. Payne, Jr., Rep. Rick Boucher. Solarz. Indiana: Rep. Peter J. Visclosky, Rep. Washington: Sen. Brock Adams, Rep. Al North Carolina: Rep. W.G. (Bill) Hefner, Frank McCloskey. Swift, Rep. Jolene Unsoeld, Rep. Norman D. Rep. Walter B. Jones, Rep. H. Martin Lan- Iowa: Rep. David R. Nagle, Rep. Neal Dicks, Rep. Jim McDermott. caster, Rep. David E. Price, Rep. Charlie Smith. West Virginia: Rep. Alan B. Mollohan, Rep. Rose. Kentucky: Sen. Wendell H. Ford, Rep. Wil- Harley O. Staggers, Jr., Rep. Bob Wise. North Dakota: Sen. Quentin Burdick. liam H. Natcher, Rep. Romano L. Mazzoli, Wisconsin: Rep. Les Aspin, Rep. Gerald D. Ohio: Rep. Edward F. Feighan, Rep. Tony Rep. Carl C. Perkins. Kleckzka, Rep. David Obey. P. Hall, Rep. Mary Rose Oakar, Rep. Thomas Louisiana: Sen. John B. Breaux, Sen. J. C. Sawyer. Bennett Johnston, Rep. Lindy Boggs. Oklahoma: Sen. David L. Boren, Rep. Bill Maryland: Sen. Barbara A. Mikulski, Sen. VOTE TALLY MEMBER REPORT SORTED BY NET Brewster. Paul S. Sarbanes, Rep. Benjamin L. Cardin, Oregon: Rep. Les AuCoin, Rep. Mike Rep. Tom McMillen, Rep. Steny H. Hoyer. SPENDING—SENATE Kopetski, Sen. Bob Packwood, Rep. Ron Massachusetts: Sen. Edward M. Kennedy, [What Members of Congress voted for in the 103d Congress Wyden. Rep. Richard E. Neal, Rep. Barney Frank, (Figures in millions of dollars)] Pennsylvania: Rep. Robert A. Borski, Rep. Rep. Chester G. Atkins, Rep. Nicholas Mav- William J. Coyne, Rep. Thomas M. Foglietta, In- roules, Rep. Edward J. Markey, Rep. Joseph Name, party, and state creases Cuts Net Rep. Joseph M. Gaydos, Sen. Arlen Specter, P. Kennedy II, Rep. John Joseph Moakley, Sen. Harris Wofford, Rep. Joe Kolter, Rep. Rep. Gerry E. Studds. 1 Johnston, J. (D–LA) ...... 127,123 ¥31,700 95,422 Peter H. Kostmayer, Rep. John P. Murtha, Michigan: Rep. John Conyers, Jr., Rep. 2 Bryan, R. (D–NV) ...... 132,582 ¥44,342 88,240 3 Breaux, J. (D–LA) ...... 130,572 ¥45,993 84,579 Rep. Gus Yatron. Howard Wolpe, Rep. Dale E. Kildee, Rep. Bob 4 Daschle, T. (D–SD) ...... 130,763 ¥46,354 84,409 South Carolina: Rep. Butler Derrick, Rep. Traxler, Rep. Robert W. Davis, Rep. David E. 5 Inouye, D. (D–HI) ...... 130,702 ¥16,352 84,350 John M. Spratt, Jr. Bonior, Rep. George W. Crockett, Jr., Rep. 6 Moseley-Braun, C. (D–IL) ...... 134,551 ¥50,324 84,229 7 Reid, H. (D–NV) ...... 132,610 ¥48,449 84,161 Tennessee: Rep. Bob Clement, Rep. Harold William D. Ford, Rep. John D. Dingell, Rep. 8 Biden, J. (D–DE) ...... 130,708 ¥46,815 83,893 E. Ford, Rep. Bart Gordon, Sen. Al Gore, Sander M. Levin. 9 Rockefeller, J. (D–WV) ...... 130,488 ¥46,657 83,831 Rep. Marilyn Lloyd. Minnesota: Rep. Bruce F. Vento, Rep. Mar- 10 Mikulski, B. (D–MD) ...... 128,823 ¥45,826 82,997 Texas: Sen. Lloyd Bentsen, Rep. Jack tin Olav Sabo, Rep. Gerry Sikorski, Rep. 11 Akaka, D. (D–HI) ...... 130,732 ¥47,884 82,848 12 Boxer, B. (D–CA) ...... 136,389 ¥53,720 82,669 Brooks, Rep. John Bryant, Rep. Albert G. James L. Oberstar. 13 Wellstone, P. (D–MN) ...... 135,793 ¥54,280 81,513 Bustamante, Rep. Jim Chapman, Rep. Ron- Mississippi: Rep. Jamie L. Whitten, Rep. 14 Riegle, D. (D–MI) ...... 128,496 ¥47,037 81,459 ald D. Coleman, Rep. E de la Garza, Rep. Mike Espy, Rep. G.V. (Sonny) Montgomery. 15 Ford, W. (D–KY) ...... 130,732 ¥49,714 81,018 16 Glenn, J. (D–OH) ...... 127,262 ¥46,343 80,919 Chet Edwards, Rep. Martin Frost, Rep. Missouri: Rep. William L. (Bill) Clay, Rep. 17 Sarbanes, P. (D–MD) ...... 127,332 ¥47,571 79,761 Henry B. Gonzalez, Rep. Solomon P. Ortiz, Richard A. Gephardt, Rep. Ike Skelton, Rep. 18 Murray, P. (D–WA) ...... 127,332 ¥48,003 79,329 Rep. J.J. Pickle, Rep. Charles Wilson. Alan Wheat, Rep. Harold L. Volkmer. 19 Dodd, C. (D–CT) ...... 126,256 ¥47,002 79,254 20 Feinstein, D. (D–CA) ...... 127,521 ¥50,872 76,649 Utah: Rep. Wayne Owens. Nebraska: Rep. Peter Hoagland. 21 Kennedy, E. (D–MA) ...... 127,256 ¥51,079 76,177 Virginia: Rep. Rick Boucher, Rep. James Nevada: Rep. James H. Bilbray: 22 Heflin, H. (D–AL) ...... 133,490 ¥57,768 75,722 P. Moran, Rep. Owen B. Pickett, Sen. New Jersey: Rep. Bernard J. Dwyer, Rep. 23 Harkin, T. (D–IA) ...... 140,062 ¥64,432 75,630 24 Campbell, B. (D–CO) ...... 127,361 ¥51,818 75,543 Charles Robb, Rep. Norman Sisisky. Robert A. Roe, Rep. Robert G. Torricelli, 25 Moynihan, D. (D–NY) ...... 129,613 ¥54,602 75,011 Washington: Rep. Norman D. Dicks, Rep. Rep. Donald Payne. 26 Mitchell, G. (D–ME) ...... 127,308 ¥52,668 74,640 Jim McDermott, Rep. Al Swift, Rep. Jolene New Mexico: Sen. Jeff Bingaman, Rep. Bill 27 Byrd, R. (D–WV) ...... 128,325 ¥53,869 74,456 28 Mathews, H. (D–TN) ...... 129,125 ¥56,887 72,238 Unsoeld. Richardson. 29 Sasser, J. (D–TN) ...... 132,719 ¥60,681 72,038 West Virginia: Rep. Alan B. Mollohan, Rep. New York: Rep. George J. Hochbrueckner, 30 Wofford, H. (D–PA) ...... 132,613 ¥61,662 70,951 Bob Wise. Rep. Robert J. Mrazek, Rep. Floyd H. Flake, 31 Bradley, B. (D–NJ) ...... 129,639 ¥59,336 70,303 32 Leahy, P. (D–VT) ...... 134,144 ¥64,377 69,767 Wisconsin: Rep. Les Aspin, Rep. Gerald D. Rep. Gary L. Ackerman, Rep. James H. 33 Bingaman, J. (D–NM) ...... 125,602 ¥56,267 69,335 Kleczka. Scheuer, Rep. Thomas J. Manton, Rep. 34 Bumpers, D. (D–AR) ...... 133,128 ¥65,901 67,227 H 4198 CONGRESSIONAL RECORD — HOUSE April 5, 1995 VOTE TALLY MEMBER REPORT SORTED BY NET VOTE TALLY MEMBER REPORT SORTED BY NET VOTE TALLY MEMBER REPORT SORTED BY NET SPENDING—SENATE—Continued SPENDING—HOUSE—Continued SPENDING—HOUSE—Continued [What Members of Congress voted for in the 103d Congress [What Members of Congress voted for in the 103d Congress (figures in [What Members of Congress voted for in the 103d Congress (figures in (Figures in millions of dollars)] millions of dollars)] millions of dollars)]

In- In- Name Cuts Net Name In- Cuts Net Name, party, and state creases Cuts Net creases creases

35 Dorgan, B. (D–ND) ...... 132,900 ¥66,454 66,446 31 Glickman, D. (KS)—D ...... 131,011 (50,128) 80,883 138 Lowey, N. (NY)—D ...... 136,236 (80,007) 56,229 36 Levin, C. (D–MI) ...... 127,302 ¥61,756 66,046 32 Price, D. (NC)—D ...... 133,572 (53,450) 80,122 139 Neal, R. (MA)—D ...... 135,123 (78,926) 56,197 37 Kerry, J. (D–MA) ...... 127,332 ¥62,446 64,886 33 Moran, J. (VA)—D ...... 134,094 (54,248) 79,846 140 Eshoo, A. (CA)—D ...... 134,752 (79,068) 55,684 38 Hollings, E. (D–SC) ...... 126,315 ¥62,298 64,017 34 Richardson, B. (NM)—D ...... 132,345 (52,617) 79,728 141 Swett, D. (NH)—D ...... 131,083 (75,590) 55,493 39 Pryor, D. (D–AR) ...... 130,534 ¥66,918 63,616 35 Spratt, J. (SC)—D ...... 133,556 (53,868) 79,688 142 Abercrombie, N. (HI)—D ...... 136,002 (80,623) 55,379 40 Pell, C. (D–RI) ...... 121,372 ¥58,847 62,525 36 McCloskey, F. (IN)—D ...... 133,603 (54,139) 79,464 143 Kleczka, G. (WI)—D ...... 136,083 (80,769) 55,314 41 Lautenberg, F. (D–NJ) ...... 136,633 ¥74,425 62,208 37 Rose, C. (NC)—D ...... 130,222 (50,862) 79,360 144 Ford, W. (MI)—D ...... 127,978 (72,795) 55,183 42 Conrad, K. (D–ND) ...... 131,665 ¥70,587 61,078 38 Dixon, J. (CA)—D ...... 135,695 (56,387) 79,308 145 Gutierrez, L. (IL)—D ...... 127,792 (72,618) 55,174 43 Nunn, S. (D–GA) ...... 127,354 ¥69,730 57,624 39 Whitten, J. (MS)—D ...... 130,260 (51,373) 78,887 146 Hefner, W. (NC)—D ...... 135,846 (80,675) 55,171 44 Graham, B. (D–FL) ...... 129,093 ¥71,883 57,210 40 Coleman, R. (TX)—D ...... 134,930 (56,112) 78,818 147 Huffington, M. (CA)—R ...... 94,862 (39,830) 55,032 45 Simon, P. (D–IL) ...... 134,777 ¥82,337 52,440 41 Mollohan, A. (WV)—D ...... 127,593 (48,951) 78,642 148 Wynn, A. (MD)—D ...... 136,193 (81,292) 54,901 46 Metzenbaum, H. (D–OH) ...... 122,709 ¥71,661 51,048 42 Reed, J. (RI)—D ...... 133,048 (54,455) 78,593 149 Lloyd, M. (IN)—D ...... 128,944 (74,208) 54,736 47 Baucus, M. (D–MT) ...... 129,869 ¥79,774 50,095 43 Thornton, R. (AR)—D ...... 135,134 (56,709) 78,425 150 Schumer, C. (NY)—D ...... 135,227 (80,604) 54,623 48 Jeffords, J. (R–VT) ...... 127,492 ¥79,181 48,311 44 Sabo, M. (MN)—D ...... 129,219 (51,210) 78,009 151 Pallone, E. (NJ)—D ...... 113,692 (59,576) 54,116 49 Feingold, R. (D–WI) ...... 126,993 ¥81,812 45,121 45 Bilbray, J. (NV)—D ...... 133,633 (55,667) 77,966 152 Coppersmith, S. (AZ)—D ...... 117,093 (63,054) 54,039 50 Robb, C. (D–VA) ...... 127,304 ¥84,096 43,208 46 Levin, S. (MI)—D ...... 133,080 (55,338) 77,742 153 Engel, E. (NY)—D ...... 135,678 (81,675) 54,003 51 DeConcini, D. (D–AZ) ...... 137,832 ¥95,895 41,937 47 Derrick, B. (SC)—D ...... 129,552 (52,095) 77,457 154 Hinchey, M. (NY)—D ...... 135,659 (81,733) 53,926 52 Exon, J. (D–NE) ...... 130,612 ¥89,195 41,417 48 Traficant, J. (OH)—D ...... 132,239 (54,813) 77,426 155 Thurman, K. (FL)—D ...... 132,997 (79,204) 53,793 53 Kerrey, B. (D–NE) ...... 127,183 ¥95,574 31,609 49 Rogers, H. (KY)—R ...... 129,359 (52,075) 77,284 156 McDermott, J. (WA)—D ...... 134,667 (80,927) 53,740 54 Hutchison, K. (R–TX) ...... 112,902 ¥84,690 28,212 50 Matsui, R. (CA)—D ...... 134,510 (57,291) 77,219 51 Ackerman, G. (NY)—D ...... 131,956 (54,784) 77,172 157 Sharp, P. (IN)—D ...... 131,236 (77,679) 53,557 55 Lieberman, J. (D–CT) ...... 122,816 ¥95,098 27,718 158 Schenk, L. (CA)—D ...... 133,606 (80,147) 53,459 56 Boren, D. (D–OK) ...... 126,528 ¥100,581 25,947 52 Volkmer, H. (MO)—D ...... 131,029 (54,470) 76,559 53 Skelton, I. (MO)—D ...... 130,804 (55,373) 75,431 159 Costello, J. (IL)—D ...... 134,522 (81,139) 53,383 57 Hatfield, M. (R–OR) ...... 112,727 ¥86,919 25,808 160 Byrne, L. (VA)—D ...... 131,385 (78,014) 53,371 58 Shelby, R. (D–AL) ...... 117,660 ¥92,487 25,173 54 Pickett, O. (VA)—D ...... 110,525 (35,608) 74,917 59 Stevens, T. (R–AK) ...... 122,046 97,887 24,159 55 Edwards, C. (TX)—D ...... 129,826 (54,946) 74,880 161 Kopetski, M. (OR)—D ...... 130,335 (77,141) 53,194 ¥ 162 Gilman, B. (NY)—R ...... 110,441 (57,314) 53,127 60 Specter, A. (R–PA) ...... 124,538 ¥100,781 23,757 56 Brooks, J. (TX)—D ...... 133,173 (58,641) 74,532 61 Kohl, H. (D–WI) ...... 124,700 ¥103,945 20,755 57 Harman, J. (CA)—D ...... 132,362 (57,848) 74,514 163 Obey, D. (WI)—D ...... 136,075 (82,955) 53,120 62 Cochran, T. (R–MS) ...... 117,697 ¥101,611 16,086 58 Clyburn, J. (SC)—D ...... 133,732 (60,148) 73,584 164 Menendez, R. (NJ)—D ...... 133,872 (80,884) 52,988 63 Gorton, S. (R–WA) ...... 119,839 ¥108,973 10,866 59 Mineta, N. (CA)—D ...... 131,362 (57,945) 73,417 165 Bryant, J. (TX)—D ...... 133,135 (80,232) 52,903 64 Bond, C. (R–MO) ...... 117,452 ¥112,300 5,152 60 Bentley, H. (MD)—R ...... 112,601 (39,832) 72,769 166 Slaughter, L. (NY)—D ...... 136,055 (83,249) 52,806 65 McConnell, M. (R–KY) ...... 117,608 ¥113,755 3,853 61 Johnston, H. (FL)—D ...... 130,685 (58,569) 71,116 167 Kanjorski, P. (PA)—D ...... 136,145 (83,549) 52,596 66 Lott, T. (R–MS) ...... 115,558 ¥113,289 2,269 62 Stokes, L. (OH)—D ...... 131,023 (59,011) 72,012 168 Gillmor, P. (OH)—R ...... 113,401 (60,947) 52,454 67 Domenici, P. (R–NM) ...... 113,763 ¥113,076 687 63 Bishop, S. (GA)—D ...... 133,046 (61,705) 71,341 169 Kennedy, J. (MA)—D ...... 135,871 (83,428) 52,443 68 Bennett, R. (R–UT) ...... 118,656 ¥118,998 ¥342 64 Laughlin, G. (TX)—D ...... 129,656 (58,974) 70,682 170 Coyne, W. (PA)—D ...... 136,205 (84,074) 52,131 69 Gramm, P. (R–TX) ...... 116,963 ¥117,343 ¥380 65 McNulty, M. (NY)—D ...... 132,851 (62,223) 70,628 171 Durbin, R. (IL)—D ...... 135,331 (83,300) 52,031 70 Hatch, O. (R–UT) ...... 118,376 ¥119,900 ¥1,524 66 Synar, M. (OK)—D ...... 129,921 (59,423) 70,498 172 Bacchus, J. (FL)—D ...... 132,887 (80,920) 51,967 71 Burns, C. (R–MT) ...... 116,079 ¥118,112 ¥2,033 67 Clayton, E. (NC)—D ...... 130,160 (59,698) 70,462 173 Furse, E. (OR)—D ...... 134,727 (82,816) 51,911 72 D’Amato, A. (R–NY) ...... 119,056 ¥121,381 ¥2,325 68 Sarpalius, B. (TX)—D ...... 136,659 (67,164) 69,495 174 Edwards, D. (CA)—D ...... 124,699 (72,855) 51,844 73 Thurmond, S. (R–SC) ...... 117,863 ¥120,618 ¥2,755 69 Beilenson, A. (CA)—D ...... 123,210 (54,085) 69,125 175 Markey, E. (MA)—D ...... 136,201 (84,477) 51,724 74 Wallop, M. (R–WY) ...... 96,189 ¥100,419 ¥4,230 70 Olver, J. (MA)—D ...... 136,248 (67,248) 69,000 176 Fields, C. (LA)—D ...... 136,243 (84,672) 51,571 75 Lugar, R. (R–IN) ...... 115,399 ¥120,289 ¥4,890 71 Williams, P. (MI)—D ...... 138,000 (69,030) 68,970 177 Andrews, M. (TX)—D ...... 124,106 (72,551) 51,555 76 Dole, B. (R–KS) ...... 117,684 ¥122,677 ¥4,993 72 Morella, C. (MD)—R ...... 116,854 (48,097) 68,757 178 Studds, G. (MA)—D ...... 135,994 (84,675) 51,319 77 Pressler, L. (R–SD) ...... 113,502 ¥119,079 ¥5,577 73 Gejdenson, S. (CT)—D ...... 133,578 (64,972) 68,606 179 Johnson, T. (SD)—D ...... 134,057 (82,854) 51,203 78 Danforth, J. (R–MO) ...... 119,264 ¥127,421 ¥8,157 74 Conyers, J. (MI)—D ...... 126,861 (58,795) 68,066 180 Young, D. (AK)—R ...... 107,842 (56,885) 50,957 79 Murkowski, F. (R–AK) ...... 111,051 ¥120,295 ¥9,244 75 Rostenkowski, D. (IL)—D ...... 134,763 (66,907) 67,856 181 Neal, S. (NC)—D ...... 116,769 (65,916) 50,853 80 Durenberger, D. (R–MN) ...... 113,712 ¥122,966 ¥9,254 76 Hamilton, L. (IN)—D ...... 133,806 (66,170) 67,636 182 Unsoeld, J. (WA)—D ...... 136,071 (85,252) 50,819 81 Coats, D. (R–IN) ...... 111,932 ¥121,410 ¥9,478 77 Jefferson, W. (LA)—D ...... 133,276 (65,803) 67,473 183 Strickland, T. (OH)—D ...... 136,034 (85,400) 50,634 82 Packwood, B. (R–OR) ...... 110,030 ¥121,330 ¥11,300 78 Torres, E. (CA)—D ...... 133,372 (66,328) 67,044 184 Evans, L. (IL)—D ...... 136,045 (85,511) 50,534 83 Kassebaum, N. (R–KS) ...... 120,090 ¥133,058 ¥12,968 79 Sisisky, N. (VA)—D ...... 117,136 (50,586) 66,550 185 Yates, S. (IL)—D ...... 135,744 (85,592) 50,152 84 Chafee, J. (R–RI) ...... 122,158 ¥136,007 ¥13,849 80 Cantwell, M. (WA)—D ...... 133,291 (66,938) 66,353 186 Stupak, B. (MI)—D ...... 135,875 (85,738) 50,137 85 Warner, J. (R–VA) ...... 104,460 ¥121,462 ¥17,002 81 Machtley, R. (RI)—R ...... 117,118 (50,818) 66,300 187 Lewis, J. (GA)—D ...... 131,820 (81,783) 50,037 86 Roth, W. (R–DE) ...... 95,926 ¥114,511 ¥18,585 82 Mfume, K. (MD)—D ...... 135,916 (69,644) 66,272 188 Sanders, B. (VT)—I ...... 128,991 (79,303) 49,688 87 Helms, J. (R–NC) ...... 91,567 ¥112,912 ¥21,345 83 Diaz-Balart, L. (FL)—R ...... 105,349 (39,199) 66,150 189 Moakley, J. (MA)—D ...... 129,582 (80,030) 49,552 88 Kempthorne, D. (R–ID) ...... 115,281 ¥137,160 ¥21,879 84 Scott, R. (VA)—D ...... 129,072 (62,932) 66,140 190 Brewster, B. (OK)—D ...... 108,809 (59,262) 49,547 89 Craig, L. (R–ID) ...... 115,251 ¥137,160 ¥21,909 85 Maloney, C. (NY)—D ...... 133,215 (67,248) 65,967 191 Mann, D. (OH)—D ...... 111,590 (62,197) 49,393 90 McCain, J. (R–AZ) ...... 111,698 ¥139,708 ¥28,010 86 Lipinski, W. (IL)—D ...... 135,707 (69,875) 65,832 192 Clay, W. (MO)—D ...... 126,983 (77,654) 49,329 91 Cohen, W. (R–ME) ...... 116,295 ¥146,117 ¥29,822 87 Danner, P. (MO)—D ...... 136,122 (70,370) 65,752 193 Vucanovich, B. (NV)—R ...... 109,877 (60,553) 49,324 92 Mack, C. (R–FL) ...... 113,043 ¥143,972 ¥30,929 88 Hochbrueckner (NY)—D ...... 130,549 (64,845) 65,704 194 Walsh, J. (NY)—R ...... 132,037 (83,063) 48,974 93 Coverdell, P. (R–GA) ...... 111,795 ¥142,899 ¥31,104 89 Nadler, J. (NY)—D ...... 132,948 (67,379) 65,569 195 Barlow, T. (KY)—D ...... 133,075 (84,133) 48,942 94 Simpson, A. (R–WY) ...... 98,332 ¥130,480 ¥32,148 90 Mazzoli, R. (KY)—D ...... 133,475 (67,925) 65,550 196 Kaptur, M. (OH)—D ...... 135,191 (86,679) 48,512 95 Nickles, D. (R–OK) ...... 108,958 ¥142,761 ¥33,803 91 Lantos, T. (CA)—D ...... 132,565 (67,248) 65,317 197 Andrews, T. (ME)—D ...... 134,168 (85,669) 48,499 96 Grassley, C. (R–IA) ...... 117,692 ¥152,677 ¥34,985 92 Browder, G. (AL)—D ...... 132,765 (67,654) 65,111 198 Parker, M. (MS)—D ...... 117,776 (69,297) 48,479 97 Faircloth, L. (R–NC) ...... 103,531 ¥139,538 ¥36,007 93 Klein, H. (NJ)—D ...... 132,260 (68,715) 63,545 199 Montgomery, G. (MS)—D ...... 122,661 (74,247) 48,414 98 Brown, H. (R–CO) ...... 103,040 ¥140,292 ¥37,252 94 Visclosky, P. (IN)—D ...... 133,488 (70,124) 63,364 200 Payne, L. (VA)—D ...... 126,508 (78,141) 48,367 99 Gregg, J. (R–NJ) ...... 103,600 ¥144,296 ¥40,696 95 Brown, G. (CA)—D ...... 131,062 (67,969) 63,093 201 Emerson, B. (MO)—R ...... 105,584 (57,296) 48,288 100 Smith, R. (R–NH) ...... 91,214 ¥136,976 ¥45,762 96 Waxman, H. (CA)—D ...... 129,495 (66,453) 63,042 202 Wheat, A. (MO)—D ...... 133,071 (84,832) 48,239 97 Reynolds, M. (IL)—D ...... 133,322 (70,340) 62,982 203 Ros-Lehtinen, I. (FL)—R ...... 101,273 (53,047) 48,226 98 Kildee, D. (MI)—D ...... 133,729 (71,150) 62,579 204 Slattery, J. (KS)—D ...... 125,991 (78,020) 47,971 VOTE TALLY MEMBER REPORT SORTED BY NET 99 LaFalce, J. (NY)—D ...... 132,956 (70,487) 62,469 205 Becerra, X. (CA)—D ...... 134,083 (86,337) 47,746 SPENDING—HOUSE 100 Fowler, T. (FL)—R ...... 117,511 (55,120) 62,391 206 Leach, J. (IA)—R ...... 111,274 (63,586) 47,688 101 Blackwell, L. (PA)—D ...... 133,043 (70,656) 62,387 207 Combest, L. (TX)—R ...... 86,879 (39,267) 47,612 [What Members of Congress voted for in the 103d Congress (figures in 102 English, K. (AZ)—D ...... 131,824 (69,704) 62,120 millions of dollars)] 208 McKinney, C. (GA)—D ...... 132,747 (85,370) 47,377 103 Spence, F. (SC)—R ...... 103,080 (40,981) 62,099 209 Flake, F. (NY)—D ...... 134,476 (87,420) 47,056 104 Frost, M. (TX)—D ...... 133,070 (71,340) 61,730 210 Cooper, J. (TN)—D ...... 130,486 (83,481) 47,005 Name In- Cuts Net 105 Boucher, R. (VA)—D ...... 134,942 (73,222) 61,720 211 Rangel, C. (NY)—D ...... 126,757 (79,759) 46,998 creases 106 Dingell, J. (MI)—D ...... 131,236 (69,533) 61,703 212 Smith, B. (OR)—R ...... 76,561 (29,600) 46,961 107 Applegate, D. (OH)—D ...... 129,120 (68,370) 60,750 213 Oberstar, J. (MN)—D ...... 129,767 (82,993) 46,834 1 Tejeda, F. (TX)—D ...... 141,363 (47,773) 93,590 108 Tucker, W. (CA)—D ...... 130,908 (70,253) 60,655 214 Vento, B. (MN)—D ...... 131,653 (84,926) 46,727 2 Murtha, J. (PA)—D ...... 140,545 (47,492) 93,053 109 Skaggs, D. (CO)—D ...... 133,458 (72,811) 60,647 215 Watt, M. (NC)—D ...... 131,786 (85,282) 46,504 3 Boehlert, S. (NY)—R ...... 136,912 (45,270) 91,642 110 Woolsey, L. (CA)—D ...... 135,699 (75,289) 60,410 216 Pomeroy, E. (ND)—D ...... 133,784 (87,344) 46,440 4 Gonzalez, H. (TX)—D ...... 140,382 (49,191) 91,191 111 Foglietta, T. (PA)—D ...... 133,448 (73,070) 60,378 217 Pastor, E. (AZ)—D ...... 128,259 (81,835) 46,424 5 Clement, B. (TN)—D ...... 131,474 (43,068) 88,406 112 Martinez, M. (CA)—D ...... 135,563 (75,388) 60,175 218 Tanner, J. (TN)—D ...... 131,670 (85,516) 46,154 6 Chapman, J. (TX)—D ...... 139,177 (51,602) 87,575 113 Pickle, J. (TX)—D ...... 131,819 (71,968) 59,851 219 Payne, D. (NJ)—D ...... 131,116 (85,294) 45,822 7 Wise, B. (WV)—D ...... 133,297 (47,577) 85,720 114 Filner, B. (CA)—D ...... 130,125 (70,313) 59,812 220 Miller, G. (CA)—D ...... 134,447 (88,752) 45,695 8 Fazio, V. (CA)—D ...... 133,278 (47,609) 85,669 115 Rahall, N. (WV)—D ...... 130,704 (70,898) 59,806 221 Hoagland, P. (NE)—D ...... 132,702 (87,191) 45,511 9 Dicks, N. (WA)—D ...... 133,328 (47,767) 85,561 116 Lehman, R. (CA)—D ...... 127,920 (68,375) 59,545 222 Johnson, D. (GA)—D ...... 131,875 (87,544) 44,331 10 Darden, G. (GA)—D ...... 133,263 (47,811) 85,452 117 Borski, R. (PA)—D ...... 135,626 (76,251) 59,375 223 Rush, B. (IL)—D ...... 131,997 (87,780) 44,217 11 Peterson, P. (FL)—D ...... 133,241 (47,789) 85,452 118 Shepherd, K. (UT)—D ...... 130,880 (71,552) 59,328 224 Holden, T. (PA)—D ...... 136,034 (92,293) 43,741 12 Bevill, T. (AL)—D ...... 133,165 (47,841) 85,324 119 Wilson, C. (TX)—D ...... 132,332 (73,141) 59,191 225 Kreidler, M. (WA)—D ...... 135,965 (92,527) 43,438 13 Manton, T. (NY)—D ...... 133,056 (57,900) 85,156 120 Carr, B. (MI)—D ...... 132,782 (73,805) 58,977 226 Owens, M. (NY)—D ...... 121,084 (77,737) 43,347 14 Meek, C. (FL)—D ...... 132,765 (47,663) 85,102 121 McCurdy, D. (OK)—D ...... 129,871 (70,988) 58,883 227 Lightfoot, J. (IA)—R ...... 96,061 (52,927) 43,134 15 Ortiz, S. (TX)—D ...... 132,218 (47,340) 84,878 122 Hastings, A. (FL)—D ...... 124,611 (65,777) 58,834 228 Barcia, J. (MI)—D ...... 132,669 (89,812) 42,857 16 Swift, A. (WA)—D ...... 132,523 (48,140) 84,383 123 Waters, M. (CA)—D ...... 128,403 (69,625) 58,778 229 Geren, P. (TX)—D ...... 113,248 (70,661) 42,587 17 Hoyer, S. (MD)—D ...... 133,222 (48,893) 84,329 124 Roemer, T. (IN)—D ...... 115,914 (57,139) 58,775 230 Stark, P. (CA)—D ...... 128,276 (86,378) 41,898 18 Brown, C. (FL)—D ...... 133,224 (49,213) 84,011 125 Mink, P. (HI)—D ...... 133,951 (75,239) 58,712 231 Collins, C. (IL)—D ...... 117,579 (75,819) 41,760 19 DeLauro, R. (CI)—D ...... 133,097 (49,205) 83,892 126 Collins, B. (MI)—D ...... 130,646 (72,086) 58,560 232 Bereuter, D. (NE)—R ...... 94,106 (52,443) 41,663 20 Berman, H. (CA)—D ...... 133,124 (49,327) 83,797 127 Gordon, B. (TN)—D ...... 133,005 (74,449) 58,556 233 Regula, R. (OH)—R ...... 115,493 (74,188) 41,305 21 Kennelly, B. (CT)—D ...... 133,256 (49,553) 83,703 128 Johnson, E. (TX)—D ...... 135,851 (77,427) 58,424 234 Roukema, M. (NJ)—R ...... 98,215 (57,205) 41,010 22 Cramer, R. (AL)—D ...... 131,079 (47,836) 83,243 129 Bonior, D. (MI)—D ...... 135,494 (77,509) 57,985 235 Hayes, J. (LA)—D ...... 109,938 (69,222) 40,716 23 Lancaster, H. (NC)—D ...... 141,669 (59,515) 82,154 130 Hughes, W. (NJ)—D ...... 122,142 (64,546) 57,596 236 Brown, S. (OH)—D ...... 136,089 (95,756) 40,333 24 Roybal-Allard, L. (CA)—D ...... 132,591 (50,597) 81,994 131 Pelosi, N. (CA)—D ...... 136,146 (78,669) 57,477 237 Torricelli, R. (NJ)—D ...... 133,861 (93,755) 40,106 25 Smith, N. (IA)—D ...... 130,221 (48,374) 81,847 132 Hilliard, E. (AL)—D ...... 127,840 (70,623) 57,217 238 Sangmeister, G. (IL)—D ...... 136,095 (96,172) 39,923 26 Gephardt, R. (MO)—D ...... 133,462 (51,699) 81,763 133 Deutsch, P. (FL)—D ...... 135,305 (78,163) 57,142 239 Stearns, C. (FL)—R ...... 89,425 (49,647) 39,778 27 Hall, T. (OH)—D ...... 135,102 (53,743) 81,359 134 Baesler, S. (KY)—D ...... 131,843 (74,887) 56,956 240 Serrano, J. (NY)—D ...... 127,638 (87,924) 39,714 28 Sawyer, T. (OH)—D ...... 133,549 (52,280) 81,269 135 Ford, H. (TN)—D ...... 112,243 (55,410) 56,833 241 Foley, T. (WA)—D ...... 75,302 (35,590) 39,712 29 de la Garza, E (TX)—D ...... 132,460 (51,281) 81,179 136 Hamburg, D. (CA)—D ...... 131,907 (75,315) 56,592 242 Molinari, S. (NY)—R ...... 112,661 (73,230) 39,431 30 Gibbons, S. (FL)—D ...... 131,598 (50,571) 81,027 137 Towns, E. (NY)—D ...... 131,897 (75,597) 56,300 243 Kim, J. (CA)—R ...... 112,313 (73,194) 39,119 April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4199 VOTE TALLY MEMBER REPORT SORTED BY NET VOTE TALLY MEMBER REPORT SORTED BY NET VOTE TALLY STATE DELEGATION REPORT—Continued SPENDING—HOUSE—Continued SPENDING—HOUSE—Continued—Continued [What Members of Congress voted for in the 103d Congress (figures in [What Members of Congress voted for in the 103d Congress (figures in [What Members of Congress voted for in the 103d Congress (figures in millions of dollars)] millions of dollars)] millions of dollars)] Name In- Cuts Net In- In- creases Name creases Cuts Net Name creases Cuts Net ARIZONA 244 Dellums, R. (CA)—D ...... 174,443 (85,450) 38,993 352 Boehner, J. (OH)—R ...... 71,804 (66,717) 5,087 DeConcini (D–AZ) ...... 137,812 (95,895) 41,937 245 Wyden, R. (OR)—D ...... 126,217 (87,274) 38,943 353 Dickey, J. (AR)—R ...... 91,151 (86,130) 5,021 McCain (R–AZ) ...... 111,698 (139,708) (28,010) 246 Deal, N. (GA)—D ...... 118,788 (80,398) 38,390 354 Goodling, B. (PA)—R ...... 98,168 (93,254) 4,914 Coppersmith (D–AZ) ...... 117,093 (63,054) 54,039 247 Klink, R. (PA)—D ...... 136,088 (97,919) 38,169 355 Kasich, J. (OH)—r ...... 93,919 (89,098) 4,821 English (D–AZ) ...... 131,824 (69,704) 62,120 248 Torkildsen, P. (MA)—R ...... 119,938 (81,861) 38,077 356 Weldon, C. (PA)—R ...... 91,001 (86,258) 4,743 Kolbe (R–AZ) ...... 99,503 (82,210) 17,293 249 Green, G. (TX)—D ...... 117,418 (79,844) 37,574 357 Sundquist, D. (IN)—R ...... 96,191 (91,745) 4,446 250 Barrett, T. (WI)—D ...... 129,832 (92,871) 36,961 358 Hutchinson, T. (AR)—R ...... 94,931 (90,577) 4,354 Kyl (R–AZ) ...... 81,769 (76,110) 5,659 251 Skeen, J. (NM)—R ...... 112,479 (75,564) 36,915 359 Wolf, F. (VA)—R ...... 94,060 (90,009) 4,051 Pastor (D–AZ) ...... 128,259 (81,835) 46,424 252 Rowland, J. (GA)—D ...... 109,857 (73,388) 36,469 360 Castle, M. (DE)—R ...... 89,461 (85,686) 3,775 Stump (R–AZ) ...... 69,828 (41,271) 28,557 253 Cardin, B. (MD)—D ...... 133,856 (97,578) 36,278 361 Lewis, T. (FL)—R ...... 82,691 (79,105) 3,586 254 Velazquez, N. (NY)—D ...... 127,188 (90,925) 36,263 362 Porter, J. (IL)—R ...... 96,466 (93,657) 2,809 ARKANSAS 255 Frank, B. (MA)—D ...... 124,628 (88,555) 36,073 363 Crapo, M. (ID)—R ...... 74,138 (71,766) 2,372 Bumpers (D–AR) ...... 133,128 (65,901) 67,227 256 Snowe, O. (ME)—R ...... 123,710 (87,709) 36,001 364 Bonilla, H. (TX)—R ...... 95,946 (94,297) 1,649 Pryor (D–AR) ...... 130,554 (66,918) 63,616 257 Farr, S. (CA)—D ...... 109,731 (73,906) 35,825 365 Penny, T. (MN)—D ...... 111,140 (110,111) 1,029 258 Roberts, P. (KS)—R ...... 89,179 (53,720) 35,459 366 Goss, P. (FL)—R ...... 71,039 (70,567) 472 Dickey (R–AR) ...... 91,151 (86,130) 5,021 259 Thompson, B. (MS)—D ...... 111,728 (76,771) 34,957 367 Gingrich, N. (GA)—R ...... 84,287 (83,872) 415 Hutchinson (R–AR) ...... 94,931 (90,577) 4,354 260 Barrett, B. (NE)—R ...... 98,965 (64,067) 34,898 368 Fields, J. (TX)—R ...... 65,879 (65,861) 18 Lambert (D–AR) ...... 134,547 (119,193) 15,354 261 McHale, P. (PA)—D ...... 135,817 (101,176) 34,641 369 Stenholm, C. (TX)—D ...... 92,638 (92,702) (64) Thornton (D–AR) ...... 135,134 (56,709) 78,425 262 Clinger, W. (PA)—R ...... 104,552 (71,143) 33,409 370 Cox, C. (CA)—R ...... 69,678 (69,808) (130) 263 Smith, C. (NJ)—R ...... 119,676 (86,449) 33,227 371 Manzullo, D. (IL)—R ...... 84,545 (85,360) (815) CALIFORNIA 264 Bateman, H. (VA)—R ...... 106,621 (73,802) 32,819 372 Delay, T. (TX)—R ...... 72,114 (73,433) (1,319) Boxer (D–CA) ...... 140,993 (54,218) 86,775 265 Lazio, R. (NY)—R ...... 101,259 (68,809) 32,450 373 Taylor, C. (NC)—R ...... 75,562 (76,931) (1,369) 266 Callahan, S. (AL)—R ...... 83,227 (50,907) 32,320 374 Schaefer, D. (CO)—R ...... 62,397 (64,193) (1,796) Feinstein (D–CA) ...... 132,138 (51,370) 80,768 267 Andrews, R. (NJ)—D ...... 118,812 (86,934) 31,878 375 Armey, D. (TX)—R ...... 66,063 (67,890) (1,827) Baker (R–CA) ...... 74,799 (78,815) (4,016) 268 McDade, J. (PA)—R ...... 109,525 (78,081) 31,444 376 Bacgus, S. (AL)—R ...... 76,529 (79,254) (2,725) Becerra (D–CA) ...... 137,670 (87,833) 49,837 269 Jacobs, A. (IN)—D ...... 114,071 (83,108) 30,963 377 Schiff, S. (NM)—R ...... 96,741 (99,656) (2,915) Beilenson (D–CA) ...... 128,024 (55,597) 72,427 270 Canady C. (FL)—R ...... 94,433 (63,566) 30,867 378 Baker, B. (CA)—R ...... 74,768 (77,838) (3,070) Berman (D–CA) ...... 137,047 (50,800) 86,247 271 Washington, C. (TX)—D ...... 98,221 (67,452) 30,769 379 Shuster, B. (PA)—R ...... 81,291 (84,389) (3,098) Brown, G (D–CA) ...... 135,173 (65,532) 69,641 272 DeFazio, P. (OR)—D ...... 112,003 (81,768) 30,235 380 Mica, J. (FL)—R ...... 83,082 (86,383) (3,301) Calvert (R–CA) ...... 102,699 (78,647) 24,052 273 Levy, D. (NY)—R ...... 97,636 (67,711) 29,925 380 Grams, R. (MN)—R ...... 66,974 (70,275) (3,301) Condit (D–CA) ...... 115,854 (97,670) 18,184 274 Long, J. (IN)—D ...... 134,135 (104,384) 29,751 382 Everett, T. (AL)—R ...... 92,379 (95,818) (3,439) Cox (R–CA) ...... 68,959 (69,864) (905) 275 Hefley, J. (CO)—R ...... 74,007 (44,367) 29,640 383 Bliley, T. (VA)—R ...... 84,660 (88,240) (3,580) Cunningham (R–CA) ...... 93,751 (102,314) (8,563) 276 King, P. (NY)—R ...... 94,194 (64,718) 29,476 384 Solomon, G. (NY)—R ...... 67,851 (71,579) (3,728) Dellums (D–CA) ...... 129,203 (86,911) 42,292 277 Gilchrest, T. (MD)—R ...... 117,374 (88,017) 29,357 385 Michel, R. (IL)—R ...... 84,049 (87,819) (3,770) Dixon (D–CA) ...... 140,550 (57,899) 82,651 278 Dornan, R. (CA)—R ...... 70,554 (41,368) 29,186 386 Santorum, R. (PA)—R ...... 91,135 (94,914) (3,779) Dooley (D–CA) ...... 135,131 (103,887) 31,244 279 Allard, W. (CO)—R ...... 76,951 (47,788) 29,163 387 Cunningham, R. (CA)—R ...... 88,510 (92,438) (3,928) Doolittle (R–CA) ...... 66,041 (89,544) (23,503) 280 Lewis, J. (CA)—R ...... 107,912 (78,838) 29,074 388 Greenwood, J. (PA)—R ...... 103,726 (107,694) (3,968) Dornan (R–CA) ...... 69,447 (41,442) 28,005 281 Houghton, A. (NY)—R ...... 113,776 (85,066) 28,710 389 Inhofe, J. (OK)—R ...... 64,351 (68,642) (4,291) Dreier (R–CA) ...... 70,191 (84,277) (14,086) 282 Stump, B. (AZ)—R ...... 69,828 (41,271) 28,577 390 Packard, R. (CA)—R ...... 81,520 (85,919) (4,399) Edwards, D (D–CA) ...... 129,473 (74,367) 55,106 283 Dooley, C. (CA)—D ...... 130,330 (102,428) 27,902 391 Gekas, G. (PA)—R ...... 83,847 (88,304) (4,457) Eshoo (D–CA) ...... 139,611 (80,580) 59,031 284 Inslee, J. (WA)—D ...... 134,108 (106,326) 27,782 392 Upton, F. (MI)—R ...... 113,730 (119,172) (5,442) Farr (D–CA) ...... 110,293 (68,790) 41,503 285 Hall, R. (TX)—D ...... 103,847 (76,141) 27,706 393 Johnson, S. (TX)—R ...... 64,697 (71,164) (6,467) Fazio (D–CA) ...... 138,101 (49,121) 88,980 286 Fish, H. (NY)—R ...... 115,328 (87,667) 27,661 394 Hunter, D. (CA)—R ...... 81,272 (88,508) (7,236) 287 Kingston, J. (GA)—R ...... 87,286 (59,930) 27,356 395 Barca, P. (WI)—D ...... 98,012 (105,688) (7,676) Filner (D–CA) ...... 134,813 (71,825) 62,988 288 Grandy, F. (IA)—R ...... 102,787 (77,665) 25,122 396 McMillan, A. (NC)—R ...... 100,292 (108,494) (8,202) Gallegly (R–CA) ...... 96,618 (89,958) 6,660 289 McHugh, J. (NY)—R ...... 95,105 (70,325) 24,780 397 Walker, R. (PA)—R ...... 60,943 (69,783) (8,840) Hamburg (D–CA) ...... 133,657 (76,827) 56,830 290 Fingerhut, E. (OH)—D ...... 113,373 (88,677) 24,696 398 Johnson, N. (CT)—R ...... 98,841 (108,139) (9,298) Harman (D–CA) ...... 137,040 (59,360) 77,680 291 Calvert, K. (CA)—R ...... 101,960 (77,478) 24,482 399 Fawell, H. (IL)—R ...... 78,104 (87,618) (9,514) Herger (R–CA) ...... 72,438 (92,211) (19,783) 292 Poshard, G. (IL)—D ...... 133,523 (109,126) 24,397 400 Moorhead, C. (CA)—R ...... 71,534 (82,590) (10,056) Horn (R–CA) ...... 114,207 (101,517) 12,690 293 Blute, P. (MA)—R ...... 117,151 (92,971) 24,180 401 Pombo, R. (CA)—R ...... 79,667 (90,580) (10,913) Huffington (R–CA) ...... 95,233 (39,892) 55,341 294 Burton, D. (IN)—R ...... 81,826 (57,877) 23,939 402 Hoke, M. (OH)—R ...... 74,439 (85,429) (10,990) Hunter (R–CA) ...... 84,581 (97,514) (12,933) 295 Schroeder, P. (CO)—D ...... 117,890 (94,438) 23,452 403 Petri, T. (WI)—R ...... 65,995 (78,148) (12,153) Kim (R–CA) ...... 112,267 (73,255) 39,012 296 Minge, D. (MN)—D ...... 116,973 (93,856) 23,117 404 Thomas, C. (WY)—R ...... 80,843 (94,142) (13,299) Lantos (D–CA) ...... 137,512 (68,709) 68,803 297 Margolies-Mezv, (PA)—D ...... 117,351 (94,689) 22,262 405 Collins, M. (GA)—R ...... 75,886 (90,412) (14,526) Lehman (D–CA) ...... 132,567 (69,735) 62,832 298 Bartlett, R. (MD)—R ...... 90,787 (68,774) 22,013 406 Franks, B. (NJ)—R ...... 83,517 (98,412) (14,895) Lewis (R–CA) ...... 108,670 (80,057) 28,613 299 Orton, B. (UT)—D ...... 98,477 (76,968) 21,509 407 Dreier, D. (CA)—R ...... 68,710 (84,560) (15,850) Martinez (D–CA) ...... 140,397 (76,900) 63,497 300 Gallo, D. (NJ)—R ...... 102,380 (81,200) 21,180 408 Inglis, B. (SC)—R ...... 72,616 (89,009) (16,393) Matsui (D–CA) ...... 139,358 (58,752) 80,606 301 Murphy, A. (PA)—D ...... 117,285 (96,225) 21,060 409 Istook, E. (OK)—R ...... 70,383 (87,137) (16,754) McCandless (R–CA) ...... 78,321 (65,268) 13,053 302 McCollum, B. (FL)—R ...... 86,428 (66,143) 20,295 410 Ewing, T. (IL)—R ...... 90,344 (109,384) (19,140) McKeon (R–CA) ...... 86,349 (80,965) 5,384 303 Bilirakis, M. (FL)—R ...... 111,730 (91,474) 20,256 411 Portman, R. (OH)—R ...... 70,694 (89,944) (19,250) Miller, G (D–CA) ...... 139,122 (90,264) 48,858 304 Larocco, L. (ID)—D ...... 131,628 (112,089) 19,539 412 Roth, T. (WI)—R ...... 63,570 (83,398) (19,828) Mineta (D–CA) ...... 136,052 (59,457) 76,595 305 Hutto, E. (FL)—D ...... 98,320 (79,123) 19,197 413 Herger, W. (CA)—R ...... 71,660 (92,493) (20,833) Moorhead (R–CA) ...... 72,312 (82,318) 10,006 306 Livingston, R. (LA)—R ...... 106,973 (88,408) 18,565 414 Smith, N. (MI)—R ...... 62,611 (83,827) (21,216) Packard (R–CA) ...... 82,099 (86,177) (4,078) 307 Hyde, H. (IL)—R ...... 94,185 (76,478) 17,707 415 Paxon, B. (NY)—R ...... 58,374 (80,005) (21,631) Pelosi (D–CA) ...... 140,834 (80,181) 60,653 308 Young, C. (FL)—R ...... 112,386 (94,847) 17,539 416 Hansen, J. (UT)—R ...... 78,105 (100,181) (22,076) Pombo (R–CA) ...... 76,111 (90,302) (14,191) 309 Goodlatte, R. (VA)—R ...... 74,768 (57,421) 17,347 417 Duncan, J. (TN)—R ...... 64,137 (86,559) (22,422) Rohrabacher (R–CA) ...... 68,473 (105,263) (36,790) 310 Kolbe, J. (AZ)—R ...... 99,503 (82,210) 17,293 418 Doolittle, J. (CA)—R ...... 66,669 (89,816) (23,147) 311 Meyers, J. (KS)—R ...... 105,890 (89,016) 16,874 419 Ballenger, C. (NC)—R ...... 74,183 (97,923) (23,740) Roybal-Allard (D–CA) ...... 137,426 (52,109) 85,317 312 Valentine, T. (NC)—D ...... 111,821 (95,042) 16,779 420 Camp, D. (MI)—R ...... 95,088 (119,653) (24,565) Royce (R–CA) ...... 71,028 (109,971) (38,943) 313 Ridge, T. (PA)—R ...... 108,188 (92,187) 16,001 421 Shays, C. (CT)—R ...... 87,608 (112,645) (25,037) Schenk (D–CA) ...... 138,363 (81,659) 36,704 314 Hoekstra, P. (MI)—R ...... 96,995 (81,066) 15,929 422 Bunning, J. (KY)—R ...... 61,945 (88,179) (26,234) Stark (D–CA) ...... 127,647 (87,829) 39,818 315 McCandless, A. (CA)—R ...... 80,914 (65,005) 15,909 423 Miller, D. (FL)—R ...... 71,308 (97,554) (26,246) Thomas, B (R–CA) ...... 97,174 (89,012) 8,162 316 Smith, L. (TX)—R ...... 94,953 (79,108) 15,845 424 Ramstad, J. (MN)—R ...... 75,533 (102,537) (27,004) Torres (D–CA) ...... 137,196 (67,840) 69,356 317 Dunn, J. (WA)—R ...... 82,033 (66,335) 15,698 425 Barton, J. (TX)—R ...... 63,541 (91,227) (27,686) Tucker (D–CA) ...... 136,399 (67,466) 68,933 318 Condit, G. (CA)—D ...... 111,786 (96,357) 15,429 426 Zimmer, D. (NJ)—R ...... 72,441 (103,701) (31,260) Waters (D–CA) ...... 133,217 (71,137) 62,080 319 Lambert, B. (AR)—D ...... 134,547 (119,193) 15,354 427 Crane, P. (IL)—R ...... 56,922 (88,955) (32,033) Waxman (D–CA) ...... 134,328 (67,965) 66,363 320 Archer, B. (TX)—R ...... 59,069 (43,841) 15,228 428 Coble, H. (NC)—R ...... 79,221 (111,406) (32,185) Woolsey (D–CA) ...... 140,508 (76,801) 63,707 321 Peterson, C. (MN)—D ...... 117,450 (102,774) 14,676 429 Rohrabacher, D. (CA)—R ...... 68,584 (105,546) (36,962) 322 Meehan, M. (MA)—D ...... 135,375 (120,729) 14,646 430 Royce, E. (CA)—R ...... 72,229 (110,243) (38,014) COLORADO 323 Mcinnis, S. (CO)—R ...... 72,873 (58,742) 14,131 431 Nussle, J. (IA)—R ...... 77,293 (116,620) (39,327) 324 McCrery, J. (LA)—R ...... 100,333 (86,945) 13,388 432 Sensenbrenner, F. (WI)—R ...... 56,113 (106,430) (50,317) Brown, H. (R–CO) ...... 103,040 (140,292) (37,252) 325 Hancock, M. (MO)—R ...... 58,513 (45,127) 13,386 Campbell, B. (D–CO) ...... 127,361 (51,818) 75,543 326 Buyer, S. (IN)—R ...... 94,089 (81,664) 12,425 Allard (R–CO) ...... 76,951 (47,788) 29,163 327 Zekuff, B. (NH)—R ...... 79,479 (67,294) 12,176 VOTE TALLY STATE DELEGATION REPORT Hefley (R–CO) ...... 74,007 (44,367) 29,640 328 Tauzin, W. (LA)—D ...... 112,409 (100,269) 12,140 [What Members of Congress voted for in the 103d Congress (figures in McInnis (R–CO) ...... 72,873 (58,742) 14,131 329 Shaw, E. (FL)—R ...... 97,003 (85,295) 11,708 millions of dollars)] Schaefer (R–CO) ...... 62,397 (64,193) (1,796) 330 Hastert, D. (IL)—R ...... 96,879 (85,496) 11,383 Schroeder (D–CO) ...... 117,890 (94,.438) 23,452 331 Ravenel, A. (SC)—R ...... 116,390 (105,123) 11,267 Skaggs (D–CO) ...... 133,458 (72,811) 60,647 332 Thomas, B. (CA)—R ...... 98,510 (87,775) 10,735 Name In- Cuts Net 333 Quinn, J. (NY)—R ...... 96,639 (86,354) 10,285 creases CONNECTICUT 334 Taylor, G. (MS)—D ...... 97,103 (86,878) 10,225 Dodd (D–CT) ...... 126,256 (47,002) 79,254 335 Franks, G. (CT)—R ...... 99,359 (89,472) 9,887 ALABAMA Lieberman (D–CT) ...... 122,816 (95,098) 27,718 336 Baker, R. (LA)—R ...... 93,284 (83,613) 9,671 DeLauro (D–CT) ...... 133,097 (49,205) 83,892 337 Horn, S. (CA)—R ...... 109,439 (100,148) 9,281 Heflin (D–AL) ...... 133,490 (57,768) 75,722 Franks (R–CT) ...... 99,359 (89,472) 9,887 338 Talent, J. (MO)—R ...... 87,618 (78,445) 9,173 Shelby (D–AL) ...... 117,660 (92,487) 25,173 339 Gallegly, E. (CA)—R ...... 97,808 (88,778) 9,030 Gejdenson (D–CT) ...... 133,578 (64,972) 68,606 Bachus (R–AL) ...... 76,529 (79,254) (2,725) Johnson (R–CT) ...... 98,841 (108,139) (9,298) 340 Myers, J. (IN)—R ...... 92,448 (83,657) 8,791 Bevill (D–AL) ...... 133,163 (47,841) 85,324 341 Gunderson, S. (WI)—R ...... 97,717 (88,982) 8,735 Kennelly (D–CT) ...... 133,256 (49,553) 83,703 Browder (D–AL) ...... 132,765 (67,654) 65,111 Shays (R–CT) ...... 87,608 (112,645) (25,037) 342 Klug, S. (WI)—R ...... 88,482 (79,847) 8,635 Calahan (R–AL) ...... 83,227 (50,907) 32,320 343 Quilen, J. (TN)—R ...... 92,083 (83,848) 8,235 Cramer (D–AL) ...... 131,079 (47,836) 83,243 DELAWARE 344 Mckeon, H. (CA)—R ...... 88,758 (80,696) 8,062 Everett (R–AL) ...... 92,379 (95,818) 3,439 345 Pryce, D. (OH)—R ...... 107,963 (99,910) 8,053 Hilliard (D–AL) ...... 127,840 (70,623) 57,217 Biden (D–DE) ...... 130,708 (46,815) 83,893 346 Oxley, M. (OH)—R ...... 86,516 (79,548) 6,968 Roth (R–DE) ...... 95,926 (114,511) (18,585) 347 Knollenberg, J. (MI)—R ...... 75,492 (69,738) 5,754 ALASKA Castle (R–DE) ...... 89,461 (85,686) 3,775 348 Kyl, J. (AZ)—R ...... 81,769 (76,110) 5,659 349 Hobson, D. (OH)—R ...... 107,143 (101,560) 5,583 Murkowski (R–AK) ...... 111,051 (120,295) (9,244) FLORIDA 350 Linder, J. (GA)—R ...... 83,347 (78,226) 5,121 Stevens (R–AK) ...... 122,046 (97,887) 24,159 351 Saxton, H. (NJ)—R ...... 96,489 (91,386) 5,103 Young (R–AK) ...... 107,842 (56,885) 50,957 Graham, B. (D–FL) ...... 129,093 (71,883) 57,210 H 4200 CONGRESSIONAL RECORD — HOUSE April 5, 1995 VOTE TALLY STATE DELEGATION REPORT—Continued VOTE TALLY STATE DELEGATION REPORT—Continued— VOTE TALLY STATE DELEGATION REPORT—Continued— [What Members of Congress voted for in the 103d Congress (figures in Continued Continued millions of dollars)] [What Members of Congress voted for in the 103d Congress (figures in [What Members of Congress voted for in the 103d Congress (figures in millions of dollars)] millions of dollars)] In- Name creases Cuts Net Name In- Cuts Net In- creases Name creases Cuts Net Mack (R–FL) ...... 113,043 (143,972) (30,929) Bacchus (D–FL) ...... 132,887 (80,920) 51,967 Bilirakis (R–FL) ...... 111,730 (91,474) 20,256 Slattery (D–KS) ...... 125,991 (78,020) 47,971 Skelton (D–MO) ...... 130,804 (55,373) 75,431 Brown (D–FL) ...... 133,224 (49,213) 84,011 Talent (R–MO) ...... 87,618 (78,445) 9,173 Canady (R–FL) ...... 94,433 (63,566) 30,867 KENTUCKY Volkmer (D–MO) ...... 131,029 (54,470) 76,559 Wheat (D–MO) ...... 133,071 (84,832) 48,239 Deutsch (D–FL) ...... 135,305 (78,163) 57,142 Ford (D–KY) ...... 130,732 (49,714) 81,018 Diaz-Balart (R–FL) ...... 105,349 (39,199) 66,150 McConnell (R–KY) ...... 117,608 (113,755) 3,853 Fowler (R–FL) ...... 117,511 (55,120) 62,391 Baesler (D–KY) ...... 131,843 (74,887) 56,956 MONTANA Gibbons (D–FL) ...... 131,598 (50,571) 81,027 Barlow (D–KY) ...... 133,075 (84,133) 48,942 Baucus (D–MT) ...... 129,869 (79,774) 50,095 Goss (R–FL) ...... 71,039 (70,567) 472 Bunning (R–KY) ...... 61,945 (88,179) 26,234 Burns (R–MT) ...... 116,079 (118,112) (2,033) Hastings (D–FL) ...... 124,611 (65,777) 58,834 Mazzoli (D–KY) ...... 133,475 (67,925) 65,550 Williams (D–MT) ...... 138,000 (69,030) 68,970 Hutto (D–FL) ...... 98,320 (79,123) 19,197 Rogers (R–KY) ...... 129,359 (52,075) 77,284 Johnston (D–FL) ...... 130,685 (58,569) 72,116 NEBRASKA Lewis (R–FL) ...... 82,691 (79,105) 3,586 LOUISIANA McCollum (R–FL) ...... 86,438 (66,143) 20,295 Exon (D–NE) ...... 130,612 (89,195) 41,417 Meek (D–FL) ...... 132,765 (47,663) 85,102 Breaux (D–LA) ...... 130,572 (45,993) 84,579 Kerrey, R. (D–NE) ...... 127,183 (95,574) 31,609 Mica (R–FL) ...... 83,082 (86,383) (3,301) Johnston (D–LA) ...... 127,122 (31,700) 95,422 Barrett (R–NE) ...... 98,965 (64,067) 34,898 Miller (R–FL) ...... 71,308 (97,554) (26,246) Baker (R–LA) ...... 93,284 (83,613) 9,671 Bereuter (R–NE) ...... 94,106 (52,443) 41,663 Peterson (D–FL) ...... 133,241 (47,789) 85,452 Fields (D–LA) ...... 136,243 (84,672) 51,571 Hoagland (D–NE) ...... 132,702 (87,191) 45,511 Ros-Lehtinen (R–FL) ...... 101,273 (53,047) 48,226 Hayes (D–LA) ...... 109,938 (69,222) 40,716 Shaw (R–FL) ...... 97,003 (85,295) 11,708 Jefferson (D–LA) ...... 133,276 (65,803) 67,473 NEVADA Stearns (R–FL) ...... 89,425 (49,647) 39,778 Livingston (R–LA) ...... 106,973 (88,408) 18,565 Thurman (D–FL) ...... 132,997 (79,204) 53,793 McCrery (R–LA) ...... 100,333 (86,945) 13,388 Bryan (D–NV) ...... 132,582 (44,342) 88,240 Young (R–FL) ...... 112,386 (94,847) 17,539 Tauzin (D–LA) ...... 112,409 (100,269) 12,140 Reid (D–NV) ...... 132,610 (48,449) 84,161 Bilbray (D–NV) ...... 133,633 (55,667) 77,966 GEORGIA MAINE Vucanovich (R–NV) ...... 109,877 (60,553) 49,324 Cohen (R–ME) ...... 116,295 (146,117) (29,822) Coverdell (R–GA) ...... 111,795 (142,899) (31,104) NEW HAMPSHIRE Nunn (D–GA) ...... 127,354 (69,730) 57,624 Mitchell (D–ME) ...... 127,308 (52,668) 74,640 Bishop (D–GA) ...... 133,046 (61,705) 71,341 Andrews (D–ME) ...... 134,168 (85,669) 48,499 Gregg (R–NH) ...... 103,600 (144,296) 40,696 Collins (R–GA) ...... 75,886 (90,412) (14,526) Snowe (R–ME) ...... 123,710 (87,709) 36,001 Smith, R.C. (R–NH) ...... 91,214 (136,976) 45,762 Darden (D–GA) ...... 133,263 (47,811) 85,452 Swett (D–NH) ...... 131,083 (75,590) 55,493 Deal (D–GA) ...... 118,788 (80,398) 38,390 MARYLAND Zeliff (R–NH) ...... 79,470 (67,294) 12,176 Gingrich (R–GA) ...... 84,287 (83,872) 415 Mikulski (D–MD) ...... 128,823 (45,826) 82,997 Johnson (D–GA) ...... 131,875 (87,544) 44,331 NEW JERSEY Kingston (R–GA) ...... 87,286 (59,930) 27,356 Sarbanes (D–MD) ...... 127,332 (47,571) 79,761 Lewis (D–GA) ...... 131,820 (81,783) 50,037 Bartlett (R–MD) ...... 90,787 (68,774) 22,013 Bradley (D–NJ) ...... 129,639 (59,336) 70,303 Linder (R–GA) ...... 83,347 (78,226) 5,121 Bentley (R–MD) ...... 112,601 (39,832) 72,769 Lautenberg (D–NJ) ...... 136,633 (74,425) 62,208 McKinney (D–GA) ...... 132,747 (85,370) 47,377 Cardin (D–MD) ...... 133,856 (97,578) 36,278 Andrews (D–NJ) ...... 118,812 (86,934) 31,878 Rowland (D–GA) ...... 109,857 (73,388) 36,469 Gilchrest (R–MD) ...... 117,374 (88,018) 29,357 Franks (R–NJ) ...... 83,517 (98,412) (14,895) Hoyer (D–MD) ...... 133,222 (48,893) 84,329 Gallo (R–NJ) ...... 102,380 (81,200) 21,180 HAWAII Mfume (D–MD) ...... 135,916 (69,644) 66,272 Hughes (D–NJ) ...... 122,142 (64,546) 57,596 Morella (R–MD) ...... 116,854 (48,097) 68,757 Klein (D–NJ) ...... 132,260 (68,715) 63,545 Akaka (D–HI) ...... 130,732 (47,884) 82,848 Wynn (D–MD) ...... 136,193 (81,292) 54,901 Menendez (D–NJ) ...... 133,872 (80,884) 52,988 Inouye (D–HI) ...... 130,702 (46,352) 84,350 Pallone (D–NJ) ...... 113,692 (59,576) 54,116 Abercrombie (D–HI) ...... 136,002 (80,623) 55,379 MASSACHUSETTS Payne (D–NJ) ...... 131,116 (85,294) 45,822 Mink (D–HI) ...... 133,951 (75,239) 58,712 Kennedy (D–MA) ...... 127,256 (51,079) 76,177 Roukema (R–NJ) ...... 98,215 (57,205) 41,010 Saxton (R–NJ) ...... 96,489 (91,386) 5,103 IDAHO Kerry J. (D–MA) ...... 127,332 (62,446) 64,886 Blute (R–MA) ...... 117,151 (92,971) 24,180 Smith (R–NJ) ...... 119,676 (86,449) 33,227 Craig (R–ID) ...... 115,251 (137,160) (21,909) Frank (D–MA) ...... 124,628 (88,555) 36,073 Torricelli (D–NJ) ...... 133,861 (93,755) 40,106 Kempthorne (R–ID) ...... 115,281 (137,160) (21,879) Kennedy (D–MA) ...... 135,871 (83,428) 52,443 Zimmer (R–NJ) ...... 72,441 (103,701) (31,260) Crapo (R–ID) ...... 74,138 (71,766) 2,372 Markey (D–MA) ...... 136,201 (84,477) 51,724 LaRocco (D–ID) ...... 131,628 (112,089) 19,539 Meehan (D–MA) ...... 135,375 (120,729) 14,646 Moakley (D–MA) ...... 129,582 (80,030) 49,552 NEW MEXICO ILLINOIS Neal (D–MA) ...... 135,123 (78,926) 56,197 Bingaman (D–NM) ...... 125,602 (56.267) 69,335 Olver (D–MA) ...... 136,248 (67,248) 69,000 Moseley-Braun (D–IL) ...... 134,553 (50,324) 84,229 Domenici (R–NM) ...... 113,763 (113,076) 687 Studds (D–MA) ...... 135,994 (84,675) 51,319 Richardson (R–NM) ...... 132,345 (52,617) 79,728 Simon (D–IL) ...... 134,777 (82,337) 52,440 Torkildsen (R–MA) ...... 119,938 (81,861) 38,077 Collins (D–IL) ...... 117,579 (75,819) 41,760 Schiff (R–NM) ...... 96,741 (99,656) (2,945) Skeen (R–NM) ...... 112,179 (75,564) 36,915 Costello (D–IL) ...... 134,522 (81,139) 53,383 MICHIGAN Crane (R–IL) ...... 56,922 (88,955) (32,033) Durbin (D–IL) ...... 135,331 (83,300) 52,031 Levin (D–MI) ...... 127,302 (61,256) 66,046 NEW YORK Evans (D–IL) ...... 136,045 (85,511) 50,534 Riegle (D–MI) ...... 128,496 (47,037) 81,459 D’Amato (R–NY) ...... 119,056 (121,381) (2,325) Ewing (R–IL) ...... 90,244 (109,384) (19,140) Barcia (D–MI) ...... 132,669 (89,812) 42,857 Moynihan (D–NY) ...... 129,613 (54,602) 75,011 Fawell (R–IL) ...... 78,104 (87,618) (9,514) Bonior (D–MI) ...... 135,494 (77,509) 57,985 Ackerman (D–NY) ...... 131,936 (54,784) 77,172 Gutierrez (D–IL) ...... 127,792 (72,618) 55,174 Camp (R–MI) ...... 95,088 (119,653) (24,565) Boehlert (R–NY) ...... 136,912 (45,270) 91,642 Hastert (R–IL) ...... 96,879 (85,496) 11,383 Carr (D–MI) ...... 132,782 (73,805) 58,977 Engel (D–NY) ...... 135,678 (81,675) 54,003 Hyde (R–IL) ...... 94,185 (76,478) 17,707 Collins (D–MI) ...... 130,646 (72,086) 58,560 Fish (R–NY) ...... 115,328 (87,667) 27,661 Lipinski (D–IL) ...... 135,707 (69,875) 65,832 Conyers (D–MI) ...... 126,861 (58,795) 68,066 Flake (D–NY) ...... 134,476 (87,420) 47,056 Manzullo (R–IL) ...... 84,545 (85,360) (815) Dingell (D–MI) ...... 131,236 (69,533) 61,703 Gilman (R–NY) ...... 110,441 (57,314) 53,127 Michel (R–IL) ...... 84,049 (87,819) (3,770) Ford (D–MI) ...... 127,978 (72,795) 55,183 Hinchey (D–NY) ...... 135,659 (81,733) 53,926 Porter (R–IL) ...... 96,466 (93,657) 2,809 Hoekstra (R–MI) ...... 96,995 (81,066) 15,929 Hochbrueck (D–NY) ...... 130,549 (64,845) 65,704 Poshard (D–IL) ...... 133,523 (109,126) 24,397 Kildee (D–MI) ...... 133,729 (71,150) 62,579 Houghton (R–NY) ...... 113,776 (85,066) 28,710 Reynolds (D–IL) ...... 133,322 (70,340) 62,982 Knollenberg (R–MI) ...... 75,492 (69,738) 5,754 King (R–NY) ...... 94,194 (64,718) 29,476 Rostenkowski (D–IL) ...... 134,763 (66,907) 67,856 Levin (D–MI) ...... 133,080 (55,338) 77,742 LaFalce (D–NY) ...... 132,956 (70,487) 62,469 Rush (D–IL) ...... 131,997 (87,780) 44,217 Smith (R–MI) ...... 62,611 (83,827) (21,216) Lazio (R–NY) ...... 101,259 (68,809) 32,450 Sangmeister (D–IL) ...... 136,095 (96,172) 39,923 Stupak (D–MI) ...... 135,875 (85,738) 50,137 Levy (R–NY) ...... 97,636 (67,711) 29,925 Yates (D–IL) ...... 135,744 (85,592) 50,152 Upton (R–MI) ...... 113,730 (119,172) (5,442) Lowey (D–NY) ...... 136,236 (80,007) 56,229 Maloney (D–NY) ...... 133,715 (67,248) 65,967 INDIANA MINNESOTA Manton (D–NY) ...... 133,056 (47,900) 85,156 Coats (R–IN) ...... 111,932 (121,410) (9,478) Durenberger (R–MN) ...... 113,712 (122,966) (9,254) McHugh (R–NY) ...... 95,105 (70,325) 24,780 Lugar (R–IN) ...... 115,399 (120,289) (4,890) Wellstone (D–MN) ...... 135,793 (54,280) 81,513 McNulty (D–NY) ...... 132,851 (62,223) 70,628 Burton (R–IN) ...... 81,826 (57,887) 23,939 Grams (R–MN) ...... 66,974 (70,275) (3,301) Molinari (R–NY) ...... 112,661 (73,230) 39,431 Buyer (R–IN) ...... 94,089 (81,664) 12,425 Minge (D–MN) ...... 116,973 (93,856) 23,117 Nadler (D–NY) ...... 132,948 (67,379) 65,569 Hamilton (D–IN) ...... 133,806 (66,170) 67,636 Oberstar (D–MN) ...... 129,767 (82,933) 46,834 Owens (D–NY) ...... 121,084 (77,737) 43,347 Jacobs (D–IN) ...... 114,071 (83,108) 30,963 Penny (D–MN) ...... 111,140 (110,111) 1,029 Paxon (R–NY) ...... 58,374 (80,005) (21,631) Long (D–IN) ...... 134,135 (104,384) 29,751 Peterson (D–MN) ...... 117,150 (102,774) 14,676 Quinn (R–NY) ...... 96,639 (86,354) 10,285 McCloskey (D–IN) ...... 133,603 (54,139) 79,464 Ramstad (R–MN) ...... 75,533 (102,537) (27,004) Rangel (D–NY) ...... 126,757 (79,759) 46,998 Myers (R–IN) ...... 92,448 (83,657) 8,791 Sabo (D–MN) ...... 129,219 (51,210) 78,009 Schumer (D–NY) ...... 135,227 (80,604) 54,623 Roemer (D–IN) ...... 115,914 (57,139) 58,775 Vento (D–MN) ...... 131,653 (84,926) 46,727 Serrano (D–NY) ...... 127,638 (87,924) 39,714 Sharp (D–IN) ...... 131,236 (77,679) 53,557 Slaughter (D–NY) ...... 136,055 (83,249) 52,806 Visclosky (D–IN) ...... 133,488 (70,124) 63,364 MISSISSIPPI Solomon (R–NY) ...... 67,851 (71,579) (3,728) Towns (D–NY) ...... 131,897 (75,597) (56,300) IOWA Cochran (R–MS) ...... 117,697 (101,611) 16,086 Velazquez (D–NY) ...... 127,188 (90,925) (36,263) Lott (R–MS) ...... 115,558 (113,289) 2,269 Walsh (R–NY) ...... 132,037 (83,063) (48,974) Grassley (R–IA) ...... 117,692 (152,677) (34,985) Montgomery (D–MS) ...... 122,661 (74,247) 48,414 Harkin (D–IA) ...... 140,062 (64,432) 75,630 Parker (D–MS) ...... 117,776 (69,297) 48,479 NORTH CAROLINA Grandy (R–IA) ...... 102,787 (77,665) 25,122 Taylor (D–MS) ...... 97,103 (86,878) 10,225 Leach (R–IA) ...... 111,274 (63,586) 47,688 Thompson (D–MS) ...... 111,728 (76,771) 34,957 Faircloth (R–NC) ...... 103,531 (139,538) (36,007) Lightfoot (R–IA) ...... 96,061 (52,927) 43,134 Whitten (D–MS) ...... 130,260 (51,373) 78,887 Helms (R–NC) ...... 91,567 (112,912) (21,345) Nussle (R–IA) ...... 77,293 (116,620) (39,327) Ballenger (R–NC) ...... 74,183 (97,923) (23,740) Smith (D–IA) ...... 130,221 (48,374) 81,847 MISSOURI Clayton (D–NC) ...... 130,160 (59,698) 70,462 Coble (R–NC) ...... 79,221 (111,406) (32,185) KANSAS Bond (R–MO) ...... 117,452 (112,300) 5,152 Hefner (D–NC) ...... 135,846 (80,675) 55,171 Danforth (R–MO) ...... 119,264 (127,421) (8,157) Lancaster (D–NC) ...... 141,669 (59,515) 82,154 Dole (R–KS) ...... 117,684 (122,677) (4,993) Clay (D–MO) ...... 126,983 (77,654) 49,329 McMillan (R–NC) ...... 100,292 (108,494) (8,202) Kassebaum (R–KS) ...... 120,090 (133.058) (12,968) Danner (D–MO) ...... 136,122 (70,370) 65,752 Neal (D–NC) ...... 116,769 (65,916) 50,853 Glickman (D–KS) ...... 131,011 (50,128) 80,883 Emerson (R–MO) ...... 105,584 (57,296) 48,288 Price (D–NC) ...... 133,572 (53,450) 80,122 Meyers (R–KS) ...... 105,890 (89,016) 16,874 Gephardt (D–MO) ...... 133,462 (51,699) 81,763 Rose (D–NC) ...... 130,222 (50,862) 79,360 Roberts (R–KS) ...... 89,179 (53,720) 35,459 Hancock (R–MO) ...... 58,513 (45,127) 13,386 Taylor (R–NC) ...... 75,562 (76,931) (1,369) April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4201 VOTE TALLY STATE DELEGATION REPORT—Continued VOTE TALLY STATE DELEGATION REPORT—Continued— VOTE TALLY STATE DELEGATION REPORT—Continued— [What Members of Congress voted for in the 103d Congress (figures in Continued Continued millions of dollars)] [What Members of Congress voted for in the 103d Congress (figures in [What Members of Congress voted for in the 103d Congress (figures in millions of dollars)] millions of dollars)] In- Name creases Cuts Net In- In- Name creases Cuts Net Name Cuts Net Valentine (D–NC) ...... 111,821 (95,042) 16,779 creases Watt (D–NC) ...... 131,786 (85,282) 46,504 Ford (D–TN) ...... 112,243 (55,410) 56,833 WYOMING NORTH DAKOTA Gordon (D–TN) ...... 133,005 (74,449) 58,556 Lloyd (D–TN) ...... 128,944 (74,208) 54,736 Simpson (R–WY) ...... 98,332 (130,480) (32,148) Conrad (D–ND) ...... 131,665 (70,587) 61,078 Quillen (R–TN) ...... 92,083 (83,848) 8,235 Wallop (R–WY) ...... 96,189 (100,419) (4,230) Dorgan (D–ND) ...... 132,900 (66,454) 66,446 Sundquist (R–TN) ...... 96,191 (91,745) 4,446 Thomas (R–WY) ...... 80,843 (94,142) (13,299) Pomeroy (D–ND) ...... 133,784 (87,344) 46,440 Tanner (D–TN) ...... 131,670 (85,516) 16,154 Mr. SOLOMON. Mr. Speaker, I re- OHIO TEXAS serve the balance of my time. Glenn (D–OH) ...... 127,262 (46,343) 80,919 Gramm (R–TX) ...... 116,963 (117,343) (380) Metzenbaum (D–OH) ...... 122,709 (71,661) 51,048 Hutchison (R–TX) ...... 112,902 (84,690) 28,212 Mr. MOAKLEY. Mr. Speaker, I yield Applegate (D–OH) ...... 129,120 (68,370) 60,750 Andress (D–TX) ...... 124,106 (72,551) 51,555 myself such time as I may consume. Boehner (R–OH) ...... 71,804 (66,717) 5,087 Archer (R–TX) ...... 59,069 (43,841) 15,228 Brown (D–OH) ...... 136,089 (95,756) 40,333 Armey (R–TX) ...... 66,063 (67,890) (1,827) (Mr. MOAKLEY asked and was given Fingerhut (D–OH) ...... 113,373 (88,677) 24,696 Barton (R–TX) ...... 63,541 (91,227) (27,868) permission to include extraneous mate- Gillmor (R–OH) ...... 113,401 (60,947) 52,454 Bonilla (R–TX) ...... 95,946 (94,297) 1,649 Hall (D–OH) ...... 135,102 (53,743) 81,359 Brooks (D–TX) ...... 133,173 (58,641) 74,532 rial.) Hobson (R–OH) ...... 107,143 (101,560) 5,583 Bryant (D–TX) ...... 133,135 (80,232) 52,903 Mr. MOAKLEY. Mr. Speaker, we are Hoke (R–OH) ...... 74,439 (85,429) (10,990) Chapman (D–TX) ...... 139,177 (51,602) 87,575 Kaptur (D–OH) ...... 135,191 (86,679) 48,512 Coleman (D–TX) ...... 134,930 (56,112) 78,818 finally at the end of the contract. Kasich (R–OH) ...... 93,919 (89,098) 4,821 Combest (R–TX) ...... 86,879 (39,267) 47,612 Mann (D–OH) ...... 111,590 (62,197) 49,393 de la Garza (D–TX) ...... 132,460 (51,281) 81,179 For 100 days America’s children, sen- Oxley (R–OH) ...... 86,516 (79,548) 6,968 DeLay (R–TX) ...... 72,114 (73,433) (1,319) ior citizens, and working families have Portman (R–OH) ...... 70,694 (89,944) (19,250) Edwards (D–TX) ...... 129,825 (54,946) 74,880 Pryce (R–OH) ...... 107,963 (99,910) 8,053 Fields (R–TX) ...... 65,879 (65,861) 18 watched the Republican Congress gut Regula (R–OH) ...... 115,493 (74,188) 41,305 Frost (D–TX) ...... 133,070 (71,340) 61,730 their school lunches, home heating as- Sawyer (D–OH) ...... 133,549 (52,280) 81,269 Geren (D–TX) ...... 113,248 70,661 42,587 Stokes (D–OH) ...... 131,023 (59,011) 72,012 Gonzalez (D–TX) ...... 140,382 (49,191) 91,191 sistance, and student loans. And for Strickland (D–OH) ...... 136,034 (85,400) 50,634 Green (D–TX) ...... 117,418 (79,844) 37,574 what reason? To pay for tax breaks for Traficant (D–OH) ...... 132,239 (54,813) 77,426 Hall (D–TX) ...... 103,817 (76,141) 27,706 OKLAHOMA Johnson, E. (D–TX) ...... 135,851 (77,427) 58,424 the very rich. To continue to allow bil- Johnson, S. (R–TX) ...... 64,697 (71,164) (6,467) Boren (D–OK) ...... 126,528 (100,581) 25,947 Laughlin (D–TX) ...... 129,656 (58,974) 70,682 lionaires to renounce their American Nickles (R–OK) ...... 108,958 (142,761) (33,803) Ortiz (D–TX) ...... 132,218 (47,340) 84,878 citizenship to avoid paying taxes. Brewster (D–OK) ...... 108,809 (59,262) 49,547 Pickle (D–TX) ...... 131,819 (71,968) 59,851 Inhofe (R–OK) ...... 64,351 (68,642) (4,291) Sarpalius (D–TX) ...... 136,659 (67,164) 69,495 The tax bill we are considering today Istook (R–OK) ...... 70,383 (87,137) (16,754) Smith (R–TX) ...... 94,953 (79,108) 15,845 illustrates very clearly the winners and McCurdy (D–OR) ...... 129,821 (70,988) 58,883 Stenholm (D–TX) ...... 92,638 (92,702) (64) Synar (D–OK) ...... 129,921 (59,423) 70,498 Tejeda (D–TX) ...... 141,363 (47,773) 93,590 losers in the Republican contract. Washington (D–TX) ...... 98,221 (67,452) 30,769 This bill takes money from school OREGON Wilson (D–TX) ...... 132,332 (73,141) 59,191 lunches and hands it over to the very Hatfield (R–OR) ...... 112,737 (86,919) 25,808 UTAH Packwood (R–OR) ...... 110,030 (121,330) (11,300) rich in the form of tax breaks—from DeFazio (D–OR) ...... 112,003 (81,768) 30,235 Bennett (R–UT) ...... 118,656 (118,998) (342) the mouths of babes to the pockets of Furse (D–OR) ...... 134,727 (82,816) 51,911 Hatch (R–UT) ...... 118,376 (119,990) (1,524) Kopetski (D–OR) ...... 130,335 (77,141) 53,194 Hansen (R–UT) ...... 78,105 (100,181) (22,076) billionaires. Smith (R–OR) ...... 76,561 (29,600) 46,961 Orton (D–UT) ...... 98,477 (76,968) 21,509 Some people are very happy with the Wyden (D–OR) ...... 126,217 (87,274) 38,943 Shepherd (D–UT) ...... 130,880 (71,552) 59,328 Republican Congress. Some people got PENNSYLVANIA VERMONT what they wanted. They had their cake Specter (R–PA) ...... 124,538 (100,781) 23,757 Jeffords (R–VT) ...... 127,492 (79,181) 48,311 and they will eat it too. Those people Wofford (D–PA) ...... 132,613 (61,662) 70,951 Leahy (D–VT) ...... 134,144 (64,377) 69,767 Blackwell (D–PA) ...... 133,043 (70,656) 62,387 Sanders (I–VT) ...... 128,991 (79,303) 49,688 are special interest lobbyists, corpora- Borski (D–PA) ...... 135,626 (76,251) 59,375 tions, and millionaires. Clinger (R–PA) ...... 104,552 (71,143) 33,409 VIRGINIA Coyne (D–PA) ...... 136,205 (84,074) 52,131 The losers were children who get Foglietta (D–PA) ...... 133,448 (73,070) 60,378 Robb (D–VA) ...... 127,304 (84,096) 43,208 meals at school, young people who need Gekas (R–PA) ...... 83,847 (88,304) (4,457) Warner (R–VA) ...... 104,160 (121,462) (17,002) Goodling (R–PA) ...... 98,168 (93,254) 4,914 Bateman (R–VA) ...... 106,621 (73,802) 32,819 summer jobs, and families whose Greenwood (R–PA) ...... 103,726 (107,694) (3,968) Bliley (R–VA) ...... 84,660 (88,240) (3,580) homes are heated with the help of the Holden (D–PA) ...... 136,034 (92,293) 43,741 Boucher (D–VA) ...... 134,942 (73,222) 61,720 Kanjorski (D–PA) ...... 136,145 (83,549) 52,596 Byrne (D–VA) ...... 131,385 (78,014) 53,371 LIHEAP Program. Klink (D–PA) ...... 136,088 (97,919) 38,169 Goodlatte (R–VA) ...... 74,768 (57,421) 17,347 Mr. Speaker, I was sorry to see that Margolies-Mezv (D–PA) ...... 117,351 (94,689) 22,662 Moran (D–VA) ...... 134,094 (54,248) 79,846 McDade (R–PA) ...... 109,325 (78,081) 31,444 Payne (D–VA) ...... 126,508 (78,141) 48,367 Mr. SOLOMON’s own committee, which McHale (D–PA) ...... 135,817 (101,176) 34,641 Pickett (D–VA) ...... 110,525 (35,608) 74,917 is stacked with nine Republicans to Murphy (D–PA) ...... 117,285 (96,225) 21,060 Scott (D–VA) ...... 129,072 (62,932) 66,140 Murtha (D–PA) ...... 140,515 (47,492) 93,053 Sisisky (D–VA) ...... 117,136 (50,586) 66,550 four Democrats, refused to make in Ridge (R–PA) ...... 108,188 (92,187) 16,001 Wolf (R–VA) ...... 94,060 (90,009) 4,051 order any amendments. Santorum (R–PA) ...... 91,135 (94,914) (3,779) Shuster (R–PA) ...... 81,291 (84,389) (3,098) WASHINGTON Yesterday he called himself the fierc- Walker (R–PA) ...... 60,943 (69,783) (8,840) Gorton (R–WA) ...... 119,839 (108,973) 10,866 est deficit hawk up here. Still, despite Weldon (R–PA)) ...... 91,001 (86,258) 4,743 Murray (D–WA) ...... 127,332 (48,003) 79,329 the demand of 102 Members of their Cantwell (D–WA) ...... 133,291 (66,938) 66,353 RHODE ISLAND Dicks (D–WA) ...... 133,328 (47,767) 85,561 own party, despite Mr. SOLOMON’s sup- Chafee (D–RI) ...... 122,158 (136,007) (13,849) Dunn (R–WA) ...... 82,033 (66,335) 15,698 port, the Republican leadership refused Pell (R–RI) ...... 121,372 (58,847) 62,525 Foley (D–WA) ...... 75,302 (35,590) 39,712 Machtley (R–RI) ...... 117,118 (50,818) 66,300 Inslee (D–WA) ...... 134,108 (106,326) 27,782 to allow amendments to slow down tax Reed (D–RI) ...... 133,048 (54,455) 78,593 Kreidler (D–WA) ...... 135,965 (92,527) 43,438 cuts in the face of exploding deficits. McDermott (D–WA) ...... 134,667 (80,927) 53,740 SOUTH CAROLINA Swift (D–WA) ...... 132,523 (48,140) 84,383 They imposed a watered down, Unsoeld (D–WA) ...... 136,071 (85,252) 30,819 milquetoast amendment that doesn’t Hollings (D–SC) ...... 126,315 (62,298) 64,017 Thurmond (R–SC) ...... 117,863 (120,618) (2,755) WEST VIRGINIA even qualify as a speed bump on the Clyburn (D–SC) ...... 133,732 (60,148) 73,584 deficit highway. Derrick (D–SC) ...... 129,552 (52,095) 77,457 Byrd (D–WV) ...... 128,325 (53,869) 74,456 Inglis (R–SC) ...... 72,616 (89,009) (16,393) Rockefeller (D–WV) ...... 130,488 (46,657) 83,831 I know if Mr. SOLOMON were calling Ravenel (R–SC) ...... 116,390 (105,123) 11,267 Mollohan (D–WV) ...... 127,593 (48,951) 78,642 the shots on the Rules Committee he Spence (R–SC) ...... 103,080 (40,981) 62,099 Rahall (D–WV) ...... 130,704 (70,898) 59,806 Spratt (D–SC) ...... 133,556 (53,868) 79,688 Wise (D–WV) ...... 133,297 (47,577) 85,720 would have made stronger amendments in order. Once we’re finished with the SOUTH DAKOTA WISCONSIN contract I hope he gets his way. Daschle (D–SD) ...... 130,763 (46,354) 84,409 Feingold (D–WI) ...... 126,933 (81,812) 45,121 Pressler (R–SD) ...... 113,502 (119,079) (5,577) Kohl (D–WI) ...... 124,700 (103,945) 20,755 I urge my colleagues to defeat the Johnson (D–SD) ...... 134,057 (82,854) 51,203 Barca (D–WI) ...... 98,012 (105,688) (7,676) Barrett (D–WI) ...... 129,832 (92,871) 36,961 previous question so we can come back TENNESSEE Gunderson (R–WI) ...... 97,717 (88,982) 8,735 with an open rule, instead of this gag Kleczka (D–WI) ...... 136,083 (80,769) 55,314 Mathews (D–TN) ...... 129,125 (56,887) 72,238 Klug (R–WI) ...... 88,482 (79,847) 8,635 rule, and help someone other than the Sasser (D–TN) ...... 132,719 (60,681) 72,038 Obey (D–WI) ...... 136,075 (82,955) 53,120 special interest lobbyists. Clement (D–TN) ...... 131,474 (43,068) 88,406 Petri (R–WI) ...... 65,995 (78,148) (12,153) Cooper (D–TN) ...... 130,486 (83,481) 47,005 Roth (R–WI) ...... 63,570 (83,398) (19,828) Mr. Speaker, I include the following Duncan (R–TN) ...... 64,137 (86,559) (22,422) Sensenbrenner (R–WI) ...... 56,113 (106,430) (50,317) for the RECORD: H 4202 CONGRESSIONAL RECORD — HOUSE April 5, 1995 FLOOR PROCEDURE IN THE 104TH CONGRESS

Amendments Bill No. Title Resolution No. Process used for floor consideration in order

H.R. 1 ...... Compliance ...... H. Res. 6 Closed ...... None. H. Res. 6 ...... Opening Day Rules Package ...... H. Res. 5 Closed; contained a closed rule on H.R. 1 within the closed rule ...... None. H.R. 5 ...... Unfunded Mandates ...... H. Res. 38 Restrictive; Motion adopted over Democratic objection in the Committee of the Whole to limit N/A. debate on section 4; Pre-printing gets preference. H.J. Res. 2 ...... Balanced Budget ...... H. Res. 44 Restrictive; only certain substitutes ...... 2R; 4D. H. Res. 43 ...... Committee Hearings Scheduling ...... H. Res. 43 (OJ) Restrictive; considered in House no amendments ...... N/A. H.R. 2 ...... Line Item Veto ...... H. Res. 55 Open; Pre-printing gets preference ...... N/A. H.R. 665 ...... Victim Restitution Act of 1995 ...... H. Res. 61 Open; Pre-printing gets preference ...... N/A. H.R. 666 ...... Exclusionary Rule Reform Act of 1995 ...... H. Res. 60 Open; Pre-printing gets preference ...... N/A. H.R. 667 ...... Violent Criminal Incarceration Act of 1995 ...... H. Res. 63 Restrictive; 10 hr. Time Cap on amendments ...... N/A. H.R. 668 ...... The Criminal Alien Deportation Improvement Act ...... H. Res. 69 Open; Pre-printing gets preference; Contains self-executing provision ...... N/A. H.R. 728 ...... Local Government Law Enforcement Block Grants ...... H. Res. 79 Restrictive; 10 hr. Time Cap on amendments; Pre-printing gets preference ...... N/A. H.R. 7 ...... National Security Revitalization Act ...... H. Res. 83 Restrictive; 10 hr. Time Cap on amendments; Pre-printing gets preference ...... N/A. H.R. 729 ...... Death Penalty/Habeas ...... N/A Restrictive; brought up under UC with a 6 hr. time cap on amendments ...... N/A. S. 2 ...... Senate Compliance ...... N/A Closed; Put on suspension calendar over Democratic objection ...... None. H.R. 831 ...... To Permanently Extend the Health Insurance Deduction for the Self-Em- H. Res. 88 Restrictive; makes in order only the Gibbons amendment; waives all points of order; Contains 1D. ployed. self-executing provision. H.R. 830 ...... The Paperwork Reduction Act ...... H. Res. 91 Open ...... N/A. H.R. 889 ...... Emergency Supplemental/Rescinding Certain Budget Authority ...... H. Res. 92 Restrictive; makes in order only the Obey substitute ...... 1D. H.R. 450 ...... Regulatory Moratorium ...... H. Res. 93 Restrictive; 10 hr. Time Cap on amendments; Pre-printing gets preference ...... N/A. H.R. 1022 ...... Risk Assessment ...... H. Res. 96 Restrictive; 10 hr. Time Cap on amendments ...... N/A. H.R. 926 ...... Regulatory Flexibility ...... H. Res. 100 Open ...... N/A. H.R. 925 ...... Private Property Protection Act ...... H. Res. 101 Restrictive; 12 hr. time cap on amendments; Requires Members to pre-print their amendments 1D. in the Record prior to the bill’s consideration for amendment, waives germaneness and budget act points of order as well as points of order concerning appropriating on a legisla- tive bill against the committee substitute used as base text. H.R. 1058 ...... Securities Litigation Reform Act ...... H. Res. 105 Restrictive; 8 hr. time cap on amendments; Pre-printing gets preference; Makes in order the 1D. Wyden amendment and waives germaness against it. H.R. 988 ...... The Attorney Accountability Act of 1995 ...... H. Res. 104 Restrictive; 7 hr. time cap on amendments; Pre-printing gets preference ...... N/A. H.R. 956 ...... Product Liability and Legal Reform Act ...... H. Res. 109 Restrictive; makes in order only 15 germane amendments and denies 64 germane amendments 8D; 7R. from being considered. H.R. 1158 ...... Making Emergency Supplemental Appropriations and Rescissions ...... H. Res. 115 Restrictive; Combines emergency H.R. 1158 & nonemergency 1159 and strikes the abortion pro- N/A. vision; makes in order only pre-printed amendments that include offsets within the same chapter (deeper cuts in programs already cut); waives points of order against three amend- ments; waives cl 2 of rule XXI against the bill, cl 2, XXI and cl 7 of rule XVI against the substitute; waives cl 2(e) of rule XXI against the amendments in the Record; 10 hr time cap on amendments. 30 minutes debate on each amendment. H.J. Res. 73 ...... Term Limits ...... H. Res. 116 Restrictive; Makes in order only 4 amendments considered under a ‘‘Queen of the Hill’’ proce- 1D; 3R dure and denies 21 germane amendments from being considered. H.R. 4 ...... Welfare Reform ...... H. Res. 119 Restrictive; Makes in order only 31 perfecting amendments and two substitutes; Denies 130 5D; 26R germane amendments from being considered; The substitutes are to be considered under a ‘‘Queen of the Hill’’ procedure; All points of order are waived against the amendments.. H.R. 1271 ...... Family Privacy Act ...... H. Res. 125 Open ...... N/A H.R. 660 ...... Housing for Older Persons Act ...... H. Res. 126 Open ...... N/A ** 72% restrictive; 28% open. **** Restrictive rules are those which limit the number of amendments which can be offered, and include so called modified open and modified closed rules as well as completely closed rules and rules providing for consideration in the House as opposed to the Committee of the Whole. This definition of restrictive rule is taken from the Republican chart of resolutions reported from the Rules Committee in the 103rd Congress. **** Not in- cluded in this chart are three bills which should have been placed on the Suspension Calendar. H.R. 101, H.R. 400, H.R. 440.

Mr. MOAKLEY. Mr. Speaker, I re- businesses. And it will give much need- Mr. ARCHER. I thank the gentleman serve the balance of my time. ed relief to our seniors by eliminating for yielding me the time. Mr. SOLOMON. Mr. Speaker, I would the very unfair 1993 Clinton Social Se- Mr. Speaker, in September of last love to respond to the gentleman but curity tax and rolling back the unfair year, we promised in our Contract With time does not allow right now. earnings test limit that saps the ener- America that we would vote on tax re- I yield 2 minutes to the very distin- gies and earnings of seniors who need lief for families and on incentives to guished gentleman from Sanibel, FL to work or want to work. create new jobs. We also promised to [Mr. GOSS], a member of the Commit- H.R. 1215 is a down payment on com- pay for these tax cuts by slowing down tee on Rules. prehensive tax reform. The first 100 the growth of Federal spending, and (Mr. GOSS asked and was given per- days, we have done a lot. The next 265 today we fulfill that pledge. But we do mission to revise and extend his re- days, we can do the rest. more. This package nets out with a $30 marks.) I urge a ‘‘yes’’ vote on this rule, so billion greater reduction in deficit Mr. GOSS. I thank the gentleman we can get on with that job and do than the President’s budget proposal. from Glens Falls, NY [Mr. SOLOMON], what we were elected to do last Novem- b the distinguished chairman, for yield- ber. 1315 ing me the generous time. Mr. MOAKLEY. Mr. Speaker, I yield We have heard some Democrats say Mr. Speaker, this is a very important 30 seconds to the gentleman from Flor- the taxpayers do not need or deserve vote that is coming up, for many rea- ida [Mr. GIBBONS], the ranking member tax cuts right now, and I disagree. The sons, just one of which is that passage of the Committee on Ways and Means. American family is overworked and it of this rule is indeed going to complete Mr. GIBBONS. Mr. Speaker, we is overtaxed. So as promised, this bill our perfect record of bringing the Con- should vote against the previous ques- provides a $500 per child tax credit, tract With America up for a vote just tion, we should vote against the rule marriage penalty relief, tax credits for as we promised. We are keeping our and if it passes, we should vote against adoption of children and for the care of promise. this bill. It is the wrong time to be cut- elderly family members. This rule does allow the minority ting taxes. We ought to be cutting the It also provides tax incentives for free rein to offer its alternative tax deficit. It is the wrong time, it is the long-term care insurance and for tax- plan, such as it may be, and this rule wrong way to be cutting taxes, even if free distributions of life insurance for ensures that we match the primary we should be cutting them. This is a the terminally and chronically ill. goal of cutting spending so we can bal- terrible gag rule. We are going to do This bill will repeal current laws that ance the budget with the important nothing for 3 weeks after Friday. Why penalize seniors. It repeals the punitive need to reduce taxation, to curtail can we not spend enough time talking 5-percent tax on Social Security bene- Uncle Sam’s persistent depressing about the impact of this bill instead of fits imposed by President Clinton in reach into Americans’ pockets and wal- gagging us with 1 hour to all the Demo- 1993, and it gives senior citizens greater lets. The average tax filer in my State crats to talk about the tax matter, a opportunity to continue to work with- of Florida will save $1,605 in taxes if $700 billion mistake? out suffering the loss of their benefits. this bill becomes law. Other States will Mr. SOLOMON. Mr. Speaker, I yield 5 Americans do not save enough. High fare similarly well. We are delivering minutes to the gentleman from Texas taxes are a big reason why. So we in- the long overdue tax relief that is good [Mr. ARCHER], the chairman of the clude incentives for savings and invest- for all America, for every American. It Committee on Ways and Means and one ment. We create a new type of individ- will create jobs by providing invest- of the most respected Members of this ual retirement account, IRA, the ment incentives, particularly for small House. American Dream Savings Account, and April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4203 we permit homemakers to build their rule to get around all kinds of serious tional economy by delivering real tax own IRA’s. Budget Act problems. relief. We provide much-needed capital The reason we have a Budget Act is Today, the average family spends gains relief to stimulate job-creating to help us think through legislation be- more on taxes than it spends on food, investment. Capital gains for individ- fore we pass it. Yet this is the eighth clothing, and shelter combined. Many uals will get a 50-percent exclusion time this year we have been asked by families now need a second bread- along with indexing for inflation. This the new majority to ignore the Budget winner just to support the costs of a will reduce the rate for lower income Act. bloated Federal Government, not to Americans to only 71⁄2 percent. The tax before us is a good example cover the costs of raising a family. Corporations will be eligible for a 25- of the unwise legislation the House has After years of struggling to move a percent alternative capital gains rate. recently been passing. The measure ac- pro-family, pro-growth tax plan And people who sell their homes at a tually makes the long-term deficit through Congress, we have the oppor- loss will finally be able to get a tax de- worse since the cost of these tax cuts tunity today to tip the tax scales back duction for that loss. grow far more quickly than the spend- in favor of mothers, fathers, grand- Businesses will have incentives to in- ing cuts. parents, and children. vest in new plant and equipment. The By the year 2000, according to CBO, It reduces the tax burden on families punitive and onerous job stifling alter- the deficit under the bill will be $12 bil- with children, and on two-earner mar- native minimum tax will be repealed lion higher than it would be if we sim- ried couples. It creates valuable tax in- and small businesses will be able to ply did nothing. Further, it contains centives to encourage families to adopt double the amount that they can ex- some serious provisions that were children, and to care for elderly rel- pense and deduct for the purchase of never passed or considered by the ap- atives. And, it gives families more rea- new equipment. propriate committees. One of these son to save their hard-earned money People who work out of their homes provisions is a dangerous new taxpayer for the future. will be able to deduct more home office debt buydown plan. This proposal lets In my own State of Ohio, taxes will expenses. taxpayers designate a portion of their be reduced by an average of more than The tax burden on family retention tax liability for debt reduction, there- $1,400 per person. That’s $1,400 more that families can spend as they see fit, of small businesses and farms will be by taking decisions about Federal on the things they need most, and not reduced, because the estate tax exclu- spending from the people’s elected rep- as Washington would spend it for them. sion will be increased. resentatives and handing them over to More importantly, this legislation is Democrats complain that these tax the wealthy. Essentially it says that fiscally responsible. As we all know, cuts are too big, they are not fair, and the fundamental nature of the Federal the best hope for tax fairness for Amer- they are not targeted, and they are Government should be changed from a ica’s families lies in our commitment simply wrong. representative democracy, one person to reducing the deficit and achieving a These tax cuts are not too big. The one vote, to a plutocracy, one dollar balanced Federal budget. total cost of all of the cuts is equal to one vote, a million dollars a million Mr. Speaker, I am disappointed that 2 percent of what the Federal Govern- votes. the House will not have the chance to ment will spend over the next 5 years. Mr. Speaker, I cannot think of any debate the Ganske amendment, but, as And this will force a further 2-percent more invidious scheme for us to in- the distinguished chairman of the shrinking in the size of the Federal clude in a tax package. The plan has Rules Committee has pointed out, it Government as we move to a balanced never been reviewed by the Committee has been customary over the years to budget. on the Budget. Rather, it was just consider tax measures under more re- I think that is what the American dropped into the bill by rule as a part strictive procedures, and I will support people want to hear. These tax cuts are of the Kasich substitute. this rule. It is a balanced and respon- fair. The biggest tax cuts go to families Mr. Speaker, may I also remind the sible rule. By allowing the Gephardt earning $30,000 to $75,000. Over the next House that the Speaker, now Speaker, substitute and the customary motion 5 years, higher income people, that is, in August 1993 said that we, if we pass to recommit, the rule provides the the top 1 to 10 percent of the income the President’s program, we would House with two clear opportunities to categories, will actually pay a larger head into a recession. offer alternative tax proposals. share of Federal taxes than they pay Mr. Speaker, the facts are in. Em- Finally, Mr. Speaker, only long-term under current law. These taxes go to ployment is up, unemployment is expansion of our national economy, the right beneficiaries. Seventy-five down, inflation is low, growth was at 4 and the new jobs it will create, can percent go to families and 25 percent to percent in 1994 productivity is improv- make the American dream a reality for create jobs. ing, factories are operating at high future generations. That is why it is so Of the family benefits, 75 percent of rates, investment is booming. Mr. important that this Congress not miss the child credit goes to families with Speaker, you were wrong 2 years ago. this opportunity. incomes under $75,000 and 90 percent This is a bad bill. Mr. Speaker, we have had a very productive goes to families with under $95,000 of Mr. SOLOMON. Mr. Speaker, how 93 days so far in the 104th Congress. The annual income. much time is remaining on each side? majority has kept its promise to the American This rule is the only way that we can The SPEAKER. The gentleman from people, and we have made rebuilding and comply with our contract pledge, New York [Mr. SOLOMON] has 18 min- strengthening America's families a top legisla- which is to bring before the floor of utes remaining, and the gentleman tive priority. this House a vote on these provisions. from Massachusetts [Mr. MOAKLEY] has I urge our colleagues to adopt this rule so A vote against the rule will be a vote 241⁄2 minutes remaining. that we can usher in a new era of growth, pro- against the contract. Mr. SOLOMON. Mr. Speaker, this ductivity, and financial securityÐfor our chil- I urge a vote for the rule. year we have the privilege of having a dren and future generations of Americans. Mr. MOAKLEY. Mr. Speaker, I yield very outstanding Member, a former Mr. MOAKLEY. Mr. Speaker, I yield 2 minutes and 15 seconds to the former judge from Ohio, serve on our Commit- 1 minute to the gentlewoman from the chairman of the Committee on the tee on Rules, Ms. DEBORAH PRYCE. District of Columbia [Ms. NORTON]. Budget, the gentleman from Minnesota Mr. Speaker, I yield 2 minutes to the (Ms. NORTON asked and was given [Mr. SABO]. gentlewoman from Ohio [Ms. PRYCE]. permission to revise and extend her re- (Mr. SABO asked and was given per- Ms. PRYCE. Mr. Speaker, I thank the marks.) mission to revise and extend his re- gentleman for yielding me this time. [Ms. NORTON addressed the House. marks.) Mr. Speaker, I rise in strong support Her remarks will appear hereafter in Mr. SABO. Mr. Speaker, here we go of this rule. By adopting this resolu- the Extensions of Remarks.] again. Once more we have a major tion, we will enable the House to com- Mr. MOAKLEY. Mr. Speaker, I yield piece of legislation before us, and the plete the contract’s promise to 1 minute to the gentlewoman from Illi- Republican majority has structured a strengthen families and grow the na- nois [Mrs. COLLINS]. H 4204 CONGRESSIONAL RECORD — HOUSE April 5, 1995 (Mrs. COLLINS of Illinois asked and bled by this proposal, yet the rule allows for cause retirement benefits are an inte- was given permission to revise and ex- this proposal to be considered. gral part of the retirement package tend her remarks.) For those of my colleagues who are not that we offer to attract and retain top- Mrs. COLLINS of Illinois. Mr. Speak- concerned about imposing a 2.5-percent pay- quality Federal personnel. We should er, I thank the gentleman for yielding roll tax on Federal employees, consider the not make hasty, ill-considered, and not time to me. precedent this sets. I believe that if the Re- supported by a majority of the commit- Mr. Speaker, I rise in opposition to publican leadership can get away with this, tee of jurisdiction decisions by the the rule providing for consideration of next they will try to raise the Social Security Committee on Rules, by the chairman’s this bill, for a variety of reasons. As tax paid by all other American workers. They own admission, not having jurisdiction the ranking member on the Govern- promised no new taxes, and yet, with this bill, over this matter. ment Reform and Oversight Commit- they have broken that promise. The chairman said it is traditional tee, I want to point out one particular For these reasons, Mr. Speaker, I strongly not to have amendments to tax bills. If problem with the rule. It includes a urge my colleagues to vote ``no'' on the rule. this is a tax bill and if title IV is a tax provision that was never passed by any Reject this effort to bypass the jurisdiction of bill, it should take three-fifths of this committee. authorizing committees. Oppose this effort by body to increase the taxes on 2 million This is a provision which hikes the the Republican leadership to impose a tax in- Americans. taxes of 2 million middle-class Ameri- crease on middle-class Americans. Proponents of this proposal have of- cans who work for the Federal Govern- Mr. SOLOMON. Mr. Speaker, we con- fered only one justification: We need to ment in order to pay for tax cuts for tinue to reserve our time. pay for the tax cut. There has been the wealthy. It imposes these new Mr. MOAKLEY. Mr. Speaker, I yield some argument about an unfunded li- taxes on Federal employees by making 1 minute to the gentleman from Illi- ability, but the Congressional Research changes in the Federal retirement sys- nois [Mr. EVANS]. Service looked at this issue, is the un- tem; changes which were rejected by Mr. EVANS. Mr. Speaker, a few funded liability of CRS a problem? And the committee of jurisdiction—the weeks ago, the House acted to reform their answer was no, we have a system Government Reform and Oversight the welfare system. We also need to en- that is paid for. But everybody agrees Committee. sure that an even larger welfare sys- that the Federal Employment Retire- This rule places before the House leg- tem—the more than $200 billion in cor- ment System [FERS] is fully paid for, islation which no committee has ever porate giveaways—is reformed. Cor- and it is included in this, a brutal considered. The retirement provisions porate taxpayers must live up to their breach of contract, my friends, in this, in this bill were written by the chair- responsibility as U.S. residents and en- your last item. man of the Budget Committee. In what sure that they do not dodge their duty Reject this rule. Reject this brutal is clearly an extraordinary departure to pay their fair share of taxes and breach of contract. Reject this ill-con- from usual procedure, the Rules Com- their obligation to help reduce the defi- sidered tax policy. mittee has chosen to take a course of cit. Mr. MOAKLEY. Mr. Speaker, I yield action which negates the very exist- I gave my Republican colleagues on 2 minutes to the gentleman from Ala- ence of authorizing committees. This is the Rules Committee the opportunity bama [Mr. BROWDER]. a very dangerous precedent to set. This to seek a fairer tax system by offering Mr. BROWDER. Mr. Speaker, I appre- is not the same situation as might an amendment that curbs tax benefits ciate the gentleman yielding time to occur with a reconciliation bill, where given exclusively to multinational cor- me. the Congress has previously voted for a porations and foreign investors. This Mr. Speaker, I am not here to argue budget resolution that included rec- amendment would have closed loop- about the value of letting the Amer- onciliation instructions. holes in the code that drain billions ican people keep as much of their In such a case, the Congress would from our Treasury every year. money as we can. I support tax cuts. vote to authorize the Budget Commit- Yet, the majority again refuses to stand up But the proposed bill gets the process tee to report the necessary legislation, to corporate interests so that we can reduce wrong. I offered a straightforward if the authorizing committee had failed the deficit and put fairness in our tax system. amendment that insured deficit reduc- to act, and the Congress had voted that The Republican gravy train for the tion would be the first priority while budget reductions in a particular area wealthy never seems to end. Included fulfilling the Contract With America. were justified. in this bill is a repeal of the alternative My amendment would have made us This is not the case. This is bad busi- minimum tax. This tax ensures that get on track to balance before the tax ness. profitable corporations do not avoid cuts become effective and would make But there has been no such vote, and the paying taxes in the United States. continued tax cuts dependent upon us Rules Committee is acting without a mandate Many advocates of a repeal say that in- staying on track. from the House. stead of an AMT, we need to look at in- The shame is that in making this Continuing with the unusual, the rule makes dividual parts of the code. But once rule, the majority opted to reject the in order a tax increase in a tax cut bill. The bill again, the majority leaves loopholes advice of the American people. I am en- would increase the amount of payroll withhold- for multinationals virtually un- tering into the RECORD four quotes ing for the average Federal employee by an touched. that show that a vote for this rule is a additional 2.5 percent of their income. This I urge my colleagues to oppose the vote against the best advice provided would take $750 more out of an employee's rule. to the Congress. pocket each and every year. b 1330 I urge Members to support deficit re- Last week, when I testified before the Rules duction and returning money to the Committee with a bipartisan panel of Members Mr. MOAKLEY. Mr. Speaker, I yield people who earn it by opposing the rule who made these points, the committee's chair- 2 minutes to the gentleman from Mary- until we get it right. man, Mr. SOLOMON, and one of its most distin- land [Mr. HOYER]. GOP leadership needs to listen to the guished majority members, Mr. QUILLEN, Mr. HOYER. Mr. Speaker, the rule public: agreed with us. Chairman SOLOMON said, before us contains a brutal breach of contract with America’s public serv- Opinion polls show public support for tax ``This is a case where we are raising taxes on cuts is low and falling. Even Frank Luntz, some to pay for tax cuts for others, and that ants. Markup of similar legislation, as the pollster who testmarketed the ‘‘Contract to me is wrong. I don't believe we ought to be the ranking member, the gentlewoman With America,’’ says support has eroded in doing this in this bill.'' from Illinois [Mrs. COLLINS], has said, recent months. ‘‘The public currently be- When we asked that an amendment be was rejected on March 15 because a ma- lieves that you cannot balance the budget made in order to strike this provision, should jority did not support this provision. and get a tax cut,’’ Mr. Luntz says.—The it be included in the bill, Mr. QUILLEN asked to The chairman of this committee who Wall Street Journal, Monday, April 3, 1995 be made a cosponsor of any such amend- brings this bill to the floor said that 2 GOP leadership needs to listen to the ment. Clearly, from their comments and those million Americans were getting a tax experts: of other Members, Rules Committee members increase so that the wealthiest in Now, with all due respect to both parties, on both sides of the aisle were deeply trou- America could get a tax decrease, be- the American people don’t want a tax cut. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4205 Every poll indicates they want deficits re- going to downsize the operations of decide, how to spend money on their duced.—Senator Warren Rudman, CNN Late this House. We were going to cut com- children, not leaving it up to bureau- Edition, Sunday, April 2, 1995 mittees. We were going to cut commit- crats to decide. GOP leadership needs to listen to its tee staff. We were going to cut commit- Second, we have a growth element. supporters: tee funding. We said we would pass the We say we want to increase the size of ‘‘Our members, if you ask them straight Shays Act which would say that all the funnel so that we can pour more up, come down hard for deficit reduction’’ laws we apply to the American people prosperity, have more job creation in ahead of lower taxes, says the head of a na- ought to be applied to ourselves. We this country. We are going to help the tional association that is part of the GOP said we would pass the balanced budget senior citizens by lifting the earnings lobbying coalition.—The Wall Street Jour- amendment. We got it done. We said we nal, Friday, March 31, 1995 limit. Let them work. Do not penalize were going to pass the line-item veto. them for work if they want to work. GOP leadership needs to listen to its We got it done. pollsters: We are going to have an IRA pro- And you know what else we said? We gram. We are going to say to the people Nothing tells America more about your said we were going to come to this priorities than the sequence of your actions. that if you want to save instead of pun- floor, that we were going to downsize ishing you in this country, we are . . . That’s why ‘‘banking’’ the budget sav- the operation of the Federal Govern- ings before cutting taxes is so important. It’s going to give you an incentive to save. aligned with the national mood, which would ment as we head into the 21st century. Let me just say that this is the final choose ‘‘ensuring no debt for their children’’ Let me tell you, ladies and gentlemen, leg of the Republican Contract With (72%) over ‘‘getting a tax cut this year’’ the American people are with us. The America. But it is the first downpay- (24%).—Memorandum from Frank Luntz, American people resent the fact that ment on what we will follow up with in January 19, 1995 more of their money and more of their May, and that is to take this provision Mr. SOLOMON. Mr. Speaker, I yield power and more control has been sent that gives tax relief and has growth in myself 11⁄2 minutes. from where they live to this city. it, and we are going to marry it up in I would point out that the gentleman What the Republicans are beginning May with our budget resolution. from Florida [Mr. GIBBONS] appeared to do is to listen to the communica- You know what we will achieve? before our Committee on Rules. I have tions of the American people, and the great respect for the gentleman, as will of the American people is simple. What we promised last fall. We are much as anybody in this body. But I What they want done is they want this going to balance the budget. We are made a note when he said, ‘‘I not only Federal Government downsized. They going to save the future of this coun- support a closed rule, I would support want it reduced in scope. They want it try. We are going to give Americans you sending this bill back to the Ways reduced in power, and they want their tax relief in the process, and we are and Means Committee and telling us to money given back to them so they can going to shift power from this city get it right. That is our job. I support begin to solve problems where they back to where we live. Chairman ARCHER on a closed rule.’’ live. That is what the American people I would just say to my good friend, They believe that, as we move into want. Those that fight against it are the gentleman from Alabama [Mr. the 21st century, we need a smaller, resisting the will of the American peo- BROWDER], I really do have to resent more limited, more focused Federal ple, and you know, the beauty of what his calling this a fig leaf. You know, we Government, and they are demanding we do today, we not only give you tax really are trying to work together that in the course of doing that, in the relief, but we also have more deficit re- here. course of shrinking this big Federal duction, $60 billion more in deficit re- Let me just quote some language in Government and giving them their duction than the entire President’s this legislation. It says, ‘‘The concur- money and power back, they can solve budget. rent resolution on the budget for fiscal problems where they live, and at the And you know what, when it comes year 1996, as agreed to, provides that same time that we are shifting power to deficit reduction and balancing the the budget of the United States will be from Washington to local commu- budget, you ain’t seen nothing yet. We in balance by fiscal year 2002.’’ That is nities, we are also going to save the will be back in May to complete our part 1. country from financial collapse. job, to keep our word and save America Part 2, ‘‘The conference report, as I just commend to you the testimony and future generations. agreed to, on the reconciliation bill for of Alan Greenspan before the House Mr. MOAKLEY. Mr. Speaker, I yield that resolution achieves the aggregate Committee on the Budget when he said 1 minute to the gentleman from Vir- amount of deficit reduction to effec- that if, in fact, we balance the budget, ginia [Mr. MORAN]. tuate the reconciliation instructions the kind of prosperity that we would Mr. MORAN. Mr. Speaker, this is not required for the years covered by that experience in this country cannot even a good tax-cut bill. In fact, there are resolution necessary to so balance the be estimated, that the power and the two tax shelters within it which will budget.’’ That is why people like my- ingenuity and the creativity of the make all the other tax shelters even self, who have proven that we are defi- American people and the absolute won- enacted by this body pale by compari- cit hawks year in and year out for the derful dynamic process of our economy, son, with regard to the abuse that they past 16 years, support this rule. Every our free enterprise, entrepreneurial will enable people to take advantage Member of this body should. economy that rewards every individual of. Mr. Speaker, I yield 5 minutes to my for hard work, will unleash a prosper- But the worst part of this, of what we good friend, the gentleman from Ohio ity that we have not known in this are to do today, is not even the bill, it [Mr. KASICH], and if there ever was a country. is the rule. We are going to consider deficit hawk that meets my standards, And what we are doing today by pass- legislation which was rejected by the it is the gentleman from Ohio [Mr. KA- ing this rule and bringing this bill up committee of jurisdiction, and under SICH]. for consideration is we are keeping our the guise of tax fairness, and not Mr. KASICH. Mr. Speaker, let me word. First and foremost, it is critical breaking contracts, we are going to in- just say to my Republican colleagues that the Republican Party keep its crease taxes on each Federal employee particularly and to those Democrats word to the American people. It is the by an average of $4,525, to provide a tax who were considering casting a vote for only way to restore credibility, and cut of about $1,000 to the average this, this is like the end of a horse when we come to the floor today, we American. race, maybe like the Kentucky Derby, are going to downsize this operation of And talk about breaking contracts, but that would not be appropriate; the the Federal Government, and we are when each Federal employee had to de- last race in the Triple Crown. going to give families, the building cide how to provide for the retirement What we have done is we have kept block of this Nation, it needs to be re- security of their wives and children, we our promises. We signed a Contract inforced, in some cases it needs to be told them we would never break this With America back last fall, and we rebuilt, the American family is going retirement contract, and today we are said that there were a variety of things to get some of their money back so going to break it. We are going to re- that we were going to do. We were that they can decide, individuals can quire them to lose retirement benefits, H 4206 CONGRESSIONAL RECORD — HOUSE April 5, 1995 and to increase their retirement con- As one who has been criticized for al- pay an extra $500 per year, and the em- tribution by 313 percent. leged weaknesses in spending discipline ployee making $30,000 would have to This day will go down in infamy if we proposals, which were 100 times strong- pay an additional $750. These are hefty pass this bill, and particularly if we do er than the rule we have today, would sums for middle-class workers. What- not reject this rule. somebody please tell me why I should ever happened to our contract with the Mr. MOAKELY. Mr. Speaker, I yield accept this ‘‘trust me’’ language before Federal work force? 21⁄2 minutes to the gentleman from us today? I refuse to trust anything Title IV also would change the retire- Texas [Mr. STENHOLM.]. other than an honest, enforceable guar- ment formula to reflect the highest 5 (Mr. STENHOLM asked and was antee that these tax cuts will not come years of salary as opposed to the given permission to revise and extend at the expense of my children and present formula based on the highest 3 his remarks.) grandchildren. I refuse to adorn myself years. This provision would affect post- Mr. STENHOLM. Mr. Speaker, we with the jewels of political slogans and al workers as well as civil service em- have come to the end of a long and ex- then hand to my children and grand- ployees. Changing the retirement for- hausting 100 days to take up this final children those worthless minerals mula reduces the lifetime retirement piece of the Contract With America, passed off as gold. benefits by 4 percent. which I have supported 70 to 80 percent Tax cuts with borrowed money is no The General Accounting Office, just thereof. bargain. Vote ‘‘no’’ on this rule and this week, issued a statement in sup- Unfortunately, though, what we have vote ‘‘no’’ on this bill. port of the conclusions reached by the before us today is not a crown jewel Mr. MOAKLEY. Mr. Speaker, I yield Congressional Research Service [CRS] but, rather, fool’s gold. 1 minute to the gentleman from Mary- on the status of the civil service retire- land [Mr. CARDIN]. You know, it was about 2 years ago ment system. The report states that: at this time that we were on the floor Mr. CARDIN. I thank the gentleman for yielding this time to me. (1) the system’s unfunded liability is not a trying to pass the rule for another problem that needs to be fixed to avoid steep high-profile, highly controversial piece Mr. Speaker, I urge my colleagues to increases in outlays from the Treasury or in- of deficit-reduction legislation. As reject this rule. creases in the deficit and (2) the system is seems to be my destiny, my role lead- It does not comply with what the not insolvent nor will it become insolvent in ing up to that vote was to provide bet- Contract With America said, that we the future. ter assurance of true deficit reduction. are going to have a open debate on tax Mr. Speaker, Federal employees have We wanted to try to start to get some issues. There is no opportunity for us borne the brunt of deficit reduction for sort of handle on the entitlement to offer an amendment. It breaks the more than a decade. Why are we once promise that we would have specific spending which is increasingly driving again taxing an already overburdened spending cuts before us before we our deficits. work force? Why have we tucked into would be asked to vote on a tax cut. Let me tell you about the reaction I this tax bill provisions that were never What this bill attempts to do is to received for my efforts when we approved by the Government Reform use a phony mechanism for saying that reached the floor from this side of the and Oversight Committee? aisle. I heard about skepticism, cyni- we have to pass a budget reconciliation before the tax cuts become effective. I oppose the rule, and I ask my col- cism, I was lectured about meaningless leagues not to support a tax bill that guarantees which had no teeth. I was But after we do that, the tax cuts be- come permanent. will harm the more than 2 million Fed- considered gullible for accepting prom- eral workers and their families nation- ises of what would happen tomorrow I hope my colleagues will read the Balanced Budget and Emergency Defi- wide. rather than demanding the deal be cit Control Act of 1985, because that is Mr. SOLOMON. Mr. Speaker, I yield 3 closed today. what we did in 1985 with the Gramm- minutes to the Republican whip, the Now we come to today’s vote when I Rudman proposal. By the way, that bill gentleman from Texas [Mr. DELAY], hear I do not need to worry about defi- required us to have a balanced budget one of the outstanding Members of this cit reduction in this bill. I am told the by fiscal year 1991. body. guarantee is already there. I am as- The tax cut in this bill is permanent. Mr. Speaker, boy, he has surely sured that we can have the promised The spending cuts are 1 year, and they earned his medal in the last 100 days, I land, both massive tax cuts and a bal- do not even give us anywhere near the will tell you. anced budge with borrowed money. amount of money. Let us do deficit re- Mr. DELAY. I thank the gentleman Well, the tax cut promises could not duction first. for yielding this time to me. be any clearer. But just how does to- Mr. MOAKLEY. Mr. Speaker, I yield I hope I do not take the 3 minutes, day’s deficit-reduction guarantee stack 2 minutes to the gentlewoman from but I appreciate all work that the up against the agreement I worked for Maryland [Mrs. MORELLA]. chairman of the Committee on Rules 2 years ago, the guarantee which was Mrs. MORELLA. I thank the gen- has done on this issue. I know it has deemed so inadequate, so toothless, so tleman from Massachusetts for yield- been very, very hard for all the Mem- meaningless? Well, we had proposed ing this time to me. bers because this is a very big and im- laying out specific, numeric entitle- Mr. Speaker, I rise to state my oppo- portant bill. Everyone wants a piece of ment targets. If those targets were ex- sition to the rule for H.R. 1327. This it, but not everyone got what they ceeded, we would have required the rule does not permit a number of very wanted, and there are some ‘‘push me, House Committee on the Budget to re- important amendments which are criti- pull you’’ going on on the rule. I appre- port a budget resolution which brought cal to improving this bill. It does not ciate that. But you have got to also ap- us back in line with spending cuts. permit the Roberts-Ganske amendment preciate the hugeness of this bill and Now, does today’s guarantee have to direct the child tax credit to middle- what we are trying to do. such a requirement? No, it does not. income families; it does not permit the Mr. Speaker, I rise in strong support We said that if the budget resolution or Porter amendment to require that our of this rule, and in strong support of budget conference report breached the budget be balanced before tax cuts go the Tax Fairness and Deficit Reduction targets, the bills could not even be con- into effect; and it does not permit an Act. sidered on the House floor. amendment I offered with several of Last November, the American people my colleagues to remove the tax hike spoke loud and clear by voting in the b 1345 that this bill imposes upon Federal em- first Republican majority in the House No such prohibition in today’s bill. ployees. A tax hike in a so-called tax in 40 years. We said, if the Congress decided to in- reduction bill. The message voters sent was simple: crease those targets, in other words, Title IV of H.R. 1327 would require Cut our taxes and cut Federal Govern- they chose to spend more money, a sep- Federal employees to pay an additional ment spending. arate vote had to bring that provision 2.5 percent toward their retirement The new Republican majority has into the political sunshine. No such system. An average Government work- heard that message, and today we start sunshine in today’s bill. er making $20,000 a year would have to to deliver on our promise. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4207 The rule we have before us is a fair Bureau, supported by the Farmers Mr. Speaker, according to the Treasury De- one. It gives the Democrat minority a Union, supported by the National Asso- partment, more than half of the tax cuts pro- chance to offer an alternative while ciation of the Self-employed. And we posed by the Republicans for individuals will keeping the integrity of the Republican do not even get a vote. In fact, when benefit families earning over $100,000 a year, majority package. the Committee on Rules addressed this and more than one quarter of the tax cuts will The rule also gives the American peo- issue, at least one said, ‘‘We don’t want go to families earning over $200,000 a year. ple a very clear choice. to open up the Tax Code on this issue.’’ The highest earning 1 percent of families will You can vote for a Democrat package Well, they opened up the Tax Code for get more in tax cuts than the 60 percent of that contains no tax relief for middle America’s most wealthy; why will they families at the lower of the income scale. For class Americans. Or you can vote for not open up this bill for an amendment the very highest income people, the top 1 per- the Republican package that finally to help working Americans? cent, the Republican proposal creates an av- begins the process of talking the tax Mr. MOAKLEY. Mr. Speaker, I yield erage tax reduction of $20,362, for the lowest burden of the American people. 1 minute to the gentleman from Ver- income 20 percent taxes are reduced by all of I am reminded of the vote we had in mont [Mr. SANDERS]. $36.00. The Robinhood proposal in reverse. 1993, when President Clinton and the (Mr. SANDERS asked and was given We cut savagely programs needed by the leadership in the Congress voted in a permission to revise and extend his re- poor and vulnerable in order to give tax tax increase that hit seniors, hit the marks.) breaks to the rich and the powerful. middle class, and slowed economic Mr. SANDERS. Mr. Speaker, more Mr. Speaker, this is a bad bill because it growth. than half of the tax cuts proposed by does not allow us to provide rational alter- Two hundred forty billion dollars’ the Republicans today for individuals natives to the tax breaks for the rich scheme worth of tax increases. All we are doing will benefit families earning over that is being presented today. It does not is allowing people to keep $190 billion $100,000 a year, and more than a quar- allow us to cut the tens and tens of billions of of those taxes for themselves to spend ter of the tax cuts will go to families dollars in corporate welfare that the largest the way they think it ought to be earning over $200,000 a year. corporations in America receive. It does not spent. Not one Republican voted for The highest-earning 1 percent of fam- allow us to debate the propriety of millionaires that tax increase. ilies will get more in tax cuts than the saving large sums of money in taxes from the So today I urge my colleagues on the 60 percent of families at the lower end mortgage interest deduction on their palatial other side of the aisle to join with us in of the income scale. mansions. It does not allow us to remove Fed- righting the wrongs of 1993. Vote to This is the Robin Hood proposal in eral subsidies for such Federal agencies as stop taxing our seniors, vote to allow reverse. We savagely cut programs for OPIA, the Overseas Private Investment Asso- middle-class families to keep more of the poor and the vulnerable, and we ciation in which tax payers are paying to see their money, and vote to create jobs give huge tax breaks to the rich and their own jobs go to third world countries. for our workers. the powerful. Mr. Speaker, we need open and vigorous We have been asked how do you bal- Mr. Speaker, this is bad legislation debate about how we can move toward a bal- ance the budget by cutting taxes? Well, because it does not allow us to debate anced budget in a fair and progressive wayÐ we have shown you that we honor our the tens of billions of dollars in cor- not on the backs of the weak and the vulner- promises with passing the Contract porate welfare that goes to rich and able. We need fair and open debates to begin With America; we will also show you in large corporations. It does not allow us the process of eliminating the tax loopholes May when you cut taxes, as President to debate the propriety of millionaires and the subsidies which the wealthy in large Kennedy and President Reagan did, saving huge amounts of money on corporations receive. revenues go up and as we cut spending mortgage interest deductions. This is Mr. SOLOMON. Mr. Speaker, I yield 2 and the size of this Government, the bad legislation, a bad rule; let us defeat minutes to the gentlewoman from Utah cost of government goes down and the it. [Mrs. WALDHOLTZ] an outstanding American people allowed to hold onto Mr. Speaker, politics and much of what Member and the first Freshman female their money and spend it the time way goes on here in Congress is really not very Republican Member to serve on the they think is important. complicated. Everybody here understands that Committee on Rules since the First So I urge all my colleagues to vote the majority of poor and working people don't World War. for this rule, vote for job-creating, defi- vote and, for a variety of reasons, don't have Mrs. WALDHOLTZ. I thank the gen- cit-cutting, the Tax Fairness and Defi- much confidence that what happens here is tleman for yielding this time to me. cit Reduction Act. relevant to their lives. Mr. Speaker, today we will have the Mr. MOAKLEY. Mr. Speaker, I yield On the other hand, the wealthy and the chance to vote on a bill that will help 1 minute to the gentleman from North powerful do vote, do contribute very heavily to restore tax fairness to families and sen- Dakota [Mr. POMEROY]. the political parties, do have well-paid lobby- ior citizens. Mr. POMEROY. I thank the gen- ists and lawyers working full time for their in- For too long, American families and tleman for yielding this time to me. terests. And that in a nutshell is why the rich seniors have seen their tax burden rise. Mr. Speaker, I rise in strong opposi- get richer, the middle class is shrinking, and Today, the average American family tion to the rule before us. The majority the poor are becoming poorer and are facing pays more in taxes than it spends on leadership is desperate to convince this a terrible onslaught from the leadership of this food, clothing and shelter combined. House and the American public that House. Some senior citizens now face a mar- this is a bill for middle-income Ameri- Mr. Speaker, during the last several months ginal tax rate of 85 percent—a rate cans. But their very rule snuffs out an some of the wealthiest people in America and much higher than that of other Ameri- amendment offered by Democrats and representatives of the largest corporations cans. Republicans alike to ensure that it came together to contribute $11 million in one The problem is not that the Govern- goes where it ought to. The bill, the night to the Republican Party. Others came to- ment taxes too little; the problem is amendment I offered is a case in point. gether for a $50,000-a-plate fund raising din- that it spends too much. The American It would have established tax fairness ner with NEWT GINGRICH to raise money for a people are simply overtaxed. The Tax in the deductibility of health insur- rightwing television network. Corporation like Fairness and Deficit Reduction Act ance. Presently corporations can de- Amway and Golden Rule Financial have been recognizes families for what they are— duct 100 percent, self-employed individ- contributing hundreds of thousands of dollars the basic building block of American uals 30 percent, other individuals pay- into Republican party coffers. society. It will give them the tax relief ing their own premium, nothing at all. And today, Mr. Speaker, is payback time. they so desperately need and deserve, The bill I introduced would have al- After cutting back massively on programs for and despite allegations that this bill is lowed an 80-percent reduction in pre- low income people, on programs for children, for the wealthy, seventy-six percent of miums paid by individuals. This would on programs for the elderly, for students, for the tax cuts go directly to families. have made coverage more affordable the homeless, for people with Aids, today is The $500 per child tax credit will help for their families and would have in- payback time for the rich and the powerful. nearly one-quarter million parents in stalled tax fairness. That is why my Today, they get the return on their campaign my State of Utah alone. Listening to amendment was supported by the Farm contributions to the Republican party. the other side of the aisle you would H 4208 CONGRESSIONAL RECORD — HOUSE April 5, 1995 think that only wealthy people have nary Americans? This bill has provi- gentleman from Delaware [Mr. CAS- children. But, 75 percent of the family sions to allow Exxon to write off ex- TLE], the gentleman from Michigan tax credit goes to people with incomes penses on capital improvements, but [Mr. UPTON], the gentleman from New of less than $75,000. there are no breaks for students that York [Mr. SOLOMON], and a host of oth- Our bill recognizes the invaluable try to improve themselves through ers from both sides of the aisle, worked contribution homemakers make to the higher education. The greatest threats with the Republican leadership and family by allowing nonworking spouses to our Nation’s economy are soaring fashioned an agreement on the issue a full $2,000 deductible IRA contribu- deficits and the erosion of the middle that makes it entirely clear to the pub- tion instead of the current $250, helping class. Today’s tax cut legislation will lic that in passing tax relief we will not homemakers provide for their retire- not remedy any of these problems. In- abandon our pledge to bring the deficit ment years and recognizing the value stead it places the burden of future down to zero. and worth of their work at home. deficits squarely on the backs of work- According to the new provision, the Our bill also helps senior citizens. ing Americans. tax cuts in the bill cannot go into ef- Under the Clinton tax bill our seniors Economic indicators tell us that the fect until a budget is passed, putting us were unfairly singled out for higher economy is growing at a strong, steady on course to a balanced budget in the taxes through an increase on their So- pace. Do we really need to stimulate it year 2002, and each year thereafter cial Security. Our bill will repeal that with massive tax cuts for wealthy Congress will have to revisit our deficit tax increase and restore tax fairness to Americans and big business? reduction goals to make sure we stay elderly Americans. In addition, we will We should take advantage of a on track. help remove the penalty for seniors healthy economy and follow a prudent Mr. Speaker, I am pleased to say that who choose to work in their sunset course of deficit reduction that will so- years by raising the earnings test with the addition of these provisions to lidify our financial base. Let us send a this original bill my concerns have limit—rewarding rather than punishing message to Americans that Congress is working seniors. been satisfied. A good bill has been making honest spending cuts that pay made better, and the process is work- The tax money we collect is not ours, off our debts. Tying spending cuts to it belongs to the taxpayers. As we cut ing again. I urge support of this rule budgetary gimmicks further under- and this bill. Government spending and reduce the mines the credibility of this institu- Mr. MOAKLEY. Mr. Speaker, I yield size of the Government and balance the tion. 3 minutes to the gentleman from Flor- budget, we need to let people keep Mr. MOAKLEY. Mr. Speaker, I yield ida [Mr. GIBBONS], the former chairman more of the money they earn. I encour- 1 minute to the gentleman from Rhode of the Committee of Ways and Means. age my colleagues to support this rule, Island [Mr. KENNEDY]. Mr. GIBBONS. Mr. Speaker, this is a and this bill. Mr. KENNEDY of Rhode Island. Mr. time when we, as Members of Congress, Mr. MOAKLEY. Mr. Speaker, I yield Speaker, I rise against the rule and the should be deliberative and we should 1 minute to the gentleman from Texas, Republican tax cut for the wealthy take our time in doing the Nation’s [Mr. DOGGETT]. that this rule allows, a Republican tax business. This is a very, very impor- Mr. DOGGETT. I thank the gen- cut plan where, according to the Citi- tant piece of economic legislation. It is tleman for yielding this time to me. zens for Tax Justice, more than 71 per- Mr. Speaker, it is true the circus is cent of total capital gains tax cut a very, very important piece of social in town, but not really the roar of the breaks goes to those who make more legislation. The Senate, when it will lion that we hear today. The signifi- than $200,000 a year. look at it, will call this a $700 billion cant thing is a certain mooing sound The question is: Who is going to pay? tax cut. That is because they prefer to that is under way. You see, I do not be- School lunches are getting cut. El- look at it in its longer term rather lieve we will ever get the budget in bal- derly are getting tossed out of senior than the very short term that we ance without a true bipartisan effort. I high-rises because they are reducing House Members look at it. thought we were headed in that direc- the amount of subsidies for the elderly This is the wrong time in America’s tion because I have a letter here that to have affordable high-rises. In addi- history to be cutting taxes. This is a was signed by 105 Republican Members tion, they have not let the students time in America’s history to be cutting who said that they recognized there alone either. They are now going to the deficit. Why? Because America is was a need for more money for deficit tack on interest payments for student at full employment today. Why? Be- reduction and they could change their loans starting the day the student en- cause America is using its maximum tax proposal and apply it to only 85 ters the university. factory capacity utilization today. percent of the families in this country This is not progressive and far from Factory capacity utilization today in and provide an addition $12 billion to being the middle-class tax cut that the America is the highest it has been in $14 billion in deficit reduction. 1 Republicans would have us believe be- 15 ⁄2 years. The Federal Reserve knows b 1400 cause it is putting the burden on the it; that is the reason why they have in- creased interest rates 7 times in the That represented a half step, and it is students, and who gets the break? The last 14 months. Every sensible econo- sure a lot better than the lockstep we people who have the most money. have seen most of this session of Con- It figures. It is the Republicans all mist knows that this is the wrong time gress. But somewhere along the way over again. to be cutting taxes. They tell us it is that all changed. We are not going to Mr. SOLOMON. Mr. Speaker, I yield only time, the right time, to cut the have a chance to vote on that proposal such time as he may consume to the fiscal deficit. of 105 Republican Members because gentleman from New Jersey [Mr. MAR- This bill, when it comes up, and it is somewhere along the way the Speaker TINI], another outstanding freshman going to come up, they have twisted said ‘‘no,’’ and I do not know what it is Member who was helpful in writing in enough arms to get it up, is an inequi- that is so persuasive about him, but the language that is going to bring us table piece of social justice. Let us sometimes I get the feeling that, when to a balanced budget. take the capital gains issue. It is a these Members are around him, they Mr. MARTINI. Mr. Speaker, as we huge item in all of this, and who gets are so cowed, I can almost hear them have kept our promises these first 100 it? Only 8 percent of all taxpayers ever moo. days, we have made the democratic take a capital gains, 8 percent. But in Mr. MOAKLEY. Mr. Speaker, I yield process work. This week it will con- this bill one-half of the capital gains 1 minute to the gentleman from New tinue to work with the passage of this will be taken by the upper 1 percent of Mexico [Mr. RICHARDSON]. rule and this bill. our income earners every years, and (Mr. RICHARDSON asked and was Mr. Speaker, as originally written I they will take them every year, not given permission to revise and extend must confess that I was concerned that just one time in a lifetime like most his remarks.) the tax package in the Contract With Americans. Mr. RICHARDSON. Mr. Speaker, in America did not place enough emphasis Let us tell the truth about the cap- this tax bill, where are the tax breaks on deficit reduction. Mindful of that ital gains thing. Eight percent of designed to improve the lives of ordi- concern, a group of us, including the Americans ever take a capital gain. Of April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4209 that 8 percent, more than half of it of debate on a matter of such gravity Now, when the gentleman from Flor- goes to those above $200,000, and I say, for the Nation’s future—$630 billion to ida [Mr. GIBBONS] came before the ‘‘If you look at those people again, be exact. Committee on Rules, he requested a they’re not just taking one or two cap- While I dare say that H.R. 1215 is far closed rule. We are not even going as ital gains in a lifetime. They take mul- from the crown jewel that it has been far as the distinguished ranking minor- tiple capital gains every year.’’ And touted to be by some, I will be the first ity member of the Committee on Ways what do they do? They are just swap- to admit that the bill makes several and Means would like, but we do have ping their equities around between changes in the Tax Code that I think a modified closed rule. It is a measure each other. Somebody buys their bad are long overdue: easing the tax burden which is bringing to the floor an oppor- investment if they want to get rid of it. on senior citizens, providing tax credits tunity for us to do what the American There is no creation of additional cap- for expenses incurred when adopting a people have said overwhelmingly that ital. It is just a game there. child or caring for an elderly parent or they want. They want us to try and re- So it is bad economic justice, it is grandparent in your home, and index- duce the size and scope of Government bad social justice. ing capital gains. I would like to sup- and allow them to keep a little bit of Now let us take the family credit. port provisions such as these, but this When the Republicans first introduced what they have earned. rule doesn’t allow me to do that in a Now, as I have been listening to the this bill, they gave a family credit, to fiscally responsible manner. We are low income individuals, those below rhetoric over the past few minutes told to take all or nothing, and if that about us versus them, class warfare, I $50,000. The gentleman from Texas [Mr. is the case I will have no choice but to am very discouraged. I have enjoyed ARMEY] stood on the Capitol steps out vote no. working for years with the gentleman there with the bill on September 27, Mr. Speaker, I will not vote for a bill from Florida [Mr. GIBBONS] on trade is- 1994, and shook it into everybody’s that will enable some of our wealthiest sues, but, when I hear him talking face, but this bill takes away 13 billion corporations to avoid taxes altogether dollars worth of family tax credit from while giving just $90 in tax relief for a about the very few who will utilize the all those families earning less than family with an income of $20,000, and capital gains tax reduction versus $50,000 a year. That is not fair, that is then forces massive cuts in programs those working individuals who do not not just, and that is not correct. that would have a devastating impact or would not be able to, I cannot help The SPEAKER pro tempore. (Mr. on hardworking Americans. For the but think of a column that appeared GOODLATTE). The time of the gen- citizens I represent in New York, this recently in the New York Post where tleman from Florida [Mr. GIBBONS] has bill spells higher transit fares, dev- Thomas Sowell said, expired. astating cuts in Medicare, reduced stu- Class-warfare politics is not just fraudu- Mr. MOAKLEY. Mr. Speaker, does dent loans, hungrier school children, lent, it is a cheap play on envy and a very se- the gentleman from Florida want an- less affordable child care, and fewer po- rious disservice to the whole country. Not other minute? lice on the beat. only does it divide us yet another way, it Mr. GIBBONS. Yes. One of the bill's more offensive provisions is threatens the very process by which all of us Mr. MOAKLEY. Mr. Speaker, I yield have benefited economically. 1 additional minute to the gentleman the repeal of the corporate alternative mini- from Florida. I just did not want to mum tax, which was instituted in 1986 be- b 1415 slow the gentleman down when he got cause more than half of the Nation's most profitable corporations had been able to utilize This is a balanced approach. We want that steam going. to recognize that we are in this to- Mr. GIBBONS. Mr. Speaker, I appre- various loopholes in the Tax Code to pay no gether. The American people want us ciate it, and I say, ‘‘You know I appre- Federal income taxes, even though they were to responsibly deal with deficit reduc- ciate you, Mr. SOLOMON, but you gave reporting huge profits. The inequity of this situ- me an hour to ration between 204 ation was so clear that the Reagan Adminis- tion. Democrats. I’ve been swamped for re- tration supported establishment of a corporate This bill is a very important step on quests for time. They would like to AMT. the road toward a balanced budget. stay here and debate this.’’ Repeal of the corporate AMT would clearly Why? Because every shred of evidence I see the Speaker standing in the represent an inequitable shift in the tax bur- is that with this capital gains tax rate back back there chatting with the den. Seventy-four percent percent of the cor- reduction, we are going to see an in- chairman of the Committee on the porations who pay the corporate minimum tax crease in the flow of revenues to the Budget, and I say, ‘‘We welcome you have assets greater than $250 million. Given Federal Treasury. That increase is here, Mr. Speaker. We don’t see you as these facts, it is not surprising that its repeal going to help us responsibly get to a much as we used to, but we’re glad to was not originally part of the Contract With balanced budget. have you here today. Have you gotten America. Instead, it was added in at the 11th I urge support of this fair and bal- off the elephant out there in the circus. hour, when the American people weren't look- anced modified closed rule, and urge or are you coming in here to ride this ing and special interest lobbyists were hard at my colleagues to join us. elephant?’’ work. Mr. SOLOMON. Mr. Speaker, I yield Mr. Speaker, this is a lousy bill. It is Let me remind my colleagues that under such time as he may consume to the this rule we will not have the opportunity to the wrong time to be reducing taxes. gentleman from Delaware [Mr. CASTLE] We ought to be reducing the deficit vote to restore the corporate AMT; to make a former Governor of Delaware and one the Social Security tax repeal effective imme- now. We should not be cutting taxes of the outstanding Members of this diately, as it should be; to help students pay the way we are doing it. It is reckless, body, who has participated in writing for college; and to decide if the child tax credit it is irresponsible, it is bad policy for the balanced budget legislation. the American economy, it is bad policy should be available to the families of 35 per- (Mr. CASTLE asked and was given for the American people. cent of our Nation's children who need it most permission to revise and extend his re- Mr. MOAKLEY. Mr. Speaker, I yield but who would not benefit from the credit as marks.) 11⁄2 minutes to the gentlewoman from it is currently written in this bill. New York [Mrs. LOWEY]. I urge a no vote on this rule. Mr. CASTLE. Mr. Speaker, I rise in support (Mrs. LOWEY asked and was given Mr. SOLOMON. Mr. Speaker, I yield 2 of the rule for consideration of H.R. 1215, the permission to revise and extend her re- minutes to the gentleman from Califor- Tax Fairness and Deficit Reduction Act of marks. nia [Mr. DREIER], a very outstanding 1995. Mrs. LOWEY. Mr. Speaker, I rise in veteran member of the Committee on The American people deserve to keep more strong opposition to this closed and re- Rules. of their hard-earned money. They recognize strictive rule. I cannot believe that my (Mr. DREIER asked and was given that the Federal Government is collecting an colleagues in the majority, who permission to revise and extend his re- ever larger share of their earnings and that the claimed that they would open up this marks.) money it collects is often not well spent. Amer- House, could come to us with a Mr. DREIER. Mr. Speaker, I rise in icans do not mind paying their fair share of the straight face and gag this Chamber very strong support of this fair and bal- costs for our Nation's needsÐprotecting our with a rule that restricts us to 5 hours anced modified closed rule. national security, looking after those who truly H 4210 CONGRESSIONAL RECORD — HOUSE April 5, 1995 need help. But the programs and operations of gentlewoman from Texas [Ms. JACK- Mr. SOLOMON. Mr. Speaker, I yield the Federal Government have become too big SON-LEE]. myself the balance of my time. and far too inefficient. Excessive Federal (Ms. JACKSON-LEE asked and was Mr. Speaker, I have here the U.S. Tax spending has resulted in a national debt of given permission to revise and extend Code. It is the fear of every American. $4.8 trillion and deficits of almost $200 billion her remarks.) If we had an open rule today we would adding to that debt every year. Ms. JACKSON-LEE. Mr. Speaker, I open it up, and gosh knows what would Americans want relief from taxes, but what rise to oppose this rule as a happen. my constituents in Delaware tell me is that re- noninclusive rule and hurting the Mr. Speaker, we have heard a lot of ducing the deficit, balancing the budget, and American people. complaining about the tax cuts in this making the Government live within its means Mr. Speaker, I rise in strong support of the bill, but I wonder if the real opposition is what they want done first, I am happy to Democratic substitute to H.R. 1215. The is to the fact on something we have not say that we now have language in this bill that Democratic substitute benefits primarily low- heard about much here today. Is there will ensure that Congress acts to cut the defi- and middle-income Americans. Whereas, H.R. $100 billion in real spending cuts in this cit and balance the budget before the tax cuts 1215 benefits primarily wealthy Americans bill? That is what Members are going can become law. with incomes above $200,000. to be voting for. The Rules Committee has added an amend- The Democratic substitute sponsored by my You know, I said at the time when we opened this debate that a vote on this ment offered by Mr. UPTON, Mr. MARTINI, and colleague, RICHARD GEPHARDT of Missouri, en- myself which states that the tax provisions in sures that 100 percent of the benefits of the rule is going to be a vote for a balanced this bill cannot become law until Congress tax cut will accrue to families with adjusted budget. Let me tell you, a vote against passes a budget resolution and reconciliation gross income of less than $100,000. More- the rule is going to be a vote against a legislation that will result in a balanced budget over, it permits us to invest in human capital balanced budget. by the year 2002. This provision reflects the by allowing middle-income families to deduct What the people are really afraid of is the language that appears in this will of our constituents: cut taxes, but not at up to $10,000 in educational expenses per bill, and it says, ‘‘. . . the budget of the the expense of balancing the budget. year. United States will be in balance by the By including this important provision in the Furthermore, the Gephardt bill encourages fiscal year 2002.’’ And the second part bill we are insuring that Congress will have to Americans to emphasize savings for their re- of it is something they fear even more. face the difficult decisions to reduce Govern- tirement years by expanding the number of ment spending. If Congress cannot make It writes into law ‘‘the aggregate taxpayers who would be eligible to deduct those decisions, the tax cuts will not go into amount of deficit reduction to effec- contributions to individual retirement accounts effect. It is as simple as that. tuate the reconciliation instructions [IRA]. This is accomplished by raising the ad- The Castle-Upton-Martini amendment also required for the years covered by that justed gross income level requirement from adds two key requirements to force Congress resolution necessary to so balance the $35,000 to $50,000 for single taxpayers and and the President to continue to work toward budget.’’ $60,000 to $75,000 for couples who file joint a balanced budget. That will become the law if you vote tax returns. After Congress passes the budget reconcili- for this rule and the bill it will bring The Gephardt bill also affirms our commit- ation legislation that places us on course to a up. ment to balancing the Federal budget. This bill balanced budget, in each subsequent year the Mr. Speaker, when you look at this requires certification by the Office of Manage- budget committees and CBO must report on chart, you see that President Clinton whether we are still on the path to balance in ment and Budget [OMB] that the Federal projected, when he gave us the budget 2002. If we fall off course, Congress must budget will be balanced in fiscal year 2002. a few months ago, another $1 trillion, consider ways to get back on course in that H.R. 1215 fails to incorporate the requirement $996 billion, added to the debt. What is year's budget resolution. In short, Congress that deficit reduction be a priority. compassionate about that, to load that must take action if the deficit begins to in- Frankly, the Democratic bill promotes fair- kind of deficit on the American people crease. ness, maintains fiscal responsibility, and and their children and my grand- Equally as important, this provision will re- strengthens American families. And finally it is children? quire the President to join in this effort, by re- a good commonsense tax bill because it in- We can have a chance to do some- quiring him to submit a balanced budget each vests in our peopleÐcollege loans for stu- thing about it right now. Vote for the year. This year, President Clinton has chosen dentsÐpart of America's future. previous question. again to propose a budget that would result in Mr. MOAKLEY. Mr. Speaker, I yield Mr. NADLER. Mr. Speaker, I rise to oppose annual deficits of $200 billion for the next 5 myself such time as I may consume. this rule on the Tax Fairness and Deficit Re- years. Under this amendment, if the President Mr. Speaker, in closing I would like duction Act, H.R. 1215. chooses not to officially submit a balanced to urge Members to defeat the previous The Contract With America states that budget, he would have to offer an alternative question. If the previous question is de- ``within the first 100 days of the 104th Con- plan that shows how the budget could be bal- feated, I intend to offer an amendment gress, we shall bring to the House Floor the anced. It forces the President to face the to the rule which will allow Members following bills, each to be given full and open same decisions the Congress must face. to vote on several amendments: debate, each to be given a clear and fair vote Mr. Speaker, I support tax relief for families, The Ganske amendment, which low- and each to be immediately available this day savings incentives for individual Americans, ers the eligible income level for the for public inspection and scrutiny.'' With a and investment incentives for business. But, I child tax credit; closed rule on the tax bill, the Republicans am adamant about the critical need to balance The Kennelly amendment relating to have not provided, as they said they would, the budget. I support the rule because it clear- taxable income for the blind; for a ``full and open debate'' on this crucial ly links tax cuts to deficit reduction. My col- The Browder amendment tying the legislation. leagues and I will continue this effort on the tax cuts to deficit reduction; I would agree that many Americans need budget resolution and the budget reconciliation The Wolf amendment which strikes tax relief, and that we must do all that we can bill to ensure that we stay on course to a bal- the tax increase on Federal workers; to ensure fairness for our seniors and families. anced budget. and That is why I offered two amendments to this I want to thank FRED UPTON and BILL MAR- The Nadler-Lowey amendment which legislation which would have furthered these TINI for their efforts on this amendment. I also restores the pre-1993 lower tax rate for very important goals. But, unfortunately, ``full want to acknowledge Mr. BROWDER and Mr. middle-income seniors immediately and open debate'' on these amendments was ORTON for their leadership on the need for rather than being phased in as the bill denied, and the Members of this House will deficit reduction. Finally, I appreciate the work does. not have the opportunity to vote on these of JOHN KASICH and JIM NUSSLE, and the Re- And many others as well. amendments. publican leadership for working with us to This will be the only opportunity on My colleague from New York, NITA LOWEY, make this provision part of the bill. I urge sup- this bill to have votes on these issues and I introduced an amendment which would port of the rule and approval of the tax fair- affecting Federal workers, the blind, repeal immediately the increased tax on Social ness and deficit reduction bill. the middle class, deficit reduction, and Security benefits rather than repeal it over a 5- Mr. MOAKLEY. Mr. Speaker, I yield the elderly. I urge Members to vote year period, as the Republican bill does. While such time as she may consume to the ‘‘no’’ on the previous question. our amendment would have granted seniors April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4211 immediate tax relief, and would have been Mr. Speaker, this bill is unfair and I urge my Hastert McCollum Schaefer Hastings (WA) McCrery Schiff paid for by striking from the bill a repeal of the colleagues to oppose this rule. Hayworth McDade Seastrand Corporate Alternative Minimum TaxÐmaking Ms. DUNN of Washington. Mr. Speaker, I Hefley McHugh Sensenbrenner corporations pay their fair share of taxesÐit rise in strong support of this rule. Heineman McInnis Shadegg Two years ago, the liberal Democrats voted Herger McIntosh Shaw was, nonetheless, rejected by the Rules Com- Hilleary McKeon Shays mittee. When we raised this issue of equity re- for the largest tax in history. Today, we right Hobson Metcalf Shuster garding our Nation's seniors we were hushed. that wrong by allowing the American people to Hoekstra Meyers Skeen While this bill does much to provide signifi- keep more of their hard-earned money. Hoke Mica Smith (MI) Horn Miller (FL) Smith (NJ) cant and immediate tax relief for wealthy cor- The Republican Tax Relief and Deficit Re- Hostettler Molinari Smith (TX) porations, it delays tax relief and fairness for duction Act accomplishes many things for Houghton Moorhead Smith (WA) our Nation's seniors. While the Republicans American families. One of the most symbolic Hunter Morella Solomon and important is the provision that corrects an Hutchinson Myers Souder state that this bill will provide fairness, this, to Hyde Myrick Spence me, does not seem fair. inequity against the American homemaker. Inglis Nethercutt Stearns Repealing the Social Security tax increase Mr. Speaker, the current Tax Code treats Istook Neumann Stockman American homemakers, who are overwhelm- Johnson (CT) Ney Stump immediately and paying for it by requiring Re- Johnson, Sam Norwood Talent publicans to retain the Corporate Alternative ingly women, as second class citizens. Jones Nussle Tate Minimum Tax is only fair and equitable. The In the eyes of the Federal Government, the Kasich Oxley Taylor (NC) Alternative Minimum Tax was adopted to stop work of the homemaker is not as valuable as Kelly Packard Thomas the work of her husband. Kim Paxon Thornberry the practice of large corporations using the tal- King Petri Tiahrt ents of high-priced tax lawyers to contrive in- For tax purposes, a single-income family Kingston Pombo Torkildsen genious loopholes that enable them to escape can set aside for retirement roughly one-half Klug Porter Upton what a dual-income family can. Our spousal Knollenberg Portman Vucanovich all taxation. To provide these huge tax give- Kolbe Pryce Waldholtz aways to corporations and not provide imme- IRA proposal allows the work-at-home spouse LaHood Quillen Walker diate tax relief and fairness to our Nation's to save $2,000 just like the spouse. Largent Quinn Walsh senior would be the height of unfairness and This rule, and the Republican tax relief bill, Latham Radanovich Wamp acknowledge the value and hard work of the LaTourette Ramstad Watts (OK) hypocrisy. It would be a moral outrage to allow Lazio Regula Weldon (FL) or Nation's most profitable corporations to millions of homemakers in America. Leach Riggs Weldon (PA) cease paying income taxes immediately, while Support this rule, support homemakers, and Lewis (CA) Roberts Weller Lewis (KY) Rogers White requiring seniors to wait half a decade for tax support the families of America. Mr. SOLOMON. Mr. Speaker, I move Lightfoot Rohrabacher Whitfield relief. Linder Ros-Lehtinen Wicker Mr. Speaker, after restoring fairness to sen- the previous question on the resolu- Livingston Roth Wolf iors by repealing the Social Security tax in- tion. LoBiondo Royce Young (AK) The SPEAKER pro tempore (Mr. Longley Salmon Young (FL) crease immediately, our amendment would Lucas Sanford Zeliff have left approximately $7 billion for deficit re- GOODLATTE). The question is on order- Manzullo Saxton Zimmer ductionÐalmost half of the amount of appro- ing the previous question. Martini Scarborough priations this House rescinded earlier this The question was taken; and the Speaker pro tempore announced that NAYS—203 month for this very purpose. the ayes appeared to have it. Abercrombie Evans Lofgren Our amendment would have significantly re- Mr. MOAKLEY. Mr. Speaker, I object Ackerman Farr Lowey duced the deficit, while restoring tax fairness Andrews Fattah Luther to the vote on the ground that a to our Nation's seniors, but the Republican Baesler Fazio Maloney quorum is not present and make the Baldacci Fields (LA) Manton leadership would not allow this fiscally prudent point of order that a quorum is not Barcia Filner Markey amendment to be considered on the House Barrett (WI) Flake Martinez present. floor. Becerra Foglietta Mascara The SPEAKER pro tempore. Evi- Beilenson Ford Matsui Our amendment would have done the right dently a quorum is not present. Bentsen Frank (MA) McCarthy thing by making profitable corporations pay The Sergeant at Arms will notify ab- Berman Frost McDermott their fair share and lifting this unjustified in- Bevill Furse McHale sent Members. creased tax burden off senior citizens imme- Bishop Gejdenson McKinney The vote was taken by electronic de- Bonior Gephardt McNulty diately. vice, and there were—yeas 230, nays Borski Geren Meehan I asked, again with no success, that the Boucher Gibbons Meek 203, not voting 2, as follows: Rules Committee consider another one of my Brewster Gonzalez Menendez [Roll No. 289] Browder Gordon Mfume amendments. The amendment would simply Brown (CA) Green Miller (CA) index income taxes to reflect regional dif- YEAS—230 Brown (FL) Gutierrez Mineta ferences in the cost of living. These dif- Allard Canady English Brown (OH) Hall (OH) Minge ferences mean that an income which might Archer Castle Ensign Bryant (TX) Hall (TX) Mink Armey Chabot Everett Cardin Hamilton Moakley make one well off in, say, rural Arkansas, Bachus Chambliss Ewing Chapman Harman Mollohan would barely afford a middle-class lifestyle in Baker (CA) Chenoweth Fawell Clay Hastings (FL) Montgomery New York or Dallas. Yet the current Tax Code, Baker (LA) Christensen Fields (TX) Clayton Hayes Moran Ballenger Chrysler Flanagan Clement Hefner Murtha by taxing nominal, rather than regionally ad- Barr Clinger Foley Clyburn Hilliard Nadler justed, incomes, treats each of these tax- Barrett (NE) Coble Forbes Coleman Hinchey Neal payers as if their incomes were economically Bartlett Coburn Fowler Collins (IL) Holden Oberstar equivalent. Barton Collins (GA) Fox Collins (MI) Hoyer Obey Bass Combest Franks (CT) Condit Jackson-Lee Olver We know that this is not the case. Bateman Cooley Franks (NJ) Conyers Jacobs Ortiz People living in high cost-of-living areas, like Bereuter Cox Frelinghuysen Costello Jefferson Orton New York City, should not be penalized by the Bilbray Crane Frisa Coyne Johnson (SD) Owens Bilirakis Crapo Funderburk Cramer Johnson, E. B. Pallone tax system. By regionally adjusting income tax Bliley Cremeans Gallegly Danner Johnston Parker brackets, we can make the tax burden on Blute Cubin Ganske de la Garza Kanjorski Pastor American families more fair and equitable. Boehlert Cunningham Gekas DeFazio Kaptur Payne (NJ) Furthermore, I find it ironic that this rule Boehner Davis Gilchrest DeLauro Kennedy (MA) Payne (VA) Bonilla Deal Gillmor Dellums Kennedy (RI) Pelosi waives the requirement for a three-fifths vote Bono DeLay Gilman Deutsch Kennelly Peterson (FL) in order to increase taxes. The Republicans Brownback Diaz-Balart Gingrich Dicks Kildee Peterson (MN) passed a rule earlier this Congress which Bryant (TN) Dickey Goodlatte Dingell Kleczka Pickett Bunn Doolittle Goodling Dixon Klink Pomeroy would require that in order to increase taxes Bunning Dornan Goss Doggett LaFalce Poshard the House had to have a three-fifths vote. Burr Dreier Graham Dooley Lantos Rahall Now they are waiving this rule for the pur- Burton Duncan Greenwood Doyle Laughlin Rangel poses of passing their tax bill which gives tax Buyer Dunn Gunderson Durbin Levin Reed Callahan Ehlers Gutknecht Edwards Lewis (GA) Richardson breaks to the wealthy. The hypocrisy here Calvert Ehrlich Hancock Engel Lincoln Rivers again is blatant. Camp Emerson Hansen Eshoo Lipinski Roemer H 4212 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Rose Stenholm Velazquez Packard Scarborough Taylor (NC) So the resolution was agreed to. Roukema Stokes Vento Parker Schaefer Thomas Roybal-Allard Studds Visclosky Paxon Schiff Thornberry The result of the vote was announced Rush Stupak Volkmer Petri Seastrand Tiahrt as above recorded. Sabo Tanner Ward Pombo Sensenbrenner Torkildsen A motion to reconsider was laid on Sanders Tauzin Waters Porter Shadegg Traficant Sawyer Taylor (MS) Watt (NC) Portman Shaw Upton the table. Schroeder Tejeda Waxman Pryce Shays Vucanovich PERSONAL EXPLANATION Schumer Thompson Williams Quillen Shuster Waldholtz Scott Thornton Wilson Quinn Skeen Walker Mr. POMEROY. Mr. Chairman, I regret that Serrano Thurman Wise Radanovich Smith (MI) Walsh I was not present for rollcall vote No. 290, the Sisisky Torres Woolsey Ramstad Smith (NJ) Wamp Skaggs Torricelli Wyden Regula Smith (TX) Watts (OK) rule to provide for the consideration of H.R. Skelton Towns Wynn Riggs Smith (WA) Weldon (FL) 1215, the Contract With America Tax Relief Slaughter Traficant Yates Roberts Solomon Weldon (PA) Act of 1995. I was unavoidably detained in a Spratt Tucker Rogers Souder Weller meeting with Office of Management and Budg- Rohrabacher Spence White NOT VOTING—2 Ros-Lehtinen Stearns Whitfield et Director Alice Rivlin regarding Missouri Reynolds Stark Roth Stockman Wicker River flood control. I spoke on the floor of the Royce Stump Young (AK) House twice against the rule and, had I been b 1437 Salmon Talent Young (FL) Sanford Tate Zeliff present, I would have voted ``no.'' Mr. DAVIS changed his vote from Saxton Tauzin Zimmer ‘‘nay’’ to ‘‘yea.’’ f NOES—204 So the previous question was ordered. Abercrombie Gephardt Neal PARLIAMENTARY INQUIRY The result of the vote was announced Ackerman Gibbons Oberstar as above recorded. Andrews Gonzalez Obey Mr. MORAN. I have a parliamentary The SPEAKER pro tempore (Mr. Baesler Gordon Olver inquiry, Mr. Speaker. GOODLATTE). The question is on the Baldacci Green Ortiz Barcia Gunderson Orton The SPEAKER pro tempore (Mr. resolution. Barrett (WI) Gutierrez Owens GOODLATTE). The gentleman will state The question was taken; and the Becerra Hall (OH) Pallone his parliamentary inquiry. Speaker pro tempore announced that Beilenson Hall (TX) Pastor Mr. MORAN. Mr. Speaker, it is my Bentsen Hamilton Payne (NJ) the ayes appeared to have it. Bereuter Harman Payne (VA) recollection that this body passed leg- RECORDED VOTE Berman Hastings (FL) Pelosi islation earlier this term, in fact, on Mr. MOAKLEY. Mr. Speaker, I de- Bilbray Hefner Peterson (FL) the first day of this session, that re- Bishop Hilliard Peterson (MN) mand a recorded vote. Bonior Hinchey Pickett quired that any tax increase be passed A recorded vote was ordered. Borski Holden Poshard with a three-fifths vote of this body. The vote was taken by electronic de- Boucher Horn Rahall Since there is a tax increase to be Brewster Hoyer Rangel vice, and there were—ayes 228, noes 204, Browder Jackson-Lee Reed leveled on Federal employees, in the not voting 3, as follows: Brown (CA) Jacobs Richardson case of the Federal Employees Retire- [Roll No. 290] Brown (FL) Jefferson Rivers ment System, a 313 percent increase on Brown (OH) Johnson (SD) Roemer AYES—228 Bryant (TX) Johnson, E. B. Rose their retirement contribution; in the Allard Diaz-Balart Hunter Cardin Johnston Roukema case of the Civil Service Retirement Archer Dickey Hutchinson Chapman Kanjorski Roybal-Allard System there was a 35 percent increase Armey Doolittle Hyde Clay Kaptur Rush in their retirement contribution. This Bachus Dornan Inglis Clayton Kennedy (MA) Sabo Baker (CA) Dreier Istook Clement Kennedy (RI) Sanders is clearly a tax increase, Mr. Speaker. Baker (LA) Duncan Johnson (CT) Clyburn Kennelly Sawyer Therefore, it seems to me, to be con- Ballenger Dunn Johnson, Sam Coleman Kildee Schroeder sistent with the legislation this body Collins (IL) Kleczka Schumer Barr Ehlers Jones previously passed, it would require a Barrett (NE) Emerson Kasich Collins (MI) Klink Scott Bartlett English Kelly Condit LaFalce Serrano three-fifths vote. I would reserve my Barton Ensign Kim Conyers LaHood Sisisky point of order, but I would make that Bass Everett King Costello Lantos Skaggs parliamentary inquiry at this time. Bateman Ewing Kingston Coyne Levin Skelton Bevill Fawell Klug Danner Lewis (GA) Slaughter The SPEAKER pro tempore. The Bilirakis Fields (TX) Knollenberg Davis Lincoln Spratt Chair will take the gentleman’s in- Bliley Flanagan Kolbe de la Garza Lipinski Stark quiry under advisement and rule on it Blute Foley Largent DeFazio Lofgren Stenholm Boehlert Forbes Latham DeLauro Lowey Stokes at the appropriate time. Boehner Fowler LaTourette Dellums Luther Studds Mr. MORAN. Mr. Speaker, I would Bonilla Fox Laughlin Deutsch Maloney Stupak ask, when would be the appropriate Dicks Manton Tanner Bono Franks (CT) Lazio time for a ruling on this parliamentary Brownback Franks (NJ) Leach Dingell Markey Taylor (MS) Bryant (TN) Frelinghuysen Lewis (CA) Dixon Martinez Tejeda inquiry? Bunn Frisa Lewis (KY) Doggett Mascara Thompson The SPEAKER pro tempore. Pending Bunning Funderburk Lightfoot Dooley Matsui Thornton final passage of the legislation. Burr Gallegly Linder Doyle McCarthy Thurman Burton Gekas Livingston Durbin McDermott Torres Mr. MORAN. Mr. Speaker, when Buyer Geren LoBiondo Edwards McHale Torricelli would I be able to get a division of the Callahan Gilchrest Longley Ehrlich McKinney Towns question on that issue? Calvert Gillmor Lucas Engel McNulty Tucker Camp Gilman Manzullo Eshoo Meehan Velazquez The SPEAKER pro tempore. The Canady Gingrich Martini Evans Meek Vento Chair will state that the rule relates to Castle Goodlatte McCollum Farr Menendez Visclosky the vote on passage. The question be- Fattah Mfume Volkmer Chabot Goodling McCrery comes ripe for the House upon passage Chambliss Goss McDade Fazio Miller (CA) Ward Chenoweth Graham McHugh Fields (LA) Mineta Watt (NC) of the legislation. Christensen Greenwood McInnis Filner Minge Waxman Mr. MORAN. Mr. Speaker, the rule Chrysler Gutknecht McIntosh Flake Mink Williams said that all points of order are waived, Clinger Hancock McKeon Foglietta Moakley Wilson Coble Hansen Metcalf Ford Mollohan Wise but yet I am making an inquiry as to Coburn Hastert Meyers Frank (MA) Montgomery Wolf whether this is consistent with pre- Collins (GA) Hastings (WA) Mica Frost Moran Woolsey viously passed legislation of this body. Combest Hayes Miller (FL) Furse Morella Wyden Cooley Hayworth Molinari Ganske Murtha Wynn Cox Hefley Moorhead Gejdenson Nadler Yates b 1500 Cramer Heineman Myers NOT VOTING—3 It seems to me this then ought to en- Crane Herger Myrick Crapo Hilleary Nethercutt Pomeroy Reynolds Waters able us to call for a division as to the Cremeans Hobson Neumann ruling of the Speaker. What I want to Cubin Hoekstra Ney b 1455 understand is when that might occur, Cunningham Hoke Norwood Deal Hostettler Nussle Mr. TAUZIN changed his vote from when this body might be able to vote DeLay Houghton Oxley ‘‘no’’ to ‘‘aye.’’ on that ruling. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4213 The SPEAKER pro tempore (Mr. close the era of raising taxes on the The Democrats, who never met a tax GOODLATTE). If the gentleman will sus- working people of this country. When they didn’t hike—will again go off the pend. At this point the Chair is merely this bill is passed, the tax raising leg- deep end complaining about tax cuts. I not responding to an anticipatory par- acy of President Clinton and his party have a simple message for the Demo- liamentary inquiry. The Chair will rule will officially be over. crats. It is not your money. It is the at the appropriate time. It gives me great pleasure to look the taxpayers money. It does not belong to Mr. MFUME. When is the appropriate American people in the eye and say, the Government. It belongs to the time, Mr. Speaker? When is the appro- the days of tax and spend are over. The workers who earned it. priate time? days of smaller Government and less When it comes to taxes, the two par- The SPEAKER pro tempore. The ap- taxes are at hand. ties have very different views. Demo- propriate time is upon final passage. This is a bill to cut taxes. The tax crats think people work to support the f cuts are fully paid for, as we promised Government. Republicans think people they would be—and—in addition—we work to support themselves. GENERAL LEAVE reduce the deficit by $30 billion more Democrats think tax money is their Mr. ARCHER. Mr. Speaker, I ask than President Clinton’s budget. money. Republicans think tax money unanimous consent that all Members The baseball strike is behind us, Mr. belongs to the taxpayers. may have 5 legislative days in which to Chairman, and this bill is the first Democrats think tax rates should revise and extend their remarks, and home run of the new season. We cut start at 100 percent and anything less include extraneous material, on H.R. spending, we cut taxes, and we reduce than that is through the good graces of 1215, the bill about to be considered. the deficit. Washington, DC’s old con- the Government. Republicans think ventional wisdom said it couldn’t be The SPEAKER pro tempore. Is there tax rates should start at zero percent done. The mavins of the media were objection to the request of the gen- and anything more than that is saying just this week, well, you don’t tleman from Texas? through the good graces of the people. have the votes, do you? Well, stand There was no objection. The bottom line is this. When the back because we’re doing it—just as Democrats see someone in the middle f our Nation’s Governors have done it in many States. of their American dream, they shake CONTRACT WITH AMERICA TAX them, wake them, and tell them their RELIEF ACT OF 1995 We signed a contract with the Amer- ican people pledging to reduce the size dream can’t come true. Their message The SPEAKER pro tempore. Pursu- of Government and let the American is: If you make it in America we’re ant to House Resolution 128 and rule people keep more of their hard-earned gonna get ’ya. XXIII, the Chair declares the House in dollars. With this bill, we are again Republicans, on the other hand, want the Committee of the Whole House on keeping our promise. everyone to have an American dream the State of the Union for the consider- Our tax cuts can be summarized in come true. We want to open up oppor- ation of the bill, H.R. 1215. three words: family, children, jobs. Our tunities; we want the magic of free en- terprise to give every American the op- b 1501 tax relief package will help America’s families, and it will create better jobs portunity to become a rich American; IN THE COMMITTEE OF THE WHOLE for those families to head off to every and we want success to flourish in a Accordingly, the House resolved it- morning. million places, unhindered by the self into the Committee of the Whole Over the next 5 years, the Federal heavy hand of big government. House on the State of the Union for the Government will spend $9 trillion. Our Our tax cuts are fair, they are good consideration of the bill (H.R. 1215) to cuts—$189 billion—represent just 2 per- for families, and they will create jobs. amend the Internal Revenue Code of cent of Federal spending. The Federal That is why they are the right thing to 1986 to strengthen the American family Government is too big, it spends too do and that is why I ask for the support and create jobs, with Mr. BOEHNER in much, and it’s about time we cut it of members today. the chair. down to size. The Contract With America promised The Clerk read the title of this bill. These tax cuts coupled with our lower taxes and less government. And The CHAIRMAN. Pursuant to the pledge to get to a balanced budget will that’s the promise this bill keeps. rule, the bill is considered as having mean that when we get there, the gov- Every one of you who votes for this bill been read the first time. ernment will be 2 percent smaller yet. today is confirming that you meant Under the rule, the gentleman from In our bill, 76 percent of the tax cuts what you promised to the voters in Texas [Mr. ARCHER] and the gentleman go directly to families and the other 24 September of last year. from Florida [Mr. GIBBONS] will each be percent go towards job creation. Mr. Chairman, I reserve the balance recognized for 1 hour; the gentleman We bring tax relief to 42-million fam- of my time. from Ohio [Mr. KASICH] and the gen- ilies through a $500 per child tax credit, Mr. GIBBONS. Mr. Chairman, I yield tleman from Minnesota [Mr. SABO] will 20-million people benefit from marriage myself 11⁄2 minutes. each be recognized for 30 minutes; and penalty relief, and 7-million Americans Mr. Chairman, the gentleman from the gentleman from Virginia [Mr. BLI- will enjoy a new IRA known as the Texas [Mr. ARCHER] has just had a good LEY] and the gentleman from Michigan American Dream Savings Account. We time vilifying we Democrats. We be- [Mr. DINGELL] will each be recognized provide adoption tax credits and we lieve there are times for tax cuts, we for 30 minutes. provide credits for those who take care believe there are ways to tax-cut. We The Chair recognizes the gentleman of their ailing parents. believe it is the wrong time to cut from Texas [Mr. ARCHER]. We help 5 million seniors by repeal- taxes now. This is the time to cut the Mr. ARCHER. Mr. Chairman, I yield ing the punitive 85 percent Clinton tax deficit, not to cut taxes. myself such time as I may consume. hike on those who earn as little as Mr. Chairman, I was here in 1981 and (Mr. ARCHER asked and was given $34,000; we increase the earnings limit I want to just reminisce for a second permission to revise and extend his re- so seniors—just like the energizer and recall some of the things that went marks.) bunny—can go on working, and work- on in 1981. Mr. ARCHER. Mr. Chairman, I am ing and working—for as long as they In 1981, President Reagan was Presi- proud to support this bill which may be choose; and we provide long-term care dent, and his Office of Management and the most concrete sign yet that the tax relief and accelerated death bene- Budget Director Mr. Stockman ap- voters have ended 40 years of Democrat fits. peared before the Committee on Ways control over the House of Representa- Finally, we provide fuel for the en- and Means and he said this about the tives. Just 2 years ago, the Democrat gine that pulls the train of economic huge Reagan tax cut at that time: Congress passed the largest tax hike in growth by cutting capital gains taxes, The combination of incentive-minded tax history. Under the Democrats, tax in- repealing the alternative minimum rate reductions and firm budget controls is creases were the answer to every ques- tax, and by changing and improving expected to lead to a balanced budget by tion. In this bill, we proudly bring to a expensing for small business. 1984. H 4214 CONGRESSIONAL RECORD — HOUSE April 5, 1995

Does anybody remember that that is the gentleman from Ohio, JOHN KASICH, So why are you doing it? I think in when we began the huge deficit? Not to said earlier today, this is actually the part because extremism does not learn be outdone on that same day, President first step toward a balanced budget. by experience. Reagan’s Secretary of the Treasury This is the down payment. Second, because the moderates in Don Regan said this: Mr. GIBBONS. Mr. Chairman, I yield your party on the Republican side have If I know anything about the investing 41⁄2 minutes to the gentleman from essentially lost their way and there is process at all, and I spent most of my adult Michigan [Mr. LEVIN], a member of the no such left. This may satisfy the con- career in that, I think we have a tremendous Committee on Ways and Means. tract, but it sure changes America. boom facing us as a result of what we are This may be this crown jewel, rubies going to do today after we pass this tax bill. (Mr. LEVIN asked and was given per- mission to revise and extend his re- and sapphires for the privileged few. Can anybody remember what hap- marks.) For the rest of America it is costume pened? We had the biggest depression Mr. LEVIN. Mr. Chairman, this bill is jewelry at best. Let us reject it. If we right after that, after that tax bill not mainstream. This bill is extreme. do not, I predict it will be dead on ar- passed, that we had had since the This bill will not respond to the dreams rival in the U.S. Senate, but let us do 1930’s. It is deja vu all over again. The our job here and vote no. same rhetoric, the same people. of Americans. It is going to turn out to be a nightmare if it were to pass. Mr. ARCHER. Mr. Chairman, I yield Mr. ARCHER. Mr. Chairman, I yield 2 myself 1 minute just to respond to the minutes to the gentleman from Ohio I was not here in 1981. I came here in 1983. I came here when Michigan was in gentleman from Michigan. [Mr. PORTMAN], a member of the com- It is the same old story that we have mittee. a deep recession. I came here when un- employment rates were climbing to 17 heard. Figures do not lie, but, figures Mr. PORTMAN. Mr. Chairman, after here can be so distorted. In 1981 there hearing the debate this afternoon, I percent in my State, 17 percent. There has been a lot of partisanship in this was a tax reduction. There were not think it is important that we back up the precise spending cuts that the gen- a little bit and highlight the fundamen- debate and a lot of rhetoric. I am not tleman from Ohio [Mr. KASICH] has in- tal purpose of this tax relief bill. We saying the 1981 act was the sole respon- sible cause of that recession. But it was sisted on and are in this bill. This will are trying to strengthen the American be precisely paid for, as confirmed by part and parcel of it. family and yes, we are trying to en- CBO figures. Not only that, but over courage economic growth. That is what And here we go again. Here we go and above the tax cuts it will reduce we are going to do with this legislation again. The basic thrust of this proposal the deficit by $30 billion more than the if we are able to enact it. is you cut taxes mainly for the privi- Democrat President’s budget proposal, As the gentleman from Texas [Mr. leged few, not only, but mainly, and ev- by CBO numbers. ARCHER] told us moments ago, this new erybody is going to benefit, and the So the gentleman just is not on track Congress refuses to be stuck in the old deficit will disappear. That was the as- with his figures. thinking, refuses to cling to the tax- sumption in 1981 and now it is the as- Mr. GIBBONS. Mr. Chairman, I yield and-spend policies of the past. Instead, sumption in 1995. 5 minutes to the gentleman from Cali- it is simple. We believe in helping fami- But what happened? The deficit sky- fornia [Mr. MATSUI], a member of the lies and we believe in growing the rocketed. We know that, despite tax in- Committee on Ways and Means. economy through economic growth, creases while I was here, that Presi- not in growing big government. Mr. MATSUI. Mr. Chairman, I thank dent Reagan supported to try to coun- the gentleman from Florida, the rank- History is a good guide here. In 1948, teract what he did in 1981. The gen- the average American family of 4 paid ing member of the Ways and Means tleman from Florida [Mr. GIBBONS] was Committee, for yielding me this time. just 3 percent of their income to the here then for that experience. The gen- Federal Government. My 1992 that Fed- I think what both the gentleman tleman from Texas [Mr. GONZALEZ] I from Florida and the gentleman from eral tax bill had increased to about 25 see, and he was here, was forced to vote percent of family earnings. In 1993 Con- Michigan said was absolutely correct. I for tax increases because of the irre- was here in 1981, and I would implore gress added to that by passing the larg- sponsibility in 1981. est tax increase in American history. the Members of this House and this Do not say it helped the middle class. body to pick up the book by David Common sense tells us that Congress This chart shows what happened to in- has gone in the wrong direction. I Stockman, the Director of the Office of comes from 1973 to 1993, and it was not Management and Budget for President would hope we would all agree on both only because of the mistakes of 1981, sides of the aisle that it is fundamen- Reagan. but that was an important part of it. David Stockman, when he left the Of- tally important for us to have eco- What happened? This chart shows it nomic growth, increase jobs and in- fice of Management and Budget wrote a all, it shows it all. Income stagnation crease our global competitiveness. book called ‘‘The Triumph of Politics,’’ for the middle class, income loss for That is what this bill is all about. By and he said in that book essentially low-income families, and who bene- eliminating the marriage penalty, by that they knew that they would not fited? In those 20 years, 30 percent in- providing tax credits, by expanding achieve a balanced budget by 1984, 3 IRA’s, it encourages savings, savings creases for the upper fifth percentile. I years after they passed this massive we desperately need in this country represent some of the upper fifth per- tax cut; and, you know, Ronald Reagan and it encourages economic growth. centile. said we are going to have a tax cut, we Because it lowers the capital gains tax, I also represent those who are in the are going to increase defense and cut relieves corporations from the obsolete fourth quintile, and the third, and sec- spending and balance the budget in 36 burden of the alternative minimum ond, and the first. And I am not going months. tax, and permits small businesses to to vote to help those in the upper fifth That was smoke and mirrors, and ev- take tax deductions for needed invest- at the sacrifice of those in the lower eryone now admits it was smoke and ment, it will create jobs. fifth period, period. mirrors, and we are playing the same These and other changes will all en- It is bad, bad public policy. smoke and mirrors game again. hance U.S. competitiveness, which we So why are you doing it? You say the There is no way in 7 years we are have to have in order to survive in the taxes are paid for. The gentleman from going to achieve a balanced budget global economy of the 21st century. Florida [Mr. GIBBONS] referred to what from a $350 billion annual deficit today was presented in 1982, and I read it. and give tax cuts in excess of $188 bil- b 1515 This is what was presented as the budg- lion, and that is what we are talking For those who argue that cutting et proposal for the fiscal year 1982. about, $188 billion over the next 5 taxes is incompatible with our goal of What will the surplus or the deficit be? years; and over the next 10 years, even balancing the budget, let me be em- Just 00.5. When you round it off, zero. with the Republicans’ own actuarial phatic: This bill is paid for, more than That is what was said, and all your bill studies, it will cost $640 billion over the paid for, with spending cuts. I could says is the same pledge has to be made. next decade. There is no way you are not do it without this commitment. As It is not even a fig leaf, it is nothing. going to be able to achieve that result April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4215 with these tax cuts and balance the the reality is we should vote this down tleman will not leave the floor. I hope Federal budget at the same time. just to show we in this Congress, the that young 17-year-old gets a capital The reason the Republicans feel com- House of Representatives have dis- gains tax cut, but he would be better fortable and the reason this is probably cipline, unlike what we are seeing on off playing the lottery. Only 8 percent going to pass today is they know the the other side of the aisle. of the American taxpayers ever win United States is not going to accept it I urge a ‘‘no’’ vote on this particular anything on the capital gains tax cut. because it is so extreme. Even Senator bill. Mr. Chairman, I yield 3 minutes to PACKWOOD said this is nonsense, they Mr. ARCHER. Mr. Chairman, I yield the gentleman from Virginia [Mr. are not going to accept this. And so myself 30 seconds. PAYNE], a member of the Committee on they have nothing to worry about, they There they go again, there they go Ways and Means. are playing a little figment of imagina- again. Figures do not lie, but. Those Mr. PAYNE of Virginia. Well, Mr. tion on the American public, and they were Treasury figures. They do not cite Chairman, here we go again. are going to be able to go back home the Joint Committee figures that the Fifteen years after George Bush and say they passed these wonderful congressional activities depend upon. warned the Nation about voodoo eco- tax cuts that they know will never be- The Treasury figures are so distorted nomics, my friends on the other side of come law. Let me tell my colleagues, that they are not credible. They were the aisle are at it again. They are try- talking about this being paid for, they exposed as being noncredible in our ing to tell the American people that a have $188 billion over 5 years. We do committee when the Treasury witness 5-year, $188 billion tax cut is an impor- not even pay for it over 5 years. One of was before us. Imputing rental incomes tant stop along the road to a balanced the first things is they have $10.5 bil- to somebody that owns their own home budget. lion in spending cuts on pensions. They and saying that is income to you, this This time the American people know could not even pass pension reduction is ridiculous. These figures are just not better. They know, as I do, that this out of their committee. That is why credible. tax cut bill is fiscally and economi- that bill did not come to the floor. The Mr. Chairman, I yield 2 minutes to cally irresponsible. They know that committee that has jurisdiction over the gentleman from Minnesota [Mr. you can’t get something for nothing. this issue could not get a majority vote RAMSTAD], a member of the committee. to pass it out. So that is a figment. Mr. RAMSTAD. Mr. Chairman, I The American people know their his- There is $10 billion that they should thank the distinguished chairman for tory. They saw the national debt climb subtract; they are unwilling to do that. yielding me this time. from less than $1 trillion in 1980 to Then the $100 billion that they have Mr. Chairman, for the first time in more than $4.7 trillion today. of the $188, what happened there is the many American voters’ memories poli- Americans know that tax cuts did gentleman from Ohio [Mr. KASICH] the ticians are keeping their promises. The not balance the budget in 1981. And chairman of the Budget Committee, new House majority promised tax re- they know that tax cuts will not bal- says he has got some illustrative cuts. lief, and we are keeping our promise. ance the budget now. Illustrative cuts. They are not in place The new majority promised to pay Our constituents understand what yet. These are illustrative budget cuts for our tax cuts and lower the deficit, uncontrolled deficit spending means he is talking about. and we are keeping our promise. for the family budget. This year, the We will not see those maybe until the The new majority promised to create typical American family of four will fall and who knows, let us see how cou- jobs. And we are keeping our promise. spend $3,100 just to pay interest on the rageous they will be in the fall of this One leading economist told the Com- national debt. This is not their total year when they are going to have to mittee on Ways and Means that 1.74 tax bill. Nor is it their share of the cut over the next decade 100 billion dol- million new jobs will be created over total national debt. It is simply the lars’ worth of spending. That is the the next 5 years from the capital gains amount of money they will spend to issue. And you know this is not a mid- tax cut. Economist after economist pay off the investors, many of whom dle-class tax cut. I tell you, this is un- told the Committee on Ways and are located overseas, who have pur- believable, to consider this a middle- Means why we should reduce the cap- chased Treasury bills and other debt class tax cut. ital gains tax. instruments of the U.S. Government. We have Treasury Department num- As Allen Sinai put it, the capital The best way to help American fami- bers here. A family that makes be- gains tax reductions will ‘‘stimulate lies is to cut the deficit and to bring tween $30,000 and $50,000 a year, a fam- economic activity, increase jobs, cap- down the crippling interest payments ily that makes between $30,000 and ital spending and capital formation, that our constituents have to pay each $50,000 a year under this proposal will improve national savings, increase en- year. This is the tax cut the American get about a buck and one-half a day, trepreneurship and raise economic out- people want. about $560 a year. On the other hand, put.’’ Mr. Chairman, just 2 months ago, on the other hand, and listen to this, But, Mr. Chairman, even more im- Democrats and Republicans came to- those that make over $200,000 a year, pressive than all of these leading gether on this floor and made history the middle class, will get $11,266 a year economists was the young 17-year-old when we passed a balanced budget as a tax cut under this proposal. That in my district who came up to me re- amendment to the Constitution. We did is not a tax cut for working families, cently after my remarks to his high so out of a shared belief that we cannot that is not a tax cut for middle-class school assembly. This young man, this continue to saddle American families families. And what is really frightening young 17-year-old explained to me that with a national debt that saps our pro- I think to the average citizen when he liked what I said about capital gains ductive capacity, stifles investment, they find this, if in fact this ever be- taxes. And I was a little bit more sur- and causes so much of our wealth to be comes law, is if we had huge deficits as prised, not used to this kind of a feed- used just to service the national debt. a result of this misguided decision back from a 17-year-old high school In that debate, we heard a lot of very today, you will see interest rates go up, student. I looked at this young man sincere speeches about fiscal discipline, and what would you rather have, a $560 and I said, ‘‘Do you mind if I ask you about the need to make tough choices, a year or buck-and-a-half a day tax a question? Do you have any capital and about our shared obligation not to break or would you rather have lower gains?’’ He looked back at me and his burden our children and grandchildren interest rates so you can buy a home or eyes got about this big and he said, with an ever increasing national debt. maybe your child can buy a home? ‘‘No, not now, Mr. RAMSTAD, but some- So what happened? That is where your savings is, but in- day I hope to.’’ Here we are just 2 months later, and terest rates will go up. I guarantee in- Mr. Chairman, that is the kind of in- the tough choice that we are being terest rates will go up if this ever be- centive we need to restore for all asked to make is for a tax cut that will comes law. American taxpayers. Vote yes on H.R. cost $188 billion over 5 years, and that But they know it will not become 1327. will explode in cost after the year 2000. law. This is a little figment we are Mr. GIBBONS. Mr. Chairman, I yield Mr. Chairman, this bill is not my playing on the American public, but myself 30 seconds, and hope the gen- idea of fiscal discipline. H 4216 CONGRESSIONAL RECORD — HOUSE April 5, 1995 It is not the kind of tough choice I oppose this tax cut at this time. though it is going to cost us billions of that a $4.7 trillion national debt cries Yes, there are some good provisions dollars and create a major problem for out for. in the tax cut proposal that help Amer- the future. And it will do nothing to save our ican families. I support some capital The contingency will not work. It is children and grandchildren from the gains relief and AMT relief, but there a gimmick, a sham. There is no ques- crushing weight of the national debt. are some very bad things in this bill as tion about it. The tax cuts are perma- All this bill does is to repeat the age- well, including the neutral cost recov- nent. The spending cuts are only 1 old Washington mistake of borrowing ery system, the raid on the Medicare years. We can come back and change, from our children to pay for what trust fund, and the relief tilted toward and do not think we will not. seems popular right now. the wealthiest Americans. But the Look at the history. Look at the For the sake of deficit reduction, and fatal flaw in the tax bill before us is Emergency Deficit and control Act of for the sake of a stronger economic fu- that we must make deficit reduction 1985; when that was passed, the deficit ture for all Americans families, I urge our first priority. Whatever tax cut we was $212 billion. In 1985 we were sup- my colleagues to reject this poorly pass, we have to borrow money in order posed to have a balanced budget. That timed, irresponsible legislation. to give the taxes back to our constitu- was supposed to give us a balanced ents, and that borrowing of additional b 1530 budget by the year 1991 with the se- money will cost our constituents more questration, with enforcement. Mr. ARCHER. Mr. Chairman, I yield 2 money. minutes to the gentleman from New The Republican bill that is before us What was the deficit in 1991? It grew Jersey [Mr. ZIMMER], a member of the will cost the American taxpayer an ad- from $212 billion to $269 billion. committee. ditional $17.7 billion in debt service We have the specific tax cuts. We do Mr. ZIMMER. Mr. Chairman, I thank over the next 5 years in order to pay not have the specific spending cuts. the gentleman for yielding. for the $188 billion of tax relief. The net That is why a bipartisan group today It is a sad reality that the average impact on the deficit will be an in- opposed this bill under the Concord co- American family is earning no more crease in the national debt of $206 bil- alition. That is why a group of business today than it earned 20 years ago. This lion over the next 5 years as a result of leaders told me yesterday to oppose reality has led to frustration, it has led the bill that is before us. this bill, do deficit reduction first. to pessimism, it has led to anger So let us look at the results during The best present we can give our among middle-income Americans who the first 100 days. If you take a look at children and the future generations are beginning to wonder whether, for the specific spending cuts that have and the businesses and the growth in the first time in our history, their chil- been passed in the House so far and our economy is to cut the deficit. dren will not have a better life than what is in the bill before us, if we as- Vote against this bill. Vote for defi- they have had. sume that the welfare reform bill will cit reduction. Vote for the future of We Republicans are deeply concerned pass the Senate without change, which our Nation. about the future of working Ameri- is very unlikely, if we assume that the Mr. ARCHER. Mr. Chairman, I yield cans, but unlike the minority, we are rescission bill will stay at $12 billion myself 30 seconds. willing to attack the cause of this net savings, and that will not change, Here we go again. Figures do not lie, problem. We understand that wages and that will hold during the entire 5 but—the gentleman talks about deficit have stagnated in large part because years, if you assume that the other reduction. There is no Democrat plan we have a Tax Code that penalizes peo- provisions in this bill will be enacted, before this House for deficit reduction ple who invest, people who save, people and if you take the specific tax cuts that I know of. This is the only one, who take risks to create new jobs, good that are proposed in this bill, you find and CBO scores us at $30 billion more jobs. We tax capital gains at a rate that what we are doing is increasing in deficit reduction than the Presi- that is higher than our competitors, the deficit over this period of time. dent’s budget. and we tax capital gains that are at- The spending cuts which are in blue I hope that the Democrats in their tributable solely to inflation. are far less than the tax cuts. Let me substitute and motion to recommit Even though it is quite obvious that just give you 2 illustrative years. In with instructions will show us a CBO a capital gains tax cut will help work- 1998 the tax cut will cost the Treasury score deficit reduction that is greater ing Americans increase their standard $35.6 billion, the spending cuts $29.2 bil- than is in this package. of living, most Democrats hate it, be- lion, a net increase in the debt of $6.4 Mr. Chairman, I yield 2 minutes to cause they are afraid that somebody billion. But go to the year 2002. See the gentleman from Illinois [Mr. who is rich might also benefit. To what happens when you get a little bit CRANE], the ranking Republican of the them, I would like to quote a Demo- further out, because of the way the tax Committee on Ways and Means. cratic Senator, JOSEPH LIEBERMAN, provisions are worded. The tax cut will (Mr. CRANE asked and was given from Connecticut, who said: cost $87.7 billion, the spending cuts are $51.5 billion, for a net, a net increase in permission to revise and extend his re- The argument of some Democrats against marks.) a cut in the capital gains tax—that the rich the deficit in the year 2002 at $36.2 bil- will benefit more than the rest of us—misses lion. We have a major deficit problem. Mr. CRANE. Mr. Chairman, I want to the point and is politically divisive. Lower- CBO has projected the deficit by the express appreciation to my distin- and middle-income people won’t realize most blue columns that you see here; it is guished chairman and to our colleagues of the tax savings for the obvious reason that scheduled to increase if we do not take who are in the process of making real they have less capital, but they could get action on deficit reduction. If we pass significant, historic strides in turning something better: a job, if they have none, or just the bills that have been passed so around the direction that this country a better job, if they are underemployed. has been on in virtually all of the 25 After all, the whole idea of a capital gains far in this Congress, in this House, if tax cut is to induce people who have capital that is what we do, we are going to find years I have been here. We had a tax to move it into new investments that will the deficit larger rather than smaller cut in 1981, the biggest tax cut in our make America more productive and competi- during this period of time. history at that time, approximately, tive and benefit all of us with greater eco- I do not think that is the record that about $200 billion, and the fact of the nomic opportunity and security. we want to use. Many of these tax-cut matter is that that was the last time So said a wise Democrat, Senator provisions will get worse as time goes we had a tax cut. LIEBERMAN. on. We have done nothing in the inter- Mr. GIBBONS. Mr. Chairman, I yield Let me just give you one example. vening years but raise taxes, and pay- 5 minutes to the gentleman from Mary- The neutral cost recovery system that ing taxes to the average middle-income land [Mr. CARDIN], a member of the gives businesses extraordinary write- family today accounts for 40 to 50 per- Committee on Ways and Means. offs raises $16 billion during the first 5 cent of their budget when you include Mr. CARDIN. Mr. Chairman, I thank years, but costs $136 billion during the taxes at all levels, Federal, State, and the gentleman for yielding me this next 5 years when we do not score it, so local. The tax burden has become op- time. we take advantage of revenue even pressive. It has had a dampening effect April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4217 on the economy. I know of no econo- spent wisely. Unfortunately, we cannot say tation issue. Both of these measures will put mist who has ever attempted to ad- that Congress has spent tax dollars wisely more money in the pockets of seniors. In addi- vance the argument that by raising over the last 40 years. Indeed, Congress has tion, the bill provides for a tax credit to tax- taxes you are promoting economic squandered billions upon billions of dollars. In payers who provide custodial care of certain growth. Quite the contrary. You lower my view, the only way to force the Federal elderly family members staying in the tax- taxes and you promote growth. Government to become efficient, to force it to payer's home. The other thing that was significant return to the essentials, and to force it to elimi- Finally, the bill gives the American business about that tax cut in 1981 is that it nate the excesses that exist, is to restrict the community a break. Although it is fundamental more than doubled revenues to the flow of tax dollars to CongressÐit is time to economics, I believe some of my colleagues Treasury in the decade of the 1980’s. turn off the spigot. Only then will we be able need to be reminded of some basic tenets of That one single tax reduction more to force Congress to live within its means. the marketplace: First, businesses create jobs, than doubled revenues. It was the fast- Only then will we be able to force Congress to and second, without employers you do not est revenue increase in our national ex- stop spending money and stop mortgaging the have employees. Anything we can do to ease perience, and it had a very positive ef- future of our children. the burden on business community, increase fect in other ways, too, which created WHAT THE BILL DOES their ability to compete, and encourage invest- almost 20 million new jobs. If you listened to the opponents of this bill ments in new business ventures will help cre- We have an opportunity here though you'd think we were increasing taxes. Of ate new jobs in this country. The best way out to address more than just tax relief. it course, what this bill does is substantially re- of poverty is opportunityÐa job. This legisla- is the question of distribution of taxes. duce taxes for both individuals and busi- tion reduces the tax burden on American busi- According to the Joint Committee on nesses. The opponents of this bill have been nesses by eliminating the excessive, com- Taxation, if you look at income brack- screaming in righteous indignation over even plicated, and inefficient section of the Internal ets after the tax cut, those people in the thought of reducing taxes. When you look Revenue Code referred to as the alternative the highest income brackets will be at the actual contents of this tax legislation minimum tax. Scrapping this insane system paying a marginally larger component you begin to wonder where the opponents of part of the total tax burden, and those will go a long way toward putting American this tax bill are coming from. people in the lowest income brackets businesses on a competitive footing with busi- This bill does a great many good and nec- will be paying a marginally lower per- nesses overseas. In addition, we reduce the essary things for the overburdened individual centage of the total tax burden. rate on capital gains and index capital assets and business taxpayers. I urge my colleagues to support this for inflation. I could write a book about the im- First of all, this bill helps American families. legislation and get this country mov- portance of this provision of the bill. I have I have seen estimates that indicate that 40 to ing in a forward direction. been advocating reducing the rate on capital 50 percent of the typical American family Mr. Chairman, the last time I was on the gains for years, and I have seen the benefits budget goes toward paying taxesÐFederal, floor of the House of Representatives to de- of doing so based on past experience. By re- State, and local. Specifically, 25 percent of the bate and vote on a substantial tax cut for the ducing the capital gains rate we will not only family budget goes toward paying Federal American taxpayer was in 1981. Since that encourage more capital to be invested but we taxes. That is absolutely outrageous and it is time, Congress has raised taxes more times also encourage capital to move freely. This no wonder that families are getting sick and than I care to remember. In 1993, President will result in job creation. Moreover, the in- Clinton and a Democrat Congress topped all tired of the tax burden they are shouldering, creased number of transactions will actually the previous tax bills by enacting the single particularly when they see how their money is mean more revenue to the Treasury. largest tax increase in the history of the being spent by Congress. Families have been In short, this bill will create long term dy- worldÐliterally. According to the Joint Commit- hit hard over the last few decades by taxes. namic economic growth that will benefit all tee on Taxation, the 1993 tax bill robbed the The exemption amount for dependents, had it Americans. American taxpayers of a total of $240 billion been indexed for inflation from the date it was THE CLASS WARFARE DEBATE over a 5-year period. Not surprising, not one created, should be worth over $8,000 today, In the debate over this legislation, there are Republican in either the House or the Senate instead of the $2,450 allowed in 1994. This bill those in Congress who wish to divide our voted for Clinton's tax bill. attempts to modestly help families by provid- For the American taxpayer, the 1993 tax bill ing a $500 per child credit. In addition, the bill country and its people. These people wish to may have been the last straw. And thanks to creates the American Dream savings accounts create class antagonism, and choose dema- the American voter, the make-up of Congress which will provide families the opportunity to goguery over logic and reason. These people was radically altered in the 1994 elections. For create an IRA with tax free withdrawals for re- want to engage in class warfare. These are the first time in 40 years, the Republicans tirement, education expenses, medical ex- the social engineers of our society who still gained control of the House of Representa- penses, and first time home purchases. The don't understand that socialism died of natural tives. Republicans campaigned on the Con- legislation provides a credit for adoption ex- causes. These people think they have the per- tract With America and promised to change penses and reduces the marriage penalty. As fect formula for deciding what the proper tax business as usual. We have kept our prom- a long time proponent of all of these efforts, burden ought to be for various income groups. ises and we certainly have changed this and as the lead sponsor of the American They believe that it is Government's respon- House of Representatives. One of the key Dream Restoration Act which contained nearly sibility to redistribute income. They apparently components of the contract is to give back to all of these three proposals, I can assure my do not understand some of the basic concepts the American taxpayers some of their hard- colleagues I feel strongly about this portion of upon which this country was foundedÐfree- earned dollars that Democratic Congresses the bill. All these things are long overdue and dom, opportunity, hard work, etc. have taken from them over the years. will help families considerably. These people argue that the tax bill before The bill we have before us today would cut The bill helps seniors as well. While Demo- us today caters to the richÐthat it does not taxes by a total of $190 billion over 5 years. crats have often tried to portray themselves as properly distribute the tax burden. Let me Some have called this excessive. In fact, it is the protectors of senior citizens, in reality you present some hard facts for these social engi- rather modest, particularly when one considers will find that Democrat tax policies have hit neers. According to the Tax Foundation, in that the $190 billion figure falls $50 billion senior citizens very hard. Our seniors have 1982, the top 1 percent of income earners short of cutting the amount of taxes raised in worked hard all their lives and they have paid paid 19 percent of the taxes. In 1992, this the 1993 tax bill aloneÐto say nothing of all taxes all their lives. Many live on fixed in- group paid 27.4 percent of the taxes. In 1982, the other tax increases we have seen in the comes and can ill-afford the continual tax the top 10 percent of income earners paid last 12 years. Unfortunately, my colleagues hikes that have been heaped upon them by an 48.6 percent of the taxes, while in 1992, that need to be reminded of an important pointÐ arrogant Congress these past 40 years. Sen- figure rose to 57.5 percent. For both 1982 and tax dollars do not, by right, belong to our Gov- iors deserve a break. This legislation offers 1992 the top 50 percent of taxpayers paid ernment. Some of my colleagues in this them some hope. The bill repeals the increase over 90 percent of the taxes. All this was be- House seem to think that tax dollars are in income taxes on Social Security benefits fore the 1993 tax bill which was specifically owned by Congress. which President Clinton had pushed for in the designed to take $114 billion from high-income Let me remind my colleagues that tax dol- 1993 tax bill. In addition, the legislation raises individuals. Isn't this progressive enough? In lars are owned by hardworking taxpayers, and the amount seniors can earn before their So- fact, the tax bill we have before us today does Congress has a responsibility to ensure that cial Security benefits are reduced. This is re- nothing to change these percentages. Indeed, any money it takes from the taxpayers is ferred to as the Social Security Earnings Limi- figures from the Joint Committee on Taxation H 4218 CONGRESSIONAL RECORD — HOUSE April 5, 1995 actually indicate that the top 1 percent and top As Yogi Berra would say, ‘‘It’s deja-vu savings of more than $11,000 per year 10 percent will pay a slightly higher proportion all over again.’’ under the contract. of the total tax burden after this bill is passed The Republican leadership is asking In contrast, the majority of Amer- than they would if it were not passed. That for a giant leap of faith. They are im- ican taxpayers whose incomes are less ought to make the social engineers happy and plicitly forcing Members to sign a sec- than $44,434 will pay 16.1 percent of the they ought not be complaining. ond contract, not with the American tax burden under the contract, a drop Of course my point is that all this talk of tax/ people, but with the Republican leader- of 0.2 percent. But, these families only income distribution tables and class warfare is ship to vote for a budget reconciliation see an average tax savings of $760 or foolishness. This bill gives money back to the bill that has not been written and cur- less. taxpayers. It does not discriminate. It is de- rently does not exist. That’s right, the rich will get $11,000 signed to encourage savings and investment. Unlike the recent rescissions bill in tax savings from this tax plan and It is about reducing the size of Government. which spared projects in key Repub- the majority of Americans will get $760 CONCLUSION lican districts, everything—including or less in savings. Is this what the Mr. Chairman, I could speak on this subject Social Security—will have to be on the Speaker means when he talks about for a long time. However, let me simply say table to find the $100 billion in real the ‘‘opportunity society’’ for the that this legislation is a most critical part of our cuts. American people? Contract With America. Yes, we have brought In September you will be asked to By voting for this bill with its fairy this legislation to the floor of the House as we vote for a budget reconciliation bill tale $100 billion I.O.U., the Republican promised. But let us do even better than that. that drastically cuts programs and rank-and-file have given up any re- Let us pass this legislation with the goal of en- services in your district to pay for this maining shred of independence they so acting into law real tax relief before the year wasteful tax cut bill. Many of you will briefly entertained last week. is over. have a lot of explaining to do. They might as well give their voting Mr. GIBBONS. Mr. Chairman, I yield The agreement by the Republican cards to the Speaker and allow him to 6 minutes to the gentleman from Wash- leadership to link the tax cuts to a bal- vote yes for them on passage of the ington [Mr. MCDERMOTT], a member of anced budget plan is toothless and mis- budget reconciliation bill in September the Committee on Ways and Means. leading. This phony agreement allows because after today they have no (Mr. MCDERMOTT asked and was the leadership to get their tax bill en- choice. given permission to revise and extend acted without having to commit to any In September the voters back home his remarks.) guaranteed deficit reduction. will be wondering why they sent you Mr. MCDERMOTT. Mr. Chairman, al- There is absolutely nothing in the here. Did they want you to vote your though both sides of the aisle strongly agreement that even remotely looks conscience or to play the childish game disagree on the merits of this bill, I like an enforcement mechanism. This of ‘‘follow the leader?’’ Unfortunately, think both parties will agree that in agreement makes it all too clear that we have so few Members who do the the last few days we have seen a truck- it is more important to the Republican former and far too many who do the load of statistics, charts, graphs, and leadership to keep their political opi- latter. surveys arguing for or against this tax ate—a promise of tax cuts—no matter b cut plan. how damaging the long-term con- 1545 However, there is one thing that both sequences. Mr. ARCHER. Mr. Chairman, I yield 3 sides agree upon—that the Republican The unfairness of who gets what of minutes to the gentlewoman from Con- tax cut plan will increase the deficit by this bill are too numerous for me to re- necticut [Mrs. JOHNSON], the chairman $189 billion. Worse still, the Republican cite. No matter how you analyze this of the Subcommittee on Oversight of majority is proposing that we pay for bill, families with higher incomes re- the Committee on Ways and Means. over half of this deficit increase with ceive a disproportionate share of the Mrs. JOHNSON of Connecticut. I an I.O.U. for $100 billion. Not real total benefits from these tax cuts. thank the chairman for yielding this money, but a promise to pay in the fu- Chairman ARCHER knows this. That time to me. ture. is why he is trying to change the focus Mr. Chairman, I rise in strong sup- No one knows what will happen in of the debate from who receives the port of this bill. It is a fine and nec- the future when the appropriators ac- majority of the tax bill’s benefits to essary tax bill. First, it will make our tually identify where the cuts will what percentage of total income taxes economy grow more rapidly. Small come from to achieve the $100 billion in are paid by the rich. Good try, Mr. business, the creator of most jobs, will savings. Chairman, but it will not work. gain the right to expense $30,000 worth We have before us a so-called illus- The real issue today is not the total of equipment, We all know that any trative list of proposed cuts by Budget proportion of income taxes the richest small business can expand more rapidly Committee Chairman KASICH. I am 10 percent of the population pay, but if it can afford the equipment to sure that I am not the only Member of how much of a tax benefit high income produce its product. Expensing has Congress who is dubious at best, about families receive under the contract long been the No. 1 demand of the anyone’s ability to mandate spending when compared to current tax law. small-business community to acceler- cuts. Under the Republican bill, the rich ate the pace at which it will be able to If the Republican majority so firmly get richer so it is logical that they will grow. believes in this tax cut plan, why have pay additional taxes on the extra Estate tax law reform, home office they not come up with the specific money they earn. In contrast, a work- deduction reinstatement, capital gains, spending cuts which they promised to ing class family that is not able to all will help small business grow, pros- identify for the American people? take advantage of all of the new tax per and create the jobs that America When President Clinton lowered spend- breaks contained in this bill will sim- needs. ing caps 2 years ago, he did it to cut ply not benefit nearly as much. Second, this bill helps big businesses spending, not to give the money to the The majority of these tax cuts will that compete in a very tough inter- wealthy. not benefit working class Americans. national market where you can not We have been down this road before. Under the Republican theory of ‘‘trick- pass on new costs through higher In 1981, Congress passed President Rea- le-down-economics,’’ working families prices. In Connecticut, one company gan’s tax cut bill without any accom- will not even get wet. invested $4 billion over the last few panying spending cuts. As a result, the For example, the richest 1 percent of years in capital investment in manu- deficit soared and we face the budget Americans who make more than facturing facilities in this Nation and mess we are in today. $267,000 will pay 18.23 percent of the tax paid higher taxes than other manufac- How many Members on the other side burden under the contract, up 2 per- turers who invested not $1 because of of the aisle remember that in 1981 the cent. But what Chairman ARCHER does the alternative minimum tax. That is Reagan administration projected a bal- not say is that those same families— wrong. That is bad policy. That is anti- anced budget by 1984? Sound familiar? the top 1 percent—will an average tax jobs. That is anti a strong economy. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4219 Not only will this bill help build eco- rectly responsible when the next ican taxpayers do not want the Federal nomic strength and create jobs, but it Microsoft never takes it off the ground. Government to be the fastest growing also helps families and seniors, and it Failure to act could bankrupt 1,200 employer in the Nation. takes a giant step toward health care small timber businesses, who typically Mr. Chairman, in 1993, the Democrats reform. Young families are carrying a own 50 acres and have an income of less voted for the largest tax increase in heavier burden in our society today than $50,000. For them, the capital history, and they continue to support than they have at any time in our his- gains reduction is a life or death mat- high taxes today. tory. Surely we can agree to give them ter. These small timber firms alone This legislation pays for all of our this $500 tax credit per child. represent more than 5,000 jobs threat- tax cuts, and still lowers the deficit by Seniors have been disadvantaged by ened by high capital gains rates. $30 billion. In addition, this bill pro- the tax hike we imposed on them a Mr. Chairman, cutting taxes on cap- vides $189 billion in tax relief. Tax re- couple of years ago. This bill repeals ital is about jobs. Support capital for- lief for families with children, tax re- that; it gives them tax relief, raises the mation, support entrepreneurs, support lief for young couples beginning to save earnings limit, so that those with low family businesses, and support more for their first home, and tax relief for pensions can work without penalizing jobs for Americans. senior citizens living on fixed incomes. them $1 for every $3 they earn. Mrs. JOHNSON of Connecticut. Mr. Moreover, Mr. Chairman, much of It also creates the long-term care Chairman, I yield 2 minutes to the gen- this relief merely gives back to citizens partnership that protects our seniors tleman from Louisiana [Mr. MCCRERY]. that which was taken away by Presi- and families from the catastrophic Mr MCCRERY. I thank the gentle- dent Clinton in the 1993 tax bill. The costs of long-term care and home care. woman for yielding this time to me. average Californian will save $1,761 a Is this a perfect bill? Absolutely not. Mr. Chairman, the quote that I am year in taxes if this bill is enacted into I disagree with the Neutral Cost Recov- given by my constituents back home is law—76 percent of these benefits going ery section. I want the $200,000 thresh- that, ‘‘The Federal Government is too to American families. old lowered because I think it is better big and spends too much.’’ I do not Mr. Chairman, it is time that Wash- policy, fairer to all Americans. I think hear, when I go back home, ‘‘I pay too ington realizes that income belongs to the solution in this bill to the under- little in taxes.’’ Every Republican and the worker, not to the Government. funded Federal pension plans may not many Democrats who were here 2 years Congress must allow American workers be the best, but there is no problem in ago voted against the Clinton tax in- to keep more of what they earn—we this bill that is not entirely solvable as crease. If 2 years ago you were against must also restore the free market in- we move along. the tax increase, why would you not be centive which drives our American And this bill is critical. Mark my now for giving back to the people about dream, that same incentive which leads words, it is critical to achieving a bal- two-thirds of that tax increase? Instead citizens to take risks and create jobs. anced budget. If we are going to of trying to create class warfare in Vote ‘‘yes’’ on this bill. achieve a balanced budget by the year America, let us talk about what is or is Mr. GIBBONS. Mr. Chairman, I yield 2002, that spending plan must not only not sound tax policy. 1 minute to the gentleman from Colo- enable us to provide the services we For example, the House recently rado [Mr. SKAGGS]. need in those years but also the tax passed a historic welfare reform bill. Mr. SKAGGS. Four trillion eight policy we need to create jobs, to create Those who oppose welfare reform right- hundred seventy-three billion, four economic strength and to assure a fair ly asked the question: ‘‘Where will the hundred eighty-one million dollars. distribution of burden among the fami- jobs come from for people who lose That is the Federal debt. And we lies and the seniors of America. their welfare benefits?’’ should be doing all we can to keep it I urge your support of this bill. Well, this bill begins to address that from growing. The tax cut we are de- Mr. GIBBONS. Mr. Chairman, may I question. There are a number provi- bating this afternoon will explode the inquire as to how much time remains sions in this tax reduction bill which debt by over a hundred billion dollars a on each side? will encourage productive investment year in the year 2005. Enormous tax re- The CHAIRMAN. The gentleman and creation of private sector jobs. lief for those who need it least. For from Texas [Mr. ARCHER] has 41 min- Chief among them is the reduction in hard-working middle class American utes remaining, and the gentleman the capital gains tax rate. By reducing families earning less than $75,000 a from Florida [Mr. GIBBONS] has 341⁄2 the tax on capital gains, we reduce the year, a pittance, 35 bucks a month. For minutes remaining. cost of capital; by reducing the cost of a family over 200,000, a thousand dol- Mr. ARCHER. Mr. Chairman, I yield 2 capital, we encourage investment, lars a month. Whose sense of equity is minutes to the gentlewoman from which increases productivity, which al- not offended by that? Washington [Ms. DUNN], a respected lows economic growth without infla- Two months ago we were debating a member of the committee. tion and which, most importantly for balanced budget amendment. There Ms. DUNN of Washington. I thank Americans who want to work, creates were pious and sober speeches about the gentleman for yielding this time to jobs. the deficit and its burden on our kids. me. This tax cut bill gives us a chance to The same people today are supporting Mr. Chairman, my State of Washing- go back in time 2 years and do now this budget buster. Where has their re- ton is home to thousands of entre- what Americans wanted us to do then: solve gone? preneurs, and home to Microsoft—now Cut spending first. Four trillion, eight hundred seventy- an economic giant but once launched If you voted against the tax increase three billion, four hundred eighty-one by a pair of young entrepreneurs. We 2 years ago, then you ought to vote million dollars. also have timber—an industry that today to repeal most of it. Now is your With a debt like that we should not once was robust and thriving, but now chance to make right what you said even be considering this bill. is facing difficult times. was wrong 2 years ago. Vote against a repeat of voodoo eco- For too long, our Nation’s entre- Mrs. JOHNSON of Connecticut. Mr. nomics. Vote down this bill. preneurs have been penalized by the Chairman, I yield 2 minutes to the gen- Four-trillion, eight-hundred seventy-three bil- tax policy of the United States. Since tleman from California [Mr. HERGER]. lion, four-hundred eighty-one million dollars. 1986, when the business capital gains Mr. HERGER. I thank the gentle- That is the size of the United States Federal rate was raised to 35 percent, venture woman for yielding this time to me. debt. It's shameful. And we should be doing capital financing has dropped by two- Mr. Chairman, this legislation is a all we can to keep it from growing. Which is thirds—from $4.19 to $1.41 billion—and crucial step in a tidal wave of reform. why, as much as I would like to cut taxes, I the number of firms receiving venture Americans are fed up with paying more believe this is the wrong time for any tax cut, capital financing has declined every in taxes than they pay for their fami- and certainly this tax cut. single year. lies’ food, clothing and shelter Ameri- But the tax cut we are debating today Mr. Chairman, we must correct the cans are fed up with seeing small busi- would, over the long term, increase that debt current tax policy regarding capital ness drown beneath a suffocating mass tremendouslyÐby almost $100 billion a year formation. It we don’t, we will be di- of Government regulation, and Amer- in 2005. And it would do so by giving most of H 4220 CONGRESSIONAL RECORD — HOUSE April 5, 1995 the tax cuts to the wealthiest people in Amer- the Congress embraced an economic policy ating 75 percent of the new jobs in this ica. Speaker GINGRICH calls this bill the like this. It was 1981, and it was called country, doing it through small busi- ``crown jewel'' of his party's so-called Contract ``Reaganomics'' or ``trickle-down'': huge tax ness. With America. I suppose that's an apt label, cuts to the privileged few, more for defense, The Committee on Small Business for this bill surely would finance nice trip to and an explosion of the deficit. met five times earlier this year to look Cartier's for folks who are already in furs. It took 12 years for the Congress and the at specifically those provisions in the The bill is, plain and simple, irresponsible. It President to correct the horrible mistake. That contract of most interest to small busi- will give enormous tax relief to those in our correction was made in 1993, with the ap- ness. Four of these issues: one, increas- society who need it least. It will be paid for, proval of the largest deficit reduction package ing the estate tax exemption from however, at the expense of students and the in history. Because of the measures we took, $600,000 to $750,000 and indexing that elderly, and hard-working families for whom the Federal budget deficit this yearÐfiscal amount for inflation; two, increasing critical programs are decimated. And it will be year 1995Ðwill be $126 billion less than the expensing allowance for invest- at the expense of generations to come, who'll President Bush predicted it would be under his ment in new equipment; three, reduc- be burdened with an explosion of the deficit policies. That's a 40 percent reduction, and ing capital gains taxes; and, four, clari- that's reminiscent of the early eighties. the size of the deficit compared to the overall fying the home office deduction are Most Americans, those who are struggling economy has been cut nearly in half, to the vital to small business. These provi- to get by, would get only a pittance in tax lowest percentage since 1979. That's a good sions spur investment in small business breaks, an average of $35 a month to families start. But there's much more to be done. and attract life giving capital. making under $75,000 a year. Whose sense A little over 2 months ago, the House of The increase in the estate tax credit of equity isn't offended when you compare Representatives voted to propose an amend- will allow more family businesses to that to almost $1,000 a month in tax relief for ment to the Constitution to require a balanced pass from one generation to the next those making over $200,000 a year? budget, that Congress and the President bal- rather than be sold to pay the taxes. This bill also gives huge tax benefits to big ance the budget. Many of the amendments' The home office deduction, restoring corporations and investors. Not enough atten- supporters gave pious speeches filled with the home office deduction, is very im- tion has been paid to this aspect of the bill, concern about the size of the deficit and Fed- portant to millions of self-employed in- probably because these tax breaks are written eral debt. They spoke eloquently about the im- dividuals in this country. Many of in a way that hides their true cost. Over the portance of ensuring that our children aren't these self-employeds are those who first 5 years, the big business tax breaks add saddled with a mountain of debt. turn the devastation of losing a job by up to $24 billion. In the next 5 years their cost But today many of these same people will being downsized out of a large company balloons to $221 billion. Like an iceberg, nine- be voting to pass this budget-buster, this give- into an opportunity to start their own tenths of the cost hides under the surface of away to the rich. Where has their resolve business and continue to support their the 5-year budget horizon. gone? Where is their concern over the moun- families. Increasing the expensing al- What are these tax breaks? Things like the tain of debt that's left over from the 1980's? lowance, particularly important to repeal of the corporate minimum tax. This Why don't they want to fix the deficit problem small business because of cash flow, wasn't an original part of the so-called con- first and give tax cuts next? And why would will encourage small businesses to pur- tract, but was slipped in after a successful lob- they support such an ill-conceived preference chase equipment that can increase pro- bying campaign by a coalition of large cor- for the wealthiest taxpayers? ductivity and increase new jobs. porations. If this were the time for a tax cut, there More persons gainfully employed Never mind that the corporate minimum tax would be a better alternative to this trickle- means more tax revenues generated, was supported by President Ronald Reagan. down, contract tax break bill. It's a more mod- fewer people on welfare and a more pro- In 1985, the Reagan Treasury Department est proposal that's being offered by Congress- ductive society. If the 6 million small said, ``The prospect of high-income corpora- man GEPHARDT. The benefits are targeted at businesses in this country which have tions paying little or no tax threatens public the people who really need a tax break, work- more than one employee could each confidence in the tax system.'' ing families trying to send their children to hire just one more person, unemploy- And avoiding taxes they were. Prior to the school, working families trying to save money ment in this country would be wiped corporate minimum tax, most of the country's for retirement, people making under $100,000 out. largest and most profitable corporations often a year. And if I thought we could afford to cut I urge support of this bill. paid no Federal income taxes. How can any- taxes now, this is the type of bill I'd vote for. Mr. GIBBONS. Mr. Chairman, I yield one justify increasing the deficit, as this bill But I will vote against that, too. Reluctantly. 4 minutes to the gentleman from Geor- does, just to give the biggest corporation a Because I have a very large number that I gia [Mr. LEWIS], a member of the Com- pass on paying any taxes? can't get out of my head. mittee on Ways and Means. You will hear from many people today that Four-trillion, eight-hundred seventy-three bil- Mr. LEWIS of Georgia. Mr. Chair- this bill is paid for. Do not believe them. It's lion, four-hundred eighty-one millions dollars. man, I rise against this ill-conceived, paid for only over the first 5 years, when the With a debt like that hanging over our ill-considered, and ill-timed tax pro- tax breaks are expected to cost $188 billion. heads, we shouldn't even be considering a tax posal. What they won't tell you is that this bill was break for the wealthy. The focus should be on I have heard Speaker GINGRICH refer very cleverly written so that the costs are held deficit reduction. Vote against trickle-down ec- to this tax proposal as the crown jewel down over the first 5 years, but nearly triple onomics. Vote against a free ride for large cor- of the Republican contract. I could not after that. The Treasury Department estimates porations. Vote down this bill. agree more. Like the crown jewels, this that the full 10-year cost of these tax cuts will Mrs. JOHNSON of Connecticut. Mr. bill is for royalty, it is for the truly be $630 billion. That full amount isn't paid for. Chairman, I yield 2 minutes to the gen- wealthy among us. If you are middle Any way you count it, this bill add hundreds of tlewoman from Kansas [Mrs MEYERS], class, if you are poor, you can look but billions of dollars to the Federal debt. We can't the chairman of the Committee on you better not touch. afford it. Small Business. Just look at who gets the jewels. The With the huge cost of this bill, and with the (Mrs. MEYERS of Kansas asked and truly wealthy, those 1 percent of Amer- lion's share of benefits going to the rich, some was given permission to revise and ex- icans with the highest incomes, get of the more moderate members of the Repub- tend her remarks.) over $20,000—$20,000. Many working lican party have been hesitant to support it. Mrs. MEYERS of Kansas. I rise in families do not earn that much in a But there was no opportunity for Democrats to strong support of this bill. year. work with them to create a bipartisan, more In the rhetoric about this tax bill op- A middle-class family gets less than balanced bill, because their leadership had to ponents claim we are giving tax breaks $50 a month. The working poor do not have it their wayÐleadership apparently con- to the rich. These critics are wrong, even get $10 a month. cerned more with the symbolism and show of and they are not focusing on some is- Where do the Republicans get the the contract than with substance, a leadership sues in the bill that are good for small money to pay for their royal jewels? that reveals the emptiness of its commitment business. These provisions are not the They rob poor Peter to pay Paul. The to deficit reduction. major sexy prominent ones in this de- Republicans cut student loans, school But the moderate Republicans were right. bate, but they are important to hard- lunches, summer jobs—they cut money They remember what happened the last time working men and women who are cre- for roads, schools, housing, and public April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4221 transportation. All to give the truly is one of the strongest arguments for for themselves, not to get richer, no. wealthy a $20,000 tax cut. passing it today. We are doing this for jobs. Instead of calling this greedy tax bill It helps with small business But at the same time we are doing a crown jewel, we should call it fool’s expensing. It helps the most dynamic this, the poor kids around this country gold—because for 90 percent of Amer- sector of our economy by encouraging that like to believe that a part of this ica, that is what it is. For the price of investment in equipment. It provides American dream belongs to them, you wealthy America’s tax cut, millions of help to cash-starved firms that need to are cutting out education, job training children could continue to get school make investments to stay internation- and opportunities for them. Indeed if lunches. Countless students could re- ally competitive, and it allows workers they are minority, and they ever get to ceive their student loans. Hundreds of to achieve a degree of productivity become an adult, and are seeking a job thousands of our elderly poor would that ultimately will protect their jobs. that has been locking them out, then continue to receive heating assistance, It repeals the alternative minimum tax we say if there is any chance that any to keep them from freezing in the win- which is a relic of tax policy past that affirmative action will be there for ter. And millions of teenagers would kills jobs. It imposes high taxes on you, we will shatter it. If the kid did still have summer jobs, to keep them firms that are actually losing money, get an education, and did get some of off the streets and teach them needed and it hurts cyclical industries like the capital gains and wanted to play skills. manufacturing, disproportionately. It the capital gains game with you, we Why do we not invest in these peo- reduces their competitiveness by kick- would say, ‘‘Well, we don’t like it, it’s ple—the children, the workers, the stu- ing them when they are down, penaliz- too big a deal, and it’s a minority pref- dents—our future? Because the Repub- ing companies that need to invest to erence, so let’s knock out that deal, licans want to give wealthy America a recover. This provision is no longer knock out all preferential dealings tax cut—a tax cut the rest of us cannot needed in the tax law because we have with the FCC, unless, of course, we afford. repealed those provisions in the tax know someone that was involved with We have been down this dusty road law that previously had created abuses one of these deals.’’ before—George Bush called it voodoo that it was intended to correct. We re- I say this: economics. It is a road that led us to pealed safe harbor leasing in 1982. We You are having a ball, you are enjoy- repealed the investment tax credit in the record deficits we still struggle to ing the fruits of victory, you are hav- 1986, and we have made fundamental overcome. It is a road that mortgaged ing a party. But America is going to changes in accounting and deprecia- our children’s future. It is a road that wake up with this hangover because tion. we should never ever travel down you cannot push this fraud on the This bill would also make necessary American people in a hundred days. again. reductions in the capital gains tax to One day the people are going to wake It is time to stand up for what we be- unlock resources for investment. This up and find out that what you have lieve in. I ask my colleagues on the tax change would free up capital for tried to do is to dismantle the so-called other side of the aisle to look within small business and entrepreneurs, pro- New Deal that you hate so much to de- yourselves to muster the courage, the viding the economy with seed corn, stroy the opportunity for the Federal raw courage, to be true to your beliefs. with new investment to build the econ- Government to provide a safety net for This is a bad bill. You know in your omy of the future. people and to have anytime you’re heart, in your heart of hearts, it is a We need this bill, Mr. Chairman, and talking about welfare in this Congress bad bill. It takes from those who need, when we hear criticisms from the other that we would know that we are talk- and gives to those who do not. We must side let us remember they voted for the ing about just oil depletion allowance stop pandering, we must stop offering largest tax increase in American his- or rapid depreciation or investment tax tax cuts for political gain. As for me tory, and they support higher taxes credit. That kind of welfare continues and my house, I will do what is right. today, and they have offered us no al- to go on. I will say no to the false glow of tax ternative. b cuts. Mr. GIBBONS. Mr. Chairman, I yield 1615 I say to my colleagues, the time is al- 5 minutes to the distinguished gen- But the welfare of the American peo- ways right to do right. It is not—it tleman from New York [Mr. RANGEL], a ple that says that no child in this coun- never will be—time to return to the member of the Committee on Ways and try should go without medicine, with- failed policies of the 1980’s. To return Means. out food, should be hungry, whether or to growing deficits, joblessness, and (Mr. RANGEL asked and was given not the mother is married, these things hopelessness. We can not go back. We permission to revise and extend his re- now will be shuttled off to the Gov- must not go back. We will not go back. marks.) ernors. Why? Because for 40 years we I urge my colleagues to say no to the Mr. RANGEL. I say to my colleagues, did not perfect the system of how we crown jewel of the Republican con- congratulations, your contract obvi- take care of the poor. tract—to the tired and failed policies ously is going through. I never thought No, you are not getting rid of it to re- of the 1980’s. Say no to fool’s gold, say I would see the day when I would look form it; you are getting rid of it be- yes to America’s gold—our children, and the other body would be trying to cause you hate the word ‘‘entitle- their education, and our future. clean up this garbage that we are send- ments.’’ You are saying if you are poor, Mrs. JOHNSON of Connecticut. Mr. ing over there. But God is good. It may if you are sick, if you are blind, if you Chairman, I yield 2 minutes to the gen- happen. are crippled, if you are disabled, that tleman from Pennsylvania [Mr. ENG- Someone said that we should really the Federal Government has no respon- LISH]. support this capital gains because it sibility for you. Mr. ENGLISH of Pennsylvania. Mr. means jobs, jobs, jobs. Well, welcome Those are the days of Roosevelt. Chairman, I have listened with interest to my district. Around this country we Wine and roses. This is the day of cap- today to this debate, and I found it on got congressional districts with 30, 40, italism. Give it to the rich. They know the other side to be disappointing. We 50, 60 percent unemployed, people with- better how to create jobs. And if the have heard from a number of people on out homes, without jobs, without hope. Governors do not do it right, and they the other side that this is the wrong For God’s sake, what water are you do not have to, if the governors do not time to cut taxes, but I can tell you in drinking so that I can come tell them allocate the money, and there are no my district in northwestern Pennsylva- that we are going to find the wealthi- mandates, if the governors run out of nia we need tax relief, and we need est Americans that have no problems money and they cannot tax it, that is jobs. and living in the luxury of this coun- no big deal. Government never said you This bill helps small business, it try, some of them we are even going to were promised anything. They die. helps manufacturing, and it improves allow, to permit them to renounce They have poor in other countries. the job prospects of working families. their citizenship and pay no taxes, but Why not this great Republic? And if According to the McGraw-Hill study it we are going to allow them to get a 50 the cities and the local governments would create 1.7 million jobs, and that percent reduction on capital gains, not cannot do it, you are speaking to them H 4222 CONGRESSIONAL RECORD — HOUSE April 5, 1995 where to go. Send your kids to the or- pay for a family vacation, invest in an Individ- am proud to be standing here in sup- phanage. Get them adopted. Go to Boys ual Retirement Account, or just pursuing their port of it. Four and one-half billion Town. own version of the American Dream? Let us dollars of tax relief for Georgians. What has happened to the sense of do for America what these Governors have For the last several months we have feeling for our people, giving everyone done for their states. heard opponents claim that the Con- opportunity? Let everyone dream that Mrs. JOHNSON of Connecticut. Mr. tract With America is against children. yes, they can cut coupons, but before Chairman, I yield 1 minute to the gen- They claim the welfare bill and this they get to that, give them a chance to tleman from Florida [Mr. WELDON]. tax bill are antifamily and antichild. have a job. Do not be able to say that Mr. WELDON of Florida. Mr. Chair- Well, Mr. Chairman, our opponents you are so mean-spirited that you man, I rise in support for family tax re- are wrong, and they know it. The truth think that just by cutting out people lief. The rhetoric coming from the is that every legislative component of and dealing with the wealthiest of the other side of the aisle does not match the Contract With America is designed people here, that you are doing the up with the facts. to benefit all Americans, individuals, right thing. Because today we know A case in point: I received a phone families, and especially children. that with the mistakes that we are call last week from Christine, a con- The Contract With America, and making, if that other body does not stituent in my district. She is a single specifically this tax relief legislation, correct it, we will have gone back 40 mom with a 7-year-old son who called is 100 percent proresponsibility, pro- and 50 years in this great Republic. Do to urge my vote in support of the cap- family, and prochildren. not let it happen just because you have ital gains tax relief. It seems that she This legislation contains a new discipline. Have common sense to go is selling a home and that she needs American dream savings account that with it. the additional income from our tax re- reduces tax penalties on those that Mrs. JOHNSON of Connecticut. Mr. lief to help her provide for herself and save money and use those savings for Chairman, I yield 1 minute to the gen- her son. education, medical costs, and home tleman from North Carolina [Mr. Now, Christine is not rich. Yet exist- purchases. It is profamily and BALLENGER]. ing capital gains tax laws severely pe- prochildren. (Mr. BALLENGER asked and was nalize her. This bill means that Chris- This legislation reduces the marriage given permission to revise and extend tine will keep more of her money. penalty, making it profamily and his remarks. In addition to tax relief provided by prochildren. It provides $5,000 tax cred- Mr. BALLENGER. Mr. Chairman, I the capital gains reduction, this bill’s it to help thousands of families over- rise today in support of H.R. 1215. child tax credit will let her keep an- come the financial obstacles of adop- Today is a good day to be in the House other $500 of her income. tion. It is profamily and prochildren. It of Representatives. Republicans made a Mr. Chairman, it makes for good provides an increase in the exemption promise to the American people em- rhetoric and heightened class warfore, allowed for State taxes so that farms bodied in the Contract With America but his does not add up. Support this and small businesses started by fami- and today’s vote on the Tax Relief and bill. This is a good bill. lies can be passed from one parent to Deficit Reduction Act of 1995 is the cul- Mrs. JOHNSON of Connecticut. Mr. child without destroying those assets. mination of fulfilling that promise. We Chairman, I yield 1 minute to the gen- It is profamily and it is prochildren. have the opportunity to vote on tax tleman from Michigan [Mr. SMITH]. It provides 50-percent capital gains cuts totaling $189 billion over 5 years— Mr. SMITH of Michigan. Mr. Chair- deduction for individuals. This means simply put, we can give back money to man, I thank the gentlewoman for that the tax penalty on a family’s the very people who earned it in the yielding. home or property is reduced so an indi- first place. Mr. Chairman, I am so excited that vidual or family can afford to sell that Cutting taxes will result in an ex- we are reducing part of the taxes, re- home or property without losing so panded economy and increased job op- ducing $190 billion of taxes, to help off- much to the Federal Government, cre- portunities. But don’t take my word set the $250 billion tax increase that we ating more financial security for that for it. Here are concrete examples from had a year and a half ago, and we are family and their children. It is four State Governors who have cut doing it in such a way as to expand and profamily and prochildren. taxes in their states. Gov. William encourage jobs in this country. It gives a $500 tax credit to families Weld, in a letter to the Speaker, states Let me just briefly show you this with children under the age of 18. It is that Massachusetts has ‘‘cut taxes nine chart of how the United States charges profamily and prochildren, and I urge times over the past four years’’ result- our businesses that buy that machin- its passage. ing in tax revenues growing by over ery and equipment. Mr. GIBBONS. Mr. Chairman, before $2.2 billion during that period of time. Our marginal tax rate is 28 percent the gentleman leaves the floor, I yield Gov. John Engler of Michigan says compared to France, 18 percent; Ger- myself 30 seconds. that ‘‘fifteen tax cuts in four years many is exempt. We are penalizing our Mr. Chairman, if this is so profamily have turbocharged the state’s economy businesses that buy those tools and put and prochildren, why in the world did to the best performance in a genera- the best tools in the hands of our work- the Republicans introduce two bills tion. While taxpayers are saving more ers. If we give American workers those that give it to all the children, but than $1 billion annually, state revenues kinds of tools and those kinds of facili- then finally in this bill they brought to have continued to rise.’’ Wisconsin ties, we can out produce anybody in the floor start cutting children in fami- Gov. Tommy Thompson cites tax cuts the world. lies of under 50,000, and under 25,000 all of more than ‘‘1.5 billion over the past Mr. Chairman, that is what makes the way out of this family and correc- eight years’’ resulting in an economy jobs. We produce a product that people tion credit. If it is so profamily, why that created ‘‘new jobs at nearly dou- in this country and all over the world did they do that? ble the national rate and more new want to buy, and we produce it at a Mr. Chairman, I yield such time as he manufacturing jobs than any other competitive price. To do that, we have may consume to the gentleman from state. The lesson from Wisconsin is got to give our workers the best pos- Indiana [Mr. VISCLOSKY]. clear: tax cuts help create jobs and op- sible tools. (Mr. VISCLOSKY asked and was portunity for families and individuals.’’ Mrs. JOHNSON of Connecticut. Mr. given permission to revise and extend Gov. Christine Todd Whitman of New Jer- Chairman, I yield 2 minutes to the gen- his remarks.) sey is working on a 30 percent cut in State in- tleman from Georgia [Mr. COLLINS]. Mr. VISCLOSKY. Mr. Chairman, I rise today come taxes over three years and is well Mr. COLLINS of Georgia. Mr. Chair- in opposition to the Republican tax-cut bill, ahead of schedule. man, I thank the gentlewoman for H.R. 1215, because it would undermine deficit I ask you, what is wrong with letting tax- yielding. reduction efforts. I have always supported a payers keep more of their money to spend as Mr. Chairman, this tax relief bill will balanced budget, and the responsibility to they see fit, perhaps provide for their chil- give something like $4.5 billion of tax achieve this is not one that I take lightly. Over dren's or grandchildren's college education, relief to the people of Georgia, and I the years, I have frequently taken the political April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4223 road less traveled in the name of deficit reduc- twice the $500 per child tax credit offered in tion portion of H.R. 1215. I was a spon- tion. Last month, I was one of only six Demo- this bill. sor of this part of the bill along with crats to support the rescissions bill because I I urge opposition to H.R. 1215. If we want the gentleman from Illinois [Mr. believe we need to start making tough spend- to give the American people a break, we CRANE] and the gentleman from Iowa ing decisions now. In January, I supported a should get serious about balancing the budg- [Mr. NUSSLE] when it was introduced as constitutional amendment to balance the et. A $188 billion package of tax cuts is defi- part of the contract. budget for the first time because I finally lost nitely a step in the wrong direction. This part of the bill ease the mar- faith that the President and Congress have the Mr. GIBBONS. Mr. Chairman, I yield riage penalty that punishes men and resolve to balance the budget without being 1 minute to the gentleman from Texas women for getting married by making required to do so. [Mr. DOGGETT]. them pay more in taxes than if they The bill we are considering today has con- Mr. DOGGETT. Mr. Chairman, would had remained single. It creates a new firmed my worst fears. We are cutting the it not be great if the Pollyannas and IRA that will allow Americans to save taxes of the American people for the low, low the supply-side ideologues were correct for the purchase of a home, for edu- price of $188 billion over 5 years. It is abso- that the road ahead for America is cation, for medical expenses, and for lute folly to cut taxes for those making paved with candy? I like candy as retirement. It will also provide work- $200,000 to increase the deficit for those mak- much as the next guy. I like tax cuts. ing families with a $500 child tax cred- ing $20,000 along with everyone else. The They want to give a $500 tax credit per it. total cost of these tax cuts by the year 2002 child? Why not $5,000 per child? Be- Mr. Chairman, let us move away will be $630 billion. The Republicans on the cause somebody has got to pay for it, from the greatest American nightmare Budget Committee are now scrambling to and we went down the candy road with and move back to the American dream. come up with spending cutsÐjust to pay for them once before. It was sweet for the Mr. GIBBONS. Mr. Chairman, I yield the tax cuts. What ever happened to deficit re- politicians that promised all the tax 1 minute to the gentleman from Massa- breaks. It was very sweet for the privi- duction? What ever happened to balancing the chusetts [Mr. OLVER]. leged few in this country. budget? Why don't we just focus on eliminat- Mr. OLVER. Mr. Chairman, I thank But it turned out to be a toll road. ing the biggest drain on taxpayer dollars, the the gentleman for yielding. And guess who had to pay the toll? Our interest on the national debt. These proposed Mr. Chairman, under this bill, the children, to the tune of trillions of dol- rich get richer, and the poor get more tax cuts aren't going give taxpayers a break, lars of national debt because of this numerous. But that is what you would they are going to increase their long-term bur- supply-side nonsense. expect from Republican fiscal policies. den. Now we have got a Federal deficit as This bill hides the fact that more than Nations, like families, have to plan for the far as the eye can see in the $200-bil- half of all the tax cuts under the legis- future. As a nation, we have failed to plan. We lion-a-year range. The only way we are lation goes to two handfuls of our have borrowed to achieve a false sense of se- ever going to deal with it is by making wealthiest Americans, two handfuls in curity today, leaving the bills for our children to tough choices, and tax cuts are not percentages, of course. Under this bill, pay tomorrow. In 1994, alone, we spent $203 tough choices. They are the oldest gim- the benefits do not go to the middle billion more than we had. This means that mick in the book. In fact, as Ross class, which has been the constantly $783 was borrowed from every single person Perot has said, they are a way for poli- repeated lie along the way. in America. Over the past 20 years, the aver- ticians to buy your votes, using your I just want to talk about one provi- age budget deficit has grown from $36 billion own money. In this case it is our chil- sion. Take one provision. President in the 1970's, to $156 billion in the 1980's, to dren’s money, and it is wrong. Reagan signed in 1986 a provision that the unprecedented $248 billion hole we have Mr. ARCHER. Mr. Chairman, I yield made the biggest corporations in dug for ourselves so far in the 1990's. This ir- myself 30 seconds. America pay at least a minimum tax. responsible spending has resulted in a money Mr. Chairman, simply to respond to Now this is going to be repealed, tak- pit so deep that this year's interest paymentÐ the gentleman, the gentleman knows ing $15 billion and giving it to the larg- $235 billionÐwill be larger than this year's this is not supply-side economics. This est corporations, Anheuser-Busch, deficitÐ$176 billion. bill is paid for and more than offset Coors, Boeing, du Pont, General Dy- By providing $188 billion in tax cuts instead with in excess of $30 billion of deficit namics, PepsiCo and Texaco and Wes- of deficit reduction, the Republican Party is reduction by CBO estimates. Remem- tinghouse and Xerox. That money is charging every AmericanÐincluding every ber CBO? That is where the President being taken from people who will be- childÐ$43.51 in interest payments for every stood right here on this floor and said come poorer because of this legislation. year over the rest of their lives. they are the accurate estimators. We Mr. ARCHER. Mr. Chairman, I yield 1 The Republicans claim that the agreement are going to follow them. minute to the gentleman from Califor- they quickly slapped together to get enough Mr. Chairman, I yield 1 minute to the nia [Mr. KIM]. votes to pass their tax bill will put us on a gentleman from Arizona [Mr. SALMON]. (Mr. KIM asked and was given per- glide path to a balanced budget by 2002. Mr. SALMON. Mr. Chairman, I thank mission to revise and extend his re- However, no specific targets are set out in the the gentleman for yielding. marks.) agreement, and the language does not require Mr. Chairman, before I begin to talk b the tax cuts to be rescinded if deficit reduction about my strong support of H.R. 1215, I 1630 targets are missed. The bill requires only the cannot help but respond to a comment Mr. KIM. Mr. Chairman, I thank the development of a deficit reduction plan. With- that was made about the safety net gentleman for yielding time to me. I out setting enforceable targets, this bill will that supposedly we are cutting out. I rise today in support of this bill. throw us into the same money pit as Gramm- might add this safety net is lined with I am getting tired of listening to this Rudman I and II. If we pass H.R. 1215, we flypaper. It is very, very difficult to get rhetoric about this bill is making rich won't be on a glide path to a balanced budget, out of. In fact, it is a net, I am not sure people richer. Let me tell you about we will be on a slippery slope to more explod- it is a safety net. this marriage penalty tax that we ing debt, higher interest rates, and a shrinking Mr. Chairman, with the tax provi- passed last year under this omnibus economy for all Americans. sions in the Contract with America we budget bill we passed, which was the It is disastrous that the Republicans would are going to be passing I believe today, largest tax increase in our history. increase the debt of the average American this bill is so important to the Amer- Under that law many married cou- family in order to benefit creditors, whose spe- ican people because it provides tax re- ples face a larger tax burden than they cial interest lobbyists carry increased clout in lief to virtually all Americans. It will would if they stay single. the new, reformed Congress. Under current create incentives for savings and in- Let me give you some specific exam- trends, the interest on the national debt is esti- vestment. Not only will passage of this ples. Two individuals making $75,000 mated to consume an average of 15 percent bill provide more tax fairness, but it each will pay an extra $2,000 marriage of total Federal outlays and more than the 3 will also stimulate growth in Ameri- penalty tax to the IRS, if they get mar- percent of the gross domestic product. This ca’s private sector. ried. Let me give you another example, year alone, interest payments on the Federal I would like to speak specifically which is more a horrifying example. debt will cost almost $940 per personÐalmost about the American Dream Restora- Two individuals making $15,000 each H 4224 CONGRESSIONAL RECORD — HOUSE April 5, 1995 with two kids for combined income of I think we all have experienced the emo- In a sense, H.R. 1215 is based on a revolu- $30,000 would pay an extra $4,000 to the tional and financial strain of caring for our el- tionary idea that hasn't been tried by Con- IRS. That is a marriage tax penalty. derly relatives who can no longer care for gress before: Let families keep more of their That is enough to buy food for the themselves. And yet, doing so is one of the own money. In doing so, we can do more to kids for 6 months. In total, listen to fundamental obligations of the family. help children and families than we have ever this, a married couple would pay an H.R. 1215 would give families a helping done in the pastÐwithout hiring a single new extra $20 billion in penalty taxes to the hand in meeting this obligation. The bill would government bureaucrat or establishing a new Government next year. Nobody ever give families who care for elderly relatives at government program. mentioned this. home a $500 tax credit to help offset the cost So let us vote to give American families a This is ridiculous. We should be en- of that care. In doing so, H.R. 1215 would helping hand. I urge my colleagues to support couraging people to get married, not allow an additional 400,000 families to care for H.R. 1215. penalizing them by taxing. their elders at homeÐand keep their extended Mr. GIBBONS. Mr. Chairman, I yield I have a personal concern. I am mar- families together longer. 1 minute to the gentlewoman from ried 33 years. This bill will fix that, Third, this legislation would allow families to Connecticut [Ms. DELAURO]. will repeal this horrifying marriage tax claim a credit of up to $5,000 for the costs of (Ms. DELAURO asked and was given penalty. adopting a child. This needed tax relief will permission to revise and extend her re- Mr. Chairman, I rise today to talk about one help reduce the financial barriers to adoption, marks.) of the most important aspects of H.R. 1215: the costs of which average between $10,000 Ms. DELAURO. Mr. Chairman, I rise Tax relief for families. and $12,000 per child. in strong opposition to this tax give- Over the last several decades, one of the It is estimated that this tax break would ben- away to the rich. We do need tax relief, groups hit hardest by the increasing Federal efit more than 65,000 families nationwideÐ but it should be targeted at middle- tax burden has been the American family. The and will help thousands of children become class families who have been working harder for less for far too long in this situation for families is grim: At the same time part of healthy, productive families. At a time country. that economic conditions have made it harder when it has become nearly impossible to find The bill now before us does nothing and harder for families to make ends meet, adoptive parents for thousands of children, I to help working Americans. Households the Government has taken a larger and larger believe that this tax credit is essential. In a bite out of family income. earning $200,000 are big winners. They sense, this tax credit helps families in the For example, while the cost of raising chil- receive an average tax cut of $11,266. most fundamental way possible: It helps fami- dren has gone up steadilyÐit now costs an Corporations are big winners. The al- lies become families. average of $5,000 per year to raise a childÐ ternative minimum tax is eliminated, Finally, and most importantly, H.R. 1215 es- the tax break the Government gives families but households earning under $30,000 tablishes a $500 per-child tax credit. has declined rapidly. In fact, over the last 50 would receive a paltry $124. Even this The $500 per-child tax credit will provide years, the value of the dependent exemption small break for ordinary people would substantial tax relief for American families. In has decreased by more than 36 percent. The be more than taken away through fact, this tax credit will reduce taxes on fami- result is that families are now forced to spend spending cuts. lies with children by $105 billion over the next less on their kids and more to support waste- Whatever break seniors get, they will 5 years. This tax relief would be distributed to ful Government programs. pay back with as much as $400 billion It is clear, then, that it is time to give a help- more than 30 million families across the coun- in cuts in Medicare. And whatever ing hand to American families. And we do not try. breaks middle-class families get, they have to have some massive government bu- But let us put it in everyday terms: If H.R. will pay back in higher college edu- reaucracyÐsome Department of FamiliesÐto 1215 passes, a family with two children could cation costs because of $13 billion in do it. In fact, the best way to help American receive a $1,000 discount on their yearly tax cuts in student loans. families is very simple: Just let families keep bill. That's enough to buy food for several Do not be fooled. The American pub- more of their own money. months, or clothes for a whole year. lic should not be fooled. The rich and And that is exactly what H.R. 1215 doesÐ Having raised three children myself, I know the powerful are the only winners in it gets the Federal Government off the backs, from firsthand experience how expensive it is this very bad bill. and out of the pocketbooksÐof American fam- to raise children. I can think of no better way Mr. ARCHER. Mr. Chairman, I yield 2 ilies. to help American families than by giving them minutes to the gentleman from Texas, The bill does this in four main ways: more money to spend on their kids. Mr. SAM JOHNSON, a respected member First, H.R. 1215 repeals the so-called mar- And let me say a word to my colleagues of the committee. riage penalty. Under current law, many mar- who claim that, somehow, this tax credit is a Mr. SAM JOHNSON of Texas. Mr. ried couples face a larger tax burden than giveaway to the rich: Chairman, I rise in support of Ameri- they would if they stayed single. I think that those who make this claim do ca’s families, who are all struggling to For example, a married couple without kids not truly understand the value and importance make ends meet. making a combined income of $150,000 a of children. A child's worth does not change For too long Washington has in- year would pay an extra $1,912 in taxes due just because his or her parents make more creased taxes and slowly eroded the to the marriage penalty. A married couple with money. The fact is that the $500 per-child tax ability of families to afford the basic two kids making a combined income of credit is about helping childrenÐall children. It necessities of life. It is absurd that the $30,000 per year would pay $4,369 extra than is not about engaging in class warfare to American families now pay more in if they were single. That's enough to buy food score political points. taxes for food, clothing, and houses and clothes for their kids for 6 months. Even worse, those who engage in this class combined. High taxes are for what? Nationwide, the extra tax burden placed on warfare argument have their facts wrong: Politicians can spend more; that is, for married couples is substantial: Because of this In reality, 75 percent of the tax benefits from big government. inequity in the law, married couples will pay a the $500 per-child tax credit will go to families It is time to end this selfish Washing- total of $20 billion in extra taxes in 1996. making less than $75,000 per year. 90 percent ton knows best attitude. This money This situation is ridiculous. We should not of the benefits go to families making under does not belong to government. It be- penalize people for being married, especially $100,000 per year. In other words, average, longs to you, the people. when marriage seems to be becoming a thing working families will receive nearly all of the This bill would provide tax relief to of the past. benefits from the $500 per-child tax credit. 35 million American families. Congress H.R. 1215 rectifies this situation. The bill In sum, the tax relief bill we are debating must realize that the people of Amer- makes married couples eligible for a tax re- here today is one of the most pro-family ica can handle their own money better bate if their tax liability goes up as a result of pieces of legislation Congress has seen in than any Washington bureaucrat. Re- being married. In doing so, this legislation years. By eliminating the marriage penalty, publicans know better that lower taxes eliminates the marriage penalty and restores helping families absorb the costs of adoption mean more money in the hands of peo- tax fairness for married couples. and caring for an elderly relative, and by giv- ple who make the economy grow. Second, the bill establishes a $500 tax cred- ing parents more money to care for their chil- This means families have more it for the home care of a parent, grandparent, dren, H.R. 1215 will do much to help families money to spend, to invest, or save for or great-grandparent who is ill or infirmed. make ends meet. the future. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4225 Democrats have been raising taxes a year for seniors, it breaks the current Mr. Chairman, I rise in strong sup- for so long, they truly do not know any link in the earnings test between the port of the tax cut bill that is before other way to run the government. blind and senior citizens. This link has the House today. Some of our Democrat speakers even been successful over the past 18 years In the last couple of weeks, there has believe that the tax-and-spend policy in giving blind individuals the oppor- been a lot of hot air and bluster about has succeeded. But we all know what a tunity to be more productive members this bill. It has been interesting to hear failure it was. Taxes are destructive to of society, and to support their fami- the people on the other side of the aisle families, to businesses, and to the lies. rant and rave about the unfairness of economy. I had asked the Rules Committee to this tax bill. Contrary to liberal belief, taxes do allow consideration of my amendment It reminds me of my predecessor, not discriminate by income. They hurt to provide the same earnings test for Gene Snyder, who frequently referred every family in America. It is unbeliev- seniors and the blind by the year 2000. to the howling wolves of liberalism. able that Democrats still believe that This amendment was not controversial. Today they are not howling, they are people are not taxed enough. But then In fact, 161 Members are cosponsors of just whining. again, these are the same Democrats a complementary resolution that the Last night, during special orders, I that passed the largest tax increase in link be maintained. This amendment heard one Member go so far as to call history. They want to raise taxes would have been paid for with surplus this tax bill, immoral. again. funds on the Social Security pay-go Anyone who calls this bill unfair or Listen to their rhetoric. It supports scorecard. Unfortunately, the Rules immoral is not reading the same bill I big government. It supports big spend- Committee did not make my amend- have been reading. ing. It supports more taxes, and they ment in order. I will tell you what is immoral and want your family to pay for their over I also want to focus on a little known unfair. Immoral is a policy that penal- spending. fact: The contract would significantly izes senior citizens for saving for their Let us take a giant step forward reduce State revenues. A recent study own retirement. This bill fixes that ex- today for our families, our children, of 15 States by the Institute on Tax- isting policy. and our Nation and vote for this bill ation and Economic Policy indicates Unfair is a policy that penalizes sen- and vote for tax relief. ior citizens for working. This bill fixes that just two provisions of this bill— Mr. GIBBONS. Mr. Chairman, I yield that existing policy. depreciation and capital gains—will myself 30 seconds to respond to the last Unfair is a policy that discourages cost those States over $41 billion over gentleman. people from buying insurance to take 10 years. Why? Because 37 States use When I came to Congress, the Eisen- care of themselves in their later years. Federal adjusted gross income [AGI] as hower administration had just left This bill fixes that. the starting point for computing State here. And the tax rate at the top was 94 This bill fixes all of these misguided taxes. In other words, Federal AGI is percent. And all through the tax rate policies. the tax base in these States and as the was much higher than it is today. This bill—which includes the Senior contract reduces Federal AGI, it also We Democrats, who have controlled Citizens Equity Act which I spon- reduces State revenues. the Congress ever since then, have re- sored—repeals the 1993 Clinton tax in- duced those rates from 94 percent down It is possible for States to avoid this crease on Social Security benefits into the 30 percents. So the gentleman loss of revenue by passing laws denying which so unfairly penalized people who is just dead wrong when he says we did the Federal tax cuts for State tax pur- managed to save and invest enough not reduce taxes in the Democratic ad- poses. This however, would require tax- during their working years to supple- ministration. He does not know what payers to keep two different sets of ment their retirement incomes. he is talking about. books—an administrative nightmare. This bill raises the Social Security Mr. Chairman, I yield 3 minutes to My own State of Connecticut stands earnings limit so that seniors who have the gentlewoman from Connecticut to see State receipts reduced by $1.64 to work or choose to work after retire- [Mrs. KENNELLY], a member of the billion—about $500 for every man, ment can make more than $11,280 a Committee on Ways and Means. woman, and child in the State. This year and not be penalized. This bill will Mrs. KENNELLY. Mr. Chairman, I bill gives $500 per child, but they will allow them to make thirty thousand rise in opposition to H.R. 1215. It is he get lost at the State and local level. dollars with no penalty. That is fair- wrong bill at the time, no matter how Mr. Chairman, it is one thing for us ness. attractive the various pieces. to debate how best to raise Federal rev- This bill makes it easier for people to We know the macroeconomic reasons enue and how best to spend it. It is buy long term health care insurance so for being against this bill today. As Mr. quite another for us to make these they can take care of themselves in Kiskanen of the Cato Institute has very fundamental revenue decisions for their failing years. That is not unfair. said: ‘‘There’s not a single part of this the State Governors. Especially at a It is sound public policy. bill that I consider an improvement time when we hear so much about the This bill makes it easier for people over the current system.’’ He goes on desirability of shifting decision-mak- who are terminally ill to cash in their to say that the bill would encourage ing back to the States, it seems high- life insurance policies—tax free—to additional investment in new equip- handed, even unreasonable, to arrogate help them pay for their own medical ment but does nothing to stimulate ad- these decisions to ourselves. bills. That is compassion and common ditional savings to finance it. Remember, these are just two provi- sense. Robert Shapiro, another respected sions. How much will the other provi- This tax cut bill gives families a tax economist, says he doubts the Congress sions cost Connecticut or your States? credit to help them take care of elderly will find the $90 billion to pay for it. Passing the contract would create parents and grandparents. That is pol- Henry Aaron is concerned about the budget deficits in 37 States. This is just icy that encourages individual respon- widening gap between the haves and another unfunded mandate. sibility. the have nots. Others worry about Oppose the bill. This bill gives a tax credit to help de- where the money to pay for the bill Mr. ARCHER. Mr. Chairman, I yield 3 fray the costs incurred by families who will be found. The bill is very specific minutes to the gentleman from Ken- want to adopt a child. This bill will on cuts in revenue—but oh so vague, tucky [Mr. BUNNING], the chairman of make it possible for more families to about $700 billion, in cuts in discre- the Subcommittee on Social Security bring children into loving homes. That tionary spending. of the Committee on Ways and Means. is compassion. Although the bill is called the Amer- (Mr. BUNNING of Kentucky asked There is nothing immoral or unfair ican Dream Restoration Act, it will not and was given permission to revise and about any of these things. This is be a pleasant dream for some, for in- extend his remarks.) sound public policy. This tax bill en- stance, the blind. Although the con- Mr. BUNNING of Kentucky. Mr. courages individual responsibility. It tract includes a provision raising the Chairman, I thank the gentleman for encourages people to work and save Social Security earnings test to $30,000 yielding time to me. and to pay their own way. H 4226 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Mr. Chairman, this is a good bill. The and gift tax exclusion, show that it is things they are taking away from aver- unfairness argument does not stick. It the Republicans that are looking out age Americans. is time to do what is right and pass for the best interests of our nation’s I must say, this 5-year budget plan this measure and give the American seniors. that is supposed to reduce the deficit is taxpayer a break. In my State of Nebraska, over 34,000 not going to reduce the deficit, so do Mr. GIBBONS. Mr. Chairman, I yield seniors will benefit directly from our not go away from here thinking it is 1 minute to the gentlewoman from senior citizen tax reforms. going to do that. Georgia [Ms. MCKINNEY]. Not to mention how many thousands Mr. ARCHER. Mr. Chairman, I yield Ms. MCKINNEY. Mr. Chairman, the of other Nebraska seniors will benefit 23⁄4 minutes to the gentleman from voo-doo policies of the 1980’s should from our American Dream Savings Ac- Florida [Mr. SHAW], chairman of the have taught us something about counts, Spousal IRA’s and capital gains Subcommittee on Human Resources of Reaganomics. Yet, here we go again, reductions. the Committee on Ways and Means. Republicans are going to cut taxes for Let us not forget that it was the Mr. SHAW. Mr. Chairman, I thank the wealthy and pay for them with cuts Democrats who passed the largest tax the gentleman for yielding time to me. to student loans and heating assistance increase in American history. They op- Mr. Chairman, I rise in support of for the elderly poor. pose H.R. 1215 because they want to helping this country’s senior citizens If you make $200,000 a year, Repub- raise taxes again. continue to live their American dream. licans feel your child is worth $500 dol- Here is a bill that helps out our na- lars. But if you make $12,000 a year, tion’s seniors, cuts taxes on all Ameri- And I mean all senior citizens, Mr. your child is worth zero. We suspected cans, pays for those cuts and lowers the Chairman, not just wealthy senior citi- this all along, but with this bill the Re- deficit by 30 billion dollars. Sounds zens. Since 1993, the Clinton tax hike publicans have brought our worst like win-win public policy to me. on Social Security benefits has meant nightmare to us live and in color. They that a senior citizen who lives on a b 1645 go too far. fixed income as low as $34,000 must pay With this bill, the rich are going to Mr. GIBBONS. Mr. Chairman, I yield income taxes on 85 percent of his or her make out like bandits, and at the same myself 15 seconds to answer the gentle- benefits. This was a 70-percent income time, the Republicans are adding an- man’s charge about the 15-percent in- tax hike on Social Security benefits. other $750 billion to the deficit over the crease on Social Security. Today, we are going to repeal this ill- next 10 years. Mr. Chairman, Repub- I will remind the gentleman that conceived tax hike and reassure our licans are so fond of saying that a ris- President Reagan—President Reagan senior citizens that this Congress has ing tide lifts all boats. But what they raised the taxes on 50 percent of the in- not forgotten the hard work they con- really mean is that a rising tide lifts come of Social Security recipients, ver- tributed to their country. all yachts, while the working class sus 15 that the current President We are also not going to forget that homes on shore, get washed away. raised. many citizens over the age 65 have no Mr. ARCHER. Mr. Chairman, I yield 2 Mr. Chairman, I yield 1 minute to the intention of settling into retirement, minutes to the gentleman from Ne- gentlewoman from Florida [Mrs. or that others are in the situation braska [Mr. CHRISTENSEN], a member of MEEK]. where they must continue to work be- the committee. Mrs. MEEK of Florida. Mr. Chair- yond age 65 because their fixed Social (Mr. CHRISTENSEN asked and was man, I thank the gentleman for yield- Security income does not provide ade- ing this time to me. given permission to revise and extend quate financial security. For these peo- Mr. Chairman, first of all, I oppose his remarks.) ple we are offering to increase the very strongly the Republican fairness Mr. CHRISTENSEN. Mr. Chairman, amount senior citizens can earn before and deficit reduction bill. It is an there is one issue that has been ne- being taxed on the benefits they have glected in the debate over our tax bill: oxymoron, because there is no fairness in this bill. Neither does it reduce the already earned. The current earnings the issue of how this tax bill helps our limit of only $211,280 punishes senior nation’s seniors. deficit. citizens by hitting them with an addi- Remember President Clinton’s puni- The Republican majority’s bill, tional effective tax of 33 percent. This tive tax hike on seniors? Remember which is said to reduce the deficit, is is not fair, and this is why we owe it to when the Democrats decided that sen- not doing it. You are just moving old our senior citizens to gradually in- iors living on fixed incomes as low as wine around in new bottles, that is crease the earnings limit to $30,000 per $34,000 were ‘‘wealthy’’? Well, our bill what you are doing, taking money injects some sanity back into this de- from here and putting it over there. It year over a 5-year period. bate by repealing the Clinton tax in- is an old shell game. Each one of us Finally, Mr. Chairman, I support crease on seniors. It lets seniors keep who has been around long enough will helping millions of Americans plan more of their own money rather than know that. now to avoid potential financial hard- forcing them to hand it over to the I am a senior citizen. You are helping ships, later in life, by encouraging pri- Federal Government to be squandered senior citizens one way and taking it vate solutions to long-term health by spendthrift bureaucrats. away in another. Look what is happen- care. One of the biggest fears of senior Our tax bill also helps seniors by re- ing with health care for senior citizens. citizens is that they may lose most of forming the social security earnings No matter how much money we are what they own if they are confronted limit. Under current law, seniors be- giving them, if there is no health deliv- with a long-termillness. This fear will tween the ages of 65 to 69 can only earn ery system, we are still not helping be felt by younger Americans when $11,280 before the government begins them. they reach the age of retirement. By confiscating $1 for every $3 they earn. A lot of things they are doing here is allowing accelerated death benefits to When you include the FICA withhold- made up of smoke and mirrors all put be paid tax-free from life insurance ing tax and the federal income tax, together in a consortium of fooling the policies, by providing employers with low-income seniors face an effective American public that they are really incentives to offer long-term care cov- marginal tax rate of 55.65 percent! That doing something for them, when they erage, and by allowing tax-free with- is a tax rate traditionally left to mil- are really not. What they are doing, we drawals from IRA’s and other pension lionaires. have a spectrum here, where we have plans in order to buy long-term care Unlike the Democrats, who once on one side the very poor, in the middle coverage will provide financial security claimed that they wanted to see the we have the middle class, and then we to all Americans who worry about earnings limit raised, we are doing have the upper class. being able to take care of their long- what we said we would do by raising Do Members know who is getting all term care needs. the earnings limit to $30,000. the money? The upper class. The poor Mr. Chairman, my main concern is These provisions, plus our long term middle class people in the middle are for the well-being of this country’s sen- care incentives, $500 Eldercare Tax being left out. These cuts in vital pro- ior citizens. The provisions of H.R. 1215 Credit and the increase in the estate grams are going to fund these tax cuts, speak of today will help empower April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4227 today’s senior citizens, as well as to- curity. Strong and secure families done at the end of this day. This ought morrow’s. I encourage a vote of ‘‘yes’’ mean a strong and secure society. not to happen. for this bill. We need to reject the class warfare The Democratic alternative is sound- Mr. GIBBONS. Mr. Chairman, I yield rhetoric and pass this bill. er. The School Act is a simple, realistic 1 minute to the gentleman from Indi- Mr. GIBBONS. Mr. Chairman, I yield approach. Our legislation provides tax ana [Mr. ROEMER]. 3 minutes to the gentleman from Mas- cuts which will help the real middle (Mr. ROEMER asked and was given sachusetts [Mr. NEAL], a Member of the class and help to pay for higher edu- permission to revise and extend his re- Committee on Ways and Means. cation. Four proposals make up the marks.) Mr. NEAL. Mr. Chairman, the Tax School Safety Act. They are deductions Mr. ROEMER. Mr. Chairman, last Fairness and Deficit Reduction Act is for education costs, student loan de- week we debated the Personal Respon- neither, and it is certainly not the ductibility, guaranteed education sibility Act. Today we are debating the right approach for tax cuts. This legis- planned savings bonds, and expanded Tax Irresponsibility Act. This bill is ir- lation reduces by $188 billion the Fed- individual retirement accounts. All of responsible for two reasons. First of eral Treasury over 5 years. Indeed, these proposals are geared towards edu- all, this bill will cost over a 10-year pe- Treasury has estimated that the provi- cation. riod $700 billion; not million, billion sions are going to cost $700 billion over None of these tax cuts will be en- dollars. Now, there is no free lunch, as 10 years. acted unless we stay on a target toward we learned in the 1980’s, and there is no The Republicans say this unneces- a balanced budget, but today these Re- free breakfast, lunch, and dinner. We sary legislation will be financed by publican cuts are going to end up cre- have to pay for this. spending cuts. Discretionary spending ating more spending cuts. The public The Republicans have it half right, in cuts total $100 billion, but these cuts will be cheated in the end. that they pay for some of these new are neither specified nor are they guar- Mr. Chairman, this legislation is ill- tax breaks, but then they respend the anteed. It is still unclear which pro- considered and ill-timed. money. They do not put it to the defi- grams will be cut or eliminated. The Mr. ARCHER. Mr. Chairman, I yield 2 cit. legislation is not responsible. Our at- minutes to the gentleman from Nevada Second, let us talk about fairness; [Mr. ENSIGN], a member of the commit- not class warfare, but tax fairness. tention should be focused on deficit re- duction, and this is not the time to be tee. This bill repeals the corporate mini- (Mr. ENSIGN asked and was given mum tax. That simply states if you are making tax cuts to the wealthy. Those earning over $200,000 are not permission to revise and extend his re- a profitable company, you should pay marks.) some taxes. This bill gets rid of that considered the middle class in my con- gressional district. I am not opposed to Mr. ENSIGN. Mr. Chairman, we have and says to schoolchildren: ‘‘We are heard ‘‘How are we going to pay for going to take 50 cents from you out of tax cuts for the middle class, but they should be targeted and geared toward these tax cuts.’’ Let me remind the that $1.10 lunch, and you are going to Members here that the Government help pay for that tax break for the cor- investments. Several of the tax provi- sions in the Contract With America are does not pay for tax cuts. We allow the poration.’’ American people to keep their own tax Let us get back to the days, in a bi- indeed budget gimmicks. These provi- dollars that they have earned. partisan way, when the gentleman sions are glitter and sparkle, and there Taxpayers have to pay for govern- from Ohio, JOHN KASICH, and Tim is no real long-term investment. ment spending, so when we talk about Penny worked together to reduce the Let me say, there are some provi- how are we going to pay for tax cuts, deficit in a fair manner. sions even I could have supported, in- we are just going to allow the Amer- Mr. ARCHER. Mr. Chairman I yield 1 cluding the spousal individual retire- ican people to keep more of what they minute to the gentleman from Arkan- ment account, and expanding the IRA, earned. sas [Mr. HUTCHINSON]. and would have raised the ceiling on In reference to a little while ago, we Mr. HUTCHINSON. Mr. Chairman, I earnings for Social Security recipients, heard about Ronald Reagan raising am glad to rise in support of the tax re- and happen to believe there ought to be lief bill. It lowers capital gains, raises some sort of capital gains relief, but I taxes up to 50 percent on Social Secu- the earnings limit on Social Security, cannot support the larger package that rity recipients back in 1983. Let me re- provides an adoption tax credit, an is going to have such a dramatic im- mind the Members also of which party elder tax credit, IRA equity, a $500 tax pact on our deficit. was in control of the Committee on credit for children. We should work for a package on Ways and Means and which party was In short, it is a family-friendly tax both sides of the aisle that could be in control of the Congress at that time. relief bill. After all, the family is the universally supported. Why could we It was the Democrats. fundamental unit of society. It is the not today vote on small provisions I have a lot of seniors in my district. guardian of our social fabric. It is the which are fully paid for? Why is this Those seniors have been telling me means by which our values are con- vote before us today all or nothing? that they thought that the 1993 raise veyed. Yet it is besieged, embattled. It These tax provisions are not equi- on their Social Security benefits, tax is under attack by its own government. table. The wealthy few will receive raise on their Social Security benefits, We could not have come up with a more of the benefits, and the Treasury was unfair. I agree with them. They more anti-family public policy if we Department tells us that only 8 percent have earned this money. The tax raise had sat down and devised such a plan. of the population realizes capital gains in 1983 went to bail out Social Secu- It is not too much to expect that gov- earnings in any given year. Most of the rity. ernment be the friend, not the foe, of benefits in this proposal go to people b the family, so one critical step in turn- who already make up to 6 percent of 1700 ing this around is the passage of the the wealthiest taxpayers in America. The tax raise in 1993 did not go to $500 per child tax credit. It would shift If we are going to enact tax cuts, we bail out Social Security. What we need power and money from Washington bu- ought to pay for them. It is still un- to do is we need to be fair to our sen- reaucrats and return it to the moms clear which programs will be elimi- iors. We need to raise as this bill does and dads of middle America. nated, and surely deeper cuts will have the earnings limit up to $30,000. I had Families do not want more entitle- to be made in order to pay for these people working for me that would come ments, they want empowerment. The provisions and their cost increases. to me and say, ‘‘You know, I just can’t American family is tired of high-sound- We ought to focus on the middle class work anymore because I’ll go over my ing rhetoric and empty speeches about today. If we look beyond the bluster, earnings limit and that will hurt me as family values while policymakers in- we see the flaws in this proposal. Edu- far as my Social Security money is sult them by saying ‘‘We can’t afford it cation is the most important invest- concerned.’’ It used to break my heart. now,’’ as if it is our money. We cannot ment we can make. In Massachusetts, These people wanted to be productive afford not to do it now. Our national 137,000 students are going to pay more and we would not be able to allow that security is intertwined with family se- for their student loans when we get because of the tax system that we have H 4228 CONGRESSIONAL RECORD — HOUSE April 5, 1995 set up. We need to give working seniors way and then come to Washington and Republicans would say, ‘‘Please, let a break and this bill does that. vote another. There are those who still families take back their future, let Lastly, this bill also encourages peo- try to come across as the protectors of them decide how to best spend that ple to get long-term health care insur- senior citizens and 9 times out of 10 money.’’ ance. I am proud to support that. It is those are the same people who voted to Yet the vote on the other side would something we need in this country. impose new taxes on senior citizens in be very clear as well. They would say, Mr. GIBBONS. Mr. Chairman, I yield 1993. ‘‘We don’t trust families. We think 2 minutes to the gentleman from Mis- This bill starts to undo some of the that it’s the Government’s money. It’s sissippi [Mr. TAYLOR]. damage that has been done to senior not even the family’s money. We’re Mr. TAYLOR of Mississippi. Mr. citizens in the past. In addition to re- giving the tax cut.’’ Chairman, I want to begin by com- pealing those new taxes, it goes further Who ever heard of giving a tax cut plimenting everyone on the civility and says that senior citizens ought to when it is the family’s money to begin that has been shown thus far. be able to earn a living, or earn some with? All of us that balance our check- I remind my Republican colleagues money, and be productive citizens be- books around our kitchen tables, par- that our Nation is over $4 trillion in yond age 65. The tax incentives for ticularly my friends back in Iowa, debt. This Nation this year will borrow long-term care and also allowing life know who the money belongs to, knows over $200 billion just to make ends insurance to come out earlier are im- that it is their money that they meet. That money has to be repaid. portant benefits for senior citizens. earned, that they worked for, that they In the 2 minutes that I address this I think when seniors look beyond the want to make decisions about, whether body, the American people will spend empty rhetoric and look at the con- it is for their farm or their family, $1 million just on interest on the na- crete steps that will benefit them and their future, a college education. They tional debt. For those of you who have benefit the things that they need to see are the ones that know how to manage a Visa card or any other charge card, happen in their later years, they will that money. you know what interest is. It is money see this is real happen in their later Today we will decide the future of that is wasted. Sometimes it is a bar- years, they will see this is real con- those two philosophies. I know Repub- gain to spend money ahead of time and crete action that will make a big dif- licans are going to trust families. pay it back later but it is never a bar- ference in their lives. Mr. GIBBONS. Mr. Chairman, I yield gain for your Nation to borrow money. Mr. ARCHER. Mr. Chairman, I yield 2 2 minutes to the gentleman from North Last year on June 6 I happened to minutes to the gentleman from Iowa Carolina [Mr. HEFNER]. stand on the bluffs of Normandy [Mr. NUSSLE], a member of the Com- (Mr. HEFNER asked and was given amongst 10,000 crosses, a cross for mittee on Ways and Means. permission to revise and extend his re- every person that lives in my home- (Mr. NUSSLE asked and was given marks.) town almost. Those people, like my permission to revise and extend his re- Mr. HEFNER. Mr. Chairman, I say to colleague SAM GIBBONS, many of them marks.) the gentleman from Iowa, I would not jumped out of airplanes in the dark the Mr. NUSSLE. I thank the gentleman, risk laying $500 on either one of these night before. Many of them died. They my chairman, for yielding me the time. things here. jumped for $90 a month. No one ever Mr. Chairman, I have had an oppor- Let me put in perspective, if I can, asked those people would they do it for tunity and I spent most of the after- first of all about Social Security. We a tax break. Do you love your country noon listening to the debate. I must have heard a lot about Social Security. only if you get a tax break, if you get say it has been pretty clear to me there Democrats have always supported sup- more back than you gave to it? They are two philosophies at work here. The porting Social Security. Let me just did it because they loved their country. one philosophy is the one I believe I remind folks that are talking about the This Nation has done wonderful brought to Congress and I believe many Reagan administration, the very first things and it troubles me when I see of my Republican friends brought to budget that was sent to this House my Republican friends belittle the Congress. That is, that individuals and under the Reagan administration, wonderful things this country has families make better decisions about under David Stockman, called for done. This country saved the world their daily lives than Government can eliminating the $123 minimum Social from Adolf Hitler. This country saved for them. They spend their money bet- Security for the oldest, most vulner- the world from communism. But there ter. They make better decisions about able citizens in our society. is a bill that had to be paid with that. their family, about their future, about The folks that have been on the talk The defense bill of the 1980’s that I deciding what their American dream is shows and been making the debates think was wonderful has to be paid. It all about and how they are going to here today have been talking about was over $300 billion a year. reach it. Yet there is another philoso- where these moneys are coming from. It makes no sense at all to turn phy here in Congress and here in Wash- And to the credit of the gentleman around and say that we just saved a ington, and, that is, that bureaucrats from the Committee on Ways and couple of billion dollars last week, so and Congressmen make better deci- Means, he made no bones about it. let’s give it away. Because you are not sions about people’s daily lives than These rescission savings and all of giving it away, you are borrowing more they can for themselves and that the these savings that have been counted, money. If you want to threaten the only kind of compassion we can have in that have been cut out of the lunch very thing that SAM JOHNSON sat in a this country is one that comes out of a program and all the other programs, POW camp for for 5 years in Vietnam, word processor, one that is printed on make no bones about it, they are going or the very thing that SAM GIBBONS paper, one that is paid for by a Govern- to be used to pay for this tax cut. jumped out of an airplane in the middle ment check, and that is basically the Let’s make perfectly clear, and the of the night for, if you want to threat- two competing philosophies. gentleman makes no bones about it, en the democracy of this great Nation, So, yeah, there’s a lot of whining, you are going to use the rescission the world’s greatest Nation, don’t pay there’s a lot of crying about the future money and on the domestic side you your bills. Let this Nation collapse like because the future is changing, because are going to use the cuts, and they are Mexico. Let this Nation collapse like Americans are saying, ‘‘We’ve had cuts, in the feeding programs for our Yugoslavia. If you love your country, enough with Government check com- children, they are real cuts, and they be willing to pay for it. passion. What we want is we want to are going to be used to pay for this tax Mr. ARCHER. Mr. Chairman, I yield 1 take back our future.’’ cut for the super-wealthy. minute to the gentleman from Texas If there were $500 sitting right here Senior citizens. I am a senior citizen. [Mr. THORNBERRY]. on this podium and we had to decide in I can get a discount in every Shoney’s Mr. THORNBERRY. Mr. Chairman, this body here today who would spend across this country. But let me tell you one of the reasons I believe that the that money the most wisely, would it about senior citizens. I have been see- control of this body changed in the last be Government bureaucrats and Con- ing the buttons about senior-friendly. election is that the American people gressmen or would it be families. I can Let me tell you what is going to hap- were fed up with those who talk one tell you what the vote would be. The pen to you in May. You are talking April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4229 about senior citizens. In May when the Mr. Chairman, I appreciate the op- We know that this tax cut that we chairman of the Committee on the portunity to speak on this bill because have before us today is not going to re- Budget puts together this budget to get I am a little confused. As I said earlier duce the deficit at all. We know what toward this balanced budget, they are this morning, I thought we were in the the Republicans are doing is trying to going to go in and they are going to ab- business of cutting taxes with this bill really give to the well-to-do of this solutely do some devastating cuts in only to find out that we are actually country a tax break that will not real- Medicare for our senior citizens. Then increasing taxes on 2 million Ameri- ly respond to the evils and to the prob- we are going to see how senior-friendly cans. I am disturbed because those 2 lems that we are faced with in this this whole package is. It has been all million Americans are Federal employ- country, and I rise in strong opposition the way to take the money from the ees, FBI agents, cancer researchers, to it. most vulnerable people in our society people that help move our Social Secu- Mr. GIBBONS. Mr. Chairman, I yield rity checks, people who work very and target it to the people that do not myself the balance of our time. hard, who have experienced downsizing, need it, that Social Security, and every Mr. Chairman, there is much more to and who are now confronted with the Member that has spoken in favor of come, as you know. I want to sum up this tax package today is going to get notion that in order to get a $500 per child tax deduction, they are going to what I think is the case against this a tax cut. Every single one of them. pay an extra $750 to get that. They are bill right now. This package is like the lady that paying that in the form of an increased We Democrats are for tax cuts. But had the ugly baby that was so ugly, she contribution for their retirement. we are for tax cuts at the right time had to tie a pork chop around its neck There is nothing wrong with the Fed- when the economy needs them, not to get the dog to play with it. That is eral retiree system now. It is not over- when the national economy is running how bad this bill is. ly generous. In the private sector they such a huge deficit as it is today. Mr. ARCHER. Mr. Chairman, I yield 2 would not have to pay anything at all. Our first priority today should be minutes to the gentleman from New It is not insolvent. We have had re- cutting the deficit. Jersey [Mr. SAXTON], the chairman of search to indicate that it is in fine Why should it be the first priority? the Joint Economic Committee. shape. Since 1991 we have had a rising employ- Mr. SAXTON. I thank the gentleman Why are they doing this? They are ment rate, which yields us the lowest from Texas for yielding me this time. doing it to raise money and they are unemployment rate we have had in 51⁄2 Mr. Chairman, one of the things that raising money to give a tax break to years. We are at full employment now. we hear repeatedly from the opposition the wealthiest citizens in America. I know there are some isolated pock- side of the aisle is that somehow this This debate does not have anything to ets in the country that are not in full Republican tax plan is going to hurt do about whether ma and pa ought to employment but the country as a those who are already less well off than get a tax break. The problem with this whole is at full employment. others, the poorer folks in the United tax proposal is all the money is going We are at full factory capacity utili- States. We have heard it over and over to the very wealthy. The top 1 percent zation. We are at the highest factory again and it did not just start today. It of Americans will get 10 percent of the capacity utilization we have had in 151⁄2 has been going on for some time. I call benefits under this bill. The top 20 per- years. The Federal Reserve acknowl- those of you who use that line revision- cent will get 50 percent of the benefits edges that, and that is the reason the ists, revising the history of the 1980’s under this bill. It does not seem right Federal Reserve has raised the interest just as some people in this country to me. would revise the history of World War Mr. ARCHER. Mr. Chairman, if I rate seven times in the last 14 months, II, kind of the same thing. might, with the indulgence of the gen- 7 times in the last 14 months. And if Let me give an example. A speaker tleman from Florida, yield myself such this tax bill goes through, the Federal earlier today talked about what hap- time as I may consume in order to re- Reserve will offset it by raising the tax pened to the bottom fifth of the wage spond to the gentleman. rate again as soon as this bill takes ef- earners in our country during the 1980’s Mr. Chairman, I do not know where fect. and they said that they were less well his figures come from that the top 1 So, this is just the wrong time to do off in 1990 than they were in 1980. That percent gets 10 percent, because what this. We should be reducing the budget is true. But you do not say why. As a the reality is, with the Joint Commit- deficit. If we cannot reduce the budget matter of fact, in 1979 when our Presi- tee figures which are the official fig- deficit in full employment and full fac- dent was not a Republican, the bottom ures on which we live in the Congress, tory capacity utilization, we can never fifth on average earned a level at about not the cooked-up Treasury figures, it reduce the budget deficit. $9,800. During the next several years, shows that the top 1 percent pay a big- There is another reason why we ending in 1982, that level of income for ger portion of the total taxes collected should vote against this bill and that is the bottom fifth of our wage earners under this bill than they do under cur- the equities of the bill. The bill is plummeted so that by 1982, it was way rent law. badly balanced against those people down here at about $8,400. Then Repub- b 1715 who really could use a tax cut if it lican tax policy changes took place in were the right time to cut taxes. And The top 10 percent pay the bigger the first chart I have here shows what 1981, 1982, and 1983. Look at what hap- percent of the taxes collected than pened to the average wage level of the has happened to Americans in the last under the current law. 20 years. And for those who do not have bottom fifth of our wage earners. It Mr. Chairman, I reserve the balance their glasses on and cannot see real went up dramatically. Not quite to of my time. well, the figure on my left is the higher $9,800, but almost. It grew rapidly. Mr. GIBBONS. Mr. Chairman, this Then we go off this chart in 1990, we one-fifth of our population. Their fam- debate is not over and there is much 1 had a tax increase, and in 1993 we had more to come, but this is the conclu- ily income has increased 29 ⁄2 percent, another tax increase. If this chart were sion of the Ways and Means Committee almost 30 percent in the last 20 years. up-to-date, you would see this yellow portion of the debate. But on the other end of the chart, the line shoot back down again because we Mr. Chairman, I yield 1 minute to my low end, the lowest fifth of our popu- increased taxes, hurt the economy, and colleague, the gentleman from Ten- lation, their family income has gone had the most dramatic effect on our nessee [Mr. FORD]. down by almost 15 percent in the last low-wage earners. (Mr. FORD asked and was given per- 20 years. And Members can see what We are not out to hurt them. We are mission to revise and extend his re- has happened to the folks in the mid- out to help them with this tax plan. marks.) dle. In other words, three-fifths of the Mr. GIBBONS. Mr. Chairman, I yield Mr. FORD. Mr. Chairman, I thank Americans have not participated in the 1 minute to the gentleman from Mary- my colleague from Florida for yielding growth of the American economy at land [Mr. WYNN]. me this time. all. In fact, they have lost ground. And Mr. WYNN. I thank the gentleman Mr. Chairman, I rise in strong opposi- two-fifths, mainly the upper fifth have for yielding me the time. tion to the bill. gained ground in all of this. H 4230 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Not all of that is tax policy driven, save and invest in America plan are included has escalated from $1 trillion to more that $4 but a large percentage of it is tax pol- in this packageÐincluding expanded Individual trillion. icy driven. Retirement Accounts, a 50 percent exclusion Simply put: we must rise to this challenge The next chart is showing how dif- on capital gains, indexing capital gains for in- and fix our budget. ficult it is going to be to balance the flation, increased ability of small businesses to The time has come for this unconscionable budget and, very briefly, to balance the deduct up to $35,000 in capital equipment in- practice to end. And, this Congress should not budget with the contract will require vestmentsÐI had hoped that we would con- let a historic opportunity to pass a better tax cuts of a trillion or require spend- sider this important legislation under a more America on to future generations slip through ing cuts of $5.8 trillion. That is not open procedure than the rule that governs de- our fingers. paid for in this bill. Anybody that says bate on H.R. 1215 today. For the last several years, I have spent a lot it is paid for in this bill is not on the Specifically, I had hoped that the House of time talking to the people of northern New same planet with the rest of us. could consider an amendment that would Jersey that I represent about changing the un- The next chart I would like to show allow the $500 tax credit for children to be lim- acceptable status quo by offering solid, re- Members is how the revenue losses ex- ited to families with adjusted gross incomes up sponsible blueprints for our Nation's futureÐ plode under this bill. Much ado has to $95,000 a year, instead of the $200,000 or, what I refer to as a save and invest in been made about how this is all paid limit currently in H.R. 1215. for. But in the first 5 years, which is all America plan. In addition to the fact that this amendment Saving and investing in America will return my colleagues on the Republican side would more precisely target the tax relief in conveniently want to talk about, even money to the pockets of working Americans this bill toward middle-class families across though the Senate looks at all of this and encourage U.S. business to invest in new our Nation, it would have also meant that H.R. over a 10-year period, the losses are not plants and equipment to become more com- 1215 would have provided for an additional $7 very great, but in the second 5-year pe- petitive in the ongoing global economic wars. billion in additional deficit reductions over 5 riod they just explode. This whole Saving and investing in America is about im- years. chart is practically red after the sec- proving our economy, creating good jobs at The second item I just mentioned is impor- ond 5 years and that is 700 billion dol- good wages, and strengthening the American tant because I happen to believe that the sin- lars’ worth of revenue loss. family. The next chart I want to show is the gle most pressing problem facing the 104th While the fact of the matter is that the legis- middle class are shortchanged by the Congress is our broken Federal budget. lation before us today incorporates some of Republican tax bill. The middle-class In the current budget year, the Federal Gov- these ideas, I had hoped that this package people, which are all of these people ernment expects to collect a total of $1.3 tril- could have reduced the budget deficit even down here in these income ranges, from lion or revenue. Regrettably, that isn't enough further than it does. money to fund the Federal Government's ac- under $30,000 to $100,000, they get these I anticipate when the Senate acts on a tax tivities under the Clinton administration's cur- low figures in all of this. I want my Re- bill, the Senate-passed legislation will address rent fiscal policies, because they expect to publican colleagues to see this because my concerns about the dramatic loss of Fed- spend $1.5 trillion this year, leaving behind a this is real important to them. This is eral revenue after 2002, such that when the $200 billion budget deficit! what the middle class get. But this is final version of this legislation comes before what the upper income people get. The At the same time, the Federal Government will spend $235 billion for interest payments Congress, the new Republican majority in the upper income people get 511⁄2 percent of House can proudly claim that it has done right the tax cut in this bill. on the $4.6 trillion debt! These interest pay- ments don't help defend our country, provide by America and really, truly put the Federal Those are not my figures. Those are Government on the road to a balanced budget figures from the Department of the health care to the elderly or impoverished, or fund environmental or educational programs. by 2002. If so, I look forward to enthusiasti- Treasury. I do not believe the Joint cally supporting passage and enactment of Tax Committee, and I see the staff di- If we fail to balance the budget, and this trend continues, in 2 short years we'll be just that kind of legislation. rector here on the floor and former There are several other items included in staff director of the Joint Tax Commit- spending more on interest on the debtÐ$270 billionÐthan we will on our national defenseÐ H.R. 1215 that I support as well, including: its tee who will dispute those, so the equi- 5-year phase-out of President Clinton's Social ties of this bill are wrong. $260 billion. Security tax increase, a credit for married cou- The timing of it is wrong. It is time In this regard, the so-called deficit reduction ples that eliminates the tax code's so-called to send this bill back to committee, glidepath agreement incorporated into H.R. marriage penalty, tax incentives for the pur- and tell us to do it right. 1215 by the rule is clearly insufficient. It takes chase of long-term health insurance and de- The CHAIRMAN. The time of the a tentative step in the right directionÐby re- ductions for long-term care premiums, and a gentleman from Florida [Mr. GIBBONS] quiring the Federal budget to be balanced in has expired. The gentleman from Texas order for tax cuts to be effectiveÐbut it con- phased-in, 5-year increase in the Social Secu- rity earnings limit to $30,000 for senior citi- [Mr. ARCHER] has 5 minutes remaining. tains no enforcement mechanism that insures Mr. ARCHER. Mr. Chairman, I yield the deficit will be eliminated in the next 7 zens. such time as she may consume to the years. In conclusion, I support House passage of gentlewoman from New Jersey. [Mrs. Worse yet is that current projections for the this legislation, and urge my colleagues in the ROUKEMA.] loss in Federal revenues from the tax provi- House of Representatives to do likewise. (Mrs. ROUKEMA asked and was sions in H.R. 1215 increase sharply in the fu- Mr. ARCHER. Mr. Chairman, I yield given permission to revise and extend ture. such time as he may consume to the her remarks.) In fact, the Treasury Department is estimat- gentleman from Nebraska [Mr. Mrs. ROUKEMA. Mr. Chairman, I ing that the tax provisions in this bill will lose BARRETT]. rise in strong support of the bill. It about $190 billion in revenues in its first 5 (Mr. BARRETT of Nebraska asked puts critical incentives back into our years. However, the Treasury estimates that and was given permission to revise and economy to create those good jobs and the tax provisions of this bill will lose an addi- extend his remarks.) save and invest in America. tional $440 billion in revenues over the subse- Mr. BARRETT of Nebraska. Mr. Mr. Chairman, I rise in support of H.R. quent 5 years. Chairman, I rise in support of H.R. 1215. 1215, the legislation before the House of Rep- Such a dramatic reduction in revenues will For 92 days Congress has undergone tre- resentatives today, for three reasons: it cuts place extraordinary pressure on the Congress mendous transformation; from body of delay to taxes for hard-working American families; it and President to offset this loss by cutting one of action. Today we begin the climb for cuts government spending; and it puts some Federal spending even deeper. the summit of restoring tax fairness for fami- critically needed tax incentives into the law so For far too long in the past, the Congress lies, businesses, farmers, and senior citizens; that we can begin to implement a ``Save and and President have been simply unwilling to and we do so by making real cuts in spending. Invest in America Plan'', which our country make the tough choices about budgetary prior- I rise to call particular attention to provisions desperately needs in order to maintain our ities that the American people expect us to of H.R. 1215 that will help keep the family role as a world leader in the 21st Century. make, and as a direct result, we have faced farm and the family business ``in the family'' by While I am pleased to see that several $250 billion deficits for years and years, with raising the estate tax credit from $600,000 to items that I have long advocated as part of my no end in sight, a the same time that our debt $750,000 and adjusting it annually for inflation. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4231 Roughly half of the Nation's 2 million farm- Mr. Chairman, it is very interesting be 2 percent smaller and taking less ers are age 55 or older, and as the next gen- when the Democrats present charts and out of the GDP. That is the Republican eration of producers begin to take their place, numbers. Again, statistics as I have position. And we are determined to bal- these provisions will be instrumental in the all said earlier, do not lie, but. Their num- ance this budget. important effort of retaining the institution of bers almost exclusively are based on On capital gains, it is very interest- family farming. the Treasury Department’s analysis, ing to note the Democrats say this is The estate tax provisions are but one of and the Treasury Department is an really for the rich only, and yet 75 per- many good provisions of this sweeping pack- arm of you know who. The Treasury cent of all of the capital gains filings age of tax cuts and spending reductions. I will Department’s analysis of distribution were for families that had under $75,000 support H.R. 1215 onfinal passage; it's far too tables has been thoroughly discredited. of income. important we move this last item in our con- The Joint Committee no longer uses My friend, the ranking Democrat on tract forward. It is unfortunate, however, that that formula. They abandoned it prior the Committee on Ways and Means we won't have the opportunity to make H.R. to the time that we Republicans ever said, oh well, it is like the lottery, only 1215 that much better. took over the control of this House. 7 percent or 8 percent of the people Yes, I was 1 of the 100 or so Republicans They abandoned the fictitious imputa- ever have a capital gain. He should that signed that letter. And I rise today to say tion of income to everyone who owns look at the Joint Committee study that I am concerned about the provisions of their own home as if it were being here which was done in 1990, which cov- this bill applying the $500 per child tax credit rented. They abandoned the arbitrary ers only 5 years, from 1979 to 1993, and to those earning up to $200,000 annually. I assignment of unreported and under-re- 15 million Americans had capital gains. commend my colleagues who had the courage ported income because the Treasury That was 16 percent of the taxpayers and energy to take the lead on this issue. thinks they know that each of us is not who filed during that 5-year period. We did promise the American people a tax accurate in what we report. Therefore, That is only 5 years. If you look at a that has got to be added on. cut. We also promised them deficit reduction. lifetime, I will guarantee that the per- This system of distribution tables in And certainly we could have worked for a bet- centage of Americans that will have the hearings before the Committee on ter balance in this bill. By better targeting the some type of capital gain will be a Ways and Means was thoroughly dis- $500 tax credit to families earning up to very, very large one. credited. But that is the basis of all of Yes, some people start their business $95,000 annually, we would be cutting taxes their comments. And yet the Joint early in life and do not show a capital and providing $12 to $14 billion more toward Committee, which is the commercial gain until later when they sell their deficit reduction. nonpartisan arm of the House and the business. It may be many years. The Lately, I and many others have been ad- Senate of this Congress, has issued Treasury figures show them as accru- vised by our friends and colleagues that we their burden table which shows that ing giant gains each year, and of course shouldn't ``buy'' into the ``class warfare'' argu- under this tax bill the top 1 percent when they do finally sell in a one time ment that is being waged by the other side, and the top 10 percent will pay more as in a lifetime sale, they are declared to and that we should stick to what was in the a percentage of total taxes collected be rich. Contract With America. than the middle income or the lower This bill is fair, and it gets the defi- When I signed the Contract With America, I classes will pay compared to current cit down and it should be adopted. promised my constituents that I would support law. The CHAIRMAN. All time for the fair and open debate on items in the contract. That is what the people of this coun- Committee on Ways and Means’ por- I didn't promise to hand over my voting card try should understand. tion of general debate has expired. and go home. They expect me to carefully When we get to the deficit numbers, During this portion of the debate, the weigh the pros and cons of the legislation and I have not seen before this Congress gentleman from Ohio [Mr. KASICH] will make improvements where I can. anything that has been proposed by the be recognized for 30 minutes, and the That is certainly what I wished could have Democrats that will reduce the deficit. gentleman from Minnesota [Mr. SABO] happened in this case. Instead, we're being They talk about reducing the deficit, will be recognized for 30 minutes. told to eat our spinach and be happy. I never but it is words only. When it got to The Chair recognizes the gentleman liked spinach when I was growing up, and I welfare reform, what did their proposal from Ohio [Mr. KASICH]. certainly don't like it now. do? It increased welfare spending by $2 Mr. KASICH. Mr. Chairman, I yield 1 Nevertheless, on the side of deficit reduc- billion. Ours reduced welfare spending minute to the distinguished gentleman tion, this bill is still serious business. It locks by $66 billion. There is a direct com- from New Hampshire [Mr. BASS]. into place $124 billion in spending cuts. parison. The Democrats are full of Mr. BASS. Mr. Chairman, I rise in The committee report accompanying the bill promises that if we only spend more support of the pending legislation, and suggests how to achieve these savings, and I money up front, somewhere down the I do so as a member of the House Budg- would not be representing my congressional line we are going to get a dividend, but et Committee. I am proud to be a mem- district, if I did not raise objections to some of it just does not happen that way. ber of this committee for the first time those proposals. I think the American people are well that came up with 180 billion real dol- For example, recommended is another hit aware that the party that stands for lars in spending reduction. on rural health care and rural schools. The ac- letting people keep more of their b tual cuts to be made will be determined in the money, downsizing the Federal Govern- 1730 coming months by the appropriators and au- ment is the Republican Party. And not only that, under the guid- thorizing committees. I will be fighting to keep I once had a Democrat colleague on ance of our chairman, it has come up our share of the pie in rural America. the Committee on Ways and means with a plan which is incorporated into My constituents understand that fiscal re- whom I respected a great deal, a liberal the rule which was passed today that sponsibility and our goal of a balanced Fed- Democrat, genuine, honest, sincere, will tie the tax relief to the passage of eral budget will require sacrifice. And they are followed his conscience, and he said to a balanced budget resolution which willing to do their share, but shutting down me one day, ‘‘Bill, I agree with you, we will be produced by this committee rural America will not be to anyone's benefit in should have a balanced budget con- sometime in the next 2 months. We will the end. Someone has to put the food in our stitutional amendment.’’ And I was not have a tax relief unless we have a urban grocery stores. rather surprised. But then he contin- balanced budget. I think that is respon- This bill is the good newsÐtax cuts. This bill ued, ‘‘The only difference is you think sible of this Congress, and for those is also the realityÐthere is bitter medicine to the budget should be balanced at 15 who are concerned about tax cuts ver- swallow in the months and year ahead if we percent of the GDP; I think it should sus spending reductions, be assured are to restore the government to fiscal health. be balanced at 50 percent of the GDP.’’ that we will have a balanced budget by Mr. Chairman, I urge my colleagues to sup- We want to get taxes down now equal the year 2002, and we will have tax re- port H.R. 1215. it is not perfect and certainly to 2 percent of what the spending will lief as well. is not painless, but it is necessary. be over the next 5 years so that when Mr. SABO. Mr. Chairman, I yield 1 Mr. ARCHER. Mr. Chairman, I yield we get to a balanced budget we will minute to the gentleman from Penn- myself the balance of my time. have a Federal Government that will sylvania [Mr. COYNE], a distinguished H 4232 CONGRESSIONAL RECORD — HOUSE April 5, 1995 member of the Committee on the Budg- Republican majority leadership rejected at- I encourage everyone to take a look et. tempts to restore the full family tax credit to at where the Republicans will be after Mr. COYNE. Mr. Chairman, I rise moderate-income Americans by phasing out we finish our 2 years with this oppor- today in strong opposition to the Re- this provision for Americans with incomes tunity to set America in a new direc- publican tax bill. This tax giveaway to above $95,000. Instead, Americans with in- tion. the wealthiest individuals in the U.S. comes up to $200,000 will benefit fully under We have taken a first step where we is made possible only by taking a meat this child tax credit provision while millions of have passed a rescission package where axe to programs serving children, sen- middle-class Americans will never receive a we actually pay for emergency spend- iors, and the poor. full $500 per child tax credit. ing. This is the second step in that Speaker GINGRICH has called this Re- It is also an outrage that Federal workers process. Today we are going to be de- publican tax cut for Americans with in- across America have been singled out for a livering over $190 billion in tax reform, comes up to $200,000 the crown jewel of tax increase to pay for this tax giveaway. A tax relief. We are going to be delivering the Contract on America. The tragic Federal worker in Pittsburgh earning $20,000 another $30 billion in deficit reduction. fact is, however, that this crown jewel will pay $500 more a year in pension taxes Within the next 2 months we will is being paid for by cutting programs under the Republican bill. The people we de- also for the first time in this House of like school lunches, infant nutrition pend on to run our prisons, enforce our laws, Representatives deliver a plan to get us programs, disabled children, LIHEAP, and serve the needs of all Americans have to zero, a balanced budget within the and student loans? The only good thing been hit with a tax increase under the Repub- year 2002. to say about this proposal is that at lican tax bill. So what we have done is we have paid least the Republican majority is being Finally, the Republican majority's talk about for emergency spending, we are provid- clear about its priorities. ensuring that this tax cut does not add to the ing tax relief, and we are going to con- This Republican tax bill is not a mid- Federal deficit is a sham. Instead of making tinue to slow the growth of Federal dle-class tax relief bill. The vast major- tax cuts contingent on deficit reduction, the spending so that we actually do get to ity of tax cuts in this bill go to the Republican bill only requires an annual report a balanced budget. That is a record richest individuals in our society. to Congress on progress toward reducing the that we will be proud of. That is a Households earning $200,000 would re- deficit. Instead of voting on specific cuts to record of accomplishment. And that ceive an average tax cut of $11,266. By pay for this bill, we have a promise of an addi- will be a record of equity, fair distribu- contrast, more than 44 million Amer- tional $100 billion in unspecified spending cuts tion between the American people and ican households with incomes below to be made sometime in the future. The Fed- slowing the growth of the Federal Gov- $30,000 would receive only $124. The eral deficit will grow even larger if the Repub- ernment. vast majority of middle-class Ameri- lican majority fails to enact their $17 billion cut Mr. SABO. Mr. Chairman, I yield cans will receive a meager portion of in school lunches, child nutrition, LIHEAP and such time as she may consume to the the Republican majority’s tax give- seniors programs that are targeted to pay for gentlewoman from Maryland [Mrs. away. They will, however, be the ones this tax giveaway. MORELLA]. to pay for this tax cut through cuts in The key to deficit reduction is to stop this Mrs. MORELLA. Mr. Chairman, I rise funding for education, children’s pro- tax giveaway. When you are in a hole, the first in opposition to the bill. grams, job training, crime prevention, rule is stop digging. How can we expect to Mr. Chairman, this vote is not about tax cancer research, and a host of other es- control growth in the Federal debt being cuts. It is about priorities. It is about sential domestic programs. passed on to future generations of Americans intergenerational equity. It is about whether While middle-class Americans get when the Republican tax bill adds billions we, as a nation, can in good conscience re- peanuts under this bill, the capital more to the Federal deficit? The Republican ward ourselves with tax cuts today, while lay- gains reductions in this bill will bene- response is to cut taxes today and we can pay ing upon our children the burden of massive, fit overwhelmingly upper income indi- for our giveaway tomorrow. That is the same bloated deficits stretching as far as the eye viduals. Over three-quarters of the tax message Republicans sold the country in the can see. That is not right, Mr. Chairman. benefits from the Republican capital early 1980's and the result was a Federal debt While I commend my colleagues, Rep- gains proposal will go to individuals that grew from less than $900 billion in 1980 resentatives CASTLE, UPTON, and MARTINI, for with incomes of $100,000 or more. This to more than $4.8 trillion in 1995. their concerted efforts to link tax cuts to deficit is no ‘‘Mom and Pop’’ small business Mr. Chairman, the Republican tax bill is no reduction, I do not believe that the commit- investment incentive. Over half the American Dream Restoration Act. This bill can ment they have secured goes far enough. No taxpayers who realize capital gains only be paid for by taking billions away from commitment, however well intentioned, can each year have incomes over $200,000. programs serving middle-class Americans in ensure that Congress will meet its deficit re- This select group of the wealthiest in- exchange for a few pennies in tax reductions. duction goals. Recent budget agreements dividuals in our society—those with in- At the same time, the wealthiest in our society have certainly taught us that. Yet we know comes above $200,000—would receive a will have their pockets filled with this Repub- that the pressure to maintain these very ex- $7,800 capital gains tax cut in 1996. lican tax giveaway. I urge my colleagues to pensive tax cuts will only increase with time, The Republican tax bill also reopens a tax defeat this tax bill. regardless of whether or not we are on the loophole for the biggest corporations in the Mr. KASICH. Mr. Chairman, I yield 2 deficit reduction glidepath specified in this United States by repealing the Alternative Min- minutes to the distinguished gen- agreement. That is a very, very slippery slope imum Tax [AMT]. The AMT was enacted in tleman from Michigan [Mr. HOEKSTRA], to embark upon, Mr. Chairman. 1986 when Congress became aware of how a member of the Committee on the I, too, support many of the individual tax U.S. corporations with millions in profits could Budget. provisions contained within this package, but avoid paying any taxes. Reopening this tax Mr. HOEKSTRA. Mr. Chairman, I the rule does not permit us to consider these loophole was not in the Contract With America think it is time for us to reflect back tax provisions individually. On the contrary, we but it was added in the House Ways and on where we have been for the last 2 are being asked to cast one vote on a mas- Means Committee to benefit the biggest cor- years and also then to look forward to sive tax bill whose price tagÐnearly $700 bil- porations in America. The Republican mes- where we are going to be at the end of lion in the next decadeÐis staggering. As a sage to corporate America is ``Let the good this Congress. result, in this case, the whole is less than the times roll.'' Over the last 2 years, back in 1993, we sum of its parts. While giving the lion's share of tax cuts to had a real what we thought was a genu- Finally, Mr. Chairman, I would like to voice the top 3 percent in America, this bill denies ine effort to reduce the budget, passed my strong objections to the leadership's unwill- millions of hard working Americans an ability the largest tax increase in American ingness to permit amendments that would di- to benefit fully from the $500 per child tax history. Two years later the President rect the child tax credit to middle-income fami- credit in this bill. In the original contract, a has come back after that large tax in- lies, rather than to those earning up to young couple with one child and a family in- crease and has taken a walk on getting $250,000. The lack of a reasonable cap on come of $15,000 would receive a child tax us to a balanced budget, continuing the child credit is particularly troubling consid- credit of $500. Under the Republican tax bill and perpetuating $200 billion deficits ering that this legislation actually raises taxes being considered today, that family of three for the next 5 years, taking us to an ac- on over 2 million Federal employees to fi- would receive a tax credit of only $90. The cumulated debt of over $6 trillion. nance everyone else's tax cut, an egregious April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4233 inequity that I have already discussed on this pense of our children, senior citizens, families save for education without suffering floor several times today. the disabled and working American any tax penalty. The Democrats are investing I urge my colleagues to keep their contract families. The arguments we have heard in our children and our economic future. What with future generations and to put deficit re- to day in support of H.R. 1215, are all to kind of country will we become when edu- duction, tax fairness, and equity for our Na- familiar. It was only 15 years ago when cation opportunities only exist for the very tion's civil servants first. Vote against this the Reagan revolution came here to wealthy? When students graduating from col- package. Washington to ask for deep tax cuts of lege cannot afford to purchase a home or a Mr. KASICH. Mr. Chairman, I yield 1 the wealth, and for corporations. car because of staggering college loan pay- minute to the very distinguished gen- In the early 1980’s our debt stood at ments? We are forcing today's college stu- tleman from New York [Mr. LAZIO], a $1 trillion, by the end of that same dec- dents into major debt before they turn 25. For member of the Committee on the Budg- ade the debt was close to $4 trillion. We our generation a mortgage represented a fam- et. have all listened to the Republican ily's major debt, today it is a college edu- Mr. LAZIO of New York. Mr. Chair- criticism of the President’s fiscal year cation. What impact does this have on our man, I rise today in support of H.R. 1996 budget concerning deficit reduc- economy and our ability to compete in global 1215, The Tax Fairness and Deficit Re- tion. However, it should be pointed out economy. If we do only one thing to help fami- duction Act of 1995. that if the President did not have to fi- lies and improve economic opportunities for all As the father of two young daugh- nance the 1980 debt ‘‘gift’’, his budget Americans, it would be investing in education. ters, I am well aware that families des- would have been balanced. That’s bet- The Democratic substitute ensures fiscal re- perately need tax relief. My constitu- ter than a glide path. The same mis- sponsibility while providing necessary relief to ents on Long Island are shouldered guided policies and economics that al- working families. What price are we willing to with some of the highest taxes in the lowed our debt to triple in less than 10 pay to help major corporations and the top 10 Nation, which are literally robbing years, are driving this huge tax give percent of earners. Are we willing to cut middle-income taxpayers of the ability away. school lunches? Cut student loans and Pell to take care of their families. We have heard that this hugh mas- Grants? Cut Medicare and long-term care for The National Taxpayers Union esti- sive irresponsible tax give away, will the disabled and senior citizens? Eliminating mates that in 1991 a family of four that spur economic growth. I think my col- or drastically reducing COLA's for Federal and makes $53,000 paid 50 percent of their leagues on the other side of the aisle military retirees? Are we willing to allow major earnings in Federal, State, local and need a refresher course. Fifteen months cuts in breast cancer research. If you answer other indirect taxes. So, the Govern- after the 1981 tax cuts, the unemploy- no to any of these choices, you must defeat ment takes home a larger share than ment rate soared to 10.8 percent, it H.R. 1215. included in this legislation is a call the worker. Disturbingly, parents now highest point since the end of the great to cut $100 billion over 5 years from domestic spend about 20 percent less time with depression. and military spending. their kids today than 40 years ago. I would question the wisdom of turn- I ask my colleagues to seriously consider Why? Because the tax exemption for ing our backs on deficit reduction. As a the ramifications of today's dangerous vote. children has eroded due to inflation. In member of the House Budget Commit- Do not be fooled by the rhetoric of yesterday. 1948 the child exemption amounted to tee, I have heard testimony from nu- We have a choiceÐwe can vote for the 42 percent of an average family’s in- merous economists who have cautioned Democratic alternative and vote for families come. Today it is only worth only us in proceeding down a dangerous and economic stability or we can vote for the about 12 percent. Consequently, both path. Even the Chairman of the Fed- Republican bill and send the deficit through parents today usually have to work eral Reserve, a vocal proponent of a the roof. We simply cannot justify this type of just to make ends meet. capital gains tax cut, recommended reckless borrowing to give tax breaks to the The $500-dollar-per-child tax credit caution and reminded us that the most wealthy at the expense of real working fami- contained in the bill will help ease that important thing we could do for long- lies and the most vulnerable in our society. burden. Every dollar workers do not term economic growth is to reduce the Mr. SABO. Mr. Chairman, I yield 2 have to send to Washington can instead deficit. Adding an additional $700 bil- minutes to the gentleman from North be used to raise their families. Overall, lion would do little to reduce the defi- Dakota [Mr. POMEROY]. Long Island families will save nearly cit and reduce long-term interest rates Mr. POMEROY. Mr. Chairman, one of $65 million from this tax credit. Impor- which directly impact short term in- my favorite Jack London stories is tantly, 75 percent of it will go to fami- vestments. about the young Eskimo hunter who lies with incomes of less than $75,000. We do have a choice before us today. was highly successful. When they found Additionally, H.R. 1215 recognizes the We can support real relief for working fami- out his secret, all were amazed, be- particular financial burdens placed on lies without jeopardizing deficit reduction or we cause his secret was to wrap tightly seniors and would allow them to keep can support relief for multinational corpora- coiled shards of steel into frozen meat, more of their earned Social Security tions and wealthy citizens. The Democratic and as the polar bears would devour benefits without being penalized for substitute includes necessary triggers to pre- the meat and thus would begin to di- working. It also repeals President Clin- vent any tax relief from adding to the deficit, gest it in the polar bear’s stomach, the ton’s tax increase on Social Security unlike the Republican bill which simply calls shards of steel would strike forward benefits and, provides tax incentives to on CBO to tell us that the deficit targets were and literally tear the guts out of the encourage people to purchase long- not met and that automatic cuts in entitle- polar bear, leaving a remarkably suc- term care coverage. In all, seniors in ments and discretionary accounts are nec- cessful hunt for the young Eskimo hun- New York would reap over $2 billion in essary. It does not force the cuts nor does it ter. tax savings from this bill. give any specific cuts. The Democratic alter- The tax bill before us is constructed Forty-two million families and 5 mil- native repeals the tax relief provisions in the not unlike that little hunting trick. It lion seniors will see their taxes cut event that the deficit climbs above established offers a $200 billion deficit impact in under this bill, and New Yorkers will targets. the first 5-year measurement window save nearly $16 billion over the next 5 Included in the Democratic alternative are for this bill. The House only considers years. Best of all, these tax cuts will be real investments in our future economic the first 5-year cost of the proposal. matched by spending cuts. strength while ensuring that all of the benefits Some in the majority side think we Mr. SABO. Mr. Chairman, I yield 2 are targeted to taxpayers with adjusted gross can afford the $200 billion. I happen not minutes to the gentlewoman from New income and less than $100,000. to agree. York [Ms. SLAUGHTER]. The substitute provides for a deduction for But no one is talking about the full Ms. SLAUGHTER. Mr. Chairman, I educational expenses of up to $10,000; a res- cost of this bill, the 10-year cost of this rise today in strong support of deficit toration of the deduction for student loan inter- bill, and that is vital to consider in reduction and in opposition to a bill est; an expansion of the current IRA Program light of what happens once we get past that will add at least $700 billion to the to make more Americans eligible and to allow this bill’s measurement window. deficit. The legislation before us today for penalty-free withdrawals for education and You can see here in this chart that will give millions of dollars to the an enhancement of the Savings Bond Pro- once we get past the 5-years, the cost wealthiest in our society at the ex- gram to increase the rate of return to help of this measure explodes, and like the H 4234 CONGRESSIONAL RECORD — HOUSE April 5, 1995 trick used by our young Eskimo friend, However, if the American people want- ment where $1 equal 1 vote, $1 million this tears the guts not out of a polar ed us to cut $60 billion and we only des- equals a million votes. bear but out of the Federal Treasury ignated 50, we would, in fact, under Mr. Chairman, I yield 2 minutes to when the full costs of the tax proposal this have to find another $10 billion in the gentlewoman from California [Ms. before us are experienced to this Treas- cuts. Therefore, it works in conjunc- WOOLSEY]. ury. It will devastate our ability to tion with and compliments the push for Ms. WOOLSEY. I thank the gen- reach a balanced budget. a balanced budget. tleman for yielding this time to me. It will devastate programs vital to It is also a backup. If Congress fails Mr. Chairman, we are hearing a lot of kids, vital to students, vital to seniors. to enact the balanced budget, the 10 inside-the-beltway talk in this debate, It is very, very bad policy, and I urge percent will be the only option for cut- and it must be confusing to the Amer- its rejection. ting spending. If Congress failed to ican people. Mr. KASICH. Mr. Chairman, I yield 4 enact spending reductions to meet the In beltway language, this is a bill to minutes to the gentleman from Penn- amount designated by the taxpayers, eliminate the alternative minimum tax sylvania [Mr. WALKER], the very distin- an across-the-board sequester would by reducing discretionary spending guished chairman of the Committee on occur on all accounts except Social Se- caps in violation of the Budget En- Science and a member of the Commit- curity retirement benefits, interest on forcement Act. tee on the Budget. the debt, deposit insurance accounts, But let me tell you what this bill is Mr. WALKER. Mr. Chairman, I thank and contractual obligations of the Fed- really all about. It means that NEWT’s the gentleman for yielding. I would eral Government. If Congress enacted Republicans are creating tax loopholes like to thank him for his leadership on only half of the necessary cuts, a se- for special interests, and paying for it this bill. quester would ensure the other half. by taking food out of the mouths of I certainly rise in support of the Ka- All spending cuts would be perma- children, taking money out of the sich amendment and applaud the hard nent. The cuts would be permanently pockets of middle-income college stu- work done by the Speaker of the reducing the spending baseline. dents, and taking homes away from House, by the chairman of the Commit- Although nothing in the legislation low-income seniors. tee on the Budget, by Chairmen AR- would prohibit Congress from increas- In Budget Committee, when these CHER and BLILEY to put together this ing taxes, tax increases could not be painful cuts were being thrust upon us, historic measure. Included in this bill used as a substitute for spending reduc- I offered an amendment to protect is a measure that the gentleman from tions that would be designated by the child nutrition. But, marching in lock Minnesota has mentioned on a couple taxpayers. step, the Republicans said ‘‘no.’’ of occasions which I believe is a rather NEWT’s Republicans sent a clear mes- b historic provision and is something the 1745 sage to America’s children: We are American people have found very, very OMB and CBO both say this idea willing to take away your school lunch much in line with their beliefs of how works. It would balance the budget in 7 so we can give lobbyists and special in- we ought to begin this process of bal- years and zero out the debt by fiscal terests a free lunch. ancing the budget, namely, to get them year 2010 if everybody participated. If But, Mr. Chairman, young children involved, and this particular provision the public debt is not reduced in the are not the only ones who will pay for is called the Taxpayer Debt Buydown same time period, projections show it these tax loopholes. We will also be Act. will increase to over $9.5 trillion. So taking money out of the pockets of This is an effective, innovative plan this is a very real way of beginning to middle-class college students and their to cut the runaway Federal budget def- deal with the problem. families. At two schools in my district icit and reduce the $3.6 trillion in pub- Some recent criticisms have centered alone, almost one-thousand students lic debt. It is a bold way of bringing the on one issue. The gentleman from Min- will lose their campus-based aid so that American taxpayer directly into the nesota suggested that this would cre- special interests can stuff their wal- budget process. It is a plan that will ate a plutocracy where the rich would lets. give the taxpayers the power they need control the U.S. budget. Well, those Unfortunately, there is another vic- to participate in controlling Federal with incomes over $100,000 would pay tim in this plot to prop up the special spending, a referendum every April 15 39.2 percent of all individual income interests—our seniors. While kids are on Federal expenditures. tax, or the top 1 percent of income tax- being kicked out of schools, seniors are The proposal would amend the IRS payers pay 27 percent of all income tax. in danger of losing their housing. More code to allow taxpayers the oppor- You cannot have it both ways. You than 200 seniors in Santa Rosa and tunity to voluntarily designate up to 10 cannot on the one hand say we are Marin are already in danger of being percent of their income tax liability going to tax people because of their thrown out in the street. for the purpose of debt reduction. All wealth and then suggest when there is Like school lunches and student moneys designated would be placed in a opportunity to have them participate loans, affordable housing will become public debt reduction trust fund estab- in some of the things to begin reducing an impossibility for many of America’s lished by the Department of the Treas- the deficit, that they cannot partici- seniors. ury and used to retire the public debt pate equal to what they are contribut- Mr. Chairman, NEWT’s Republicans other than obligations held by the So- ing to the entire problem. So that is are going too far, and they are going cial Security trust fund, the civil serv- what this does. No one is treated un- too fast. The people of this country ice and the military retirement funds. equally. Anybody who pays taxes gets don’t want this partisanship, they want On October 1 the Treasury Depart- a chance to have their say in whether real solutions—solutions that will im- ment would be required to estimate the or not the debt and deficit should come prove their lives, not take away their amount designated through the check- down. I think this is a highly positive opportunities. off. Congress would then have until kind of approach, and people are find- I beg my colleagues on the other side September 30 of the next year to make ing it is a highly positive kind of ap- of the aisle, in the interest of our chil- the necessary cuts in spending. To co- proach. I congratulate. I congratulate dren, our seniors, and middle-class ordinate this measure, in the efforts to the gentleman from Ohio [Mr. KASICH] America, let us slow down and think balance the budget, the checkoff would for including it in this proposal, and I about who we are hurting before we count only if the amount is greater look forward to voting for the bill and pass this tragic legislation. than the cuts Congress has already im- seeing to it that it passes. Mr. KASICH. Mr. Chairman, I yield 3 plemented. For example, if Congress Mr. SABO. Mr. Chairman, I yield my- minutes to the distinguished chairman passes a reconciliation bill this year self 15 seconds. of the Committee on Government Re- and designates cuts of $50 billion in The gentleman describes a provision form and Oversight, the gentleman 1998 and the checkoff in 1998 totals $40 inserted in the bill with no hearings, from Pennsylvania [Mr. CLINGER]. billion, well then, we will have met our no consideration. It changes fundamen- (Mr. CLINGER asked and was given obligation, and there would be no des- tally our government from a represent- permission to revise and extend his re- ignation of additional money needed. ative democracy to a system of govern- marks.) April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4235 Mr. CLINGER. I thank the gen- between pensions here in the legisla- Mr. Chairman, I rise in opposition to the so- tleman for yielding this time to me. tive branch and those in the executive called ``Tax Fairness and Deficit Reduction Act Mr. Chairman, I rise in support of branch. H.R. 1215 would bring congres- of 1995.'' H.R. 1215, the Tax Fairness and Deficit sional accrual rates for Members and I believe the American public has sent us a Reduction Act of 1995. staff in line with regular Civil Service clear message: Cut spending first. In order to This bill keeps the promise made in accrual rates. balance the budget over the next seven years, the Contract With America to put us Mr. Chairman, in closing, I want to we will have to make over $1 trillion in spend- on a path toward fiscal responsibility say I strongly support the package of ing cuts. This will be extremely painful and dif- with reduced spending to the tune of Federal retirement reforms in this leg- ficult to achieve. To dig ourselves another $90.7 billion over 5 years—that is a islation and urge my colleagues to do $630 billion in debt before we even start to whopping $90.7 billion in deficit reduc- the same. These particular provisions climb out of the deficit hole makes absolutely tion—accomplished by imposing sorely represent a giant step in facing reality no sense. needed restraints on discretionary that the present dysfunctional system I am certainly not alone in this analysis. The spending. is a significant contributor to the over- chairmen of the Senate Budget and Finance A very difficult part of getting our all budget deficit. Committees both agree that we should not be fiscal house in order is going to involve I commend the chairman of the cutting taxes at this point. The Senate Budget reforming our Federal retirement sys- Budget Committee, the gentleman Committee's preliminary plan to balance the tem. I have heard some Members argue from Ohio [Mr. KASICH], for his efforts budget includes not a single tax cut included that there is nothing wrong with the in this area, and again urge my col- in this tax bill we are debating today in the current system. But let me state em- leagues to pass this legislation. House. phatically—our Federal retirement Mr. SABO. Mr. Chairman, I yield 2 So why is this vote taking place. The an- system is broken and in dire need of re- minutes to the distinguished gen- swer is politics, pure and simple. The tax bill pair. We currently have an unfunded li- tleman from Utah [Mr. ORTON]. is in the grand old political tradition, a Christ- ability of $540 billion and that bill is (Mr. ORTON asked and was given mas tree, with something for everyone. As long long overdue. permission to revise and extend his re- members struggle to justify why they are vot- On top of that, we have a system marks.) ing for final passage, their only line of defense where the retirement benefits paid out Mr. ORTON. I thank the chairman seems to be ``It's in the Contract.'' Many sup- every year far exceed the cash coming for yielding. porters of those who will vote for this bill are in to pay for those benefits. And who Mr. Chairman, I came here today pre- privately conceding that we should not be cut- do we look to pay the difference? Obvi- pared to give a speech to you outlining ting taxes by $630 billion over 10 years, and ously the American taxpayer. Last the good parts and the bad parts of this are counting on the Senate to bail us out. year, $26.5 billion had to be drawn from bill and to tell you why I am in opposi- This is not the responsible thing to do. The the Treasury to help pay the pension tion to it. But I would like to submit clear danger here is that we will commit the benefits for Federal retirees. If we do my statement for the record and talk same mistakes of the 1980's that lead us to not do something now, that number is to my colleagues for just a minute ruinous budget deficits and a national debt ap- going to continue to grow larger and about what is really important. proaching $5 trillion. In 1981, we passed tax larger. Mr. Chairman, a week ago my life cuts first, with the promise of future spending A very short history: The Federal Re- changed forever as my wife gave birth cuts. Those cuts never materialized. We can- tirement System was originally set up to our first-born son, and today I just not make this same mistake again. The so that employee and employer con- came from the doctor’s office where we spending cuts should come first. Then, if we tributions were equal, and those pay- took him for his one-week checkup. can find additional spending cuts, we can then ments were projected to cover the cost While there, they had to take a blood cut taxes. of the system. When Congress in- test from his blood; they stuck his For that reason, I have worked with Rep- creased benefits, Congress also in- ankle and also had to give him an im- resentatives BROWDER, CASTLE, UPTON, and creased employee contributions to munization. As he laid there crying MARTINI over the last few weeks to develop cover these costs. The last adjustment and looking up at me through tears in and offer a bipartisan amendment to make all to employee contributions, however, his eyes, I would have done anything in of the tax cuts in the bill dependant on spend- was made in 1969—26 years ago. the world to take that pain from him. ing cuts necessary to both balance the budget Since then, salaries and benefits have But I could not take his blood test for and pay for the tax cuts. Specifically, our continued to increase for Federal work- him, and I could not take that immuni- amendment would have delayed the effective ers and retirees, but without, without zation. It made me think as I came date of the tax cuts in the bill until Congress any corresponding mechanism to pay here to the floor today what are we passed and the President signed into law leg- for them. The result is that the Federal going to say to my son 20 years from islation which cuts spending enough to bal- Government—the American taxpayer, now or your sons and daughters or ance the budget by 2002, and also pay for the in effect—has shouldered an ever-in- grandchildren if we fail to get our fis- tax cuts. As an enforcement mechanism, the creasing share of the cost of Federal re- cal house in order? If we pass onto tax cuts in the bill would later be revoked if we tirement. That share is now about 70 those children and future generations failed to meet interim deficit targets leading to percent of the cost of the retirement of this country the deficit, the debt a balanced budget by the year 2002. system. that we have piled upon them, it will This amendment is completely consistent So it is time past due to address the impact their lives forever. with what the House leadership has an- inequities of the system and put our But there is something we can do nounced it would doÐto both balance the Federal retirement program on a sound about that. What I am going to do budget and pay for tax cuts. Now, I am fiscal footing. about that today is to vote against this pleased to see that leadership has retained a The increased contribution from Fed- bill because this bill does not balance portion of the provision in our amendment eral employees—amounting to about $2 the budget. This bill says before we which delays implementation of the tax cuts billion a year—will go directly into the start even climbing out of the $5 tril- until there is a certification that the reconcili- Federal Retirement System to main- lion hole we are, we are going to dig ation bill containing the tax cuts both balances tain the system’s benefit structure. $700 billion deeper. That does not make the budget by 2002 and pays for the tax cut. And because additional employee con- sense. I take this to be an ironclad commitment that tributions reduce the need for Federal So I would urge my colleagues let us the House leadership will not bring a reconcili- borrowing to pay current benefits, the balance the budget first, let us not dig ation vote to the floor this summer containing deficit also is reduced. deeper into the hole before we try to tax cuts unless such a certification is made. The Budget Committee has taken a climb out. Let us be able to look our And, I strongly urge every member of the difficult step in addressing the inequi- children and grandchildren in the eye House to vote against any future reconciliation ties in cost between Federal employer in the future and tell them we did do bill which violates this commitment. and employees. But just as important, what we could do for this country. However, I am concerned that leadership the legislation addressed the inequities I urge my colleagues to vote ‘‘no.’’ watered down the Browder/Castle/Orton/ H 4236 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Upton/Martini amendment with respect to en- hard-working, tax-paying citizens of am voting against it and urge others to forcement of annual glidepath targets. In my this country. do the same. opinion, leadership's failure to retain this provi- Republican leadership is different. b 1800 sion calls into question their commitment to We are leading by example. I urge my making deficit reduction our top fiscal priority. colleagues to support this legislation. Mr. KASICH. Mr. Chairman, I yield 2 And it makes it harder to vote for a bill which Mr. SABO. Mr. Chairman, I yield 2 minutes to the gentleman from New cuts taxes at the expense of deficit reduction. minutes to the distinguished gen- Jersey [Mr. SAXTON]. Mr. Chairman, the issue is simple. With over tleman from South Carolina [Mr. Mr. SAXTON. Mr. Chairman, I thank $200 billion deficits as far as the eye can see, SPRATT]. the gentleman from Ohio [Mr. KASICH], it is irresponsible to start off with tax cuts (Mr. SPRATT asked and was given the chairman of the Committee on the when we should be starting off with spending permission to revise and extend his re- Budget, for yielding this time to me. cuts. The issue is not whether these tax cuts marks.) Let me just say that there are two are paid for with spending cuts. The issue is Mr. SPRATT. I thank the gentleman things that this economic program whether we are going to cut spending in a for yielding this time to me. that the contract embodies are trying amount necessary to both balance the budget Mr. Chairman, I have listened to to carry out. One is to slow the growth and pay for any tax cuts we might approve. Members from across the aisle insist of outlays that the Federal Govern- Put simply, the issue is whether we are going the tax cuts in tax bill are paid for. In ment does on an annual basis. This to cut spending first. truth, they are not paid for. That is chart shows where we have come in I recognize that families with children could why this tax bill is so reckless. I have terms of outlays over the years from a use tax relief at this time. However, I would time to talk about just one reason why low of total Government spending in appeal to every family in my home state of the revenue losses entailed by this bill 1930 of 12 percent to the 1990 level of Utah and in the nation to ask themselves what are not replenished or offset by spend- spending of 42 percent, and it is the ing cuts. That is that the lower spend- chairman of the Committee on the is best for their children. Do we want to leave ing cap, $100 billion, for reduction in Budget and his committee members a legacy to our children of a staggering debt, discretionary spending, is spurious, who are going to be responsible for high interest rates, and a declining standard of just more smoke and mirrors. bringing down this rate of growth living? Do we want to continue a path of con- Now, I know that the chairman of the under our plan. suming today at a huge cost tomorrow? Is that Budget Committee sent us an illus- The second part of our plan is to cre- really a family-friendly thing to do? trative list of spending cuts that total ate more revenue, to get revenues We know the answer is no. Every parent $100 billion. None of these cuts has growing so that, as we bring down the recognizes the need to save for their chil- been voted on yet. It would be miracu- rate of growth and spending, the reve- dren's higher education and for their own re- lous, in my opinion, if even half of nue line will catch up with that level of tirement. We should be equally responsible them were ever approved. And if we spending that is necessary, and in so with our federal finances. It is fun to cut take this tax list sent to us by the doing eliminate the budget deficits taxes? The answer is clearly yes. Is is respon- chairman at its face value we ought to and, eventually, the debt. sible to cut taxes before we cut spending, ex- know that there is one peculiar dis- In order to do that, John Kennedy acerbating our $200 billion a year federal defi- crepancy to it. That is that it is silent, told us in 1963 that, if we do good, cits? The answer is clearly no. Let's put the altogether silent on defense spending, smart tax policy, it will create an eco- nation's interest above political interest. Vote which constitutes half of all discre- nomic expansion, we will have more no on the rule and vote no on final passage. tionary spending. people working, earning more money Mr. KASICH. Mr. Chairman, I yield 1 The chairman also said lately that he and hence paying more taxes, and that minute to the gentleman from Florida would like to freeze defense spending is what today’s debate is essentially [Mr. MILLER], a member of the Com- at the current level of outlays, which is about. mittee on Appropriations, and a distin- $270 billion. Now we know that there are some guished member of the Committee on Now, let us bring defense, the other folks on the other side of the aisle who the Budget. half of discretionary spending into the do not want lower taxes because it Mr. MILLER of Florida. I thank the picture and see what happens. I have a means we have to spend less because gentleman for yielding this time to me. chart here that is not about class war- we will have a smaller government, and Mr. Chairman, the gentleman from fare, it is about budget reality, which so they try to come up with some red Utah who just spoke said there are deals with that particular half of herrings to scare some of the Members 182,000 children in the gentleman’s dis- spending. who might be hesitant to vote for it. trict who would benefit from this tax If we take the lower caps, $100 billion The next chart shows what one of cut and that would amount to $91 mil- reduction in the spending caps called those arguments is about. They say lion in tax savings for the gentleman’s for by this bill with constant defense that the capital gains tax reduction constituents. outlays of $270 billion, that is an out- that we are proposing to put in place Mr. Chairman, I am proud to be here lay freeze on defense, we see from this does big favors for the rich people when today in support of the Tax Fairness tax chart that we will have to cut $41 in fact 38.4 percent of the people who and Deficit Reduction Act. Not only billion out of budget authority from pay capital gains tax have an income of does this legislation provide necessary nondefense programs for fiscal 1996, under $50,000, and, as a matter of fact, tax relief for the hard-working families which is next month. As you can see the next 22 percent have income over of America, it pays for those tax cuts from those charts, those cuts in $100,000, and so in fact the large major- and reduces the deficit by $30 billion. nondefense budget authority will rise ity of the capital gains that are paid In our quest to remove the burden of to $66 billion in fiscal year 1998, a 23.5- are paid by low income and middle in- bloated government from the backs of percent reduction off current levels of come people. our kids and our grandkids, all I hear spending for those programs. That is The other thing that the opposition from the other side of the aisle is 23.5 percent off of NASA, Drug Enforce- would like us to believe is that the $500 empty rhetoric about class warfare. ment Agency, programs for the elderly, per child tax credit somehow favors The fact is we started with ourselves: you name it, everything in discre- rich people when in fact 87 percent of for the first time in 40 years, we have tionary spending. Altogether, over 5 the people who will benefit from this a deficit reduction package that cuts fiscal years the cuts in nondefense program earn less than $75,000 a year. benefits for Members of Congress. This spending will add up to $187 billion, As a matter of fact, the last speaker, legislation reforms the overly generous which is $87 billion more than the the gentleman from South Carolina pension benefits given to Members of chairman of the Budget Committee has [Mr. SPRATT], has 123,000 children in his Congress by the overly-taxed American laid out in his illustrative list. district which are middle income peo- people. Now, there are lots of things in this ple, and has district, if we do not pass Never in the past 40 years did the tax bill I would like to vote for and this plan, will therefore lose $307 mil- Democrats reduce their benefits and support. This would deal a death blow lion to the families and his middle actually give the money back to the to deficit reduction, and that is why I class taxpayers. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4237

Mr. SABO. Mr. Chairman, I yield 2 ment offered by Mr. UPTON, Mr. MAR- stituents. But I am determined not to minutes to the gentlewoman from Ha- TINI, and myself that requires that the repeat its mistakes again in 1995. waii [Mrs. MINK]. tax cuts can only become law when Contrary to my usual optimism, it is (Mrs. MINK of Hawaii asked and was Congress has approved budget legisla- hard for me not to agree with the given permission to revise and extend tion that will put the Government on quote: her remarks.) course to a balanced budget by the ‘‘What experience and history teach Mrs. MINK of Hawaii. Mr. Chairman, year 2002. in this—that people and governments I thank the gentleman, and I appre- This will hold Congress’ feet to the never have learned anything from his- ciate the time to offer my thoughts fire to ensure that the budget legisla- tory, or acted on principles deduced about what we are about to do. tion passed this year will make all of from it.’’ Two weeks ago we had some very the necessary spending cuts and pro- Think what we are doing, friends. We dramatic debate in this House concern- gram changes to reduce the deficit have a debt which will break $5 trillion ing the welfare program. At the end of every year for the next 7 years so that by the end of the year. We have annual that we saw major cuts being made on the deficit will be zero in 2002. deficits which are scheduled to con- some of the most substantial programs It provides a strong incentive to put tinue rising in the foreseeable future. that help needy families throughout a tough budget plan in place now, so We have a Medicare program which America, and the cost of the program that the tax cuts can begin as sched- will be insolvent just around the cor- in terms of reductions made against uled next year. ner, and a Social Security program the poor in America came to something In subsequent years, if the budget which will go from having a surplus to over $60 billion. I say to my colleagues, committees and CBO report that we running deficits within the next gen- you study this tax cut program today, are no longer on course to a balanced eration. you’ll see that the $60 billion that we budget, Congress must then consider a Our dollar hit a new low today; how took away from poor needy families is budget resolution that will put us back can we even be thinking about cutting going to pay for the tax cuts for the on course. taxes right now? super rich in this country. In addition, the legislation will also I feel particularly sick about seeing I stand here today, not as an expert require the President to submit a bal- history repeat itself in terms of back- on the tax cuts and the implications anced budget each year. As my col- loaded costs, disingenuous baselines, that are going to fall upon this Nation leagues know, President Clinton has and a ‘‘spend now/pay later’’ attitude in 5 or 10 years, but I stand here today submitted a budget that will produce which is in the current resolution and ask the question, Is it ever fair for $200 billion deficits for each of the next which is before us today, and I also get the Congress of the United States to 5 years, adding almost a trillion dollars very upset and disturbed by the fre- pass tax cuts for the super rich and to to the national debt. This amendment quent comment on the floor that pay for it out of the needs, and wants will require the President to submit a Democrats have not put a serious defi- and feelings of the poorest in this coun- balanced budget or offer one as an al- cit reduction plan up for a vote. I have try? We cut school lunches. We are ternative plan if he chooses to propose noted that every Member that has going to cut the student aid programs continued deficit spending. stood up and made that comment in our colleges. We took away some of Mr. Chairman, I strongly believe that today who was here last year when we the WIC Program. We took away the no tax cuts should go into effect until had the opportunity voted against the base of guarantee of the welfare struc- this Congress faces up to the challenge entitlement cap when we put it on the ture by taking away the entitlements. of reducing Government spending. This floor and had a serious effort, every On and on, Mr. Chairman, the sac- amendment ensures that this will hap- single one that criticized that were rifices that are being called upon to pen. Many of us have tried to work on here in the last Congress. pay for this tax cut are coming from a bipartisan basis on this issue and we Vote ‘‘no.’’ Let us stop making the the average citizens of this country. will work with Chairman KASICH as we hole deeper. Now there are some good things in move on to the deficit reduction legis- Mr. KASICH. Mr. Chairman, I yield 1 here, and I suppose many people are lation that must pass before the tax minute to the distinguished gentleman going to be tempted to vote for this bill cuts can take effect. We want to cut from New York [Mr. FORBES]. because of these various good items in taxes—let us make sure the spending Mr. FORBES. Mr. Chairman, I might it, some of it having to do with the sen- cuts happen first. point out that my distinguished col- ior citizens. But I ask the senior citi- Mr. SABO. Mr. Chairman, I yield 2 league who has preceded me, there are zens: In the end we’re going to have to minutes to the distinguished gen- 114,000 children in the gentleman’s dis- pay for these tax cuts of $189 billion, tleman from Texas [Mr. STENHOLM]. trict whose parents are eligible for the and watch out, senior citizens. It is (Mr. STENHOLM asked and was $500 per child tax credit. This bill going to come from your programs, given permission to revise and extend would allow middle class families in your benefits, and your Medicare Pro- his remarks.) his district to keep a total of $57 mil- gram. I guarantee you that. Mr. STENHOLM. Mr. Chairman, one lion of their hard-earned money. Mr. KASICH. Mr. Chairman, I yield 2 of my colleagues was quoted in this Mr. Chairman, we are responding to minutes to the distinguished gen- morning’s paper saying, ‘‘How can any- the will of the American people in en- tleman from Delaware [Mr. CASTLE], one today vote against cutting taxes?’’ acting the tax fairness and deficit re- the former Governor of the State. It should be very easy for all of us duction bill. The Clinton administra- Mr. CASTLE. Mr. Chairman, I believe when we are doing it with borrowed tion and their defenders raise taxes on the premise of this bill is correct: The money. the elderly, they raise taxes on fami- American people should be able to keep Another colleague stood in the well lies, they raise taxes on small business more of the money they have earned. It too long ago and said, ‘‘Imagine $500 men and women, the Main Street mer- is just not right for the Federal Gov- laying on this table. Shall we have a chant, the hard-working Americans, ernment to take an ever increasing family spend it, or shall we have the and my folks on Long Island, already share of the incomes of working Ameri- government spend it?’’ Obviously the carrying a heavy enough burden, they cans. Do the American people want a family, with one small problem. It has asked for this relief. tax cut? Yes, they certainly do. But already been spent, and to spend that It is unfortunate that the mouth- their top priority—and many of my 500 again they have got to borrow it piece for the Clinton administration at constituents in Delaware have told me again. the Small Business Administration’s this—is for Congress to cut spending We all know the quote about those Office of Advocacy has come out and balance the budget first, and then who refuse to study history being against this measure of relief for small cut taxes. The bill now contains this doomed to repeat its mistakes. Well, I business men and women while the very important safeguard. not only studied the congressional his- NFIB, the Chambers of Commerce and I am pleased to say that the Repub- tory of the early 1980’s—I helped to all small business groups favor the en- lican leadership, Chairman ARCHER and make it. I did it in good faith. I did it actment of this tax fairness and deficit Chairman KASICH agreed to an amend- with the encouragement of my con- reduction measure. I urge its passage. H 4238 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Mr. SABO. Mr. Chairman, I yield 2 a Congress then that promised that 10 years is $700 billion. This hurts defi- minutes to the distinguished gen- they would make $2 or $3 in spending cit reduction. tleman from Texas [Mr. DOGGETT]. cuts for every dollar that they cut in This bill should be changed to target Mr. DOGGETT. Mr. Chairman, let me taxes. And you know what? It never families making up to $100,000, the real start by saying how many thousands happened. It did not happen. It was a middle-class. The tax breaks should be there are that would benefit from the promise that was not delivered on. for higher education, expenses, and in- tax credit in my district; 85 percent of In fact, the deficit ballooned by $4 terest on student loans and expanding them would still benefit from it if for trillion during those years. In 1990, as a the number of taxpayers who can de- the 105 Members on the Republican side Member of Congress, I was asked to go duct contributions to IRA’s. The most who signed the letter saying that we down to the White House to spend a lit- important thing is all tax cuts should ought to change that tax cut had had tle time with President Bush and talk be delayed until OMB certifies that the courage to stand by their convic- about his 1990 tax/budget bill. I told legislation has been enacted that will tions, but we do not have that choice him then that I could not support it. I provide that the budget will be bal- today. We only have the choice pre- could not support it because his advis- anced in fiscal year 2002, and that this sented of extending a tax break to ers where taking him to the cleaners. bill should automatically be repealed if those in the $200,000 range, and this In fact, as I reviewed the numbers this specific targets are not reached each bill, as the gentleman from Texas [Mr. last weekend, his budget predicted a year. STENHOLM] said, really is about borrow- surplus of $63 billion in the year 1995. Mr. Chairman, this bill should not be ing from all the children in our district They were $300 billion off. in order to pay for this politically mo- supported, and I urge my colleagues on Mr. Chairman, the Castle-Upton-Mar- both sides of the aisle to do what the tivated tax cut. It is not the American tini language that was adopted on this Dream Restoration Act. Its real title is bill proposes to do, and that is to give House floor on the last vote recognized tax fairness. ‘‘Stealing Our Children’s Future Act.’’ three very important principles: No. 1, This bill makes the deficit greater in Mr. SABO. Mr. Chairman, I yield 2 none of the tax cuts would kick in un- minutes to the distinguished gen- the year 2000 than if we did not do any- less we passed reconciliation later this thing. Put another way, if this Con- tleman from Virginia [Mr. MORAN]. year that in fact will lead to a balanced Mr. MORAN. Mr. Chairman, my gress would just shut the doors and go budget by the year 2002. The second friend from Michigan mentioned that home, we would be a lot better off as point was that each and every year if he worked for the Reagan administra- far as the deficit is concerned. we get off that track, we will have a tion during the 1980’s. I worked for the The American people know that this mechanism to put us back on the Nixon administration for quite some deficit reduction program is not satis- track, so that in fact we can achieve a time. But during the 1980’s I was a fied in this bill, that in fact what we balanced budget by the year 2002, and stockbroker. I sold tax shelters, tax have is a deficit-mushrooming bill, not end up with something that hap- shelters because they paid the highest and, when they have been asked, pened with the Bush budget back in whether it is in the field hearings of commission. And most people that 1990. And, No. 3, that the President will the Budget Committee around the came into the office, whatever they in- submit a budget that will balance the country or in the polls like the one the vested, we could show them how to budget by the year 2002. Wall Street Journal recently con- The Castle-Upton-Martini language avoid paying any Federal income taxes. ducted, well over half of them have acts as an insurance policy. It insists I have some familiarity with the way said, ‘‘Use the money to pay off the that we here are going to eat our vege- tax shelters work, and I am not par- debt.’’ Less than a fourth have spoken tables even if they are Brussels sprouts ticularly proud of the fact that we fi- up in favor of tax reduction. before we have our dessert. This legis- nanced so many see-through buildings, There has been plenty of talk today lation passed will in essence make sure so many investments that had no real about the misuse of statistics. Well, let that we do not repeat the mistakes of economic value, but the people did not us take the Republican numbers. They care, the investors did not care, be- tell us that this tax cut will only cost the past. Mr. Chairman, I urge my colleagues cause they were not investing for the a mere $189 billion over 5 years. Well, if substantive value of the asset; they we had that $189 billion, we would have to support this bill. Mr. SABO. Mr. Chairman, I yield 2 were investing because of the tax bene- that much less deficit, but of course it fits. is not $189 billion. It is $630 billion over minutes to the distinguished gen- tleman from California [Mr. TUCKER]. Mr. Chairman, if this bill passes, we the next 10 years that we are going to will never have enacted tax shelters be adding to this deficit, and the claim Mr. TUCKER. Mr. Chairman, I thank the distinguished gentleman from Min- that are more open to abuse in the his- that it is being paid for is as frivolous tory of this Congress. There are two as this letter that has been circulated nesota for yielding. Mr. Chairman, so what is wrong with tax shelter areas here that will yield by the chairman of the Committee on billions of dollars in tax savings and the Budget. Surely there is great com- a $19 billion tax cut for individuals and yield no economic value to our econ- petition in this Congress for the silliest for businesses? Well, on the surface, omy. The neutral cost recovery sys- Dear Colleague letter, but this one that nothing. Except two crucial questions: tem, for example, if you are going to suggests we will pay for it with $100 Who and what? Who benefits from borrow money in the first place to pur- billion by eliminating duplication and these tax cuts, and what will be the chase an asset, put it in use for less waste of $24 billion is right up at the cost of these cuts? top. There is not any line item in the First, the wealthiest 1 percent will than 10 years, you will get back your budget for eliminating duplication and get 20 percent of the benefits. The value, because you will depreciate it, waste. wealthiest 5 percent will get 36 percent plus it will be indexed, plus you are It includes things like eliminating of the benefits. And the wealthiest 10 going to get 3.5 percent annual incre- the school-to-work program. percent will get almost half of the ben- ment. Mr. KASICH. Mr. Chairman, I yield 2 efits, 47 percent. Taxpayers making up Now, Mr. Chairman, what happens is minutes to the very distinguished gen- to $200,000 will get $11,000, while those we do not index interest costs for infla- tleman from the State of Michigan making less than $30,000 will receive a tion, so no one in their right mind will [Mr. UPTON]. paltry $124. put actual cash down. They will bor- This bill pays for these tax cuts to row. But there will be a built-in tax b 1815 the rich and corporations by cutting credit, a built-in tax shelter. Mr. UPTON. Mr. Chairman, I thank discretionary spending by $100 billion, It is too complex to be able to de- the gentleman from the Buckeye State. which has already been cut signifi- scribe it in a way that anyone in the Mr. Chairman, deficits do matter cantly. We are talking about housing, audience is going to fully understand. I They really do. Before I was in the and we are talking about applying cuts just have to tell you, Mr. Chairman, Congress, I worked for a President by already made in programs like school that we will rue the day that we pass the name of Ronald Reagan. I watched lunches. The cost of this tax cut over these kind of tax shelters. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4239 The other problem is in the tax cap- The most serious blow came 2 years ago Mr. SHADEGG. Mr. Chairman, I ital gains area. I did not even get into when a Supreme Court decision and subse- thank the gentleman for yielding. the tax shelter and capital gains. quent IRS action eliminated the home office Mr. Chairman, I might begin by not- Mr. Chairman, we have to learn from deduction for many. Under the Supreme ing my predecessor on the opposite side the past. We are going to repeat what Court's new interpretation of principal place of of the aisle who expressed his opposi- happened in the 1981 Tax Act if we are business a taxpayer who maintains a home of- tion to this legislation decided to vote not careful here. I wish Members would fice, but also performs important business re- 2 years ago to raise taxes on his con- read the entire tax bill before us. lated work outside the home is not likely to stituents by $1 billion, and now opposes Mr. KASICH. Mr. Chairman, I yield pass IRS scrutiny. a $500 tax credit that would go right to such time as he may consume to the This change effectively denies the deduction the parents of the 100,000 children in gentleman from Colorado [Mr. AL- to taxpayers who work out of their home but his district. That is the kind of rhet- LARD]. also spend time on the road. Those impacted oric which characterizes this debate (Mr. ALLARD asked and was given include sales representatives, caterers, teach- Mr. Chairman, I rise in support of permission to revise and extend his re- ers, computer repairers, doctors, veterinarians, this bill. I also listened to my col- marks.) house painters, consultants, personal trainers league, the gentleman from Utah [Mr. Mr. ALLARD. Mr. Chairman, I thank and many more. Even though these taxpayers ORTON] a few minutes ago who recently the gentleman for yielding time. may have no office other than their home, the had a son and said it would change his Mr. Chairman, I would just comment, work they perform will often deny them a de- life forever. He asked how would we ex- if this bill would pass, the average Col- duction. plain this bill to children. I explain it orado family would pay $1,534 in fewer According to the IRS, 1.6 million taxpayers to children because we are giving their taxes. claimed a home office tax deduction in 1991. parents a tax credit. His decision to While not all of these taxpayers were affected Mr. Chairman, I join in strong support of the vote against this bill is wrong. It is by the change, many will. Clearly, any tax- Contract With America tax relief package. It is dead wrong. payers who operate a business out of their time to give American families back some of As I mentioned, 2 years ago my col- home must review their tax situation. their hard earned money. Two years ago, leagues on the other side voted to raise There are many reasons why a broad home taxes. Now they said they cannot cut President Clinton raised our taxes, today the office tax deduction is important. The deduc- taxes. It is a consistent pattern on the Republicans fulfill their contract and cut taxes. tion is pro-family. It helps taxpayers pursue We are keeping our word. careers that enable them to spend more time other side. They believe in raising The American people want lower taxes, and with their children. The deduction helps cut taxes over and over again. less government spending. This package de- down on commuting and saves energy. The If we care about children, we must livers. Every nickel of this tax cut is paid for deduction recognizes the advances of tech- balance the budget, and this bill begins with spending cuts, and an additional $90 bil- nologyÐcomputer and telecommunication ad- that process. It enacts $100 billion in lion in spending cuts are applied to deficit re- vances mean that more and more individuals spending cuts. Not phony spending cuts duction. In May, we will return with a budget will be able to work for themselves and main- from a baseline going way up, but real resolution that builds on this legislation and tain a home office. dollar spending cuts. If you care about puts the government on a glide-path to a bal- The deduction is a boost to women and mi- children, we have got to also cut spend- anced budget by 2002. This will necessitate norities who are increasingly starting their own ing, because the tax burden on Ameri- us capping the rate of growth in spending at businesses. In fact, over 32 percent of all pro- ca’s families today drives spouses into 2 percent a year. The difference is that now prietorships are now owned by women entre- the workplace. Spouses who should be the Federal Government grows at over 5 per- preneurs, and Commerce Department data re- at home and who would like to be at cent a year. veals that 55 percent of these women busi- home taking care of their children are I would like to take the time to comment on ness owners operate their firms from home. forced to go to work. If you listen to one provisions in this tax bill that I am particu- Minorities are making similar advances. There their message, it is because of the prof- larly pleased with. That is the home office tax are now well over 1 million minority-owned ligate spending of my colleagues on the deduction. small businesses and a good number of these opposite side who have controlled this In the last Congress I introduced home of- are operated out of the home. Congress for 40 years and who built a fice deduction legislation which was cospon- Finally, the home office tax deduction helps $4.3 trillion deficit, who say we over- sored by 79 colleagues. This Congress I have our economy. It benefits small businesses and spent then, so we cannot cut taxes now. introduced H.R. 40, which has been cospon- entrepreneurs who develop new ideas, and Well, I say baloney. It is time to give sored by 82 of our colleagues. This legislation create jobs. Many of America's most important the American people a break. It is not is designed to restore the home office tax de- businesses originated out of a home office. our money, it is their money. I urge duction, which was narrowed a great deal by Small business is increasingly the engine Members to support this bill a 1993 Supreme Court decision. which drives our economy. With large firms Mr. SABO. Mr. Chairman, I yield 3 With April 15, fast approaching the last thing downsizing, entrepreneurs must pick up the minutes to the distinguished gen- most Americans want to think about is taxes. slack. The importance of this trend is dem- tleman from Maryland [Mr. MFUME]. In fact, the average American must now work onstrated by the job shift that occurred during Mr. MFUME. Mr. Chairman, Ringling the first 125 days of the year to pay all Fed- the slow recovery from the most recent reces- Brothers and Barnum & Bailey came to eral, State, and local taxes. sion. During the period of October 1991 to town today with an elaborate show of The bulk of the family tax bill consists of in- September 1992 large businesses cut 400,000 elephants and clowns on the Capitol come taxes, payroll taxes, and property taxes. jobs while small business created 178,000 Grounds. However, one factor which adds to the grow- new jobs. During the boom years of the But that does not come close to the ing tax bill of many self-employed and small 1980s, the vast majority of the 20 million new high wire act being performed today on business owners are the new rules governing jobs created were in the small business sec- the floor of the House by daredevils the home office tax deduction. tor. and acrobats who are attempting, Increasingly, it is the little guy who gets It is critical that recent assaults on the home through sleight of hand, blue smoke squeezed by the tax system. While large cor- office tax deduction be reversed. That is why and mirrors, to pull a rabbit out of porations can rent space and deduct office I introduced legislation to fully restore the de- their hats while dangling the American and virtually all other expenses, many tax- duction. I was pleased when similar language taxpayer in mid-air and calling this tax payers who work out of their home are no was included in the Contract With America, bill deficit reduction. longer able to deduct their office expenses. and now in this tax bill. With passage of this Federal workers in particular know Traditionally, the tax code has permitted in- bill today, we move one giant step closer to that this is the new ‘‘greatest show on dividuals who operate businesses within their restoring the home office tax deduction. earth.’’ homes to deduct a portion of the expenses re- Mr. KASICH. Mr. Chairman, I yield When a Federal employee accepts a lated to that home. However, over the past 20 11⁄2 minutes to the very distinguished position with the U.S. Government, he years Congress, the courts, and the IRS have gentleman from Arizona [Mr. or she is, in many respects, agreeing to reduced the scope and usefulness of the de- SHADEGG], a member of the Committee a contract. The employee agrees to duction. on the Budget. provide their knowledge, time, energy, H 4240 CONGRESSIONAL RECORD — HOUSE April 5, 1995 and a good part of their life, to the Na- Robin Hood in reverse. So listen close- and shall game in which they are shift- tion we all love. ly my friends, that giant sucking sound ing taxes. The Government, in return, agrees to that you will hear in a couple of Why are we talking about families? compensate them for their time and months will have nothing to do with They are not receiving it, because they provide for them in their retirement. NAFTA, but everything to do with are not getting the family tax cut. It is What we are effectively doing to cur- AFTA [Angry, Forgotten, Taxed Amer- not this bill. Forty-five percent of the rent Federal workers is changing the icans] who will say to the architects of benefits in the tax cuts in this bill go rules in the middle of the game. We are the Contract on America ‘‘Et Tu, Bru- to corporations in 10 years. The fact is, telling the 2 million of them that we tus,’’ I can’t believe what you say be- the remaining part that goes to indi- still expect the same quality and quan- cause I see what you do. viduals, the lion’s share of that, goes to tity of work, but for less compensation. Vote no on this misguided piece of the wealthy. We are telling them that despite the legislation and end the charade against You are not doing what you said you fact that they have helped to keep this the truth, perpetrated in the name of were going to do. It is the same story Nation going, we are not fulfilling our deficit reduction. through and through in this bill. You part of the bargain. Mr. KASICH. Mr. Chairman, I yield 1 deny you are proposing the policy, It is generally accepted that this leg- minute to the very distinguished gen- deny you are passing the policy, and islation is unfair to Federal employees; tleman from Oklahoma [Mr. LARGENT], deny the policy after it is enacted. Members on both sides of the aisle have a member of the Committee on the Mr. Chairman, it does not take any said as much. Budget. courage to stand up here and vote for Yet the Republican Party has cir- Mr. LARGENT. Mr. Chairman, I tax giveaways and then put the burden cumvented the committee system and thank the gentleman for yielding. on someone else to do the cutting. Tak- included the Federal employee pension Mr. Chairman, in this war of words ing away kids lunches, doing things of provision in this legislation. What a and charts and ideas, we have heard a this nature. That does not take cour- dangerous, shameful and dastardly lot about the tax consequences and the age. deed. tax burden on the average family. I It took guts 2 years ago to stand here For the average Federal employee would just like to begin by saying that and say, we have to pay if we are going earning $40,000 a year this proposal will those families that are represented by to deal with the deficit. It is tough impose an additional $1,000 in taxes, hard-working parents trying to make work. But you are not willing to do disguised as an increase in the con- ends meet for their children are any- that. You just want to go down the tribution to their pension. thing but average. They are excep- easy road in terms of this and pass this More than half of the benefits from tional. In fact, they are outstanding, tax cut and leave the mess for the the tax package before us will go to and that is why we need to pass this American people. families with incomes between $100,000 tax reduction and this spending reduc- I think this bill ought to be defeated, and $200,000 a year. Two hundred thou- tion bill today. Mr. Chairman. sand dollars, is that middle-class? The $500 tax credit is all about allow- Mr. Chairman, today we had the Ringling And please do not tell me that the ing those families, those parents, to Brothers Circus on the Capitol Grounds. I money Federal employees are losing keep their hard-earned money to make would have thought that some of our Repub- will go towards deficit reduction; be- the ends meet for their children. Stud- lican colleagues, would have run away and cause the fact of the matter is that ies reveal that in 1960 families, parents, joined the circus; it has everything they like: this legislation actually adds to the spent an average of 30 hours a week in elephants, clowns, and they could have been deficit. personal time with their children. In hired to do their bait and switch trick on mid- If it becomes law, Congress will be 1990, 30 years later, those same parents dle-income family tax cuts; the old pea and forced to find $1.6 trillion in extra spent an average of 17 hours in per- shell game, in which middle-income families budget cuts or revenue increases over sonal time with their children. get peanuts and in 10 years 45 percentÐover the next 7 years in order to balance the I think those numbers correlate with $300 billionÐof the tax benefits go to cor- budget. the decline in the moral values that we porate AmericaÐbig business continuing to Federal employees are not extrava- see in our youth culture today. Parents shift the tax burden onto individuals and fami- gant millionaires. They are the hard are not spending the same amount of lies. working men and women. time with their children. Why, you Middle-income America gets the shaft when The 2 million Federal employees, might ask and should ask? In 1950 the the wealthy families receive over 53 percent of who have worked hard for years, de- average family gave 2 percent of their the individual tax breaksÐthe lion's shareÐ serve better treatment than this. hard-earned money to the Federal Gov- the Republican tax measure. This might get They deserve our thanks. They de- ernment; in 1993, that figure was 24.5 applause as a trick, but this pea and shell, Re- serve the cost of living increases which percent. Why are parents not able to publican shift and shaft of middle-income fami- are usually denied or delayed. They de- spend as much time with their children lies merits a no vote in the Congress today serve to be free from unwarranted fur- passing on those values? Because they and tomorrow! loughs, and they deserve to know that are having to work to send their money Mr. Chairman, I want to join with many of they can go to sleep at night without to Washington, DC. That is wrong. my colleagues in opposing this ill-conceived, worrying about what Congress or the Mr. Chairman, this tax bill that gives poorly timed legislation. For big business and Republican party will do next to renege relief to hard working parents to help the very rich this bill may very well be the on their promises to them. raise their children is the right thing crown jewel of the Republican political agen- Mr. Chairman, while Federal employ- to do. da, but for the working families who I rep- ees are the biggest losers under this resent this Republican legislation is a rhine- b bill, I don’t want to belittle for a 1830 stone, a phony gemstone. This is a tax shift minute the negative impact this bill Mr. SABO. Mr. Chairman, I yield 1 bill, placing, over the next 10 years, more bur- will have on our nation and its deficit. minute to the distinguished gentleman den on individuals and less on the big busi- This legislation will increase the def- from Minnesota [Mr. VENTO]. ness corporations. In fact corporations receive icit. It rewards the wealthy and pun- (Mr. VENTO asked and was given nearly 50 percent of the total tax cuts and ishes the middle-class and working permission to revise and extend his re- today the corporations and big business pay Americans who will feel the brunt of marks.) half as much as they did in 1965. This tax the spending cuts. And, it demoralizes Mr. VENTO. Mr. Chairman, our col- shafts the middle-income families who are the Federal employees who are nec- league just aptly mentioned, we had promised tax breaks. This Republican bill essary to make this Government run. the circus on the grounds here, and I gives those breaks to the affluentÐthe top in- In the end the difference between last thought probably a lot of the Repub- come 12 percent get 52 percent of this GOP year’s Republicans and this year’s Re- licans are going to run away with the bill tax breaks. The Republican bill is simply a publicans is Tweedle Dee and Tweedle circus because of everything they tax shift and a tax shaft for American working Dum. The party that gave us Voodoo want: Clowns, elephants, and they families. The rich get richer and working fami- economics is now about to give us could play they could play their pea lies get Republican tax cut rhetoric. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4241 There are clear winners and losers under cial statusÐnot without problems or difficulty Some on the other side are trying to the Republican bill: Family households earning but certainly not following an easy Republican convince the American people that over $200,000 will receive an average tax cut policy path. they can have a free lunch, that we can of $11,266 per year while working families The hundred days are ending and I want to educate our children, provide for our earning between $30,000 and $50,000 will re- welcome the American people to the virtual re- seniors, deal with the critical needs ceive an average annual cut of $569. Touted ality of the Republican NEWT Congress. It's a facing our nation, but we do not have as a family friendly bill, the centerpiece of this world where you deny your proposing the pol- to pay for it. legislation, the $500 child tax credit, does not icy, deny your passing the policy, and deny The reality is that we do have to pay help those families with 34 percent of our chil- the policy after it's enacted. The facts are they and we will pay one way or the other. dren. Over 24 million children are denied this will: Take the kid's lunch and education; make The choices that we make provide for tax credit, since their families' income would American workers' jobs pay less at a greater us the opportunity to reap the reward, not be high enough for the credit to apply. risk to their health and safety; cut the retire- if we make the right choice, or to suf- While many children will not benefit from this ment and Medicare benefits for seniors who fer the consequences, if we make the tax bill, these children will pay the priceÐ started the so-called ``class warfare''Ðwell the wrong choice. today and tomorrowÐthe loss of school GOP claimed that this tax measure was a They are trying to appeal to the lunches, reductions in college loans and a 10 middle income tax benefitÐwhat has been what they, I guess, consider the selfish year, $630 billion reduction in revenues to add pointed out repeatedly is that this measure tax greed of Americans who want to hold to the Federal deficit. Welcome to the Repub- breaks go to big corporations and the affluent onto their dollars. It is as if dad would lican idea of fairness, the shift and shaft tax families. come home and say, rather than paying Contract on America. I urge my colleagues to reject this unfair for tuition and books for my children, Many of my Republican colleagues talk policy and to just say no to the Republican tax I will keep a few dollars in my wallet. about this legislation as the reflection of the shift and shaft policy of more tax breaks for Rather than to provide for my parents people's voice in November. I do agree that the rich and special interests at the expense who have made life possible for me, I the American people are angry. But they of the middle class. This is one main course will keep a few more dollars in my weren't angry about the rich not paying their entree too many in the force fed Republican pockets. Rather than to feed the chil- fair share. The American people weren't angry political hundred day march. dren in the household, I will keep some that the inheritance exemption is only Mr. KASICH. Mr. Chairman, I yield 1 more dollars in my pocket. $600,000. The American people certainly are minute to the very distinguished gen- This group of cowboys that are here not mad because corporations now must pay tleman from Michigan [Mr. SMITH]. now, this wagon train of theirs is one an alternative minimum tax. (Mr. SMITH of Michigan asked and that disposes of the young and the old But the American people will be yet more was given permission to revise and ex- and the disabled in hopes that some- angry when they read the fine print of this Re- tend his remarks.) how they can have a more fruitful and publican contract. They will be angry when Mr. SMITH of Michigan. Mr. Chair- more purposeful life. That is not true, they learn that the American family rhetoric man, this bill does two things. It cuts and we are going to find out again that has been the vehicle to deliver tax breaks that spending and it cuts taxes. I think we we cannot have a free lunch in this primarily benefit the top 10 percent of Ameri- need to ask ourselves the question, country. cans. Their anger will be compounded when what is going to make our commu- Mr. KASICH. Mr. Chairman, I yield 1 they understand that the price of their $500 nities in this country a better place to minute to the very distinguished gen- tax credit will be megatax breaks for big busi- live and work and raise our kids? tleman from California [Mr. BAKER]. ness including a major loophole that will allow No. 1, it is to leave some of that (Mr. BAKER of California asked and some corporate giants to get off without pay- hard-earned money in the pockets of was given permission to revise and ex- ing one cent in taxes, while the middle class the people that made it rather than tend his remarks.) gets the bill for the Republicans reneging on give it to the Federal Government. A Mr. BAKER of California. Mr. Chair- their children's education from school lunches lot of discussion about who gets the ad- man, the previous speaker has 85,000 to college grants and loans. vantages. If you happen to be a family children in his district, just to keep Mr. Chairman, the advocates point to the that makes less than $25,000, you get a count. And he will get, if this bill $189 billion in tax breaks over the first 5 100 percent tax break. You pay zero. If passes, to keep $42 million in his dis- years, but this measure is back loaded be- you are making $30,000, you get 48 per- trict of their hard-earned money. cause in 10 years revenue is reduced $630 cent of your taxes reduced. You see the You have seen enough numbers and billion. declining balance? If you make over enough charts. Let us cut to the chase. The majority G.O.P. haven't put forth many $200,000, you only get a 2-percent reduc- The reason we need capital gains tax of the cuts and reductions to achieve such tion in your taxes. relief, the reason we need alternative savings and to offset and pay for this revenue The other thing is spending cuts. We minimum tax relief, the reason we loss, those limited cuts that have been ad- have built over the last 40 years a $5 need the IRA tax relief is because you vanced are grossly unfair, unworkable, mean- trillion debt that we are passing onto do not have the courage to cut $213 bil- spiritedÐbut none the less most of the Repub- our kids and our grandkids. This starts lion from this budget. lican cuts are masked in budget ceilings not to cut spending. Last year we had a 1-percent cut in specific and certainly not achieved. I know some of those programs are the budget. The Democratic side of the The Republicans said they would cut spend- good. So it is easy for the other side to aisle cheered when it was defeated by 1 ing first but they have reneged on that today. say, do not cut this program, do not percent by seven votes. You cheered Mr. Chairman, it doesn't take much talent cut this program. Well, if we care when the Penny-Kasich bipartisan cut and certainly little courage to pass massive about spending, if we care about our fu- was defeated. tax cuts spreading around the tax giveaways ture, if we care about the $339 billion This year we had a $17 billion rescis- to every special interest group on the map. No interest that we are going to be paying sion program. That is 8 percent of the it doesn't take much thought to give away the this year, one quarter of all revenues budget deficit this year. You could not store Republican style and that is what this tax coming into the government, we have make the trip. You gave us the rhet- bill does: provides instant gratification and a got to cut spending. oric about the children and hurting the long-term economic bellyache. This bill does it. elderly and the same argument you are The anti-Federal Government rhetoric has Mr. SABO. Mr. Chairman, I yield 1 hearing today. led to a tax cut policy that will disable the Fed- minute to the distinguished gentleman I will tell you why we are doing it. eral Government, render the national govern- from Pennsylvania [Mr. FATTAH]. Because we are going to grow the econ- ment unable to responsibly respond to the Mr. FATTAH. Mr. Chairman, I thank omy. The only way to balance this needs of our Nation. This tax policy path cou- the distinguished ranking member for budget is to increase the economy as pled with even the limited reductions in spend- yielding time to me. well as hold down the growth rate in ing advanced this session demonstrate a re- I think it was Franklin Delano Roo- Government spending. We are going to treat and abandonment of our responsibilities sevelt who said that paying taxes, after do them both. This is the first step in and the people we represent. Our Nation that all, was the price we pay for living in a the road of 1,000 miles to save our has achieved unparalleled economic and so- civilized society. grandchildren. H 4242 CONGRESSIONAL RECORD — HOUSE April 5, 1995 That child that was born here today civilization. Members, if this is renew- Remember, he promised he would be in 1995 will spend $187,000 on interest on ing American civilization and the val- a new Democrat. He would reinvent the national debt during his lifetime. ues impressed in this bill, I get nervous government. He was not going to raise Please vote aye and save America. about this country. Because the values taxes on us. That is what he promised. Mr. KASICH. Mr. Chairman, I yield 1 in this bill represent not the best of And he took power, and he got bought minute to the gentleman from Massa- American ideals but some of the worst. off by the special interests who run chusetts [Mr. TORKILDSEN]. It is, indeed, a unique Robinhood bill this town, who love the status quo, who Mr. TORKILDSEN. Mr. Chairman, I that takes from the poorest to give pri- love big government, who love big thank the distinguished chairman of marily tax benefits to the rich. Over Washington, who love bureaucracy and the Committee on the Budget for yield- half the benefits go to people with in- who hate change. ing time to me. comes over $100,000. b 1845 Mr. Chairman, I rise today in support We hear a great deal about the chil- of real deficit reduction and long-over- dren’s tax credit. By 2005, that is less Guess what? The American people due tax relief for American families. than 25 percent of this bill. All the had their say last November. They said Last week I was one of those mem- other things for the most affluent in no, no, a thousand times no. For the bers with genuine concerns about this this country explode in cost. And who first time in 40 years they put the Re- package of tax cuts. One of the primary pays? The poor, children, reduced nu- publicans in charge of the House. For reasons I came to Washington in 1992 trition programs, women, reduced the first time in 40 years, they rejected was to help reign in the budget deficit health programs, poor seniors, low-in- that plan of the status quo. which has crippled our economy and come housing cut back, low-income What are Republicans talking about? threatens our children’s economic fu- fuel assistance cut back, all to pay for Let us talk about some of our Federal ture. this tax cut for the most affluent in programs and how Republicans want to I was one of 23 members to support our society, at the same time that we downsize. linking these much-needed tax cuts are digging the deficit hole deeper. We have 163 job training programs in with a specific plan to eliminate the It is true this bill is paid for over a the Federal Government. I put this to- deficit in 7 years. This package con- five-year period of time. But by the gether in about five minutes. This is tains language to guarantee deficit re- year 2000, it increases the deficit by $12 just a short list. There are 23 separate duction and deficit elimination, and I programs to prevent child abuse, eight billion. It does not reduce it. It in- strongly support its passage. separate programs on child care, 42 sep- creases it in the year 2001, the year In 1993, I opposed the Clinton tax in- arate programs for health professions 2002. So all the speeches you hear about crease which unfairly targeted small education, 300 separate economic devel- deficit reduction and this bill, it has business and our senior citizens. As opment programs, nine agencies pro- nothing to do with deficit reduction. It chairman of the Small Business Sub- moting trade, 71 departments and agen- just simply digs a hole deeper and committee on Government Programs, I cies duplicating the functions of Com- makes the job more difficult, requiring applaud language in this bill that will merce. more draconian cuts, I am sure tar- reinstate the home office deduction for Guess what, Mr. Speaker? Our tax- geted at the same people who have those who operate their business from payers who work hard every day are been targeted already. their home. paying for this duplication. Do Mem- This Tax Relief Act also rolls back So, Members, we have a real choice bers know why it goes on? Because it is the Clinton tax increase on Social Se- today. To some degree it is about num- the people’s money, not their own. It is curity benefits and raises the senior bers, about a deficit that goes up under time for it to be stopped. citizen earning limit. this bill, about dollars that flow to the Let me suggest what we also have The problem with government is not most affluent in our society who prof- done in the area of our social program: that it taxes people too little, the prob- ited the most from our economy over welfare reform. Do Members know lem is still that the government taxes the last 20, 25 years. But it is ulti- what people in America say about wel- and spends too much. mately about values, about how we fare reform? The say it does not work, This bill will hold this and future want to structure government, how we it creates dependency, fosters so many Congress’ accountable on deficit reduc- want to pay for it, who we want to re- of the wrong things. They want to help tion. For deficit reduction, for a bal- ward in our tax system. people who need help. That is the old anced budget and for tax relief, I urge Clearly, this is a bill that takes from American Judeo-Christian principle: my colleagues to vote yes on this bill. the most vulnerable to help the most help those who are in need. However, Mr. SABO. Mr. Chairman, I yield my- affluent. let me also suggest that it is wrong to self the balance of my time. I urge a ‘‘no’’ vote. help those who do not need to be The CHAIRMAN. The gentleman The CHAIRMAN. The gentleman helped. from Minnesota [Mr. SABO] is recog- from Ohio [Mr. KASICH] is recognized The Republicans have finally passed nized for 4 minutes. for 41⁄2 minutes. a welfare program through this House Mr. SABO. Mr. Chairman, we have Mr. KASICH. Mr. Chairman, I yield that the American people have been heard lots of predictions today. Just myself the balance of my time. calling for for 25 years. Let me suggest, let me remind Members that in August Mr. Chairman, first thing I want to in the area of cash welfare, what does 1993, the now Speaker, Mr. GINGRICH, say is that I am not angered at all. I the Republican plan do? It increases had this to say when we passed the am just, frankly, shocked at some of spending over the next 5 years. Child President’s economic program. the rhetoric that has come from the care goes up. Child protection goes up. ‘‘I believe this will lead to a recession other side—I am not referring nec- School nutrition goes up. Family nu- next year.’’ NEWT GINGRICH, August essarily to the rhetoric of the gen- trition goes up. SSI goes up. Food 1993. tleman from Minnesota—bragging stamps go up. What has happened? Employment is about the economic plan that passed in What is the total? We go from $81 bil- up. Unemployment is down. Inflation is 1993. lion to $100 billion in spending to help low. Growth is strong. Productivity is We had $250 billion worth of tax in- the poor under the Republican plan. improving. Factories are operating at creases and higher spending. And do And what the liberals in this Congress high rates. Investment is booming. you know what, aside from all that, say is, ‘‘It just still isn’t enough, and The Members who bring this bill to aside from our opinion and our charts we have to take more from taxpayers.’’ us today were dead wrong in August of and our numbers, we had a referendum, Forget it. We are reinventing the sys- 1993 in foreseeing the future. And what we had a referendum on the president’s tem, we are imposing discipline, and we they bring to us today is deeply flawed. program. are responding to what the American I am sure you will hear how this bill The American people last November people want in this country. is amazing. Well, I find it amazing also. had a chance to go to the polls and cast Mr. Chairman, let us talk about this We hear the new speaker, Speaker a vote on what they thought about President’s budget and what we have GINGRICH, talk of renewing American President Clinton’s economic plan. out here today. We have $190 billion April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4243 worth of tax relief. For who? If you tired from the current $11,000 to $30,000 able corporations paid little or no income tax. have children, you are going to get a over 5 years. Many of our seniors put Some of these corporations even received re- $500 tax credit. Why? Because you can away some money for their retirement, fundable tax credits. For example, AT&T made spend the money better on your kids only to find inflation has made it so $24.9 billion in profits from 1982±1985. How- than the bureaucrats can who are that they must work. They want to ever, their team of tax lawyers wrangled a re- camped in all these buildings across work, they are physically able to work, bate of $636 million from the U.S. Treasury. this town. That is part of what we want but we put this penalty on if they work The alternative minimum tax was established to do. and earn more than $11,000. to stop large corporations from abusing the tax Secondly, if you are poor, we want to This is a good bill. Let us get on the code. A repeal of this system would represent give risk incentives for people to invest bandwagon and let us support it. a government subsidy of the Nation's largest and create jobs so your kids can go to Mr. Chairman, I reserve the balance corporations and cost the Treasury $17 billion. school, they can have a better life, and of my time. I can't support that. they can become president of the bank Mr. DINGELL. Mr. Chairman, I yield This Nation does need tax relief for working or President of the United States, any such time as he may consume to the Americans and small businesses. I examine man or woman. What we do is we have gentleman from Oregon [Mr. DEFAZIO]. tax proposals to see whether working Ameri- deficit reduction to the tune of $27 bil- (Mr. DEFAZIO asked and was given lion. permission to revise and extend his re- cans would benefit. First, does it address the The President’s budget that he sent marks.) inequities of the last two decades when middle this year, shame on what he sent us, Mr. DEFAZIO. Mr. Chairman, I stand income people paid the largest share of in- increases the deficit by $31 billion. in opposition to this Republican tax creases? Second, if the proposal includes a What have Republicans done? We have giveaway. revenue decrease, does it also include a cor- cut taxes. We have provided relief. We Mr. Chairman, the legislation before us will responding revenue increase to ensure that it have made a down payment on the defi- not provide meaningful tax relief for the middle doesn't increase the federal debt? For exam- cit. And Members have seen nothing class, but instead is merely a giveaway for ple, I would support cutting taxes for working yet, because in May we are going to corporate American and the Nation's wealthi- Americans, while also increasing the share of complete the number two job, which is est taxpayers. Most importantly, the Repub- taxes paid by foreign multinational corpora- basically this: balance the Federal licans have not come up with enough revenue tions, which enjoyed substantial windfalls in budget. Just wait. The American peo- to pay for the more than $600 billion shortfall the 1980's. ple are on our side. over the next ten years. Our first responsibility One of my colleagues tried to put forward The CHAIRMAN. All time has ex- is to get the deficit under control, not hand out legislation this week to end special tax breaks pired under the control of the Commit- politically popular goodies for multibillion dollar for multinational corporations and foreign in- tee on the Budget. corporations and families that make more than vestors. Unfortunately, the Republicans did not Under the rule, 1 hour of general de- $200,000 a year. allow us to vote on the language by Rep- bate remains, to be controlled by the Our country now owes more than $4.6 tril- resentative EVANS. We will have no oppor- Committee on Commerce. lion, and that figure is growing fast. The inter- tunity to save $24 billion in revenue by closing The gentleman from Virginia [Mr. est payment on this debt will exceed $200 bil- loopholes and special tax breaks for these for- BLILEY] will control 30 minutes, and lion this year. Worst of all, we're adding to that eign investors. the gentleman from Michigan [Mr. DIN- debt at the rate of $4 billion every single I agree, we have got to encourage savings GELL] will control 30 minutes. week. Our first priority should be to reduce the and investment in this country. I would support The Chair recognizes the gentleman deficit, not engage in politics-as-usual. an equitable capital gains tax cut that really from Virginia, [Mr. BLILEY]. I must admit, the Republicans have made encouraged long-term, productive investment Mr. BLILEY. Mr. Chairman, I yield some attempts to pay for their tax giveaway. and job creation in the United States. That's myself 2 minutes. Tax cuts would be paid for by cutting $110 bil- not the case with the Republican proposal, (Mr. BLILEY asked and was given lion out of a number of domestic programs, in- which established no limits on the types of in- permission to revise and extend his re- cluding WIC, food stamps and other Federal vestments, nor provided adequate incentives marks.) nutrition programs, Medicare, and welfare for for longer term investment. Only about 25 per- Mr. BLILEY. Mr. Chairman, this is a legal immigrants in the United States. In addi- cent of this multibillion dollar tax break would good bill. We all should support it. tion, Federal employees would be required to go to families earning less than $150,000 a In my home town of Richmond, I increase their pension fund contributions. The have seen how hard it is for young fam- increase is expected to cost a Federal em- yearÐthe same families who were hit hard by ilies, almost impossible for them to ployee earning $30,000 a year an additional the tax changes of the 1980's. Most families own their own homes. They are work- $750 in taxes each year. would get no benefit at all. ing two jobs, and they are still living And what does the Republican's tax plan The proposed capital gains tax cut would from paycheck to paycheck. Things pay for? Not relief for the average families. not distinguish between the rapidly growing like a new car, a new appliance, a short The Republican majority tax cut proposals world of high stakes gambling in derivatives, vacation with the kids are out of reach. would give only a nod toward tax relief for and other speculative investments, versus pro- It is almost impossible for them to get middle income families. In the Republican ductive investment. When I think of how such together the down payment for a first plan, a family would receive the so-called fam- a tax cut could truly benefit working Ameri- home. ily tax breaks if they earn between $20,000 cans, I think of the Oregon family who realized The culprit is not that they are irre- and $250,000Ðthose who earn less than the fruits of 35 years investment in a tree sponsible. The culprit is the Federal $20,000 would receive nothing. farm. Shouldn't the tax codes encourage this Government that was soaking up their When you take the other tax breaks into ac- type of investment as opposed to derivative money like a sponge. count, the average family doesn't do much speculation on Wall Street? Unfortunately, the In my own district, there are 127,941 better, but the rich would see a windfall. Fami- Republican proposal does not discriminate be- children whose families will be eligible lies making more than $200,000 would see tween productive investment and speculation. for this tax cut. Altogether, it will more than $11,000. Let me put that into per- So at the end of the Republican majority's bring almost $64 million into our com- spective. Average families may see enough of first hundred days. Here's the heart of the Re- munity every single year. a tax break to pay for a tank of gas each publican agenda. Take from the middle class Let us put an end to this class war- month. However, if you make more than and the needy, and give to the rich. It is trickle fare demagoguery. Fully 75 percent of $200,000, your tax break would be enough to down economics all over again, and we know this money will go to families with buy a new BMW. That is right, the rich will get how well that worked in the 1980's. combined incomes, that is mother and enough of a tax rebate for the monthly pay- Mr. DINGELL. Mr. Chairman, I yield father combined, of $75,000 or less. Yes, ments on a new luxury car. such time as she may consume to the 75 percent will go to families with I am particularly outraged over the Repub- gentlewoman from Missouri [Ms. $75,000 or less income. lican proposal to do away with the alternative MCCARTHY]. Another provision in this bill re- minimum tax for profitable corporations. There (Ms. MCCARTHY asked and was moves, or at least raises the cap, on was a huge public outcry during the early given permission to revise and extend earnings for senior citizens who are re- 1980's when many were very large and profit- her remarks. H 4244 CONGRESSIONAL RECORD — HOUSE April 5, 1995

Ms. MCCARTHY. Mr. Chairman, I rise in op- body recently passed legislation to shift enor- shifting costs onto employers, and reducing position to H.R. 1215, the Contract With Amer- mous Federal responsibilities back to the payments to providers. Let us be straight with ica Tax Relief Act of 1995. However, before I States. We are now telling the States in this the elderly about what would happen under enumerate the concerns I have with the bill, legislation that you will have even fewer dol- this bill. You will pay more in health insurance let me make a few general remarks about tax lars to carry out those obligations. premiums to finance this tax cut. legislation and the process that brought this For these, and many other reasons, I can- With respect to the extension of competitive bill to the floor for consideration. not and will not support this legislation. Put bidding authority for radio licenses, Commerce As the former chairperson of the Ways and simply, the Republican tax measure is not Committee Democrats objected to the fact that Means Committee in the Missouri House of sound tax or fiscal policy. the legislation was approved without a hearing Representatives, I take great interest in the Mr. DINGELL. Mr. Chairman, I yield or any attempt to determine whether, in fact, tax legislation before the House today and myself 2 minutes. competitive bidding authority ought to be ex- bring considerable knowledge and experience Mr. Chairman, it is all very simple. tended. For example, during the markup both in crafting bipartisan tax legislation. However, This is a Robin Hood in reverse tax Republican and Democratic Members ex- if I have one lament about moving from the proposal. It is part of a package which pressed concern about the manner in which state legislature to the national body, espe- is geared to help the rich and to hurt the Commission was utilizing this authority cially as we enter the denouement of the con- the poor. If we look, we will find that with respect to licenses in the Specialized Mo- tract period, it is the intense level of partisan- better than 50 percent of the tax reduc- bile Radio Service [SMR]. These concerns ship that exists in this body when it comes to tions are going to go to those who earn should have been vented during an oversight more than $100,000 a year, the top 1 per- formulating policy. Here was a prime oppor- hearing and not raised for the first time at a cent of the population of the country. tunity, that has now been lost, for Democrats markup. and Republicans to work together on impor- Beyond that, it is going to cut pro- Ironically, during the same week that H.R. tant tax reform issues. Because Republicans grams which are important to people. 1218 was introduced and approved by the insisted on keeping to a political schedule in- It is going to cut the school lunch pro- Committee, a court issued a stay to prevent stead of working to craft sound tax policy, they gram. It is a bill which will cut the the Commission from using its competitive bid- lost the opportunity to work with me and other Women, Infants, and Children program. ding authority to issue licenses for one group Democrats who favor tax reform. It is going to eliminate one of the most This is not to say that I opposed all the pro- successful nutrition programs in the of licenses for broadband PCS. These are visions in this tax bill. In fact, there are a good history of this country. blocks of frequencies reserved for ``Des- many provisions in the bill that I favor. The It is a package that is going to cut ignated Entities'', including small businesses, provisions on IRA's, capital gains and other school loans, college loans, college firms owned by minorities and women, and tax reforms notwithstanding, I believe this leg- scholarships, and summer jobs. When small telephone companies. islation is fatally flawed because it turns its we read this against the rest of the Many of our colleagues support the ``Des- back on the most compelling issue facing this Contract on America, we will find out ignated Entity'' approach adopted by the Com- Congress, which is the need for deficit reduc- why this proposal should be rejected. mission. No matter what our position, how- tion. The Republican attitude regarding deficit Mr. Chairman, I urge my colleagues ever, it is irresponsible to approve H.R. 1218, reduction ignores the message elicited at the to reject this tax cut. It is unfair. I thereby blessing the Commission's ``Des- town hall meetings that were held throughout urge my colleagues to wait and to sup- ignated Entity'' policies, without conducting the the country earlier this year by Mr. Kasich and port the Democratic alternative, which necessary oversight so as to determine wheth- the Budget Committee, where people over- will be a better package, fairer to ev- er the underlying statute ought to be modified whelmingly expressed their support for deficit eryone. It is going to strike, among or in some way clarified. reduction over tax cuts. Adding an additional other things in this package, the re- Similarly, many of us want to privatize the $660 billion over 10 years to the deficit, when tirement taxes and the benefit cuts U.S. Uranium Enrichment Corporation. We we currently face annual budget deficits of that Civil Service employees have made privatization part of the 1992 energy $200 billion, is not in line with the commitment worked for for a lifetime, that increase strategy legislation. However, in the majority's I made to balance the budget, nor in line with their costs solely to benefit the well- rush to generate revenues to finance tax cuts, the wishes of the people in my district. to-do. the committee allowed itself to be swept up in Any change to the tax code produces win- Mr. Chairman, the Medicare, Energy, and a hasty and imprudent process. As a result, ners and losers. What is troubling and what Telecommunications provisions of this bill re- the committee and the Congress are largely in has been made clear throughout this debate ported by the Commerce Committee exemplify the dark as to whether the American taxpayer on the items in the Republican contract is who the tangled and deceptive nature of the meas- will realize a fair return from the sale of the the majority has elected to help and who they ure before the House. Corporation. have elected to disregard. As I have stated, I This bill's title falsely advertises tax fairness No hearing was held on the underlying bill. am not opposed to certain tax reforms. I have, and deficit reduction. The bill accomplishes In fact, Chairman SCHAEFER's questions fol- however, serious problems with the way the neither. Nothing in the title of the bill adver- lowing a February 24 oversight hearing on the tax cuts in this bill are structured and who the tises the fact that it imposes $10 billion in new Corporation have not been answered. These majority relies on to pay for their tax cuts. For costs on Medicare beneficiaries, providers, outstanding matters include applications of the example, the Republican majority decided to and employers. Nor does it mention a hastily antitrust laws, rights to sensitive technology, cut child nutrition programs, loans for college drawn sale of a government asset, the Ura- and disposition of recycled Soviet weapons students and programs for the elderly, as well nium Enrichment Corporation. materials under a contract the Corporation en- as increase taxes on Federal employees, to In a most curious piece of theater, the Com- tered into in 1994, including the difficult issue pay for tax cuts that mainly accrue to the top merce Committee was summoned to a mark- of matched sales. wage earners in this country. up a few weeks ago to consider this assort- My colleagues on the other side have re- It is worth noting that many conscientious ment of unrelated health, energy and commu- stored to an odd rhetorical gesture to justify Republicans (106) also made clear their oppo- nications measures. some of these cuts: the cuts, they argue, are sition to the way the tax bill was structured In a Congress filled with surprises and irreg- in President Clinton's budget. We should all when they signed a letter to the Republican ular procedures, were we getting a jump on note the irony of Republicans taking such leadership stating that providing tax credits to reconciliation and beginning the process of comfort in the recommendations of a Presi- families earning up to $250,000 was not advis- deficit reduction? My hopes were dashed. In dent they have so pilloried. The President, to able. In addition, it is estimated that 70 per- the markup, Republicans made clear that we his credit, has laid down a comprehensive cent of the tax savings from the capital gains were not meeting for deficit reduction, when budget proposal. Republicans have not. The cut will go to those making $100,000 or more. every Republican voted against our amend- President has expressed opposition to putting Another concern is the impact this legisla- ments to devote the savings from almost $10 further burdens on the elderly. Republicans tion will have on State revenues. Because of billion in Medicare cuts, from extended auc- seem to welcome the opportunity to impose linkages between the Federal and State tax tions of spectrum licenses and from the sale them. systems, the State of Missouri is estimated to of the uranium enrichment corporation exclu- This legislation is poorly conceived and lose $1.2 billion in revenue over the next 10 sively to deficit reduction. hastily drawn. I urge its defeat. years. This potential revenue lose could leave In Medicare, the Republicans here propose Mr. Chairman, I reserve the balance an enormous budget hole for Missouri. This raising premiums as much as $120 per year, of my time. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4245 Mr. BLILEY. Mr. Chairman, I yield 3 san consensus health reform and other lieve that to climb the ladder of oppor- minutes to the gentleman from Tampa, legislation in the previous Congress tunity you must pull someone else FL [Mr. BILIRAKIS], chairman of the that sought to establish similar incen- down. Subcommittee on Health and Environ- tives, I am particularly proud of these In the Democrats’ America, bureau- ment of the Committee on Commerce. provisions. crats should make key decisions for (Mr. BILIRAKIS asked and was given Everyone is concerned with the high families, the government will grow and permission to revise and extend his re- cost of long-term care insurance, and taxpayers will pay more and more. Our marks.) with more than 7 million elderly Amer- vision of America is different. Our key Mr. BILIRAKIS. Mr. Chairman, I icans in need of long-term care today, goal is to empower families, not bu- would like to use my time to address these incentives certainly belong in reaucrats. To do this we cut spending three of the provisions of this legisla- this package. and let taxpayers keep more of their tion that are of particular importance Mr. Chairman, I strongly encourage all of hard-earned tax dollars. In so doing to- to my constituents: the increase in the my colleagues in the House to reach out to gether, all Americans can renew the Social Security earnings test, the re- America's seniors today by voting for and American dream of hope and oppor- peal of the Clinton administration’s passing this legislation. tunity. Mr. DINGELL. Mr. Chairman, I yield tax increases on Social Security bene- Now, for the past 40 years, Democrats 2 minutes to the distinguished gen- fits, and tax incentives for private have fulfilled their vision of this coun- tleman from New Jersey [Mr. long-term care insurance. try. In 1950 Washington took 5 percent 1 PALLONE]. In 1980, Florida had in excess of 1 ⁄2 of family income. Today government Mr. PALLONE. Mr. Chairman, I want million individuals aged 65 or older. In takes a full 40 percent. As a matter of 2000, more than 3 million Florida resi- to address my remarks to the aspect of this legislation that deals with the fact, the 40 percent the government dents will be 65 or older. takes in taxes is more than the family Florida is first in the Nation in per- U.S. Enrichment Corp. I am opposed to the use of the funds for the sale of the budgets for food, clothing, and shelter centage of the population 65 years and in this Nation combined. Tonight we older—and by this measure, my district U.S. Enrichment Corp. for the tax cut plan. scale back Washington’s share and we is one of the oldest in the country. increase the share the American family Thus, the three provisions of this bill The U.S. Enrichment Corp. took over keeps. that I am emphasizing today are very the Department of Energy’s uranium How do we do it? For example, the important to my constituents. enrichment program in July 1993. $500 per child tax credit puts a quarter First, as a long-time supporter of Under the Energy Policy Act of 1992, of a billion dollars back in the pockets eliminating—not just increasing, but the Enrichment Corp. is required to of families in the nine counties I rep- eliminating—the earnings test; as a co- prepare a strategic plan by July 1 of resent in the Buffalo, Rochester, Fin- sponsor of H.R. 300, the Older Ameri- this year on prospects for privatiza- ger Lakes area. That is 447,000 children cans Freedom to Work Act, in the pre- tion. who will each receive, their families vious Congress and as a signatory of That plan is to consider alternative will receive $500 tax credit. In my re- the Contract With America, I am de- means of transferring ownership to the gion 15,000 couples are married annu- lighted that we are finally taking ac- private sector and identify the pre- tion on these matters today. ferred method of privatization. The ally. They will keep money when we I simply do not understand why— 1992 act also provides that the corpora- scale back the marriage penalty, and through the current Social Security tion may not implement the plan with- 28,000 seniors in my region will keep law—we want to penalize retired indi- out Presidential approval, and cannot more when we repeal the marriage tax viduals willing to work by forcing privatize less than 60 days after notify- penalty. them to lose a portion of their Social ing Congress of its intent to implement The bottom line is kids, families, Security benefits if they have income the plan. seniors benefit. It is good for this coun- Mr. Chairman, none of these things above a certain level. try, it will help renew the American have happened. I would suggest that The current earnings test amounts to dream. Tonight, finally a tax bill what we are doing today is premature. an additional 33 percent marginal tax American people will like to receive In fact, when we had a hearing of our rate—on top of existing income taxes— from the government. Subcommittee on Energy and Power on and punishes seniors who choose to re- Mr. DINGELL. Mr. Chairman, I yield February 28 this year, a lot of ques- main productive beyond age 64. This 2 minutes to the gentlewoman from Or- tions were raised about the proposed makes no sense. We should be encour- egon [Ms. FURSE]. privatization. aging rather than penalizing produc- Ms. FURSE. Mr. Chairman, plain and A letter, in fact, was sent by the tive, experienced people who want to simple, the answer on this bill is we chairman of our subcommittee, the work. cannot afford it. We cannot afford to gentleman from Colorado [Mr. SCHAE- In fact, our work force benefits great- give tax breaks to people who do not FER], asking various agencies for input ly from the expertise of older work- need them, even if they are our friends, on the terms of privatization. and we cannot afford to cut school ers—and our young workers can gain We do not have any answers to the much from the experience of their loans, housing assistance, school letter from the chairman. We don’t lunches, nutrition for the elderly be- older counterparts. ever know what the proceeds will be Second, this legislation provides fur- cause that will hurt our future. Now we from the sale of the corporation. can afford to cut some other programs, ther tax relief to middle-income sen- Mr. Chairman, my criticism has but if we cut programs, we need to put iors by repealing the tax increase on nothing to do with the overall merits that saving to the deficit, not to tax Social Security benefits enacted by the of the tax cut plan. It simply should cuts for corporations. previous Congress. not include potential proceeds from the We hear a lot today about this $500 I just do not believe that this type of sale of the U.S. Enrichment Corp. tax burden should be borne by our Mr. BLILEY. Mr. Chairman, it is a child credit, but I would like to tell older Americans, and by reducing the pleasure to yield 2 minutes to the gen- you who gets the credit. One-third of the children of America will not get taxable portion of benefits from 85 per- tleman from New York [Mr. PAXON], cent back to just 50 percent—the level chairman of the Republican Congres- any credit, and yet they will be the prior to enactment of the 1993 Clinton sional Committee. ones who most need it because they tax law—we can make a bold statement will be the children, the one-third who in affirmation of this belief. b 1900 are in the lower tax bracket. They will Finally, let me touch briefly on one Mr. PAXON. Mr. Chairman, over the not get the break, but, Mr. Chairman, final component of this bill, tax incen- past 90 days and certainly today we they will get the debt. You have to tives for private long-term care insur- have heard two different visions of have enough money to file an income ance and for families caring for a de- America enunciated here on the House tax return to get this $500, but those pendent elderly parent or grandparent floor. The Democrats view is America one-third of American children will not in the home. As the author of biparti- is a Nation of class warfare. They be- have that money. H 4246 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Now what about this tax break? OK. Importantly, this $189 billion tax cut poor people will only have welfare and If your income is between $30,000 and is fully paid for by responsible budget never get a job in this great country. $75,000, where most of us are, you will cuts and savings. To cite just one ex- It is time to utilize the Tax Code to get $760 in return, but you will also get ample that I have had a personal inter- leverage the private sector, where jobs higher interest rates. But if your in- est in, it is estimated that $2 billion, are created, where American workers come is over $200,000, you will get that is $2 billion in savings, will be re- get a paycheck, not a handout, and $11,000 in a tax break. That is a great alized through the extension of the they pay taxes and keep this train deal. Except that 41 million households Federal Communications Commission’s coming down the track. Now, I would are in that first category getting $760, spectrum auction authority. I spon- like to see the ceiling for that child tax and only 2.8 million will get the $11,000. sored the legislation that originally credit dropped down to $90,000 and Same old story, once again the rich are paved the way for these auctions which hopefully that will happen, and I would getting richer. have already raised over $9 billion for like to see us repeal section 903, change Now, some of our biggest corpora- the U.S. Treasury. Read that, the tax- section 956 of the code. We give too tions under this bill will not pay any payers. many foreign tax loopholes in there. I taxes. Now, we all love to give large ex- H.R. 1215 is a bill that all of us should would like to see tax credits for invest- pensive gifts to our friends, but if it support. The taxpayers have earned it, ment in America, tax credits for the hurts our children and our elders, we they deserve to keep it. purchase of American-made goods. just cannot afford it. We cannot afford Mr. Chairman, I ask for a strong sup- Every study says it is a tax break, and this bill. port of this legislation. in fact it raises revenue. I could not get Mr. BLILEY. Mr. Chairman, I yield Mr. DINGELL. Mr. Chairman, I yield the party here to look at it. myself 30 seconds. 1 minute to the distinguished gentle- H.R. 389, 391 and 392 should have a Mr. Chairman, I note for the record woman from California [Ms. ESHOO]. hearing. But, Mr. Chairman, let me say that the Member who just spoke cast Ms. ESHOO. Mr. Chairman, millions this, America needs capital punish- the deciding vote 2 years ago to raise of middle-class Americans make sac- ment, but we do not need it in our tax the taxes on constituents of her dis- rifices for their children every day. code. Capital gains deserves a change trict by $808 million and now opposes a How many times have we known par- at this modified realistic level. You $500 tax credit that would go right to ents to put off buying a new car to pay know, grandma and grandpa and our the parents. There are 127,000 children for their childrens’ education? How farmers are not exactly Daddy in her district. In fact, the bill she op- many times have we seen parents post- Warbucks around here. poses would allow the middle-class pone their vacation to save for their But I would like to remind my Demo- families of her own district to keep a kids’ tuition? crat colleagues of one thing. I will sup- total of $63 million of their own hard- Yet today, we are considering giving port the Democrat substitute. I like earned money. huge tax cuts to the privileged few in- the language that deals with edu- Mr. Chairman, I yield 2 minutes to stead of investing in our children’s edu- cation. But let me say this: There are the gentleman from Ohio [Mr. OXLEY]. cation and our country’s future. a lot of Ph.D.’s in New York driving (Mr. OXLEY asked and was given Is this what the American people cabs. It is time to incentivize the tax permission to revise and extend his re- really want? I don’t think so. I rep- code. Our current system is anti-fam- marks.) resent one of the wealthiest districts in ily, anti-business, anti-parents, anti-in- Mr. OXLEY. Mr. Chairman, during the country they want deficit reduc- vestment, anti-jobs, and it is anti- the first 100 days of the Contract With tion and they recognize that education smart. America, I have repeatedly received is an investment. One other thing. The Republicans do three words of advice from my con- Middle-class Americans do need re- not necessarily have a patent on tax stituents in Ohio’s Fourth Congres- lief—they need relief from the ever cuts. John Kennedy cut taxes for much sional District: ‘‘Keep it up.’’ The peo- climbing costs of education—the seed of the same reason the Republican ple I have talked with in my district corn which allows our Nation to har- party is addressing this issue, and I am are pleased that we are carving the vest a trained work force. not going to put him down for that. lard out of an obese bureaucracy that They want deficit reduction—not a But it is time to get away from it. The micromanages our lives. They feel Republican deficit buster which doesn’t tax code basically divided America, old more secure knowing that we have invest in our future or address the fun- against young, worker against com- passed a real crime bill this time, and damental issues which face our coun- pany, rich against poor, and I come they think it is about time that we re- try. from as poor a family as anybody in vived the principle that the route to I urge my colleagues to reject this the Congress, and my dad never worked prosperity is through work, not wel- so-called crown jewel of the contract. for a poor person, never. fare. They support our approval of the It’s costume jewelry. Education pro- If we are going to create jobs, we are balanced budget amendment and re- duces the true crown jewels in our fam- certainly not going to do it with the spect us for facing up to the hard deci- ilies, our communities, and in our tax code that we have. I keep hearing sions needed to reduce the deficit. country. about all this great economy. My God, They have consistently told me one Mr. BLILEY. Mr. Chairman, I yield 4 of the top 50 banks in the world, the other thing. We are overtaxed and we minutes to the gentleman from Ohio top American bank was listed at 29. We need relief. I have been struck by one [Mr. TRAFICANT]. are still bailing out the savings and remarkable statistic. The average Mr. TRAFICANT. Mr. Chairman, loans. Most pension plans are under- American family spends about half of America’s tax system stifles growth, funded. Jobs are still being shipped its budget on Federal, State, and local kills commerce, slows investment, and overseas. We have got a record trade taxes. Hardworking families just can- destroys jobs. Our tax code must be deficit. Right now America is buying not afford to raise children and feed a changed, it must be energized, it must back American dollars with borrowed hungry bureaucracy as well. be incentivized. That is why I rise to American dollars from Japan and Ger- H.R. 1215 represents a long overdue support this bill. The Republican plan many to save the endangered American down payment on tax fairness. It pro- does cut taxes on families, American dollar. vides relief for families and senior citi- families. The plan does cut taxes on Beam me up here if things are so zens, establishes critically needed sav- business, American companies. It does great. Let us change the tax code. I ings, and encourages private sector in- cut taxes on senior citizens, your par- support this bill, and it is time to put vestment that will promote economic ents and grandparents as well as all this class warfare aside. growth and create thousands of jobs. other Americans. These are tax cuts Mr. DINGELL. Mr. Chairman, I yield The average taxpayer in my State of for your constituents and my constitu- 2 minutes to the distinguished gen- Ohio will save about $1,400. That is ents and they make sense, and I think tleman from Michigan [Mr. STUPAK]. $1,400 for an individual family to spend it is time to stop the class warfare Mr. STUPAK. Mr. Chairman, over rather than spent by a faceless Federal around here. If people with money do the past few weeks I have been coming bureaucrat. not invest their money in America, to this floor to talk about what I call April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4247 the Republican version of the AFDC, of the Committee on Ways and Means. USEC privatization. This matter lies within not Aid to Families with Dependent As a consequence, I requested that the the jurisdiction of the Committee on Ways Children, but aid for dependent cor- Commerce Committee chairman ask and Means, and was reported contrary to porations. Over this 100 days we have the Rules Committee to remove this Rule XXI, clause 5(b), which provides that no seen the Republicans repeatedly reward specific provision from the language bill carrying a tax measure may be reported by any committee not having jurisdiction to the privileged and special interests providing for the privatization of the report tax measures. while trying to do cuts in veterans pro- U–S–E–C, with the understanding that On that basis, I would respectfully request grams, student financial aid, and law the issues surrounding the tax treat- that you write to the Chairman of the Com- enforcement, and in this bill there is a ment of the privatization will be fully mittee on Rules and ask that the rule for $5 billion cut for law enforcement. addressed in conference. floor consideration of H.R. 1215, as amended, This tax bill is another example of Mr. BLILEY. Reclaiming my time, delete the tax treatment provision in Sec- those misguided priorities. The Repub- Mr. Chairman, the distinguished chair- tion 3006. This action would be done with the lican tax plan essentially repeals the man of the Ways and Means Committee understanding that the provision would be corporate income tax by phasing out, correctly states that a provision was treated without prejudice as to its merits when considered, as appropriate, by the Com- among other things, the corporate al- include in the bill providing for the pri- mittee on Ways and Means during the course ternative minimum tax, a provision of vatization of the U–S–E–C that would of its legislative agenda later this year. the tax code that was put in in 1986 to ensure that the first step in the privat- Your cooperation in this matter is greatly ensure that profitable corporations pay ization of the U–S–E–C would be a non- appreciated. a fair share of income taxes. This alter- taxable event. It is my understanding Sincerely, native minimum tax repeal was not in- that this is how the Internal Revenue BILL ARCHER, cluded in the original Contract on Service should treat the event in ques- Chairman. America, but was inserted at the last tion; given the immense size of this minute following pressure by corporate transaction, the Commerce Committee HOUSE OF REPRESENTATIVES, lobbyists and special interest groups. simply wanted to be certain that there COMMITTEE ON WAYS AND MEANS, I offered an amendment before the would be no ambiguity in the tax con- Washington, DC, April 3, 1995. Committee on Rules to delete the sequences of this aspect of the privat- Hon. GERALD B.H. SOLOMON, phase-out, but that was not made in Chairman, Committee on Rules, House of Rep- ization. I would tell my good friend resentatives, Washington, DC. order by the Republican leadership. that after his concerns were brought to DEAR MR. CHAIRMAN: On March 27, 1995, I What does the alternative minimum my attention, I concurred that the pro- wrote to you requesting a rule for floor con- tax mean for average working Ameri- vision falls within the jurisdiction of sideration of H.R. 1215, the ‘‘Contract with cans? It means that corporations can- the Ways and Means Committee, and America Tax Relief Act of 1995’’, which not use attorneys and tax loopholes to agreed to ask the Rules Committee to would make in order a consolidated bill avoid paying a minimum level of taxes. remove the specific tax language from (since introduced as H.R. 1327, the ‘‘Tax Fair- Every year thousands of parents make the bill with the understanding that we ness and Deficit Reduction Act of 1995’’) in- corporating other offsetting spending reduc- room in their household budget to buy would deal with this issue at a later school supplies for their kids. Like this tion provisions as the base text for the pur- time, after we have had an opportunity poses of amendment. 99 cent bottle of glue. Most of you do to confer on the best way to ensure the H.R. 1327 includes the text of H.R. 1216, a not know that in 1981 virtually every sound and effective privatization of the bill to provide for the privatization of the parent who purchased a bottle of glue U–S–E–C. Our two committees have ex- United States Enrichment Corporation like this paid taxes, more than the changed correspondence detailing this (USEC), reported by the Committee on Com- company that produced it. situation, and I would request that merce on March 23, 1995. According to the watchdog group these letters be incorporated into the Since the date of my original letter to you, it has come to my attention that Section Citizens for Tax Justice, in 1981 the RECORD at the appropriate point. producer Borden Company, makers of 3006 of H.R. 1216 includes a provision regard- I think both of us agree on the intent ing the tax treatment of the USEC privatiza- the glue, despite a profit of over $200 of the provision, and I look forward to tion. This provision lies within the jurisdic- million, paid no income taxes. working with my good friend, the tion of the Committee on Ways and Means, b 1915 chairman of the Ways and Means Com- and was reported contrary to Rule XXI, mittee, to accomplish a responsible tax clause 5(b), which provides that no bill carry- In fact, they got back $14.9 million in provision in conference, and I thank ing a tax measure may be reported by any income tax credits. This is the very him for his cooperation today. committee not having jurisdiction to report tax measures. thing which the corporate minimum Mr. ARCHER. The gentlemen is cor- tax was designed to stop and to end. On this basis, I respectfully request that rect, and I will work with him to in- the rule for floor consideration of H.R. 1215, Even President Ronald Reagan sup- clude appropriate tax provisions in ports the alternative minimum tax. as amended, strike this provision. conference. Your cooperation and that of the Commit- Mr. Chairman, this is a bad bill, it is Mr. Chairman, the letters referred to tee on Rules in this matter is greatly appre- going to stick it to big corporations are as follows: ciated. and we must not allow big corporations Sincerely, HOUSE OF REPRESENTATIVES, to take advantage of another tax loop- BILL ARCHER, COMMITTEE ON WAYS AND MEANS, Chairman. hole brought forth by the GOP. Washington, DC, April 3, 1995. Mr. BLILEY. Mr. Chairman, I yield Hon. THOMAS J. BLILEY, Jr., myself 3 minutes and I will take this Chairman, Committee on Commerce, House of HOUSE OF REPRESENTATIVES, time to engage in a colloquy with the Representatives, Washington, DC. COMMITTEE ON WAYS AND MEANS, chairman of the Committee on Ways DEAR CHAIRMAN BLILEY: On March 28, 1995, Washington, DC, April 4, 1995. and Means. the Chairman of the Committee on the Budg- Hon. THOMAS J. BLILEY, Jr., Mr. ARCHER. Mr. Chairman, will the et, Mr. Kasich, introduced the bill H.R. 1327, Chairman, House Committee on Commerce, 2125 gentleman yield? the ‘‘Tax Fairness and Deficit Reduction Act Rayburn HOB, Washington, DC. of 1995’’, which incorporated the text of H.R. DEAR CHAIRMAN BLILEY: As you know, H.R. Mr. BLILEY. I yield to the gen- 1215, the ‘‘Contract with America Tax Relief 1216 (the ‘‘USEC Privatization Act’’) as re- tleman from Texas. Act of 1995’’, along with other necessary off- ported by the Commerce Committee con- Mr. ARCHER. Mr. Chairman, I thank setting spending reduction provisions. I un- tains a tax provision. That provision is in- the gentleman for yielding. derstand that the text of H.R. 1327 is to be tended to allow the United States Enrich- Mr. Chairman, in title III of this bill, considered as the base text for floor consid- ment Corporation to transfer its assets with- H.R. 1215, the Tax Fairness and Deficit eration of H.R. 1215 this week. out Federal income tax consequences to a Reduction Act of 1995, a tax provision H.R. 1327 includes the provisions of H.R. state chartered corporation, pursuant to a was originally included in language 1216, a bill to provide for the privatization of privatization plan. The provisions of H.R. the United States Enrichment Corporation 1216 were included in H.R. 1327, the ‘‘Tax providing for the privatization of the (USEC), reported by the Committee on Com- Fairness and Deficit Reduction Act of 1995’’, United States Enrichment Corporation. merce on March 23, 1995. and the text of H.R. 1327 is expected to be As the gentleman knows, Federal tax Section 3006 of H.R. 1327 includes a provi- adopted as a substitute to the text of H.R. provisions are within the jurisdiction sion regarding the tax treatment of the 1215. H 4248 CONGRESSIONAL RECORD — HOUSE April 5, 1995 As you know, Federal tax provisions are Mrs. COLLINS of Illinois. Mr. Chair- Somebody mentioned a few minutes solely within the jurisdiction of the Commit- man, today we are voting on the final ago about welfare, somebody else tee on Ways and Means. Accordingly, I ap- item in the Republican’s Contract on called it corporate welfare. What else preciate your agreeing to delete the provi- sion from the legislation intended to replace America, the so-called crown jewel of can it be called? It is also welfare to the text of H.R. 1215. the 100 day take-money-from- those Americans who are quite I want to affirm my commitment to work schoolkids-and-give-it-to-the-rich ex- wealthy, over $200,000 a year. They are with you in conference to provide appro- travaganza. going to get a $500 tax credit for each priate tax provisions to facilitate privatiza- Well, in case we weren't able to figure out one of their kids, and yet the poor guy tion of the USEC. In particular, I understand the point of this whole Contract With America, making $30,000 a year is going to have that the transfer from a federal to a state to work forever just to have $4,500 over charter should be a non-taxable event. I will H.R. 1215, the Republican tax bill, makes it all work in conference to provide statutory lan- crystal clear. 5 years in order get about $900 in bene- guage making clear that the transfer from a H.R. 1215 is a reckless, deficit-exploding, fits on his retirement check. federal to state charter is a non-taxable who-cares-about-the-poor bill full of goodies Something is wrong here, Mr. Chair- event. The fact that such a provision will not and bonuses by the wealthy and the rich. man. It seems to me we are way out of be included in the House bill will not preju- What a fitting finale, Mr. Chairman! line on this. It seems to me if we want- dice consideration of such a provision in the My Republican colleagues have aban- ed to give a real tax break, give it to conference. With respect to such tax provi- sions, I intend to consult with you to ensure doned this commitment to deficit re- the guy who really needs it, not the the most effective privatization of the USEC. duction in their Contract With Amer- guy who earns $200,000 a year. It just Sincerely, ica in favor of this blatant payoff to does not make sense to do so. BILL ARCHER, the rich. Now, since we know who wins under this Chairman. Let’s take a look at who exactly this bill, let's look at who loses. Unless you're in bill benefits. For starters, corporations the highest income bracket in the United HOUSE OF REPRESENTATIVES, are big winners under H.R. 1215. Back States, you're just plain out of luck. The Re- COMMITTEE ON COMMERCE, Washington, DC, April 4, 1995. in the 1980’s, Congress realized that publicans promised to lower your taxes, right? Hon. BILL ARCHER, many of our richest, biggest companies Well, if you are a working family with an in- Chairman, Committee on Ways and Means, weren’t paying a single dime in taxes come under $75,000 a year, you can expect Washington, DC. by taking advantage of all the tax to receive a tax break of a whopping $36 a DEAR CHAIRMAN ARCHER: Thank you for write-offs available. As a result, the al- month. This will barely buy a pair of sneakers. your letters of April 3, 1995, and April 4, 1995, ternative minimum tax was established And families earning between $40,000 and regarding certain provisions in H.R. 1216, the to ensure that corporations make at $50,000 a year can expect to pocket an aver- USEC Privatization Act, which would affect least a nominal contribution to the Na- the tax treatment of the privatization of the age capital gains tax break of $32 a year. This United States Enrichment Corporation. As tional Treasury. might cover one trip to McDonalds if your fam- you know, the text of H.R. 1216 has been in- Well, our friends on the other side of ily isn't too big or too hungry. corporated into H.R. 1327, the Tax Fairness the aisle clearly think that its OK if Not only do average working families gain and Deficit Reduction Act of 1995, which is to some of the Fortune 500 corporations nothing from H.R. 1215 but they will have to be considered on the floor later this week. leave everyone else to pick up the bill pay for the big shots' tax cuts through the ex- The Commerce Committee acknowledges on April 15th because H.R. 1215 com- ploding deficit and spending cuts. the jurisdiction of the Ways and Means Com- pletely repeals the alternative mini- Its important to note, too, that the vast ma- mittee on Federal tax provisions and agrees to delete the tax provisions in H.R. 1327 mum tax. This is expected to reduce jority of tax benefits in H.R. 1215 are specifi- which pertain to the privatization of the revenues to the U.S. Treasury by $35.6 cally designed not to apply to low-income USEC. This agreement is predicated on an billion over the next 10 years that will Americans. For example, the $500 per child understanding, as set forth in your letter of have to be made up through deficit tax refund available to families with incomes April 4, 1995, that the Ways and Means Com- spending or more cuts in programs that up to $250,000 is only available to families mittee will work with this Committee in help to ease the financial burdens of with tax liability. In other words, the lowest-in- conference to include appropriate tax provi- the guy who needs a helping hand. come families would receive no benefit under sions that facilitate privatization of the America’s wealthiest individuals and USEC. this credit. Low-income families would also re- As you know, my interest has been in pro- families also come out way ahead ceive no benefit whatsoever from this bill's viding a framework for the sound and effec- under H.R. 1215 with the capital gains marriage penalty tax credit or the $5,000 tax tive privatization of the USEC. I appreciate tax cut and other goodies that ensure credit for adoption. your assurance that you agree that the that the well-off become even better To make matters worse, these same low-in- transfer of the USEC from a Federal to a off. A U.S. Treasury Department analy- come families who aren't eligible for any of state charter should be a non-taxable event. sis of the impact of this legislation re- H.R. 1215's tax goodies are forced to fund this I also appreciate your commitment to work veals that more than half of the bene- corporate giveaway. H.R. 1215 is paid for with me to provide statutory language mak- fits in H.R. 1215 go to the top 10 percent ing clear that the transfer from a Federal to through cuts in programs such as the Low In- a state charter is a non-taxable event. The of American families with incomes of come Housing Energy Assistance [LIHEAP] assurances provided in your April 4th letter more than $100,000 a year and nearly 30 Program that helps 2 million senior citizens give me sufficient confidence that you agree percent of the bill’s benefits go to the pay for their heating bills, Healthy Start, which with the importance of such protections, and top 2 percent of families making over provides prenatal care to expectant moms, that this matter will be addressed properly $200,000 year. These families will re- and other programs that remove lead-based in conference. Accordingly, I have commu- ceive an average tax break of $938 a paint from public housing, provide summer nicated to the Rules Committee my request month! That’s a gift from the Repub- jobs to our teenagers, and so forth. that the language found in section 1503(a)(5) licans of $12,256 a year. of H.R. 1216 be deleted from the text of H.R. Senior citizens and Federal employees are 1327. And who is going to be paying for also singled out to pay for this tax break bo- Thank you for your cooperation in this this? The American Federal employees, nanza. Medicare will be cut dramatically and matter. these people who have worked for Fed- Federal employees will be taxed through sig- Sincerely, eral Government are going to have to nificantly higher contributions to their retire- THOMAS J. BLILEY, JR., make vast contributions from their ment plans in order to receive lower benefits. Chairman. own Federal retirement system in This is the Republican crown jewel that Mr. DINGELL. Mr. Chairman, I yield order to pay for these tax cuts. passes out caviar to the rich and leaves the 3 minutes to the distinguished gentle- I want to talk about these Federal rest of America starving. I oppose this shame- woman from Illinois [Mrs. COLLINS], employees who only earn $30,000 or so a ful bill and urge my colleagues to do the the ranking minority member of the year. On average they are going to be same. Committee on Government Reform and forced to pay $750 more toward their Mr. BLILEY. Mr. Chairman, I yield 3 Oversight. pension every year under this doggone minutes to the gentleman from Illinois (Mrs. COLLINS of Illinois asked and bill, so the top 2 percent we just talked [Mr. HASTERT], the chief deputy whip, was given permission to revise and ex- about who have incomes over $200,000 a and a member of the Committee on tend her remarks.) year are going to be enriched further. Commerce. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4249 Mr. HASTERT. Mr. Chairman, My tinguished gentleman from Maryland Mr. BLILEY. Mr. Chairman, how good friend, the gentlewoman from Illi- [Mr. HOYER]. much time is remaining? nois [Mrs. COLLINS] just spoke, but you Mr. HOYER. Mr. Chairman, I thank The CHAIRMAN pro tempore (Mr. know I think I remember just 2 years the gentleman for yielding me this FOLEY). The gentleman from Virginia ago that my good friend from Illinois time. [Mr. BLILEY] has 13 minutes remaining, just raised the tax on her constituents Mr. Chairman, I came to this House and the gentleman from Michigan [Mr. that would cost $711 milion and now at a time of another Republican de- DINGELL] has 14 minutes remaining. opposes a $500 tax credit to go right to scribed revolution. It was the Reagan b the parents of the 89,000 children that revolution, instituting the Kemp-Roth 1930 are in her district. The fact is she op- supply side economic proposal for feel Mr. BLILEY. Mr. Chairman, I yield 2 poses the bill that would allow middle- good, no sweat, no pain Federal fiscal minutes to the gentleman from Califor- class families in her district to keep a policy. When it passed in August of nia [Mr. BILBRAY], a new member of total of $44 million of their own hard- 1981, President Reagan proclaimed the our committee, the Committee on earned money. budget would be in balance by October Commerce. Mr. Chairman, I also rise in support 1, 1983. Mr. BILBRAY. Mr. Chairman, 2 years of the Tax Fairness and Deficit Reduc- When that revolution began, the debt ago as a member of the public I tion Act we are considering today. I am confronting our Nation was $932 bil- watched these proceedings, and I especially pleased to support the Sen- lion. At its conclusion in January of watched my colleague from Maryland ior Citizens Equity Act portion of this 1993, it was $4.1 trillion. During that 12 support the largest tax increase in the legislation. years, not a red cent was spent on United States. We heard a great deal in recent America that either President Reagan Mr. HOYER. Will the gentleman weeks about Republicans being mean or President Bush did not sign off on. yield? Would the gentleman like to spirited. I contend that what some Today we are in the throes of another know what he is doing to my constitu- Democrats have done to our senior citi- Republican led and named revolution, ents in this tax bill? zens has been mean spirited. and according to Speaker GINGRICH we Mr. BLILEY. Regular order, Mr. Ever since I first came to Congress I today consider the crown jewel of the Chairman. have been fighting against the unfair 1990s version of trickle-down econom- Mr. BILBRAY. Mr. Chairman, that Social Security earnings limit, and ics. It is a synthetic, virtually worth- vote cost his constituents $539 million. this earnings limit taxes seniors at a less stone. I will oppose it. Neither our Mr. HOYER. Does the gentleman rate twice as high as millionaires have country nor our children can afford it. know how much this bill is costing my to pay if they choose to work. It is, quite frankly, a time for us as constituents? This tax hurts productivity, it robs a people, as a Congress, and as a great Mr. BILBRAY. Regular order, Mr. the country of needed experience, and Nation to demonstrate the discipline Chairman. penalizes people who we should be try- and the resolve necessary to put our fi- The CHAIRMAN pro tempore (Mr. ing to help. Despite the obvious unfair- nancial house in order and show that FOLEY). The gentleman will suspend. ness of this earnings limit, the Demo- America and Americans continue to The gentleman from California [Mr. crat leadership refused to bring legisla- have the courage to face tough prob- BILBRAY] has command of the time. tion to correct this situation to the lems without shrinking into policy Mr. BILBRAY. Mr. Chairman, I am floor. more expected from nations falling not trying to be confrontational. I am I call that mean spirited. into fiscal chaos and national weak- trying to just communicate what a cit- Today, in this bill, the Republican ness. That has been the history of the izen sees in these proceedings. majority finally brings a long needed all of great nations: a focus on the im- You know, we are talking about solution to this problem to the floor. I mediate, the temporary, the politically 137,000 children in his district that par- call that fairness. popular quick fix. ents that could have access to this. In 1993 President Clinton’s budget, Mr. Chairman, there can be a time Now, that is fine, and we can make passed over the unanimous objections for a reduction of taxes, and when we those judgments. of House Republicans, included a hefty succeed in eliminating our annual op- But do you realize that 2 years ago tax increase on Social Security recipi- erating deficits, then will be the time when this vote was, the tax increase ents. I call that mean spirited. to cut taxes. was put in, my dear colleagues on the Today in this bill, we repeal that tax Then we will be able to say to our other side of the aisle, there was a increase. I call that fairness. children we are paying for what we commitment made that once the tax Mr. Chairman, today in the Senior buy, and we are not passing those ex- increase went in, you will see tough, Citizens Equity Act, we reverse these penses on to you. That is why I voted tough budget cuts; you will see us re- mean spirited taxes on our senior citi- for the balanced budget amendment. duce it; trust us. What happened this zens, we repeal the President’s Social We will convey to you a great Na- year with the President’s budget? Security benefits tax, and I ask for my tion, we can tell our children, which Will you agree that the credibility of colleagues’ yes vote on passage. has the wisdom to discipline itself and the political process was destroyed Mr. DINGELL. Mr. Chairman, for not squander your inheritance, a Na- when the President of the United purposes of correcting the RECORD, I tion proud of its history and commit- States proposed a budget that had none yield 30 seconds to the distinguished ted to its future, a Nation prepared to of the cuts that were proposed 2 years gentlewoman from Oregon [Ms. FURSE]. invest prudently in its people, a nation ago when the tax increase goes in? And Ms. FURSE. Mr. Chairman, I thank unwilling to slide self-satisfied and as a citizen, I ran for Congress because the gentleman for yielding me the self-absorbed into second-rate status. the credibility was being destroyed by time. Over 100 or our Republican col- making promises on one side to raise Mr. Chairman, there seems to be a leagues, over 100 of our Republican col- taxes and never coming across the concerted attack on those of us who leagues urged their party to support other way. voted for the President’s 1993 budget. I such a path. They were rejected. Mr. Chairman, I represent a diverse just want to point out that many poor I urge this House to stand for what it district along the Pacific coast, but I and middle-income families received knows to be the correct course for grew up and I live in a working-class substantial tax returns from the today, for tomorrow and for genera- neighborhood, and when I hear all the earned income tax credit. In fact, 16,000 tions to come; for our senior citizens, battle about the rich getting some ben- families in the First District of Oregon for our students, for our families, for efit, I would wish my colleagues on the received an earned income tax credit as our children, and most of all, for our other side would be half as worried a result of the 1993 budget. country. Vote, ladies and gentlemen of about the middle class getting their Mr. DINGELL. Mr. Chairman, in view this House, for fiscal health and re- fair share of tax cuts rather than al- of an imbalance in time, I think we sponsibility. Our children and grand- ways worrying about something might should yield some time over here and, children should expect no less of us. happen that may benefit somebody who therefore, I yield 4 minutes to the dis- Vote ‘‘no.’’ has been a little more prosperous. H 4250 CONGRESSIONAL RECORD — HOUSE April 5, 1995 My neighbors do not want to be sac- sluggish economy, in fact, a deep reces- been able to have a home; they got a rificed on the altar of work there, and sion that we have yet to recover. little loan to send their kids to our col- I close with this, please, go outside and They say this is a Contract With leges in North Carolina and all over ask the security guards if they are rich America. But America certainly is this country, to take part in this great that work in this Chamber. They make more than about billionaires and big experiment called democracy. enough money to make that tax write- business. America is college students, I take offense when people say how off. minimum-wage workers, infants, sen- bad this country is. If you want to Mr. Chairman, it is time to stop the ior citizens, schoolchildren, pregnant leave, exercise your right to renounce class warfare. women, and middle-income workers. your citizenship and do not pay taxes Mr. HOYER. Mr. Chairman, would I urge Americans to listen carefully and leave this country. But this is the my friend, the gentleman from Vir- to what they say they are going to do. greatest country on the face of the ginia, yield for just 1 second? I would But I urge them to listen more closely Earth. like to ask him a question about talk- to what they do. I urge my colleagues The reason I oppose this is the reason ing to the security guards outside. to vote against this unfair tax bill. that 100 Members of this side of the The CHAIRMAN pro tempore. The Mr. BLILEY. Mr. Chairman, I yield 2 aisle wrote the letter and wanted us to gentleman will suspend. The gentleman minutes to the gentleman from Con- lower the caps, because it just plain from Michigan has not yielded time. necticut [Mr. FRANKS], a member of ain’t fair. This package is not fair, and Mr. HOYER. The gentleman did not the committee. that couple that is working in that tex- yield me time? Mr. FRANKS of Connecticut. Mr. tile mill back home in North Carolina, Mr. DINGELL. No. Chairman, failed tax-and-spend policies they are not going to get anything out Mr. HOYER. I apologize, Mr. Chair- as demonstrated in a proficient manner of this tax package. They are not going man. by a Congress controlled by the Demo- to receive anything for their children. Mr. DINGELL. Mr. Chairman, I yield crats for 40 years, versus less taxation But I can tell you who is: everybody 3 minutes to the gentlewoman from and less spending by Republicans in that has come to either one of these North Carolina [Mrs. CLAYTON]. 1995: America, you voiced your opinion podiums today, everybody that has Mrs. CLAYTON. Mr. Chairman, I loudly this past November. spoken in favor of this tax package is have always been told that it is more Making more money available to pri- going to get a benefit from it. Every- important to watch what one does vate citizens and private industry will body here that has got a kid going to rather than what one says. The Repub- inevitably result in more money going school that is a Member of Congress is licans say that this tax is not for the into our economy to produce economic going to benefit from it whether they wealthy, but what do they do? More growth and, yes, ladies and gentlemen, have got two or three kids or four kids, than 100 of their own Members signed a more tax revenues. because we are in that bracket. letter urging their leaders to reduce The method to improve our cities is But it just plain ain’t fair to Middle coverage of the tax cut from those not through new and fancy social America, and people that work every earning from $200,000 to that of $95,000. spending programs. The first way is to day to try to support their families and They say that this tax cut is not help strengthen our families. Encour- educate their kids. It just plain ain’t about making sure that the wealthy at aging marriage, adoptions, savings by fair. the expense of low and middle income, families, long-term health care, and Mr. DINGELL. Mr. Chairman, I yield but what do they do? Mr. Chairman, senior citizens’ equity are steps in the 11⁄2 minutes to the gentleman from Wis- yesterday the gentleman from Ohio right direction. consin [Mr. KLUG]. [Mr. KASICH] passed around this letter. Second, this and future tax incen- Mr. KLUG. Mr. Chairman, Paul Tson- Clearly in that letter it showed the tives properly directed will allow us to gas said it years ago, let me repeat it spending cuts coming from the low-in- improve the economic condition of our tonight. I am not Santa Claus. I wish I come and middle-income people will be cities. We as Republicans, and I believe was. for what, to pay for the tax cut. many moderate-to-conservative Demo- I wish I could vote for this tax pack- They say this bill is the Contract crats, would agree that we must help age and tuck a $1,000 refund check in With America, relief of 1995, but what employers to employ more employees, all of the stockings hung with care will they do? Who do they give relief and we must encourage more entre- from the mantle. to? They give relief to the privileged preneurs of all hues. For that matter, I wish I were the few and little relief to the rest of Let us remember that with strong Easter Bunny tonight and could hide America. families, less taxation, less spending, baskets of goodies in the backyard They say this bill is senior-friendly. and less government, we will be able to bushes, but I cannot, folks, because it But what do they do? Nearly three- turn our society around for the better. is my job tonight to play the role of fourths of the senior tax relief will go Mr. DINGELL. Mr. Chairman, I yield grinch and remind everybody in this to the seniors who make $75,000 or 11⁄2 minutes to the distinguished gen- Chamber that we are flat-out broke. more. To which seniors are they will- tleman from North Carolina [Mr. HEF- Now, there are a lot of my colleagues ing to be friendly? NER]. on the other side of the aisle tonight They say this bill is a fair bill. In (Mr. HEFNER asked and was given who suddenly have found religion in fact, they call this bill the tax fairness permission to revise and extend his re- deficit reduction, and we will see just of 1995. But what do they do? They un- marks.) where they are come May, because we fairly and unequally distribute the ben- Mr. HEFNER. I find it interesting; it know where they have been in the past. efits and the burdens. disturbs me when Member after Mem- I will be delighted to vote for the Guess what, they give the benefits to ber from this side of the aisle comes budget package and help the chairman, those who have a lot of money and give and talks about the failures we have the gentleman from Ohio [Mr. KASICH], the burdens to those who have very lit- had over the past 40 years. and do everything I can in my will to tle or minimal income. This is the greatest country on the pass this tough deficit-reduction plan. Three-fourths of the capital gains tax face of the Earth. We do not have to I understand, as John Kennedy did, relief in the bill goes to those who earn worry about keeping people in here. We that capital gains breaks help grow the more than $100,000 a year. If you make do not have to worry. We have to worry economy and help small businessmen more than $200,000 a year, you will get about people wanting to come here. and farmers back in Wisconsin, and $11,000 tax relief. But if you make I have seen programs over the last 40 IRA’s will help average families save $30,000 a year, you may get a couple of years. We have had some failures. We more for retirement. hundred dollars. have had some abuses. But we have had And if that is all this bill was about They say this tax bill will stimulate some great successes. Thanks to pro- tonight, I would be glad to lead the the economy. But what do they do? grams, people are able to go to school charge up San Juan Hill. Instead, what They ignore the last tax bill, tax cut, that would not have been able to go to I hear tonight is not necessarily an as- that they gave in the 1980’s, which school before, that can get a loan to sault on the deficit. I am afraid it is a pushed this Nation in a deficit and a buy a house that would never have retreat from deficit reduction. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4251 The cuts are not specified. The tax Let us stop the class warfare and tell new jobs just like the tax reduction of cuts are too generous. The timing in a the truth. Why are the American peo- Ronald Reagan and, yes, John Ken- robust economy, I believe, is all wrong. ple angry? They are angry because nedy. Maybe it will all make sense and add they have seen middle-class incomes Now the second thing that we have to up later this summer when this bill remain stagnant while those in the do, and we plan to do it, is we are going gets through conference. As for me, I highest echelons of our community to control this deficit because, unlike am putting Rudolph back in the stable have seen their earnings increase more the Democratic Party for the last 30 tonight and telling the elves to put up than 29.5 percent over the years, but years, we are going to do something their feet and relax, because, in my the folk who need the tax cuts, which about the deficit, and that is the sec- mind, it is not Christmastime tonight. this present tax bill does not address, ond part of our plan. Mr. BLILEY. Mr. Chairman, I yield 1 the lowest fifth, the second and the Mr. DINGELL. Mr. Chairman, I yield third wage earners, they have not been minute to the gentleman from New 11⁄2 minutes to the gentleman from Ver- earning enough dollars or they have Jersey [Mr. ANDREWS]. mont [Mr. SANDERS]. (Mr. ANDREWS asked and was given not been having the infusion of cash to Mr. SANDERS. Mr. Chairman, this is permission to revise and extend his re- support their basic needs. a bad bill and a very unfair bill. This marks.) b 1945 is, in fact, a bill based precisely on the Mr. ANDREWS. Mr. Chairman, I rise Talk about capital gains, and I know principles of class warfare. That is ex- in favor of this tax reduction bill here I have heard some senior citizens call actly what it is. tonight. I do so thinking about the in and say, ‘‘I have property I’d like to I say to my colleagues, ‘‘When you American families and the families in sell.’’ Well, if we were not rushing to take from the poor, and you give to the my district who sit around the kitchen judgment on this Republican tax bill, rich, that’s class warfare. When you table on a Friday night, and they take we might have been able to have means take from hungry children and give to out their checkbook, and after they testing on capital gains tax. We might profitable multinational corporations, write their check for their mortgage have been able to sit down at the table that’s class warfare.’’ and their property taxes and their and reasonably address the question, Mr. Chairman, half of the individual credit card bill and their health insur- who deserves a tax cut. I believe it is tax breaks in this bill go to families ance and their utility bill and all the those earning under $75,000. earning $100,000 a year, and this bill other bills they have to pay to meet I will vote for a tax cut, but I cer- cuts back on nutrition programs for their family budget, for many of them tainly will not join the fantasy of the hungry children. That is class warfare. there is nothing left, and for some of circus that was held here at the United A quarter of the tax breaks go to peo- them there is an insufficient amount to States Capitol today and the circus ple earning $200,000 a year, and the bill pay even those bills. that will be held tonight when we vote cuts back on loans to college students In my opinion the question of this for a tax cut that will not help the whose families today cannot afford the bill here tonight is this: Does this leg- American people! high cost of college. That is class war- islation help or not help that family? I Mr. BLILEY. Mr. Chairman, I yield 2 fare. The highest earning 1 percent of think this legislation helps that fam- minutes to the gentleman from Ken- the population will get more tax ily. tucky [Mr. WHITFIELD], a member of breaks than the bottom 60 percent, and It is my conclusion that $500 per the committee. then they cut back on a wide variety of child in their hand is better spent by Mr. WHITFIELD. Mr. Chairman, as programs that lower income senior them. It is my conviction that that my colleagues know, this debate, as citizens need. $500 belongs to them. They earned it. It much as any debate on this House I say to my colleagues, ‘‘When you is a necessity for their way of life, and floor, epitomizes the difference in the tell low income seniors in Vermont by voting for this bill tonight, I think philosophy of the Democratic Party that they have to live without fuel as- we can let them keep more of what and the Republican Party, and, when I sistance, that’s class warfare.’’ they earned. say Democratic Party, I do not include Mr. BLILEY. Mr. Chairman, I yield 2 I rise in support of the legislation. all Democrats because we know that minutes to the gentleman from North Mr. DINGELL. Mr. Chairman, I yield many Democrats are very much con- Carolina [Mr. BURR], a member of the cerned about the deficit. But for 30 11⁄2 minutes to the gentlewoman from committee. Texas [Ms. JACKSON-LEE]. years, since the Great Society, the Mr. BURR. Mr. Chairman, those here Ms. JACKSON-LEE. Mr. Chairman, I Democratic Party has had no concern tonight that would suggest that it is rise to state that I am going to vote for about Federal deficits in America, and going to be tough to balance the budg- a tax cut today. I am going to vote for during that time many programs, good et are in fact right. We knew it would programs, have provided benefits for the Gephardt plan. Today we had a be tough when we came to Congress, people in our great country. full-blown circus played out on the that there would be tough decisions, But as may colleagues know, as steps of the United States Capitol, and but we knew we were up to the task of times approaches to old problems, and to the American people, I really mean making those decisions. today we have a $4.7 trillion debt in it, elephants and clowns. Pure fantasy America, $200-and-some billion dollars Tonight we have a special oppor- which is what the Republican tax bill a year just to pay the interest, and I tunity. Tonight we have the oppor- is. say to my colleagues, ‘‘When you take tunity to make it easier on working But I am going to another fantasy, the entitlements, and you take the in- Americans to balance their budget. I and I am going to say bab, humbug, be- terest on the debt, it’s by the year 1997 hope we do not take this opportunity cause Scrooge is in the Chamber today. those two items alone will exceed the and blow it like we have in the past. The reason why I say that is that total tax revenues of this country.’’ Mr. Chairman, during my campaign Scrooge is taking from those who need So we have to take care of the prob- there were two areas that I con- it, and giving to those who do not need lem in two ways. First of all, we have centrated on very heavily, commit- it. to adopt a tax policy, and that is what ments to stop the punishment on sen- Let me read for a moment, Dave this tax bill does. It provides tax iors in this country and a commitment Stockman, the Reagan OMB Director, breaks for business men and women, to leave money in the pockets of work- who said, ‘‘The combination of incen- small business men and women, to cre- ing Americans. Tonight we have an op- tive-minded tax-rate reductions and ate new jobs and economic expansion portunity for seniors to roll back that firm budget controls is expected to in this country. Two, it provides tax unfair tax that was placed on them in lead to a balanced budget by 1984.’’ An- credits for men and women with chil- 1993 and to raise the earnings limits of other fantasy. dren so that they can get a tax break, seniors to allow them to stay in the I can tell you that we did not have a and then further, Mr. Chairman, it pro- workplace and to be productive in their balanced budget in 1984, and tax reduc- vides a backbone and a basis for the later years versus feeling like they are tions did nothing for the balanced first step in solving this deficit, and drain on us, and for the American fami- budget in 1984. that is a tax policy that will create lies we have an opportunity to leave H 4252 CONGRESSIONAL RECORD — HOUSE April 5, 1995 the money in their pockets rather than than capital gains tax breaks or anything else any dent in our $5 trillion national to bring it to Washington and decide in this bill to generate growth and ensure our debt. what to do here with it, as well as for Nation's future prosperity. Deficit reduction is a higher priority those families that take care of parents Equally troubling to its impact on the deficit than tax cuts. Put another way, it is a and grandparents, to make sure there is the fact this bill would exacerbate the grow- better way to lower interest rates, cre- is a $500 credit for the added burden ing disparity between the rich and poor. It con- ate jobs and economic growth than to and costs that they incur. fers most of its benefits on people who are al- enact the ill-timed tax cuts in these Mr. Chairman, the debate today is ready well offÐthose who least need a tax bills. between those who feel they know best cutÐwhile providing little gain to those of This House just voted, with my strong sup- and those that believe that parents and modest means who need tax relief the most. port, to amend the Constitution to require a seniors know best what to do with When this bill is combined with the spending balanced Federal budget. And yet one of our their money. Mr. Chairman, I, for one, cuts for programs that serve the poor that the first steps is to retreat. am willing to bet on parents and sen- Republican leadership has been promoting, It is not credible to link tax reductions to def- iors knowing best, and I urge my col- the effect is an unjust and unconscionable icit reductions as the sponsors of both propos- leagues to support this important piece shift of resources from the poor and middle- als would do. This have-your-cake-and-eat-it- of legislation tonight. class to the rich. too concept would not work because, once Mr. DINGELL. Mr. Chairman, I yield Under this bill, the average tax benefits for again, it postpones the tough decisions about such time as he may consume to the families earning over $200,000 annually would cuts, and, further, it creates uncertainty about distinguished gentleman from Califor- be $11,270; for families earning $50,000 to whether individuals and businesses can plan nia [Mr. BEILENSON]. $70,000, about $1000; for those earning on receiving tax breaks. (Mr. BEILENSON asked and was $30,000 to $50,000, $570; and for those earn- In my view, a number of the proposed given permission to revise and extend ing $0 to $30,000, $124. tax cuts have merit—but not now. I his remarks.) Over half of the total tax benefits, and three- have two kids in college, and know how Mr. BEILENSON. Mr. Chairman, I rise in quarters of the capital gains tax benefits, higher education expenses burden fami- strong opposition to the so-called Tax Fair- would go to the top 12% of families that earn lies. I applaud the Democratic leader ness and Deficit-Reduction Act, a bill which $100,000 a year or more. Some highly profit- for trying to offer relief. But not now. would produce the opposite result of its title's able corporations would pay little or nothing in I also support expanded eligibility for claims, and which is one of the most economi- income taxes. It is little wonder that Americans fully deductible IRA’s, a fair capital cally and socially damaging pieces of legisla- have not been clamoring for this bill, and that gains tax reduction, increased business tion that has come before this body in many they have indicated by large margins in recent expensing, and a credit for long-term years. polls that they would much prefer that Con- elderly care. But not now. This bill would reduce revenues by nearly gress reduce deficits than cut taxes. Let us stop the gimmicks and start $200 billion over 5 years, and by $630 billion One of the most unfair provisions in the bill the straight talk. Deficit reduction over 10 years. These tax cuts would constitute is the highly touted tax credit of $500 per now. Fair tax reduction when we can the largest increase in deficits since the 1981 child, which was intended to make it easier for afford it. That is a tough choice, and in tax cut, which was the root cause of most of parents to pay for food, clothing, and other my view, the right choice. the deficit problem we have been struggling costs of raising children. Because the credit is Mr. BLILEY. Mr. Chairman, I yield 1 with for the last decade and a half. They nonrefundable, the families who are most in minute to the gentleman from Califor- would obliterate much of the hard work we need of help in meeting these expensesÐ nia [Mr. HUNTER]. have done in recent years to close the huge about 10 million working families making less Mr. HUNTER. Mr. Chairman, I want gap between spending and revenues, and than $20,000 a yearÐwill receive less than full to just tell the gentlewoman from Cali- would make it much more difficult than it is al- $500 per child, or no credit at all. Meanwhile, fornia [Ms. HARMAN], my good friend, ready going to be to reduce deficits further. families with incomes of $200,000 annually, that there are 98,000 children in her dis- That difficulty cannot be overstated. With who, obviously, are not struggling to pay for trict, and their parents could certainly the loss of revenue from this bill, we would necessities for their children, would receive use this $500 per child tax deduction. need to cut spending by about $1 trillion over the full $500 credit. Working people understand that, and the next 7 years to reach the goal of a bal- Another particularly egregious provision is let me underscore a point that the gen- anced budget by the year 2002. It is probably the increase in the pension contribution re- tleman from Ohio [Mr. TRAFICANT] not possible to make such cuts; it is certainly quired of federal employees, which is the made so effectively when he talked not possible to do so without cutting payments equivalent of a 10 percent tax increase for our about blue-collar workers and how im- to the elderly, disabled and the poor; and with- nation's two million federal employees, the portant this bill is. out cutting funds for crime control, immigration great majority of whom have relatively modest Mr. Chairman, blue-collar workers control, environmental protection, highways salaries. This increased contribution is not cannot hire each other. They need to and airports, education and job training, and necessary to keep the civil service retirement have somebody who has enough capital many other critically important activities Ameri- system insolvent; it is included only because it who is not giving that money to the cans expect from their governmentÐmany of provides nearly $11 billion over five years to Government, to Uncle Sam, to be able which have already been cut to the bone in re- help pay for the bill's tax cuts. to buy that extra piece of equipment, cent years. I would note that this provision was rejected expand that facility, put those extra 2, To make matters worse, many of the tax by the Committee on Government Reform and or 3, or 5, or 10 people on the payroll, provisions are backloadedÐthey will cost Oversight, which has jurisdiction over this mat- and thereby give them some help, and more in the future than they will during the first ter, and efforts to allow a separate vote on it help their children, help their family few years. The capital gains inflation indexing, on the floor where rejected by the Rules Com- and also expand, ultimately, revenues the American Dream Savings Accounts, the mittee. to the United States. This is in many neutral cost recovery provisions, and the Mr. Chairman, the bill before us would exac- ways a blue-collar tax cut. phasing-in of many of the tax provisions will erbate our nation's serious budget deficit prob- Mr. Chairman, the smartest thing result in exploding revenue losses in the years lem and contribute to the disparity of wealth Democrats can do is vote for it; the beyond 2000. Compensating for that lost reve- among income groups. I urge our colleagues smartest thing President Clinton can nue will be increasingly difficult as time goes to reject this legislation. do is sign it. on. Mr. DINGELL. Mr. Chairman, I yield Mr. DINGELL. Mr. Chairman, I yield It makes no sense whatsoever to make it 11⁄2 minutes to the distinguished gen- 2 minutes to the distinguished gentle- more difficult to reduce Federal deficits. As tlewoman from California [Ms. HAR- woman from California [Ms. WATERS]. economists have been saying for years, re- MAN]. Ms. WATERS. Mr. Chairman, this ducing these deficits is the most important Ms. HARMAN. Mr. Chairman, I rise bill is not the answer to the real prob- step the Government can take to increase in opposition to both tax cut proposals lems of America. We all know that jobs and productivity over the long term. Cut- that will be considered today. middle-class America is worried. We all ting Federal borrowing would free up more of It is time to stop trying to kid our know that poor Americans continue to our Nation's limited savings for private capital. constituents. We cannot spend $630 bil- struggle. It is no mystery why this is We need sustained deficit reduction far more lion over 10 years on tax cuts and make so. Since the mid-1970’s wages have April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4253 stagnated. Corporate America has ex- 2000 to more than $450 billion over the next 5 ported our jobs overseas for cheap Mr. DINGELL. Mr. Chairman, I yield years, and keep rising after that. labor. As trade unions have been beat- myself the balance of my time. The budgetary impact of these cuts are kept en back, hard-earned benefits like The CHAIRMAN. The gentleman artificially low in the early years through ac- health coverage, pensions, and family from Michigan is recognized for 11⁄2 counting gimmicks. However, the out year im- leave have eroded. minutes. pact of the capital gains tax cut, the restora- Mr. Chairman, in the 1980’s, taxes in- Mr. DINGELL. Mr. Chairman, the tion of huge corporate depreciation loopholes creased on working class Americans. memories of my Republican colleagues and the repeal of the alternative minimum tax So the squeeze is on and politicians are are very convenient. They have forgot- for corporations is enormous. These changes, feeling the heat. ten the last time we had a Republican which will principally benefit the wealthy, are We could go right at the problem, but tax cut in this body. That multiplied expected to cost: $24 billion between 1995± the Republicans have resorted to cheap the national debt by better than 4.5 2000; $221 billion between 2001±2000. politics. They have gone back to old- times, from about $700 billion to $4.5 As my colleagues may or may not know, the fashioned, trickle-down economic the- trillion. They have forgotten most of corporate depreciation tax breaks were elimi- ory: reward the rich and pray. that went to the rich, not to the poor, nated, and the alternative minimum tax was Mr. Chairman, the capital gains tax and not to the middle class. They have set up in 1986 with strong bipartisan support cut contained in this bill would yield also forgotten that six million jobs and the backing of President Reagan. This was done in response to the outcry of the over 75 percent of its benefits to those were created by the Clinton budget; American people who were appalled by the earning over $100,000 a year. Low-and that that budget cut the national defi- fact that large corporations with enormous middle-income families may need tax cit by $700 billion. They have also ig- profits were gaming depreciation loopholes set relief, but the Republican plan goes to nored the fact it gave a tax cut in the up in 1981 to avoid paying taxes and in some President’s budget to those who had families earning up to $200,000. cases receive a rebate. According to the Citi- need. Somewhere in between 16 million To make matters worse, last week zens for Tax Justice: and 20 million Americans were re- the Republicans deleted a Senate pro- AT&T received $636 million in tax rebates moved from the tax rolls and were posal to get tough on billionaires who from 1982 to 1985 despite earning $24.9 bil- given tax reductions in each and every renounce their American citizenship to lion in pretax profits. Congressional District, including their avoid paying capital gains taxes. The DuPont had $3.8 billion in 1982±1985 own, by that particular tax package. Republican leadership placed in a pro- pretax profits supplemented by $179 million in There memories are most convenient vision protecting a $63 million business rebates. on these matters. deal for the Speaker’s friend, Rupert General Dynamics had four out of five no The hard fact is that Voodoo Eco- Murdoch. This is not a strategy for tax years from 1981 to 1985. In addition, its economic opportunity. It is indeed nomics, Trickle-Down Economics II, $2 billion in pretax profits from 1982±1985 class warfare of the rich against poor which this tax package happens to be, were augmented by $91 million in tax rebates. and working-class and middle-class is nothing more or less than a raid on Under this bill, the secretaries and mailroom Americans. the poor, a sop to the rich, and a bene- workers at many of our most profitable cor- This Congress needs to reject Wall fit to those who have no need of tax ex- porations will be required to pay more in taxes pense, sweated out of the hides of those Street’s solutions to Main Street prob- than their employers. who have the least. It is a cut in school lems. Cheesy tax cut promises only Many of the specific spending cuts to fi- lunch programs, education, and every make Americans cynical about Govern- nance these tax breaks have not been identi- other program that has meaning, not ment and politicians. Until we begin to fied. We hear that they will be achieved large- only to this generation, to the young address basic American concerns, this ly through lowering the discretionary spending people of this country, but the young institution will continue to suffer in caps already in place. However, that still people of the future. I urge the rejec- the public’s eye. doesn't provide a clear answer to the ques- tion of this rotten Republican tax I say to my colleagues, ‘‘Don’t play tionÐwhat cuts will be made to finance this package. with the fears of anxious Americans. package and the better than $1 trillion in sav- Mr. Chairman, the tax package before us is Let’s get serious about our economic ings needed to balance the budget by 2002? fiscally irresponsible and distributionally inequi- problems. Let’s reject this Republican The only suggestions we have seen so far table in the extreme. It commits this Nation to charade. Let’s vote this turkey down.’’ from the Republicans are harsh spending cuts a budget structure that runs counter to deficit Mr. BLILEY. Mr. Chairman, I yield 1 that strike right at the most vulnerable in this reduction. It also leaves behind those most in minute to the gentleman from Penn- countryÐthe elderly and children of this Na- need of tax reliefÐworking middle class fami- tion. In a rush to keep a political promise that sylvania [Mr. GEKAS]. lies. Better than half of the cuts go to people clearly favors the wealthy, my colleagues have Mr. GEKAS. Mr. Chairman, I want to earning more than $100,000 a year. reinforce in my brief time the notion slashed funding for the school lunch, child nu- The last time the American people were trition, summer youth employment, and edu- and the truth that this is truly a mid- promised both a balanced budget and a tax cation programs. Seniors have also watched dle-class tax cut that we are undertak- cut was in 1981. That plan, which was put for- as home heating and housing assistance has ing here, not only the $500 portion up ward by the patron saint of my colleagues on been eliminated. And today, they are faced for families earning up to $200,000, be- the other side of the aisle, President Ronald with significant cuts to the Medicare program. cause nobody knows where the middle Reagan, led to an explosion in deficit spend- As I have mentioned, the middle income class begins, nor it ends, but we know ing. More than a decade later, the national taxpayer is left behind by this package. In fact, that most of our people fall in that debt has increased three-fold to better than $4 34 percent of America's children are not cov- bracket between zero and $200,000. So trillion. During that same period, middle class ered by the middle class tax cut, because their that is a middle-class tax cut, but won- families have seen their wages stagnate, while family's incomes are too low. Only 1 percent der against wonder, the capital gains wealthy Americans enjoyed substantial gains. are denied a credit because their family's in- reform that is built into this bill is My colleagues across the aisle have clearly come is too high. also a middle-class tax cut. not learned the No. 1 rule of holes: When you Middle income families are also being tar- Why do I say that? In the last full find yourself in one, stop digging. If they had geted by cuts in student aid programs. My col- year of capital gains reporting in 1985, learned this lesson, we would not be debating leagues have proposed cutting $13 billion in 75 percent of all the people who earned this unwise legislation, that returns us to the college assistance by eliminating or restructur- $50,000 or less had an item of capital failed supply side economic policies of the ing student loan programs. As a result, the av- gains in their tax returns, and if that is past. erage cost of a college loan will rise by not enough, we also learned that in The costs of this measure are truly stagger- $4,500. In addition, students will now be that same capital gains year people ingÐ$180 billion over the next 5 years. At a forced to pay interest from the first day they earning $100,000 or less, hundreds of time when one-seventh of the Federal budget arrive on campusÐnot 6 months after gradua- them had a capital gains item in their is needed to pay interest on the debt, we can tion as they are currently allowed to do. tax return. Capital gains is good for ill-afford this extravagance. However, the long- I cannot support the fiscally irresponsible tax the middle class. term burdens are far worse. Costs skyrocket policy laid out in H.R. 1215. This legislation H 4254 CONGRESSIONAL RECORD — HOUSE April 5, 1995 will help the privileged few who already have I stand behind no one when it comes to im- it is these that create more jobs in my State plenty get more at the expense of everyone posing and enforcing tougher penalties for than any other employer. We need those jobs. else. It will also further mortgage our children's those engaged in child pornography. During I can't afford to vote for something here that future by exploding the Federal budget deficit the 103d Congress, I signed the amicus brief will hurt, not help them. Let me quote to you at a time when we should be focusing on pay- before the Supreme Court to force the U.S. from a letter from the U.S. Small Business Ad- ing it down. I urge my colleagues to defeat the Department of Justice to stop weakening ex- ministration, dated April 3, 1995: bill. isting child pornography laws. We won that Specifically, Sec. 6301 of H.R. 1215 (or H.R. Mr. BLILEY. Mr. Chairman, I yield myself battleÐand Stephen Knox is behind bars for 1327) * * * creates a 50 percent capital gains the balance of my time. exploiting children in sexually explicit photo- exclusion for individuals but, in doing so, re- The CHAIRMAN. The gentleman from Vir- graphs which he had been peddling to per- peals the special small business capital gains ginia is recognized for 2 minutes. verts nationwide for huge profits. Yet in this tax incentive in the existing law (P.L. 103–66, Sec. 13113). This will have the effect of rais- Mr. BLILEY. Mr. Chairman, it has been a bill, giving House Members a chance to tough- en those laws, I will have no separate vote on ing the taxes of future investors in qualify- long debate, it has been a good debate, but ing, high growth, small businesses from the I think now is the time to reward Americans the issue. previous maximum rate of 14 percent to the and to contrast two philosophies, our philoso- If given a separate vote on the issues, I new rate of 19.8 percent. This may be the phy on this side of the aisle that the people would also strongly support adoption and fos- only category of taxpayer to have its taxes who earn the money should keep the money, ter care enhancements, not to mention tax de- raised under the capital gains provisions of rather than the other way around, that the duction for home office expenses, which I co- the proposal. government knows best how to spend the sponsor in separate legislation. She goes on to say: money. In the 103d Congress, I cosponsored a bill, ** * the repeal is troubling for small busi- Mr. Chairman, we will reduce the deficit. We introduced by my friend and colleague Rep- nesses for two reasons. First as a matter of resentative FRANK WOLF of Virginia, to give an will get on a slope to a balanced budget in even-handed tax policy, it seems incongruous additional $500 per child deduction to low- and to raise the tax rates of those who invest in 2002. And for every $1 billion we reduce middle-income parents. That provision is in the research, plant and equipment of a high- spending, we pay for a $500 tax credit for two this bill. Why can't I vote for it? risk, emerging growth company while re- million citizens. Two reasons: First, the tax credit is given to warding non-productive speculation in real Mr. Chairman, this is a good bill, it is a good families with incomes as high as $200,000 a estate or the stock market with substantial tax reductions. debate, this bill ought to pass, and I urge my year; and secondly, it isn't being brought up colleagues to support the bill and reject the as a separate vote, but is included in the bill So to all my colleagues whose districts are substitute. as a whole with no amendments allowed. comprised of many small businesses, which Mr. RAHALL. Mr. Chairman, I rise in opposi- Who wouldn't support making accelerated create the jobs our Districts need, but not so tion to H.R. 1215, the so-called Tax Fairness death benefits to the terminally ill tax-free? But many big businesses, beware of voting for this and Deficit Reduction Act of 1995. In the first I can't vote in favor of this, because it too is bill because of the much-touted reduction in place, it isn't fair, and in the second, it does incorporated into the bill as a whole. the capital gains tax for individuals. If you nothing to reduce the deficit, unless you live in Who wouldn't support an Eldercare tax don't believe me, read the two-page letter a house of smoke and mirrors. credit, or tax incentives for long-term care in- from the Small Business Administration. But before I go into the many reasons why surance? I would vote for these, if they were Another provisionÐreducing and ultimately I cannot vote for this bill, let me tell you about offered separately. Too bad they are incor- repealing the Alternative Minimum Tax for the good things that are in it, and for which I porated into the billÐone vote onlyÐup or business. This AMT was put into the 1986 tax would vote if they were offered separately. down. reform legislation because we learned that This bill contains an increase, over 5 years, Yes, Mr. Chairman, there is much in the bill more than 130 companiesÐfrom A to XÐ in the earnings limitation for senior citizens to recommend it. If the bill were being offered Aetna to Xerox, not only didn't pay any taxes who are receiving Social Security benefits, but under an open rule, allowing separate votes between 1982 and 1985, but that many such who still work at jobs to supplement their low on initiatives favored by a majority of Members companies received tax rebates. Companies incomes. regardless of party, then perhaps I couldÐ such as these will be back on the ``no tax'' I have been a cosponsor of this earnings many Members couldÐvote for them. As it is, gravy train if this bill passes as is. limitation increase legislation for years. It we cannot. Proponents of H.R. 1215 will tell you it won't hasn't come up in the House for a voteÐde- Now that I have reiterated the provisions in cost but $188 billion. Treasury estimates put spite my signing a Discharge Petition last year the bill that would have my support if voted on the cost at near $700 billion over 10 years. to force it to a vote. Increasing, almost three- separately, I will tell my colleagues what is in You might ask: How is the majority going to fold, this earnings limitation over 5 years to the bill that prevents me from voting in its pay for this tax cut bill? enable working seniors to earn as much as favor. First, they would ``save'' $100 billion in un- $30,000 a year before their earnings are offset First of allÐrecent surveys show that Amer- identified cuts in discretionary programs. While against their social security checks, is a God- ica prefers that we keep on reducing the defi- the programs haven't been precisely identified, send to seniors. Regrettably, because the ma- citÐas we have done since 1993Ðthe first the Budget Committee chairman, in his budget jority here in the House will not allow a sepa- time the deficit has declined three years in a proposal, H.R. 1219, has a list of ``proposed rate vote on itÐI am forced to vote against it row since Harry Truman was President. They areas'' in which cuts should be made. What because of other unacceptable provisions con- don't want a tax cutÐand especially since cuts? Student aid comes to mindÐ$13 billion tained in H.R. 1215. many of them are now aware that this so- in cuts. Repeal of the Davis Bacon Act comes Another provision, which I have also co- called tax cut won't help them because they to mind. Repeal of the Essential Air Service sponsored in the past, is the phased-in repeal aren't rich enough. How rich is rich enough? comes to mind. There are many, many other of the 1993 new taxes on social security bene- Earning over $200,000 a year is rich enough. discretionary safety-net programs included in fits for those singles earning more than That will get you about $11,000 in tax cuts. the $100 billion cut. $34,000 a year and married couples earning But if you earn under $30,000 a year, you Secondly, they would claim the $62 billion more than $44,000 a year. Had this new tax might get about $124 in reduced taxes. ``saved'' when they passed, without my sup- come before me for a separate vote in 1993, The so-called tax cut for middle America port, their so-called Welfare Reform billÐa bill I would have voted against it. Now that its re- isn't. That is, middle-income working Ameri- that makes war on innocent children and preg- peal is before this House for a vote, I must cans will not realize much of a benefit from nant women, and senior citizens. vote against it because no separate vote is any of the tax-cuts proposed. Fifty-one percent Thirdly, they would claim the $17 billion in being allowed. of all tax cuts and tax credits in the bill go to Rescissions recently passed by the House, IRA Accounts. I have cosponsored and sup- the richest people and corporations. For ex- which I have already rejected. ported new IRA's which permit early with- ample, while I could and would support a re- Fourth, they would find another $10.8 billion drawal without penalty for such things as first duced capital gains tax for individuals holding in ``savings'' under Medicare by cutting both time home buyers, college costs, extraordinary assets they wish to sell, I cannot in good con- services to seniors, and payments to doctors medical expenses, and even for periods of un- science support the 50 percent capital gains and hospitals. employment. I would very much like to vote in exclusions for individuals because of its seri- Fifth, they would find another $10.5 billion in favor of this new IRA. But I can't. It isn't being ous, adverse effect on small businesses. West new payroll taxes for Federal employees. This brought up as a separate vote. Virginia is made up of small businessesÐand small segment of our working populationÐ1.8 April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4255 million Federal employeesÐwould be ex- Corporate CEO's can exceed $6 million a year there are a lot of god ideas in thereÐbut none pected to pay more into their pension plans, in many cases. of them should be enacted if they intentionally and get less out when they retire. These peo- Vote in favor of H.R. 1215? I think not, Mr. harm the children. The biggest part of the con- ple are being given a tax increaseÐto help Chairman. A vote in favor of this bill, among tract that supposedly saves the most money is pay for a tax cut for the wealthiest population other things, would have me vote for the heart that which reduces and takes away support for in the United States. of the FY95 Budget Resolution which hasn't children, in their nutrition programs, in their The Committee on Government Oversight even been brought before the House yet this child care, in Head Start, in food stamps, in and Reform couldn't muster enough votes yearÐcutting $100 billion randomly among AFDC, in Medicaid. A literal war on children. among its majority party to report this bill discretionary programs. These cuts, of course, A tax cut bill should be one which provides changing the Federal Retirement System and have not been specifically identified, but they relief for America's struggling familiesÐand yet it has been plunked down in the middle of point to cutting $13 billion in student aid, and that alone should remain a top priority. The a so-called middle-income tax cut bill. repealing the Davis Bacon Act, the Economic power to un-tax is the power to truly rescue The Congressional Research Service, in a Development Act, the Appalachian Regional those who need rescuing. Regrettably, H.R. report issued March 18, 1995, clearly stated Commission, and many others. This is a pig- 1215 does none of these things. that: the Federal retirement system is self-fi- in-a-poke and I am not buying it. When H.R. I urge my colleagues to reject this bill by nancing and its costs can never exceed its in- 1219Ðthe budget resolutionÐcomes to the voting against it. comeÐnow or in the future. In other words, it floor, the majority is going to get up and tout Mr. BORSKI. Mr. Chairman, I rise in strong ain't broke and it don't need fixing. the passage of H.R. 1215Ðsaying: Gee, guys opposition to H.R. 1215, the so-called Tax The $62 billion in claimed ``savings'' in this and gals, you've already voted to cut $100 bil- Fairness and Deficit Reduction Act. Mr. Chair- bill to help pay for the tax cut, comes directly lion when you voted for the ``crown jewel'' of man, this bill is the farthest thing from being from cuts in school lunches and breakfasts, in the Contract With AmericaÐthe tax cut pro- fair. The tax cuts included in this plan over- reductions in WIC for pregnant women and posal, so step right up and vote for the budget whelmingly benefit the highest-income Ameri- children, from denying assistance to children billÐit is one and the same. cans and will be paid for with cuts in programs of teen mothers under 18 years of age, and A vote in favor of H.R. 1215 would have me important to working people and senior citi- from denying assistance to children whose voting for $17 billion in rescissionsÐwhich I've zens. mothers have other children, or who have already rejected once. been on welfare more than 60 months. All this A vote in favor of H.R. 1215 would have me The Treasury Department's analysis of this amounts to an economic jihad against help- voting for $62 billion in welfare reform cuts to plan shows that the tax cuts in this bill will pri- less children. If government won't take care of programs that serve at-risk women and their marily benefit wealthy Americans. According to them who will? If not now, when? When it's infants, hungry school children and the elderly the Treasury, over half of the tax cuts in this too late? When children have been arrested in who need home heating assistance to keep proposal benefit only the top 12 percent of their mental and physical development due to from freezing to death in the winterÐa bill I families with incomes over $100,000, and 20 a lack of adequate and proper nutrition? have already rejected. percent of the cuts benefit only the top 1 per- Amazing to see this happening to children, A vote in favor of H.R. 1215 would have me cent of families with incomes over $350,000. when all we've heard from the past two years voting for $10.8 billion in Medicare cuts, both In addition, this bill would eliminate the Alter- is how to encourage preventive health care to in services to the elderly and to hospitals and native Minimum Tax [AMT] allowing huge cor- keep down health care costs. physicians. porations like Mobil Oil and Texaco to pay no Last, while I reiterate that this bill's stated A vote in favor of H.R. 1215 would have me taxes at all. cost of $188 billion will grow to nearly $700 voting to require 1.8 million hard-working Fed- Mr. Chairman, I do not believe that the high- billion over 10 yearsÐseven times more in the eral employees to pay more into their retire- est-income Americans and corporations need second 5 years than in the first 5 yearsÐlet ment system and get less out of it upon retire- big tax give-aways from the Federal Govern- me also state another provision lacking in the ment. It would add $905 more in payroll de- ment. The problem in this country is not that bill that would make it much more acceptable, ductions for Federal employees each year, in wealthy Americans do not have enough if that were possible, and that would be the order to give an $11,000 tax cut to individuals money, but that working Americans do not elimination of corporate welfare. earnings more than $200,000 a year. This is earn high enough wages. This bill does noth- I am a cosponsor of legislation, known as a blatant new payroll tax on working Ameri- ing to address this fundamental problem for the ``Corporate Welfare Reduction Act'' to cans to help pay for a tax cut for the richest working Americans. In fact, it will make mat- eliminate corporate welfare. This legislation 12 percent of 260 million people who live and ters worse for them. will close a $200 billion loophole that buries work in the United States. It pits 1.8 million The Republicans have proposed to pay for corporate welfare in our tax code in the form Federal workers and retirees against the rest these tax cuts for the wealthy, which will cost of giveawaysÐwhile we continually ask Ameri- of the country. Talk about David against Goli- nearly $200 billion over 5 years and $600 bil- cans to sacrifice more and more in higher and ath. lion over 10 years, by cutting deep into pro- higher taxes. We sought to make our bill in Those of us who were here in 1981, have grams vital to working Americans and senior order under the Rule, so that Members could been down this road of trickle-down, borrow citizens. vote for this legislation while considering the and spend economics. The economic policies Their plan will repeal the Davis-Bacon Act tax cut bill. The Rules committee rejected our of the 1980's made us into a debtor nation for which ensures a decent wage to laborers request, yet it would have given us the chance the first time in our historyÐwe now owe for- working on federally funded or assisted to ``find'' $200 billion to cut out of our tax eign countries more than they owe us. We projects. Repealing the Davis-Bacon Act will code, and perhaps make it unnecessary to cut saw those economic policies translate into a make small contractors and their employees programs for the poor, low-income working quadrupling of our national debt. vulnerable to wage busting by outside compa- Americans, the elderly, and school children. Let's not go down that road again. nies. And just this past week, Mr. Chairman, the In conclusion let me say this: Any tax cut bill In addition, H.R. 1215 will cut over $11 bil- majority adamantly opposed requiring those ought to be tied to deficit reduction, through lion from Medicare. This Medicare cut will persons who renounce their citizenship in this carefully crafted spending cuts, not by using a force premiums for senior citizens to increase country and take their assets overseasÐtax meat-ax approach, so that we don't give par- by 25 percent of program growth. With Medi- freeÐto pay tax on their assetsÐon the profits ents money today that their children will have care growing by over 10 percent a year, it will they made doing business in the United States to repay in the future in the form of a mam- not be long before Medicare premiums eat under our free enterprise systemÐbefore they moth interest on a mammoth national debt. away at senior's Social Security check and are allowed to renounce their citizenship. It Let us save $200 billion by eliminating tax force many seniors below the poverty line. was deleted from the bill, H.R. 831. loopholes protecting corporate welfare in our This bill will also impose a tax on Federal I am a lot more concerned, Mr. Chairman, tax code such as that embodied in the Cor- workers by raising their retirement contribution about Child-Fare than I am about Corporate porate Welfare Reform Act which I and my rate by 2.5 percent. This provision will raise fare. How can the richest Nation on earth, the colleagues have introduced, instead of taking taxes on the average Federal employee by only true Democracy, think of declaring warÐ $200 billion out of the mouths of hungry kids. $750 a year. I feel it is unconscionable to the equivalent of an economic jihadÐon chil- Let us concern ourselves with child fareÐ raise the taxes of lower-middle and middle-in- dren so that greedy corporations can get rich- not protecting welfare for the wealthy. come families by nearly $11 billion to pay for er, fat cats can get fatter, stockholders' divi- I said early on, when the Contract With tax cuts for the wealthy. H.R. 1215 also will dend checks can get bigger, and salaries of America was first presented to the House: reduce the pensions of Federal workers by H 4256 CONGRESSIONAL RECORD — HOUSE April 5, 1995 changing the formula that is used to determine married couplesÐinto a tax-free, nondeduct- Roberts amendment should have been ruled their pension benefit. ible ADS account. Contributors will pay in- in order. At least 102 Republican Members In addition, the Republicans have targeted come tax when funds are deposited, but not and many Democrats wanted to vote for the student loans. Students in my State of Penn- when withdrawing the funds, effectively mak- Ganske/Roberts amendment. It was a reason- sylvania will lose $830 million in higher edu- ing the interest on the account tax free. Con- able and fair amendment which helped main- cation assistance. While education is becom- tributors may make tax-free withdrawals of tain equity in this bill for people who really are ing the key to higher wages in a changing funds after 5 years for retirement income, pur- middle-income Americans. Those provisions, economy, Republicans will raise the cost of at- chase of a first home, education expenses, or limiting the $500 per child tax credit to families tending college and force many students out medical costsÐincluding the purchase of long- earning $95,000 per year or less, were in- of school altogether, denying them the only term care insurance. tended to fine tune this measure toward as- chance they have to secure a decent living. Increasing the exemptions under the Estate sisting those we have pledged to helpÐthe Mr. Chairman, I believe it is absolutely un- and Gift tax from $600,000 to $750,000 to ac- middle income. just that Republicans are even considering count for the ravages of inflation since the cur- A $95,000 per year income is a much more cutting these highly successful programs for rent exemption was first enacted and then in- realistic cut-off for determining who is middle working Americans and seniors in order to cut dexing the exemption to inflation. Families and income. Try telling the people of Nebraska taxes on the wealthiest Americans and cor- small business owners have been hit hard by that families earning up to $200,000 are mid- porations. Those who say that these tax cuts an exemption which has not been indexed for dle income; you won't have much success. on the wealthy will grow the economy and inflation. They have seen their ability to pass This is a very substantial tax cut for wealthy trickle down to the rest of the country had bet- on family businesses and farms diminished by and upper-income AmericansÐa loss of reve- ter read their history. This supply-side eco- the increasing value of the property. By in- nue that should have been devoted to reduc- nomics logic was tried under the Reagan ad- creasing the exemption we make up for past ing the deficit. And I might add, Mr. Chairman, ministration and was a complete failure for inflation and indexing the exemption assists my informal survey of my constituents shows working Americans, whose incomes stagnated families and small businesses down the road. that, on an 8 to 1 ratio, they believe that sav- and whose taxes increased. It was also the Increasing the depreciation on equipment ings from reduced expenditures should first be root cause of our enormous deficit problems and inventory for small businesses. The cur- used for deficit reduction. Provisions in this bill today which continue to threaten our future. rent depreciation limit of $17,500 is increased The American people will not be fooled again. over 4 years to $35,000. This increase pro- like the repeal of the Alternative Minimum Tax They know that this is merely a give away to vides some relief to small businessesÐallow- for corporations are not helpful to middle in- upper income Americans and special interests ing them to expand and update, thereby creat- come Americans and it is bad tax policy which and they are the ones who will have to pay. ing new jobs and a stronger economy. reverses recent reforms. Savings achieved by I urge my colleagues to defeat this highly un- Increase in the Social Security Earnings the cuts made in this measure should either fair tax bill. Limit. The bill raises the current $11,280 earn- benefit people who truly are middle income or Mr. BEREUTER. Mr. Chairman, this Mem- ings limit for seniors to $30,000 over 5 years. go toward reducing the deficit. They should ber rises in reluctant support of this measure. This change which I have long supported not provide additional tax benefits to corpora- This Member will vote for H.R. 1215, as it eliminates what amounts to a 33-percent mar- tions and the wealthy. does contain many positive provisions, but he ginal tax rate on seniors earning up to Mr. Chairman, despite my concern about remains concerned that this bill was not al- $30,000. It is ridiculous that we punish seniors some of the provisions of this bill, the positive lowed to be made better through the amend- who want to remain productive and pay more reform elements just mentioned on balance ment process. This Member believes the Sen- income taxes past the age of 64; this measure easily make this a good and needed bill. This ate will improve the bill. Sounds emanating ends that punishment. Member urges its passage, while lamenting from the Senate indicate a more equitable and Tax incentives for private long-term health that all of the provisions in the bill are not as reasonable approach on some expected parts care insurance. To encourage people to pro- effective and reasonable as those positive of this omnibus tax-cut legislation. And Mr. vide for their long-term care needs, the bill ones that this Member has highlighted. Chairman, it must be improved before this treats long-term care insurance as a tax-free Mr. GILMAN. Mr. Chairman, although there Member will support a conference report. Spe- employee benefitÐup to $73,000 annuallyÐ are many worthy provisions in this measure, cifically, an improved bill must target its tax like regular health insurance; allows life insur- H.R. 1215, I must take exception to the inclu- breaks toward truly middle income Americans. ance policies to offer tax-free accelerated sion of title IV, the Congressional and Federal Still, this Member does support this bill be- death benefits in the event of terminal illness Employee Retirement Equalization Act. It is cause of the many positive steps it will take to or confinement to a nursing home; allows tax important to note that due to a lack of consen- restore a sense of tax fairness to the Amer- free withdrawals from IRA's, 401(k) plans and sus by Members of both parties, these retire- ican people. These include: other pension plans for the purchase of long- ment provisions, originally H.R. 1185, never A 50 percent cut in the capital gains tax and term care insurance; and allows deductions for came to a vote in the Committee of Jurisdic- prospective indexing for inflation. After years long-term care premiums. tion. Now these same provisions are being of taxing individuals and businesses at the Repeal of the Social Security Benefits Tax. brought to the floor under a closed rule and as current rate, without any relief through index- This measure reduces, over 5 years, the part of a separate legislative package. These ing for inflation, this cut and the beginning of amount of Social Security benefits subject to actions stand in direct contradiction to the indexation to account for the ravages of infla- income tax back to 50 percent, eliminating the committee process and have in effect, re- tion is the least we can do. increase to 85 percent which was passed as stricted debate on an issue that will affect Elimination of the Marriage Penalty. The bill part of President Clinton's tax increase pack- thousands of hard working families in my dis- at long last would provide married couples age, passed by the Democrat controlled Con- trict. who file joint returns with an income tax credit gress in 1993. Elderly citizens earning more The inclusion of title IV in a tax reduction bill of up to $145 to at least reduce the marriage than $34,000 individually, or couples earning seems ironic because, in essence, title IV is a penalty for most couples. This provision ends more than $44,000 will now be taxed on 50 tax increase on Federal workers. Title IV man- the inequitable and irrational current policy of percent of their benefits, not 85 percent as dates a 2.5 percent payroll tax increase on taxing married couples more than if the couple they were under the Clinton plan. Federal employees and institutes a fundamen- filed separately. It is notable that this bill elimi- Adoption Assistance. The bill creates a re- tal change in the calculation of each worker's nates this problem, which was exacerbated by fundable tax credit for adoption expenses. The retirement benefits. The Congressional Budget the Clinton tax increase of 2 years ago. credit starts at $5,000 per child and is propor- Office estimates that this change will cause Expansion of existing IRAs and creation of tionally reduced to zero for incomes exceeding Federal workers to suffer a 4 percent de- a new type of IRA. The measure modifies $60,000, eliminating it totally for adjusted crease in future pension benefits. In this same present law governing deductible IRAs to per- gross incomes over $100,000. bill which grants a tax benefit of $500 per child mit annual deductible contributions of up to Despite these many positive provisions this for families with an upper limit income of $2,000 for each spouse, thus finally eliminat- Member's support is reluctant because only $200,000, title IV will cost an additional $750 ing a penalty on spouses who choose to be one amendment was made in order under the per year for the family of a Federal employee homemakers. Additionally, the measure pro- rule. This closed rule violates the spirit of the earning an average salary of $30,000 per vides for creation of American Dream Savings Contract With America since it calls for full year. Along with many of my constituents, I [ADS] accounts. Individuals will be able to and open debate and a clear and fair vote on believe this is an unfair burden to place on our contribute up to $2,000 per yearÐ$4,000 for each of the 10 Contract items. The Ganske/ dedicated Federal workers. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4257 Most importantly, the central issue of the eating away at our children's future. However, ican people asked for in November, and I am debate over title IV is the issue of honoring the solution to this problem does not lie in pleased that the House is acting on this legis- the commitments we have made to Federal handing over our nation's ``crown jewels'' to lation, as pledged, within the first 100 days of employees. When Congress restructured the those who need them the least. the 104th Congress. Federal Retirement System in 1986, barely 9 Mr. KLECZKA. Mr. Chairman, this is a sad The family is the core of our society, and years ago, we set up the FERS system on a day for this country . Today, the Republicans the Congress should support our nation's fam- self-sustaining basis and established a system passed what should be called a ``Deficit Accel- ilies, not penalize them. We support families for honoring the liabilities of the old Civil Serv- eration Bill'' under the guise of a tax cut bill. with this legislation by addressing the so- ice Retirement System. At that time we prom- This measure will not receive my support called ``marriage penalty'', where married cou- ised our Federal employees that this would be because it is a Trojan Horse. It sounds and ples pay more in taxes than they would as two the last time we would alter their pension plan. looks friendly, but it will have dire con- individuals. I have long been a critic of the Many hard working families relied on that sequences by exploding the federal budget marriage penalty, and believe that the govern- commitment and planned their families' futures deficit we have worked so hard the last 2 ment should not punish people for getting based on that commitment. years to contain. If passed into law, this meas- married. We should live up to the contract we have ure would entail a $630 billion loss to the Fed- H.R. 1327 is pro family because it will help made with our Federal workers. Title IV of this eral Treasury over the next 10 years. That is this same couple when they have children by measure breaks that promise. inexcusable. providing a $500 per child tax credit. If they Regrettably, title IV has been included within We have a debt of $4 trillion. We have an- choose to adopt a child, this bill establishes a a tax and spending reduction bill which in- nual deficits estimated to rise in future years refundable tax credit for adoption expenses. cludes many positive proposals, including: A due to demographics. Moreover, we are $1.2 This same family will also benefit from the cre- tax credit for long-term care, the establishment trillion short of the balanced budget so many ation of the American Dream Savings Ac- of an American dream savings account, relief of us want to achieve over the next 7 years. count. Individuals can contribute up to $2,000 of the marriage penalty tax, IRA deductions, Cutting taxes in this manner and at this time a year into these accounts. They can then and capital gains benefits and reductions. is the absolute height of folly. make tax-free withdrawals if used for retire- These tax cuts are fiscally responsible. Of This bill is the same mindset as the trickle- ment income, for a first time home purchase, course that tax cuts as a whole reduce Fed- down, supply-side tax cuts made during the for post secondary education, for medical eral revenues, that is what tax cuts do. How- early 1980's. Those tax cuts, along with mas- emergencies, or purchasing long-term care ever, families in my district deserve a tax cut sive defense spending increases, got us into health insurance. Make no mistake about it, and deserve to have Federal spending reined this fiscal mess. Those tax cuts are the reason tonight we are helping families buy their first in. Accordingly, this legislation will accomplish each and every child born in this country is home, educate themselves or their children, both, cut spending that needs to be cut and born about $20,000 in debt. They are the rea- and plan for their future medical needs. While using those savings to reduce taxes for Amer- son we pay 16 percent of our budget on inter- the initial deposit is taxed, by allowing interest ican families and businesses. est payments on that debt. in these accounts to accrue tax free, we will Accordingly, I will vote for passage of this My constituents have told me over and over foster the American dreams of home owner- measure, despite my objections to the provi- that they want us to concentrate on cutting the ship, a better job, and retirement security sions of title IV. deficit first. They have said so consistently, while increasing our nation's savings rate. Mr. COSTELLO. Mr. Chairman, tonight, the and I agree with them. That is why the Deficit When families start to age, H.R. 1327 pro- House is being asked to approve large and Acceleration Bill is not just wrong, but morally vides a $500 refundable tax credit for individ- growing tax cuts that make the goal of bal- objectionable. It robs our children and our uals who care for a disabled parent or grand- ancing the budget farther and farther out of grandchildren of their futures. And, it ruins any parent at home. Families will benefit because reach. The Republican ``Contract with Amer- chance of responsibly achieving a balanced this legislation encourages people to plan ica'' promised to balance the budget. How- budget. ahead for their long-term care needs, by al- ever, it does not make sense to make drastic This bill offers huge tax benefits to the lowing tax-free withdrawals from IRAs, 401(k) and painful cuts in order to provide a tax wealthy and precious little to those who could plans, and other qualified pension plans so break to wealthy Americans before we get se- use themÐhard-working, middle-income they can purchase long-term care insurance. rious about deficit reduction. Americans. Nearly two-thirds of the tax bene- Also, H.R. 1347 allows a tax deduction for While this bill pays for the tax breaks over fits provided by the Deficit Acceleration Bill will long-term care premiums, and encourages a 5-year period, after five years the costs ex- go to those earning more than $75,000 a year. employers to provide these policies by treating plode, and the federal deficit will actually in- Moreover, the bill gives people who make up them as a tax-free employee benefit like regu- crease. The long-term result of this bill will be to a quarter million dollars unneeded tax relief. lar health insurance. an increase in the deficit by $630 billion over The tax cuts will amount to nearly $1,000 a As the Representative of Florida's Tenth 10 years. This would be the second largest month for the average household with children Congressional District, which is home to one deficit increase in history, behind only the that has income over $200,000, but less than of our Nation's largest populations of senior 1981 tax cuts. $66 a month for those that earn between citizens, I am also pleased that H.R. 1327 will Mr. Speaker, this is epitome of hypocrisy. If $30,000 and $75,000. That is just $16 a week, remove a number of onerous burdens on older Republicans were serious about deficit reduc- which is not enough to take a family to the Americans. One of the first bills I ever intro- tion, as they claim, the spending cuts included movies for a matinee these days. duced in Congress would have repealed the in this tax package would be applied to the It is my hope that the next step is for the Social Security earnings limitation, and I have deficit, rather than financing a huge tax break Senate to reject this Deficit Acceleration Plan consistently cosponsored legislation that would for the wealthy. so we can work together on a bipartisan basis overturn the unfair limit on outside income This tax-and-spending-cut package will cut to address our long run deficit problems. As which penalizes older Americans for working. programs for the most vulnerable in our soci- Vice President Gore said this week, ``On Day While the former House Leadership failed to ety to pay for tax breaks that will largely bene- 101 we're going to start fixing the damage that allow us to debate this legislation on its own fit wealthy American citizens. This bill has was done during the 100 days of the Repub- in the House, and prohibited us from raising it been called the ``crown jewel'' of the Repub- lican Contract.'' There is no piece of legislation as an amendment to any other pending legis- lican ``Contract With America,'' but it appears more in need of fixing than the bill we are con- lation, I am pleased that today, we will be able most of the crown jewels will only go to the sidering today. to vote for this bill that would raise the earn- rich. Mr. YOUNG of Florida. Mr. Chairman, I rise ings limit from $11,280 to $30,000 over the To reduce our Federal budget deficit, we tonight in support of H.R. 1327, the Tax Fair- next 5 years. As I have repeatedly told my col- must cut every area of our discretionary budg- ness and deficit Reduction Act of 1995, one of leagues, I firmly believe our Nation can benefit et. However, to make these very difficult cuts the most pro family bills this House will con- greatly from the skills and experience of older only to give the savings to wealthy Americans sider. employees, and we should encourage their does not make sense to me. That is why I op- This legislation, which incorporates several contributions to our economy. pose this ``crown jewel'' of the ``Contract With provisions contained in the 10 points of the Another portion of the contract that I strong- America.'' Republican Contract With America, makes ly support is the repeal of the 1993 Clinton tax I believe we must restore fiscal sanity to our good on the promise we made to ease the tax increase on Social Security benefits. I op- budget process. We have an obligation to put burden on American families. H.R. 1327 deliv- posed the original legislation that required an end to the huge interest payments that are ers the kind of genuine change that the Amer- senior citizens who earn more than $34,000, H 4258 CONGRESSIONAL RECORD — HOUSE April 5, 1995 or couples earning more than $44,000, to pay workers to leave the work force, making more ernment spends too much and taxes too income taxes on 85 percent of their Social Se- jobs available for the young. much. ``Cut government spending and cut it curity benefits. I cosponsored legislation in the Times have changed. The United States now'' is a frequent refrain. I am delighted that 103d Congress to repeal this tax increase, now faces a shortage of workers, not a glut. the 104th Congress is about to vote on actu- and I will support this legislation before us The continuing labor force participation of ally implementing some of these reductions. which will roll this tax back over 5 years to the older Americans who possess valuable skills For example, as a result of this legislation pre-Clinton levels. acquired over 30 or 40 years is increasingly your average tax reduction per filer in Ohio will Finally, one of the most important parts of important to the health of the U.S. economy. save $1,439. the Tax Fairness and Deficit Reduction Act is The result of the current earnings limit is that Let me briefly examine some of the more a reduction in the capital gains tax rate. I have a vast store of human capital, rich in talent important provisions which will have such long been supportive of these efforts, because and ability, is wasted. great impact on small town Ohio. There is a this reduction will be good for all Americans. Raising the earnings limit for retired workers section which would increase the Federal es- Allowing individuals a deduction equal to 50 makes good economic sense. The substantial tate and gift tax exemption from $600,000 to percent of their net capital gains for a taxable reduction in marginal tax rates on wages will $750,000. This increase is important for small year is good economic policy because it will lead to an increase in labor effort that yields business owners and farmers who wish to encourage personal savings in our Nation and additional income and payroll tax revenues to pass on their businesses to their children. help our captial markets preform more effi- offset the increase in Social Security benefit There is also a changed requirement with ciently. By increasing our Nation's personal payments. respect to capital gains, the alternative mini- savings, we will make it easier for businesses Mr. Chairman, I am excited that today I will mum tax, and accelerated depreciation. All of to raise capital in order to expand, and create be able to tell Bess Marsala that the House of these provisions will strengthen our Nation's more jobs, leading in turn to more economic Representatives has taken the first step to- economy and make for an improved business opportunities for every American. ward giving seniors such as herself the free- climate. Mr. Chairman, the legislation before us this dom to work. Another reason for supporting this bill is that evening makes good on many of the promises Mr. GILLMOR. Mr. Chairman, I rise today in it goes a long way in restoring faith and con- we made in the Contract With America. It is support of H.R. 1327, the Tax Fairness and fidence in our seniors while giving back to pro family. It promotes higher education. It re- Deficit Reduction Act of 1995. It is with a great them some of the financial security that was sense of personal satisfaction that I see this stripped away by the administration's budget 2 spects the contributions older Americans have bill come to the House floor for debate as part years ago. This bill takes three important made to our Nation. It encourages home own- of it, the ability for individuals to create Amer- steps for seniors. ership. It fosters savings. Most importantly, it ican Dream Savings Accounts, is very similar First, it raises the earnings limit for seniors creates greater economic opportunities for all to a bill I have been introducing since my first who want to work and remain productive citi- sectors of our society. term in Congress. That bill, the Education zens. Government should not prevent people Mr. Chairman, this legislation is pro family, Savings Account, H.R. 769, contains many of from working, keeping them against their will pro growth, and pro America. I urge its strong the provisions which are included in the legis- in a nonactive, nonproductive retirement. support this evening. lation we are now debating. There are thousands of seniors who would Mr. MANZULLO. Mr. Chairman, the pas- My legislation would allow families to con- love to contribute to our society and we should sage of the tax legislation that we are consid- tribute $1,500 annually, tax-free, to education allow them the ability to do so. ering today will be a triumph for our Nation's savings accounts for each child under age 19. Second, the tax reductions bill repeals the seniors. One of the most onerous and coun- This provides an incentive for families to begin tax hike on Social Security benefits imposed terproductive taxes that exists in our current saving while their children are young. For fam- by the Clinton administration's budget in 1993. code is the Social Security earnings test. This ilies who have children closer to college age, The tax should be eliminated for a couple of penalty reduces Social Security benefits for this bill has the unique feature of allowing an reasons. To increase taxes on seniors who those ages 65 to 69 by $1 for every $3 earned immediate transfer of funds from an Individual are in retirement on fixed incomes is to target above $11,280Ða 33-percent marginal tax Retirement Account [IRA] to the ESA so that one of our most vulnerable populations. It rate. In fact, because of President Clinton's 85 those savings can be used for higher edu- would be wrong to increase taxes on working percent tax on so called wealthy senior's ben- cation. Money in the ESA not spent on edu- seniors, seniors wanting to remain in the work efits, many workers age 65 to 69 face a mar- cation can be transferred penalty-free back to force. ginal tax rate as high as 88.8 percent. the IRA. The final reason I am for this tax reductions Without question, these high marginal tax Enactment of the tax bill we are now consid- bill involves long-term care insurance. For rates affect the behavior of senior workers. ering will allow families to take the initiative many seniors, long-term care becomes a ne- About 1.9 million retired workers in this coun- and begin saving for their children's education. cessity. We should provide incentives for peo- try age 65 to 69 who are eligible for Social Se- We all realize how important higher education ple to purchase long-term care insurance be- curity benefits earn income. An inordinate is to succeeding in today's work force and the fore they need it. This bill provides tax deduct- number of them earn up to or near the earn- cost of college is continually escalating. ibility towards the purchase of long-term care ings limit and then quit working. It is obvious Consider the fact that the family share of insurance so that when people are in the un- that these workers earn all they can without college expenses has increased to more than fortunate situation of needing long-term care, it being subject to the retirement earnings pen- 50 percent with parents contributing over one- will be there. alty. fourth of the total spending on higher edu- I think the issue of Federal pensions needs Mr. Chairman, I know first hand of such be- cation and student contributing about one-fifth. to be examined. I believe the review of them havior and the importance of this legislation. A This holds for both private and public schools, has not been adequately completed, and the constituent of mine, Bess Marsala from Rock- although the contribution is generally greater provisions regarding them should not be in- ford, IL, called me regularly last year to find for those families whose children attend pri- cluded in this bill. However, we must evaluate out the status of Representative DENNY vate institutions. the bill as a whole, and on balance it is a HASTERT's legislation in the 103d Congress In fact, if present trends continue, the cost good bill. The pension issue needs to be re- that would have raised the earnings limit. She of a college education for my own son who viewed before this bill clears Congress. candidly told my staff that she had job oppor- will enter college in the year 2010 could be as Mr. Chairman, today is not the final act in tunities that would have put her earnings over much as $107,000 for 4-year public schools, implementation of the Contract With America. the current $11,280 limit, but had to decline $168,000 for 4-year private schools and Many of the initiatives must be debated by the due to the draconian and punitive taxes she $29,000 for 2-year community colleges. That Senate. But it is absolutely critical that the would incur. is why it is imperative for us to enact legisla- Members of the House of Representatives en- Mr. Chairman, the retirement earnings limit tion such as H.R. 1327 to help families pre- dorse this package with the strongest possible has been part of Social Security since its in- pare for these exorbitant costs. vote and begin delivering real and meaningful ception. The original reason given for it was The Fifth District of Ohio, which I represent, tax reform to Americans. that Social Security should replace lost earn- is small town Ohio at its best and in many re- Mr. SERRANO. Mr. Chairman, I rise in ings. Benefits, it was believed, should not go spects represents the same viewpoints of strong opposition to H.R. 1215 and urge my to people who continued to work. This policy small communities throughout our country. colleagues to reject it. was consistent with the Depression era view From traveling through my district, one of the With our overall economy doing well, and that Social Security should encourage older most common complaints I hear is that gov- with the American people demanding attention April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4259 to the Federal deficit, this is not the time to cut The American Dream Savings Account is to provide a real option for individuals who taxes. written so that it brings revenue in in early have seen property values increase dramati- But even if this were the time, I believe any years but loses tremendous amounts after 5- cally since 1981, particularly in the State of tax cuts should be directed to helping working years, just when efforts to balance the Federal Hawaii and other high cost housing areas. In families improve their lives and enhance their budget are at their most intense. 1980±81, the average cost for single-family ability to participate fully in our economy. In- The overwhelming winners under the capital housing in Hawaii was $169,000, In 1994, the stead of this bill, we should be looking at fur- gains tax rate reduction for individuals are the average cost for single-family housing had ther expanding the earned income tax credit, households with incomes over $100,000, risen to $430,000. Nowadays, most of my con- providing other refundable credits, or providing which would receive 76.3 percent of the bene- stituents do not even have the opportunity to credits or deductions for the costs of edu- fits. purchase a house. They have been priced out cation and training, as the Democratic leader's The business tax changes are also of the market. By the same token, seniors who substitute would do. backloaded, with major revenue losses coming in may cased have lived in the same house Instead, we have a bill that directs more in the years after 2000. And even as the big for their entire lives do not have the option of than half of its benefits to households with in- changes in depreciation make an alternate selling their property because it would be fis- comes above $100,000 and over 66 percent minimum tax more necessary, to assure that cally imprudent. of its benefits to households above $75,000. profitable businesses pay at least some in- Mr. Chairman, it is unfortunate that as the And how do we pay for all this generosity? come taxes, the bill phases the minimum tax House moves to consider legislation to estab- Well, by cutting appropriations for programs cut. lish tax fairness I am unable to offer an such as those on the Budget Committee's list The taxpayer debt buydown is another amendment that would move towards this of illustrative cutsÐLIHEAP, job training, work- deeply troubling concept. We are already fac- goal. place safety, education, housing, biomedical ing extremely hard choices as we attack the Mr. BENTSEN. Mr. Chairman, I rise in op- research at NIH, to name only a fewÐnone of federal deficit, but the ``glideslope'' could be- position to H.R. 1215. While reducing taxes at which should be used to offset anything on the come impossibly steep if taxpayers can divert any bracket is appealing, I believe this legisla- pay-as-you-go side of the budget. And by up to 10 percent of income tax revenues from tion is contrary to our national priorities at this slamming Federal employees through their legitimate Government spending to a debt re- time. pension system. And by raiding the Medicare duction fund. There are many provisions in the Tax Code trust fund. Any by relying on the wrong-head- Mr. Chairman, this is an untimely, bad, mis- which I believe need to be changed in order guided bill. I urge all my colleagues to vote to to help middle-income families regain lost pur- ed savings from welfare so-called reform, reject it. chasing power, encourage business invest- which will in fact either increase State costsÐ Mr. ABERCROMBIE. Mr. Chairman, I sub- ment and expand personal saving. However, and State taxesÐor increase misery among mitted to the Rules Committee an amendment as drafted this measure fails to fully achieve our most vulnerable populations. to H.R. 1215, the Tax Fairness and Deficit Re- these goals. More importantly, by choosing I will concede that H.R. 1215 has a couple duction Act of 1995, regarding the one-time this path, the House is telling the world that of good points, such as the accelerated death exclusion of gain from sale principal residence we are not serious about deficit reduction. I benefits provisions, which I cosponsored, and by individual who has attained age 55. How- cannot support that position. the tax credits for expenses of adoption and of ever, under this closed rule I will not have the House bill 1215 does not provide sufficient caring for an elderly relative at home. Of opportunity to offer an amendment which de- middle income tax relief. The bulk of relief course, the credits would be much better if serves consideration by the House. goes to those earning more than $50,000 per they were refundable, as they were in the con- Currently, under 26 U.S.C.S. section 121, year and is greatly skewed up the income tract, to encourage people of limited means to an individual has the option to elect not to in- scale. The $500 child tax credit is structured build and strengthen families. clude gain from the sale or exchange of prop- so that wage earners who pay most of their But overall, the bad points in this bill far, far erty if they meet certain criteria: First, the tax- taxes through payroll deductions will receive outweigh the good. Where to begin? payer has attained the age of 55 before the little of its benefit. Anyone earning $50,000 or If I begin at the beginning, I must protest the date of such sale or exchange, and second, less will receive little under this bill. The bill provisions that violate the spirit of the Budget during the 5-year period ending on the date of provides greater flexibility for deductions for in- Act by removing the barrier between the dis- the sale or exchange, such property has been dividual for individual retirement accounts and cretionary and the pay-go sides of the budget, owned and used by the taxpayer as his prin- earnings limitation for Social Security bene- allowing appropriations cuts to offset tax cuts. cipal residence for periods aggregating 3 ficiaries, but is deficient on true middle-income The portion of the budget that is subject to ap- years or more. relief while potentially increasing the burden propriation has already been the major con- Furthermore, the limitations for the applica- on middle-income families by not reducing the tributor to deficit reduction, but has notÐuntil tion of this option are subject to: First, dollar national debt. nowÐbeen available to pay for tax cuts. This limitation. The amount of the gain excluded H.R. 1215 also provides significant relief to is very bad policy. from gross income shall not exceed corporate tax payers through the elimination of Then there's the extraneous stuff, particu- $125,000Ð$62,500 in the case of a separate the corporate minimum income tax and neutral larly the provisions relating to Federal pen- return by a married individual, and second; ap- cost recovery. Additionally, the capital gains sions that couldn't win a majority vote in the plication. An individual can only elect to utilize tax rate is cut and indexed for inflation. I be- committee that actually has jurisdiction over this option once. lieve that cutting the gains rate may spur in- them. But here they are, in H.R. 1215. The Mr. Chairman, section 121 was added to the vestment, but I do not believe significant cap- authors of the Contract With America want to code in 1964. Initially, an individual had the ital is sitting on the sidelines because of the violate the Federal Government's contract with option to exclude a gain of $20,000 from the current 28 percent rate. I support indexation of its employees. Two million Federal employees sale or exchange of property. The attainment capital gains just as the code provides for in- face tax increases that exceed any tax cuts age was 65 and during an 8-year period end- come taxes. Taxpayers should not have to they might hope to receive from the rest of the ing on the date of the sale or exchange, such pay for the costs of inflation. Yet, I cannot bill, so we can cut everyone else's taxes. property had to have been owned and used support this combination of corporate tax The American Dream Restoration provisions as a principal residence for 5 years. breaks when the economy is growing and the would explode the deficit, especially in the Since that time section 121 has been Government is broke. years beyond our 5-year budget calculations. amended to its present form. yet, the last time I am greatly concerned about the cost of The family tax credit in the original contract the option to exclude from gross income was this billÐestimated to be $700 billion over 10 was refundable, so all families with incomes increased was in 1981 from $100,000/$50,000 years. This will double the amount of spending up to $200,000 could benefit, even those to $125,000/$62,500. My amendment would cuts that Congress must achieve to balance whose income tax liability is small, but who increase the exclusion on sale of principal res- the budget. Democrats and Republicans know still pay Social Security, Medicare, and State idence to $250,000/$125,000. Also, I have in- that balancing the budget without this tax cut and local taxes. But in this bill the credit is not cluded language so that the property would will be painful. Why increase the pain for lim- refundable. The parents of 34 percent of has to be owned and used by an individual as ited benefit? Why not address the deficit first? American children will not be able to receive a principal residence for 6 out of the 10 years Where will the cuts come from to pay for the full credit because their incomes are too on the date of sale or exchange. this bill? The majority has told us that discre- low. Only the better-off fully benefit from this Mr. Chairman, my amendment is not for tionary spending will be cut in the out years, credit. speculators. The purpose of the amendment is but that will require future Congresses to H 4260 CONGRESSIONAL RECORD — HOUSE April 5, 1995 abide by this agreement, in addition to bal- If federal pay, benefits and working condi- However, H.R. 1215 contains many egre- ancing the budget. We now know that under tions are perceived to be inferior to those gious and unfair tax changes. The bill repeals this bill, all Federal employees will have their available from private employers, Federal the Alternative Minimum Tax [AMT] for cor- contributions to retirement increased by 2.5 employers may be faced with higher levels of porations. The AMT was established in 1986 turnover at senior levels, and the challenge percent annually while benefits will be reduced of recruiting and keeping senior professional when it was discovered that some of the coun- at retirement. The net effect is a 2.5 percent and technical people will grow. try's largest and most profitable corporations tax increase or pay cut for Federal Employees paid no federal taxes or, because they took Mr. Chairman, despite what the proponents in order to redistribute income through the Tax advantage of countless deductions and tax of this legislation pretend, there is no financial Code. This proposal will cost $750 for the credits, actually received a tax rebate. Not crisis in the Federal Employees Retirement NASA employee who lives in my district mak- only does this bill repeal the AMT, which in- System of the Civil Service Retirement Sys- ing $30,000 per year. What the American peo- sures that profitable corporations pay a fair ple don't know is that this item was rejected tem. Both the Congressional Research Serv- share in taxes, but it also permits companies by a bipartisan vote in the Government Over- ice and the General Accounting Office have to use their prior AMT payments as credits sight Committee but the Republican leadership confirmed the financial solvency of the Federal against future taxes. At a time when even the slipped it into this bill. That breaks the bond retirement program. There is no reason for most effective Federal programs are subject to between employer and employee and is un- this body to deny reality. significant cuts, it is simply unconscionable fair. The pension payment increases contained that many corporations will be able to elimi- We know that the bill counts on $70 billion in the Tax Fairness and Reduction Act will ef- nate some or all of their Federal income tax li- in savings from the welfare system, but as we fectively increase taxes for most Federal work- ability. learned from the debate 2 weeks ago, those ers by approximately 10 percent. It is dishon- This bill will cost middle-income American savings will come at the expense of the States est to attempt to offset a tax reduction for the taxpayers $188 billion in the next five years since the welfare reform bill merely cuts wealthiest households in our Nation by gutting alone. Yet, middle class Americans will see spending and transfers responsibility. This so- the pension benefits of our Nation's public very little benefit. Those making $30,000 or called reform, with no work requirement, will servants. less will see a tax cut of $124 per year while cost my Sate of Texas $1 billion per year. Mr. Chairman, I urge my colleagues to re- those making $200,000 can expect to save So what the proponents are doing is shifting ject this legislation. $11,000 per year under this bill. While I am the costs of welfare to the States and cutting Mr. ROEMER. Mr. Chairman, I rise in strong not promoting class warfare here, I am en- the pay of Federal employees to pay for part opposition to H.R. 1215, the Contract With couraging tax fairness. of the tax cut. The rest will come from the America Tax Relief Act of 1995. At a time This legislation makes promises which will good will of a future Congress. when 16 percent of all Federal spending is explode the deficit after the first five years. Let me say, I give the committee credit for used to pay interest on the national debt, it is The offsets contained in the bill are not from including congressional pension reform which clear that it is the wrong time to reduce taxes, Federal entitlement or revenue programs, but I have long supported. Congressional pen- particularly in the manner recommended in rather are derived from domestic discretionary sions should be in line with other Federal em- this bill. We cannot afford to spend $630 bil- programs. Because these programs are al- ployees. But we should not have to cut Fed- lion over the next 10 years on this proposal. ready capped, subject to annual review, and eral employees pay to reform our own pen- I doubt there is a Member in this Chamber do not grow at the same rate as tax revenue sions. Let's bring that bill up for a vote now, who opposes easing the tax burden on work- losses or entitlement programs, they will not don't hide it in a tax bill. ing Americans. In an ideal fiscal situation, I pay for the tax cuts over time. Simply put, this Passage of this bill will be another missed would advocate tax simplification and reduc- bill will add to our already overwhelming defi- opportunity to cut spending and balance the tion. I am a supporter of capital gains tax re- cit. budget. This bill spends the cuts Congress al- ductions, for example. I hear often and loudly With respect to fairness, or lack of it, school ready made, but we have learned that to be from my constituents about the complexity of lunches for children and college loans for mid- the case on every spending cut bill considered the Internal Revenue Code, which many view dle-income students are cut to pay for tax this year. With the economy growing at a sub- as overly confusing and punitive. There is no breaks or tax exemptions for large companies. stantial rate, but deficits still running at $200 question that improvements can and must be We should not nickel and dime to death child billion annually, wouldn't it be prudent to pare made. I will support budget-neutral tax reduc- nutrition and college loan programs in order to down the debt first? We should have real tax tion plans that stimulate the economy. relieve fair tax obligations for some profitable relief for the middle class, including expansion However, our national debt today stands at businesses. Additionally, small subsidies for of IRA's and indexing of capital gains, but we $4,873,480,746,464.74, and our budget deficit senior citizens to heat their homes during frig- need debt relief first. We should focus our ef- is estimated to be more than $165 billion this id winters is completely eliminated to fund forts on the middle class, those earning be- fiscal year alone. As these numbers indicate, these tax breaks and loopholes. The best tax tween $25,000 and $75,000 who have seen our country is in a fiscal crisis. It is nothing cut for all Americans is to reduce the deficit. their purchasing power decline. Debt reduction short of irresponsible to be considering tax For the sake of future generations, we need will help. This bill fails to achieve that goal. cuts that will add at least $630 billion to the to focus on deficit reduction. Only when When a company is drowning in debt, it cuts deficit over the next 10 years. We should be progress has been made on this goal should that debt, we should do the same. Let's put looking to cut spending first, not cut taxes. we look to reduce taxes. Once we are suc- this measure aside and begin the hard task of There are some provisions of H.R. 1215 cessful in balancing the Federal budget, then balancing the budget. that I support. I have long favored a targeted we should focus on tax cuts. I hope we can Mr. CLAY. Mr. Chairman, I rise in opposition capital gains tax cut. The bill includes a 50 start in a bipartisan way to craft substantive to this so-called Tax Relief Act and the puni- percent capital gains reduction for individuals, changes in the Federal tax code to encourage tive measures it would levy against Federal as well as allows for capital gains indexing long-term savings and investment critical to workers. tied to inflation. These capital gains changes the competitiveness of our national and local The Committee on Government Reform and would greatly assist family farmers and small economies as soon as we return from the OversightÐwhich has jurisdiction over Federal business owners, and are proposals that I en- Easter work period. We need to practice com- personnel issuesÐhas not held a single hear- dorse. But is imperative that we pay for these mon sense when we revise the tax code. ing on the Federal pension legislation before proposals with cuts in Government spending. Mrs. COLLINS of Illinois. Mr. Chairman, the us today. Not long ago Congress spent almost I also support the Super Individual Retire- bill we are considering today may be called 2 years creating the Federal Employee Retire- ment Account [IRA] initiative that is contained the Tax Fairness and Deficit Reduction Act; ment SystemÐwhich is modeled after private in H.R. 1215. Under the Super IRA proposal, but there is nothing fair about this tax bill. sector pensions plans. It is irresponsible for withdrawals from IRA's would be penalty-free For 2 million middle class Americans, this this Congress to circumvent the legislative if used for the purchase of a first-time home, bill is a tax increase bill, not a tax cut bill. The process in order to sabotage the careful, delib- or for education and medical expenses. Once bill also cuts benefits for future Federal retir- erative program which was painstakingly pro- an individual reaches age 591¤2, withdrawals ees by 4 percent. duced. would not only be penalty-free but interest In this one bill, my Republican colleagues The problem with reducing the Federal would not be subject to taxation. With the net have succeeded in breaking two important workers pensions benefits has been well stat- personal savings rate in the U.S. at an all-time promises they made to the American people: ed by the conservative think tank, the Hudson low of 3.5 percent of gross domestic product, not to raise taxes; and not to tamper with pen- Institute, in its report, ``Civil Service 2000.'' these changes are long overdue. sions for the elderly. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4261 Under this bill, the 2 million people working Federal retirement system. However, Federal Mr. PORTER. Mr. Chairman, I have never for the Federal Government will be taxed a employees already contribute 28 percent of supported a tax increase, and I supported the total of 9.5 percent of their income to pay for the total amount spent each year on retire- Reagan tax cuts which came with the promise their retirement benefits. Contributions for ment benefits. On the other hand, GAO says of spending cuts to follow which never mate- those employees participating in the Civil that 95 percent of all private sector retirement rialized. Service Retirement System will increase by 36 plans involve no, I repeat, no employee con- No one should believe that the Castle-Upton percent. Contributions for employees covered tribution. package is more than a fig leaf that allows by the Federal Employees Retirement System Clearly, Federal workers already assume far Congress to rationalize cutting taxes before will increase by 313 percent. greater financial responsibility for their retire- balancing the budget. We have seen deficit re- If the Congress passes this bill, the average ment program than do many workers in the duction packages before. Gramm Rudman Federal employee will pay an additional private sector. If this is the case, what is the promised a balanced budget by 1991, and yet $4,525 over 5 years, or an average of $905 justification for raising the retirement tax Fed- it is 1995 and we have an ongoing $200 billion more each year, in order to participate in the eral employees must pay and for cutting their deficit. retirement program. benefits? No one, let me repeat, no one should take No, Mr. Chairman, we have to get the prior- The simple answer is that the majority any comfort in the fact that only Federal em- ities straight. As much as I would like to sup- needs $11 billion to help pay for their tax cut ployees will be hit with this new tax. The Fed- port a tax cut now, I refuse to require our chil- for those wealthy Americans fortunate enough eral retirement program is funded through pay- dren and grandchildren to pay for it by adding roll withholding, just like Social Security. to have investment earnings. There is no other its $189 billion cost to the deficit. If the Republican leadership thinks it is all answer. Some argue that the tax cuts will stimulate right for Federal employees to pay 9.5 percent Apparently, Republicans do not mind taking the economy and pay for themselves. We've of their salary for retirement, may they soon hard-earned dollars from middle-class Ameri- been down that road before, too, Mr. Chair- not conclude that workers covered by Social cans to pay for tax cuts they give their rich man. Dynamic scoring may make us feel good Security should pay 9.5 percent of income for friends. But, I do, and I believe most Ameri- about doing what we want to do, but is not a their benefits too? cans do as well. conservative approach. In working to reduce In fact, what we may be seeing here is the There is nothing fair about this approach to deficits, we should never assume things that Republican answer to the crisis facing our en- tax reduction. may not come true. We should be cautious in titlement programs. If you think it costs too In an effort to disguise what this bill does, our predictions. We should be conservative. much for the Federal Government to make Chairman CLINGER has made the claim that Mr. Speaker, I supported the rule because good on its commitments to the elderly, the the increased retirement contributions of Fed- in signing the Contract With America I prom- sick, children and survivors, just raise the tax eral employees will offset tax cuts, will ised to bring this bill and all the others before strengthen the federal retirement system, and workers pay for these benefitsÐonly, this is the House for a vote during the first 100 days will reduce the deficitÐall at the same time. very important, do not call it a tax. of this Congress. But the contract did not re- This explanation defies basic common Even though this bill will take 9.5 percent of quire us to support the legislation, nor would an employee's salary out of his or her check, sense. Obviously, the same dollars cannot be I have signed it if it did. in the same way income taxes are deducted, used for three simultaneous purposes that di- There is no ground swell for tax cuts across proponents claim it is not a tax. rectly conflict. Instead, this is what really hap- America. To the contrary, the American people I disagree. All the complicated arguments in pens in simple English: the increased reve- the world cannot change the basic fact that 2 nues generated by the tax on Federal employ- are urging us not to cut taxes, but to cut the million Americans will have about $900 less to ees offset the reduced revenues from the tax deficit. American business, a major beneficiary spend each year, as a result of this bill. Under cut. The deficit is not reduced, nor is the re- of the tax cuts, is also more anxious that we House Rules, it should take a vote of three/ tirement system healthier. address deficit reduction. fifths of the Members to pass it; but, that is not The accounting trick is that although the Mr. Chairman, under previous Congresses what the Rules Committee provided. revenues go directly into the Federal retire- and administrations there were always higher It is ironic. When I appeared on a bi-par- ment trust fund under the law, what really priorities than getting our fiscal house in order. tisan panel before the Rules Committee, which goes into the trust fund are non-negotiable One could argue that they were justified. But was telecast by C-SPAN, none of the Mem- government securitesÐin effect, a government now with the end of the cold war, our huge bers of that Committee had any trouble under- IOU to itself. deficits continue unabated and we have yet standing that this was a new tax on employ- This allows the revenues to be scored under another higher priority than balancing the ees and that it should not be in this bill. In the Budget Act at increased receipts that are budget. fact, the Rules Committee chairman said: available for other purposes. The increased Well, I for one do not, Mr. Chairman. A But, I have to agree with you that this is receipts would reduce the deficit under Budget young person entering the American work a case where we are raising taxes on some to Act accounting. However, the tax cuts in the force today is being handed a bill for his or pay for tax cuts for others and that to me is bill offset this reduction, resulting in no reduc- her share of the interest on the debt accumu- wrong. I don’t believe we ought to be doing lated to date of $250,000 that will have to be this in this bill. tion of the deficit. paid throughout his or her working lifetime, Similarly, Members on both sides of the Mr. Chairman, Congress dealt with reforms needed in the Federal retirement system in money that will not be available to buy a home aisle of the Committee on Government Reform or educate their children or to start a business. and Oversight emphatically rejected any at- 1986. At that time, we asked Federal employ- ees to make a final and irrevocable choice as For a college graduate the bill is $500,000 to tempt to raise taxes on Federal employees to $700,000 or more. This is unconscionable, Mr. pay for tax cuts. Let me repeat, the Committee to the retirement plan in which they would par- Chairman. This is fiscal child abuse and must of jurisdiction refused to approve the tax in- ticipate. not be allowed to continue. Not even to cut crease for Federal employees this bill con- Having made that choice, Federal employ- taxes. tains. ees have the right to expect that the Govern- You have to wonder, then, why are we now ment they have served would not change the As much as I, as a Republican, want to vote faced with this proposal as part of the tax bill? rules in the middle of the game. for this tax cut package, I cannot do so. I Some in the majority suggest this tax in- Mr. Chairman, our contract with Federal em- would breach faith with my own children and crease is needed, because they claim the re- ployees is every bit as binding as the Contract grandchild. There is a higher priorityÐtheir fu- tirement fund is financially unstable and will With America. Federal employees have ful- ture. For my, for this Republican, my vote soon become a huge burden on taxpayers. filled their obligations; it is now up to us to must be no. This simply is not true. The Congressional make sure the Government delivers on its Mr. BARTLETT of Maryland. Mr. Chairman, Research Service of the Library of Congress commitments. I rise today in strong support of H.R. 1215, the recently issued a memorandum that makes it Each of my Colleagues should remember Tax Fairness and Deficit Reduction Act of very clear, the Federal retirement system is that if this tax cut bill can be used to raise 1995. By passing this important legislation solvent, and the issue of future liabilities has taxes on Federal employees, no one is safe. today, Republicans will fulfill the promises been adequately addressed in previous pen- Social Security and Medicaid taxes can be made in the Contract With America. H.R. 1215 sion legislation. raised just as easily. offers something for everyone; tax relief for Proponents of these changes also allege I urge my Colleagues to vote no on the tax America's hard-working families, relief for sen- that it would restore greater balance to the bill. ior citizens, and job-creating incentives for H 4262 CONGRESSIONAL RECORD — HOUSE April 5, 1995 businesses. For Maryland residents, these tax H.R. 1215 will create unlimited economic abilities. New nondeductible contributions of cuts mean an average reduction of $1,718 per opportunities by allowing small business to de- up to $2,000 for single filers annually and filer. It is time for the Federal Government to duct the first $35,000 they invest in equipment $4,000 for married couples annually will en- stop stealing money out of the taxpayer's and expanding the home office deduction. In courage greater savings. hands and let them keep it. order to protect the future economic stability of For the elderly, it repeals the unfair tax hike The Federal Government consumes a huge our country, we must reduce the tax burden passed in 1993 on Social Security benefits, portion of the family budget. In 1948, the aver- on workers and businesses. and raises the earnings limit from $11,280 to age American family paid only 3 percent of its Out of these provisions, I believe the reduc- $30,000 by the year 2000. The bill makes income to the Federal Government. Today, tion in capital gains is the most important be- long-term care insurance more affordable and the same family pays 24.5 percent of their in- cause it provides access to capital. In order to more widely available, and it clarifies and im- come to Uncle Sam. It is no wonder that a create jobs, people need access to capital, proves current law for terminally ill individuals majority of families have both parents working such as tools, equipment, and computers to who would not be able to use tax-free distribu- harder and longer hours, but are constantly increase their productivity. Capital is not magi- tions for their life insurance policies to pay struggling to make ends meet. cally created; business can only secure it if medical bills and living expenses. The Republican tax bill offers true tax relief people save and invest. As a member of the It establishes a credit for married couples for working middle-class families. Unlike the Small Business Committee, I have listened to who file joint tax returns to alleviate the mar- phony so-called commitment of a middle-class business owners from around the country riage tax penalty, and provides a $500 tax tax cut made by President Clinton and Vice comment on the high cost of capital and how credit for families caring for a dependent el- President Gore in 1992, the Republicans are that hinders new and existing businesses. derly parent or grandparent. delivering on their promises. Also, let us not The current capital gains tax forces inves- Finally, individuals and small businesses will forget that President Clinton crammed the tors to hold on to their assets, thus forcing the benefit and economic growth will be spurred largest tax increase in American history down investor not to sell the investment and reinvest from a 50-percent capital gains deduction for the throats of hard-working American tax- the proceeds in a higher paying alternative if individuals, abolishing the 28-percent maxi- payers. the capital gains taxes he would owe exceeds mum rate on capital gains, indexing capital America's families deserve tax relief. H.R. the expected higher return. By lowering the gains to adjust for inflation, allowing small 1215 allows families to keep their money by tax, we will free up capital for small business providing a $500-per-child tax credit for fami- and entrepreneurs. This will essentially businesses to deduct the first 35,000 dollars' lies with incomes below $200,000. So a family unleash the free enterprise system so it will worth of investment each year, and clarifies with two children under the age of 18 will re- create more jobs and improve the pay of exist- the home office deduction. duce their taxes by $1,000. Seventy-four per- ing jobs. Mr. Chairman, this proposal is about fair- cent of this tax credit will go to families with As promised in the Contract With America, ness. This is an opportunity to help working incomes below $75,000 and it will eliminate House Republicans are reducing the burden of Americans who feel that their best efforts to the Federal income tax liability for 4.7 million Government to empower families, create jobs, provide for their families are thwarted by an families. For those couples who are caring for and enhance our children's future, while pay- oppressive tax system and an uncontrolled an elderly parent or grandparent at home, the ing for it and at the same time, reducing the Federal debt that threatens our children's fu- legislation gives them a $500 tax credit. Federal deficit. tures. Nonworking spouses will be able to make a Mr. FRELINGHUYSEN. Mr. Chairman, I rise Our goal is clearÐwe must bring spending $2,000 tax deductible contribution to an IRA. today in support of H.R. 1327, the Tax Fair- under control and allow all Americans to con- These tax cuts truly reflect a pro-family agen- ness and Deficit Reduction Act of 1995. While trol more of their hard-earned money. H.R. da. I had my reservations about whether we could 1327 is an equitable and intelligent approach, This bill also allows senior citizens to keep afford a tax cut this year, I am extremely satis- and I urge my colleagues to pass this bill. more of their Social Security benefits and not fied with this new plan. Mr. CUNNINGHAM. Mr. Chairman, I rise be penalized for working. We all remember Since the beginning of the year, I have re- today in strong support of the Tax Fairness President Clinton's 1993 tax increase on So- ceived over 7,000 letters and calls from con- and Deficit Reduction Act. cial Security for seniors with incomes above stituents who almost universally sent the same This landmark legislation increases the take- $34,000 if single or $44,000 for married cou- message: cut spending, balance the budget, home pay of American families with a $500- ples. Not one Republican in either the House and provide tax relief. I made it my first priority per-child tax credit. It removes the barriers or the Senate voted for this increase. Let me and responsibility in Congress to work in that that discourage seniors from work, and re- repeat: President Clinton raised Social Secu- direction. peals the unfair Clinton taxes on seniors' So- rity taxes. In Maryland alone, Clinton's in- The key to my support is the added provi- cial Security. It grows the economy by reduc- crease affected nearly 110,671 senior citizens. sion clearly stating that tax cuts can only be- ing the job-killing tax on capital gains. And it Republicans, not the tax-and-spend Demo- come law as part of legislation that lays out reduces Federal government spending, re- crats, are repealing this unfair and discrimina- our course for a balanced budget by the year duces the size of the Federal government and tory tax increase. No one, especially senior 2002. Furthermore, the legislation strengthens actually lowers the Federal deficit by $90 bil- citizens, should be discouraged from working. enforcement, through limiting discretionary lion . Unfortunately, it was President Clinton, who in spending, of our promise to bring the deficit to For these reasons, this important legislation 1993 singled out and penalized one group, zero in 7 years. This, Mr. Speaker, this bill has been called the ``crown jewel'' of our Con- senior citizens, for attempting to remain finan- strongly clarifies and holds us accountable to tract With America. cially independent. our commitment to balancing the Nation's Contrast this tax cut legislation with the Clin- The best way to spur economic growth and budget, as well as providing tax relief to hard- ton tax increase of 1993. Bill Clinton cam- job creation is to get the Government off of working American families. paigned on a promise to cut taxes. Instead, he the backs of business. The tax cuts in this leg- And, let's keep these tax cuts in perspec- rammed through a Democrat-controlled Con- islation will increase economic growth, which tive. At current rates, taxpayers will contribute gress the largest tax increase in American his- creates more economic opportunity for every to our Government coffers over the next 7 tory. The Clinton plan added $1 trillion to the American. Our current tax code is oppressive years more than $7.5 trillion. A $188 billion tax huge Federal debt. It was enacted into law by penalizing successful business owners, relief package is comparatively small and without a single Republican vote. The Presi- thereby eliminating any incentive to remain in manageable over 5 years. Yet as the bill is dent failed to keep his promise. The American business or even start one. now written, this will be immense relief for mil- people replied last November by electing a Mr. Chairman, I believe that there is a fun- lions of American families. new Republican Congress. damental difference between Republicans and For the State of New Jersey, nearly $8 bil- Our Contract With America included tax re- Democrats when it comes to investment and lion will be pumped back into the economyÐ lief for American families. We're keeping our job creation. Republicans want all Americans that's $1,803 over 5 years into the hands of promise. to prosper by promoting jobs in the private working New Jerseyans. We're keeping our promise to allow Amer- sector, not in Government bureaucracy. I am also comforted by knowing that the ican families to keep more of their pay. We're Democrats view government spending as an legislation helps those who need it most: fami- keeping our promise to encourage families to investment, while Republicans want the tax- lies, individuals, our elderly, and small busi- save for retirement, home ownership, college payers to keep their money and make their nesses. For families, a $500-per-child tax education or long-term health care, through own investments. credit relieves the burden of year-end tax li- new America Dream Savings Accounts. We're April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4263 keeping out promise to help American's sen- On the other hand, this same report shows driving them into hospitals or emergency iors, who I prefer to call our ``chronologically that the U.S. ranks 33rd in all the world in rooms where care is far more expensive. gifted'' citizens, by repealing the Clinton taxes terms of corporate taxes on business profits, Mr. Chairman, I very much want to take ac- on seniors, and rolling back the unfair Social income, and capital gains as a percent of tion to help America's families and for that Security Earnings Test. We're keeping our GNP. Simply said, we already have one of the reason have been very tempted to support the promise to create jobs, by adopting a cut in most favorable business tax environments in proposal in this bill to provide a $500 tax cred- the capital gains tax and other provisions to existence. it for children. However, in thinking carefully spur investment. There is a simple principle of physics about this provision, I have come to the con- And we're keeping our promise to reduce learned by all high school students that one clusion that the tax credit is not the best way the growth of Federal spending. This legisla- gains maximum leverage by pushing on the to help America's moderate and middle in- tion cuts the deficit $30 billion more than long end of the fulcrum lever, not the short come families. A $500 tax credit for children President Clinton's budget. end. We will gain in productivity only by ad- would be very expensive and would use criti- This matter of keeping promises is common dressing the basic problemÐunderinvestment cal Federal revenues that couldÐand sense in America, but radical change for in technology and research. A more favorable shouldÐbe used to reduce our Nation's budg- Washington, D.C. I am confident this legisla- tax environment will, no doubt, make some in et deficit. From my studies on these matters, tion will have bipartisan support. But for all the industry happy but it will not result in any pro- I am convinced that the best way and the promise-keeping, this legislation would not be ductivity gains not any long term economic most responsible way to help America's fami- worthwhile unless it was in best interest of our growth. liesÐand all Americans at this timeÐis to re- children. Mr. Chairman, I am also voting against this duce our budget deficit. Continued deficit re- For the first time in history. American fami- measure because I believe that most of the duction will lead to reduced interest rates, tax cuts contained within it will simply increase lies feel their children will grow up to have a which in turn will save many American families our federal deficit at the wrong time. We can lower, not a higher, standard of living. They well over $500 a year in reduced credit inter- better help more Americans not through tax see government taking more of their money, est costs, refinanced home mortgages, and cuts at this time but by reducing the deficit, and controlling more of their lives. The know more affordable home purchases. The in- which will lead to a more secure financial fu- Federal spending is spiralling out of control. creased economic activity resulting from these ture and lower interest rates. Thus, families lose hope for the real American While I am opposed to this overall bill, I am savings to American consumers will lead to dream, a better life for their kids. The Tax supportive of one portion, but am disappointed the creation of more jobs. Fairness and Deficit Reduction Act represents that the Republican leadership has attached it Mr. HEINEMAN. Mr. Chairman, I rise today real hope for American families. It reduces to the tax package and thus I am not able to in strong support of America's senior citizens. government's appetite for their money. It vote for it separately. This positive portion of This week, we in Congress have the oppor- grows the economy and jobs. Most impor- the bill would raise the Social Security Earn- tunity to give the senior citizens of this Nation tantly, it leaves cash in the hands of American ings Limit for senior citizens. some much needed tax relief. families that they can use in their best inter- The bill would nearly triple the amount of As a senior citizen, I see the far-reaching ests. outside earnings that seniors aged 65 to 69 implications of these tax relief provisions, per- After all, whose money is it anyway? The earn before their Social Security payments are haps a bit better than some of my younger Federal government does not have one dime reduced. Currently, the level of income is only colleagues do. that hasn't been taken from an American fam- $11,160 annually, and seniors lose $1 in So- Two years ago, this body and the President ily, today or tomorrow. cial Security benefits for every $3 they earn in of the United States passed the largest tax in- I strongly urge my colleagues to support this excess of $11,160. Under the bill the Social crease in history. The greatest part of that bur- legislation. Let's keep our promises. And let's Security Earnings Limit would be raised to den fell on the shoulders of those in the Unit- trust American families to make the best deci- $30,000 by the year 2000. ed States who could least afford it: Our senior sions about the money they have earned. I have always supported relaxing the earn- citizens. Mr. BROWN of California. Mr. Chairman, I ings threshold and repealing this unjust tax We must roll back the 1993 tax increase on rise in opposition to H.R. 1215 for a number burden on hardÐworking seniors. The current Social Security benefits. It is wrong to raise of reasons. One key reason is that this bill limit is unfair and simply does not make taxes on our seniors who live on fixed in- would dramatically reduce our investments in sense. Rather than penalizing senior citizens comes. research and development to pay for a mis- for working, the Government should encour- The 1993 tax increase targeted supposedly guided tax cut. The bill reduces discretionary age them in their efforts to be financially self- wealthy senior citizens who made $34,000 or spending by $100 billion dollars over the next sufficient. I think it is fair to say that, for the more. 5 years. We are being told that this bill will re- most part, senior citizens who are working do We must raise the limit on the amount that sult in reductions of $2.3 billion in energy sup- so because they need the money. our seniors can earn and still remain eligible ply research, over $1.5 billion in economically Under current law, seniors who work to sup- for Social Security benefits. It is wrong to tar- important climate and weather research, over plement their Social Security benefits are pe- get working seniorsÐolder Americans have $2 billion in technology development programs nalized, while no limits are placed on those been the backbone of our Nation. They pay within the Department of Commerce, and a seniors who have alternative forms of income their fair share, and it is an outrage to ask whole host of other R&D and capital invest- such as private pensions or investments. This them to pay anything more. ments. is simply not right. Seniors who work are pay- This bill is vitally important to our Nation for The profound irony here is that the stated ing taxes, putting money back into the system, many reasons. But any Member of this House objective is to stimulate economic growth by and providing society with a valuable pool of should find it easy to vote for this bill on the creating a more favorable tax climate for busi- experience. We should encourage seniors' basis of fairness to our senior citizens alone. ness through reductions in capital gains tax- participation in the work force by changing the The United States has a contract with the ation and increases in depreciation for capital current law that causes working seniors to citizens who have made this Nation greatÐour investments. lose what is sometimes more than 50% of senior citizensÐand that contract has been Mr. Chairman, countless economic studies their Social Security benefits. breached. This Congress must pass this legis- have shown that between one fourth and one However, all news is not good news for sen- lation and honor the Contract our government half of all economic growth is directly attrib- iors. With this bill, the Government would be has with our senior citizens. utable to technology development of the type giving to seniors with one hand and taking This Congress must make things right. being eliminated in this bill. from them with the other. Medicare cuts total- This Congress must act now. A recent report from the World Economic ing $10.5 billion help pay for the Republican's I urge my colleagues to support this bill and Forum in Geneva Switzerland is useful in put- tax cuts, which will go primarily to the wealthy. the senior citizens of this Nation. ting our situation in perspective. We rank well These cuts are another reason why I could not Mrs. FOWLER. Mr. Chairman, I rise in behind other competitors such as Japan, Swe- support the overall bill. Part of the savings de- strong support of H.R. 1215, the Tax Fairness den, Switzerland, and even the Czech Repub- rived from Medicare is achieved by limiting and Deficit Reduction Act. lic in the total R&D investment as a percent of Medicare payments for home care. Although For far too long the American people have GNP. We rank an astonishing 28th in terms of this may save money in one area, it will cost been called upon to bear the costs of a fed- the per cent of public funding going to civilian more in the long run by discouraging seniors eral government whose spending habits have R&D. from seeking less costly care in the home and rampaged unchecked. H 4264 CONGRESSIONAL RECORD — HOUSE April 5, 1995 In 1950, the average American family paid $11,000 a year, which is 100 times the benefit Mr. Chairman, Democrats are for tax relief. only two percent of its income in taxes to the that families earning $30,000 or less will see. Some of us crossed party lines to vote for this federal government. Today, that figure has But these fair-minded Republicans have been legislationÐalbeit with a heavy heart over the ballooned to 24.5 percent. Under current pro- told that fairness is class warfare, and to vote Federal employees and retirees provisions. I visions, a family with a median income of with the radicals. will work to have this portion of the bill stricken $52,895 pays some 50.4% of its income to This bill is a catalog of the silly, the mean- in the Senate or in conference between the federal, state, and local taxes. spirited and the flat wrong. Fortunately, most two Houses. Then, we can begin the work of This is not just unconscionable. It is a short- of it will never be enacted, and the radicals crafting a bipartisan package that will provide sighted misuse of America's productive ener- know it. But they must demonstrate their true tax relief to all Americans. gies. Government has an important role to power and mastery, and will do whatever they The CHAIRMAN. All time for general play in our nation in a number of areasÐna- must do, break whatever promises they must, debate has expired. tional security, public safety, public health, to and twist whatever arms they must, to make Pursuant to the rule, the amendment name a fewÐbut it is the private sector that their point: the radicals are running things, and in the nature of a substitute consisting has been the true engine for progress in our they don't care about what is right or reason- of the text of H.R. 1327, modified by the country. able, what is workable or unworkable, or what amendment printed in part 1 of House The bill before us today would give greater is responsible or irresponsible. They merely Report 104–100, is considered as an power over economic affairs to the American aim to make the point that they are in control, original bill for the purpose of amend- people and allow for the more productive use and they will remain so as long as moderate ment and is considered as having been of American capital. When coupled with wel- and fair-minded Republicans are willing to read. fare reform and other legislation we have swallow their pride and common sense, chlo- The text of the amendment in the na- passed under the Contract with America, we roform their consciences, and vote for this ture of a substitute, as modified, is as will reduce federal spending by some $280 bil- abomination. This bill is a disgrace and ought follows: lion over the next five years, providing for both to be defeated. But that will only happen if H.R. 1327 tax cuts and some $90.7 billion in deficit re- common sense prevails, and they radicals are Be it enacted by the Senate and House of Rep- duction. told that sometimes party loyalty demands too resentatives of the United States of America in Most importantly, H.R. 1215 provides great- much. Congress assembled, er disposable income to Americans through Mr. PALLONE. Mr. Chairman, I rise to ex- SECTION 1. SHORT TITLE. tax credits to families, alleviation of the mar- press my opposition to the provisions to cut This Act may be cited as the ‘‘Tax Fair- riage tax penalty, repeal of the President's pension benefits for Federal retirees and to in- ness and Deficit Reduction Act of 1995’’. 1993 tax increase on Social Security recipi- crease pension contributions for current Fed- TITLE I—DISCRETIONARY SAVINGS ents, a reduction in capital gains taxation, and eral employees that were included in H.R. SEC. 1001. SHORT TITLE. much more. It is a package designed to 1215, the Tax Fairness and Deficit Reduction This title may be cited as the ‘‘Discre- unshackle America's true economic potential. Act. tionary Spending Reduction and Control Act I urge my colleagues to support this meas- I did vote for the bill on final passage be- of 1995’’. ure. cause I have pledged to my constituents to SEC. 1002. DISCRETIONARY SPENDING LIMITS. Mr. GONZALEZ. Mr. Chairman, the Repub- work for tax relief. But the package that we (a) LIMITS.—Section 601(a)(2) of the Con- lican tax bill is the wrong thing to doÐit gives gressional Budget Act of 1974 is amended by voted on tonight has a serious flaw with re- a huge tax break to the wealthy, and little or striking subparagraphs (A), (B), (C), (D), and nothing to Americans who need it most. It is gard to Federal workers. While we provide tax (F), by redesignating subparagraph (E) as the same old Republican menu, the one that relief to millions of Americans, we are provid- subparagraph (A) and by striking ‘‘and’’ at makes most of us eat baloney, but guarantees ing 2 million middle-class Federal employees the end of that subparagraph, and by insert- ing after subparagraph (A) the following new filet mignon to the country club. The Repub- with a tax hike. The increased pension contributions rep- subparagraphs: lican bill robs poor people and hands the ‘‘(B) with respect to fiscal year 1996, for the money to the rich. They claim that the rich will resent about a 10-percent increase for Federal workers. This bill also changes the number of discretionary category: $502,994,000,000 in new invest the money and give fine jobs to the budget authority and $537,946,000,000 in out- poor, but there's not an honest economist in years used to compute employees' annuities, lays; the land who believes this will happen. They from 3 years to 5 years. ‘‘(C) with respect to fiscal year 1997, for the claim that their bill won't make the deficit Mr. Chairman, I supported the Gephardt discretionary category: $497,816,000,000 in new worse, but they refuse to make the tax cuts substitute, which did not contain provisions in- budget authority and $531,793,000,000 in out- creasing pension contributions by Federal em- lays; contingent on actually producing a lower defi- ‘‘(D) with respect to fiscal year 1998, for cit. The Republican bill is flatly irresponsible ployees or cutting pension benefits for Federal retirees. The Gephardt substitute would have the discretionary category: $489,046,000,000 in from a fiscal point of view, unfair in its ap- new budget authority and $523,703,000,000 in proach and unwise in its details. provided $31.6 billion in tax cuts, offset by $32 outlays; There are more than a hundred Republicans billion in spending cuts and other savings, ‘‘(E) with respect to fiscal year 1999, for the who signed a letter urging that the family tax without punishing Federal employees and re- discretionary category: $491,586,000,000 in new credit be modified, in recognition that families tirees. budget authority and $522,063,000,000 in out- earning more than $95,000 a year don't need Furthermore, the motion to recommit that lays; and ‘‘(F) with respect to fiscal year 2000, for the a gift from the Treasury. But no, this change we just voted on would take out the punitive hit on Federal employees while keeping intact discretionary category: $492,282,000,000 in new wasn't allowed, and those common-sense Re- budget authority and $521,690,000,000 in out- publicans have been told to swallow their the provisions that decrease the levels of ac- lays;’’. doubts and vote with the radicals. crual rates for Members of Congress and our (b) COMMITTEE ALLOCATIONS AND ENFORCE- There are other Republicans who see that staffs. In case some people are trying to score MENT.—Section 602 of the Congressional the bill includes a change to Federal retire- cheap political points by suggesting that this Budget Act of 1974 is amended— ment benefits that even the chairman of the effort to protect Federal employees is moti- (1) in subsection (c), by striking ‘‘1995’’ and Rules Committee says is unfair. These are vated by the self-interest of Members of Con- inserting ‘‘2000’’ and by striking its last sen- tence; and changes that the committee of jurisdiction gress. It should be clear the motion to recom- (2) in subsection (d), by striking ‘‘1992 TO could not find the votes to approve. But those mit is intended to restore fairness to 2 million 1995’’ in the side heading and inserting ‘‘1995 Republicans have been told to swallow their Federal employees, even as those of us who TO 2000’’ and by striking ‘‘1992 through 1995’’ conscience and vote with the radicals. serve in Congress vote to reduce our own and inserting ‘‘1995 through 2000’’. There are Republicans who think that it is benefits. (c) FIVE-YEAR BUDGET RESOLUTIONS.—Sec- silly to cut taxes and run up the deficit. They We hear a lot of nasty and irresponsible tion 606 of the Congressional Budget Act of believe that any tax cut should be contingent rhetoric about faceless bureaucrats and other 1974 is amended— on actually cutting the deficit. But they have vicious attacks on the Federal work force. The (1) in subsection (a), by striking ‘‘1992, 1993, truth is that Federal employees are hard-work- 1994, or 1995’’ and inserting ‘‘1995, 1996, 1997, been told to forget about common sense and 1998, 1999, or 2000’’; and vote with the radicals. ing middle-class taxpayers, people who care (2) in subsection (d)(1), by striking ‘‘1992, There are Republicans who think that it is about their communities, who are devoted to 1993, 1994, and 1995’’ and inserting ‘‘1995, 1996, wrong to cut school lunches in order to give their country and who want to make a decent 1997, 1998, 1999, and 2000’’, and by striking ‘‘(i) wealthy families a tax break averaging life for themselves and their families. and (ii)’’. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4265

(d) EFFECTIVE DATE.—Section 607 of the insert ‘‘for a category for a fiscal year shall outlays for fiscal year 1998 as in effect imme- Congressional Budget Act of 1974 is amended not exceed 0.5 percent of the adjusted discre- diately before the enactment of this Act; and by striking ‘‘1991 to 1998’’ and inserting ‘‘1995 tionary spending limit on outlays for that (B) reductions in the discretionary spend- to 2000’’. fiscal year in fiscal year 1996, 1997, 1998, 1999, ing limit for outlays set forth in section (e) SEQUESTRATION REGARDING CRIME or 2000.’’. 251A(b) of the Balanced Budget and Emer- TRUST FUND.—(1) Section 251A(b)(1) of the SEC. 1005. ENFORCING PAY-AS-YOU-GO. gency Deficit Control Act of 1985 for fiscal Balanced Budget and Emergency Deficit Section 252 of the Balanced Budget and years 1999 and 2000 under section 1002 shall be Control Act of 1985 is amended by striking Emergency Deficit Control Act of 1985 is measured as reductions from the level for subparagraphs (B), (C), and (D) and its last amended— outlays for fiscal year 1999 and 2000, as the two sentences and inserting the following: (1) in the side heading of subsection (a), by case may be, referred to in the last two sen- ‘‘(B) For fiscal year 1996, $1,827,000,000. striking ‘‘1992–1998’’ and inserting ‘‘1995– tences of section 251A(b)(1) as in effect im- ‘‘(C) For fiscal year 1997, $3,082,000,000. 2000’’; mediately before the enactment of this Act. ‘‘(D) For fiscal year 1998, $3,840,000,000. (2) in subsection (d), by striking ‘‘1998’’ (c) In the final sequestration report of the ‘‘(E) For fiscal year 1999, $4,415,000,000. each place it appears and inserting ‘‘2000’’; Director of the Office of Management and ‘‘(F) For fiscal year 2000, $4,874,000,000. and Budget for fiscal year 1996— ‘‘The appropriate levels of new budget au- (3) in subsection (e), by striking ‘‘1991 (1) all adjustments required by section thority are as follows: for fiscal year 1996, through 1998’’ and inserting ‘‘1995 through 251(b)(2) of the Balanced Budget and Emer- $3,357,000,000; for fiscal year 1997, 2000’’ and by striking ‘‘through 1995’’ and in- gency Deficit Control Act of 1985 made after $3,915,000,000; for fiscal year 1998, serting ‘‘through 2000’’. the sequestration preview report for fiscal $4,306,000,000; for fiscal year 1999, SEC. 1006. REPORTS AND ORDERS. year 1996 shall be made to the discretionary $5,089,000,000; and for fiscal year 2000, Section 254 of the Balanced Budget and spending limits set forth in 601(a)(2) of the $5,089,000,000.’’. Emergency Deficit Control Act of 1985 is Congressional Budget Act of 1974 as amended (2) The last two sentences of section 310002 amended— by section 1002; and of the Violent Crime Control and Law En- (1) in subsection (d)(2), by striking ‘‘1998’’ (2) all statutory changes in the discre- forcement Act of 1994 (42 U.S.C. 14212) are re- and inserting ‘‘2000’’; and tionary spending limits set forth in 601(a)(2) pealed. (2) in subsection (g), by striking ‘‘1998’’ of the Congressional Budget Act of 1974 made SEC. 1003. GENERAL STATEMENT AND DEFINI- each place it appears and inserting ‘‘2000’’. after issuance of the sequestration preview TIONS. SEC. 1007. TECHNICAL CORRECTION. report for fiscal year 1996 of the Director of (a) GENERAL STATEMENT.—Section 250(b) of Section 258 of the Balanced Budget and the Office of Management and Budget and the Balanced Budget and Emergency Deficit Emergency Deficit Control Act of 1985, enti- before the date of enactment of this Act Control Act of 1985 is amended by striking tled ‘‘Modification of Presidential Order’’, is shall be made to those limits as amended by the first sentence and inserting the follow- repealed. section 1002. ing: ‘‘This part provides for the enforcement SEC. 1008. EFFECTIVE DATE. TITLE II—EXTENSION OF AUTHORITY OF of deficit reduction through discretionary (a) EXPIRATION.—Section 275(b) of the Bal- FEDERAL COMMUNICATIONS COMMIS- spending limits and pay-as-you-go require- anced Budget and Emergency Deficit Control SION TO USE COMPETITIVE BIDDING ments for fiscal years 1995 through 2000.’’. Act of 1985 is amended by striking ‘‘1995’’ and (b) DEFINITIONS.—Section 250(c) of the Bal- inserting ‘‘2000’’. SEC. 2001. EXTENSION OF AUTHORITY. anced Budget and Emergency Deficit Control (b) EXPIRATION.—Section 14002(c)(3) of the Section 309(j)(11) of the Communications Act of 1985 is amended— Omnibus Budget Reconciliation Act of 1993 (2 Act of 1934 (47 U.S.C. 309(j)(11)) is amended by (1) by striking paragraph (4) and inserting U.S.C. 900 note; 2 U.S.C. 665 note) is repealed. striking ‘‘September 30, 1998’’ and inserting the following: SEC. 1009. SPECIAL RULE ON INTERRELATION- ‘‘September 30, 2000’’. ‘‘(4) The term ‘category’ means all discre- SHIP BETWEEN CHANGES IN DIS- TITLE III—PRIVATIZATION OF THE UNIT- tionary appropriations.’’; CRETIONARY SPENDING LIMITS AND ED STATES ENRICHMENT CORPORA- (2) by striking paragraph (6) and inserting PAY-AS-YOU-GO REQUIREMENTS. TION the following: (a)(1) Section 252 of the Balanced Budget ‘‘(6) The term ‘budgetary resources’ means and Emergency Deficit Control Act of 1985 is SEC. 3001. SHORT TITLE AND REFERENCE. new budget authority, unobligated balances, amended by adding at the end the following (a) SHORT TITLE.—This title may be cited direct spending authority, and obligation new subsection: as the ‘‘USEC Privatization Act’’. limitations.’’; ‘‘(f) SPECIAL RULE ON INTERRELATIONSHIP (b) REFERENCE.—Except as otherwise ex- (3) in paragraph (9), by striking ‘‘1992’’ and BETWEEN SECTIONS 251, 251A, and 252.—When- pressly provided, whenever in this title an inserting ‘‘1995’’; ever the Committee on the Budget of the amendment or repeal is expressed in terms of (4) in paragraph (14), by striking ‘‘1995’’ and House of Representatives or the Senate re- an amendment to, or repeal of, a section or inserting ‘‘2000’’; and ports legislation that decreases the discre- other provision, the reference shall be con- (5) by striking paragraph (17) and by redes- tionary spending limits for budget authority sidered to be made to a section or other pro- ignating paragraphs (18) through (21) as para- and outlays for a fiscal year set forth in sec- vision of the Atomic Energy Act of 1954 (42 graphs (17) through (20), respectively. tion 601(a)(2) of the Congressional Budget U.S.C. 2011 et seq.). SEC. 1004. ENFORCING DISCRETIONARY SPEND- Act of 1974 or in section 251A(b) of the Bal- SEC. 3002. PRODUCTION FACILITY. ING LIMITS. anced Budget and Emergency Deficit Control Paragraph v. of section 11 (42 U.S.C. 2014 v.) Section 251 of the Balanced Budget and Act of 1985, or both, then, for purposes of is amended by striking ‘‘or the construction Emergency Deficit Control Act of 1985 is subsection (b), an amount equal to that de- and operation of a uranium enrichment pro- amended— crease in the discretionary spending limit duction facility using Atomic Vapor Laser (1) in the side heading of subsection (a), by for outlays shall be treated as direct spend- Isotope Separation technology’’. striking ‘‘1991–1998’’ and inserting ‘‘1995– ing legislation decreasing the deficit for that 2000’’; fiscal year.’’. SEC. 3003. DEFINITIONS. (2) in the first sentence of subsection (b)(1), (2) Section 310(a) of the Congressional Section 1201 (42 U.S.C. 2297) is amended— by striking ‘‘1992, 1993, 1994, 1995, 1996, 1997 or Budget Act of 1974 is amended by striking (1) in paragraph (4), by inserting before the 1998’’ and inserting ‘‘1995, 1996, 1997, 1998, 1999, ‘‘or’’ at the end of paragraph (3), by redesig- period the following: ‘‘and any successor cor- or 2000’’ and by striking ‘‘through 1998’’ and nating paragraph (4) as paragraph (5) and by poration established through privatization of inserting ‘‘through 2000’’; striking ‘‘and (3)’’ in such redesignated para- the Corporation’’; (3) in subsection (b)(1), by striking sub- graph (5) and inserting ‘‘(3), and (4)’’, and by (2) by redesignating paragraphs (10) paragraphs (B) and (C) and by striking ‘‘the inserting after paragraph (3) the following through (13) as paragraphs (14) through (17), following:’’ and all that follows through new paragraph: respectively, and by inserting after para- ‘‘The adjustments’’ and inserting ‘‘the fol- ‘‘(4) carry out section 252(f) of the Balanced graph (9) the following new paragraphs: lowing: the adjustments’’; Budget and Emergency Deficit Control Act ‘‘(10) The term ‘low-level radioactive (4) in subsection (b)(2), by striking ‘‘1991, of 1985; or’’. waste’ has the meaning given such term in 1992, 1993, 1994, 1995, 1996, 1997, or 1998’’ and (b) For purposes of section 252(f) of the Bal- section 102(9) of the Low-Level Radioactive inserting ‘‘1995, 1996, 1997, 1998, 1999, or 2000’’ anced Budget and Emergency Deficit Control Waste Policy Amendments Act of 1985 (42 and by striking ‘‘through 1998’’ and inserting Act of 1985 (as amended by subsection U.S.C. 2021b(9)). ‘‘through 2000’’; (a)(1))— ‘‘(11) The term ‘mixed waste’ has the mean- (5) by striking subparagraphs (A), (B), and (1) this Act shall be deemed to be legisla- ing given such term in section 1004(41) of the (C) of subsection (b)(2); tion reported by the Committee on the Budg- Solid Waste Disposal Act (42 U.S.C. 6903(41)). (6) in subsection (b)(2)(E), by striking et of the House of Representatives; and ‘‘(12) The term ‘privatization’ means the clauses (i), (ii), and (iii) and by striking ‘‘(iv) (2)(A) reductions in the discretionary transfer of ownership of the Corporation to if, for fiscal years 1994, 1995, 1996, 1997, and spending limit for outlays set forth in sec- private investors pursuant to chapter 25. 1998’’ and inserting ‘‘If, for fiscal years 1995, tion 601(a)(2) of the Congressional Budget ‘‘(13) The term ‘privatization date’ means 1996, 1997, 1998, 1999, and 2000’’; and Act of 1974 for fiscal years 1999 and 2000 under the date on which 100 percent of ownership of (7) in subsection (b)(2)(F), strike every- section 1002 shall be measured as reductions the Corporation has been transferred to pri- thing after ‘‘the adjustment in outlays’’ and from the discretionary spending limit for vate investors.’’; H 4266 CONGRESSIONAL RECORD — HOUSE April 5, 1995 (3) by inserting after paragraph (17) (as re- to customers on a basis that will allow it to (B) by adding at the end the following: ‘‘As designated) the following new paragraph: attain the normal business objectives of a of the privatization date, any judgment en- ‘‘(18) The term ‘transition date’ means profitmaking corporation.’’. tered against the Corporation imposing li- July 1, 1993.’’; and (d) LEASING OF GASEOUS DIFFUSION FACILI- ability arising out of the operation of the (4) by redesignating the unredesignated TIES OF DEPARTMENT.—Effective on the pri- Corporation from the transition date to the paragraph (14) as paragraph (19). vatization date (as defined in section 1201(13) privatization date shall be considered a judg- SEC. 3004. EMPLOYEES OF THE CORPORATION. of the Atomic Energy Act of 1954), section ment against the United States.’’. (a) PARAGRAPH (2).—Paragraphs (1) and (2) 1403 (42 U.S.C. 2297c–2) is amended by adding (3) Subsection (d) of section 1406 (42 U.S.C. of section 1305(e) (42 U.S.C. 2297b–4(e)(1)(2)) at the end the following: 2297c–5(d)) is amended— are amended to read as follows: ‘‘(h) LOW-LEVEL RADIOACTIVE WASTE AND (A) by inserting ‘‘AND PRIVATIZATION’’ after MIXED WASTE.— ‘‘(1) IN GENERAL.—It is the purpose of this ‘‘TRANSITION’’ in the heading; and subsection to ensure that the privatization ‘‘(1) RESPONSIBILITY OF THE DEPARTMENT; (B) by striking ‘‘the transition date’’ and COSTS.— of the Corporation shall not result in any ad- inserting ‘‘the privatization date (or, in the ‘‘(A) With respect to low-level radioactive verse effects on the pension benefits of em- event the privatization date does not occur, waste and mixed waste generated by the Cor- ployees at facilities that are operated, di- the transition date)’’. rectly or under contract, in the performance poration as a result of the operation of the facilities and related property leased by the (f) TRANSFER OF URANIUM.—Title II (42 of the functions vested in the Corporation. U.S.C. 2297 et seq.) is amended by redesignat- ‘‘(2) APPLICABILITY OF EXISTING COLLECTIVE Corporation pursuant to subsection (a) or as ing section 1408 as section 1409 and by insert- BARGAINING AGREEMENT.—The Corporation a result of treatment of such wastes at a lo- ing after section 1407 the following: shall abide by the terms of the collective cation other than the facilities and related bargaining agreement in effect on the privat- property leased by the Corporation pursuant ‘‘SEC. 1408. TRANSFER OF URANIUM. ization date at each individual facility.’’. to subsection (a) the Department, at the re- ‘‘The Secretary may, before the privatiza- (b) PARAGRAPH (4).—Paragraph (4) of sec- quest of the Corporation, shall— tion date, transfer to the Corporation with- ‘‘(i) accept for treatment or disposal of all tion 1305(e) (42 U.S.C. 2297b–4(e)(4)) is amend- out charge raw uranium, low-enriched ura- such wastes for which treatment or disposal ed— nium, and highly enriched uranium.’’. (1) by striking ‘‘AND DETAILEES’’ in the technologies and capacities exist, whether heading; within the Department or elsewhere; and SEC. 3006. PRIVATIZATION OF THE CORPORA- (2) by striking the first sentence; ‘‘(ii) accept for storage (or ultimately TION. (3) in the second sentence, by inserting treatment or disposal) all such wastes for (a) ESTABLISHMENT OF PRIVATE CORPORA- ‘‘from other Federal employment’’ after which treatment and disposal technologies TION.—Chapter 25 (42 U.S.C. 2297d et seq.) is ‘‘transfer to the Corporation’’; and or capacities do not exist, pending develop- amended by adding at the end the following (4) by striking the last sentence. ment of such technologies or availability of new section: SEC. 3005. MARKETING AND CONTRACTING AU- such capacities for such wastes. THORITY. ‘‘(B) All low-level wastes and mixed wastes ‘‘SEC. 1503. ESTABLISHMENT OF PRIVATE COR- PORATION. (a) MARKETING AUTHORITY.—Section 1401(a) that the Department accepts for treatment, (42 U.S.C. 2297c(a)) is amended effective on storage, or disposal pursuant to subpara- ‘‘(a) ESTABLISHMENT.— the privatization date (as defined in section graph (A) shall, for the purpose of any per- ‘‘(1) IN GENERAL.—In order to facilitate pri- 1201(13) of the Atomic Energy Act of 1954)— mits, licenses, authorizations, agreements, vatization, the Corporation may provide for (1) by amending the subsection heading to or orders involving the Department and the establishment of a private corporation read ‘‘MARKETING AUTHORITY.—’’; and other Federal agencies or State or local gov- organized under the laws of any of the sev- (2) by striking the first sentence. ernments, be deemed to be generated by the eral States. Such corporation shall have (b) TRANSFER OF CONTRACTS.—Section Department and the Department shall han- among its purposes the following: 1401(b) (42 U.S.C. 2297c(b)) is amended— dle such wastes in accordance with any such ‘‘(A) To help maintain a reliable and eco- (1) in paragraph (2)(B), by adding at the permits, licenses, authorizations, agree- nomical domestic source of uranium enrich- end the following: ‘‘The privatization of the ments, or orders. The Department shall ob- ment services. Corporation shall not affect the terms of, or tain any additional permits, licenses, or au- ‘‘(B) To undertake any and all activities as the rights or obligations of the parties to, thorizations necessary to handle such provided in its corporate charter. any such power purchase contract.’’; and wastes, shall amend any such agreements or ‘‘(2) AUTHORITIES.—The corporation estab- (2) by adding at the end the following: orders as necessary to handle such wastes, lished pursuant to paragraph (1) shall be au- ‘‘(3) EFFECT OF TRANSFER.— and shall handle such wastes in accordance thorized to— ‘‘(A) As a result of the transfer pursuant to therewith. ‘‘(A) enrich uranium, provide for uranium ‘‘(C) The Corporation shall reimburse the paragraph (1), all rights, privileges, and ben- to be enriched by others, or acquire enriched Department for the treatment, storage, or efits under such contracts, agreements, and uranium (including low-enriched uranium disposal of low-level radioactive waste or leases, including the right to amend, modify, derived from highly enriched uranium); mixed waste pursuant to subparagraph (A) in extend, revise, or terminate any of such con- ‘‘(B) conduct, or provide for conducting, tracts, agreements, or leases were irrev- an amount equal to the Department’s costs but in no event greater than an amount those research and development activities ocably assigned to the Corporation for its ex- related to uranium enrichment and related clusive benefit. equal to that which would be charged by processes and activities the corporation con- ‘‘(B) Notwithstanding the transfer pursu- commercial, State, regional, or interstate siders necessary or advisable to maintain it- ant to paragraph (1), the United States shall compact entities for treatment, storage, or self as a commercial enterprise operating on remain obligated to the parties to the con- disposal of such waste. a profitable and efficient basis; tracts, agreements, and leases transferred ‘‘(2) AGREEMENTS WITH OTHER PERSONS.— ‘‘(C) enter into transactions regarding ura- pursuant to paragraph (1) for the perform- The Corporation may also enter into agree- ance of the obligations of the United States ments for the treatment, storage, or disposal nium, enriched uranium, or depleted ura- thereunder during the term thereof. The Cor- of low-level radioactive waste and mixed nium with— poration shall reimburse the United States waste generated by the Corporation as a re- ‘‘(i) persons licensed under section 53, 63, for any amount paid by the United States in sult of the operation of the facilities and re- 103, or 104 in accordance with the licenses respect of such obligations arising after the lated property leased by the Corporation held by those persons; privatization date to the extent such amount pursuant to subsection (a) with any person ‘‘(ii) persons in accordance with, and with- is a legal and valid obligation of the Corpora- other than the Department that is author- in the period of, an agreement for coopera- tion then due. ized by applicable laws and regulations to tion arranged under section 123; or ‘‘(C) After the privatization date, upon any treat, store, or dispose of such wastes.’’. ‘‘(iii) persons otherwise authorized by law material amendment, modification, exten- (e) LIABILITIES.— to enter into such transactions; sion, revision, replacement, or termination (1) Subsection (a) of section 1406 (42 U.S.C. ‘‘(D) enter into contracts with persons li- of any contract, agreement, or lease trans- 2297c–5(a)) is amended— censed under section 53, 63, 103, or 104, for as ferred under paragraph (1), the United States (A) by inserting ‘‘AND PRIVATIZATION’’ after long as the corporation considers necessary shall be released from further obligation ‘‘TRANSITION’’ in the heading; and or desirable, to provide uranium or uranium under such contract, agreement, or lease, ex- (B) by adding at the end the following: ‘‘As enrichment and related services; cept that such action shall not release the of the privatization date, all liabilities at- ‘‘(E) enter into contracts to provide ura- United States from obligations arising under tributable to the operation of the Corpora- nium or uranium enrichment and related such contract, agreement, or lease prior to tion from the transition date to the privat- services in accordance with, and within the such time.’’. ization date shall be direct liabilities of the period of, an agreement for cooperation ar- (c) PRICING.—Section 1402 (42 U.S.C. 2297c– United States.’’. ranged under section 123 or as otherwise au- 1) is amended to read as follows: (2) Subsection (b) of section 1406 (42 U.S.C. thorized by law; and ‘‘SEC. 1402. PRICING. 2297c–5(b)) is amended— ‘‘(F) take any and all such other actions as ‘‘The Corporation shall establish prices for (A) by inserting ‘‘AND PRIVATIZATION’’ after are permitted by the law of the jurisdiction its products, materials, and services provided ‘‘TRANSITION’’ in the heading; and of incorporation of the corporation. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4267

‘‘(3) TRANSFER OF ASSETS.—For purposes of the date shares are first offered to the public or other relief with respect to any claim implementing the privatization, the Cor- pursuant to such public offering. arising out of, or resulting from, acts or poration may transfer some or all of its as- ‘‘(e) ADEQUATE PROCEEDS.—The Secretary omissions under this chapter.’’. sets and obligations to the corporation es- of Energy shall not allow the privatization of (e) APPLICATION OF PRIVATIZATION PRO- tablished pursuant to this section, includ- the Corporation unless before the sale date CEEDS.—Chapter 25 (as amended by sub- ing— the Secretary determines that the estimated section (d)) is amended by adding at the end ‘‘(A) all of the Corporation’s assets, includ- sum of the gross proceeds from the sale of the following new section: ing all contracts, agreements, and leases, in- the Corporation will be an adequate ‘‘SEC. 1507. APPLICATION OF PRIVATIZATION cluding all uranium enrichment contracts amount.’’. PROCEEDS. and power purchase contracts; (b) OWNERSHIP LIMITATIONS.—Chapter 25 (as ‘‘The proceeds from the privatization shall ‘‘(B) all funds in accounts of the Corpora- amended by subsection (a)) is amended by be included in the budget baseline required tion held by the Treasury or on deposit with adding at the end the following new section: by the Balanced Budget and Emergency Defi- any bank or other financial institution; ‘‘SEC. 1504. OWNERSHIP LIMITATIONS. cit Control Act of 1985 and shall be counted ‘‘(C) all of the Corporation’s rights, duties, ‘‘(a) SECURITIES LIMITATION.—In the event as an offset to direct spending for purposes of and obligations, accruing subsequent to the that the privatization is implemented by section 252 of such Act, notwithstanding sec- privatization date, under the power purchase means of a public offering, during a period of tion 257(e) of such Act.’’. contracts covered by section 1401(b)(2)(B); 3 years beginning on the privatization date, (f) CONFORMING AMENDMENT.—The table of and no person, directly or indirectly, may ac- contents for chapter 25 is amended by insert- ‘‘(D) all of the Corporation’s rights, duties, quire or hold securities representing more ing after the item for section 1502 the follow- and obligations, accruing subsequent to the than 10 percent of the total votes of all out- ing: privatization date, under the lease agree- standing voting securities of the Corpora- ment between the Department and the Cor- tion. ‘‘Sec. 1503. Establishment of Private Cor- poration. poration executed by the Department and ‘‘(b) APPLICATION.—Subsection (a) shall not the Corporation pursuant to section 1403. apply— ‘‘Sec. 1504. Ownership Limitations. ‘‘(4) MERGER OR CONSOLIDATION.—For pur- ‘‘(1) to any employee stock ownership plan ‘‘Sec. 1505. Exemption from Liability. poses of implementing the privatization, the of the Corporation, ‘‘Sec. 1506. Resolution of Certain Issues. Corporation may merge or consolidate with ‘‘(2) to underwriting syndicates holding ‘‘Sec. 1507. Application of Privatization Pro- the corporation established pursuant to sub- shares for resale, or ceeds.’’. section (a)(1) if such action is contemplated ‘‘(3) in the case of shares beneficially held (g) Section 193 (42 U.S.C. 2243) is amended by the plan for privatization approved by the for others, to commercial banks, broker- by adding at the end the following: President under section 1502(b). The Board dealers, clearing corporations, or other ‘‘(f) LIMITATION.—If the privatization of the shall have exclusive authority to approve nominees. United States Enrichment Corporation re- such merger or consolidation and to take all ‘‘(c) No director, officer, or employee of the sults in the Corporation being— further actions necessary to consummate Corporation may acquire any securities, or ‘‘(1) owned, controlled, or dominated by a such merger or consolidation, and no action any right to acquire securities, of the Cor- foreign corporation or a foreign government, by or in respect of shareholders shall be re- poration— or quired. The merger or consolidation shall be ‘‘(1) in the public offering of securities of ‘‘(2) otherwise inimical to the common de- effected in accordance with, and have the ef- the Corporation in the implementation of fense or security of the United States, fects of a merger or consolidation under, the the privatization, any license held by the Corporation under laws of the jurisdiction of incorporation of ‘‘(2) pursuant to any agreement, arrange- sections 53 and 63 shall be terminated.’’. ment, or understanding entered into before the surviving corporation, and all rights and (h) PERIOD FOR CONGRESSIONAL REVIEW.— benefits provided under this title to the Cor- the privatization date, or Section 1502(d) (42 U.S.C. 2297d–1(d)) is poration shall apply to the surviving cor- ‘‘(3) before the election of directors of the amended by striking ‘‘less than 60 days after Corporation under section 1503(d) on any poration as if it were the Corporation. notification of the Congress’’ and inserting terms more favorable than those offered to ‘‘(b) OSHA REQUIREMENTS.—For purposes ‘‘less than 60 days after the date of the re- the general public.’’. of the regulation of radiological and port to Congress by the Comptroller General (c) EXEMPTION FROM LIABILITY.—Chapter 25 nonradiological hazards under the Occupa- under subsection (c)’’. tional Safety and Health Act of 1970, the cor- (as amended by subsection (b)) is amended by adding at the end the following new section: SEC. 3007. PERIODIC CERTIFICATION OF COMPLI- poration established pursuant to subsection ANCE. ‘‘SEC. 1505. EXEMPTION FROM LIABILITY. (a)(1) shall be treated in the same manner as Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is ‘‘(a) IN GENERAL.—No director, officer, em- other employers licensed by the Nuclear amended by striking ‘‘ANNUAL APPLICATION ployee, or agent of the Corporation shall be Regulatory Commission. Any interagency FOR CERTIFICATE OF COMPLIANCE.—The Cor- liable, for money damages or otherwise, to agreement entered into between the Nuclear poration shall apply at least annually to the any party if, with respect to the subject mat- Regulatory Commission and the Occupa- Nuclear Regulatory Commission for a cer- ter of the action, suit, or proceeding, such tional Safety and Health Administration tificate of compliance under paragraph (1).’’ person was fulfilling a duty, in connection governing the scope of their respective regu- and inserting ‘‘PERIODIC APPLICATION FOR with any action taken in connection with latory authorities shall apply to the corpora- CERTIFICATE OF COMPLIANCE.—The Corpora- the privatization, which such person in good tion as if the corporation were a Nuclear tion shall apply to the Nuclear Regulatory faith reasonably believed to be required by Regulatory Commission licensee. Commission for a certificate of compliance law or vested in such person. ‘‘(c) LEGAL STATUS OF PRIVATE CORPORA- under paragraph (1) periodically, as deter- ‘‘(b) EXCEPTION.—The privatization shall be TION.— mined by the Nuclear Regulatory Commis- subject to the Securities Act of 1933 and the ‘‘(1) NOT FEDERAL AGENCY.—The corpora- sion, but not less than every 5 years.’’. tion established pursuant to subsection (a)(1) Securities Exchange Act of 1934. The exemp- shall not be an agency, instrumentality, or tion set forth in subsection (a) shall not SEC. 3008. LICENSING OF OTHER TECHNOLOGIES. establishment of the United States Govern- apply to claims arising under such Acts or Subsection (a) of section 1702 (42 U.S.C. ment and shall not be a Government cor- under the Constitution or laws of any State, 2297f–1(a)) is amended by striking ‘‘other poration or Government-controlled corpora- territory, or possession of the United States than’’ and inserting ‘‘including’’. tion. relating to transactions in securities, which SEC. 3009. CONFORMING AMENDMENTS. ‘‘(2) NO RECOURSE AGAINST UNITED STATES.— claims are in connection with a public offer- (a) REPEALS IN ATOMIC ENERGY ACT OF 1954 Obligations of the corporation established ing implementing the privatization.’’. AS OF THE PRIVATIZATION DATE.— pursuant to subsection (a)(1) shall not be ob- (d) RESOLUTION OF CERTAIN ISSUES.—Chap- (1) REPEALS.—As of the privatization date ligations of, or guaranteed as to principal or ter 25 (as amended by subsection (c)) is (as defined in section 1201(13) of the Atomic interest by, the Corporation or the United amended by adding at the end the following Energy Act of 1954), the following sections States, and the obligations shall so plainly new section: (as in effect on such privatization date) of state. ‘‘SEC. 1506. RESOLUTION OF CERTAIN ISSUES. the Atomic Energy Act of 1954 are repealed: ‘‘(3) NO CLAIMS COURT JURISDICTION.—No ac- ‘‘(a) CORPORATION ACTIONS.—Notwithstand- (A) Section 1202. tion under section 1491 of title 28, United ing any provision of any agreement to which (B) Sections 1301 through 1304. States Code, shall be allowable against the the Corporation is a party, the Corporation (C) Sections 1306 through 1316. United States based on the actions of the shall not be considered to be in breach, de- (D) Sections 1404 and 1405. corporation established pursuant to sub- fault, or violation of any such agreement be- (E) Section 1601. section (a)(1). cause of any provision of this chapter or any (F) Sections 1603 through 1607. ‘‘(d) BOARD OF DIRECTOR’S ELECTION AFTER action the Corporation is required to take (2) CONFORMING AMENDMENT.—The table of PUBLIC OFFERING.—In the event that the pri- under this chapter. contents of such Act is amended by repealing vatization is implemented by means of a ‘‘(b) RIGHT TO SUE WITHDRAWN.—The Unit- the items referring to sections repealed by public offering, an election of the members ed States hereby withdraws any stated or paragraph (1). of the board of directors of the Corporation implied consent for the United States, or any (b) STATUTORY MODIFICATIONS.—As of such by the shareholders shall be conducted be- agent or officer of the United States, to be privatization date, the following shall take fore the end of the 1-year period beginning sued by any person for any legal, equitable, effect: H 4268 CONGRESSIONAL RECORD — HOUSE April 5, 1995 (1) For purposes of title I of the Atomic Energy Act of 1954, all references in such Act to the ‘‘United States Enrichment Corpora- 1 ‘‘8 ...... On and after the date of tion’’ shall be deemed to be references to the ‘‘7 ⁄2 ...... After December 31, 1969.’’ the enactment of the De- corporation established pursuant to section and inserting the following: 1503 of the Atomic Energy Act of 1954 (as partment of Defense Au- added by section 6(a)). thorization Act, 1984.’’ (2) Section 1018(1) of the Energy Policy Act and inserting the following: of 1992 (42 U.S.C. 2296b–7(1)) is amended by striking ‘‘the United States’’ and all that ‘‘71⁄2 ...... January 1, 1970, to Decem- follows through the period and inserting ber 31, 1995.

‘‘the corporation referred to in section ‘‘81⁄2 ...... January 1, 1996, to Decem- 1201(4) of the Atomic Energy Act of 1954.’’. ber 31, 1996. ‘‘8 ...... The date of the enactment (3) Section 9101(3) of title 31, United States of the Department of De- ‘‘9 ...... January 1, 1997, to Decem- Code, is amended by striking subparagraph fense Authorization Act, ber 31, 1997. (N), as added by section 902(b) of Public Law 1984, to December 31, 1995. 102–486. ‘‘91⁄2 ...... After December 31, 1997.’’; ‘‘81⁄2 ...... January 1, 1996, to Decem- (c) REVISION OF SECTION 1305.—As of such (C) in the matter relating to a Member for privatization date, section 1305 of the Atomic ber 31, 1996. Member service by striking Energy Act of 1954 (42 U.S.C 2297b–4) is ‘‘9 ...... January 1, 1997, to Decem- amended— ber 31, 1997. (1) by repealing subsections (a), (b), (c), and ‘‘91⁄2 ...... After December 31, 1997.’’; (d), and (G) in the matter relating to a United (2) in subsection (e)— ‘‘8 ...... After December 31, 1969.’’ States magistrate by striking (A) by striking the subsection designation and heading, and inserting the following: (B) by redesignating paragraphs (1) and (2) (as added by section 4(a)) as subsections (a) and (b) and by moving the margins 2-ems to ‘‘8 ...... After September 30, 1987.’’ the left, ‘‘8 ...... January 1, 1970, to Decem- and inserting the following: (C) by striking paragraph (3), and (D) by redesignating paragraph (4) (as ber 31, 1995. amended by section 4(b)) as subsection (c), ‘‘81⁄2 ...... January 1, 1996, to Decem- and by moving the margins 2-ems to the left. ber 31, 1996. TITLE IV—RETIREMENT ‘‘9 ...... January 1, 1997, to Decem- ‘‘8 ...... October 1, 1987, to Decem- ber 31, 1995. SEC. 4001. SHORT TITLE; TABLE OF CONTENTS. ber 31, 1997. 1 ‘‘81⁄2 ...... January 1, 1996, to Decem- (a) SHORT TITLE.—This title may be cited ‘‘9 ⁄2 ...... After December 31, 1997.’’; ber 31, 1996. as the ‘‘Congressional and Federal Employee (D) in the matter relating to a law enforce- Retirement Equalization Act’’. ‘‘9 ...... January 1, 1997, to Decem- ment officer for law enforcement service and (b) TABLE OF CONTENTS.—The table of con- ber 31, 1997. firefighter for firefighter service by striking tents for this title is as follows: ‘‘91⁄2 ...... After December 31, 1997.’’; Sec. 4001. Short title; table of contents. and Sec. 4002. Amendment of title 5, United (H) in the matter relating to a Claims States Code. Court judge by striking Sec. 4003. Individual contributions. ‘‘71⁄2 ...... After December 31, 1974.’’ Sec. 4004. Average pay. and inserting the following: Sec. 4005. Accrual rates. Sec. 4006. Elimination of Members’ option to elect not to participate in ‘‘8 ...... After September 30, 1988.’’ FERS. and inserting the following: SEC. 4002. AMENDMENT OF TITLE 5, UNITED ‘‘71⁄2 ...... January 1, 1975, to Decem- STATES CODE. ber 31, 1995. Except as otherwise expressly provided, ‘‘9 ...... January 1, 1996, to Decem- whenever in this title an amendment or re- ber 31, 1996. peal is expressed in terms of an amendment ‘‘8 ...... October 1, 1988, to Decem- to, or repeal of, a section or other provision, ‘‘91⁄2 ...... January 1, 1997, to Decem- ber 31, 1995. the reference shall be considered to be made ber 31, 1997. ‘‘81⁄2 ...... January 1, 1996, to Decem- to a section or other provision of title 5, ‘‘10 ...... After December 31, 1997.’’; ber 31, 1996. United States Code. (E) in the matter relating to a bankruptcy ‘‘9 ...... January 1, 1997, to Decem- SEC. 4003. INDIVIDUAL CONTRIBUTIONS. judge by striking ber 31, 1997. (a) CSRS.— ‘‘91⁄2 ...... After December 31, 1997.’’. (1) IN GENERAL.—The table under section 8334(c) is amended— (2) DEDUCTIONS.—The first sentence of sec- (A) in the matter relating to an employee tion 8334(a)(1) is amended to read as follows: by striking ‘‘8 ...... After December 31, 1983.’’ ‘‘The employing agency shall deduct and withhold from the basic pay of an employee, and inserting the following: Member, Congressional employee, law en- forcement officer, firefighter, bankruptcy judge, judge of the United States Court of ‘‘7 ...... After December 31, 1969.’’ Appeals for the Armed Forces, United States and inserting the following: magistrate, or Claims Court judge, as the ‘‘8 ...... January 1, 1984, to Decem- case may be, the percentage of basic pay ap- ber 31, 1995. plicable under subsection (c).’’. ‘‘81⁄2 ...... January 1, 1996, to Decem- (3) GOVERNMENT CONTRIBUTIONS.— ber 31, 1996. (A) IN GENERAL.—Section 8334(a) is amend- ‘‘7 ...... January 1, 1970, to Decem- ‘‘9 ...... January 1, 1997, to Decem- ed by adding at the end the following: ber 31, 1995. ber 31, 1997. ‘‘(3) The amount to be contributed under ‘‘81⁄2 ...... January 1, 1996, to Decem- the second sentence of paragraph (1) with re- ‘‘91⁄2 ...... After December 31, 1997.’’; ber 31, 1996. spect to any service period occurring during ‘‘9 ...... January 1, 1997, to Decem- (F) in the matter relating to a judge of the any calendar year after 1995 shall be deter- ber 31, 1997. United States Court of Appeals for the mined as if the percentage then applicable under subsection (c) were the percentage ‘‘91⁄2 ...... After December 31, 1997.’’; Armed Forces for service as a judge of that court by striking that was applicable for calendar year 1995 (B) in the matter relating to a Member or plus 3 percent.’’. employee for Congressional employee service (B) TECHNICAL AMENDMENT.—The second by striking sentence of section 8334(a)(1) is amended by April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4269 striking the period at the end and inserting period for service as an ‘employee’, subject (b) FERS.— ‘‘, subject to paragraph (3).’’. to paragraph (1)(B).’’. (1) IN GENERAL.—Section 8422(a) is amended (4) OTHER SERVICE.— (B) VOLUNTEER SERVICE.—Section 8334(l) is by striking paragraph (2) and inserting the (A) MILITARY SERVICE.—Section 8334(j) is amended— following: amended— (i) in paragraph (1) by striking the period ‘‘(2) The percentage to be deducted and (i) in paragraph (1)(A) by inserting ‘‘and at the end and inserting ‘‘, subject to para- withheld from basic pay for any pay period subject to paragraph (5),’’ after ‘‘Except as graph (4).’’; and shall be equal to— provided in subparagraph (B),’’; and (ii) by adding at the end the following: ‘‘(A) the applicable percentage under para- ‘‘(4) Effective with respect to any period of graph (3), minus (ii) by adding at the end the following: service after December 31, 1995, the percent- ‘‘(B) the percentage then in effect under ‘‘(5) Effective with respect to any period of age of the readjustment allowance or stipend section 3101(a) of the Internal Revenue Code military service after December 31, 1995, the (as the case may be) payable under para- of 1986 (relating to rate of tax for old-age, percentage of basic pay under section 204 of graph (1) shall be equal to the same percent- survivors, and disability insurance). title 37 payable under paragraph (1) shall be age as would be applicable under section ‘‘(3) The applicable percentage under this equal to the same percentage as would be ap- 8334(c) for that same period for service as an paragraph, for civilian service after Decem- plicable under section 8334(c) for that same ‘employee’.’’. ber 31, 1995, shall be as follows:

Percentage of basic pay Service period

‘‘Employee ...... 81⁄2 ...... January 1, 1996, to December 31, 1996. ‘‘9 ...... January 1, 1997, to December 31, 1997. ‘‘91⁄2 ...... After December 31, 1997. ‘‘Congressional employee ...... 81⁄2 ...... January 1, 1996, to December 31, 1996. ‘‘9 ...... January 1, 1997, to December 31, 1997. ‘‘91⁄2 ...... After December 31, 1997. ‘‘Member ...... 81⁄2 ...... January 1, 1996, to December 31, 1996. ‘‘9 ...... January 1, 1997, to December 31, 1997. ‘‘91⁄2 ...... After December 31, 1997. ‘‘Law enforcement officer ...... 9 ...... January 1, 1996, to December 31, 1996. ‘‘91⁄2 ...... January 1, 1997, to December 31, 1997. ‘‘10 ...... After December 31, 1997. ‘‘Firefighter ...... 9 ...... January 1, 1996, to December 31, 1996. ‘‘91⁄2 ...... January 1, 1997, to December 31, 1997. ‘‘10 ...... After December 31, 1997. ‘‘Air traffic controller ...... 9 ...... January 1, 1996, to December 31, 1996. ‘‘91⁄2 ...... January 1, 1997, to December 31, 1997. ‘‘10 ...... After December 31, 1997.’’.

(2) OTHER SERVICE.— ‘‘§ 8339a. Special rules relating to average pay ‘‘(1) during calendar year 1996, have the (A) MILITARY SERVICE.—Section 8422(e) is ‘‘(a) Notwithstanding section 8331(4), for meaning given such term by subsection amended— purposes of computing any annuity or survi- (b)(1); or (i) in paragraph (1)(A) by inserting ‘‘and vor annuity under this subchapter, eligi- ‘‘(2) after calendar year 1996, have the subject to paragraph (6),’’ after ‘‘Except as bility for which is based on a separation oc- meaning given such term by subsection provided in subparagraph (B),’’; and curring after December 31, 1995, ‘average pay’ (b)(2). (ii) by adding at the end the following: shall, if the separation occurs— ‘‘(b) For purposes of this section— ‘‘(6) Effective with respect to any period of ‘‘(1) during calendar year 1996, have the ‘‘(1) the meaning given the term ‘average military service after December 31, 1995, the meaning given such term by subsection pay’ by this paragraph shall be the meaning percentage of basic pay under section 204 of (b)(1); or such term would have under section 8401(3) if title 37 payable under paragraph (1) shall be ‘‘(2) after calendar year 1996, have the ‘4 consecutive years’ were substituted for ‘3 equal to the same percentage as would be ap- meaning given such term by subsection consecutive years’ and ‘4 years’ were sub- stituted for ‘3 years’; and plicable under section 8422(a)(3) for that (b)(2). ‘‘(2) the meaning given the term ‘average same period for service as an ‘employee’, ‘‘(b) For purposes of this section— ‘‘(1) the meaning given the term ‘average pay’ by this paragraph shall be the meaning subject to paragraph (1)(B).’’. pay’ by this paragraph shall be the meaning such term would have under section 8401(3) if (B) VOLUNTEER SERVICE.—Section 8422(f) is such term would have under section 8331(4) if ‘5 consecutive years’ were substituted for ‘3 amended— ‘4 consecutive years’ were substituted for ‘3 consecutive years’ and ‘5 years’ were sub- (i) in paragraph (1) by striking the period consecutive years’ and ‘4 years’ were sub- stituted for ‘3 years’. at the end and inserting ‘‘, subject to para- stituted for ‘3 years’; and ‘‘(c) Nothing in this section shall be con- graph (4).’’; and ‘‘(2) the meaning given the term ‘average sidered to apply with respect to any annuity (ii) by adding at the end the following: pay’ by this paragraph shall be the meaning or survivor annuity eligibility for which is ‘‘(4) Effective with respect to any period of such term would have under section 8331(4) if based on a separation occurring before Janu- service after December 31, 1995, the percent- ‘5 consecutive years’ were substituted for ‘3 ary 1, 1996. age of the readjustment allowance or stipend consecutive years’ and ‘5 years’ were sub- ‘‘(d) The Office of Personnel Management (as the case may be) payable under para- stituted for ‘3 years’. shall prescribe such regulations as may be graph (1) shall be equal to the same percent- ‘‘(c) Nothing in this section shall be con- necessary to carry out this section.’’. age as would be applicable under section sidered to apply with respect to any annuity (2) TECHNICAL AMENDMENTS.— 8422(a)(3) for that same period for service as or survivor annuity eligibility for which is (A) Section 8401(3) is amended by striking an employee.’’. based on a separation occurring before Janu- ‘‘effect;’’ and inserting ‘‘effect, subject to (c) EXEMPTION.— ary 1, 1996. section 8461a;’’. (1) IN GENERAL.—Section 1005(d) of title 39, ‘‘(d) The Office of Personnel Management (B) The table of sections for chapter 84 is United States Code, is amended by adding at shall prescribe such regulations as may be amended by inserting after the item relating the end the following: necessary to carry out this section.’’. to section 8461 the following: ‘‘(3) For purposes of applying chapters 83 (2) TECHNICAL AMENDMENTS.— ‘‘8461a. Special rules relating to average and 84 of title 5 with respect to any officer or (A) Section 8331(4) is amended by striking pay.’’. employee of the Postal Service, section 4003 ‘‘effect;’’ and inserting ‘‘effect, subject to (c) REGULATIONS.—The Office of Personnel of the Congressional and Federal Employee section 8339a;’’. Management shall prescribe such regulations (B) The table of sections for chapter 83 is Retirement Equalization Act shall be treated as may be necessary to carry out the pur- amended by inserting after the item relating as if it had not been enacted.’’. poses of this section, including regulations to section 8339 the following: (2) TECHNICAL AMENDMENT.—The second to provide that section 302(a)(6) of the Fed- sentence of section 1005(d)(1) of title 39, Unit- ‘‘8339a. Special rules relating to average eral Employees’ Retirement System Act of pay.’’. ed States Code, is amended by striking the 1986 (5 U.S.C. 8331 note) shall be carried out (b) FERS.— period and inserting ‘‘, subject to paragraph in a manner consistent with the amendments (1) IN GENERAL.—Chapter 84 is amended by (3).’’. made by this section. inserting after section 8461 the following: (d) EFFECTIVE DATE.—This section shall SEC. 4005. ACCRUAL RATES. take effect on January 1, 1996. ‘‘§ 8461a. Special rules relating to average pay (a) CSRS.— ‘‘(a) Notwithstanding section 8401(3), for (1) MEMBERS.— SEC. 4004. AVERAGE PAY. purposes of computing any annuity or survi- (A) IN GENERAL.—Section 8339(c) is amend- (a) CSRS.— vor annuity under this chapter, eligibility ed by striking all that follows ‘‘with respect (1) IN GENERAL.—Subchapter III of chapter for which is based on a separation occurring to—’’ and inserting the following: 83 is amended by inserting after section 8339 after December 31, 1995, ‘average pay’ shall, ‘‘(1) so much of his service as a Member as the following: if the separation occurs— is or was performed before January 1, 1996; H 4270 CONGRESSIONAL RECORD — HOUSE April 5, 1995 ‘‘(2) so much of his military service as— changes in the routine service costs of SEC. 5302. MAINTAINING SAVINGS RESULTING ‘‘(A) is creditable for the purpose of this skilled nursing facilities occurring during FROM TEMPORARY FREEZE ON PAY- subsection; and cost reporting periods which began during MENT INCREASES FOR HOME ‘‘(B) is or was performed before January 1, fiscal year 1994 or fiscal year 1995).’’. HEALTH SERVICES. 1996; and (2) NO EXCEPTIONS PERMITTED BASED ON (a) BASING UPDATES TO PER VISIT COST ‘‘(3) so much of his Congressional employee AMENDMENT.—The Secretary of Health and LIMITS ON LIMITS FOR FISCAL YEAR 1993.— service as is or was performed before Janu- Human Services shall not consider the Section 1861(v)(1)(L)(iii) of the Social Secu- ary 1, 1996; amendment made by paragraph (1) in mak- rity Act (42 U.S.C. 1395x(v)(1)(L)(iii)) is by multiplying 21⁄2 percent of his average pay ing any adjustments pursuant to section amended by adding at the end the following by the years of that service.’’. 1888(c) of the Social Security Act. sentence: ‘‘In establishing limits under this (B) TECHNICAL AMENDMENT.—Section (b) PAYMENTS DETERMINED ON PROSPECTIVE subparagraph, the Secretary may not take 8332(d) is amended by striking ‘‘section BASIS.—Any change made by the Secretary into account any changes in the costs of the 8339(c)(1)’’ and inserting ‘‘section 8339(c)’’. of Health and Human Services in the amount provision of services furnished by home (2) CONGRESSIONAL EMPLOYEES.—Section of any prospective payment paid to a skilled health agencies with respect to cost report- 8339(b) is amended— nursing facility under section 1888(d) of the ing periods which began on or after July 1, (A) by inserting ‘‘so much of’’ after ‘‘is Social Security Act for cost reporting peri- 1994, and before July 1, 1996.’’. computed with respect to’’; and ods beginning on or after October 1, 1995, (b) NO EXCEPTIONS PERMITTED BASED ON (B) by inserting ‘‘as is or was performed be- may not take into account any changes in AMENDMENT.—The Secretary of Health and fore January 1, 1996,’’ before ‘‘by multiply- the costs of services occurring during cost Human Services shall not consider the ing’’. reporting periods which began during fiscal amendment made by subsection (a) in mak- (b) FERS.— year 1994 or fiscal year 1995. ing any exemptions and exceptions pursuant (1) MEMBERS.—Section 8415(b) is amended Subtitle B—Provisions Relating to Part B of to section 1861(v)(1)(L)(ii) of the Social Secu- by striking ‘‘shall’’ and inserting ‘‘shall, to the Medicare Program rity Act. the extent that such service is or was per- SEC. 5201. SETTING THE PART B PREMIUM AT 25 TITLE VI—CONTRACT WITH AMERICA TAX formed before January 1, 1996,’’. PERCENT OF PROGRAM EXPENDI- RELIEF ACT OF 1995 (2) CONGRESSIONAL EMPLOYEES.—Section TURES PERMANENTLY. SEC. 6001. SHORT TITLE; AMENDMENT OF 1986 8415(c) is amended by striking ‘‘shall’’ and (a) IN GENERAL.—Section 1839(a)(3) of the CODE. inserting ‘‘shall, to the extent that such Social Security Act (42 U.S.C. 1395r(a)(3)) is (a) SHORT TITLE.—This title may be cited service is or was performed before January 1, amended by striking ‘‘The monthly pre- as the ‘‘Contract With America Tax Relief 1996,’’. mium’’ and all that follows through ‘‘Novem- Act of 1995’’. (3) PROVISIONS RELATING TO THE 1.1 PERCENT ber 1.’’ and inserting the following: ‘‘The (b) AMENDMENT OF 1986 CODE.—Except as ACCRUAL RATE.—Section 8415(g) is amended— monthly premium shall be equal to 50 per- otherwise expressly provided, whenever in (A) in paragraph (1) by striking ‘‘an em- cent of the monthly actuarial rate for enroll- this title an amendment or repeal is ex- ployee under paragraph (2),’’ and inserting ees age 65 and over, as determined according pressed in terms of an amendment to, or re- ‘‘an employee or Member under paragraph to paragraph (1), for that succeeding cal- peal of, a section or other provision, the ref- (2),’’; endar year.’’. erence shall be considered to be made to a (B) in paragraph (2) by inserting ‘‘or Mem- (b) CONFORMING AMENDMENTS.—Section section or other provision of the Internal ber’’ after ‘‘in the case of an employee’’ and 1839 of such Act (42 U.S.C. 1395r) is amend- Revenue Code of 1986. by striking ‘‘Congressional employee,’’; and ed— (c) TABLE OF CONTENTS.— (C) by adding at the end the following: (1) in subsection (a)(2), by striking ‘‘(b) and ‘‘(3) Notwithstanding any other provision (e)’’ and inserting ‘‘(b), (c), (e), and (f)’’; TITLE V—CONTRACT WITH AMERICA TAX of this subsection— (2) in the last sentence of subsection (a)(3), RELIEF ACT OF 1995 ‘‘(A) this subsection shall not apply in the by striking ‘‘and the derivation of the dollar Sec. 6001. Short title; amendment of 1986 case of a Member or Congressional employee amounts specified in this paragraph’’; and Code. whose separation (on which entitlement to (3) in subsection (e)— annuity is based) occurs before January 1, (A) by striking ‘‘(1)(A) Notwithstanding’’ Subtitle A—American Dream Restoration 1996; and and all that follows through ‘‘(B)’’, Sec. 6101. Family tax credit. ‘‘(B) in the case of a Member or Congres- (B) by striking paragraph (2), and Sec. 6102. Credit to reduce marriage penalty. sional employee to whom this subsection ap- (C) by redesignating clauses (i) through (v) Sec. 6103. Establishment of American Dream plies, the 1.1 percent accrual rate shall apply as paragraphs (1) through (5). Savings Accounts. only with respect to any period of service Subtitle C—Provisions Relating to Parts A Sec. 6104. Spousal IRA computed on basis of other than a period with respect to which and B of the Medicare Program compensation of both spouses. the 1.7 percent accrual rate applies under SEC. 5301. PERMANENT EXTENSION OF CERTAIN Subtitle B—Senior Citizens’ Equity subsection (b) or (c).’’. SECONDARY PAYER PROVISIONS. PART I—REPEAL OF INCREASE IN TAX ON SEC. 4006. ELIMINATION OF MEMBERS’ OPTION (a) DATA MATCH.— SOCIAL SECURITY BENEFITS TO ELECT NOT TO PARTICIPATE IN (1) Section 1862(b)(5)(C) of the Social Secu- FERS. rity Act (42 U.S.C. 1395y(b)(5)(C)) is amended Sec. 6201. Repeal of increase in tax on social (a) IN GENERAL.—Section 8401(20) is amend- by striking clause (iii). security benefits. ed by striking ‘‘2106,’’ and all that follows (2) Section 6103(l)(12) of the Internal Reve- through the semicolon and inserting ‘‘2106;’’. PART II—TREATMENT OF LONG-TERM CARE nue Code of 1986 is amended by striking sub- INSURANCE AND SERVICES (b) EFFECTIVE DATE; SAVINGS PROVISION.— paragraph (F). (1) EFFECTIVE DATE.—Subsection (a) shall Sec. 6211. Treatment of long-term care in- (b) APPLICATION TO DISABLED INDIVIDUALS take effect on January 1, 1996. surance. IN LARGE GROUP HEALTH PLANS.— (2) SAVINGS PROVISION.—The amendment Sec. 6212. Qualified long-term care services (1) IN GENERAL.—Section 1862(b)(1)(B) of the made by subsection (a) shall not affect any treated as medical care. Social Security Act (42 U.S.C. 1395y(b)(1)(B)) election made before such subsection takes is amended— Sec. 6213. Certain exchanges of life insur- effect. (A) in clause (i), by striking ‘‘clause (iv)’’ ance contracts for long-term TITLE V—MEDICARE SAVINGS and inserting ‘‘clause (iii)’’, care insurance contracts not EXTENSIONS (B) by striking clause (iii), and taxable. SEC. 5001. SHORT TITLE. (C) by redesignating clause (iv) as clause Sec. 6214. Exclusion from gross income for This title may be cited as the ‘‘Medicare (iii). amounts withdrawn from cer- tain retirement plans for long- Presidential Budget Savings Extension Act (2) CONFORMING AMENDMENTS.—Paragraphs of 1995’’. (1) through (3) of section 1837(i) of such Act term care insurance. Subtitle A—Provisions Relating to Part A of (42 U.S.C. 1395p(i)) and the second sentence of PART III—TREATMENT OF ACCELERATED the Medicare Program section 1839(b) of such Act (42 U.S.C. 1395r(b)) DEATH BENEFITS SEC. 5101. MAINTAINING SAVINGS RESULTING are each amended by striking Sec. 6221. Treatment of accelerated death FROM TEMPORARY FREEZE ON PAY- ‘‘1862(b)(1)(B)(iv)’’ each place it appears and benefits by recipient. MENT INCREASES FOR SKILLED inserting ‘‘1862(b)(1)(B)(iii)’’. Sec. 6222. Tax treatment of companies issu- NURSING FACILITY SERVICES. (c) PERIOD OF APPLICATION TO INDIVIDUALS ing qualified accelerated death (a) BASING UPDATES TO PER DIEM COST LIM- WITH END STAGE RENAL DISEASE.—Section benefit riders. ITS ON LIMITS FOR FISCAL YEAR 1993.— 1862(b)(1)(C) of the Social Security Act (42 PART IV—INCLUSION IN GROSS INCOME OF (1) IN GENERAL.—The last sentence of sec- U.S.C. 1395y(b)(1)(C)) is amended— tion 1888(a) of the Social Security Act (42 (1) in the first sentence, by striking ‘‘12- EXCESS LONG-TERM CARE BENEFITS U.S.C. 1395yy(a)) is amended by adding at the month’’ each place it appears and inserting Sec. 6231. Inclusion in income of excess long- end the following: ‘‘(except that such up- ‘‘18-month’’, and term care benefits. dates may not take into account any (2) by striking the second sentence. Sec. 6232. Reporting requirements. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4271 Subtitle C—Job Creation and Wage regard to sections 911, 931, and 933) over ‘‘(B) the sum of the unmarried tax Enhancement $200,000, bears to amounts for each spouse. PART I—CAPITAL GAINS REFORM ‘‘(2) an amount equal to 100 times the dol- ‘‘(2) UNMARRIED TAX AMOUNT.—For pur- lar amount in effect under subsection (a) for poses of paragraph (1), the unmarried tax SUBPART A—CAPITAL GAINS REDUCTION FOR the taxable year. TAXPAYERS OTHER THAN CORPORATIONS amount, with respect to an individual, is the ‘‘(c) QUALIFYING CHILD.—For purposes of amount of tax which would be imposed by Sec. 6301. Capital gains deduction. this section— Sec. 6302. Indexing of certain assets acquired section 1(c) if such individual’s taxable in- ‘‘(1) IN GENERAL.—The term ‘qualifying after December 31, 1994, for pur- come were equal to the excess (if any) of— child’ means any individual if— poses of determining gain. ‘‘(A) such individual’s qualified earned in- ‘‘(A) the taxpayer is allowed a deduction come for the taxable year, over SUBPART B—CAPITAL GAINS REDUCTION FOR under section 151 with respect to such indi- ‘‘(B) the sum of— CORPORATIONS vidual for such taxable year, ‘‘(i) an amount equal to the basic standard Sec. 6311. Reduction of alternative capital ‘‘(B) such individual has not attained the deduction under section 63(c)(2)(C) for the gain tax for corporations. age of 18 as of the close of the calendar year taxable year, plus SUBPART C—CAPITAL LOSS DEDUCTION AL- in which the taxable year of the taxpayer be- ‘‘(ii) the exemption amount (as defined in LOWED WITH RESPECT TO SALE OR EXCHANGE gins, and section 151(d)) for such taxable year. OF PRINCIPAL RESIDENCE ‘‘(C) such individual bears a relationship to ‘‘(3) JOINT TAX AMOUNT.—For purposes of Sec. 6316. Capital loss deduction allowed the taxpayer described in section 32(c)(3)(B) paragraph (1), the joint tax amount is the with respect to sale or ex- (determined without regard to clause (ii) amount of tax which would be imposed by change of principal residence. thereof). section 1(a) if the taxpayer’s taxable income PART II—COST RECOVERY PROVISIONS ‘‘(2) EXCEPTION FOR CERTAIN NONCITIZENS.— were equal to the excess (if any) of— Sec. 6321. Depreciation adjustment for cer- The term ‘qualifying child’ shall not include ‘‘(A) the taxpayer’s qualified earned in- tain property placed in service any individual who would not be a dependent come for the taxable year, over after December 31, 1994. if the first sentence of section 152(b)(3) were ‘‘(B) the sum of— Sec. 6322. Treatment of abandonment of les- applied without regard to all that follows ‘‘(i) an amount equal to the basic standard sor improvements at termi- ‘resident of the United States’. deduction under section 63(c)(2)(A) for the nation of lease. ‘‘(d) INFLATION ADJUSTMENTS.— taxable year, plus ‘‘(1) IN GENERAL.—In the case of a taxable PART III—ALTERNATIVE MINIMUM TAX RELIEF ‘‘(ii) an amount equal to twice the exemp- year beginning in a calendar year after 1996, tion amount (as so defined) for such taxable Sec. 6331. Phaseout of application of alter- the $500 and $200,000 amounts contained in year. native minimum tax to cor- subsections (a) and (b) shall each be in- ‘‘(d) QUALIFIED EARNED INCOME.—For pur- porations. creased by an amount equal to— poses of this section— PART IV—TAXPAYER DEBT BUY-DOWN ‘‘(A) such dollar amount, multiplied by ‘‘(1) IN GENERAL.—The term ‘qualified Sec. 6341. Designation of amounts for reduc- ‘‘(B) the cost-of-living adjustment deter- earned income’ means an amount equal to tion of public debt. mined under section 1(f)(3) for the calendar the excess (if any) of— Sec. 6342. Public debt reduction trust fund. year in which the taxable year begins, deter- ‘‘(A) the earned income for the taxable Sec. 6343. Taxpayer-generated sequestration mined by substituting ‘calendar year 1995’ year, over of Federal spending to reduce for ‘calendar year 1992’ in subparagraph (B) ‘‘(B) an amount equal to the sum of the de- the public debt. thereof. ductions described in paragraphs (1), (2), (6), PART V—SMALL BUSINESS INCENTIVES ‘‘(2) ROUNDING.—If any amount as adjusted (7), and (12) of section 62(a) to the extent Sec. 6351. Cost-of-living adjustments relat- under paragraph (1) is not a multiple of $50, that such deductions are properly allocable ing to estate and gift tax provi- such amount shall be rounded to the nearest to or chargeable against earned income for sions. multiple of $50. such taxable year. Sec. 6352. Increase in expense treatment for ‘‘(e) CERTAIN OTHER RULES APPLY.—Rules The amount of qualified earned income shall small businesses. similar to the rules of subsections (d) and (e) be determined without regard to any com- Sec. 6353. Clarification of treatment of home of section 32 shall apply for purposes of this munity property laws. section.’’ office use for administrative ‘‘(2) EARNED INCOME.—For purposes of para- and management activities. (b) CONFORMING AMENDMENT.—The table of graph (1)— sections for subpart A of part IV of sub- Sec. 6354. Treatment of storage of product ‘‘(A) IN GENERAL.—The term ‘earned in- samples. chapter A of chapter 1 is amended by insert- come’ means income which is earned income ing after the item relating to section 22 the within the meaning of section 401(c)(2)(C) or Subtitle D—Family Reinforcement following new item: Sec. 6401. Credit for adoption expenses. 911(d)(2) (determined without regard to the Sec. 6402. Credit for taxpayers with certain ‘‘Sec. 23. Family tax credit.’’ phrase ‘not in excess of 30 percent of his share of the net profits of such trade or busi- persons requiring custodial care (c) EFFECTIVE DATE.—The amendments in their households. made by this section shall apply to taxable ness’ in subparagraph (B) thereof). years beginning after December 31, 1995. ‘‘(B) EXCEPTION.—Such term shall not in- Subtitle E—Social Security Earnings Test clude any amount— Sec. 6501. Adjustments in monthly exempt SEC. 6102. CREDIT TO REDUCE MARRIAGE PEN- ‘‘(i) not includible in gross income, amount for purposes of the so- ALTY. ‘‘(ii) received as a pension or annuity, cial security earnings test. (a) IN GENERAL.—Subpart A of part IV of ‘‘(iii) paid or distributed out of an individ- Subtitle F—Technical Corrections subchapter A of chapter 1 is amended by in- ual retirement plan (within the meaning of serting after section 23 the following new section 7701(a)(37)), Sec. 6601. Coordination with other subtitles. section: Sec. 6602. Amendments related to Revenue ‘‘(iv) received as deferred compensation, or Reconciliation Act of 1990. ‘‘SEC. 24. CREDIT TO REDUCE MARRIAGE PEN- ‘‘(v) received for services performed by an Sec. 6603. Amendments related to Revenue ALTY. individual in the employ of his spouse (with- Reconciliation Act of 1993. ‘‘(a) ALLOWANCE OF CREDIT.—In the case of in the meaning of section 3121(b)(3)(B)). Sec. 6604. Miscellaneous provisions. a joint return for the taxable year, there ‘‘(e) AMOUNT OF CREDIT TO BE DETERMINED shall be allowed as a credit against the tax UNDER TABLES.— Subtitle A—American Dream Restoration imposed by this chapter for such taxable ‘‘(1) IN GENERAL.—The amount of the credit SEC. 6101. FAMILY TAX CREDIT. year an amount equal to the marriage pen- allowed by this section shall be determined (a) IN GENERAL.—Subpart A of part IV of alty reduction credit. under tables prescribed by the Secretary. subchapter A of chapter 1 is amended by in- ‘‘(b) LIMITATIONS.— ‘‘(2) REQUIREMENTS FOR TABLES.—The ta- serting after section 22 the following new ‘‘(1) DOLLAR LIMITATION.—The amount of bles prescribed under paragraph (1) shall re- section: credit allowed by subsection (a) for the tax- flect the provisions of subsection (c) and ‘‘SEC. 23. FAMILY TAX CREDIT. able year shall not exceed $145. shall round to the nearest $25 any amount of ‘‘(a) ALLOWANCE OF CREDIT.—There shall be ‘‘(2) CREDIT DISALLOWED FOR INDIVIDUALS credit which is less than the maximum cred- allowed as a credit against the tax imposed CLAIMING SECTION 911, ETC.—No credit shall be it under subsection (b)(1).’’ by this chapter for the taxable year an allowed under this section for any taxable (b) CLERICAL AMENDMENT.—The table of amount equal to $500 multiplied by the num- year if either spouse claims the benefits of sections for subpart A of part IV of sub- ber of qualifying children of the taxpayer. section 911, 931, or 933 for such taxable year. chapter A of chapter 1 is amended by insert- ‘‘(b) LIMITATION.—The amount of credit ‘‘(c) MARRIAGE PENALTY REDUCTION CRED- ing after the item relating to section 23 the which would (but for this subsection) be al- IT.—For purposes of this section— following new item: lowed by subsection (a) shall be reduced (but ‘‘(1) IN GENERAL.—The marriage penalty re- not below zero) by an amount which bears duction credit is an amount equal to the ex- ‘‘Sec. 24. Credit to reduce marriage penalty.’’ the same ratio to such amount of credit as— cess (if any) of— (c) EFFECTIVE DATE.—The amendments ‘‘(1) the excess (if any) of the taxpayer’s ‘‘(A) the joint tax amount of the taxpayer, made by this section shall apply to taxable adjusted gross income (determined without over years beginning after December 31, 1995. H 4272 CONGRESSIONAL RECORD — HOUSE April 5, 1995

SEC. 6103. ESTABLISHMENT OF AMERICAN ‘‘(3) CONTRIBUTIONS PERMITTED AFTER AGE year in which the payment or distribution is DREAM SAVINGS ACCOUNTS. 701⁄2.—Contributions to an ADS account may made. (a) IN GENERAL.—Subpart A of part I of be made even after the individual for whom ‘‘(e) QUALIFIED SPECIAL PURPOSE DISTRIBU- subchapter D of chapter 1 (relating to pen- the account is maintained has attained age TION.— sion, profit-sharing, stock bonus plans, etc.) 701⁄2. ‘‘(1) IN GENERAL.—For purposes of this sec- is amended by inserting after section 408 the ‘‘(4) MANDATORY DISTRIBUTION RULES NOT TO tion, the term ‘qualified special purpose dis- following new section: APPLY, ETC.— tribution’ means any payments or distribu- ‘‘SEC. 408A. AMERICAN DREAM SAVINGS AC- ‘‘(A) IN GENERAL.—Except as provided in tions from an ADS account to the individual COUNTS. subparagraph (B), subsections (a)(6) and for whose benefit such account is estab- ‘‘(a) GENERAL RULE.—Except as provided in (b)(3) of section 408 (relating to required dis- lished— this section, an American Dream Savings tributions) and section 4974 (relating to ex- ‘‘(A) if such payments or distributions are Account shall be treated for purposes of this cise tax on certain accumulations in quali- qualified first-time homebuyer distributions, title in the same manner as an individual re- fied retirement plans) shall not apply to any or tirement plan. ADS account. ‘‘(B) to the extent such payments or dis- ‘‘(b) AMERICAN DREAM SAVINGS ACCOUNT.— ‘‘(B) POST-DEATH DISTRIBUTIONS.—Rules tributions do not exceed— For purposes of this title, the term ‘Amer- similar to the rules of section 401(a)(9) (other ‘‘(i) the qualified higher education ex- ican Dream Savings Account’ or ‘ADS ac- than subparagraph (A) thereof) shall apply penses of the taxpayer for the taxable year count’ means an individual retirement plan for purposes of this section. in which received, and which is designated at the time of the estab- ‘‘(5) LIMITATIONS ON ROLLOVER CONTRIBU- ‘‘(ii) the qualified medical expenses of the lishment of the plan as an American Dream TIONS.—No rollover contribution may be taxpayer for the taxable year in which re- Savings Account. Such designation shall be made to an ADS account unless— ceived. made in such manner as the Secretary may ‘‘(A) such contribution is from another ‘‘(2) QUALIFIED FIRST-TIME HOMEBUYER DIS- prescribe. ADS account, or TRIBUTIONS.— ‘‘(c) CONTRIBUTION RULES.— ‘‘(B) such contribution is from an individ- ‘‘(A) IN GENERAL.—For purposes of this sub- ‘‘(1) NO DEDUCTION ALLOWED.—No deduction ual retirement plan (other than an ADS ac- section, the term ‘qualified first-time home- shall be allowed under section 219 for a con- count) and is made before January 1, 1998. buyer distribution’ means any payment or tribution to an ADS account. ‘‘(d) DISTRIBUTION RULES.—For purposes of distribution received by an individual to the ‘‘(2) CONTRIBUTION LIMIT.— this title— extent such payment or distribution is used ‘‘(A) IN GENERAL.—The aggregate amount ‘‘(1) GENERAL RULES.— of contributions (other than rollover con- ‘‘(A) EXCLUSION FROM GROSS INCOME.—No by the individual before the close of the 60th tributions) for any taxable year to all ADS portion of a qualified distribution from an day after the day on which such payment or accounts maintained for the benefit of an in- ADS account shall be includible in gross in- distribution is received to pay qualified ac- dividual shall not exceed the lesser of— come. quisition costs with respect to a principal ‘‘(i) $2,000, or ‘‘(B) EXCEPTION FROM PENALTY TAX.—Sec- residence for such individual as a first-time ‘‘(ii) an amount equal to the compensation tion 72(t) shall not apply to— homebuyer. includible in the individual’s gross income ‘‘(i) any qualified distribution from an ADS ‘‘(B) QUALIFIED ACQUISITION COSTS.—For for such taxable year. account, and purposes of this paragraph, the term ‘quali- ‘‘(B) $4,000 LIMITATION FOR CERTAIN ADDI- ‘‘(ii) any qualified special purpose distribu- fied acquisition costs’ means the costs of ac- TIONAL MARRIED INDIVIDUALS.— tion (whether or not a qualified distribution) quiring, constructing, or reconstructing a ‘‘(i) IN GENERAL.—In the case of an individ- from an ADS account. residence. Such term includes any usual or ual to whom this subparagraph applies for ‘‘(2) QUALIFIED DISTRIBUTION.—For purposes reasonable settlement, financing, or other the taxable year, the limitation of subpara- of this subsection— closing costs. graph (A)(ii) shall be equal to the sum of— ‘‘(A) IN GENERAL.—The term ‘qualified dis- ‘‘(C) FIRST-TIME HOMEBUYER; OTHER DEFINI- ‘‘(I) the compensation includible in such tribution’ means any payment or distribu- TIONS.—For purposes of this paragraph— individual’s gross income for the taxable tion— ‘‘(i) FIRST-TIME HOMEBUYER.—The term year, plus ‘‘(i) made on or after the date on which the ‘first-time homebuyer’ means any individual ‘‘(II) the compensation includible in the individual attains age 591⁄2, if such individual (and, if married, such indi- gross income of such individual’s spouse for ‘‘(ii) made to a beneficiary (or to the estate vidual’s spouse) had no present ownership in- the taxable year reduced by the amount of of the individual) on or after the death of the terest in a principal residence during the 3- the limitation under subparagraph (A) appli- individual, year period ending on the date of acquisition cable to such spouse for such taxable year. ‘‘(iii) attributable to the individual’s being of the principal residence to which this para- ‘‘(ii) INDIVIDUALS TO WHOM CLAUSE (i) AP- disabled (within the meaning of section graph applies. PLIES.—Clause (i) shall apply to any individ- 72(m)(7)), or ‘‘(ii) PRINCIPAL RESIDENCE.—The term ual if— ‘‘(iv) which is a qualified special purpose ‘principal residence’ has the same meaning ‘‘(I) such individual files a joint return for distribution. as when used in section 1034. the taxable year, and ‘‘(B) DISTRIBUTIONS WITHIN 5 YEARS.—No ‘‘(iii) DATE OF ACQUISITION.—The term ‘date ‘‘(II) the amount of compensation (if any) payment or distribution shall be treated as a of acquisition’ means the date— includible in such individual’s gross income qualified distribution if— ‘‘(I) on which a binding contract to acquire for the taxable year is less than the com- ‘‘(i) it is made within the 5-taxable year pe- the principal residence to which subpara- pensation includible in the gross income of riod beginning with the 1st taxable year for graph (A) applies is entered into, or such individual’s spouse for the taxable year. which the individual made a contribution to ‘‘(II) on which a binding contract to con- ‘‘(C) ADJUSTMENT FOR INFLATION.— an ADS account (or such individual’s spouse struct or reconstruct such a principal resi- ‘‘(i) IN GENERAL.—In the case of a taxable made a contribution to an ADS account) es- dence is entered into. year beginning in a calendar year after 1996, tablished for such individual, or ‘‘(D) SPECIAL RULE WHERE DELAY IN ACQUISI- the $2,000 amount contained in subparagraph ‘‘(ii) in the case of a payment or distribu- TION.—If any payment or distribution out of (A) shall be increased by an amount equal tion properly allocable to a rollover con- an ADS account fails to meet the require- to— tribution (or income allocable thereto), it is ments of subparagraph (A) solely by reason ‘‘(I) such dollar amount, multiplied by made within 5 years after the date on which of a delay or cancellation of the purchase, ‘‘(II) the cost-of-living adjustment under such rollover contribution was made, as de- construction, or reconstruction of the resi- section 1(f)(3) for the calendar year in which termined under regulations prescribed by the dence, the amount of the payment or dis- the taxable year begins, determined by sub- Secretary. tribution may be contributed to an ADS ac- stituting ‘calendar year 1995’ for ‘calendar Clause (ii) shall not apply to a rollover con- count as provided in subsection (d)(3)(A)(i) of year 1992’ in subparagraph (B) thereof. tribution from an ADS account. section 408 (determined by substituting ‘‘(ii) ROUNDING.—If any amount as adjusted ‘‘(3) INCOME INCLUSION FOR ROLLOVERS FROM ‘120th day’ for ‘60th day’ in such subsection), under clause (i) is not a multiple of $50, such NON-ADS ACCOUNTS.—In the case of any except that— amount shall be rounded to the nearest mul- amount paid or distributed out of an individ- ‘‘(i) subsection (d)(3)(B) of such section tiple of $50. ual retirement plan (other than an ADS ac- shall not be applied to such contribution, ‘‘(D) TAX ON EXCESS CONTRIBUTIONS.—Sec- count) which is paid into an ADS account and tion 4973 shall be applied separately with re- (established for the benefit of the payee or ‘‘(ii) such amount shall not be taken into spect to individual retirement plans which distributee, as the case may be) before the account in determining whether subsection are ADS accounts and individual retirement close of the 60th day after the day on which (d)(3)(A)(i) of such section applies to any plans which are not ADS accounts; except the payment or distribution is received— other amount. that, for purposes of applying such section ‘‘(A) sections 72(t) and 408(d)(3) shall not ‘‘(3) QUALIFIED HIGHER EDUCATION EX- with respect to individual retirement plans apply, and PENSES.—For purposes of this subsection— which are ADS accounts, excess contribu- ‘‘(B) any amount required to be included in ‘‘(A) IN GENERAL.—The term ‘qualified tions shall be considered to be any amounts gross income by reason of this paragraph higher education expenses’ means tuition, in excess of the limitation under subsection shall be so included ratably over the 4-tax- fees, books, supplies, and equipment required (c)(2)(A). able year period beginning with the taxable for the enrollment or attendance of— April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4273 ‘‘(i) the taxpayer, ‘‘(A) such individual files a joint return for PART II—TREATMENT OF LONG-TERM ‘‘(ii) the taxpayer’s spouse, or the taxable year, and CARE INSURANCE AND SERVICES ‘‘(iii) the taxpayer’s child (as defined in ‘‘(B) the amount of compensation (if any) SEC. 6211. TREATMENT OF LONG-TERM CARE IN- section 151(c)(3)) or grandchild, includible in such individual’s gross income SURANCE. for the taxable year is less than the com- at an eligible educational institution (as de- (a) GENERAL RULE.—Chapter 79 (relating to pensation includible in the gross income of fined in section 135(c)(3)). definitions) is amended by inserting after such individual’s spouse for the taxable ‘‘(B) COORDINATION WITH SAVINGS BOND PRO- section 7702A the following new section: VISIONS.—The amount of qualified higher year.’’ education expenses for any taxable year (b) TECHNICAL AMENDMENT.—Paragraph (2) ‘‘SEC. 7702B. TREATMENT OF LONG-TERM CARE INSURANCE. shall be reduced by any amount excludable of section 219(f) (relating to other definitions ‘‘(a) IN GENERAL.—For purposes of this from gross income under section 135. and special rules) is amended by striking title— ‘‘(4) QUALIFIED MEDICAL EXPENSES.— ‘‘subsections (b) and (c)’’ and inserting ‘‘sub- ‘‘(1) a long-term care insurance contract ‘‘(A) IN GENERAL.—For purposes of this sub- section (b)’’. shall be treated as an accident and health in- section, the term ‘qualified medical ex- (c) EFFECTIVE DATE.—The amendments surance contract, penses’ means any amounts paid during the made by this section shall apply to taxable ‘‘(2) amounts (other than policyholder divi- taxable year, not compensated for by insur- years beginning after December 31, 1995. dends, as defined in section 808, or premium ance or otherwise, for medical care (as de- Subtitle B—Senior Citizens’ Equity refunds) received under a long-term care in- fined in section 213(d)) of the taxpayer, his PART I—REPEAL OF INCREASE IN TAX ON surance contract shall be treated as amounts spouse, or a dependent (as defined in section SOCIAL SECURITY BENEFITS received for personal injuries and sickness 152). SEC. 6201. REPEAL OF INCREASE IN TAX ON SO- and shall be treated as reimbursement for ‘‘(B) LONG-TERM CARE INSURANCE PREMIUMS CIAL SECURITY BENEFITS. expenses actually incurred for medical care TREATED AS MEDICAL EXPENSES.—For pur- (a) IN GENERAL.—Subsection (a) of section (as defined in section 213(d)), poses of subparagraph (A), section 86 (relating to social security and tier 1 rail- ‘‘(3) any plan of an employer providing cov- 213(d)(1)(C) shall not apply but the term road retirement benefits) is amended by add- erage under a long-term care insurance con- ‘qualified medical expenses’ shall include ing at the end the following new paragraph: tract shall be treated as an accident and premiums for long-term care insurance (as ‘‘(3) PHASEOUT OF ADDITIONAL AMOUNT.—In health plan with respect to such coverage, defined in section 7702B(b)) for coverage of the case of any taxable year beginning in a ‘‘(4) except as provided in subsection (d)(3), the taxpayer or his spouse. calendar year after 1995 and before 2000, para- amounts paid for a long-term care insurance ‘‘(f) OTHER DEFINITIONS.—For purposes of graph (2) shall be applied by substituting the contract providing the benefits described in this section— percentage determined under the following subsection (b)(2)(A) shall be treated as pay- ‘‘(1) ROLLOVER CONTRIBUTIONS.—The term table for ‘85 percent’ each place it appears: ments made for insurance for purposes of ‘rollover contributions’ means contributions section 213(d)(1)(D), and described in sections 402(c), 403(a)(4), ‘‘In the case of a taxable ‘‘(5) a long-term care insurance contract 403(b)(8), or 408(d)(3). year shall be treated as a guaranteed renewable ‘‘(2) COMPENSATION.—The term ‘compensa- beginning in calendar contract subject to the rules of section tion’ has the meaning given such term by year: The percentage is: 816(e). section 219(f).’’ 1996 ...... 75 percent 1997 ...... 65 percent ‘‘(b) LONG-TERM CARE INSURANCE CON- (b) TERMINATION OF NONDEDUCTIBLE IRA 1998 ...... 60 percent TRACT.—For purposes of this title— CONTRIBUTIONS.— 1999 ...... 55 percent.’’ ‘‘(1) IN GENERAL.—The term ‘long-term care (1) Section 408(o) is amended by adding at (b) TERMINATION OF ADDITIONAL AMOUNT.— insurance contract’ means any insurance the end the following new paragraph: Paragraph (2) of section 86(a) is amended by contract if— ‘‘(5) TERMINATION.—This subsection shall adding at the end the following new flush ‘‘(A) the only insurance protection pro- not apply to any designated nondeductible sentence: vided under such contract is coverage of contribution for any taxable year beginning ‘‘This paragraph shall not apply to any tax- qualified long-term care services, after December 31, 1995.’’ able year beginning after December 31, 1999.’’ ‘‘(B) such contract does not pay or reim- (2) Section 219(f) of is amended by striking (c) CONFORMING AMENDMENTS.— burse expenses incurred for services or items paragraph (7). (1) Paragraph (3) of section 871(a) is amend- to the extent that such expenses are reim- (c) EXCESS DISTRIBUTIONS TAX NOT TO ed— bursable under title XVIII of the Social Se- APPLY.—Subparagraph (B) of section (A) by striking ‘‘85 percent’’ in subpara- curity Act or would be so reimbursable but 4980A(e)(1) is amended by inserting ‘‘other graph (A) and inserting ‘‘50 percent’’, and for the application of a deductible or coin- than an ADS account (as defined in section (B) by inserting before the last sentence surance amount, 408A(b))’’ after ‘‘retirement plan’’. the following new flush sentence: ‘‘(C) such contract is guaranteed renew- (d) CLERICAL AMENDMENT.—The table of ‘‘In the case of any taxable year beginning in able, sections for subpart A of part I of subchapter a calendar year after 1995 and before 2000, ‘‘(D) such contract does not provide for a D of chapter 1 is amended by inserting after subparagraph (A) shall be applied by sub- cash surrender value or other money that the item relating to section 408 the following stituting the percentage determined for such can be— new item: calendar year under section 86(a)(3) for ‘50 ‘‘(i) paid, assigned, or pledged as collateral ‘‘Sec. 408A. American Dream Savings Ac- percent’.’’ for a loan, or counts.’’ (2)(A) Subparagraph (A) of section 121(e)(1) ‘‘(ii) borrowed, (e) EFFECTIVE DATE.—The amendments of the Social Security Amendments of 1983 other than as provided in subparagraph (E) made by this section shall apply to taxable (Public Law 98–21) is amended— or paragraph (2)(C), and years beginning after December 31, 1995. (i) by striking ‘‘(A) There’’ and inserting ‘‘(E) all refunds of premiums, and all pol- SEC. 6104. SPOUSAL IRA COMPUTED ON BASIS OF ‘‘There’’; icyholder dividends or similar amounts, COMPENSATION OF BOTH SPOUSES. (ii) by striking ‘‘(i)’’ immediately following under such contract are to be applied as a re- (a) IN GENERAL.—Subsection (c) of section ‘‘amounts equivalent to’’; and duction in future premiums or to increase fu- 219 (relating to special rules for certain mar- (iii) by striking ‘‘, less (ii)’’ and all that ture benefits. ried individuals) is amended to read as fol- follows and inserting a period. ‘‘(2) SPECIAL RULES.— lows: (B) Paragraph (1) of section 121(e) of such ‘‘(A) PER DIEM, ETC. PAYMENTS PER- ‘‘(c) SPECIAL RULES FOR CERTAIN MARRIED Act is amended by striking subparagraph MITTED.—A contract shall not fail to be de- INDIVIDUALS.— (B). scribed in subparagraph (A) or (B) of para- ‘‘(1) IN GENERAL.—In the case of an individ- (C) Paragraph (3) of section 121(e) of such graph (1) by reason of payments being made ual to whom this paragraph applies for the Act is amended by striking subparagraph (B) on a per diem or other periodic basis without taxable year, the limitation of subsection and by redesignating subparagraph (C) as regard to the expenses incurred during the (b)(1) shall be equal to the lesser of— subparagraph (B). period to which the payments relate. ‘‘(A) $2,000, or (D) Paragraph (2) of section 121(e) of such ‘‘(B) SPECIAL RULES RELATING TO MEDI- ‘‘(B) the sum of— Act is amended in the first sentence by CARE.— ‘‘(i) the compensation includible in such striking ‘‘paragraph (1)(A)’’ and inserting ‘‘(i) Paragraph (1)(B) shall not apply to ex- individual’s gross income for the taxable ‘‘paragraph (1)’’. penses which are reimbursable under title year, plus (d) EFFECTIVE DATE.— XVIII of the Social Security Act only as a ‘‘(ii) the compensation includible in the (1) IN GENERAL.—Except as provided in secondary payor. gross income of such individual’s spouse for paragraph (2), the amendments made by this ‘‘(ii) No provision of law shall be construed the taxable year reduced by the amount al- section shall apply to taxable years begin- or applied so as to prohibit the offering of a lowable as a deduction under subsection (a) ning after December 31, 1995. long-term care insurance contract on the to such spouse for such taxable year. (2) SUBSECTION (c)(2).—The amendments basis that the contract coordinates its bene- ‘‘(2) INDIVIDUALS TO WHOM PARAGRAPH (1) made by subsection (c)(2) shall apply to tax fits with those provided under such title. APPLIES.—Paragraph (1) shall apply to any liabilities for taxable years beginning after ‘‘(C) REFUNDS OF PREMIUMS.—Paragraph individual if— December 31, 1995. (1)(E) shall not apply to any refund on the H 4274 CONGRESSIONAL RECORD — HOUSE April 5, 1995

death of the insured, or on a complete sur- ‘‘(A) by the sum of any charges (but not ‘‘(10) CERTAIN PAYMENTS TO RELATIVES render or cancellation of the contract, which premium payments) against the life insur- TREATED AS NOT PAID FOR MEDICAL CARE.—An cannot exceed the aggregate premiums paid ance contract’s cash surrender value (within amount paid for a qualified long-term care under the contract. Any refund on a com- the meaning of section 7702(f)(2)(A)) for such service (as defined in section 7702B(c)) pro- plete surrender or cancellation of the con- coverage made to that date under the con- vided to an individual shall be treated as not tract shall be includible in gross income to tract, less paid for medical care if such service is pro- the extent that any deduction or exclusion ‘‘(B) any such charges the imposition of vided— was allowable with respect to the premiums. which reduces the premiums paid for the ‘‘(A) by a relative (directly or through a ‘‘(c) QUALIFIED LONG-TERM CARE SERV- contract (within the meaning of section partnership, corporation, or other entity) ICES.—For purposes of this section— 7702(f)(1)). unless the relative is a licensed professional ‘‘(1) IN GENERAL.—The term ‘qualified long- ‘‘(3) APPLICATION OF SECTION 213.—No deduc- with respect to such services, or term care services’ means necessary diag- tion shall be allowed under section 213(a) for ‘‘(B) by a corporation or partnership which nostic, preventive, therapeutic, curing, charges against the life insurance contract’s is related (within the meaning of section treating, mitigating, and rehabilitative serv- cash surrender value described in paragraph 267(b) or 707(b)) to the individual. ices, and maintenance or personal care serv- (2), unless such charges are includible in in- For purposes of this paragraph, the term ices, which— come as a result of the application of section ‘relative’ means an individual bearing a rela- ‘‘(A) are required by a chronically ill indi- 72(e)(10) and the rider is a long-term care in- tionship to the individual which is described vidual, and surance contract under subsection (b). in any of paragraphs (1) through (8) of sec- ‘‘(B) are provided pursuant to a plan of ‘‘(4) PORTION DEFINED.—For purposes of tion 152(a). This paragraph shall not apply care prescribed by a licensed health care this subsection, the term ‘portion’ means for purposes of section 105(b) with respect to practitioner. only the terms and benefits under a life in- reimbursements through insurance.’’ ‘‘(2) CHRONICALLY ILL INDIVIDUAL.— surance contract that are in addition to the (f) CLERICAL AMENDMENT.—The table of ‘‘(A) IN GENERAL.—The term ‘chronically terms and benefits under the contract with- sections for chapter 79 is amended by insert- ill individual’ means any individual who has out regard to the coverage under a long-term ing after the item relating to section 7702A been certified by a licensed health care prac- care insurance contract.’’ the following new item: titioner as— (b) RESERVE METHOD.—Clause (iii) of sec- ‘‘Sec. 7702B. Treatment of long-term care in- ‘‘(i) being unable to perform (without sub- tion 807(d)(3)(A) is amended by inserting surance.’’. stantial assistance from another individual) ‘‘(other than a long-term care insurance con- (g) EFFECTIVE DATE.— at least 2 activities of daily living for a pe- tract, as defined in section 7702B(b))’’ after (1) IN GENERAL.—The amendments made by riod of at least 90 days due to a loss of func- ‘‘insurance contract’’. this section shall apply to contracts issued tional capacity or to cognitive impairment, (c) LONG-TERM CARE INSURANCE NOT PER- after December 31, 1995. or MITTED UNDER CAFETERIA PLANS OR FLEXIBLE (2) CONTINUATION OF EXISTING POLICIES.—In ‘‘(ii) having a level of disability similar (as SPENDING ARRANGEMENTS.— the case of any contract issued before Janu- determined by the Secretary in consultation (1) CAFETERIA PLANS.—Section 125(f) is ary 1, 1996, which met the long-term care in- with the Secretary of Health and Human amended by adding at the end the following surance requirements of the State in which Services) to the level of disability described new sentence: ‘‘Such term shall not include the contract was sitused at the time the con- in clause (i). any long-term care insurance contract (as tract was issued— Such term shall not include any individual defined in section 7702B(b)).’’ (A) such contract shall be treated for pur- otherwise meeting the requirements of the (2) FLEXIBLE SPENDING ARRANGEMENTS.— poses of the Internal Revenue Code of 1986 as preceding sentence unless within the preced- The text of section 106 (relating to contribu- a long-term care insurance contract (as de- ing 12-month period a licensed health care tions by employer to accident and health fined in section 7702B(b) of such Code), and practitioner has certified that such individ- plans) is amended to read as follows: (B) services provided under, or reimbursed ual meets such requirements. ‘‘(a) GENERAL RULE.—Except as provided in by, such contract shall be treated for such ‘‘(B) ACTIVITIES OF DAILY LIVING.—For pur- subsection (b), gross income of an employee purposes as qualified long-term care services poses of subparagraph (A), each of the follow- does not include employer-provided coverage (as defined in section 7702B(c) of such Code). ing is an activity of daily living: under an accident or health plan. (3) EXCHANGES OF EXISTING POLICIES.—If, ‘‘(i) Eating. ‘‘(b) INCLUSION OF LONG-TERM CARE BENE- after the date of enactment of this Act and ‘‘(ii) Toileting. FITS PROVIDED THROUGH FLEXIBLE SPENDING before January 1, 1996, a contract providing ‘‘(iii) Transferring. ARRANGEMENTS.— for long-term care insurance coverage is ex- ‘‘(iv) Bathing. ‘‘(1) IN GENERAL.—Effective on and after changed solely for a long-term care insur- ‘‘(v) Dressing. January 1, 1996, gross income of an employee ance contract (as defined in section 7702B(b) ‘‘(vi) Continence. shall include employer-provided coverage for of such Code), no gain or loss shall be recog- Nothing in this section shall be construed to qualified long-term care services (as defined nized on the exchange. If, in addition to a require a contract to take into account all of in section 7702B(c)) to the extent that such long-term care insurance contract, money or the preceding activities of daily living. coverage is provided through a flexible other property is received in the exchange, spending or similar arrangement. then any gain shall be recognized to the ex- ‘‘(3) MAINTENANCE OR PERSONAL CARE SERV- ‘‘(2) FLEXIBLE SPENDING ARRANGEMENT.— tent of the sum of the money and the fair ICES.—The term ‘maintenance or personal care services’ means any care the primary For purposes of this subsection, a flexible market value of the other property received. purpose of which is the provision of needed spending arrangement is a benefit program For purposes of this paragraph, the cancella- assistance with any of the disabilities as a which provides employees with coverage tion of a contract providing for long-term result of which the individual is a chron- under which— care insurance coverage and reinvestment of ically ill individual (including the protection ‘‘(A) specified incurred expenses may be re- the cancellation proceeds in a long-term care from threats to health and safety due to se- imbursed (subject to reimbursement maxi- insurance contract within 60 days thereafter vere cognitive impairment). mums and other reasonable conditions), and shall be treated as an exchange. (4) ISSUANCE OF CERTAIN RIDERS PER- ‘‘(4) LICENSED HEALTH CARE PRACTITIONER.— ‘‘(B) the maximum amount of reimburse- The term ‘licensed health care practitioner’ ment which is reasonably available to a par- MITTED.—For purposes of applying sections means any physician (as defined in section ticipant for such coverage is less than 500 101(f), 7702, and 7702A of the Internal Revenue 1861(r)(1) of the Social Security Act) and any percent of the value of such coverage. Code of 1986 to any contract— registered professional nurse, licensed social In the case of an insured plan, the maximum (A) the issuance of a rider which is treated worker, or other individual who meets such amount reasonably available shall be deter- as a long-term care insurance contract under requirements as may be prescribed by the mined on the basis of the underlying cov- section 7702B, and Secretary. erage.’’ (B) the addition of any provision required to conform any other long-term care rider to ‘‘(d) TREATMENT OF COVERAGE PROVIDED AS (d) CONTINUATION COVERAGE EXCISE TAX be so treated, PART OF A LIFE INSURANCE CONTRACT.—Ex- NOT TO APPLY.—Subsection (f) of section cept as otherwise provided in regulations 4980B is amended by adding at the end the shall not be treated as a modification or ma- prescribed by the Secretary, in the case of following new paragraph: terial change of such contract. any long-term care insurance coverage ‘‘(9) CONTINUATION OF LONG-TERM CARE COV- SEC. 6212. QUALIFIED LONG-TERM CARE SERV- (whether or not qualified) provided by a rider ERAGE NOT REQUIRED.—A group health plan ICES TREATED AS MEDICAL CARE. on a life insurance contract— shall not be treated as failing to meet the re- (a) GENERAL RULE.—Paragraph (1) of sec- ‘‘(1) IN GENERAL.—This section shall apply quirements of this subsection solely by rea- tion 213(d) (defining medical care) is amend- as if the portion of the contract providing son of failing to provide coverage under any ed by striking ‘‘or’’ at the end of subpara- such coverage is a separate contract. long-term care insurance contract (as de- graph (B), by redesignating subparagraph (C) ‘‘(2) APPLICATION OF 7702.—Section 7702(c)(2) fined in section 7702B(b)).’’ as subparagraph (D), and by inserting after (relating to the guideline premium limita- (e) AMOUNTS PAID TO RELATIVES TREATED subparagraph (B) the following new subpara- tion) shall be applied by increasing the AS NOT PAID FOR MEDICAL CARE.—Section graph: guideline premium limitation with respect 213(d) is amended by adding at the end the ‘‘(C) for qualified long-term care services to a life insurance contract, as of any date— following new paragraph: (as defined in section 7702B(c)), or’’. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4275

(b) TECHNICAL AMENDMENTS.— ance contracts) is amended by striking the (c) EFFECTIVE DATE.—The amendments (1) Subparagraph (D) of section 213(d)(1) (as period at the end of paragraph (3) and insert- made by this section shall apply to payments redesignated by subsection (a)) is amended ing ‘‘; or’’, and by adding at the end the fol- and distributions after December 31, 1995. by striking ‘‘subparagraphs (A) and (B)’’ and lowing new paragraph: inserting ‘‘subparagraphs (A), (B), and (C)’’. ‘‘(4) a contract of life insurance or an en- PART III—TREATMENT OF ACCELERATED (2)(A) Paragraph (1) of section 213(d) is dowment or annuity contract for a long-term DEATH BENEFITS amended by adding at the end the following care insurance contract (as defined in sec- new flush sentence: tion 7702B(b)).’’ SEC. 6221. TREATMENT OF ACCELERATED DEATH BENEFITS BY RECIPIENT. ‘‘In the case of a long-term care insurance (b) EFFECTIVE DATE.—The amendment contract (as defined in section 7702B(b)), only made by this section shall apply to taxable (a) IN GENERAL.—Section 101 (relating to eligible long-term care premiums (as defined years beginning after December 31, 1995. certain death benefits) is amended by adding in paragraph (11)) shall be taken into ac- SEC. 6214. EXCLUSION FROM GROSS INCOME FOR at the end the following new subsection: count under subparagraph (D).’’ AMOUNTS WITHDRAWN FROM CER- ‘‘(g) TREATMENT OF CERTAIN ACCELERATED (B) Subsection (d) of section 213 is amended TAIN RETIREMENT PLANS FOR DEATH BENEFITS.— by adding at the end the following new para- LONG-TERM CARE INSURANCE. ‘‘(1) IN GENERAL.—For purposes of this sec- graph: (a) IN GENERAL.—Part III of subchapter B tion, the following amounts shall be treated ‘‘(11) ELIGIBLE LONG-TERM CARE PRE- of chapter 1 (relating to items specifically as an amount paid by reason of the death of MIUMS.— excluded from gross income) is amended by an insured: ‘‘(A) IN GENERAL.—For purposes of this sec- redesignating section 137 as section 138 and ‘‘(A) Any amount received under a life in- by inserting after section 136 the following tion, the term ‘eligible long-term care pre- surance contract on the life of an insured new section: miums’ means the amount paid during a tax- who is a terminally ill individual. ‘‘SEC. 137. DISTRIBUTIONS FROM CERTAIN RE- able year for any long-term care insurance ‘‘(B) Any amount received under a life in- contract (as defined in section 7702B(b)) cov- TIREMENT PLANS FOR LONG-TERM surance contract on the life of an insured ering an individual, to the extent such CARE INSURANCE. who is a chronically ill individual (as defined amount does not exceed the limitation deter- ‘‘(a) GENERAL RULE.—The amount which mined under the following table: would (but for this section) be includible in in section 7702B(c)(2)) but only if such the gross income of an individual for the tax- amount is received under a rider or other ‘‘In the case of an in- able year by reason of eligible distributions provision of such contract which is treated dividual with an attained during the taxable year shall be reduced (but as a long-term care insurance contract under not below zero) by the aggregate premiums age before the The limitation section 7702B. close of the taxable paid by such individual during such taxable ‘‘(2) TREATMENT OF VIATICAL SETTLE- year of: is: year for any long-term care insurance con- MENTS.— 40 or less ...... $200 tract (as defined in section 7702B(b)) for cov- ‘‘(A) IN GENERAL.—In the case of a life in- More than 40 but erage of such individual or the spouse of such surance contract on the life of an insured de- individual. not more than 50 ... 375 scribed in paragraph (1), if— More than 50 but ‘‘(b) ELIGIBLE DISTRIBUTION.—For purposes ‘‘(i) any portion of such contract is sold to not more than 60 .... 750 of this section, the term ‘eligible distribu- More than 60 but tion’ means any distribution or payment to any viatical settlement provider, or not more than 70 ... 2,000 an individual from— ‘‘(ii) any portion of the death benefit is as- More than 70 ...... 2,500. ‘‘(1) an individual retirement plan of such signed to such a provider, ‘‘(B) INDEXING.— individual, the amount paid for such sale or assignment ‘‘(i) IN GENERAL.—In the case of any tax- ‘‘(2) amounts attributable to employer con- shall be treated as an amount paid under the able year beginning in a calendar year after tributions made pursuant to elective defer- life insurance contract by reason of the 1996, each dollar amount contained in sub- rals described in subparagraph (A) or (C) of death of such insured. paragraph (A) shall be increased by the medi- section 402(g)(3) or section 501(c)(18)(D)(iii), ‘‘(B) VIATICAL SETTLEMENT PROVIDER.—The cal care cost adjustment of such amount for or term ‘viatical settlement provider’ means such calendar year. If any increase deter- ‘‘(3) amounts deferred under section any person regularly engaged in the trade or mined under the preceding sentence is not a 457(a).’’ business of purchasing, or taking assign- multiple of $10, such increase shall be round- (b) CONFORMING AMENDMENTS.— ed to the nearest multiple of $10. (1) Section 401(k)(2)(B)(i) is amended by ments of, life insurance contracts on the ‘‘(ii) MEDICAL CARE COST ADJUSTMENT.—For striking ‘‘or’’ at the end of subclause (III), by lives of insureds described in paragraph (1) purposes of clause (i), the medical care cost striking ‘‘and’’ at the end of subclause (IV) if— adjustment for any calendar year is the per- and inserting ‘‘or’’, and by inserting after ‘‘(i) such person is licensed for such pur- centage (if any) by which— subclause (IV) the following new subclause: poses in the State in which the insured re- ‘‘(I) the medical care component of the ‘‘(V) the date distributions for premiums sides, or Consumer Price Index (as defined in section for a long-term care insurance contract (as ‘‘(ii) in the case of an insured who resides 1(f)(5)) for August of the preceding calendar defined in section 7702B(b)) for coverage of in a State not requiring the licensing of such year, exceeds such individual or the spouse of such individ- persons for such purposes, such person meets ‘‘(II) such component for August of 1995. ual are made, and’’. the requirements of sections 8 and 9 of the The Secretary shall, in consultation with the (2) Section 403(b)(11) is amended by strik- Viatical Settlements Model Act of the Na- Secretary of Health and Human Services, ing ‘‘or’’ at the end of subparagraph (A), by tional Association of Insurance Commis- prescribe an adjustment which the Secretary striking the period at the end of subpara- sioners. determines is more appropriate for purposes graph (B) and inserting ‘‘, or’’, and by insert- ‘‘(3) DEFINITIONS.—For purposes of this sub- of this paragraph than the adjustment de- ing after subparagraph (B) the following new section— subparagraph: scribed in the preceding sentence, and the ‘‘(A) TERMINALLY ILL INDIVIDUAL.—The adjustment so prescribed shall apply in lieu ‘‘(C) for the payment of premiums for a term ‘terminally ill individual’ means an in- of the adjustment described in the preceding long-term care insurance contract (as de- dividual who has been certified by a physi- sentence.’’ fined in section 7702B(b)) for coverage of the cian as having an illness or physical condi- (3) Paragraph (6) of section 213(d) is amend- employee or the spouse of the employee.’’ ed— (3) Subparagraph (A) of section 457(d)(1) is tion which can reasonably be expected to re- (A) by striking ‘‘subparagraphs (A) and amended by striking ‘‘or’’ at the end of sult in death in 24 months or less after the (B)’’ and inserting ‘‘subparagraphs (A), (B), clause (ii), by striking ‘‘and’’ at the end of date of the certification. and (C)’’, and clause (iii) and inserting ‘‘or’’, and by insert- ‘‘(B) PHYSICIAN.—The term ‘physician’ has (B) by striking ‘‘paragraph (1)(C)’’ in sub- ing after clause (iii) the following new the meaning given to such term by section paragraph (A) and inserting ‘‘paragraph clause: 1861(r)(1) of the Social Security Act (42 (1)(D)’’. ‘‘(iv) the date distributions for premiums U.S.C. 1395x(r)(1)). (4) Paragraph (7) of section 213(d) is amend- for a long-term care insurance contract (as ‘‘(4) EXCEPTION FOR BUSINESS-RELATED POLI- ed by striking ‘‘subparagraphs (A) and (B)’’ defined in section 7702B(b)) for coverage of CIES.—This subsection shall not apply in the and inserting ‘‘subparagraphs (A), (B), and such individual or the spouse of such individ- case of any amount paid to any taxpayer (C)’’. ual are made, and’’. other than the insured if such taxpayer has (c) EFFECTIVE DATE.—The amendments (4) The table of sections for part III of sub- an insurable interest with respect to the life made by this section shall apply to taxable chapter B of chapter 1 is amended by strik- of the insured by reason of the insured being years beginning after December 31, 1995. ing the last item and inserting the following a director, officer, or employee of the tax- SEC. 6213. CERTAIN EXCHANGES OF LIFE INSUR- new items: payer or by reason of the insured being fi- ANCE CONTRACTS FOR LONG-TERM CARE INSURANCE CONTRACTS NOT ‘‘Sec. 137. Distributions from certain retire- nancially interested in any trade or business TAXABLE. ment plans for long-term care carried on by the taxpayer. (a) IN GENERAL.—Subsection (a) of section insurance. 1035 (relating to certain exchanges of insur- ‘‘Sec. 138. Cross references to other Acts.’’ H 4276 CONGRESSIONAL RECORD — HOUSE April 5, 1995

‘‘(5) CROSS REFERENCE.— ‘‘(B) payments which are excludable from (1) Subparagraph (B) of section 6724(d)(1) is ‘‘For inclusion in gross income of excess gross income by reason of section 101(g). amended by redesignating clauses (ix) benefits, see section 91.’’ ‘‘(3) EXCLUSION AMOUNT.— through (xiv) as clauses (x) through (xv), re- (b) EFFECTIVE DATE.—The amendment ‘‘(A) IN GENERAL.—In the case of long-term spectively, and by inserting after clause made by subsection (a) shall apply to care benefits received by the taxpayer during (viii) the following new clause: amounts received after December 31, 1995. the taxable year by reason of the taxpayer ‘‘(ix) section 6050Q (relating to certain SEC. 6222. TAX TREATMENT OF COMPANIES ISSU- being a chronically ill individual, the term long-term care benefits),’’. ING QUALIFIED ACCELERATED ‘exclusion amount’ means the aggregate of (2) Paragraph (2) of section 6724(d) is DEATH BENEFIT RIDERS. $200 for each day during such year on which amended by redesignating subparagraphs (Q) (a) QUALIFIED ACCELERATED DEATH BENEFIT the individual is a chronically ill individual. through (T) as subparagraphs (R) through RIDERS TREATED AS LIFE INSURANCE.—Sec- In the case of individuals who are married to (U), respectively, and by inserting after sub- tion 818 (relating to other definitions and each other and who are both chronically ill paragraph (P) the following new subpara- special rules) is amended by adding at the individuals, the preceding sentence shall be graph: end the following new subsection: applied separately with respect to each ‘‘(Q) section 6050Q(b) (relating to certain ‘‘(g) QUALIFIED ACCELERATED DEATH BENE- spouse. long-term care benefits),’’. FIT RIDERS TREATED AS LIFE INSURANCE.— ‘‘(B) OTHER TAXPAYERS.—In the case of (c) CLERICAL AMENDMENT.—The table of For purposes of this part— long-term care benefits received during the sections for subpart B of part III of sub- ‘‘(1) IN GENERAL.—Any reference to a life taxable year by a taxpayer by reason of an- chapter A of chapter 61 is amended by adding insurance contract shall be treated as in- other individual being a chronically ill indi- at the end the following new item: cluding a reference to a qualified accelerated vidual, the term ‘exclusion amount’ means ‘‘Sec. 6050Q. Certain long-term care bene- death benefit rider on such contract. so much of such other individual’s exclusion fits.’’ ‘‘(2) QUALIFIED ACCELERATED DEATH BENEFIT amount (for such other individual’s taxable RIDERS.—For purposes of this subsection, the year which begins in the calendar year in (d) EFFECTIVE DATE.—The amendments term ‘qualified accelerated death benefit which the taxpayer’s taxable year begins) as made by this section shall apply to benefits rider’ means any rider on a life insurance is allocated by such other individual to the paid after December 31, 1995. contract if the only payments under the taxpayer. Such an allocation shall be made Subtitle C—Job Creation and Wage rider are payments meeting the require- at the time and in the manner prescribed by Enhancement ments of section 101(g). the Secretary; and once made, shall be irrev- PART I—CAPITAL GAINS REFORM ‘‘(3) EXCEPTION FOR LONG-TERM CARE RID- ocable. Subpart A—Capital Gains Reduction for ERS.—Paragraph (1) shall not apply to any ‘‘(d) CHRONICALLY ILL INDIVIDUAL.—For rider which is treated as a long-term care in- purposes of this section, the term ‘chron- Taxpayers Other Than Corporations surance contract under section 7702B.’’ ically ill individual’ has the meaning given SEC. 6301. CAPITAL GAINS DEDUCTION. (b) EFFECTIVE DATE.— to such term by section 7702B(c)(2). (a) IN GENERAL.—Part I of subchapter P of (1) IN GENERAL.—The amendment made by ‘‘(e) INFLATION ADJUSTMENT OF $200 BENE- chapter 1 (relating to treatment of capital this section shall take effect on January 1, FIT LIMIT.—In the case of a calendar year gains), as amended by subsection (d)(1), is 1996. after 1996, the $200 amount contained in sub- amended by inserting after section 1201 the (2) ISSUANCE OF RIDER NOT TREATED AS MA- section (c)(3)(A) shall be increased at the following new section: TERIAL CHANGE.—For purposes of applying same time and in the same manner as ‘‘SEC. 1202. CAPITAL GAINS DEDUCTION. sections 101(f), 7702, and 7702A of the Internal amounts are increased pursuant to section ‘‘(a) GENERAL RULE.—If for any taxable Revenue Code of 1986 to any contract— 213(d)(11).’’ year a taxpayer other than a corporation has (A) the issuance of a qualified accelerated (b) CLERICAL AMENDMENT.—The table of a net capital gain, 50 percent of such gain death benefit rider (as defined in section sections for such part II is amended by add- shall be a deduction from gross income. 818(g) of such Code (as added by this Act)), ing at the end the following new item: ‘‘(b) ESTATES AND TRUSTS.—In the case of and an estate or trust, the deduction shall be (B) the addition of any provision required ‘‘Sec. 91. Excess long-term care benefits.’’ computed by excluding the portion (if any) of to conform an accelerated death benefit (c) EFFECTIVE DATE.—The amendments the gains for the taxable year from sales or rider to the requirements of such section made by this section shall apply to taxable exchanges of capital assets which, under sec- 818(g), years beginning after December 31, 1995. tions 652 and 662 (relating to inclusions of shall not be treated as a modification or ma- SEC. 6232. REPORTING REQUIREMENTS. amounts in gross income of beneficiaries of terial change of such contract. (a) IN GENERAL.—Subpart B of part III of trusts), is includible by the income bene- PART IV—INCLUSION IN GROSS INCOME subchapter A of chapter 61 is amended by ficiaries as gain derived from the sale or ex- OF EXCESS LONG-TERM CARE BENEFITS adding at the end the following new section: change of capital assets. SEC. 6231. INCLUSION IN INCOME OF EXCESS ‘‘SEC. 6050Q. CERTAIN LONG-TERM CARE BENE- ‘‘(c) COORDINATION WITH TREATMENT OF LONG-TERM CARE BENEFITS. FITS. CAPITAL GAIN UNDER LIMITATION ON INVEST- (a) IN GENERAL.—Part II of subchapter B of ‘‘(a) REQUIREMENT OF REPORTING.—Any MENT INTEREST.—For purposes of this sec- chapter 1 (relating to items specifically in- person who pays long-term care benefits tion, the net capital gain for any taxable cluded in gross income) is amended by add- shall make a return, according to the forms year shall be reduced (but not below zero) by ing at the end the following new section: or regulations prescribed by the Secretary, the amount which the taxpayer takes into ‘‘SEC. 91. EXCESS LONG-TERM CARE BENEFITS. setting forth— account as investment income under section ‘‘(a) GENERAL RULE.—Notwithstanding any ‘‘(1) the aggregate amount of such benefits 163(d)(4)(B)(iii). other provision of this title, gross income paid by such person to any individual during ‘‘(d) SPECIAL RULE FOR COLLECTIBLES.— shall include the amount of excess long-term any calendar year, and ‘‘(1) IN GENERAL.—At the election of the care benefits received by the taxpayer during ‘‘(2) the name, address, and TIN of such in- taxpayer, the rate of tax imposed by section the taxable year. dividual. 1 on the excess of— ‘‘(b) EXCEPTION FOR TERMINALLY ILL INDI- ‘‘(b) STATEMENTS TO BE FURNISHED TO PER- ‘‘(A) the amount which would be the net VIDUALS.—Subsection (a) shall not apply to SONS WITH RESPECT TO WHOM INFORMATION IS capital gain for the taxable year without re- any long-term care benefit paid by reason of REQUIRED.—Every person required to make a gard to the application of section 1222(12) to an insured who is a terminally ill individual return under subsection (a) shall furnish to collectibles specified in such election, over (as defined in section 101(g)) as of the date each individual whose name is required to be ‘‘(B) the net capital gain for such year, the benefit is received. set forth in such return a written statement shall not exceed 28 percent. ‘‘(c) EXCESS LONG-TERM CARE BENEFITS.— showing— ‘‘(2) ELECTION.—Any election under this For purposes of this section— ‘‘(1) the name of the person making the subsection, and any specification therein, ‘‘(1) IN GENERAL.—The term ‘excess long- payments, and once made, shall be irrevocable. term care benefits’ means the excess (if any) ‘‘(2) the aggregate amount of long-term ‘‘(3) COORDINATION WITH INDEXING.—Any of— care benefits paid to the individual which collectible specified in such an election shall ‘‘(A) the value of the long-term care bene- are required to be shown on such return. be treated as not being an indexed asset for fits received by the taxpayer during the tax- The written statement required under the purposes of section 1022. able year, over preceding sentence shall be furnished to the ‘‘(e) TRANSITIONAL RULE.— ‘‘(B) the exclusion amount applicable to individual on or before January 31 of the ‘‘(1) IN GENERAL.—In the case of a taxable such benefits. year following the calendar year for which year which includes January 1, 1995— ‘‘(2) LONG-TERM CARE BENEFITS.—The term the return under subsection (a) was required ‘‘(A) the amount taken into account as the ‘long-term care benefits’ means— to be made. net capital gain under subsection (a) shall ‘‘(A) payments and other benefits under ‘‘(c) LONG-TERM CARE BENEFITS.—For pur- not exceed the net capital gain determined long-term care insurance contracts (as de- poses of this section, the term ‘long-term by only taking into account gains and losses fined in section 7702B(b)) to the extent ex- care benefit’ has the meaning given such properly taken into account for the portion cludable from gross income by reason of sec- term by section 91(c).’’ of the taxable year on or after January 1, tion 7702B(a)(2), and (b) PENALTIES.— 1995, and April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4277 ‘‘(B) if the net capital gain for such year stock; except that losses from the sale or ex- (i) by striking all that precedes clause (i) exceeds the amount taken into account change of such stock shall be taken into ac- and inserting the following: under subsection (a), the rate of tax imposed count as provided in the amendments made ‘‘(A) CORPORATIONS.—In the case of a cor- by section 1 on such excess shall not exceed by paragraph (13) of this subsection. poration—’’, and 28 percent. Such an election may be made only during (ii) by striking in clause (i) ‘‘in lieu of ap- ‘‘(2) SPECIAL RULES FOR PASS-THRU ENTI- the 1-year period beginning on the date of plying subparagraph (A),’’. TIES.— the enactment of this Act and, once made, (C) Paragraph (3) of section 904(b) is ‘‘(A) IN GENERAL.—In applying paragraph shall be irrevocable. amended by striking subparagraphs (D) and (1) with respect to any pass-thru entity, the (2) Section 1 is amended by striking sub- (E) and inserting the following new subpara- determination of when gains and losses are section (h). graph: properly taken into account shall be made at (3) Paragraph (1) of section 170(e) is amend- ‘‘(D) RATE DIFFERENTIAL PORTION.—The the entity level. ed by striking ‘‘the amount of gain’’ in the rate differential portion of foreign source net ‘‘(B) PASS-THRU ENTITY DEFINED.—For pur- capital gain, net capital gain, or the excess poses of subparagraph (A), the term ‘pass- material following subparagraph (B)(ii) and 25 of net capital gain from sources within the thru entity’ means— inserting ‘‘50 percent ( ⁄35 in the case of a United States over net capital gain, as the ‘‘(i) a regulated investment company, corporation) of the amount of gain’’. ‘‘(ii) a real estate investment trust, (4)(A) Paragraph (2) of section 172(d) is case may be, is the same proportion of such ‘‘(iii) an S corporation, amended to read as follows: amount as the excess of the highest rate of ‘‘(iv) a partnership, ‘‘(2) CAPITAL GAINS AND LOSSES.— tax specified in section 11(b) over the alter- ‘‘(v) an estate or trust, and ‘‘(A) LOSSES OF TAXPAYERS OTHER THAN native rate of tax under section 1201(a) bears ‘‘(vi) a common trust fund.’’ CORPORATIONS.—In the case of a taxpayer to the alternative rate of tax under section (b) DEDUCTION ALLOWABLE IN COMPUTING other than a corporation, the amount de- 1201(a).’’ ADJUSTED GROSS INCOME.—Subsection (a) of ductible on account of losses from sales or (12) Subsection (d) of section 1044 is amend- section 62 is amended by inserting after exchanges of capital assets shall not exceed ed by striking the last sentence. paragraph (15) the following new paragraph: the amount includible on account of gains (13)(A) Paragraph (2) of section 1211(b) is ‘‘(16) LONG-TERM CAPITAL GAINS.—The de- from sales or exchanges of capital assets. amended to read as follows: duction allowed by section 1202.’’ ‘‘(B) DEDUCTION UNDER SECTION 1202.—The ‘‘(2) the sum of— (c) TREATMENT OF COLLECTIBLES.— deduction under section 1202 shall not be al- ‘‘(A) the excess of the net short-term cap- (1) IN GENERAL.—Section 1222 is amended lowed.’’ ital loss over the net long-term capital gain, by inserting after paragraph (11) the follow- (B) Subparagraph (B) of section 172(d)(4) is and ing new paragraph: amended by striking ‘‘paragraphs (1) and (3)’’ ‘‘(B) one-half of the excess of the net long- ‘‘(12) SPECIAL RULE FOR COLLECTIBLES.— and inserting ‘‘paragraphs (1), (2)(B), and term capital loss over the net short-term ‘‘(A) IN GENERAL.—Any gain or loss from (3)’’. capital gain.’’ the sale or exchange of a collectible shall be (5) The last sentence of section 453A(c)(3) is (B) So much of paragraph (2) of section treated as a short-term capital gain or loss amended by striking all that follows ‘‘long- 1212(b) as precedes subparagraph (B) thereof (as the case may be), without regard to the term capital gain,’’ and inserting ‘‘the maxi- is amended to read as follows: period such asset was held. The preceding mum rate on net capital gain under section ‘‘(2) SPECIAL RULES.— sentence shall apply only to the extent the 1201 or the deduction under section 1202 ‘‘(A) ADJUSTMENTS.— gain or loss is taken into account in comput- (whichever is appropriate) shall be taken ‘‘(i) For purposes of determining the excess ing taxable income. into account.’’ referred to in paragraph (1)(A), there shall be ‘‘(B) TREATMENT OF CERTAIN SALES OF IN- (6) Paragraph (4) of section 642(c) is amend- treated as short-term capital gain in the tax- TEREST IN PARTNERSHIP, ETC.—For purposes ed to read as follows: able year an amount equal to the lesser of— of subparagraph (A), any gain from the sale ‘‘(4) ADJUSTMENTS.—To the extent that the ‘‘(I) the amount allowed for the taxable or exchange of an interest in a partnership, amount otherwise allowable as a deduction year under paragraph (1) or (2) of section S corporation, or trust which is attributable under this subsection consists of gain from to unrealized appreciation in the value of 1211(b), or the sale or exchange of capital assets held ‘‘(II) the adjusted taxable income for such collectibles held by such entity shall be for more than 1 year, proper adjustment treated as gain from the sale or exchange of taxable year. shall be made for any deduction allowable to ‘‘(ii) For purposes of determining the ex- a collectible. Rules similar to the rules of the estate or trust under section 1202 (relat- section 751(f) shall apply for purposes of the cess referred to in paragraph (1)(B), there ing to deduction for excess of capital gains preceding sentence. shall be treated as short-term capital gain in over capital losses). In the case of a trust, ‘‘(C) COLLECTIBLE.—For purposes of this the taxable year an amount equal to the sum the deduction allowed by this subsection paragraph, the term ‘collectible’ means any of— shall be subject to section 681 (relating to capital asset which is a collectible (as de- ‘‘(I) the amount allowed for the taxable fined in section 408(m) without regard to unrelated business income).’’ year under paragraph (1) or (2) of section paragraph (3) thereof).’’ (7) Paragraph (3) of section 643(a) is amend- 1211(b) or the adjusted taxable income for ed by adding at the end thereof the following (2) CHARITABLE DEDUCTION NOT AFFECTED.— such taxable year, whichever is the least, new sentence: ‘‘The deduction under section (A) Paragraph (1) of section 170(e) is plus 1202 (relating to deduction of excess of cap- amended by adding at the end the following ‘‘(II) the excess of the amount described in ital gains over capital losses) shall not be new sentence: ‘‘For purposes of this para- subclause (I) over the net short-term capital taken into account.’’ graph, section 1222 shall be applied without loss (determined without regard to this sub- (8) Subparagraph (C) of section 643(a)(6) is regard to paragraph (12) thereof (relating to section) for such year.’’ amended by inserting ‘‘(i)’’ before ‘‘there special rule for collectibles).’’ (C) Subsection (b) of section 1212 is amend- (B) Clause (iv) of section 170(b)(1)(C) is shall’’ and by inserting before the period ‘‘, and (ii) the deduction under section 1202 (re- ed by adding at the end the following new amended by inserting before the period at paragraph: the end the following: ‘‘and section 1222 shall lating to capital gains deduction) shall not be taken into account’’. ‘‘(3) TRANSITIONAL RULE.—In the case of be applied without regard to paragraph (12) any amount which, under paragraph (1) and thereof (relating to special rule for collect- (9) Paragraph (4) of section 691(c) is amend- section 1211(b) (as in effect for taxable years ibles)’’. ed by striking ‘‘sections 1(h), 1201, and 1211’’ beginning before January 1, 1996), is treated (d) TECHNICAL AND CONFORMING CHANGES.— and inserting ‘‘sections 1201, 1202, and 1211’’. as a capital loss in the first taxable year be- (1)(A) Section 13113 of the Revenue Rec- (10) The second sentence of section 871(a)(2) onciliation Act of 1993 (relating to 50-percent is amended by inserting ‘‘such gains and ginning after December 31, 1995, paragraph exclusion for gain from certain small busi- losses shall be determined without regard to (1) and section 1211(b) (as so in effect) shall ness stock), and the amendments made by section 1202 (relating to deduction for capital apply (and paragraph (1) and section 1211(b) such section, are hereby repealed; and the In- gains) and’’ after ‘‘except that’’. as in effect for taxable years beginning after ternal Revenue Code of 1986 shall be applied (11)(A) Paragraph (2) of section 904(b) is December 31, 1995, shall not apply) to the ex- as if such section (and amendments) had amended by striking subparagraph (A), by tent such amount exceeds the total of any never been enacted. redesignating subparagraph (B) as subpara- net capital gains (determined without regard (B) At the election of a taxpayer who holds graph (A), and by inserting after subpara- to this subsection) of taxable years begin- qualified small business stock (as defined in graph (A) (as so redesignated) the following ning after December 31, 1995.’’ section 1202 of such Code, as in effect on the new subparagraph: (14) Paragraph (1) of section 1402(i) is day before the date of the enactment of this ‘‘(B) OTHER TAXPAYERS.—In the case of a amended by inserting ‘‘, and the deduction Act) as of such date of enactment— taxpayer other than a corporation, taxable provided by section 1202 shall not apply’’ be- (i) the provisions repealed by subparagraph income from sources outside the United fore the period at the end thereof. (A) shall continue to apply to any disposi- States shall include gain from the sale or ex- (15) Subsection (e) of section 1445 is amend- tion by such taxpayer of such stock held on change of capital assets only to the extent of ed— such date, and foreign source capital gain net income.’’ (A) in paragraph (1) by striking ‘‘35 percent (ii) the amendments made by this section (B) Subparagraph (A) of section 904(b)(2), as (or, to the extent provided in regulations, 28 and section 6302 shall not apply to such so redesignated, is amended— percent)’’ and inserting ‘‘25 percent (or, to H 4278 CONGRESSIONAL RECORD — HOUSE April 5, 1995 the extent provided in regulations, 19.8 per- ‘‘(iii) stock in a foreign corporation held by which the entity’s net capital gain for the cent)’’, and a United States person who meets the re- taxable year (determined without regard to (B) in paragraph (2) by striking ‘‘35 per- quirements of section 1248(a)(2), and this section) exceeds the entity’s net capital cent’’ and inserting ‘‘25 percent’’. ‘‘(iv) stock in a foreign personal holding gain for such year determined with regard to (16)(A) The second sentence of section company (as defined in section 552). this section, and 7518(g)(6)(A) is amended— ‘‘(C) TREATMENT OF AMERICAN DEPOSITORY ‘‘(ii) there shall be other appropriate ad- (i) by striking ‘‘during a taxable year to RECEIPTS.—An American depository receipt justments (including deemed distributions) which section 1(h) or 1201(a) applies’’, and for common stock in a foreign corporation so as to ensure that the benefits of this sec- (ii) by striking ‘‘28 percent (34 percent’’ shall be treated as common stock in such tion are not allowed (directly or indirectly) and inserting ‘‘19.8 percent (25 percent’’. corporation. to corporate shareholders of qualified invest- (B) The second sentence of section ‘‘(c) INDEXED BASIS.—For purposes of this ment entities. 607(h)(6)(A) of the Merchant Marine Act, 1936 section— For purposes of the preceding sentence, any is amended— ‘‘(1) GENERAL RULE.—The indexed basis for amount includible in gross income under sec- (i) by striking ‘‘during a taxable year to any asset is— tion 852(b)(3)(D) shall be treated as a capital which section 1(h) or 1201(a) of such Code ap- ‘‘(A) the adjusted basis of the asset, in- gain dividend and an S corporation shall not plies’’, and creased by be treated as a corporation. ‘‘(B) the applicable inflation adjustment. (ii) by striking ‘‘28 percent (34 percent’’ ‘‘(C) EXCEPTION FOR QUALIFICATION PUR- ‘‘(2) APPLICABLE INFLATION ADJUSTMENT.— and inserting ‘‘19.8 percent (25 percent’’. POSES.—This section shall not apply for pur- The applicable inflation adjustment for any (e) CLERICAL AMENDMENT.—The table of poses of sections 851(b) and 856(c). asset is an amount equal to— sections for part I of subchapter P of chapter ‘‘(D) EXCEPTION FOR CERTAIN TAXES IM- ‘‘(A) the adjusted basis of the asset, multi- 1 is amended by inserting after the item re- POSED AT ENTITY LEVEL.— plied by lating to section 1201 the following new item: ‘‘(i) TAX ON FAILURE TO DISTRIBUTE ENTIRE ‘‘(B) the percentage (if any) by which— GAIN.—If any amount is subject to tax under ‘‘Sec. 1202. Capital gains deduction.’’ ‘‘(i) the gross domestic product deflator for section 852(b)(3)(A) for any taxable year, the (f) EFFECTIVE DATE.— the last calendar quarter ending before the (1) IN GENERAL.—Except as otherwise pro- asset is disposed of, exceeds amount on which tax is imposed under such vided in this subsection, the amendments ‘‘(ii) the gross domestic product deflator section shall be increased by the percentage made by this section shall apply to taxable for the last calendar quarter ending before determined under subparagraph (B)(i)(II). A years ending after December 31, 1994. the asset was acquired by the taxpayer. similar rule shall apply in the case of any amount subject to tax under paragraph (2) or (2) CONTRIBUTIONS.—The amendment made The percentage under subparagraph (B) shall (3) of section 857(b) to the extent attrib- by subsection (d)(3) shall apply to contribu- be rounded to the nearest 1⁄10 of 1 percentage utable to the excess of the net capital gain tions on or after January 1, 1995. point. over the deduction for dividends paid deter- (3) USE OF LONG-TERM LOSSES.—The amend- ‘‘(3) GROSS DOMESTIC PRODUCT DEFLATOR.— mined with reference to capital gain divi- ments made by subsection (d)(13) shall apply The gross domestic product deflator for any to taxable years beginning after December calendar quarter is the implicit price dends only. The first sentence of this clause 31, 1995. deflator for the gross domestic product for shall not apply to so much of the amount (4) WITHHOLDING.—The amendment made such quarter (as shown in the last revision subject to tax under section 852(b)(3)(A) as is by subsection (d)(15) shall apply only to thereof released by the Secretary of Com- designated by the company under section amounts paid after the date of the enact- merce before the close of the following cal- 852(b)(3)(D). ment of this Act. endar quarter). ‘‘(ii) OTHER TAXES.—This section shall not SEC. 6302. INDEXING OF CERTAIN ASSETS AC- ‘‘(d) SUSPENSION OF HOLDING PERIOD WHERE apply for purposes of determining the QUIRED AFTER DECEMBER 31, 1994, DIMINISHED RISK OF LOSS; TREATMENT OF amount of any tax imposed by paragraph (4), FOR PURPOSES OF DETERMINING SHORT SALES.— (5), or (6) of section 857(b). GAIN. ‘‘(1) IN GENERAL.—If the taxpayer (or a re- ‘‘(2) ADJUSTMENTS TO INTERESTS HELD IN (a) IN GENERAL.—Part II of subchapter O of lated person) enters into any transaction ENTITY.— chapter 1 (relating to basis rules of general which substantially reduces the risk of loss ‘‘(A) REGULATED INVESTMENT COMPANIES.— application) is amended by inserting after from holding any asset, such asset shall not Stock in a regulated investment company section 1021 the following new section: be treated as an indexed asset for the period (within the meaning of section 851) shall be ‘‘SEC. 1022. INDEXING OF CERTAIN ASSETS AC- of such reduced risk. an indexed asset for any calendar quarter in QUIRED AFTER DECEMBER 31, 1994, ‘‘(2) SHORT SALES.— the same ratio as— FOR PURPOSES OF DETERMINING ‘‘(A) IN GENERAL.—In the case of a short ‘‘(i) the average of the fair market values GAIN. sale of an indexed asset with a short sale pe- of the indexed assets held by such company ‘‘(a) GENERAL RULE.— riod in excess of 3 years, for purposes of this at the close of each month during such quar- ‘‘(1) INDEXED BASIS SUBSTITUTED FOR AD- title, the amount realized shall be an ter, bears to JUSTED BASIS.—Solely for purposes of deter- amount equal to the amount realized (deter- ‘‘(ii) the average of the fair market values mining gain on the sale or other disposition mined without regard to this paragraph) in- of all assets held by such company at the by a taxpayer (other than a corporation) of creased by the applicable inflation adjust- close of each such month. an indexed asset which has been held for ment. In applying subsection (c)(2) for pur- ‘‘(B) REAL ESTATE INVESTMENT TRUSTS.— more than 3 years, the indexed basis of the poses of the preceding sentence, the date on Stock in a real estate investment trust asset shall be substituted for its adjusted which the property is sold short shall be (within the meaning of section 856) shall be basis. treated as the date of acquisition and the an indexed asset for any calendar quarter in ‘‘(2) EXCEPTION FOR DEPRECIATION, ETC.— closing date for the sale shall be treated as the same ratio as— The deductions for depreciation, depletion, the date of disposition. ‘‘(i) the fair market value of the indexed and amortization shall be determined with- ‘‘(B) SHORT SALE PERIOD.—For purposes of assets held by such trust at the close of such out regard to the application of paragraph (1) subparagraph (A), the short sale period be- quarter, bears to to the taxpayer or any other person. gins on the day that the property is sold and ‘‘(ii) the fair market value of all assets ‘‘(b) INDEXED ASSET.— ends on the closing date for the sale. held by such trust at the close of such quar- ‘‘(1) IN GENERAL.—For purposes of this sec- ‘‘(e) TREATMENT OF REGULATED INVESTMENT ter. tion, the term ‘indexed asset’ means— COMPANIES AND REAL ESTATE INVESTMENT ‘‘(C) RATIO OF 80 PERCENT OR MORE.—If the ‘‘(A) common stock in a C corporation TRUSTS.— ratio for any calendar quarter determined (other than a foreign corporation), and ‘‘(1) ADJUSTMENTS AT ENTITY LEVEL.— under subparagraph (A) or (B) would (but for ‘‘(B) tangible property, ‘‘(A) IN GENERAL.—Except as otherwise pro- this subparagraph) be 80 percent or more, which is a capital asset or property used in vided in this paragraph, the adjustment such ratio for such quarter shall be 100 per- the trade or business (as defined in section under subsection (a) shall be allowed to any cent. 1231(b)). qualified investment entity (including for ‘‘(D) RATIO OF 20 PERCENT OR LESS.—If the ‘‘(2) STOCK IN CERTAIN FOREIGN CORPORA- purposes of determining the earnings and ratio for any calendar quarter determined TIONS INCLUDED.—For purposes of this sec- profits of such entity). under subparagraph (A) or (B) would (but for tion— ‘‘(B) EXCEPTION FOR CORPORATE SHAREHOLD- this subparagraph) be 20 percent or less, such ‘‘(A) IN GENERAL.—The term ‘indexed asset’ ERS.—Under regulations— ratio for such quarter shall be zero. includes common stock in a foreign corpora- ‘‘(i) in the case of a distribution by a quali- ‘‘(E) LOOK-THRU OF PARTNERSHIPS.—For tion which is regularly traded on an estab- fied investment entity (directly or indi- purposes of this paragraph, a qualified in- lished securities market. rectly) to a corporation— vestment entity which holds a partnership ‘‘(B) EXCEPTION.—Subparagraph (A) shall ‘‘(I) the determination of whether such dis- interest shall be treated (in lieu of holding a not apply to— tribution is a dividend shall be made without partnership interest) as holding its propor- ‘‘(i) stock of a foreign investment company regard to this section, and tionate share of the assets held by the part- (within the meaning of section 1246(b)), ‘‘(II) the amount treated as gain by reason nership. ‘‘(ii) stock in a passive foreign investment of the receipt of any capital gain dividend ‘‘(3) TREATMENT OF RETURN OF CAPITAL DIS- company (as defined in section 1296), shall be increased by the percentage by TRIBUTIONS.—Except as otherwise provided April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4279 by the Secretary, a distribution with respect year with respect to such property or stock (A) Any gain resulting from an election to stock in a qualified investment entity is less than $1,000, and under paragraph (1) shall be treated as re- which is not a dividend and which results in ‘‘(B) such addition shall be treated as a ceived or accrued on the date the asset is a reduction in the adjusted basis of such separate asset acquired at the close of such treated as sold under paragraph (1) and shall stock shall be treated as allocable to stock taxable year if the aggregate amount thereof be recognized notwithstanding any provision acquired by the taxpayer in the order in during the taxable year with respect to such of the Internal Revenue Code of 1986. which such stock was acquired. property or stock is $1,000 or more. (B) Any loss resulting from an election ‘‘(4) QUALIFIED INVESTMENT ENTITY.—For A rule similar to the rule of the preceding under paragraph (1) shall not be allowed for purposes of this subsection, the term ‘quali- sentence shall apply to any other portion of any taxable year. fied investment entity’ means— an asset to the extent that separate treat- (3) ELECTION.—An election under paragraph ‘‘(A) a regulated investment company ment of such portion is appropriate to carry (1) shall be made in such manner as the Sec- (within the meaning of section 851), and out the purposes of this section. retary may prescribe and shall specify the ‘‘(B) a real estate investment trust (within ‘‘(2) ASSETS WHICH ARE NOT INDEXED ASSETS assets for which such election is made. Such the meaning of section 856). THROUGHOUT HOLDING PERIOD.—The applica- an election, once made with respect to any ‘‘(f) OTHER PASS-THRU ENTITIES.— ble inflation ratio shall be appropriately re- asset, shall be irrevocable. ‘‘(1) PARTNERSHIPS.— duced for periods during which the asset was (4) READILY TRADABLE STOCK.—For pur- ‘‘(A) IN GENERAL.—In the case of a partner- not an indexed asset. poses of this subsection, the term ‘‘readily ship, the adjustment made under subsection ‘‘(3) TREATMENT OF CERTAIN DISTRIBU- tradable stock’’ means any stock which, as (a) at the partnership level shall be passed TIONS.—A distribution with respect to stock of January 1, 1995, is readily tradable on an through to the partners. in a corporation which is not a dividend shall established securities market or otherwise. ‘‘(B) SPECIAL RULE IN THE CASE OF SECTION be treated as a disposition. (e) TREATMENT OF PRINCIPAL RESIDENCES.— 754 ELECTIONS.—In the case of a transfer of an ‘‘(4) ACQUISITION DATE WHERE THERE HAS Property held and used by the taxpayer on interest in a partnership with respect to BEEN PRIOR APPLICATION OF SUBSECTION (a)(1) January 1, 1995, as his principal residence which the election provided in section 754 is WITH RESPECT TO THE TAXPAYER.—If there has (within the meaning of section 1034 of the In- in effect— been a prior application of subsection (a)(1) ternal Revenue Code of 1986) shall be treat- ‘‘(i) the adjustment under section 743(b)(1) to an asset while such asset was held by the ed— shall, with respect to the transferor partner, taxpayer, the date of acquisition of such (1) for purposes of subsection (c)(1) of this be treated as a sale of the partnership assets asset by the taxpayer shall be treated as not section and section 1022 of such Code, as hav- for purposes of applying this section, and earlier than the date of the most recent such ing a holding period which begins on Janu- ‘‘(ii) with respect to the transferee partner, prior application. ary 1, 1995, and the partnership’s holding period for purposes ‘‘(5) COLLAPSIBLE CORPORATIONS.—The ap- (2) for purposes of section 1022(c)(2)(B)(ii) of of this section in such assets shall be treated plication of section 341(a) (relating to col- such Code, as having been acquired on Janu- as beginning on the date of such adjustment. lapsible corporations) shall be determined ary 1, 1995. ‘‘(2) S CORPORATIONS.—In the case of an S without regard to this section. Subsection (d) shall not apply to property to corporation, the adjustment made under sub- ‘‘(j) REGULATIONS.—The Secretary shall which this subsection applies. section (a) at the corporate level shall be prescribe such regulations as may be nec- Subpart B—Capital Gains Reduction for passed through to the shareholders. This sec- essary or appropriate to carry out the pur- Corporations tion shall not apply for purposes of deter- poses of this section.’’ SEC. 6311. REDUCTION OF ALTERNATIVE CAP- mining the amount of any tax imposed by (b) CLERICAL AMENDMENT.—The table of ITAL GAIN TAX FOR CORPORATIONS. section 1374 or 1375. sections for part II of subchapter O of chap- (a) IN GENERAL.—Section 1201 is amended ‘‘(3) COMMON TRUST FUNDS.—In the case of a ter 1 is amended by inserting after the item to read as follows: common trust fund, the adjustment made relating to section 1021 the following new under subsection (a) at the trust level shall item: ‘‘SEC. 1201. ALTERNATIVE TAX FOR CORPORA- be passed through to the participants. TIONS. ‘‘(4) INDEXING ADJUSTMENT DISREGARDED IN ‘‘Sec. 1022. Indexing of certain assets ac- ‘‘(a) GENERAL RULE.—If for any taxable DETERMINING LOSS ON SALE OF INTEREST IN EN- quired after December 31, 1994, year a corporation has a net capital gain, TITY.—Notwithstanding the preceding provi- for purposes of determining then, in lieu of the tax imposed by sections sions of this subsection, for purposes of de- gain.’’ 11, 511, and 831 (a) and (b) (whichever is appli- termining the amount of any loss on a sale (c) EFFECTIVE DATE.— cable), there is hereby imposed a tax (if such or exchange of an interest in a partnership, (1) IN GENERAL.—The amendments made by tax is less than the tax imposed by such sec- S corporation, or common trust fund, the ad- this section shall apply to the disposition of tions) which shall consist of the sum of— justment made under subsection (a) shall not any property the holding period of which be- ‘‘(1) a tax computed on the taxable income be taken into account in determining the ad- gins after December 31, 1994. reduced by the amount of the net capital justed basis of such interest. (2) CERTAIN TRANSACTIONS BETWEEN RELAT- gain, at the rates and in the manner as if ‘‘(g) DISPOSITIONS BETWEEN RELATED PER- ED PERSONS.—The amendments made by this this subsection had not been enacted, plus SONS.— section shall not apply to the disposition of ‘‘(2) a tax of 25 percent of the net capital ‘‘(1) IN GENERAL.—This section shall not any property acquired after December 31, gain. apply to any sale or other disposition of 1994, from a related person (as defined in sec- ‘‘(b) TRANSITIONAL RULE.— property between related persons except to tion 1022(g)(2) of the Internal Revenue Code ‘‘(1) IN GENERAL.—In the case of any tax- the extent that the basis of such property in of 1986, as added by this section) if— able year ending after December 31, 1994, and the hands of the transferee is a substituted (A) such property was so acquired for a beginning before January 1, 1996, subsection basis. price less than the property’s fair market (a)(2) shall be applied as if it read as follows: ‘‘(2) RELATED PERSONS DEFINED.—For pur- value, and ‘‘ ‘(2)(A) a tax of 25 percent of the lesser poses of this section, the term ‘related per- (B) the amendments made by this section of— sons’ means— did not apply to such property in the hands ‘‘ ‘(i) the net capital gain for the taxable ‘‘(A) persons bearing a relationship set of such related person. year, or forth in section 267(b), and (d) ELECTION TO RECOGNIZE GAIN ON ASSETS ‘‘ ‘(ii) the net capital gain taking into ac- ‘‘(B) persons treated as single employer HELD ON JANUARY 1, 1995.—For purposes of count only gain or loss properly taken into under subsection (b) or (c) of section 414. the Internal Revenue Code of 1986— account for the portion of the taxable year ‘‘(h) TRANSFERS TO INCREASE INDEXING AD- (1) IN GENERAL.—A taxpayer other than a after December 31, 1994, plus JUSTMENT.—If any person transfers cash, corporation may elect to treat— ‘‘ ‘(B) a tax of 35 percent of the excess (if debt, or any other property to another per- (A) any readily tradable stock (which is an any) of— son and the principal purpose of such trans- indexed asset) held by such taxpayer on Jan- ‘‘ ‘(i) the net capital gain for the taxable fer is to secure or increase an adjustment uary 1, 1995, and not sold before the next year, over under subsection (a), the Secretary may dis- business day after such date, as having been ‘‘ ‘(ii) the amount of net capital gain taken allow part or all of such adjustment or in- sold on such next business day for an amount into account under subparagraph (A).’ crease. equal to its closing market price on such ‘‘(2) SPECIAL RULE FOR PASS-THRU ENTI- ‘‘(i) SPECIAL RULES.—For purposes of this next business day (and as having been reac- TIES.—Section 1202(e)(2) shall apply for pur- section— quired on such next business day for an poses of paragraph (1). ‘‘(1) TREATMENT OF IMPROVEMENTS, ETC.—If amount equal to such closing market price), ‘‘(c) CROSS REFERENCES.— there is an addition to the adjusted basis of and ‘‘For computation of the alternative tax— any tangible property or of any stock in a (B) any other indexed asset held by the ‘‘(1) in the case of life insurance companies, corporation during the taxable year by rea- taxpayer on January 1, 1995, as having been see section 801(a)(2), son of an improvement to such property or a sold on such date for an amount equal to its ‘‘(2) in the case of regulated investment contribution to capital of such corporation— fair market value on such date (and as hav- companies and their shareholders, see sec- ‘‘(A) such addition shall never be taken ing been reacquired on such date for an tion 852(b)(3)(A) and (D), and into account under subsection (c)(1)(A) if the amount equal to such fair market value). ‘‘(3) in the case of real estate investment aggregate amount thereof during the taxable (2) TREATMENT OF GAIN OR LOSS.— trusts, see section 857(b)(3)(A).’’ H 4280 CONGRESSIONAL RECORD — HOUSE April 5, 1995

(b) TECHNICAL AMENDMENT.—Clause (iii) of mestic product deflator for any calendar ‘‘(ii) DISALLOWED PORTION.—For purposes of section 852(b)(3)(D) is amended by striking quarter is the implicit price deflator for the clause (i), the disallowed portion is the per- ‘‘65 percent’’ and inserting ‘‘75 percent’’. gross domestic product for such quarter (as centage which the disallowed non-NCR loss’s (c) EFFECTIVE DATE.—The amendments shown in the last revision thereof released allocable share of non-NCR depreciation is of made by this section shall apply to taxable by the Secretary of Commerce before the total non-NCR depreciation. years ending after December 31, 1994. close of the following calendar quarter). ‘‘(iii) ALLOCABLE SHARE.—For purposes of Subpart C—Capital Loss Deduction Allowed ‘‘(4) COORDINATION WITH INDEXING OF BASIS clause (ii), a disallowed non-NCR loss’s allo- With Respect to Sale or Exchange of Prin- FOR PURPOSES OF DETERMINING GAIN.—Section cable share of non-NCR depreciation is the cipal Residence 1022 shall not apply to any property to which amount which bears the same ratio to the SEC. 6316. CAPITAL LOSS DEDUCTION ALLOWED this subsection applies. amount of the loss as the amount of non- WITH RESPECT TO SALE OR EX- ‘‘(5) ELECTION NOT TO HAVE SUBSECTION NCR depreciation for the taxable year bears CHANGE OF PRINCIPAL RESIDENCE. APPLY.—This subsection shall not apply to to the total amount of deductions for such (a) IN GENERAL.—Subsection (c) of section any property if the taxpayer elects not to taxable year. 165 (relating to limitation on losses of indi- have this subsection apply to such property. ‘‘(C) DEFINITIONS.—For purposes of this viduals) is amended by striking ‘‘and’’ at the Such an election, once made, shall be irrev- paragraph— end of paragraph (2), by striking the period ocable. ‘‘(i) DISALLOWED NON-NCR LOSS.—The term at the end of paragraph (3) and inserting ‘‘; ‘‘(6) CHURNING TRANSACTIONS.—This sub- ‘disallowed non-NCR loss’ means, for any and’’, and by adding at the end the following section shall not apply to any property if taxable year, the amount of the loss from new paragraph: this section would not apply to such prop- the activity which would be disallowed under ‘‘(4) losses arising from the sale or ex- erty were— paragraph (1) if such loss were determined change of the principal residence (within the ‘‘(A) subsection (f)(5)(A)(ii) applied by sub- without regard to the additional deduction meaning of section 1034) of the taxpayer.’’ stituting ‘1995’ for ‘1987’ and ‘1994’ for ‘1986’, allowable by reason of section 168(k). (b) EFFECTIVE DATE.—The amendment and ‘‘(ii) NON-NCR DEPRECIATION.—The term made by subsection (a) shall apply to sales ‘‘(B) subsection (f)(5)(B) not applied. ‘non-NCR depreciation’ means the amount and exchanges after December 31, 1994, in ‘‘(7) ADDITIONAL DEDUCTION NOT TO AFFECT allowable as a deduction under section 168 taxable years ending after such date. BASIS OR RECAPTURE.—The additional without regard to subsection (k) thereof.’’ PART II—COST RECOVERY PROVISIONS amount determined under this section by (4) Subparagraph (A) of section 1503(e)(1) is SEC. 6321. DEPRECIATION ADJUSTMENT FOR reason of this subsection shall not be taken amended by inserting before the comma CERTAIN PROPERTY PLACED IN into account in determining the adjusted ‘‘and shall be determined without regard to SERVICE AFTER DECEMBER 31, 1994. basis of any property or of any interest in a section 168(k)’’. (a) IN GENERAL.—Section 168 (relating to pass-thru entity (as defined in section (d) EFFECTIVE DATE.—The amendments accelerated cost recovery system) is amend- 1202(e)(2)) which holds such property and made by this section shall apply to taxable ed by adding at the end thereof the following shall not be treated as a deduction for depre- years ending after December 31, 1994. new subsection: ciation for purposes of sections 1245 and SEC. 6322. TREATMENT OF ABANDONMENT OF ‘‘(k) DEDUCTION ADJUSTMENT TO ALLOW 1250.’’ LESSOR IMPROVEMENTS AT TERMI- EQUIVALENT OF EXPENSING FOR CERTAIN (b) MINIMUM TAX TREATMENT.— NATION OF LEASE. PROPERTY PLACED IN SERVICE AFTER DECEM- (1) Paragraph (1) of section 56(a) is amend- (a) IN GENERAL.—Paragraph (8) of section BER 31, 1994.— ed by adding at the end thereof the following 168(i) is amended to read as follows: ‘‘(1) IN GENERAL.—In the case of tangible new subparagraph: ‘‘(8) TREATMENT OF LEASEHOLD IMPROVE- property placed in service after December 31, ‘‘(E) USE OF NEUTRAL COST RECOVERY MENTS.— 1994, the deduction under this section with RATIO.—This paragraph shall not apply to ‘‘(A) IN GENERAL.—In the case of any build- respect to such property— property to which section 168(k) applies.’’ ing erected (or improvements made) on ‘‘(A) shall be determined by substituting (2) Clause (i) of section 56(g)(4)(A) is leased property, if such building or improve- ‘150 percent’ for ‘200 percent’ in subsection amended by striking ‘‘(a)(1)(A)’’ and insert- ment is property to which this section ap- (b)(1) in the case of property to which the 200 ing ‘‘(a)(1)’’. plies, the depreciation deduction shall be de- percent declining balance method would oth- (3) Subparagraph (C) of section 56(g)(4) is termined under the provisions of this sec- erwise apply, and amended by adding at the end the following tion. ‘‘(B) for any taxable year after the taxable new clause: ‘‘(B) TREATMENT OF LESSOR IMPROVEMENTS year during which the property is placed in ‘‘(v) NEUTRAL COST RECOVERY DEDUCTION.— WHICH ARE ABANDONED AT TERMINATION OF service shall be— Clause (i) shall not apply to the additional LEASE.—An improvement— ‘‘(i) the amount determined under this sec- deduction allowable by reason of section ‘‘(i) which is made by the lessor of leased tion for such taxable year without regard to 168(k).’’ property for the lessee of such property, and this subparagraph, multiplied by (c) TECHNICAL AMENDMENTS.— ‘‘(ii) which is irrevocably disposed of or ‘‘(ii) the applicable neutral cost recovery (1) Clause (i) of section 280F(a)(1)(B) is abandoned by the lessor at the termination ratio for such taxable year. amended by adding at the end the following of the lease by such lessee, ‘‘(2) APPLICABLE NEUTRAL COST RECOVERY new sentence: ‘‘For purposes of this clause, shall be treated for purposes of determining RATIO.—For purposes of paragraph (1)— the unrecovered basis of any passenger auto- gain or loss under this title as disposed of by ‘‘(A) IN GENERAL.—The applicable neutral mobile shall be treated as including the addi- the lessor when so disposed of or aban- cost recovery ratio for the property for any tional amount determined under section 168 doned.’’ taxable year is the number determined by— by reason of subsection (k) thereof to the ex- (b) EFFECTIVE DATE.—Subparagraph (B) of ‘‘(i) dividing— tent not allowed as a deduction by reason of section 168(i)(8) of the Internal Revenue Code ‘‘(I) the gross domestic product deflator for this paragraph for any taxable year in the of 1986, as added by the amendment made by the calendar quarter which includes the mid- recovery period.’’ subsection (a), shall apply to improvements point of the taxable year, by (2) Subparagraph (B) of section 382(h)(2) is disposed of or abandoned after March 13, ‘‘(II) the gross domestic product deflator amended by adding at the end the following 1995. for the calendar quarter which includes the new sentence: ‘‘The amount of the net unre- PART III—ALTERNATIVE MINIMUM TAX mid-point of the taxable year in which the alized built-in loss shall be increased by the RELIEF property was placed in service by the tax- amount of the additional deduction allow- payer, and able by reason of section 168(k) which is SEC. 6331. PHASEOUT OF APPLICATION OF AL- ‘‘(ii) then multiplying the number deter- treated under the preceding sentence as a TERNATIVE MINIMUM TAX TO COR- mined under clause (i) by the number equal recognized built-in loss.’’ PORATIONS. to 1.035 to the nth power where ‘n’ is the (3) Subsection (a) of section 465 is amended (a) TERMINATION.—Subsection (a) of section number of full years (as of the close of the by adding at the end the following new para- 55 is amended by adding at the end the fol- taxable year referred to in clause (i)(I)) after graph: lowing new flush sentence: the date such property was placed in service. ‘‘(4) TREATMENT OF NEUTRAL COST RECOV- ‘‘In the case of a corporation, the tentative The applicable neutral cost recovery ratio ERY DEDUCTION.— minimum tax for any taxable year beginning shall never be less than 1. The applicable ‘‘(A) IN GENERAL.—None of the additional after December 31, 2000, shall be zero.’’ neutral cost recovery ratio shall be rounded deduction allowable by reason of section (b) EARLIER TERMINATION OF CERTAIN AD- to the nearest 1⁄1000. 168(k) for the taxable year shall be dis- JUSTMENTS FOR ALL TAXPAYERS.— ‘‘(B) SPECIAL RULE FOR CERTAIN PROP- allowed under paragraph (1) unless there is a (1) DEPRECIATION.—Clause (i) of section ERTY.—In the case of property described in disallowed non-NCR loss for such year. 56(a)(1)(A) is amended by inserting ‘‘and be- paragraph (2) or (3) of subsection (b) or in ‘‘(B) PROPORTIONATE DISALLOWANCE.— fore March 14, 1995,’’ after ‘‘December 31, subsection (g), the applicable neutral cost re- ‘‘(i) IN GENERAL.—If there is a disallowed 1986,’’. covery ratio shall be determined without re- non-NCR loss for the taxable year, only the (2) MINING EXPLORATION AND DEVELOPMENT gard to subparagraph (A)(ii). disallowed portion of the additional deduc- COSTS.—Paragraph (2) of section 56(a) is ‘‘(3) GROSS DOMESTIC PRODUCT DEFLATOR.— tion allowable by reason of section 168(k) amended by inserting ‘‘and before January 1, For purposes of paragraph (2), the gross do- shall not be allowed under paragraph (1). 1996,’’ after ‘‘December 31, 1986,’’. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4281

(3) LONG-TERM CONTRACTS.—Paragraph (3) at the end the following new sentence: ‘‘This at the time of filing the return of tax im- of section 56(a) is amended by inserting ‘‘and subparagraph shall not apply to any owner- posed by chapter 1 for the taxable year. The before January 1, 1996,’’ after ‘‘March 1, ship change after December 31, 1995.’’ designation shall be made on the first page 1986,’’. (e) EARLIER TERMINATION OF ITEMS OF TAX of the return or on the page bearing the tax- (4) POLLUTION CONTROL FACILITIES.—Para- PREFERENCE.— payer’s signature. graph (5) of section 56(a) is amended by in- (1) DEPLETION.—Paragraph (1) of section ‘‘(c) ADJUSTED INCOME TAX LIABILITY.—For serting ‘‘and before January 1, 1996,’’ after 57(a) is amended by adding at the end the fol- purposes of this section, the term ‘adjusted ‘‘December 31, 1986,’’. lowing new sentence: ‘‘This paragraph shall income tax liability’ means income tax li- (5) INSTALLMENT SALES.—Paragraph (6) of not apply to any taxable year beginning ability (as defined in section 6096(b)) reduced section 56(a) is amended by inserting ‘‘and after December 31, 1995.’’ by any amount designated under section 6096 before January 1, 1996,’’ after ‘‘March 1, (2) INTANGIBLE DRILLING COSTS.—Paragraph (relating to designation of income tax pay- 1986,’’. (2) of section 57(a) is amended by adding at ments to Presidential Election Campaign (c) EARLIER TERMINATION OF CIRCULATION the end the following new subparagraph: Fund).’’ AND RESEARCH AND EXPERIMENTAL EXPENDI- ‘‘(F) TERMINATION.—This paragraph shall (b) CLERICAL AMENDMENT.—The table of TURE ADJUSTMENT FOR INDIVIDUALS.—Sub- not apply to any taxable year beginning parts for such subchapter A is amended by paragraph (A) of section 56(b)(2) is amended after December 31, 1995.’’ adding at the end the following new item: by inserting ‘‘and before January 1, 1996,’’ (3) RESERVES FOR LOSSES ON BAD DEBTS.— after ‘‘December 31, 1986,’’. Paragraph (4) of section 57(a) is amended by ‘‘Part IX. Designation for reduction of public (d) EARLIER TERMINATION OF CERTAIN AD- adding at the end the following new sen- debt.’’ JUSTMENTS FOR CORPORATIONS.— tence: ‘‘This paragraph shall not apply to (c) EFFECTIVE DATE.—The amendments (1) MERCHANT MARINE CAPITAL CONSTRUC- any taxable year beginning after December made by this section shall apply to taxable TION FUNDS.—Paragraph (2) of section 56(c) is 31, 1995.’’ years ending after the date of the enactment amended— (4) TAX-EXEMPT INTEREST.—Paragraph (5) of this Act. (A) by inserting ‘‘and before January 1, of section 57(a) is amended by adding at the 1996,’’ after ‘‘December 31, 1986,’’ each place end the following new subparagraph: SEC. 6342. PUBLIC DEBT REDUCTION TRUST FUND. it appears, and ‘‘(D) TERMINATION FOR CORPORATIONS.—In (B) by striking the last sentence and in- the case of a corporation (other than a cor- (a) IN GENERAL.—Subchapter A of chapter serting the following new flush sentence: poration referred to in section 56(g)(6)), this 98 of the Internal Revenue Code of 1986 (re- ‘‘For purposes of this paragraph, any with- paragraph shall not apply to interest accru- lating to trust fund code) is amended by add- drawal of deposit or earnings from the fund ing for periods after December 31, 1995.’’ ing at the end the following new section: shall be treated as allocable to deposits (f) NET OPERATING LOSS DEDUCTION.—Para- ‘‘SEC. 9512. PUBLIC DEBT REDUCTION TRUST made, and earnings received or accrued, in graph (1) of section 56(d) is amended by in- FUND. the order in which made, received, or ac- serting ‘‘(100 percent in the case of taxable ‘‘(a) CREATION OF TRUST FUND.—There is crued.’’ years beginning after December 31, 1995)’’ established in the Treasury of the United (2) SECTION 833(b) DEDUCTION.—Paragraph (3) after ‘‘90 percent’’ each place it appears. States a trust fund to be known as the ‘Pub- of section 56(c) is amended by adding at the (g) LOSSES.— lic Debt Reduction Trust Fund’, consisting end the following new sentence: ‘‘This para- (1) Section 58 is amended by adding at the of any amount appropriated or credited to graph shall not apply to any taxable year be- end the following new subsection: the Trust Fund as provided in this section or ginning after December 31, 1995.’’ ‘‘(d) TERMINATION.—This section shall not section 9602(b). (3) CERTAIN EARNINGS AND PROFITS ITEMS.— apply to any loss incurred for any taxable ‘‘(b) TRANSFERS TO TRUST FUND.—There (A) Subparagraph (B) of section 56(g)(4) is year beginning after December 31, 1995.’’ are hereby appropriated to the Public Debt amended by adding at the end the following (2) Subsection (h) of section 59 is amended Reduction Trust Fund amounts equivalent new clause: by inserting ‘‘469,’’ after ‘‘465,’’. to the amounts designated under section 6097 ‘‘(iii) TERMINATION.—This subparagraph (h) FOREIGN TAX CREDIT.—Paragraph (2) of (relating to designation for public debt re- shall not apply to any taxable year begin- section 59(a) is amended by adding at the end duction). ning after December 31, 1995.’’ the following new subparagraph: ‘‘(c) EXPENDITURES.—Amounts in the Pub- (B) Subparagraph (C) of section 56(g)(4) is ‘‘(D) TERMINATION.—This paragraph shall lic Debt Reduction Trust Fund shall be used amended by adding at the end the following not apply to any taxable year beginning by the Secretary of the Treasury for pur- new clause: after December 31, 1995.’’ poses of paying at maturity, or to redeem or ‘‘(vi) TERMINATION.—This subparagraph (i) LIMITATION ON USE OF CREDIT FOR PRIOR buy before maturity, any obligation of the shall not apply to any taxable year begin- YEAR MINIMUM TAX LIABILITY.— Federal Government included in the public ning after December 31, 1995.’’ (1) IN GENERAL.—Subsection (c) of section debt (other than an obligation held by the (4) INTANGIBLE DRILLING COSTS.—Clause (i) 53 is amended to read as follows: Federal Old-Age and Survivors Insurance of section 56(g)(4)(D) is amended by adding at ‘‘(c) LIMITATION.—The credit allowable Trust Fund, the Civil Service Retirement the end the following new sentence: ‘‘This under subsection (a) for any taxable year and Disability Fund, or the Department of clause shall not apply to any taxable year shall not exceed the lesser of— Defense Military Retirement Fund). Any ob- beginning after December 31, 1995.’’ ‘‘(1) the excess (if any) of— ligation which is paid, redeemed, or bought (5) CERTAIN AMORTIZATION PROVISIONS.— ‘‘(A) the regular tax liability of the tax- with amounts from the Public Debt Reduc- Clause (ii) of section 56(g)(4)(D) is amended payer for such taxable year reduced by the tion Trust Fund shall be canceled and retired by adding at the end the following new sen- sum of the credits allowable under subparts and may not be reissued.’’ tence: ‘‘This clause shall not apply to any A, B, D, E, and F of this part, over (b) CLERICAL AMENDMENT.—The table of expenditure paid or incurred after December ‘‘(B) the tentative minimum tax for the sections for such subchapter is amended by 31, 1995.’’ taxable year, or adding at the end the following new item: (6) LIFO INVENTORY ADJUSTMENTS.—Clause ‘‘(2) 90 percent of the amount determined (iii) of section 56(g)(4)(D) is amended by add- under paragraph (1)(A).’’ ‘‘Sec. 9512. Public Debt Reduction Trust ing at the end the following new sentence: (2) EFFECTIVE DATE.—The amendment Fund.’’ ‘‘This clause shall not apply to any adjust- made by paragraph (1) shall apply to taxable (c) EFFECTIVE DATE.—The amendments ment arising in a taxable year beginning years beginning after December 31, 1995. made by this section shall apply to amounts after December 31, 1995.’’ PART IV—TAXPAYER DEBT BUY-DOWN received after the date of the enactment of (7) INSTALLMENT SALES.—Clause (iv) of sec- this Act. tion 56(g)(4)(D) is amended by adding at the SEC. 6341. DESIGNATION OF AMOUNTS FOR RE- DUCTION OF PUBLIC DEBT. end the following new sentence: ‘‘This clause SEC. 6343. TAXPAYER-GENERATED SEQUESTRA- (a) IN GENERAL.—Subchapter A of chapter shall not apply to any disposition after De- TION OF FEDERAL SPENDING TO RE- 61 of the Internal Revenue Code of 1986 (re- DUCE THE PUBLIC DEBT. cember 31, 1995.’’ lating to returns and records) is amended by (a) SEQUESTRATION TO REDUCE THE PUBLIC (8) DEBT POOLS.—Subparagraph (E) of sec- adding at the end the following new part: tion 56(g)(4) is amended by adding at the end DEBT.—Part C of the Balanced Budget and the following new sentence: ‘‘This subpara- ‘‘PART IX—DESIGNATION FOR REDUCTION Emergency Deficit Control Act of 1985 is graph shall not apply to any exchange after OF PUBLIC DEBT amended by adding after section 253 the fol- December 31, 1995.’’ ‘‘Sec. 6097. Designation. lowing new section: (9) DEPLETION.—Subparagraph (F) of sec- ‘‘SEC. 6097. DESIGNATION. ‘‘SEC. 253A. SEQUESTRATION TO REDUCE THE tion 56(g)(4) is amended by adding at the end ‘‘(a) IN GENERAL.—Every individual with PUBLIC DEBT. the following new clause: adjusted income tax liability for any taxable ‘‘(a) SEQUESTRATION.—Notwithstanding ‘‘(iii) TERMINATION.—This subparagraph year may designate that a portion of such li- sections 255 and 256, within 15 days after Con- shall not apply to any deduction for deple- ability (not to exceed 10 percent thereof) gress adjourns to end a session, and on the tion for any taxable year beginning after De- shall be used to reduce the public debt. same day as a sequestration (if any) under cember 31, 1995.’’ ‘‘(b) MANNER AND TIME OF DESIGNATION.—A sections 251, 252, and 253, but after any se- (10) OWNERSHIP CHANGES.—Subparagraph designation under subsection (a) may be questration of budget-year budgetary re- (G) of section 56(g)(4) is amended by adding made with respect to any taxable year only sources required by those sections, there H 4282 CONGRESSIONAL RECORD — HOUSE April 5, 1995 shall be a sequestration equivalent to the es- including those from which funding is de- of such Act and any advance appropriated to timated aggregate amount designated under rived primarily from other Government ac- the Federal unemployment account pursuant section 6097 of the Internal Revenue Code of counts, except to the extent that such funds to section 1203 of such Act; and 1986 for the calendar year two years before are augmented by direct appropriations for ‘‘(III) any payment made from the Federal the year in which that session of Congress the fiscal year for which the order is in ef- Employees Compensation Account (as estab- started, as estimated by the Department of fect; and those obligations of discretionary lished under section 909 of such Act) for the the Treasury on October 1 in the year after accounts or activities that are financed by purpose of carrying out chapter 85 of title 5, the applicable tax year and as modified by intragovernmental payments from another United States Code, and funds appropriated the total of (1) any amounts by which net discretionary account or activity; or transferred to or otherwise deposited in discretionary spending is reduced by legisla- ‘‘(iv) expenses to the extent they result such Account. tion below the discretionary spending limits from private donations, bequests, or vol- ‘‘(3) FEDERAL ADMINISTRATIVE EXPENSES.— enacted after the enactment of this section untary contributions to the Government; ‘‘(A) Administrative expenses incurred by related to the fiscal year subject to the se- ‘‘(v) nonbudgetary activities, including but the departments and agencies, including questration or, in the absence of such limits, not limited to— independent agencies, of the Federal Govern- any net reduction below discretionary out- ‘‘(I) credit liquidating and financing ac- ment in connection with any program, lays for fiscal year 1995 and (2) the net deficit counts; project, activity, or account shall be subject change that has resulted from all direct ‘‘(II) the Pension Benefit Guarantee Cor- to reduction pursuant to any sequestration spending legislation enacted after the enact- poration Trust Funds; order, without regard to the exemptions ment of this section related to the fiscal ‘‘(III) the Thrift Savings Fund; under paragraph (2) and regardless of wheth- year subject to the sequestration, as esti- ‘‘(IV) the Federal Reserve System; and er the program, project, activity, or account mated by OMB. Within 5 days after the en- ‘‘(V) appropriations for the District of Co- is self-supporting and does not receive appro- actment of any such direct spending legisla- lumbia to the extent they are appropriations priations. tion, OMB shall estimate the change in of locally raised funds; ‘‘(B) Payments made by the Federal Gov- spending resulting from that legislation for ‘‘(vi) payments resulting from Government ernment to reimburse or match administra- the 5-fiscal-year period beginning with the insurance, Government guarantees, or any tive costs incurred by a State or political first fiscal year for which that legislation be- other form of contingent liability, to the ex- subdivision under or in connection with any comes effective and transmit a report to the tent those payments result from contractual program, project, activity, or account shall House of Representatives and the Senate or other legally binding commitments of the not be considered administrative expenses of containing that estimate. Only the esti- Government at the time of any sequestra- the Federal Government for purposes of this mated deficit reduction included in the 5- tion; section, and shall be subject to sequestration year estimate made at the time the legisla- ‘‘(vii) the following accounts, which large- to the extent (and only to the extent) that tion is enacted shall be used for purposes of ly fulfill requirements of the Constitution or other payments made by the Federal Govern- determining whether there shall be a seques- otherwise make payments to which the Gov- ment under or in connection with that pro- tration under this subsection. Notwithstand- ernment is committed— gram, project, activity, or account are sub- ing the preceding two sentences, any esti- ‘‘Administration of Territories, Northern ject to that reduction or sequestration; ex- mates of direct spending made by OMB under Mariana Islands Covenant grants (14–0412–0– cept that Federal payments made to a State this subsection for any legislation that first 1–806); as reimbursement of administrative costs in- takes effect in fiscal year 1995, 1996, or 1997 ‘‘Bureau of Indian Affairs, miscellaneous curred by that State under or in connection shall include estimates of the direct spend- payments to Indians (14–2303–0–1–452); with the unemployment compensation pro- ing effects through fiscal year 2002 and those ‘‘Bureau of Indian Affairs, miscellaneous grams specified in paragraph (2)(ix) shall be estimates shall be used for purposes of deter- trust funds, tribal trust funds (14–9973–0–7– subject to reduction or sequestration under mining whether there shall be a sequestra- 999); this part notwithstanding the exemption tion under this subsection. If the reduction ‘‘Claims, defense; otherwise granted to such programs under in spending under paragraphs (1) and (2) for ‘‘Claims, judgments, and relief act (20–1895– that paragraph.’’. a fiscal year is greater than the estimated 0–1–806); (b) REPORTS.—Section 254 of the Balanced aggregate amount designated under section ‘‘Compact of Free Association, economic Budget and Emergency Deficit Control Act 6097 of the Internal Revenue Code of 1986 re- assistance pursuant to Public Law 99–658 (14– of 1985 is amended— specting that fiscal year, then there shall be 0415–0–1–806); (1) in subsection (a), by inserting after the no sequestration under this section. ‘‘Compensation of the President (11–0001–0– item relating to the GAO compliance report ‘‘(b) APPLICABILITY.— 1–802); the following: ‘‘(1) IN GENERAL.—Except as provided by ‘‘Customs Service, miscellaneous perma- ‘‘October 1 . . . Department of Treasury paragraph (2), each account of the United nent appropriations (20–9992–0–2–852); report to Congress estimating amount of in- States shall be reduced by a dollar amount ‘‘Eastern Indian land claims settlement come tax designated pursuant to section 6097 calculated by multiplying the level of budg- fund (14–2202–0–1–806); of the Internal Revenue Code of 1986.’’; etary resources in that account at that time ‘‘Farm Credit System Financial Assistance (2) in subsection (d)(1), by inserting ‘‘, and by the uniform percentage necessary to Corporation, interest payments (20–1850–0–1– sequestration to reduce the public debt,’’; carry out subsection (a). All obligational au- 351); (3) in subsection (d), by redesignating para- thority reduced under this section shall be ‘‘Internal Revenue collections of Puerto graph (5) as paragraph (6) and by inserting done in a manner that makes such reduc- Rico (20–5737–0–2–852); after paragraph (4) the following new para- tions permanent. ‘‘Panama Canal Commission, operating ex- graph: ‘‘(2) EXEMPT ACCOUNTS.—(A) No order is- penses and capital outlay (95–5190–0–2–403); ‘‘(5) SEQUESTRATION TO REDUCE THE PUBLIC sued under this part may— ‘‘Payments of Vietnam and USS Pueblo DEBT REPORTS.—The preview reports shall set ‘‘(i) reduce benefits payable to the old-age prisoner-of-war claims (15–0104–0–1–153); forth for the budget year estimates for each and survivors insurance program established ‘‘Payments to copyright owners (03–5175–0– of the following: under title II of the Social Security Act; 2–376); ‘‘(A) The aggregate amount designated ‘‘(ii) reduce payments for net interest (all ‘‘Payments to the United States terri- under section 6097 of the Internal Revenue of major functional category 900); or tories, fiscal assistance (14–0418–0–1–801); Code of 1986 for the calendar year two years ‘‘(iii) make any reduction in the following ‘‘Salaries of Article III judges; before the year in which the budget year be- accounts: ‘‘Soldier’s and Airmen’s Home, payment of gins. ‘‘Federal Deposit Insurance Corporation, claims (84–8930–0–7–705); ‘‘(B) The amount of reductions required Bank Insurance Fund; ‘‘Washington Metropolitan Area Transit under section 253A and the deficit remaining ‘‘Federal Deposit Insurance Corporation, Authority, interest payments (46–0300–0–1– after those reductions have been made. FSLIC Resolution Fund; 401). ‘‘(C) The sequestration percentage nec- ‘‘Federal Deposit Insurance Corporation, ‘‘(viii) the following noncredit special, re- essary to achieve the required reduction in Savings Association Insurance Fund; volving, or trust-revolving funds— accounts under section 253A(b).’’; and ‘‘National Credit Union Administration, ‘‘Coinage profit fund (20–5811–0–2–803); (4) in subsection (g), by redesignating para- credit union share insurance fund; or ‘‘Exchange Stabilization Fund (20–4444–0–3– graphs (4) and (5) as paragraphs (5) and (6), ‘‘Resolution Trust Corporation. 155); respectively, and by inserting after para- ‘‘(B) The following budget accounts, activi- ‘‘Foreign Military Sales trust fund (11– graph (3) the following new paragraph: ties within accounts, or income shall be ex- 82232–0–7–155); and ‘‘(4) SEQUESTRATION TO REDUCE THE PUBLIC empt from sequestration— ‘‘(ix)(I) any amount paid as regular unem- DEBT REPORTS.—The final reports shall con- ‘‘(i) all payments to trust funds from ex- ployment compensation by a State from its tain all of the information contained in the cise taxes or other receipts or collections account in the Unemployment Trust Fund public debt taxation designation report re- properly creditable to those trust funds; (established by section 904(a) of the Social quired on October 1.’’. ‘‘(ii) offsetting receipts and collections; Security Act); (c) EFFECTIVE DATE.—Notwithstanding sec- ‘‘(iii) all payments from one Federal direct ‘‘(II) any advance made to a State from the tion 275(b) of the Balanced Budget and Emer- spending budget account to another Federal Federal unemployment account (established gency Deficit Control Act of 1985, the expira- budget account; all intragovernmental funds by section 904(g) of such Act) under title XII tion date set forth in that section shall not April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4283 apply to the amendments made by this sec- ‘‘(B) the cost-of-living adjustment deter- SEC. 6352. INCREASE IN EXPENSE TREATMENT tion. The amendments made by this section mined under section 1(f)(3) for such calendar FOR SMALL BUSINESSES. shall cease to have any effect after the first year by substituting ‘calendar year 1997’ for (a) GENERAL RULE.—Paragraph (1) of sec- fiscal year during which there is no public ‘calendar year 1992’ in subparagraph (B) tion 179(b) (relating to dollar limitation) is debt. thereof. amended to read as follows: OLLAR LIMITATION.—The aggregate PART V—SMALL BUSINESS INCENTIVES If any amount as adjusted under the preced- ‘‘(1) D cost which may be taken into account under ing sentence is not a multiple of $10,000, such SEC. 6351. COST-OF-LIVING ADJUSTMENTS RE- subsection (a) for any taxable year shall not LATING TO ESTATE AND GIFT TAX amount shall be rounded to the nearest mul- exceed the following applicable amount: PROVISIONS. tiple of $10,000.’’ (a) INCREASE IN UNIFIED ESTATE AND GIFT (c) ANNUAL GIFT TAX EXCLUSION.—Sub- ‘‘If the taxable year The applicable TAX CREDIT.— section (b) of section 2503 is amended— begins in: amount is: (1) ESTATE TAX CREDIT.— (1) by striking the subsection heading and 1996 ...... $22,500 (A) Subsection (a) of section 2010 (relating inserting the following: 1997 ...... 27,500 to unified credit against estate tax) is ‘‘(b) EXCLUSIONS FROM GIFTS.— 1998 ...... 32,500 amended by striking ‘‘$192,800’’ and inserting ‘‘(1) IN GENERAL.—’’, 1999 or thereafter ...... 35,000.’’ ‘‘the applicable credit amount’’. (2) by moving the text 2 ems to the right, (b) EFFECTIVE DATE.—The amendment (B) Section 2010 is amended by redesignat- and made by subsection (a) shall apply to taxable ing subsection (c) as subsection (d) and by in- (3) by adding at the end the following new years beginning after December 31, 1995. serting after subsection (b) the following new paragraph: SEC. 6353. CLARIFICATION OF TREATMENT OF subsection: ‘‘(2) INFLATION ADJUSTMENT.—In the case of HOME OFFICE USE FOR ADMINIS- ‘‘(c) APPLICABLE CREDIT AMOUNT.—For pur- gifts made in a calendar year after 1998, the TRATIVE AND MANAGEMENT ACTIVI- poses of this section— $10,000 amount contained in paragraph (1) TIES. ‘‘(1) IN GENERAL.—The applicable credit shall be increased by an amount equal to— (a) IN GENERAL.—Paragraph (1) of section amount is the amount of the tentative tax ‘‘(A) $10,000, multiplied by 280A(c) is amended by adding at the end the which would be determined under the rate ‘‘(B) the cost-of-living adjustment deter- following new sentence: ‘‘For purposes of schedule set forth in section 2001(c) if the mined under section 1(f)(3) for such calendar subparagraph (A), the term ‘principal place amount with respect to which such tentative year by substituting ‘calendar year 1997’ for of business’ includes a place of business tax is to be computed were the applicable ex- ‘calendar year 1992’ in subparagraph (B) which is used by the taxpayer for the admin- clusion amount determined in accordance thereof. istrative or management activities of any trade or business of the taxpayer if there is with the following table: If any amount as adjusted under the preced- no other fixed location of such trade or busi- ing sentence is not a multiple of $1,000, such ‘‘In the case of estates of The applicable ness where the taxpayer conducts substan- amount shall be rounded to the nearest mul- decedents dying, exclusion tial administrative or management activi- tiple of $1,000.’’ and ties of such trade or business.’’ gifts made, during: amount is: (d) EXEMPTION FROM GENERATION-SKIPPING (b) EFFECTIVE DATE.—The amendment 1996 ...... $700,000 TAX.—Section 2631 (relating to GST exemp- made by subsection (a) shall apply to taxable 1997 ...... $725,000 tion) is amended by adding at the end the years beginning after December 31, 1995. 1998 or thereafter ...... $750,000. following new subsection: ‘‘(c) INFLATION ADJUSTMENT.—In the case SEC. 6354. TREATMENT OF STORAGE OF PROD- ‘‘(2) COST-OF-LIVING ADJUSTMENTS.—In the UCT SAMPLES. case of any decedent dying, and gift made, in of an individual who dies in any calendar year after 1998, the $1,000,000 amount con- (a) IN GENERAL.—Paragraph (2) of section a calendar year after 1998, the $750,000 280A(c) is amended by striking ‘‘inventory’’ amount set forth in paragraph (1) shall be in- tained in subsection (a) shall be increased by an amount equal to— and inserting ‘‘inventory or product sam- creased by an amount equal to— ples’’. ‘‘(A) $750,000, multiplied by ‘‘(1) $1,000,000, multiplied by (b) EFFECTIVE DATE.—The amendment ‘‘(B) the cost-of-living adjustment deter- ‘‘(2) the cost-of-living adjustment deter- mined under section 1(f)(3) for such calendar made by subsection (a) shall apply to taxable mined under section 1(f)(3) for such calendar years beginning after December 31, 1995. year by substituting ‘calendar year 1997’ for year by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) ‘calendar year 1992’ in subparagraph (B) Subtitle D—Family Reinforcement thereof. thereof. SEC. 6401. CREDIT FOR ADOPTION EXPENSES. If any amount as adjusted under the preced- If any amount as adjusted under the preced- (a) IN GENERAL.—Subpart A of part IV of ing sentence is not a multiple of $10,000, such ing sentence is not a multiple of $10,000, such subchapter A of chapter 1 is amended by in- amount shall be rounded to the nearest mul- amount shall be rounded to the nearest mul- serting after section 25 the following new tiple of $10,000.’’ tiple of $10,000.’’ section: (C) Paragraph (1) of section 6018(a) is (e) AMOUNT OF TAX ELIGIBLE FOR 4 PER- ‘‘SEC. 25A. ADOPTION EXPENSES. amended by striking ‘‘$600,000’’ and inserting CENT INTEREST RATE ON EXTENSION OF TIME ‘‘(a) ALLOWANCE OF CREDIT.—In the case of ‘‘the applicable exclusion amount in effect FOR PAYMENT OF ESTATE TAX ON CLOSELY an individual, there shall be allowed as a under section 2010(c) (as adjusted under para- HELD BUSINESS.— credit against the tax imposed by this chap- graph (2) thereof) for the calendar year (1) Subparagraph (A) of section 6601(j)(2) is ter for the taxable year the amount of the which includes the date of death’’. amended by striking ‘‘$345,800’’ and inserting qualified adoption expenses paid or incurred (D) Paragraph (2) of section 2001(c) is ‘‘the applicable limitation amount’’. by the taxpayer during such taxable year. amended by striking ‘‘$21,040,000’’ and insert- (2) Subsection (j) of section 6601 is amended ‘‘(b) LIMITATIONS.— ing ‘‘the amount at which the average tax by redesignating paragraph (3) as paragraph ‘‘(1) DOLLAR LIMITATION.—The aggregate rate under this section is 55 percent’’. (4) and by inserting after paragraph (2) the amount of qualified adoption expenses which (E) Subparagraph (A) of section 2102(c)(3) is following new paragraph: may be taken into account under subsection amended by striking ‘‘$192,800’’ and inserting ‘‘(3) APPLICABLE LIMITATION AMOUNT.— (a) with respect to the adoption of a child ‘‘the applicable credit amount in effect ‘‘(A) IN GENERAL.—For purposes of para- shall not exceed $5,000. under section 2010(c) for the calendar year graph (2), the applicable limitation amount ‘‘(2) INCOME LIMITATION.—The amount al- which includes the date of death’’. is the amount of the tentative tax which lowable as a credit under subsection (a) for (2) UNIFIED GIFT TAX CREDIT.—Paragraph (1) would be determined under the rate schedule any taxable year shall be reduced (but not of section 2505(a) is amended by striking set forth in section 2001(c) if the amount below zero) by an amount which bears the ‘‘$192,800’’ and inserting ‘‘the applicable cred- with respect to which such tentative tax is same ratio to the amount so allowable (de- it amount in effect under section 2010(c) for to be computed were $1,000,000. termined without regard to this paragraph such calendar year’’. ‘‘(B) INFLATION ADJUSTMENT.—In the case but with regard to paragraph (1)) as— (3) EFFECTIVE DATE.—The amendments of estates of decedents dying in a calendar ‘‘(A) the amount (if any) by which the tax- made by this subsection shall apply to the year after 1998, the $1,000,000 amount con- payer’s adjusted gross income (determined estates of decedents dying, and gifts made, tained in subparagraph (A) shall be increased without regard to sections 911, 931, and 933) after December 31, 1995. by an amount equal to— exceeds $60,000, bears to (b) ALTERNATE VALUATION OF CERTAIN ‘‘(i) $1,000,000, multiplied by ‘‘(B) $40,000. FARM, ETC., REAL PROPERTY.—Subsection (a) ‘‘(ii) the cost-of-living adjustment deter- ‘‘(3) DENIAL OF DOUBLE BENEFIT.— of section 2032A is amended by adding at the mined under section 1(f)(3) for such calendar ‘‘(A) IN GENERAL.—No credit shall be al- end the following new paragraph: year by substituting ‘calendar year 1997’ for lowed under subsection (a) for any expense ‘‘(3) INFLATION ADJUSTMENT.—In the case of ‘calendar year 1992’ in subparagraph (B) for which a deduction or credit is allowable estates of decedents dying in a calendar year thereof. under any other provision of this chapter. after 1998, the $750,000 amount contained in If any amount as adjusted under the preced- ‘‘(B) GRANTS.—No credit shall be allowed paragraph (2) shall be increased by an ing sentence is not a multiple of $10,000, such under subsection (a) for any expense to the amount equal to— amount shall be rounded to the nearest mul- extent that funds for such expense are re- ‘‘(A) $750,000, multiplied by tiple of $10,000.’’ ceived under any Federal, State, or local H 4284 CONGRESSIONAL RECORD — HOUSE April 5, 1995 program. The preceding sentence shall not ‘‘(4) whose name and TIN are included on ed by striking ‘‘Paragraph (1) of section apply to expenses for the adoption of a child the taxpayer’s return for the taxable year. 6724(d)’’ and inserting ‘‘Subparagraph (B) of with special needs. For purposes of paragraph (1), a stepfather or section 6724(d)(1)’’. ‘‘(c) DEFINITIONS.—For purposes of this sec- stepmother shall be treated as a father or (2)(A) Subparagraph (B) of section tion— mother. 4093(c)(2), as in effect before the amendments ‘‘(1) QUALIFIED ADOPTION EXPENSES.— ‘‘(c) SPECIAL RULES.—For purposes of this made by the Revenue Reconciliation Act of ‘‘(A) IN GENERAL.—The term ‘qualified section, rules similar to the rules of para- 1993, is amended by inserting before the pe- adoption expenses’ means reasonable and graphs (1), (2), (3), and (4) of section 21(e) riod ‘‘unless such fuel is sold for exclusive necessary adoption fees, court costs, attor- shall apply.’’ use by a State or any political subdivision ney fees, and other expenses— (b) CLERICAL AMENDMENT.—The table of thereof’’. ‘‘(i) which are directly related to, and the sections for subpart A of part IV of sub- (B) Paragraph (4) of section 6427(l), as in ef- principal purpose of which is for, the legal chapter A of chapter 1 is amended by insert- fect before the amendments made by the adoption of an eligible child by the taxpayer, ing after the item relating to section 25A the Revenue Reconciliation Act of 1993, is and following new item: amended by inserting before the period ‘‘un- ‘‘(ii) which are not incurred in violation of ‘‘Sec. 25B. Credit for taxpayers with certain less such fuel was used by a State or any po- State or Federal law or in carrying out any persons requiring custodial care litical subdivision thereof’’. surrogate parenting arrangement. in their households.’’ (3) Paragraph (1) of section 6416(b) is ‘‘(B) EXPENSES FOR ADOPTION OF SPOUSE’S amended by striking ‘‘chapter 32 or by sec- CHILD NOT ELIGIBLE.—The term ‘qualified (c) EFFECTIVE DATE.—The amendments tion 4051’’ and inserting ‘‘chapter 31 or 32’’. adoption expenses’ shall not include any ex- made by this section shall apply to taxable (4) Section 7012 is amended— penses in connection with the adoption by an years beginning after December 31, 1995. (A) by striking ‘‘production or importation individual of a child who is the child of such Subtitle E—Social Security Earnings Test of gasoline’’ in paragraph (3) and inserting individual’s spouse. SEC. 6501. ADJUSTMENTS IN MONTHLY EXEMPT ‘‘taxes on gasoline and diesel fuel’’, and ‘‘(2) ELIGIBLE CHILD.—The term ‘eligible AMOUNT FOR PURPOSES OF THE SO- child’ means any individual— CIAL SECURITY EARNINGS TEST. (B) by striking paragraph (4) and redesig- nating paragraphs (5) and (6) as paragraphs ‘‘(A) who has not attained age 18 as of the (a) INCREASE IN MONTHLY EXEMPT AMOUNT time of the adoption, or FOR INDIVIDUALS WHO HAVE ATTAINED RE- (4) and (5), respectively. ‘‘(B) who is physically or mentally incapa- TIREMENT AGE.—Section 203(f)(8)(D) of the (5) Subsection (c) of section 5041 is amend- ble of caring for himself. Social Security Act (42 U.S.C. 403(f)(8)(D)) is ed by striking paragraph (6) and by inserting ‘‘(3) CHILD WITH SPECIAL NEEDS.—The term amended to read as follows: the following new paragraphs: ‘child with special needs’ means any child ‘‘(D)(i) Notwithstanding any other provi- ‘‘(6) CREDIT FOR TRANSFEREE IN BOND.—If— if— sion of this subsection, the exempt amount ‘‘(A) wine produced by any person would be ‘‘(A) a State has determined that the child which is applicable to an individual who has eligible for any credit under paragraph (1) if cannot or should not be returned to the attained retirement age (as defined in sec- removed by such person during the calendar home of his parents, and tion 216(1)) before the close of the taxable year, ‘‘(B) such State has determined that there year involved shall be— ‘‘(B) wine produced by such person is re- exists with respect to the child a specific fac- ‘‘(I) for the taxable year beginning after moved during such calendar year by any tor or condition (such as his ethnic back- 1995 and before 1997, $1,250.00, other person (hereafter in this paragraph re- ground, age, or membership in a minority or ‘‘(II) for the taxable year beginning after ferred to as the ‘transferee’) to whom such sibling group, or the presence of factors such 1996 and before 1998, $1,583.331⁄3, wine was transferred in bond and who is lia- as medical conditions or physical, mental, or ‘‘(III) for the taxable year beginning after ble for the tax imposed by this section with emotional handicaps) because of which it is 1997 and before 1999, $1,916.662⁄3, respect to such wine, and reasonable to conclude that such child can- ‘‘(IV) for the taxable year beginning after ‘‘(C) such producer holds title to such wine not be placed with adoptive parents without 1998 and before 2000, $2,250.00, and at the time of its removal and provides to providing adoption assistance. ‘‘(V) for the taxable year beginning after the transferee such information as is nec- ‘‘(d) MARRIED COUPLES MUST FILE JOINT 1999 and before 2001, $2,500.00. essary to properly determine the transferee’s RETURNS, ETC.—Rules similar to the rules of ‘‘(ii) For purposes of subparagraph credit under this paragraph, paragraphs (2), (3), and (4) of section 21(e) (B)(ii)(II), the increase in the exempt amount provided under clause (i)(V) shall be deemed then, the transferee (and not the producer) shall apply for purposes of this section.’’ shall be allowed the credit under paragraph (b) CONFORMING AMENDMENT.—The table of to have resulted from a determination which shall be deemed to have been made under (1) which would be allowed to the producer if sections for subpart A of part IV of sub- the wine removed by the transferee had been chapter A of chapter 1 is amended by insert- subparagraph (A) in 1999.’’. (b) CONFORMING AMENDMENT.—The second removed by the producer on that date. ing after the item relating to section 25 the ‘‘(7) REGULATIONS.—The Secretary may following new item: sentence of section 223(d)(4) of such Act (42 U.S.C. 423(d)(4)) is amended by striking ‘‘the prescribe such regulations as may be nec- ‘‘Sec. 25A. Adoption expenses.’’. exempt amount under section 203(f)(8) which essary to carry out the purposes of this sub- section, including regulations— (c) EFFECTIVE DATE.—The amendments is applicable to individuals described in sub- ‘‘(A) to prevent the credit provided in this made by this section shall apply to taxable paragraph (D) thereof’’ and inserting the fol- subsection from benefiting any person who years beginning after December 31, 1995. lowing: ‘‘an amount equal to the exempt amount which would have been applicable produces more than 250,000 wine gallons dur- SEC. 6402. CREDIT FOR TAXPAYERS WITH CER- ing a calendar year, and TAIN PERSONS REQUIRING CUSTO- under section 203(f)(8), to individuals de- DIAL CARE IN THEIR HOUSEHOLDS. scribed in subparagraph (D) thereof, if sec- ‘‘(B) to assure proper reduction of such (a) IN GENERAL.—Subpart A of part IV of tion 6501 of the Contract With America Tax credit for persons producing more than subchapter A of chapter 1 is amended by in- Relief Act of 1995 had not been enacted’’. 150,000 wine gallons of wine during a calendar serting after section 25A the following new (c) EFFECTIVE DATE.—The amendments year.’’ section: made by this section shall apply with respect (6) Paragraph (3) of section 5061(b) is to taxable years beginning after 1995. amended to read as follows: ‘‘SEC. 25B. CREDIT FOR TAXPAYERS WITH CER- TAIN PERSONS REQUIRING CUSTO- Subtitle F—Technical Corrections ‘‘(3) section 5041(f),’’. DIAL CARE IN THEIR HOUSEHOLDS. SEC. 6601. COORDINATION WITH OTHER SUB- (7) Section 5354 is amended by inserting ‘‘(a) ALLOWANCE OF CREDIT.—In the case of TITLES. ‘‘(taking into account the appropriate an individual who maintains a household For purposes of applying the amendments amount of credit with respect to such wine which includes as a member one or more made by any subtitle of this title other than under section 5041(c))’’ after ‘‘any one time’’. qualified persons, there shall be allowed as a this subtitle, the provisions of this subtitle (c) AMENDMENTS RELATED TO SUBTITLE C.— credit against the tax imposed by this chap- shall be treated as having been enacted im- (1) Paragraph (4) of section 56(g) is amend- ter for the taxable year an amount equal to mediately before the provisions of such other ed by redesignating subparagraphs (I) and (J) $500 for each such person. subtitles. as subparagraphs (H) and (I), respectively. ‘‘(b) QUALIFIED PERSON.—For purposes of SEC. 6602. AMENDMENTS RELATED TO REVENUE (2) Subparagraph (B) of section 6724(d)(1) is this section, the term ‘qualified person’ RECONCILIATION ACT OF 1990. amended— means any individual— (a) AMENDMENTS RELATED TO SUBTITLE A.— (A) by striking ‘‘or’’ at the end of clause ‘‘(1) who is a father or mother of the tax- (1) Subparagraph (B) of section 59(j)(3) is (xii), and payer, his spouse, or his former spouse or amended by striking ‘‘section 1(i)(3)(B)’’ and (B) by striking the period at the end of who is an ancestor of such a father or moth- inserting ‘‘section 1(g)(3)(B)’’. clause (xiii) and inserting ‘‘, or’’. er, (2) Clause (i) of section 151(d)(3)(C) is (3) Subsection (g) of section 6302 is amend- ‘‘(2) who is physically or mentally incapa- amended by striking ‘‘joint of a return’’ and ed by inserting ‘‘, 22,’’ after ‘‘chapters 21’’. ble of caring for himself, inserting ‘‘joint return’’. (4) The earnings and profits of any insur- ‘‘(3) who has as his principal place of abode (b) AMENDMENTS RELATED TO SUBTITLE B.— ance company to which section 11305(c)(3) of for more than half of the taxable year the (1) Paragraph (1) of section 11212(e) of the the Revenue Reconciliation Act of 1990 ap- home of the taxpayer, and Revenue Reconciliation Act of 1990 is amend- plies shall be determined without regard to April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4285

any deduction allowed under such section; ‘‘(C) VALUATION OF QUALIFIED PAYMENTS ‘‘(C) TRANSFER TO TRANSFERORS.—In the except that, for purposes of applying sections WHERE NO LIQUIDATION, ETC. RIGHTS.—In the case of a taxable event described in para- 56 and 902, and subpart F of part III of sub- case of an applicable retained interest which graph (3)(A)(ii) involving a transfer of an ap- chapter N of chapter 1 of the Internal Reve- is described in subparagraph (B)(i) but not plicable retained interest from an applicable nue Code of 1986, such deduction shall be subparagraph (B)(ii), the value of the dis- family member to a transferor, this sub- taken into account. tribution right shall be determined without section shall continue to apply to the trans- (5) Subparagraph (D) of section 6038A(e)(4) regard to this section.’’ feror during any period the transferor holds is amended— (B) Section 2701(a)(3)(B) is amended by in- such interest.’’ (A) by striking ‘‘any transaction to which serting ‘‘CERTAIN’’ before ‘‘QUALIFIED’’ in the (10) Section 2701(e)(6) is amended by insert- the summons relates’’ and inserting ‘‘any af- heading thereof. ing ‘‘or to reflect the application of sub- fected taxable year’’, and (C) Sections 2701 (d)(1) and (d)(4) are each section (d)’’ before the period at the end (B) by adding at the end thereof the follow- amended by striking ‘‘subsection (a)(3)(B)’’ thereof. ing new sentence: ‘‘For purposes of this sub- and inserting ‘‘subsection (a)(3) (B) or (C)’’. (11)(A) Section 2702(a)(3)(A) is amended— paragraph, the term ‘affected taxable year’ (2) Clause (i) of section 2701(a)(4)(B) is (i) by striking ‘‘to the extent’’ and insert- means any taxable year if the determination amended by inserting ‘‘(or, to the extent pro- ing ‘‘if’’ in clause (i), of the amount of tax imposed for such tax- vided in regulations, the rights as to either (ii) by striking ‘‘or’’ at the end of clause able year is affected by the treatment of the income or capital)’’ after ‘‘income and cap- (i), transaction to which the summons relates.’’. ital’’. (iii) by striking the period at the end of (6) Subparagraph (A) of section 6621(c)(2) is (3)(A) Section 2701(b)(2) is amended by add- clause (ii) and inserting ‘‘, or’’, and amended by adding at the end thereof the ing at the end thereof the following new sub- (iv) by adding at the end thereof the fol- following new flush sentence: paragraph: lowing new clause: ‘‘The preceding sentence shall be applied ‘‘(C) APPLICABLE FAMILY MEMBER.—For pur- ‘‘(iii) to the extent that regulations pro- without regard to any such letter or notice poses of this subsection, the term ‘applicable vide that such transfer is not inconsistent which is withdrawn by the Secretary.’’. with the purposes of this section.’’ (7) Clause (i) of section 6621(c)(2)(B) is family member’ includes any lineal descend- (B)(i) Section 2702(a)(3) is amended by amended by striking ‘‘this subtitle’’ and in- ant of any parent of the transferor or the striking ‘‘incomplete transfer’’ each place it serting ‘‘this title’’. transferor’s spouse.’’ appears and inserting ‘‘incomplete gift’’. (d) AMENDMENTS RELATED TO SUBTITLE D.— (B) Section 2701(e)(3) is amended— (ii) The heading for section 2702(a)(3)(B) is (1) Notwithstanding section 11402(c) of the (i) by striking subparagraph (B), and amended by striking ‘‘INCOMPLETE TRANS- Revenue Reconciliation Act of 1990, the (ii) by striking so much of paragraph (3) as FER’’ and inserting ‘‘INCOMPLETE GIFT’’. amendment made by section 11402(b)(1) of precedes ‘‘shall be treated as holding’’ and (g) AMENDMENTS RELATED TO SUBTITLE G.— such Act shall apply to taxable years ending inserting: (1)(A) Subsection (a) of section 1248 is after December 31, 1989. ‘‘(3) ATTRIBUTION OF INDIRECT HOLDINGS AND (2) Clause (ii) of section 143(m)(4)(C) is TRANSFERS.—An individual’’. amended— amended— (C) Section 2704(c)(3) is amended by strik- (i) by striking ‘‘, or if a United States per- (A) by striking ‘‘any month of the 10-year ing ‘‘section 2701(e)(3)(A)’’ and inserting son receives a distribution from a foreign period’’ and inserting ‘‘any year of the 4-year ‘‘section 2701(e)(3)’’. corporation which, under section 302 or 331, period’’, (4) Clause (i) of section 2701(c)(1)(B) is is treated as an exchange of stock’’ in para- (B) by striking ‘‘succeeding months’’ and amended to read as follows: graph (1), and inserting ‘‘succeeding years’’, and ‘‘(i) a right to distributions with respect to (ii) by adding at the end thereof the follow- (C) by striking ‘‘over the remainder of such any interest which is junior to the rights of ing new sentence: ‘‘For purposes of this sec- period (or, if lesser, 5 years)’’ and inserting the transferred interest,’’. tion, a United States person shall be treated ‘‘to zero over the succeeding 5 years’’. (5)(A) Clause (i) of section 2701(c)(3)(C) is as having sold or exchanged any stock if, (e) AMENDMENTS RELATED TO SUBTITLE E.— amended to read as follows: under any provision of this subtitle, such (1)(A) Clause (ii) of section 56(d)(1)(B) is ‘‘(i) IN GENERAL.—Payments under any in- person is treated as realizing gain from the amended to read as follows: terest held by a transferor which (without sale or exchange of such stock.’’. ‘‘(ii) appropriate adjustments in the appli- regard to this subparagraph) are qualified (B) Paragraph (1) of section 1248(e) is cation of section 172(b)(2) shall be made to payments shall be treated as qualified pay- amended by striking ‘‘, or receives a dis- take into account the limitation of subpara- ments unless the transferor elects not to tribution from a domestic corporation graph (A).’’ treat such payments as qualified payments. which, under section 302 or 331, is treated as (B) For purposes of applying sections Payments described in the preceding sen- an exchange of stock’’. 56(g)(1) and 56(g)(3) of the Internal Revenue tence which are held by an applicable family (C) Subparagraph (B) of section 1248(f)(1) is Code of 1986 with respect to taxable years be- member shall be treated as qualified pay- amended by striking ‘‘or 361(c)(1)’’ and in- ginning in 1991 and 1992, the reference in ments only if such member elects to treat serting ‘‘355(c)(1), or 361(c)(1)’’. such sections to the alternative tax net oper- such payments as qualified payments.’’ (D) Paragraph (1) of section 1248(i) is ating loss deduction shall be treated as in- (B) The first sentence of section amended to read as follows: cluding a reference to the deduction under 2701(c)(3)(C)(ii) is amended to read as follows: ‘‘(1) IN GENERAL.—If any shareholder of a section 56(h) of such Code as in effect before ‘‘A transferor or applicable family member 10-percent corporate shareholder of a foreign the amendments made by section 1915 of the holding any distribution right which (with- corporation exchanges stock of the 10-per- Energy Policy Act of 1992. out regard to this subparagraph) is not a cent corporate shareholder for stock of the (2) Clause (i) of section 613A(c)(3)(A) is qualified payment may elect to treat such foreign corporation, such 10-percent cor- amended by striking ‘‘the table contained right as a qualified payment, to be paid in porate shareholder shall recognize gain in in’’. the amounts and at the times specified in the same manner as if the stock of the for- (3) Section 6501 is amended— such election.’’. eign corporation received in such exchange (A) by striking subsection (m) (relating to (C) The time for making an election under had been— deficiency attributable to election under sec- the second sentence of section 2701(c)(3)(C)(i) ‘‘(A) issued to the 10-percent corporate tion 44B) and by redesignating subsections of the Internal Revenue Code of 1986 (as shareholder, and (n) and (o) as subsections (m) and (n), respec- amended by subparagraph (A)) shall not ex- ‘‘(B) then distributed by the 10-percent cor- tively, and pire before the due date (including exten- porate shareholder to such shareholder in re- (B) by striking ‘‘section 40(f) or 51(j)’’ in sions) for filing the transferor’s return of the demption or liquidation (whichever is appro- subsection (m) (as redesignated by subpara- tax imposed by section 2501 of such Code for priate). graph (A)) and inserting ‘‘section 40(f), 43, or the first calendar year ending after the date The amount of gain recognized by such 10- 51(j)’’. of enactment. percent corporate shareholder under the pre- (4) Subparagraph (C) of section 38(c)(2) (as (6) Section 2701(d)(3)(A)(iii) is amended by ceding sentence shall not exceed the amount in effect on the day before the date of the en- striking ‘‘the period ending on the date of’’. treated as a dividend under this section.’’ actment of the Revenue Reconciliation Act (7) Subclause (I) of section 2701(d)(3)(B)(ii) (2) Section 897 is amended by striking sub- of 1990) is amended by inserting before the is amended by inserting ‘‘or the exclusion section (f). period at the end of the first sentence the under section 2503(b),’’ after ‘‘section 2523,’’. (3) Paragraph (13) of section 4975(d) is following: ‘‘and without regard to the deduc- (8) Section 2701(e)(5) is amended— amended by striking ‘‘section 408(b)’’ and in- tion under section 56(h)’’. (A) by striking ‘‘such contribution to cap- serting ‘‘section 408(b)(12)’’. (5) The amendment made by section ital or such redemption, recapitalization, or (4) Clause (iii) of section 56(g)(4)(D) is 1913(b)(2)(C)(i) of the Energy Policy Act of other change’’ in subparagraph (A) and in- amended by inserting ‘‘, but only with re- 1992 shall apply to taxable years beginning serting ‘‘such transaction’’, and spect to taxable years beginning after De- after December 31, 1990. (B) by striking ‘‘the transfer’’ in subpara- cember 31, 1989’’ before the period at the end (f) AMENDMENTS RELATED TO SUBTITLE F.— graph (B) and inserting ‘‘such transaction’’. thereof. (1)(A) Section 2701(a)(3) is amended by add- (9) Section 2701(d)(4) is amended by adding (5)(A) Paragraph (11) of section 11701(a) of ing at the end thereof the following new sub- at the end thereof the following new sub- the Revenue Reconciliation Act of 1990 (and paragraph: paragraph: the amendment made by such paragraph) are H 4286 CONGRESSIONAL RECORD — HOUSE April 5, 1995 hereby repealed, and section 7108(r)(2) of the struck ‘‘Section 422A(c)(2)’’ and inserted the end thereof the following: ‘‘, determined Revenue Reconciliation Act of 1989 shall be ‘‘Section 422(c)(2)’’. by substituting ‘calendar year 1989’ for ‘cal- applied as if such paragraph (and amend- (13) Subparagraph (B) of section 424(c)(3) is endar year 1992’ in subparagraph (B) there- ment) had never been enacted. amended by striking ‘‘a qualified stock op- of’’. (B) Subparagraph (A) shall not apply to tion, an incentive stock option, an option (e) AMENDMENTS RELATED TO SECTION any building if the owner of such building es- granted under an employee stock purchase 13203.—Subsection (a) of section 59 is amend- tablishes to the satisfaction of the Secretary plan, or a restricted stock option’’ and in- ed— of the Treasury or his delegate that such serting ‘‘an incentive stock option or an op- (1) by striking ‘‘the amount determined owner reasonably relied on the amendment tion granted under an employee stock pur- under section 55(b)(1)(A)’’ in paragraph (1)(A) made by such paragraph (11). chase plan’’. and (2)(A)(i) and inserting ‘‘the pre-credit (h) AMENDMENTS RELATED TO SUBTITLE H.— (14) Subparagraph (E) of section 1367(a)(2) tentative minimum tax’’, (1)(A) Clause (vi) of section 168(e)(3)(B) is is amended by striking ‘‘section (2) by striking ‘‘specified in section amended by striking ‘‘or’’ at the end of 613A(c)(13)(B)’’ and inserting ‘‘section 55(b)(1)(A)’’ in paragraph (1)(C) and inserting subclause (I), by striking the period at the 613A(c)(11)(B)’’. ‘‘specified in subparagraph (A)(i) or (B)(i) of end of subclause (II) and inserting ‘‘, or’’, and (15) Subparagraph (B) of section 460(e)(6) is section 55(b)(1) (whichever applies)’’, by adding at the end thereof the following amended by striking ‘‘section 167(k)’’ and in- (3) by striking ‘‘which would be determined new subclause: serting ‘‘section 168(e)(2)(A)(ii)’’. under section 55(b)(1)(A)’’ in paragraph ‘‘(III) is described in section 48(l)(3)(A)(ix) (16) Subparagraph (C) of section 172(h)(4) is (2)(A)(ii) and inserting ‘‘which would be the (as in effect on the day before the date of the amended by striking ‘‘subsection (b)(1)(M)’’ pre-credit tentative minimum tax’’, and enactment of the Revenue Reconciliation and inserting ‘‘subsection (b)(1)(E)’’. (4) by adding at the end thereof the follow- Act of 1990).’’ (17) Section 6503 is amended— ing new paragraph: (B) Subparagraph (K) of section 168(g)(4) is (A) by redesignating the subsection relat- ‘‘(3) PRE-CREDIT TENTATIVE MINIMUM TAX.— amended by striking ‘‘section 48(a)(3)(A)(iii)’’ ing to extension in case of certain sum- For purposes of this subsection, the term and inserting ‘‘section 48(l)(3)(A)(ix) (as in ef- monses as subsection (j), and ‘pre-credit tentative minimum tax’ means— fect on the day before the date of the enact- (B) by redesignating the subsection relat- ment of the Revenue Reconciliation Act of ‘‘(A) in the case of a taxpayer other than a ing to cross references as subsection (k). corporation, the amount determined under 1990)’’. (18) Paragraph (4) of section 1250(e) is here- (2) Clause (ii) of section 172(b)(1)(E) is the first sentence of section 55(b)(1)(A)(i), or by repealed. ‘‘(B) in the case of a corporation, the amended by striking ‘‘subsection (m)’’ and (i) EFFECTIVE DATE.—Except as otherwise inserting ‘‘subsection (h)’’. amount determined under section expressly provided— 55(b)(1)(B)(i).’’ (3) Sections 805(a)(4)(E), 832(b)(5)(C)(ii)(II), (1) the amendments made by this section (f) AMENDMENT RELATED TO SECTION and 832(b)(5)(D)(ii)(II) are each amended by shall be treated as amendments to the Inter- striking ‘‘243(b)(5)’’ and inserting ‘‘243(b)(2)’’. 13221.—Sections 1201(a) and 1561(a) are each nal Revenue Code of 1986 as amended by the amended by striking ‘‘last sentence’’ each (4) Subparagraph (A) of section 243(b)(3) is Revenue Reconciliation Act of 1993; and amended by inserting ‘‘of’’ after ‘‘In the place it appears and inserting ‘‘last 2 sen- (2) any amendment made by this section tences’’. case’’. shall apply to periods before the date of the (5) The subsection heading for subsection (g) AMENDMENTS RELATED TO SECTION enactment of this section in the same man- (a) of section 280F is amended by striking 13222.— ner as if it had been included in the provision ‘‘INVESTMENT TAX CREDIT AND’’. (1) Subparagraph (B) of section 6033(e)(1) is of the Revenue Reconciliation Act of 1990 to (6) Clause (i) of section 1504(c)(2)(B) is amended by adding at the end thereof the which such amendment relates. amended by inserting ‘‘section’’ before following new clause: SEC. 6603. AMENDMENTS RELATED TO REVENUE ‘‘243(b)(2)’’. ‘‘(iii) COORDINATION WITH SECTION 527(f).— RECONCILIATION ACT OF 1993. (7) Paragraph (3) of section 341(f) is amend- This subsection shall not apply to any (a) AMENDMENT RELATED TO SECTION ed by striking ‘‘351, 361, 371(a), or 374(a)’’ and amount on which tax is imposed by reason of 13114.—Paragraph (2) of section 1044(c) is inserting ‘‘351, or 361’’. section 527(f).’’. amended to read as follows: (8) Paragraph (2) of section 243(b) is amend- (2) Clause (i) of section 6033(e)(1)(B) is ‘‘(2) PURCHASE.—The taxpayer shall be con- ed to read as follows: amended by striking ‘‘this subtitle’’ and in- sidered to have purchased any property if, ‘‘(2) AFFILIATED GROUP.—For purposes of serting ‘‘section 501’’. but for subsection (d), the unadjusted basis this subsection: (h) AMENDMENT RELATED TO SECTION of such property would be its cost within the ‘‘(A) IN GENERAL.—The term ‘affiliated 13225.—Paragraph (3) of section 6655(g) is meaning of section 1012.’’ group’ has the meaning given such term by amended by striking all that follows ‘‘ ‘3rd section 1504(b), except that for such purposes (b) AMENDMENTS RELATED TO SECTION 13142.— month’ ’’ in the sentence following subpara- sections 1504(b)(2), 1504(b)(4), and 1504(c) shall graph (C) and inserting ‘‘, subsection not apply. (1) Subparagraph (B) of section 13142(b)(6) of the Revenue Reconciliation Act of 1993 is (e)(2)(A) shall be applied by substituting ‘2 ‘‘(B) GROUP MUST BE CONSISTENT IN FOREIGN months’ for ‘3 months’ in clause (i)(I), the TAX TREATMENT.—The requirements of para- amended to read as follows: ‘‘(B) FULL-TIME STUDENTS, WAIVER AUTHOR- election under clause (i) of subsection graph (1)(A) shall not be treated as being met (e)(2)(C) may be made separately for each in- with respect to any dividend received by a ITY, AND PROHIBITED DISCRIMINATION.—The amendments made by paragraphs (2), (3), and stallment, and clause (ii) of subsection corporation if, for any taxable year which in- (e)(2)(C) shall not apply.’’. cludes the day on which such dividend is re- (4) shall take effect on the date of the enact- (i) AMENDMENTS RELATED TO SECTION ceived— ment of this Act.’’ 13231.— ‘‘(i) 1 or more members of the affiliated (2) Subparagraph (C) of section 13142(b)(6) (1) Subparagraph (G) of section 904(d)(3) is group referred to in paragraph (1)(A) choose of such Act is amended by striking ‘‘para- amended by striking ‘‘section 951(a)(1)(B)’’ to any extent to take the benefits of section graph (2)’’ and inserting ‘‘paragraph (5)’’. 901, and (c) AMENDMENT RELATED TO SECTION and inserting ‘‘subparagraph (B) or (C) of ‘‘(ii) 1 or more other members of such 13161.— section 951(a)(1)’’. group claim to any extent a deduction for (1) IN GENERAL.—Subsection (e) of section (2) Paragraph (1) of section 956A(b) is taxes otherwise creditable under section 4001 (relating to inflation adjustment) is amended to read as follows: 901.’’ amended to read as follows: ‘‘(1) the amount (not including a deficit) (9) The amendment made by section ‘‘(e) INFLATION ADJUSTMENT.— referred to in section 316(a)(1) to the extent 11813(b)(17) of the Revenue Reconciliation ‘‘(1) IN GENERAL.—The $30,000 amount in such amount was accumulated in prior tax- Act of 1990 shall be applied as if the material subsection (a) and section 4003(a) shall be in- able years beginning after September 30, stricken by such amendment included the creased by an amount equal to— 1993, and’’. closing parenthesis after ‘‘section 48(a)(5)’’. ‘‘(A) $30,000, multiplied by (3) Subsection (f) of section 956A is amend- (10) Paragraph (1) of section 179(d) is ‘‘(B) the cost-of-living adjustment under ed by inserting before the period at the end amended— section 1(f)(3) for the calendar year in which thereof: ‘‘and regulations coordinating the (A) by striking ‘‘in a trade or business’’ the vehicle is sold, determined by substitut- provisions of subsections (c)(3)(A) and (d)’’. and inserting ‘‘a trade or business’’, and ing ‘calendar year 1990’ for ‘calendar year (4) Subsection (b) of section 958 is amended (B) by adding at the end thereof the follow- 1992’ in subparagraph (B) thereof. by striking ‘‘956(b)(2)’’ each place it appears ing new sentence: ‘‘Such term shall not in- ‘‘(2) ROUNDING.—If any amount as adjusted and inserting ‘‘956(c)(2)’’. clude any property described in section 50(b) under paragraph (1) is not a multiple of (5)(A) Subparagraph (A) of section and shall not include air conditioning or $2,000, such amount shall be rounded to the 1297(d)(2) is amended by striking ‘‘The ad- heating units and horses.’’ next lowest multiple of $2,000.’’ justed basis of any asset’’ and inserting ‘‘The (11) Subparagraph (E) of section 50(a)(2) is (2) EFFECTIVE DATE.—The amendment amount taken into account under section amended by striking ‘‘section 48(a)(5)(A)’’ made by paragraph (1) shall take effect on 1296(a)(2) with respect to any asset’’. and inserting ‘‘section 48(a)(5)’’. the date of the enactment of this Act. (B) The paragraph heading of paragraph (2) (12) The amendment made by section (d) AMENDMENT RELATED TO SECTION of section 1297(d) is amended to read as fol- 11801(c)(9)(G)(ii) of the Revenue Reconcili- 13201.—Clause (ii) of section 135(b)(2)(B) is lows: ation Act of 1990 shall be applied as if it amended by inserting before the period at ‘‘(2) AMOUNT TAKEN INTO ACCOUNT.—’’. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4287

(6) Subsection (e) of section 1297 is amend- ATION ACT OF 1990.—Except as otherwise ex- (A) IN GENERAL.—Subparagraph (B) of sec- ed by inserting ‘‘For purposes of this part— pressly provided, whenever in title XII of the tion 163(j)(1) is amended by inserting before ’’ after the subsection heading. Omnibus Budget Reconciliation Act of 1990 the period at the end thereof the following: (j) AMENDMENT RELATED TO SECTION an amendment or repeal is expressed in ‘‘(and clause (ii) of paragraph (2)(A) shall not 13241.—Subparagraph (B) of section 40(e)(1) is terms of an amendment to, or repeal of, a apply for purposes of applying this sub- amended to read as follows: section or other provision, the reference section to the amount so treated)’’. ‘‘(B) for any period before January 1, 2001, shall be considered to be made to a section (B) EFFECTIVE DATE.—The amendment during which the rates of tax under section or other provision of the Internal Revenue made by subparagraph (A) shall apply as if 4081(a)(2)(A) are 4.3 cents per gallon.’’ Code of 1986. included in the amendments made by section (k) AMENDMENT RELATED TO SECTION (b) TREATMENT OF CERTAIN AMOUNTS UNDER 7210(a) of the Revenue Reconciliation Act of 13261.—Clause (iii) of section 13261(g)(2)(A) of HEDGE BOND RULES.— 1989. the Revenue Reconciliation Act of 1993 is (1) Clause (iii) of section 149(g)(3)(B) is (3) TREATMENT OF INTEREST ALLOCABLE TO amended by striking ‘‘by the taxpayer’’ and amended to read as follows: EFFECTIVELY CONNECTED INCOME.— inserting ‘‘by the taxpayer or a related per- ‘‘(iii) AMOUNTS HELD PENDING REINVEST- (A) IN GENERAL.— son’’. MENT OR REDEMPTION.—Amounts held for not (i) Subparagraph (B) of section 884(f)(1) is (l) AMENDMENT RELATED TO SECTION more than 30 days pending reinvestment or amended by striking ‘‘to the extent’’ and all 13301.—Subparagraph (B) of section bond redemption shall be treated as invested that follows down through ‘‘subparagraph 1397B(d)(5) is amended by striking ‘‘preced- in bonds described in clause (i).’’ (A)’’ and inserting ‘‘to the extent that the al- ing’’. (2) The amendment made by paragraph (1) locable interest exceeds the interest de- (m) CLERICAL AMENDMENTS.— shall take effect as if included in the amend- scribed in subparagraph (A)’’. (1) Subsection (d) of section 39 is amend- ments made by section 7651 of the Omnibus (ii) The second sentence of section 884(f)(1) ed— Budget Reconciliation Act of 1989. is amended by striking ‘‘reasonably ex- (A) by striking ‘‘45’’ in the heading of para- (c) TREATMENT OF CERTAIN DISTRIBUTIONS pected’’ and all that follows down through graph (5) and inserting ‘‘45A’’, and UNDER SECTION 1445.— the period at the end thereof and inserting (B) by striking ‘‘45’’ in the heading of para- (1) IN GENERAL.—Paragraph (3) of section ‘‘reasonably expected to be allocable inter- graph (6) and inserting ‘‘45B’’. 1445(e) is amended by adding at the end est.’’ (2) Subparagraph (A) of section 108(d)(9) is thereof the following new sentence: ‘‘Rules (iii) Paragraph (2) of section 884(f) is amended by striking ‘‘paragraph (3)(B)’’ and similar to the rules of the preceding provi- amended to read as follows: inserting ‘‘paragraph (3)(C)’’. sions of this paragraph shall apply in the ‘‘(2) ALLOCABLE INTEREST.—For purposes of (3) Subparagraph (C) of section 143(d)(2) is case of any distribution to which section 301 this subsection, the term ‘allocable interest’ amended by striking the period at the end applies and which is not made out of the means any interest which is allocable to in- thereof and inserting a comma. earnings and profits of such a domestic cor- come which is effectively connected (or (4) Clause (ii) of section 163(j)(6)(E) is poration.’’ treated as effectively connected) with the amended by striking ‘‘which is a’’ and insert- (2) EFFECTIVE DATE.—The amendment conduct of a trade or business in the United ing ‘‘which is’’. made by paragraph (1) shall apply to dis- States.’’ (5) Subparagraph (A) of section 1017(b)(4) is tributions after the date of the enactment of (B) EFFECTIVE DATE.—The amendments amended by striking ‘‘subsection (b)(2)(D)’’ this Act. made by subparagraph (A) shall take effect and inserting ‘‘subsection (b)(2)(E)’’. (d) TREATMENT OF CERTAIN CREDITS UNDER as if included in the amendments made by (6) So much of section 1245(a)(3) as precedes SECTION 469.— section 1241(a) of the Tax Reform Act of 1986. subparagraph (A) thereof is amended to read (1) IN GENERAL.—Subparagraph (B) of sec- (4) CLARIFICATION OF SOURCE RULE.— as follows: tion 469(c)(3) is amended by adding at the end (A) IN GENERAL.—Paragraph (2) of section ‘‘(3) SECTION 1245 PROPERTY.—For purposes thereof the following new sentence: ‘‘If the 865(b) is amended by striking ‘‘863(b)’’ and in- of this section, the term ‘section 1245 prop- preceding sentence applies to the net income serting ‘‘863’’. erty’ means any property which is or has from any property for any taxable year, any (B) EFFECTIVE DATE.—The amendment been property of a character subject to the credits allowable under subpart B (other made by subparagraph (A) shall take effect allowance for depreciation provided in sec- than section 27(a)) or D of part IV of sub- as if included in the amendments made by tion 167 and is either—’’. chapter A for such taxable year which are at- section 1211 of the Tax Reform Act of 1986. (7) Paragraph (2) of section 1394(e) is tributable to such property shall be treated (5) REPEAL OF OBSOLETE PROVISIONS.— amended— as credits not from a passive activity to the (A) Paragraph (1) of section 6038(a) is (A) by striking ‘‘(i)’’ and inserting ‘‘(A)’’, extent the amount of such credits does not amended by striking ‘‘, and’’ at the end of and exceed the regular tax liability of the tax- subparagraph (E) and inserting a period, and (B) by striking ‘‘(ii)’’ and inserting ‘‘(B)’’. payer for the taxable year which is allocable by striking subparagraph (F). (8) Subsection (m) of section 6501 (as redes- to such net income.’’ (B) Subsection (b) of section 6038A is ignated by section 6602) is amended by strik- (2) EFFECTIVE DATE.—The amendment amended by adding ‘‘and’’ at the end of para- ing ‘‘or 51(j)’’ and inserting ‘‘45B, or 51(j)’’. made by paragraph (1) shall apply to taxable graph (2), by striking ‘‘, and’’ at the end of (9)(A) The section 6714 added by section years beginning after December 31, 1986. paragraph (3) and inserting a period, and by 13242(b)(1) of the Revenue Reconciliation Act (e) TREATMENT OF DISPOSITIONS UNDER striking paragraph (4). of 1993 is hereby redesignated as section 6715. PASSIVE LOSS RULES.— (g) TREATMENT OF ASSIGNMENT OF INTEREST (B) The table of sections for part I of sub- (1) IN GENERAL.—Subparagraph (A) of sec- IN CERTAIN BOND-FINANCED FACILITIES.— chapter B of chapter 68 is amended by strik- tion 469(g)(1) is amended to read as follows: (1) IN GENERAL.—Subparagraph (A) of sec- ing ‘‘6714’’ in the item added by such section ‘‘(A) IN GENERAL.—If all gain or loss real- tion 1317(3) of the Tax Reform Act of 1986 is 13242(b)(2) of such Act and inserting ‘‘6715’’. ized on such disposition is recognized, the ex- amended by adding at the end thereof the (10) Paragraph (2) of section 9502(b) is cess of— following new sentence: ‘‘A facility shall not amended by inserting ‘‘and before’’ after ‘‘(i) any loss from such activity for such fail to be treated as described in this sub- ‘‘1982,’’. taxable year (determined after the applica- paragraph by reason of an assignment (or an (11) Subsection (a)(3) of section 13206 of the tion of subsection (b)), over agreement to an assignment) by the govern- Revenue Reconciliation Act of 1993 is amend- ‘‘(ii) any net income or gain for such tax- mental unit on whose behalf the bonds are ed by striking ‘‘this section’’ and inserting able year from all other passive activities issued of any part of its interest in the prop- ‘‘this subsection’’. (determined after the application of sub- erty financed by such bonds to another gov- (12) Paragraph (1) of section 13215(c) of the section (b)), ernmental unit.’’ Revenue Reconciliation Act of 1993 is amend- shall be treated as a loss which is not from (2) EFFECTIVE DATE.—The amendment ed by striking ‘‘Public Law 92–21’’ and insert- a passive activity.’’ made by paragraph (1) shall take effect as if ing ‘‘Public Law 98–21’’. (2) EFFECTIVE DATE.—The amendment included in such section 1317 on the date of (13) Paragraph (2) of section 13311(e) of the made by paragraph (1) shall apply to taxable the enactment of the Tax Reform Act of 1986. Revenue Reconciliation Act of 1993 is amend- years beginning after December 31, 1986. (h) CLARIFICATION OF TREATMENT OF MEDI- ed by striking ‘‘section 1393(a)(3)’’ and insert- (f) MISCELLANEOUS AMENDMENTS TO FOR- CARE ENTITLEMENT UNDER COBRA PROVI- ing ‘‘section 1393(a)(2)’’. EIGN PROVISIONS.— SIONS.— (14) Subparagraph (B) of section 117(d)(2) is (1) COORDINATION OF UNIFIED ESTATE TAX (1) IN GENERAL.— amended by striking ‘‘section 132(f)’’ and in- CREDIT WITH TREATIES.—Subparagraph (A) of (A) Subclause (V) of section serting ‘‘section 132(h)’’. section 2102(c)(3) is amended by adding at the 4980B(f)(2)(B)(i) is amended to read as fol- (n) EFFECTIVE DATE.—Any amendment end thereof the following new sentence: ‘‘For lows: made by this section shall take effect as if purposes of the preceding sentence, property ‘‘(V) MEDICARE ENTITLEMENT FOLLOWED BY included in the provision of the Revenue shall not be treated as situated in the United QUALIFYING EVENT.—In the case of a qualify- Reconciliation Act of 1993 to which such States if such property is exempt from the ing event described in paragraph (3)(B) that amendment relates. tax imposed by this subchapter under any occurs less than 18 months after the date the SEC. 6604. MISCELLANEOUS PROVISIONS. treaty obligation of the United States.’’ covered employee became entitled to bene- (a) APPLICATION OF AMENDMENTS MADE BY (2) TREATMENT OF CERTAIN INTEREST PAID fits under title XVIII of the Social Security TITLE XII OF OMNIBUS BUDGET RECONCILI- TO RELATED PERSON.— Act, the period of coverage for qualified H 4288 CONGRESSIONAL RECORD — HOUSE April 5, 1995 beneficiaries other than the covered em- (1) Effective with respect to taxable years (A) by striking ‘‘$1,000’’ in clause (i) and in- ployee shall not terminate under this clause beginning after December 31, 1990, subclause serting ‘‘twice the amount described in para- before the close of the 36-month period be- (II) of section 53(d)(1)(B)(iv) is amended to graph (4)(A)(ii)(I)’’, and ginning on the date the covered employee be- read as follows: (B) by amending subclause (II) of clause (ii) came so entitled.’’ ‘‘(II) the adjusted net minimum tax for any to read as follows: (B) Clause (v) of section 602(2)(A) of the taxable year is the amount of the net mini- ‘‘(II) for each such child, 15 percent of the Employee Retirement Income Security Act mum tax for such year increased in the man- lesser of the amount described in paragraph of 1974 is amended to read as follows: ner provided in clause (iii).’’ (4)(A)(ii)(I) or the excess of the gross income ‘‘(v) MEDICARE ENTITLEMENT FOLLOWED BY (2) Subsection (g) of section 179A is redesig- of such child over the amount so described, QUALIFYING EVENT.—In the case of a qualify- nated as subsection (f). and’’. ing event described in section 603(2) that oc- (3) Subparagraph (E) of section 6724(d)(3) is (3) MINIMUM TAX.—Subparagraph (B) of sec- curs less than 18 months after the date the amended by striking ‘‘section 6109(f)’’ and in- tion 59(j)(1) is amended by striking ‘‘$1,000’’ covered employee became entitled to bene- serting ‘‘section 6109(h)’’. and inserting ‘‘twice the amount in effect for fits under title XVIII of the Social Security (4)(A) Subsection (d) of section 30 is the taxable year under section 63(c)(5)(A)’’. Act, the period of coverage for qualified amended— (4) EFFECTIVE DATE.—The amendments beneficiaries other than the covered em- (i) by inserting ‘‘(determined without re- made by this subsection shall apply to tax- ployee shall not terminate under this sub- gard to subsection (b)(3))’’ before the period able years beginning after December 31, 1994. paragraph before the close of the 36-month at the end of paragraph (1) thereof, and (o) MISCELLANEOUS CLERICAL AMEND- (ii) by adding at the end thereof the follow- period beginning on the date the covered em- MENTS.— ing new paragraph: ployee became so entitled.’’ (1) Subclause (II) of section 56(g)(4)(C)(ii) is ‘‘(4) ELECTION TO NOT TAKE CREDIT.—No (C) Clause (iv) of section 2202(2)(A) of the amended by striking ‘‘of the subclause’’ and credit shall be allowed under subsection (a) Public Health Service Act is amended to inserting ‘‘of subclause’’. for any vehicle if the taxpayer elects to not read as follows: (2) Paragraph (2) of section 72(m) is amend- have this section apply to such vehicle.’’ ‘‘(iv) MEDICARE ENTITLEMENT FOLLOWED BY ed by inserting ‘‘and’’ at the end of subpara- (B) Subsection (m) of section 6501 (as redes- graph (A), by striking subparagraph (B), and QUALIFYING EVENT.—In the case of a qualify- ignated by section 6602) is amended by strik- ing event described in section 2203(2) that oc- by redesignating subparagraph (C) as sub- ing ‘‘section 40(f)’’ and inserting ‘‘section paragraph (B). curs less than 18 months after the date the 30(d)(4), 40(f)’’. covered employee became entitled to bene- (3) Paragraph (2) of section 86(b) is amend- (5) Subclause (III) of section ed by striking ‘‘adusted’’ and inserting ‘‘ad- fits under title XVIII of the Social Security 501(c)(21)(D)(ii) is amended by striking ‘‘sec- Act, the period of coverage for qualified justed’’. tion 101(6)’’ and inserting ‘‘section 101(7)’’ (4)(A) The heading for section 112 is amend- beneficiaries other than the covered em- and by striking ‘‘1752(6)’’ and inserting ployee shall not terminate under this sub- ed by striking ‘‘combat pay’’ and inserting ‘‘1752(7)’’. ‘‘combat zone compensation’’. paragraph before the close of the 36-month (6) Paragraph (1) of section 1917(b) of the period beginning on the date the covered em- (B) The item relating to section 112 in the Energy Policy Act of 1992 shall be applied as table of sections for part III of subchapter B ployee became so entitled.’’ if ‘‘at a rate’’ appeared instead of ‘‘at the of chapter 1 is amended by striking ‘‘combat (2) EFFECTIVE DATE.—The amendments rate’’ in the material proposed to be strick- pay’’ and inserting ‘‘combat zone compensa- made by this subsection shall apply to plan en. tion’’. years beginning after December 31, 1989. (7) Paragraph (2) of section 1921(b) of the (C) Paragraph (1) of section 3401(a) is (i) TREATMENT OF CERTAIN REMIC INCLU- Energy Policy Act of 1992 shall be applied as amended by striking ‘‘combat pay’’ and in- SIONS.— if a comma appeared after ‘‘(2)’’ in the mate- serting ‘‘combat zone compensation’’. (1) IN GENERAL.—Subsection (a) of section rial proposed to be stricken. (5) Clause (i) of section 172(h)(3)(B) is 860E is amended by adding at the end thereof (8) Subsection (a) of section 1937 of the En- amended by striking the comma at the end the following new paragraph: ergy Policy Act of 1992 shall be applied as if thereof and inserting a period. ‘‘(6) COORDINATION WITH MINIMUM TAX.—For ‘‘Subpart B’’ appeared instead of ‘‘Subpart purposes of part VI of subchapter A of this C’’. (6) Clause (ii) of section 543(a)(2)(B) is amended by striking ‘‘section 563(c)’’ and in- chapter— (l) TREATMENT OF QUALIFIED FOOTBALL serting ‘‘section 563(d)’’. ‘‘(A) the reference in section 55(b)(2) to tax- COACHES PLAN.— (7) Paragraph (1) of section 958(a) is amend- able income shall be treated as a reference to (1) IN GENERAL.—Section 1022 of title II of taxable income determined without regard the Employee Retirement Income Security ed by striking ‘‘sections 955(b)(1) (A) and (B), to this subsection, Act of 1974 is amended by adding at the end 955(c)(2)(A)(ii), and 960(a)(1)’’ and inserting ‘‘(B) the alternative minimum taxable in- thereof the following new subsection: ‘‘section 960(a)(1)’’. (8) Subsection (g) of section 642 is amended come of any holder of a residual interest in ‘‘(l) QUALIFIED FOOTBALL COACHES PLAN.— a REMIC for any taxable year shall in no For purposes of determining the qualified by striking ‘‘under 2621(a)(2)’’ and inserting event be less than the excess inclusion for plan status of a qualified football coaches ‘‘under section 2621(a)(2)’’. such taxable year, and plan, section 3(37)(F) shall be treated as part (9) Section 1463 is amended by striking ‘‘(C) any excess inclusion shall be dis- of this title and a qualified football coaches ‘‘this subsection’’ and inserting ‘‘this sec- regarded for purposes of computing the alter- plan shall be treated as a multiemployer col- tion’’. native tax net operating loss deduction. lectively bargained plan for purposes of the (10) Subsection (k) of section 3306 is amend- The preceding sentence shall not apply to Internal Revenue Code of 1986.’’ ed by inserting a period at the end thereof. (11) The item relating to section 4472 in the any organization to which section 593 ap- (2) EFFECTIVE DATE.—The amendment plies, except to the extent provided in regu- made by paragraph (1) shall apply to years table of sections for subchapter B of chapter lations prescribed by the Secretary under beginning after the date of the enactment of 36 is amended by striking ‘‘and special paragraph (2).’’ Public Law 100–202. rules’’. (12) Paragraph (2) of section 4978(b) is (2) EFFECTIVE DATE.—The amendment (m) DETERMINATION OF UNRECOVERED IN- amended by striking the period at the end of made by paragraph (1) shall take effect as if VESTMENT IN ANNUITY CONTRACT.— subparagraph (A) and inserting a comma, included in the amendments made by section (1) IN GENERAL.—Subparagraph (A) of sec- 671 of the Tax Reform Act of 1986 unless the tion 72(b)(4) is amended by inserting ‘‘(deter- and by striking the period and quotation taxpayer elects to apply such amendment mined without regard to subsection (c)(2))’’ marks at the end of subparagraph (B) and in- only to taxable years beginning after the after ‘‘contract’’. serting a comma. (13) Paragraph (3) of section 5134(c) is date of the enactment of this Act. (2) EFFECTIVE DATE.—The amendment amended by striking ‘‘section 6662(a)’’ and (j) EXEMPTION FROM HARBOR MAINTENANCE made by paragraph (1) shall take effect as if inserting ‘‘section 6665(a)’’. TAX FOR CERTAIN PASSENGERS.— included in the amendments made by section (14) Paragraph (2) of section 5206(f) is (1) IN GENERAL.—Subparagraph (D) of sec- 1122(c) of the Tax Reform Act of 1986. amended by striking ‘‘section 5(e)’’ and in- tion 4462(b)(1) (relating to special rule for (n) MODIFICATIONS TO ELECTION TO INCLUDE serting ‘‘section 105(e)’’. Alaska, Hawaii, and possessions) is amended CHILD’S INCOME ON PARENT’S RETURN.— (15) Paragraph (1) of section 6050B(c) is by inserting before the period the following: (1) ELIGIBILITY FOR ELECTION.—Clause (ii) ‘‘, or passengers transported on United of section 1(g)(7)(A) (relating to election to amended by striking ‘‘section 85(c)’’ and in- States flag vessels operating solely within include certain unearned income of child on serting ‘‘section 85(b)’’. the State waters of Alaska or Hawaii and ad- parent’s return) is amended to read as fol- (16) Subsection (k) of section 6166 is amend- jacent international waters’’. lows: ed by striking paragraph (6). (17) Subsection (e) of section 6214 is amend- (2) EFFECTIVE DATE.—The amendment ‘‘(ii) such gross income is more than the made by paragraph (1) shall take effect as if amount described in paragraph (4)(A)(ii)(I) ed to read as follows: included in the amendments made by section and less than 10 times the amount so de- ‘‘(e) CROSS REFERENCE.— 1402(a) of the Harbor Maintenance Revenue scribed,’’. Act of 1986. (2) COMPUTATION OF TAX.—Subparagraph ‘‘For provision giving Tax Court jurisdic- (k) AMENDMENTS RELATED TO REVENUE (B) of section 1(g)(7) (relating to income in- tion to order a refund of an overpayment and PROVISIONS OF ENERGY POLICY ACT OF 1992.— cluded on parent’s return) is amended— to award sanctions, see section 6512(b)(2).’’ April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4289 (18) The section heading for section 6043 is (41) Section 6038 is amended by redesignat- (60) Paragraph (7) of section 7611(h) is amended by striking the semicolon and in- ing the subsection relating to cross ref- amended by striking ‘‘approporiate’’ and in- serting a comma. erences as subsection (f). serting ‘‘appropriate’’. (19) The item relating to section 6043 in the (42) Clause (iv) of section 6103(e)(1)(A) is (61) The heading of paragraph (3) of section table of sections for subpart B of part III of amended by striking all that follows ‘‘provi- 419A(c) is amended by striking ‘‘SEVERENCE’’ subchapter A of chapter 61 is amended by sions of’’ and inserting ‘‘section 1(g) or and inserting ‘‘SEVERANCE’’. striking the semicolon and inserting a 59(j);’’. (62) Clause (ii) of section 807(d)(3)(B) is comma. (43) The subsection (f) of section 6109 of the amended by striking ‘‘Commissoners’ ’’ and (20) The table of sections for part I of sub- Internal Revenue Code of 1986 which was inserting ‘‘Commissioners’ ’’. chapter A of chapter 68 is amended by strik- added by section 2201(d) of Public Law 101–624 (63) Subparagraph (B) of section 1274A(c)(1) ing the item relating to section 6662. is redesignated as subsection (g). is amended by striking ‘‘instument’’ and in- (21)(A) Section 7232 is amended— (44) Subsection (b) of section 7454 is amend- serting ‘‘instrument’’. (i) by striking ‘‘LUBRICATING OIL,’’ in the ed by striking ‘‘section 4955(e)(2)’’ and insert- (64) Subparagraph (B) of section 724(d)(3) by heading, and ing ‘‘section 4955(f)(2)’’. striking ‘‘Subparagaph’’ and inserting ‘‘Sub- (ii) by striking ‘‘lubricating oil,’’ in the (45) Subsection (d) of section 11231 of the paragraph’’. text. Revenue Reconciliation Act of 1990 shall be (65) The last sentence of paragraph (2) of (B) The table of sections for part II of sub- applied as if ‘‘comma’’ appeared instead of section 42(c) is amended by striking ‘‘of chapter A of chapter 75 is amended by strik- ‘‘period’’ and as if the paragraph (9) proposed 1988’’. (66) Paragraph (1) of section 9707(d) is ing ‘‘lubricating oil,’’ in the item relating to to be added ended with a comma. amended by striking ‘‘diligence,’’ and insert- section 7232. (46) Paragraph (1) of section 11303(b) of the ing ‘‘diligence’’. (22) Paragraph (1) of section 6701(a) of the Revenue Reconciliation Act of 1990 shall be (67) Subsection (c) of section 4977 is amend- Omnibus Budget Reconciliation Act of 1989 is applied as if ‘‘paragraph’’ appeared instead of ed by striking ‘‘section 132(i)(2)’’ and insert- amended by striking ‘‘subclause (IV)’’ and ‘‘subparagraph’’ in the material proposed to be stricken. ing ‘‘section 132(h)’’. inserting ‘‘subclause (V)’’. (68) The last sentence of section 401(a)(20) (23) Clause (ii) of section 7304(a)(2)(D) of (47) Subsection (f) of section 11701 of the Revenue Reconciliation Act of 1990 is amend- is amended by striking ‘‘section 211’’ and in- such Act is amended by striking ‘‘subsection serting ‘‘section 521’’. (c)(2)’’ and inserting ‘‘subsection (c)’’. ed by inserting ‘‘(relating to definitions)’’ after ‘‘section 6038(e)’’. (69) Subparagraph (A) of section 402(g)(3) is (24) Paragraph (1) of section 7646(b) of such amended by striking ‘‘subsection (a)(8)’’ and Act is amended by striking ‘‘section (48) Subsection (i) of section 11701 of the Revenue Reconciliation Act of 1990 shall be inserting ‘‘subsection (e)(3)’’. 6050H(b)(1)’’ and inserting ‘‘section (70) The last sentence of section 403(b)(10) 6050H(b)(2)’’. applied as if ‘‘subsection’’ appeared instead of ‘‘section’’ in the material proposed to be is amended by striking ‘‘an direct’’ and in- (25) Paragraph (10) of section 7721(c) of such serting ‘‘a direct’’. Act is amended by striking ‘‘section stricken. (49) Subparagraph (B) of section 11801(c)(2) (71) Subparagraph (A) of section 4973(b)(1) 6662(b)(2)(C)(ii)’’ and inserting ‘‘section is amended by striking ‘‘sections 402(c)’’ and 6661(b)(2)(C)(ii)’’. of the Revenue Reconciliation Act of 1990 shall be applied as if ‘‘section 56(g)’’ ap- inserting ‘‘section 402(c)’’. (26) Subparagraph (A) of section 7811(i)(3) (72) Paragraph (12) of section 3405(e) is peared instead of ‘‘section 59(g)’’. of such Act is amended by inserting ‘‘the amended by striking ‘‘(b)(3)’’ and inserting (50) Subparagraph (C) of section 11801(c)(8) first place it appears’’ before ‘‘in clause (i)’’. ‘‘(b)(2)’’. of the Revenue Reconciliation Act of 1990 (27) Paragraph (10) of section 7841(d) of (73) Paragraph (41) of section 521(b) of the shall be applied as if ‘‘reorganizations’’ ap- such Act is amended by striking ‘‘section Unemployment Compensation Amendments peared instead of ‘‘reorganization’’ in the 381(a)’’ and inserting ‘‘section 381(c)’’. of 1992 shall be applied as if ‘‘section’’ ap- material proposed to be stricken. (28) Paragraph (2) of section 7861(c) of such peared instead of ‘‘sections’’ in the material (51) Subparagraph (H) of section 11801(c)(9) Act is amended by inserting ‘‘the second proposed to be stricken. of the Revenue Reconciliation Act of 1990 place it appears’’ before ‘‘and inserting’’. (74) Paragraph (27) of section 521(b) of the shall be applied as if ‘‘section 1042(c)(1)(B)’’ (29) Paragraph (1) of section 460(b) is Unemployment Compensation Amendments appeared instead of ‘‘section 1042(c)(2)(B)’’. amended by striking ‘‘the look-back method of 1992 shall be applied as if ‘‘Section (52) Subparagraph (F) of section 11801(c)(12) of paragraph (3)’’ and inserting ‘‘the look- 691(c)(5)’’ appeared instead of ‘‘Section of the Revenue Reconciliation Act of 1990 back method of paragraph (2)’’. 691(c)’’. shall be applied as if ‘‘and (3)’’ appeared in- (30) Subparagraph (C) of section 50(a)(2) is (75) Paragraph (5) of section 860F(a) is stead of ‘‘and (E)’’. amended by striking ‘‘subsection (c)(4)’’ and amended by striking ‘‘paragraph (1)’’ and in- (53) Subparagraph (A) of section 11801(c)(22) inserting ‘‘subsection (d)(5)’’. serting ‘‘paragraph (2)’’. of the Revenue Reconciliation Act of 1990 (76) Paragraph (1) of section 415(k) is (31) Subparagraph (B) of section 172(h)(4) is shall be applied as if ‘‘chapters 21’’ appeared amended by striking the material following amended by adding ‘‘or’’ at the end of sub- instead of ‘‘chapter 21’’ in the material pro- paragraph (C), by striking subparagraphs (D) the heading and preceding clause (i) and in- posed to be stricken. serting ‘‘For purposes of subsection (b)(2)—’’. and (E), and by redesignating subparagraph (54) Paragraph (3) of section 11812(b) of the (F) as subparagraph (D). (32) Subparagraph (A) of section 355(d)(7) is Revenue Reconciliation Act of 1990 shall be amended by inserting ‘‘section’’ before (77) Paragraph (2) of section 404(a) is applied by not executing the amendment amended by striking ‘‘(18),’’. ‘‘267(b)’’. therein to the heading of section 42(d)(5)(B). (33) Subparagraph (C) of section 420(e)(1) is (78) Clause (ii) of section 72(p)(4)(A) is (55) Clause (i) of section 11813(b)(9)(A) of amended to read as follows: amended by striking ‘‘mean’’ and inserting the Revenue Reconciliation Act of 1990 shall ‘‘means’’. ‘‘(ii) SPECIAL RULE.—The term ‘qualified be applied as if a comma appeared after employer plan’ shall not include any plan (34) Paragraph (4) of section 537(b) is ‘‘(3)(A)(ix)’’ in the material proposed to be amended by striking ‘‘section 172(i)’’ and in- which was (or was determined to be) a quali- stricken. fied employer plan or a government plan.’’ serting ‘‘section 172(f)’’. (56) Subparagraph (F) of section 11813(b)(13) (35) Subparagraph (B) of section 613(e)(1) is (79) Sections 461(i)(3)(C) and 1274(b)(3)(B)(i) of the Revenue Reconciliation Act of 1990 are each amended by striking ‘‘section amended by striking the comma at the end shall be applied as if ‘‘tax’’ appeared after thereof and inserting a period. 6662(d)(2)(C)(ii)’’ and inserting ‘‘section ‘‘investment’’ in the material proposed to be 6662(d)(2)(C)(iii)’’. (36) Paragraph (4) of section 856(a) is stricken. amended by striking ‘‘section 582(c)(5)’’ and (80) Subsection (a) of section 164 is amend- (57) Paragraph (19) of section 11813(b) of the ed by striking the paragraphs relating to the inserting ‘‘section 582(c)(2)’’. Revenue Reconciliation Act of 1990 shall be (37) Sections 904(f)(2)(B)(i) and generation-skipping tax and the environ- applied as if ‘‘Paragraph (20) of section mental tax imposed by section 59A and by in- 907(c)(4)(B)(iii) are each amended by insert- 1016(a), as redesignated by section 11801,’’ ap- ing ‘‘(as in effect on the day before the date serting after paragraph (3) the following new peared instead of ‘‘Paragraph (21) of section paragraphs: of the enactment of the Revenue Reconcili- 1016(a)’’. ation Act of 1990)’’ after ‘‘section 172(h)’’. ‘‘(4) The GST tax imposed on income dis- (58) Paragraph (5) section 8002(a) of the tributions. (38) Subsection (b) of section 936 is amend- Surface Transportation Revenue Act of 1991 ‘‘(5) The environmental tax imposed by ed by striking ‘‘subparagraphs (D)(ii)(I)’’ and shall be applied as if ‘‘4481(e)’’ appeared in- section 59A.’’ inserting ‘‘subparagraphs (D)(ii)’’. stead of ‘‘4481(c)’’. (39) Subsection (c) of section 2104 is amend- (59) Section 7872 is amended— Subtitle G—Tax Reduction Contingent on ed by striking ‘‘subparagraph (A), (C), or (D) (A) by striking ‘‘foregone’’ each place it Deficit Reduction of section 861(a)(1)’’ and inserting ‘‘section appears in subsections (a) and (e)(2) and in- SEC. 6701. TAX REDUCTION CONTINGENT ON DEF- 861(a)(1)(A)’’. serting ‘‘forgone’’, and ICIT REDUCTION. (40) Subparagraph (A) of section 280A(c)(1) (B) by striking ‘‘FOREGONE’’ in the heading Notwithstanding any other provision of is amended to read as follows: for subsection (e) and the heading for para- this title and any amendment made by this ‘‘(A) as the principal place of business for graph (2) of subsection (e) and inserting title, no provision of this title shall take ef- any trade or business of the taxpayer,’’. ‘‘FORGONE’’. fect unless— H 4290 CONGRESSIONAL RECORD — HOUSE April 5, 1995 (1) the concurrent resolution on the budget The CHAIRMAN. The Clerk will des- TITLE VI—EXTENSION OF AUTHORITY for fiscal year 1996, as agreed to, provides ignate the amendment. OF FEDERAL COMMUNICATIONS COM- that the budget of the United States will be The text of the amendment is the na- MISSION TO USE COMPETITIVE BID- in balance by fiscal year 2002, and ture of a substitute is as follows: DING (2) the conference report, as agreed to, on Sec. 601. Extension of authority. the reconciliation bill for that resolution— Amendment in the nature of a substitute (A) achieves the aggregate amount of defi- offered by Mr. GEPHARDT. TITLE VII—PRIVATIZATION OF THE cit reduction to effectuate the reconciliation Strike all after the enacting clause and in- UNITED STATES ENRICHMENT COR- instructions required for the years covered sert the following: PORATION by that resolution necessary to so balance SECTION 1. SHORT TITLE; TABLE CONTENTS. Sec. 701. Short title and reference. the budget, and (a) SHORT TITLE.—This Act may be cited as Sec. 702. Production facility. (B) contains a statement, based on esti- the ‘‘School Act of 1995’’. Sec. 703. Definitions. mates made by the Director of the Congres- (b) TABLE OF CONTENTS.— Sec. 704. Employees of the corporation. sional Budget Office, that such conference Sec. 1. Short title; table of contents. Sec. 705. Marketing and contracting author- report does so comply. ity. SEC. 6702. MONITORING. TITLE I—INCENTIVES FOR INVESTMENT Sec. 706. Privatization of the corporation. The Committees on the Budget of the IN HIGHER EDUCATION Sec. 707. Periodic certification of compli- House of Representatives and the Senate Sec. 101. Deduction for higher education ex- ance. shall each monitor progress on achieving a penses. Sec. 708. Licensing of other technologies. balanced budget consistent with the most re- Sec. 102. Deduction for interest on loans for Sec. 709. Conforming amendments. cently agreed to concurrent resolution on higher education. TITLE I—INCENTIVES FOR INVESTMENT the budget for fiscal year 1996 or any subse- Sec. 103. Expansion of education saving bond IN HIGHER EDUCATION quent fiscal year (and the reconciliation Act program. for that resolution) or the most recently Sec. 104. Deduction for IRA contributions SEC. 101. DEDUCTION FOR HIGHER EDUCATION EXPENSES. agreed to concurrent resolution on the budg- available to all middle-income (a) DEDUCTION ALLOWED.— Part VII of sub- et that would achieve a balanced budget by taxpayers. chapter B of chapter 1 of the Internal Reve- fiscal year 2002 (and the reconciliation Act Sec. 105. Distributions from individual re- nue Code of 1986 (relating to additional item- for that resolution). After consultation with tirement plans may be used ized deductions for individuals) is amended the Director of the Congressional Budget Of- without penalty to pay higher by redesignating section 220 as section 221 fice, each such committee shall submit a re- education expenses. and by inserting after section 219 the follow- port of its findings to its House and the Sec. 106. Spousal IRA computed on basis of ing new section: President on or before December 15, 1995, and compensation of both spouses. annually thereafter. Each such report shall ‘‘SEC. 220. HIGHER EDUCATION TUITION AND contain the following: TITLE II—NONDEDUCTIBLE TAX-FREE FEES. (1) Estimates of the deficit levels (based on INDIVIDUAL RETIREMENT ACCOUNTS ‘‘(a) ALLOWANCE OF DEDUCTION.—In the legislation enacted through the date of the Sec. 201. Establishment of nondeductible case of an individual, there shall be allowed report) for each fiscal year through fiscal tax-free individual retirement as a deduction the amount of qualified high- year 2002. accounts. er education expenses paid by the taxpayer (2) An analysis of the variance (if any) be- TITLE III—TAX BENEFITS CONTINGENT during the taxable year. tween those estimated deficit levels and the ON FEDERAL BUDGET ‘‘(b) LIMITATIONS.— levels set forth in the concurrent resolution ‘‘(1) DOLLAR LIMITATION.— Sec. 301. Effective dates of tax benefits de- on the budget for fiscal year 1996 or the most ‘‘(A) IN GENERAL.—The amount allowed as layed until Federal budget pro- recently agreed to concurrent resolution on a deduction under subsection (a) for any tax- jected to be in balance. the budget that would achieve a balanced able year shall not exceed $10,000. Sec. 302. Termination of tax benefits if Fed- budget by fiscal year 2002. ‘‘(B) PHASE-IN.—In the case of taxable (3) Policy options to achieve the additional eral budget deficit reduction years beginning in 1996, 1997, or 1998, ‘$5,000’ levels of deficit reduction necessary to bal- targets are not met. shall be substituted for ‘$10,000’ in subpara- ance the budget of the United States by fis- TITLE IV—REVISIONS TO DISCRE- graph (A). cal year 2002. TIONARY SPENDING LIMITS AND ‘‘(2) LIMITATION BASED ON MODIFIED AD- SEC. 6703. CONGRESSIONAL ACTION. BUDGET PROCESS JUSTED GROSS INCOME.— Each House of Congress shall incorporate Sec. 401. Short title. ‘‘(A) IN GENERAL.—The amount which the policy options included in the report of Sec. 402. Discretionary spending limits. would (but for this paragraph) be taken into its Committee on the Budget under section Sec. 403. General statement and definitions. account under paragraph (1) shall be reduced 6702(a)(3) (or other policy options) in devel- Sec. 404. Enforcing discretionary spending (but not below zero) by the amount deter- oping a concurrent resolution on the budget limits. mined under subparagraph (B). for any fiscal year that achieves the addi- Sec. 405. Enforcing pay-as-you-go. ‘‘(B) AMOUNT OF REDUCTION.—The amount tional levels of deficit reduction necessary to Sec. 406. Reports and orders. determined under this subparagraph equals balance the budget of the United States by Sec. 407. Technical correction. the amount which bears the same ratio to fiscal year 2002. Sec. 408. Effective date. the amount which would be so taken into ac- SEC. 6704. PRESIDENTIAL ACTION. count as— Sec. 409. Savings from provisions of this ‘‘(i) the excess of— If the President submits a budget under title reducing discretionary ‘‘(I) the taxpayer’s modified adjusted gross section 1105(a) of title 31, United States spending to be added to pay-as- Code, that does not provide for a balanced income for such taxable year, over you-go scorecard. budget for the United States by fiscal year ‘‘(II) $50,000 ($75,000 in the case of a joint Sec. 410. Clarification of order in which ad- 2002, then the President shall include with return), bears to justments to discretionary that submission a complete budget that bal- ‘‘(ii) $10,000. spending limits are to be made. ances the budget by that fiscal year. ‘‘(C) MODIFIED ADJUSTED GROSS INCOME.— The CHAIRMAN. No amendment to TITLE V—PROVISIONS RELATING TO The term ‘modified adjusted gross income’ the amendment in the nature of a sub- INTERNATIONAL TAXATION means the adjusted gross income of the tax- stitute is in order except the further Sec. 501. Revision of tax rules on expatria- payer for the taxable year determined— amendment in the nature of a sub- tion. ‘‘(i) without regard to this section and sec- stitute printed in part 2 of the report, Sec. 502. Improved information reporting on tions 911, 931, and 933, and ‘‘(ii) after the application of sections 86, which may be offered only by the gen- foreign trusts. Sec. 503. Modification of rules relating to 135, 219 and 469. tleman from Missouri [Mr. GEPHARDT], foreign trusts having one or For purposes of sections 86, 135, 219, and 469, or his designee, is considered as having more United States bene- adjusted gross income shall be determined been read, is debatable for one hour, ficiaries. without regard to the deduction allowed equally divided and controlled by the Sec. 504. Foreign persons not to be treated under this section. proponent and an opponent of the as owners under grantor trust ‘‘(c) QUALIFIED HIGHER EDUCATION EX- amendment, and is not subject to rules. PENSES.—For purposes of this section— amendment. Sec. 505. Gratuitous transfers by partner- ‘‘(1) QUALIFIED HIGHER EDUCATION EX- ships and foreign corporations. PENSES AMENDMENT IN THE NATURE OF A SUBSTITUTE .— Sec. 506. Information reporting regarding ‘‘(A) IN GENERAL.—The term ‘qualified OFFERED BY MR. GEPHARDT large foreign gifts. higher education expenses’ means tuition Mr. GEPHARDT. Mr. Chairman, I Sec. 507. Modification of rules relating to and fees charged by an educational institu- offer an amendment in the nature of a foreign trusts which are not tion and required for the enrollment or at- substitute made in order under the grantor trusts. tendance of— rule. Sec. 508. Residence of estates and trusts. ‘‘(i) the taxpayer, April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4291

‘‘(ii) the taxpayer’s spouse, or ‘‘(3) ADJUSTMENT FOR CERTAIN SCHOLAR- recipient was an eligible student (as defined ‘‘(iii) any dependent of the taxpayer with SHIPS AND VETERANS BENEFITS.—The amount in such section). respect to whom the taxpayer is allowed a of qualified higher education expenses other- Such term includes indebtedness used to re- deduction under section 151, wise taken into account under subsection (a) finance indebtedness which qualifies as a as an eligible student at an institution of with respect to the education of an individ- qualified higher education loan. higher education. ual shall be reduced (before the application ‘‘(B) REDUCTION OF BENEFIT FOR HIGHER IN- of subsection (b)) by the sum of the amounts ‘‘(B) EXCEPTION FOR EDUCATION INVOLVING COME TAXPAYERS.— received with respect to such individual for SPORTS, ETC.—Such term does not include ex- ‘‘(i) IN GENERAL.—The amount of interest the taxable year as— penses with respect to any course or other which would (but for this subparagraph) be ‘‘(A) a qualified scholarship which under education involving sports, games, or hob- taken into account under paragraph (2)(E) section 117 is not includable in gross income, bies, unless such expenses— for the taxable year shall be reduced (but not ‘‘(B) an educational assistance allowance ‘‘(i) are part of a degree program, or below zero) by the amount which bears the under chapter 30, 31, 32, 34, or 35 of title 38, ‘‘(ii) are deductible under this chapter same ratio to the amount of such interest United States Code, or as— without regard to this section. ‘‘(C) a payment (other than a gift, bequest, ‘‘(C) EXCEPTION FOR NONACADEMIC FEES.— ‘‘(I) the excess of the taxpayer’s modified devise, or inheritance within the meaning of adjusted gross income for such taxable year Such term does not include any student ac- section 102(a)) for educational expenses, or over $50,000 ($75,000 in the case of a joint re- tivity fees, athletic fees, insurance expenses, attributable to enrollment at an eligible turn), bears to or other expenses unrelated to a student’s educational institution, which is exempt ‘‘(II) $10,000. academic course of instruction. from income taxation by any law of the ‘‘(ii) MODIFIED ADJUSTED GROSS INCOME.— ‘‘(D) ELIGIBLE STUDENT.—For purposes of United States. For purposes of clause (i), the term ‘modified subparagraph (A), the term ‘eligible student’ ‘‘(4) NO DEDUCTION FOR MARRIED INDIVID- adjusted gross income’ means the adjusted means a student who— UALS FILING SEPARATE RETURNS.—If the tax- gross income of the taxpayer for the taxable ‘‘(i) meets the requirements of section payer is a married individual (within the year determined— 484(a)(1) of the Higher Education Act of 1965 meaning of section 7703), this section shall ‘‘(I) without regard to paragraph (2)(E) and (20 U.S.C. 1091(a)(1)), as in effect on the date apply only if the taxpayer and the taxpayer’s sections 911, 931, and 933, and of the enactment of this section, and spouse file a joint return for the taxable ‘‘(II) after the application of sections 86, ‘‘(ii)(I) is carrying at least one-half the year. The preceeding sentence shall not 135, 219, 220, and 469. normal full-time work load for the course of apply if the taxpayer lives apart from his study the student is pursuing, as determined spouse at all times during the taxable year. For purposes of sections 86, 135, 219, 220, and by the institution of higher education, or ‘‘(5) NONRESIDENT ALIENS.—If the taxpayer 469, adjusted gross income shall be deter- ‘‘(II) is enrolled in a course which enables is a nonresident alien individual for any por- mined without regard to the deduction al- the student to improve the student’s job tion of the taxable year, this section shall lowed by reason of paragraph (2)(E). skills or to acquire new job skills. apply only if such individual is treated as a ‘‘(C) COORDINATION WITH LIMITATION ON ‘‘(E) IDENTIFICATION REQUIREMENT.—No de- resident alien of the United States for pur- HOME EQUITY INDEBTEDNESS.—Any qualified duction shall be allowed under subsection (a) poses of this chapter by reason of an election higher education loan shall not be taken into to a taxpayer with respect to an eligible stu- under subsection (g) or (h) of section 6013. account for purposes of applying the limita- dent unless the taxpayer includes the name, ‘‘(6) REGULATIONS.—The Secretary may tion of paragraph (3)(C)(ii). age, and taxpayer identification number of prescribe such regulations as may be nec- ‘‘(D) COORDINATION WITH SAVINGS BOND EX- such eligible student on the return of tax for essary or appropriate to carry out this sec- CLUSION.—The amount of qualified higher the taxable year. tion, including regulations requiring record- education expenses for any taxable year oth- ‘‘(2) INSTITUTION OF HIGHER EDUCATION.— keeping and information reporting.’’ erwise taken into account under subpara- The term ‘institution of higher education’ (b) DEDUCTION ALLOWED IN COMPUTING AD- graph (A) shall be reduced by any amount ex- means an institution which— JUSTED GROSS INCOME.—Section 62(a) of such cludable from gross income under section 135 ‘‘(A) is described in section 481 of the High- Code is amended by inserting after para- for such taxable year. er Education Act of 1965 (20 U.S.C. 1088), as in graph (15) the following new paragraph: ‘‘(E) OTHER RULES TO APPLY.—Rules similar effect on the date of the enactment of this ‘‘(16) HIGHER EDUCATION TUITION AND to the rules of subparagraphs (B) and (C) of section, and FEES.—The deduction allowed by section paragraph (1), and paragraphs (3), (4), and (5), ‘‘(B) is eligible to participate in programs 220.’’ of section 220(d), shall apply for purposes of under title IV of such Act. (c) CONFORMING AMENDMENT.—The table of this section.’’ ‘‘(d) SPECIAL RULES.— sections for part VII of subchapter B of chap- (c) DEDUCTION ALLOWED IN COMPUTING AD- ‘‘(1) NO DOUBLE BENEFIT.— ter 1 of such Code is amended by striking the JUSTED GROSS INCOME.—Section 62(a) of such ‘‘(A) IN GENERAL.—No deduction shall be item relating to section 220 and inserting: Code is amended by inserting after para- allowed under subsection (a) for qualified graph (16) the following new paragraph: ‘‘Sec. 220. Higher education tuition and fees. higher education expenses with respect to ‘‘(17) INTEREST ON LOANS FOR HIGHER EDU- which a deduction is allowable to the tax- ‘‘Sec. 221. Cross reference.’’ CATION.—The deduction allowed by section payer under any other provision of this chap- (d) EFFECTIVE DATE.—The amendments 163 to the extent attributable to any quali- ter unless the taxpayer irrevocably waives made by this section shall apply to payments fied higher education loan (as defined in sec- his right to the deduction of such expenses made after December 31, 1995. tion 163(h)(5)).’’ under such other provision. SEC. 102. DEDUCTION FOR INTEREST ON LOANS (d) EFFECTIVE DATE.—The amendments ‘‘(B) DEPENDENTS.—No deduction shall be FOR HIGHER EDUCATION. made by this section shall apply to amounts allowed under subsection (a) to any individ- (a) IN GENERAL.—Paragraph (2) of section paid or accrued after December 31, 1995. ual with respect to whom a deduction under 163(h) of the Internal Revenue Code of 1986 SEC. 103. EXPANSION OF EDUCATION SAVING section 151 is allowable to another taxpayer (defining personal interest) is amended by BOND PROGRAM. for a taxable year beginning in the calendar striking ‘‘and’’ at the end of subparagraph (a) HIGHER YIELD ON GUARANTEED EDU- year in which such individual’s taxable year (D), by redesignating subparagraph (E) as CATION PLAN BONDS.—Subsection (b) of sec- begins. subparagraph (F), and by inserting after sub- tion 3101 of title 31, United States Code, is ‘‘(C) SAVINGS BOND EXCLUSION.—A deduc- paragraph (D) the following new subpara- amended by adding at the end the following tion shall be allowed under subsection (a) for graph: new paragraph: qualified higher education expenses only to ‘‘(E) any interest on a qualified higher edu- ‘‘(3)(A) The Secretary shall issue savings the extent the amount of such expenses ex- cation loan, and’’. bonds which are designated as Guaranteed ceeds the amount excludable under section (b) QUALIFIED HIGHER EDUCATION LOAN DE- Education Plan Bonds. 135 for the taxable year. FINED.—Paragraph (5) of section 163(h) of ‘‘(B)(i) Except as provided in clause (ii) or ‘‘(2) LIMITATION ON TAXABLE YEAR OF DE- such Code (relating to phase-in of limita- by the Secretary, Guaranteed Education DUCTION.— tions) is amended to read as follows: Plan Bonds shall have the same terms and ‘‘(A) IN GENERAL.—A deduction shall be al- ‘‘(5) QUALIFIED HIGHER EDUCATION LOAN.— conditions as other savings bonds. lowed under subsection (a) for any taxable For purposes of this subsection— ‘‘(ii) Guaranteed Education Plan Bonds, if year only to the extent the qualified higher ‘‘(A) IN GENERAL.—The term ‘qualified redeemed under circumstances such that the education expenses are in connection with higher education loan’ means any loan in- Secretary is reasonably certain that the re- enrollment at an institution of higher edu- curred by the taxpayer under a State or Fed- demption proceeds will be used to pay the cation during the taxable year. eral student loan program to pay qualified qualified higher education expenses (as de- ‘‘(B) CERTAIN PREPAYMENTS ALLOWED.— higher education expenses (as defined in sec- fined in section 135 of the Internal Revenue Subparagraph (A) shall not apply to qualified tion 220(c))— Code of 1986) of the individual holding the higher education expenses paid during a tax- ‘‘(i) which are paid or incurred within a bond, shall have an investment yield which able year if such expenses are in connection reasonable period of time before or after the is materially greater than the investment with an academic term beginning during indebtedness is incurred, and yield when not so used.’’ such taxable year or during the 1st 3 months ‘‘(ii) which are attributable to education (b) REDUCTION OF AGE LIMIT ON INDIVIDUAL of the next taxable year. furnished during a period during which the TO WHOM BOND ISSUED.—Subparagraph (B) of H 4292 CONGRESSIONAL RECORD — HOUSE April 5, 1995

section 135(b)(1) is amended by striking ‘‘age ‘‘(ii) the compensation includible in the ‘‘(2) EXCEPTION FOR EARNINGS ON CONTRIBU- 24’’ and inserting ‘‘age 21’’. gross income of such individual’s spouse for TIONS HELD LESS THAN 5 YEARS.— (c) TAXPAYER NEED NOT BE PURCHASER OF the taxable year reduced by the amount al- ‘‘(A) IN GENERAL.—Any amount distributed BOND.—Nothing in section 135 of the Internal lowable as a deduction under subsection (a) out of a special individual retirement ac- Revenue Code of 1986 shall be construed to to such spouse for such taxable year. count which consists of earnings allocable to require that, in order for a savings bond to ‘‘(2) INDIVIDUALS TO WHOM PARAGRAPH (1) contributions made to the account during be a qualified United States savings bond APPLIES.—Paragraph (1) shall apply to any the 5-year period ending on the day before under such section, the purchaser of the individual if— such distribution shall be included in the bond must be the individual to whom the ‘‘(A) such individual files a joint return for gross income of the distributee for the tax- bond is issued. the taxable year, and able year in which the distribution occurs. (d) LIMITATION ON INFLATION ADJUST- ‘‘(B) the amount of compensation (if any) ‘‘(B) ORDERING RULE.— MENT.—Subparagraph (B) of section 135(b)(2) includible in such individual’s gross income ‘‘(i) FIRST-IN, FIRST-OUT RULE.—Distribu- is amended by adding at the end the follow- for the taxable year is less than the com- tions from a special individual retirement ing new flush sentence: pensation includible in the gross income of account shall be treated as having been ‘‘In no event shall be adjustment under this such individual’s spouse for the taxable year. made— subparagraph increase the $40,000 amount to ‘‘(3) PHASEIN OF BENEFIT.—The amount de- ‘‘(I) first from the earliest contribution more than $50,000 or the $60,000 amount to termined under paragraph (1)(B)(ii) for any (and earnings allocable thereto) remaining more than $70,000.’’ taxable year beginning in a calendar year in the account at the time of the distribu- (e) EFFECTIVE DATE.— shall not exceed the sum of— tion, and (1) IN GENERAL.—Except as provided in ‘‘(A) $250, plus ‘‘(II) then from other contributions (and paragraph (2), the amendments made by this ‘‘(B) the product of $250 and the number of earnings allocable thereto) in the order in section shall apply to bonds issued after the calendar years which such calendar year is which made. date of the enactment of this Act. after 1996.’’ ‘‘(ii) ALLOCATIONS BETWEEN CONTRIBUTIONS (2) SUBSECTION (d).—The amendment made (b) TECHNICAL AMENDMENT.—Paragraph (2) AND EARNINGS.—Any portion of a distribution by subsection (d) shall apply to taxable years of section 219(f) of such Code (relating to allocated to a contribution (and earnings al- beginning after December 31, 1995. other definitions and special rules) is amend- locable thereto) shall be treated as allocated (e) AUTHORIZATION OF APPROPRIATIONS.— ed by striking ‘‘subsections (b) and (c)’’ and first to the earnings and then to the con- There are authorized to be appropriated for inserting ‘‘subsection (b)’’. tribution. the administrative expenses of the Depart- (c) EFFECTIVE DATE.—The amendments ‘‘(iii) ALLOCATION OF EARNINGS.—Earnings ment of the Treasury to carry out the made by this section shall apply to contribu- shall be allocated to a contribution in such amendment made by subsection (a)— tions for taxable years beginning after De- manner as the Secretary may by regulations (1) $650,000 for the fiscal year beginning cember 31, 1995. prescribe. after the date of the enactment of this Act, TITLE II—NONDEDUCTIBLE TAX-FREE ‘‘(iv) CONTRIBUTIONS IN SAME YEAR.—Except and INDIVIDUAL RETIREMENT ACCOUNTS as provided in regulations, all contributions (2) $11,900,000 for each following fiscal year. made during the same taxable year may be SEC. 201. ESTABLISHMENT OF NONDEDUCTIBLE treated as 1 contribution for purposes of this SEC. 104. DEDUCTION FOR IRA CONTRIBUTIONS TAX-FREE INDIVIDUAL RETIREMENT AVAILABLE TO ALL MIDDLE-INCOME ACCOUNTS. subparagraph. ‘‘(C) CROSS REFERENCE.— TAXPAYERS. (a) IN GENERAL.—Subpart A of part I of (a) IN GENERAL.—Subparagraph (B) of sec- subchapter D of chapter 1 of the Internal ‘‘For additional tax for early withdrawal, tion 219(g)(3) of the Internal Revenue Code of Revenue Code of 1986 (relating to pension, see section 72(t). 1986 is amended— profit-sharing, stock bonus plans, etc.) is ‘‘(3) QUALIFIED TRANSFER.— (1) by striking ‘‘$40,000’’ in clause (i) and amended by inserting after section 408 the ‘‘(A) IN GENERAL.—Paragraph (2) shall not inserting ‘‘$75,000’’, and following new section: apply to any distribution which is trans- (2) by striking ‘‘$25,000’’ in clause (ii) and ‘‘SEC. 408A. SPECIAL INDIVIDUAL RETIREMENT ferred in a qualified transfer to another spe- inserting ‘‘$50,000’’. ACCOUNTS. cial individual retirement account. (b) EFFECTIVE DATE.—The amendment ‘‘(a) GENERAL RULE.—Except as provided in ‘‘(B) CONTRIBUTION PERIOD.—For purposes made by subsection (a) shall apply to con- this chapter, a special individual retirement of paragraph (2), the special individual re- tributions for taxable years beginning after account shall be treated for purposes of this tirement account to which any contributions December 31, 1995. title in the same manner as an individual re- are transferred shall be treated as having SEC. 105. DISTRIBUTIONS FROM INDIVIDUAL RE- tirement plan. held such contributions during any period TIREMENT PLANS MAY BE USED ‘‘(b) SPECIAL INDIVIDUAL RETIREMENT AC- such contributions were held (or are treated WITHOUT PENALTY TO PAY HIGHER COUNT.—For purposes of this title, the term as held under this subparagraph) by the spe- EDUCATION EXPENSES. ‘special individual retirement account’ cial individual retirement account from (a) IN GENERAL.—Paragraph (2) of section means an individual retirement plan which which transferred. 72(t) of the Internal Revenue Code of 1986 (re- is designated at the time of establishment of ‘‘(4) SPECIAL RULES RELATING TO CERTAIN lating to exceptions to 10-percent additional the plan as a special individual retirement TRANSFERS.— tax on early distributions from qualified re- account. ‘‘(A) IN GENERAL.—Notwithstanding any tirement plans) is amended by adding at the ‘‘(c) TREATMENT OF CONTRIBUTIONS.— other provision of law, in the case of a quali- end thereof the following new subparagraph: ‘‘(1) NO DEDUCTION ALLOWED.—No deduction fied transfer to a special individual retire- ‘‘(D) DISTRIBUTIONS FROM INDIVIDUAL RE- shall be allowed under section 219 for a con- ment account from an individual retirement TIREMENT PLANS FOR HIGHER EDUCATIONAL EX- tribution to a special individual retirement plan which is not a special individual retire- PENSES.—Distributions to an individual from account. ment account— an individual retirement plan to the extent ‘‘(2) CONTRIBUTION LIMIT.—The aggregate ‘‘(i) there shall be included in gross income such distributions during the taxable year do amount of contributions for any taxable year any amount which, but for the qualified not exceed the amount allowed as a deduc- to all special individual retirement accounts transfer, would be includible in gross in- tion under section 220 to the taxpayer for maintained for the benefit of an individual come, but such taxable year.’’ shall not exceed the excess (if any) of— ‘‘(ii) section 72(t) shall not apply to such (b) EFFECTIVE DATE.—The amendment ‘‘(A) the maximum amount allowable as a amount. made by subsection (a) shall apply to dis- deduction under section 219 with respect to ‘‘(B) TIME FOR INCLUSION.—In the case of tributions after December 31, 1995. such individual for such taxable year, over any qualified transfer which occurs before SEC. 106. SPOUSAL IRA COMPUTED ON BASIS OF ‘‘(B) the amount so allowed. January 1, 1997, any amount includible in COMPENSATION OF BOTH SPOUSES. ‘‘(3) SPECIAL RULES FOR QUALIFIED TRANS- gross income under subparagraph (A) with (a) IN GENERAL.—Subsection (c) of section FERS.— respect to such contribution shall be includ- 219 of the Internal Revenue Code of 1986 (re- ‘‘(A) IN GENERAL.—No rollover contribution ible ratably over the 4-taxable year period lating to special rules for certain married in- may be made to a special individual retire- beginning in the taxable year in which the dividuals) is amended to read as follows: ment account unless it is a qualified trans- amount was paid or distributed out of the in- ‘‘(c) SPECIAL RULES FOR CERTAIN MARRIED fer. dividual retirement plan. INDIVIDUALS.— ‘‘(B) LIMIT NOT TO APPLY.—The limitation ‘‘(e) QUALIFIED TRANSFER.—For purposes of ‘‘(1) IN GENERAL.—In the case of an individ- under paragraph (2) shall not apply to a this section— ual to whom this paragraph applies for the qualified transfer to a special individual re- ‘‘(1) IN GENERAL.—The term ‘qualified taxable year, the limitation of subsection tirement account. transfer’ means a transfer to a special indi- (b)(1) shall be equal to the lesser of— ‘‘(d) TAX TREATMENT OF DISTRIBUTIONS.— vidual retirement account from another such ‘‘(A) $2,000, or ‘‘(1) IN GENERAL.—Except as provided in account or from an individual retirement ‘‘(B) the sum of— this subsection, any amount paid or distrib- plan but only if such transfer meets the re- ‘‘(i) the compensation includible in such uted out of a special individual retirement quirements of section 408(d)(3). individual’s gross income for the taxable account shall not be included in the gross in- ‘‘(2) LIMITATION.—A transfer otherwise de- year, plus come of the distributee. scribed in paragraph (1) shall not be treated April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4293

as a qualified transfer if the taxpayer’s ad- and Budget to the President and the Con- (c) FIVE-YEAR BUDGET RESOLUTIONS.—Sec- justed gross income for the taxable year of gress. tion 606 of the Congressional Budget Act of the transfer exceeds the sum of— (c) CERTIFICATION DURING 1995.—Subsection 1974 is amended— ‘‘(A) the applicable dollar amount, plus (a) shall not apply if there is an OMB certifi- (1) in subsection (a), by striking ‘‘1992, 1993, ‘‘(B) the dollar amount applicable for the cation made during 1995 that the budget of 1994, or 1995’’ and inserting ‘‘1995, 1996, 1997, taxable year under section 219(g)(2)(A)(ii). the United States will be in balance by fiscal 1998, 1999, or 2000’’; and This paragraph shall not apply to a transfer year 2002 based upon estimates of enacted (2) in subsection (d)(1), by striking ‘‘1992, from a special individual retirement account legislation, including the amendments made 1993, 1994, and 1995’’ and inserting ‘‘1995, 1996, to another special individual retirement ac- by this Act. 1997, 1998, 1999, and 2000’’, and by striking ‘‘(i) count. SEC. 302. TERMINATION OF TAX BENEFITS IF and (ii)’’. ‘‘(3) DEFINITIONS.—For purposes of this sub- FEDERAL BUDGET DEFICIT REDUC- (d) EFFECTIVE DATE.—Section 607 of the section, the terms ‘adjusted gross income’ TION TARGETS ARE NOT MET. Congressional Budget Act of 1974 is amended and ‘applicable dollar amount’ have the (a) NO CREDITS, DEDUCTIONS, EXCLUSIONS, by striking ‘‘1991 to 1998’’ and inserting ‘‘1995 meanings given such terms by section PREFERENTIAL RATE OF TAX, ETC.—No tax to 2000’’. 219(g)(3), except subparagraph (A)(ii) thereof benefit provided by any provision of the In- (e) SEQUESTRATION REGARDING CRIME shall be applied without regard to the phrase ternal Revenue Code of 1986 added by title I TRUST FUND.—Section 251A(b)(1) of the Bal- ‘or the deduction allowable under this sec- or II of this Act shall apply to any taxable anced Budget and Emergency Deficit Control tion’.’’ year beginning after the calendar year in Act of 1985 is amended by striking its last (b) EARLY WITHDRAWAL PENALTY.—Section which the first failed deficit reduction year sentence and inserting the following: 72(t) of such Code is amended by adding at ends. ‘‘(E) For fiscal year 1999, $5,639,000,000. the end the following new paragraph: (b) FIRST FAILED DEFICIT REDUCTION ‘‘(F) For fiscal year 2000, $6,225,000,000. ‘‘(6) RULES RELATING TO SPECIAL INDIVIDUAL YEAR.—For purposes of this section, the SEC. 403. GENERAL STATEMENT AND DEFINI- RETIREMENT ACCOUNTS.—In the case of a spe- term ‘‘first failed deficit reduction year’’ TIONS. cial individual retirement account under sec- means the first fiscal year (beginning after (a) GENERAL STATEMENT.—Section 250(b) of tion 408A— the earliest date on which any amendment the Balanced Budget and Emergency Deficit ‘‘(A) this subsection shall only apply to made by title I or II takes effect) with re- Control Act of 1985 is amended by striking distributions out of such account which con- spect to which there is an OMB certification the first sentence and inserting the follow- sist of earnings allocable to contributions during the 3-month period after the close of ing: ‘‘This part provides for the enforcement made to the account during the 5-year period such fiscal year that the actual deficit in the of deficit reduction through discretionary ending on the day before such distribution, budget of the United States for such fiscal spending limits and pay-as-you-go require- and year was greater than the deficit target for ments for fiscal years 1995 through 2000.’’. ‘‘(B) paragraph (2)(A)(i) shall not apply to such fiscal year specified in the following (b) DEFINITIONS.—Section 250(c) of the Bal- any distribution described in subparagraph table: anced Budget and Emergency Deficit Control (A).’’ The deficit target Act of 1985 is amended— (c) EXCESS CONTRIBUTIONS.—Section 4973(b) ‘‘In the case of fiscal year: (in billions) is: (1) by striking paragraph (4) and inserting of such Code is amended by adding at the end 1996 ...... $150 the following: the following new sentence: ‘‘For purposes of 1997 ...... 125 ‘‘(4) The term ‘category’ means all discre- paragraphs (1)(B) and (2)(C), the amount al- 1998 ...... 100 tionary appropriations.’’; lowable as a deduction under section 219 1999 ...... 75 (2) by striking paragraph (6) and inserting shall be computed without regard to section 2000 ...... 50 the following: 408A.’’ 2001 ...... 25 ‘‘(6) The term ‘budgetary resources’ means (d) CONFORMING AMENDMENT.—The table of 2002 or thereafter ...... 0. new budget authority, unobligated balances, sections for subpart A of part I of subchapter direct spending authority, and obligation TITLE IV—REVISIONS TO DISCRETIONARY D of chapter 1 of such Code is amended by in- limitations.’’; SPENDING LIMITS AND BUDGET PROCESS serting after the item relating to section 408 (3) in paragraph (9), by striking ‘‘1992’’ and the following new item: SEC. 401. SHORT TITLE. inserting ‘‘1995’’; This title may be cited as the ‘‘Discre- ‘‘Sec. 408A. Special individual retirement ac- (4) in paragraph (14), by striking ‘‘1995’’ and tionary Spending Reduction and Control Act counts.’’ inserting ‘‘2000’’; and of 1995’’. (5) by striking paragraph (17) and by redes- (e) EFFECTIVE DATE.—The amendments SEC. 402. DISCRETIONARY SPENDING LIMITS. ignating paragraphs (18) through (21) as para- made by this section shall apply to taxable (a) LIMITS.—Section 601(a)(2) of the Con- graphs (17) through (20), respectively. years beginning after December 31, 1995. gressional Budget Act of 1974 is amended by SEC. 404. ENFORCING DISCRETIONARY SPEND- TITLE III—TAX BENEFITS CONTINGENT striking subparagraphs (A), (B), (C), (D), and ING LIMITS. ON FEDERAL BUDGET (F), by redesignating subparagraph (E) as Section 251 of the Balanced Budget and SEC. 301. EFFECTIVE DATES OF TAX BENEFITS subparagraph (A) and by striking ‘‘and’’ at Emergency Deficit Control Act of 1985 is DELAYED UNTIL FEDERAL BUDGET the end of that subparagraph, and by insert- amended— PROJECTED TO BE IN BALANCE. ing after subparagraph (A) the following new (1) in the side heading of subsection (a), by (a) IN GENERAL.—Notwithstanding any pro- subparagraphs: striking ‘‘1991–1998’’ and inserting ‘‘1995– vision of title I or II of this Act and any ‘‘(B) with respect to fiscal year 1996, for the 2000’’; amendment made by such titles, except as discretionary category: $516,478,000,000 in new (2) in the first sentence of subsection (b)(1), otherwise provided in this section— budget authority and $549,054,000,000 in out- by striking ‘‘1992, 1993, 1994, 1995, 1996, 1997 or (1) any reference in this such titles (or in lays; 1998’’ and inserting ‘‘1995, 1996, 1997, 1998, 1999, any amendment made by such titles) to 1995 ‘‘(C) with respect to fiscal year 1997, for the or 2000’’ and by striking ‘‘through 1998’’ and shall be treated as a reference to the cal- discretionary category: $522,894,000,000 in new inserting ‘‘through 2000’’; endar year ending in the first successful defi- budget authority and $544,051,000,000 in out- (3) in subsection (b)(1), by striking sub- cit reduction year, and lays; paragraphs (B) and (C) and by striking ‘‘the (2) any reference in such titles (or in any ‘‘(D) with respect to fiscal year 1998, for following:’’ and all that follows through amendment made by such titles) to any later the discretionary category: $528,810,000,000 in ‘‘The adjustments’’ and inserting ‘‘the fol- calendar year shall be treated as a reference new budget authority and $545,548,000,000 in lowing: the adjustments’’; to the calendar year which is the same num- outlays; (4) in subsection (b)(2), by striking ‘‘1991, ber of years after such first calendar year as ‘‘(E) with respect to fiscal year 1999, for the 1992, 1993, 1994, 1995, 1996, 1997, or 1998’’ and such later year is after 1995. discretionary category: $527,753,000,000 in new inserting ‘‘1995, 1996, 1997, 1998, 1999, or 2000’’ (b) FIRST SUCCESSFUL DEFICIT REDUCTION budget authority and $544,402,000,000 in out- and by striking ‘‘through 1998’’ and inserting YEAR.—For purposes of this section and sec- lays; and ‘‘through 2000’’; tion 302— ‘‘(F) with respect to fiscal year 2000, for the (5) by striking subparagraphs (A), (B), and (1) IN GENERAL.—The term ‘‘first successful discretionary category: $527,040,000,000 in new (C) of subsection (b)(2); deficit reduction year’’ means the first fiscal budget authority and $543,357,000,000 in out- (6) in subsection (b)(2)(E), by striking year beginning after the date of the enact- lays;’’. clauses (i), (ii), and (iii) and by striking ‘‘(iv) ment of this Act with respect to which there (b) COMMITTEE ALLOCATIONS AND ENFORCE- if, for fiscal years 1994, 1995, 1996, 1997, and is an OMB certification before the beginning MENT.—Section 602 of the Congressional 1998’’ and inserting ‘‘If, for fiscal years 1995, of such fiscal year that the budget of the Budget Act of 1974 is amended— 1996, 1997, 1998, 1999, and 2000’’; and United States will be in balance by fiscal (1) in subsection (c), by striking ‘‘1995’’ and (7) in subsection (b)(2)(F), strike every- year 2002 based upon estimates of enacted inserting ‘‘2000’’ and by striking its last sen- thing after ‘‘the adjustment in outlays’’ and legislation, including the amendments made tence; and insert ‘‘for a category for a fiscal year shall by this Act. (2) in subsection (d), by striking ‘‘1992 TO not exceed 0.5 percent of the adjusted discre- (2) OMB CERTIFICATION.—The term ‘‘OMB 1995’’ in the side heading and inserting ‘‘1995 tionary spending limit on outlays for that certification’’ means a written certification TO 2000’’ and by striking ‘‘1992 through 1995’’ fiscal year in fiscal year 1996, 1997, 1998, 1999, by the Director of the Office of Management and inserting ‘‘1995 through 2000’’. or 2000.’’. H 4294 CONGRESSIONAL RECORD — HOUSE April 5, 1995

SEC. 405. ENFORCING PAY-AS-YOU-GO. fiscal year 1996 shall be made to the discre- ‘‘(i) IN GENERAL.—Under regulations pre- Section 252 of the Balanced Budget and tionary spending limits set forth in 601(a)(2) scribed by the Secretary, interests in foreign Emergency Deficit Control Act of 1985 is of the Congressional Budget Act of 1974 as pension plans or similar retirement arrange- amended— amended by section 402; and ments or programs. (1) in the side heading of subsection (a), by (2) all statutory changes in the discre- ‘‘(ii) LIMITATION.—The value of property striking ‘‘1992–1998’’ and inserting ‘‘1995– tionary spending limits made by the Per- which is treated as not sold by reason of this 2000’’; sonal Responsibility Act of 1995 or by the Act subparagraph shall not exceed $500,000. (2) in subsection (d), by striking ‘‘1998’’ entitled ‘‘An Act making emergency supple- ‘‘(e) DEFINITIONS.—For purposes of this sec- each place it appears and inserting ‘‘2000’’; mental appropriations for additional disaster tion— and assistance and making rescissions for the fis- ‘‘(1) RELINQUISHMENT OF CITIZENSHIP.—A (3) in subsection (e), by striking ‘‘1991 cal year ending September 30, 1995, and for citizen shall be treated as relinquishing his through 1998’’ and inserting ‘‘1995 through other purposes’’ shall be made to those lim- United States citizenship on the date the 2000’’ and by striking ‘‘through 1995’’ and in- its. United States Department of State issues to serting ‘‘through 2000’’. TITLE V—PROVISIONS RELATING TO the individual a certificate of loss of nation- SEC. 406. REPORTS AND ORDERS. INTERNATIONAL TAXATION ality or on the date a court of the United Section 254 of the Balanced Budget and States cancels a naturalized citizen’s certifi- Emergency Deficit Control Act of 1985 is SEC. 501. REVISION OF TAX RULES ON EXPATRIA- cate of naturalization. amended— TION. ‘‘(2) LONG-TERM RESIDENT.— (1) in subsection (d)(2), by striking ‘‘1998’’ (a) IN GENERAL.—Subpart A of part II of ‘‘(A) IN GENERAL.—The term ‘long-term and inserting ‘‘2000’’; and subchapter N of chapter 1 of the Internal resident’ means any individual (other than a (2) in subsection (g), by striking ‘‘1998’’ Revenue Code of 1986 is amended by inserting citizen of the United States) who is a lawful each place it appears and inserting ‘‘2000’’. after section 877 the following new section: permanent resident of the United States and, SEC. 407. TECHNICAL CORRECTION. ‘‘SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIA- as a result of such status, has been subject to Section 258 of the Balanced Budget and TION. tax as a resident in at least 10 taxable years Emergency Deficit Control Act of 1985, enti- ‘‘(a) GENERAL RULES.—For purposes of this during the period of 15 taxable years ending tled ‘‘Modification of Presidential Order’’, is subtitle— with the taxable year during which the sale repealed. ‘‘(1) CITIZENS.—If any United States citizen under subsection (a) is treated as occurring. SEC. 408. EFFECTIVE DATE. relinquishes his citizenship during a taxable ‘‘(B) SPECIAL RULE.—For purposes of sub- (a) EXPIRATION.—Section 275(b) of the Bal- year, all property held by such citizen at the paragraph (A), there shall not be taken into anced Budget and Emergency Deficit Control time immediately before such relinquish- account— Act of 1985 is amended by striking ‘‘1995’’ and ment shall be treated as sold at such time ‘‘(i) any taxable year during which any inserting ‘‘2000’’. for its fair market value and any gain or loss prior sale is treated under subsection (a) as (b) EXPIRATION.—Section 14002(c)(3) of the shall be taken into account for such taxable occurring, or Omnibus Budget Reconciliation Act of 1993 (2 year. ‘‘(ii) any taxable year prior to the taxable U.S.C. 900 note; 2 U.S.C. 665 note) is repealed. ‘‘(2) CERTAIN RESIDENTS.—If any long-term year referred to in clause (i). ERMINATION OF EFERRALS TC SEC. 409. SAVINGS FROM PROVISIONS OF THIS resident of the United States ceases to be ‘‘(f) T D , E .—On TITLE REDUCING DISCRETIONARY subject to tax as a resident of the United the date any property held by an individual SPENDING TO BE ADDED TO PAY-AS- States for any portion of any taxable year, is treated as sold under subsection (a)— YOU-GO SCORECARD. all property held by such resident at the ‘‘(1) any period deferring recognition of in- (a)(1) The net change in outlays for any fis- time of such cessation shall be treated as come or gain shall terminate, and cal year through fiscal year 2000 estimated sold at such time for its fair market value ‘‘(2) any extension of time for payment of to result from provisions of this title revis- and any gain or loss shall be taken into ac- tax shall cease to apply and the unpaid por- ing or extending limits on discretionary count for the taxable year which includes tion of such tax shall be due and payable. spending and spending from the Violent the date of such cessation. ‘‘(g) ELECTION BY EXPATRIATING RESI- Crime Reduction Trust Fund shall be consid- ‘‘(b) EXCLUSION FOR CERTAIN GAIN.—The DENTS.—Solely for purposes of determining ered a change in direct spending for purposes amount which would (but for this sub- gain under subsection (a)— of section 252 of the Balanced Budget and section) be includible in the gross income of ‘‘(1) IN GENERAL.—At the election of a resi- Emergency Deficit Control Act of 1985. any taxpayer by reason of subsection (a) dent not a citizen of the United States, prop- (2) In applying paragraph (1), the change in shall be reduced (but not below zero) by erty— outlays resulting from provisions of this $600,000. ‘‘(A) which was held by such resident on title revising and extending the limits on ‘‘(c) PROPERTY TREATED AS HELD.—For pur- the date the individual first became a resi- discretionary spending set forth in section poses of this section, except as otherwise dent of the United States during the period 601(a)(2) of the Congressional Budget Act of provided by the Secretary, an individual of long-term residency to which the treat- 1974 shall be computed as follows: shall be treated as holding— ment under subsection (a) relates, and (A) For fiscal years 1996 through 1998, by ‘‘(1) all property which would be includible ‘‘(B) which is treated as sold under sub- comparing the outlay limit resulting from in his gross estate under chapter 11 were section (a), this title for each year with the outlay limit such individual to die at the time the prop- shall be treated as having a basis on such for that year in effect immediately prior to erty is treated as sold, date of not less than the fair market value of enactment of this Act. ‘‘(2) any other interest in a trust which the such property on such date. (B) For fiscal years 1999 and 2000, by com- individual is treated as holding under the ‘‘(2) ELECTION.—Such an election shall paring the outlay limit resulting from this rules of section 679(e) (determined by treat- apply to all property described in paragraph title for each year with the limit for fiscal ing such section as applying to foreign and (1), and, once made, shall be irrevocable. year 1998 in effect immediately prior to en- domestic trusts), and ‘‘(h) DEFERRAL OF TAX ON CLOSELY HELD actment of this Act. ‘‘(3) any other interest in property speci- BUSINESS INTERESTS.—The District Director (3) In applying paragraph (1), the change in fied by the Secretary as necessary or appro- may enter into an agreement with any indi- outlays resulting from provisions of this priate to carry out the purposes of this sec- vidual which permits such individual to title extending the limits on spending from tion. defer payment for not more than 5 years of the Violent Crime Reduction Trust Fund set ‘‘(d) EXCEPTIONS.—The following property any tax imposed by subsection (a) by reason forth in section 251A(b)(1) of the Balanced shall not be treated as sold for purposes of of holding any interest in a closely held busi- Budget and Emergency Deficit Control Act this section: ness (as defined in section 6166(b)) other than of 1985 shall be computed by comparing the ‘‘(1) UNITED STATES REAL PROPERTY INTER- a United States real property interest de- outlay limit resulting from this title for ESTS.—Any United States real property in- scribed in subsection (d)(1). each year with the level of outlays for that terest (as defined in section 897(c)(1)), other ‘‘(i) REGULATIONS.—The Secretary shall year referred to in the last 2 sentences of than stock of a United States real property prescribe such regulations as may be nec- section 251A(b)(1) of such Act as in effect im- holding corporation which does not, on the essary or appropriate to carry out the pur- mediately before the enactment of this Act. date the individual relinquishes his citizen- poses of this section. (b) Except as provided in subsection (a), no ship or ceases to be subject to tax as a resi- ‘‘(j) CROSS REFERENCE.— statutory reduction in the discretionary dent, meet the requirements of section spending limits shall be counted in estimates 897(c)(2). ‘‘For termination of United States citizen- under section 252(d) of the Balanced Budget ‘‘(2) INTEREST IN CERTAIN RETIREMENT ship for tax purposes, see section and Emergency Deficit Control Act of 1985. PLANS.— 7701(a)(47).’’ SEC. 410. CLARIFICATION OF ORDER IN WHICH ‘‘(A) IN GENERAL.—Any interest in a quali- (b) DEFINITION OF TERMINATION OF UNITED ADJUSTMENTS TO DISCRETIONARY fied retirement plan (as defined in section STATES CITIZENSHIP.—Section 7701(a) of such SPENDING LIMITS ARE TO BE MADE. 4974(d)), other than any interest attributable Code is amended by adding at the end the In the OMB final sequestration report for to contributions which are in excess of any following new paragraph: fiscal year 1996— limitation or which violate any condition for ‘‘(47) TERMINATION OF UNITED STATES CITI- (1) all adjustments required by section tax-favored treatment. ZENSHIP.—An individual shall not cease to be 251(b)(2) made after the preview report for ‘‘(B) FOREIGN PENSION PLANS.— treated as a United States citizen before the April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4295

date on which the individual’s citizenship is ‘‘(A) the grantor in the case of a reportable ‘‘(f) MODIFICATION OF RETURN REQUIRE- treated as relinquished under section event described in subparagraph (A) or (E) of MENTS.—The Secretary is authorized to sus- 877A(e)(1).’’ paragraph (3), pend or modify any requirement of this sec- (c) CONFORMING AMENDMENTS.— ‘‘(B) the transferor in the case of a report- tion if the Secretary determines that the (1) Section 877 of such Code is amended by able event described in paragraph (3)(B) United States has no significant tax interest adding at the end the following new sub- other than a transfer by reason of death, in obtaining the required information.’’ section: ‘‘(C) the trustee of the domestic trust in (b) PENALTIES.—Section 6677 of such Code ‘‘(f) TERMINATION.—This section shall not the case of a reportable event described in (relating to failure to file information re- apply to any individual who is subject to the paragraph (3)(C), and turns with respect to certain foreign trusts) provisions of section 877A.’’ ‘‘(D) the executor of the decedent’s estate is amended to read as follows: in the case of a transfer by reason of death. (2) Paragraph (10) of section 7701(b) of such ‘‘SEC. 6677. FAILURE TO FILE INFORMATION Code is amended by adding at the end the ‘‘(b) TRUST REPORTING REQUIREMENTS.—If a WITH RESPECT TO CERTAIN FOR- following new sentence: ‘‘This paragraph foreign trust, at any time during a taxable EIGN TRUSTS. shall not apply to any individual who is sub- year of such trust— ‘‘(a) FAILURE TO REPORT CERTAIN ject to the provisions of section 877A.’’ ‘‘(1) has a grantor who is a United States EVENTS.— (d) CLERICAL AMENDMENT.—The table of person and— ‘‘(1) IN GENERAL.—In the case of a report- sections for subpart A of part II of sub- ‘‘(A) such grantor is treated as the owner able event described in any subparagraph of chapter N of chapter 1 of such Code is of any portion of such trust under the rules section 6048(a)(3) for which a responsible amended by inserting after the item relating of subpart E of part I of subchapter J of party does not file a written notice meeting to section 877 the following new item: chapter 1, or the requirements of section 6048(a)(2) within ‘‘(B) any portion of such trust would be in- ‘‘Sec. 877A. Tax responsibilities of expatria- the time specified in section 6048(a)(1), the cluded in the gross estate of such grantor if tion.’’ responsible party shall pay a penalty of the grantor were to die at such time, or $10,000. If any failure described in the preced- (e) EFFECTIVE DATE.—The amendments ‘‘(2) directly or indirectly distributes, cred- ing sentence continues for more than 90 days made by this section shall apply to— its, or allocates money or property to any after the day on which the Secretary mails (1) United States citizens who relinquish United States person (whether or not the notice of such failure to the responsible (within the meaning of section 877A(e)(1) of trust has a grantor described in paragraph party, such party shall pay a penalty (in ad- the Internal Revenue Code of 1986, as added (1)), dition to the $10,000 amount) of $10,000 for by this section) United States citizenship on then such trust shall meet the requirements each 30-day period (or fraction thereof) dur- or after February 6, 1995, and of subsection (c) (relating to trust informa- ing which such failure continues after the (2) long-term residents (as defined in such tion and agent) and subsection (d) (relating expiration of such 90-day period. section) who cease to be subject to tax as to annual return). ‘‘(2) 35-PERCENT PENALTY.—In the case of a residents of the United States on or after ‘‘(c) CONTENTS OF SECTION 6048 STATE- reportable event described in subparagraph such date. MENT.— (A), (B), or (C) of section 6048(a)(3) (other SEC. 502. IMPROVED INFORMATION REPORTING ‘‘(1) IN GENERAL.—The requirements of this than a transfer by reason of death), the ag- ON FOREIGN TRUSTS. subsection are met if the trust files with the gregate amount of the penalties under para- (a) IN GENERAL.—Section 6048 of the Inter- Secretary a statement which contains such graph (1) shall not be less than an amount nal Revenue Code of 1986 (relating to returns information as the Secretary may prescribe equal to 35 percent of the gross value of the as to certain foreign trusts) is amended to and which— property involved in such event (determined read as follows: ‘‘(A) identifies a United States person who as of the date of the event). ‘‘SEC. 6048. INFORMATION WITH RESPECT TO is the trust’s limited agent to provide the ‘‘(3) RESPONSIBLE PARTY.—For purposes of CERTAIN FOREIGN TRUSTS. Secretary with such information that rea- this subsection, the term ‘responsible party’ ‘‘(a) NOTICE OF CERTAIN EVENTS.— sonably should be available to the trust for has the meaning given to such term by sec- ‘‘(1) GENERAL RULE.—On or before the 90th purposes of applying sections 7602, 7603, and tion 6048(a)(4). day (or such later day as the Secretary may 7604 with respect to any request by the Sec- ‘‘(b) FAILURE TO MAKE CERTAIN STATE- prescribe) after any reportable event, the re- retary to examine trust records or produce MENTS AND RETURNS.— sponsible party shall— testimony related to any transaction by the ‘‘(1) IN GENERAL.—In the case of any failure ‘‘(A) notify each trustee of the trust of the trust or with respect to any summons by the to meet the requirements of section 6048(b), requirements of subsection (b), and Secretary for such records or testimony, and the appropriate tax treatment of any trust ‘‘(B) provide written notice of such event ‘‘(B) contains an agreement to comply with transactions or operations shall be deter- to the Secretary in accordance with para- the requirements of subsection (d). mined by the Secretary in the Secretary’s graph (2). ‘‘(2) SPECIAL RULE.—A foreign trust which sole discretion from the Secretary’s own ‘‘(2) CONTENTS OF NOTICE.—The notice re- appoints an agent described in paragraph knowledge or from such information as the quired by paragraph (1)(B) shall contain such (1)(A) shall not be considered to have an of- Secretary may obtain through testimony or information as the Secretary may prescribe, fice or a permanent establishment in the otherwise. including— United States solely because of the activities ‘‘(2) MONETARY PENALTY.—In the case of ‘‘(A) the amount of money or other prop- of such agent pursuant to this section. For any failure to meet the requirements of sec- erty (if any) transferred to the trust in con- purposes of this section, the appearance of tion 6048(b) with respect to a trust described nection with the reportable event, persons or production of records by reason of in such section by reason of paragraph (1) ‘‘(B) the identity of the trust and of each the creation of the agency shall not subject thereof, the grantor described in such para- trustee and beneficiary (or class of bene- such persons or records to legal process for graph (1) shall pay a penalty of $10,000 for ficiaries) of the trust, and any purpose other than determining the cor- each taxable year with respect to which the ‘‘(C) a statement that each trustee of the rect treatment under this title of the activi- foreign trust fails to meet such require- trust has been informed of the requirements ties and operations of the trust. ments. If any failure described in the preced- of subsection (b). ‘‘(d) ANNUAL RETURNS AND STATEMENTS.— ing sentence continues for more than 90 days ‘‘(3) REPORTABLE EVENT.—For purposes of The requirements of this subsection are met after the day on which the Secretary mails this subsection, the term ‘reportable event’ if— notice of such failure to such grantor, such means— ‘‘(1) the trust makes a return for the tax- grantor shall pay a penalty (in addition to ‘‘(A) the creation of any foreign trust by a able year which sets forth a full and com- any other penalty) of $10,000 for each 30-day United States person, plete accounting of all trust activities and period (or fraction thereof) during which ‘‘(B) the transfer of any money or property operations for the taxable year, and contains such failure continues after the expiration of to a foreign trust by a United States person, such other information as the Secretary may such 90-day period. including a transfer by reason of death, prescribe; and ‘‘(c) REASONABLE CAUSE EXCEPTION.—No ‘‘(C) a domestic trust becoming a foreign ‘‘(2) the trust furnishes such information penalty shall be imposed by this section on trust, as the Secretary may prescribe to each Unit- any failure which is shown to be due to rea- ‘‘(D) the death of a citizen or resident of ed States person— sonable cause and not due to willful neglect. the United States who is a grantor of a for- ‘‘(A) who is treated as the owner of any The fact that a foreign jurisdiction would eign trust, and portion of such trust under the rules of sub- impose a civil or criminal penalty on the ‘‘(E) the residency starting date (within part E of part I of subchapter J of chapter 1, taxpayer (or any other person) for disclosing the meaning of section 7701(b)(2)(A)) of a ‘‘(B) to whom any item with respect to the the requested documentation is not reason- grantor of a foreign trust subject to tax taxable year is credited or allocated, or able cause. under section 679(a)(3). ‘‘(C) who receives a distribution from such ‘‘(d) DEFICIENCY PROCEDURES NOT TO Subparagraphs (A) and (B) shall not apply trust with respect to the taxable year. APPLY.—Subchapter B of chapter 63 (relating with respect to a trust described in section ‘‘(e) TIME AND MANNER OF FILING INFORMA- to deficiency procedures for income, estate, 404(a)(4) or 404A. TION.—Any notice, statement, or return re- gift, and certain excise taxes) shall not apply ‘‘(4) RESPONSIBLE PARTY.—For purposes of quired under this section shall be made at in respect of the assessment or collection of this subsection, the term ‘responsible party’ such time and in such manner as the Sec- any penalty imposed by this section.’’ means— retary shall prescribe. (c) CLERICAL AMENDMENTS.— H 4296 CONGRESSIONAL RECORD — HOUSE April 5, 1995 (1) The table of sections for subpart B of section 6048 as having transferred such prop- ‘‘(C) in the case of a foreign trust or estate, part III of subchapter A of chapter 61 of such erty, and any undistributed income (includ- such trust or estate has a United States ben- Code is amended by striking the item relat- ing all realized and unrealized gains) attrib- eficiary (within the meaning of paragraph ing to section 6048 and inserting the follow- utable thereto, to the foreign trust imme- (1)). ing new item: diately after becoming a United States resi- ‘‘(e) DETERMINATION OF BENEFICIARIES’ IN- dent. For this purpose, a nonresident alien ‘‘Sec. 6048. Information with respect to cer- TERESTS IN TRUST.— shall be treated as becoming a resident of tain foreign trusts.’’ ‘‘(1) GENERAL RULE.—For purposes of this the United States on the residency starting section, a beneficiary’s interest in a foreign (2) The table of sections for part I of sub- date (within the meaning of section trust shall be based upon all relevant facts chapter B of chapter 68 of such Code is 7701(b)(2)(A)). and circumstances, including the terms of amended by striking the item relating to ‘‘(b) BENEFICIARIES TREATED AS TRANSFER- the trust instrument and any letter of wishes section 6677 and inserting the following new ORS IN CERTAIN CASES.—For purposes of this or similar document, historical patterns of item: section and section 6048, if— trust distributions, and the existence of and ‘‘(1) a citizen or resident of the United ‘‘Sec. 6677. Failure to file information with functions performed by a trust protector or States who is treated as the owner of any respect to certain foreign any similar advisor. portion of a trust under subsection (a) dies, trusts.’’ ‘‘(2) SPECIAL RULE.—In the case of bene- ‘‘(2) property is transferred to a foreign ficiaries whose interests in a trust cannot be (d) EFFECTIVE DATES.— trust by reason of the death of a citizen or determined under paragraph (1)— (1) IN GENERAL.—The amendments made by resident of the United States, or ‘‘(A) the beneficiary having the closest de- this section shall apply— ‘‘(3) a domestic trust to which any United gree of kinship to the grantor shall be treat- (A) to reportable events occurring on or States person made a transfer becomes a for- ed as holding the remaining interests in the after February 6, 1995, and eign trust, trust not determined under paragraph (1) to (B) to the extent such amendments require then, except as otherwise provided in regula- be held by any other beneficiary, and reporting for any taxable year under section tions, the trust beneficiaries shall be treated ‘‘(B) if 2 or more beneficiaries have the 6048(b) of the Internal Revenue Code of 1986 as having transferred to such trust (as of the same degree of kinship to the grantor, such (as added by this section), to taxable years date of the applicable event under paragraph remaining interests shall be treated as held beginning after the date of the enactment of (1), (2), or (3)) their respective interests (as equally by such beneficiaries. this Act. determined under subsection (e)) in the prop- ‘‘(3) CONSTRUCTIVE OWNERSHIP.—If a bene- (2) NOTICES.—For purposes of section erty involved. ficiary of a foreign trust is a corporation, 6048(a) of such Code, the 90th day referred to ‘‘(c) TRUSTS ACQUIRING UNITED STATES partnership, trust, or estate, the sharehold- therein shall in no event be treated as being BENEFICIARIES.—If— ers, partners, or beneficiaries shall be earlier than the 90th day after the date of ‘‘(1) subsection (a) applies to a trust for the deemed to be the trust beneficiaries for pur- the enactment of this Act. transferor’s taxable year, and poses of this section. SEC. 503. MODIFICATION OF RULES RELATING TO ‘‘(2) subsection (a) would have applied to ‘‘(4) TAXPAYER RETURN POSITION.—A tax- FOREIGN TRUSTS HAVING ONE OR the trust for the transferor’s immediately payer shall clearly indicate on its income MORE UNITED STATES BENE- preceding taxable year but for the fact that FICIARIES. tax return— for such preceding taxable year there was no ‘‘(A) the methodology used to determine (a) IN GENERAL.—Section 679 of the Inter- United States beneficiary for any portion of nal Revenue Code of 1986 (relating to foreign that taxpayer’s trust interest under this sec- the trust, trusts having one or more United States tion, and beneficiaries) is amended to read as follows: then, for purposes of this subtitle, the trans- ‘‘(B) if the taxpayer knows (or has reason feror shall be treated as having received as to know) that any other beneficiary of such ‘‘SEC. 679. FOREIGN TRUSTS HAVING ONE OR trust is using a different methodology to de- MORE UNITED STATES BENE- an accumulation distribution taxable under FICIARIES. subpart D an amount equal to the undistrib- termine such beneficiary’s trust interest under this section. ‘‘(a) TRANSFEROR TREATED AS OWNER.— uted net income (as determined under sec- ‘‘(f) REGULATIONS.—The Secretary shall ‘‘(1) IN GENERAL.—A United States person tion 665(a) as of the close of such imme- who directly or indirectly transfers property diately preceding taxable year) attributable prescribe such regulations as may be nec- to a foreign trust (other than a trust de- to the portion of the trust referred to in sub- essary or appropriate to carry out the pur- scribed in section 404(a)(4) or section 404A) section (a). poses of this section.’’ shall be treated as the owner for his taxable ‘‘(d) TRUSTS TREATED AS HAVING A UNITED (b) EFFECTIVE DATE.— year of the portion of such trust attributable STATES BENEFICIARY.— (1) IN GENERAL.—Except as otherwise pro- to such property if for such year there is a ‘‘(1) IN GENERAL.—For purposes of this sec- vided in this subsection, the amendments United States beneficiary of such trust. tion, a trust shall be treated as having a made by this section shall apply to taxable years ending on or after February 6, 1995. ‘‘(2) EXCEPTION.— United States beneficiary for the taxable (2) SECTION 679(a).—Paragraphs (2) and (3) of ‘‘(A) IN GENERAL.—Paragraph (1) shall not year unless— apply to any sale or exchange of property to ‘‘(A) under the terms of the trust, no part section 679(a) of the Internal Revenue Code a trust if— of the income or corpus of the trust may be of 1986 (as added by this section) shall apply ‘‘(i) the trust pays fair market value for paid or accumulated during the taxable year to— such property, and to or for the benefit of a United States per- (A) any trust created on or after February ‘‘(ii) all of the gain to the transferor is rec- son, and 6, 1995, and ognized at the time of transfer. ‘‘(B) if the trust were terminated at any (B) the portion of any trust created before such date which is attributable to actual ‘‘(B) CERTAIN OBLIGATIONS NOT TAKEN INTO time during the taxable year, no part of the transfers of property to the trust on or after ACCOUNT.—For purposes of subparagraph (A), income or corpus of such trust could be paid in determining whether the transferor re- to or for the benefit of a United States per- such date. ceived fair market value, there shall not be son. (3) SECTION 679(b).— taken into account— To the extent provided by the Secretary, for (A) IN GENERAL.—Paragraphs (1) and (2) of ‘‘(i) any obligation of— purposes of this subsection, the term ‘United section 679(b) of such Code (as so added) shall ‘‘(I) the trust, States person’ includes any person who was a apply to— ‘‘(II) any grantor or beneficiary of the United States person at any time during the (i) any trust created on or after the date of trust, or existence of the trust. the enactment of this Act, and (ii) the portion of any trust created before ‘‘(III) any person who is related (within the ‘‘(2) ATTRIBUTION OF OWNERSHIP.—For pur- meaning of section 643(i)(3)) to any grantor poses of paragraph (1), an amount shall be such date which is attributable to actual or beneficiary of the trust, and treated as paid or accumulated to or for the transfers of property to the trust on or after ‘‘(ii) except as provided in regulations, any benefit of a United States person if such such date. obligation which is guaranteed by a person amount is paid to or accumulated for a for- (B) SECTION 679(b)(3).—Section 679(b)(3) of described in clause (i). eign corporation, foreign partnership, or for- such Code (as so added) shall take effect on February 6, 1995, without regard to when the ‘‘(C) TREATMENT OF DEEMED SALE ELECTION eign trust or estate, and— property was transferred to the trust. UNDER SECTION 1057.—For purposes of subpara- ‘‘(A) in the case of a foreign corporation, graph (A), a transfer with respect to which more than 50 percent of the total combined SEC. 504. FOREIGN PERSONS NOT TO BE TREAT- an election under section 1057 is made shall voting power of all classes of stock of such ED AS OWNERS UNDER GRANTOR not be treated as a sale or exchange. corporation entitled to vote is owned (within TRUST RULES. ‘‘(3) SPECIAL RULES APPLICABLE TO FOREIGN the meaning of section 958(a)) or is consid- (a) IN GENERAL.—So much of section 672(f) GRANTOR WHO LATER BECOMES A UNITED ered to be owned (within the meaning of sec- of the Internal Revenue Code of 1986 (relat- STATES PERSON.—A nonresident alien individ- tion 958(b)) by United States shareholders (as ing to special rule where grantor is foreign ual who becomes a United States resident defined in section 951(b)), person) as precedes paragraph (2) is amended within 5 years after directly or indirectly ‘‘(B) in the case of a foreign partnership, a to read as follows: transferring property to a foreign trust shall United States person is a partner of such ‘‘(f) SUBPART NOT TO RESULT IN FOREIGN be treated for purposes of this section and partnership, or OWNERSHIP.— April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4297

‘‘(1) IN GENERAL.—Notwithstanding any son during any taxable year if the amount (a) of section 668 of the Internal Revenue other provision of this subpart, this subpart thereof is less than $2,500. Code of 1986 (relating to interest charge on shall apply only to the extent such applica- ‘‘(d) REGULATIONS.—The Secretary may accumulation distributions from foreign tion results in an amount being included (di- prescribe such rules as may be necessary or trusts) is amended to read as follows: rectly or through 1 or more entities) in the appropriate to carry out the purposes of this ‘‘(a) GENERAL RULE.—For purposes of the gross income of a citizen or resident of the section.’’ tax determined under section 667(a)— United States or a domestic corporation. The (b) CLERICAL AMENDMENT.—The table of ‘‘(1) SUM OF INTEREST CHARGES FOR EACH preceding sentence shall not apply to any sections for such subchapter C is amended by THROWBACK YEAR.—The interest charge (de- portion of an investment trust if such trust adding at the end the following new item: termined under paragraph (2)) with respect is treated as a trust for purposes of this title and the grantor of such portion is the sole ‘‘Sec. 7874. Purported gifts by partnerships to any distribution is the sum of the interest beneficiary of such portion.’’ and foreign corporations.’’ charges for each of the throwback years to (b) CREDIT FOR CERTAIN TAXES.—Paragraph (c) EFFECTIVE DATE.—The amendments which such distribution is allocated under (2) of section 665(d) of such Code is amended made by this section shall apply to amounts section 666(a). by adding at the end the following new sen- received after the date of the enactment of ‘‘(2) INTEREST CHARGE FOR YEAR.—Except as tence: ‘‘Under rules or regulations prescribed this Act. provided in paragraph (6), the interest charge by the Secretary, in the case of any foreign SEC. 506. INFORMATION REPORTING REGARDING for any throwback year on such year’s allo- trust of which the settlor or another person LARGE FOREIGN GIFTS. cable share of the partial tax computed would be treated as owner of any portion of (a) IN GENERAL.—Subpart A of part III of under section 667(b) with respect to any dis- the trust under subpart E but for section subchapter A of chapter 61 of the Internal tribution shall be determined for the pe- 672(f), the term ‘taxes imposed on the trust’ Revenue Code of 1986 is amended by inserting riod— includes the allocable amount of any in- after section 6039E the following new section: ‘‘(A) beginning on the due date for the come, war profits, and excess profits taxes ‘‘SEC. 6039F. NOTICE OF LARGE GIFTS RECEIVED throwback year, and imposed by any foreign country or posses- FROM FOREIGN PERSONS. ‘‘(B) ending on the due date for the taxable sion of the United States on the settlor or ‘‘(a) IN GENERAL.—If the value of the aggre- year of the distribution, such other person in respect of trust in- gate foreign gifts received by a United States by using the rates and method applicable come.’’ person (other than an organization described under section 6621 for underpayments of tax (c) DISTRIBUTIONS BY CERTAIN FOREIGN in section 501(c) and exempt from tax under for such period. For purposes of the preced- TRUSTS THROUGH NOMINEES.— section 501(a)) during any taxable year ex- (1) Section 643 of such Code is amended by ing sentence, the term ‘due date’ means the ceeds $100,000, such United States person date prescribed by law (determined without adding at the end the following new sub- shall furnish (at such time and in such man- regard to extensions) for filing the return of section: ner as the Secretary shall prescribe) such in- the tax imposed by this chapter for the tax- ‘‘(h) DISTRIBUTIONS BY CERTAIN FOREIGN formation as the Secretary may prescribe re- able year. TRUSTS THROUGH NOMINEES.—For purposes of garding each foreign gift received during this part, any amount paid to a United such year. ‘‘(3) ALLOCABLE PARTIAL TAX.—For pur- States person which is derived directly or in- ‘‘(b) FOREIGN GIFT.—For purposes of this poses of paragraph (2), a throwback year’s al- directly from a foreign trust of which the section, the term ‘foreign gift’ means any locable share of the partial tax is an amount payor is not the grantor shall be deemed in amount received from a person other than a equal to such partial tax multiplied by the the year of payment to have been directly United States person which the recipient fraction— paid by the foreign trust to such United treats as a gift or bequest. Such term shall ‘‘(A) the numerator of which is the amount States person.’’ not include any qualified transfer (within deemed by section 666(a) to be distributed on (2) Section 665 of such Code is amended by the meaning of section 2503(e)(2)). the last day of such throwback year, and striking subsection (c). ‘‘(c) PENALTY FOR FAILURE TO FILE INFOR- ‘‘(B) the denominator of which is the accu- (d) EFFECTIVE DATE.—The amendments MATION.— made by this section shall take effect on the mulation distribution taken into account ‘‘(1) IN GENERAL.—If a United States person date of the enactment of this Act. under section 666(a). fails to furnish the information required by (e) TRANSITIONAL RULE.—If— ‘‘(4) THROWBACK YEAR.—For purposes of (1) by reason of the amendments made by subsection (a) with respect to any foreign this subsection, the term ‘throwback year’ this section, any person other than a United gift within the time prescribed therefor (in- means any taxable year to which a distribu- States person ceases to be treated as the cluding extensions)— tion is allocated under section 666(a). ‘‘(A) the tax consequences of the receipt of owner of a portion of a domestic trust, and ‘‘(5) PERIODS OF NONRESIDENCE.—The period (2) before January 1, 1996, such trust be- such gift shall be determined by the Sec- under paragraph (2) shall not include any retary in the Secretary’s sole discretion comes a foreign trust, or the assets of such portion thereof during which the beneficiary from the Secretary’s own knowledge or from trust are transferred to a foreign trust, was not a citizen or resident of the United such information as the Secretary may ob- no tax shall be imposed by section 1491 of the States. tain through testimony or otherwise, and Internal Revenue Code of 1986 by reason of ‘‘(6) THROWBACK YEARS BEFORE 1996.—In the such trust becoming a foreign trust or the ‘‘(B) such United States person shall pay (upon notice and demand by the Secretary case of any throwback year beginning before assets of such trust being transferred to a 1996— foreign trust. and in the same manner as tax) an amount equal to 5 percent of the amount of such for- ‘‘(A) interest for the portion of the period SEC. 505. GRATUITOUS TRANSFERS BY PARTNER- described in paragraph (2) which occurs be- SHIPS AND FOREIGN CORPORA- eign gift for each month for which the fail- TIONS. ure continues (not to exceed 25 percent of fore the first taxable year beginning after (a) IN GENERAL.—Subchapter C of chapter such amount in the aggregate). 1995 shall be determined by using an interest 80 of the Internal Revenue Code of 1986 (re- ‘‘(2) REASONABLE CAUSE EXCEPTION.— Para- rate of 6 percent and no compounding, and lating to provisions affecting more than one graph (1) shall not apply to any failure to re- ‘‘(B) interest for the remaining portion of subtitle) is amended by adding at the end the port a foreign gift if the United States per- such period shall be determined as if the par- following new section: son shows that the failure is due to reason- tial tax computed under section 667(b) for ‘‘SEC. 7874. PURPORTED GIFTS BY PARTNER- able cause and not due to willful neglect. the throwback year were increased (as of the SHIPS AND FOREIGN CORPORA- ‘‘(d) REGULATIONS.—The Secretary shall beginning of such first taxable year) by the TIONS. prescribe such regulations as may be nec- amount of the interest determined under ‘‘(a) IN GENERAL.—Any property (including essary to carry out the purposes of this sec- subparagraph (A).’’ money) that is purportedly a direct or indi- tion.’’. (b) RULE WHEN INFORMATION NOT AVAIL- rect gift by a partnership or a foreign cor- (b) CLERICAL AMENDMENT.—The table of ABLE.—Subsection (d) of section 666 of such poration to a person who is not a partner of sections for such subpart is amended by in- Code is amended by adding at the end the the partnership or a shareholder of the cor- serting after the item relating to section following: ‘‘In the case of a distribution from poration, respectively, may be rechar- 6039E the following new item: acterized by the Secretary to prevent the a foreign trust to which section 6048(b) ap- avoidance of tax. The Secretary may not ‘‘Sec. 6039F. Notice of large gifts received plies, adequate records shall not be consid- recharacterize gifts made for bona fide busi- from foreign persons.’’ ered to be available for purposes of the pre- ness or charitable purposes. (c) EFFECTIVE DATE.—The amendments ceding sentence unless such trust meets the ‘‘(b) STATEMENTS ON RECIPIENT’S RETURN.— made by this section shall apply to amounts requirements referred to in such section. If a A taxpayer who receives a purported gift received after the date of the enactment of taxpayer is not able to demonstrate when a subject to subsection (a) shall attach a state- this Act in taxable years ending after such trust was created, the Secretary may use ment to his income tax return for the year of date. any reasonable approximation based on receipt that identifies the property received SEC. 507. MODIFICATION OF RULES RELATING TO available evidence.’’ and describes fully the circumstances sur- FOREIGN TRUSTS WHICH ARE NOT (c) ABUSIVE TRANSACTIONS.—Section 643(a) rounding the purported gift. GRANTOR TRUSTS. of such Code is amended by inserting after ‘‘(c) EXEMPTION.—Subsection (a) shall not (a) MODIFICATION OF INTEREST CHARGE ON paragraph (6) the following new paragraph: apply to purported gifts received by any per- ACCUMULATION DISTRIBUTIONS.—Subsection H 4298 CONGRESSIONAL RECORD — HOUSE April 5, 1995

‘‘(7) ABUSIVE TRANSACTIONS.—The Sec- ning after the date of the enactment of this ‘‘(13) The term ‘privatization date’ means retary shall prescribe such regulations as Act. the date on which 100 percent of ownership of may be necessary or appropriate to carry out (2) INTEREST CHARGE.—The amendment the Corporation has been transferred to pri- the purposes of this part, including regula- made by subsection (a) shall apply to inter- vate investors.’’; tions to prevent avoidance of such pur- est for throwback years beginning before, on, (3) by inserting after paragraph (17) (as re- poses.’’ or after the date of the enactment of this designated) the following new paragraph: (d) TREATMENT OF USE OF TRUST PROP- Act. ‘‘(18) The term ‘transition date’ means ERTY.—Section 643 of such Code (relating to SEC. 508. RESIDENCE OF ESTATES AND TRUSTS. July 1, 1993.’’; and definitions applicable to subparts A, B, C, (a) TREATMENT AS UNITED STATES PER- (4) by redesignating the unredesignated and D) is amended by adding at the end the SON.—Paragraph (30) of section 7701(a) of the paragraph (14) as paragraph (19). following new subsection: Internal Revenue Code of 1986 is amended by ‘‘(i) USE OF FOREIGN TRUST PROPERTY.— striking subparagraph (D) and by inserting SEC. 704. EMPLOYEES OF THE CORPORATION. ‘‘(1) GENERAL RULE.—For purposes of sub- after subparagraph (C) the following: (a) PARAGRAPH (2).—Paragraphs (1) and (2) parts B, C, and D, if, during a taxable year of ‘‘(D) any estate or trust if— of section 1305(e) (42 U.S.C. 2297b–4(e)(1)(2)) a foreign trust a trust participant of such ‘‘(i) a court within the United States is are amended to read as follows: trust directly or indirectly uses any of the able to exercise primary supervision over the ‘‘(1) IN GENERAL.—It is the purpose of this trust’s property, the use value for such tax- administration of the estate or trust, and subsection to ensure that the privatization able year shall be treated as an amount paid ‘‘(ii) in the case of a trust, one or more of the Corporation shall not result in any ad- to such participant (other than from income United States fiduciaries have the authority verse effects on the pension benefits of em- for the taxable year) within the meaning of to control all substantial decisions of the ployees at facilities that are operated, di- sections 661(a)(2) and section 662(a)(2). trust.’’ rectly or under contract, in the performance ‘‘(2) EXEMPTION.—Paragraph (1) shall not (b) CONFORMING AMENDMENT.—Paragraph of the functions vested in the Corporation. apply to any trust participant as to whom (31) of section 7701(a) of such Code is amend- ‘‘(2) APPLICABILITY OF EXISTING COLLECTIVE the aggregate use value during the taxable ed to read as follows: BARGAINING AGREEMENT.—The Corporation year does not exceed $2,500. ‘‘(31) FOREIGN ESTATE OR TRUST.—The term shall abide by the terms of the collective ‘‘(3) DEFINITIONS AND SPECIAL RULES.—For ‘foreign estate’ or ‘foreign trust’ means any bargaining agreement in effect on the privat- purposes of this subsection— estate or trust other than an estate or trust ‘‘(A) USE VALUE.—Except as provided in described in section 7701(a)(30)(D).’’ ization date at each individual facility.’’. ARAGRAPH subparagraph (B), the term ‘use value’ means (c) EFFECTIVE DATE.—The amendments (b) P (4).—Paragraph (4) of sec- the fair market value of the use of property made by this section shall apply— tion 1305(e) (42 U.S.C. 2297b–4(e)(4)) is amend- reduced by any amount paid for such use by (1) to taxable years beginning after Decem- ed— the trust participant or by any person who is ber 31, 1996, and (1) by striking ‘‘AND DETAILEES’’ in the related to such participant. (2) at the election of the trustee of a trust, heading; ‘‘(B) SPECIAL RULE FOR CASH AND CASH to taxable years beginning after the date of (2) by striking the first sentence; EQUIVALENT.—A direct or indirect loan of the enactment of this Act and on or before (3) in the second sentence, by inserting cash, or cash equivalent, by a foreign trust December 31, 1996. ‘‘from other Federal employment’’ after shall be treated as a use of trust property by Such an election, once made, shall be irrev- ‘‘transfer to the Corporation’’; and the borrower and the full amount of the loan ocable. (4) by striking the last sentence. principal shall be the use value. TITLE VI—EXTENSION OF AUTHORITY OF ‘‘(C) USE BY RELATED PARTY.— SEC. 705. MARKETING AND CONTRACTING AU- FEDERAL COMMUNICATIONS COMMIS- THORITY. ‘‘(i) Use by a person who is related to a SION TO USE COMPETITIVE BIDDING trust participant shall be treated as use by (a) MARKETING AUTHORITY.—Section 1401(a) the participant. SEC. 601. EXTENSION OF AUTHORITY. (42 U.S.C. 2297c(a)) is amended effective on ‘‘(ii) If property is used by any person who Section 309(j)(11) of the Communications the privatization date (as defined in section is a related person with respect to more than Act of 1934 (47 U.S.C. 309(j)(11)) is amended by 1201(13) of the Atomic Energy Act of 1954)— one trust participant, then the property striking ‘‘September 30, 1998’’ and inserting (1) by amending the subsection heading to shall be treated as used by the trust partici- ‘‘September 30, 2000’’. read ‘‘MARKETING AUTHORITY.—’’; and pant most closely related, by blood or other- TITLE VII—PRIVATIZATION OF THE UNIT- (2) by striking the first sentence. wise, to such person. ED STATES ENRICHMENT CORPORA- (b) TRANSFER OF CONTRACTS.—Section ‘‘(D) PROPERTY INCLUDES CASH AND CASH TION 1401(b) (42 U.S.C. 2297c(b)) is amended— EQUIVALENTS.—The term ‘property’ includes SEC. 701. SHORT TITLE AND REFERENCE. (1) in paragraph (2)(B), by adding at the cash and cash equivalents. (a) SHORT TITLE.—This title may be cited end the following: ‘‘The privatization of the ‘‘(E) TRUST PARTICIPANT.—The term ‘trust as the ‘‘USEC Privatization Act’’. Corporation shall not affect the terms of, or participant’ means each grantor and bene- (b) REFERENCE.—Except as otherwise ex- the rights or obligations of the parties to, ficiary of the trust. pressly provided, whenever in this title an any such power purchase contract.’’; and ‘‘(F) RELATED PERSON.—A person is related amendment or repeal is expressed in terms of (2) by adding at the end the following: to a trust participant if the relationship be- an amendment to, or repeal of, a section or ‘‘(3) EFFECT OF TRANSFER.— tween such persons would result in a dis- other provision, the reference shall be con- ‘‘(A) As a result of the transfer pursuant to allowance of losses under section 267(b) or sidered to be made to a section or other pro- paragraph (1), all rights, privileges, and ben- 707(b). In applying section 267 for purposes of vision of the Atomic Energy Act of 1954 (42 efits under such contracts, agreements, and the preceding sentence— U.S.C. 2011 et seq.). leases, including the right to amend, modify, ‘‘(i) section 267(e) shall be applied as if such SEC. 702. PRODUCTION FACILITY. extend, revise, or terminate any of such con- person or the trust participant were a pass- Paragraph v. of section 11 (42 U.S.C. 2014 v.) tracts, agreements, or leases were irrev- thru entity, is amended by striking ‘‘or the construction ocably assigned to the Corporation for its ex- ‘‘(ii) section 267(b) shall be applied by sub- and operation of a uranium enrichment pro- clusive benefit. stituting ‘at least 10 percent’ for ‘more than duction facility using Atomic Vapor Laser ‘‘(B) Notwithstanding the transfer pursu- 50 percent’ each place it appears, and Isotope Separation technology’’. ant to paragraph (1), the United States shall ‘‘(iii) in determining the family of an indi- SEC. 703. DEFINITIONS. remain obligated to the parties to the con- vidual under section 267(c)(4), such section Section 1201 (42 U.S.C. 2297) is amended— tracts, agreements, and leases transferred shall be treated as including the spouse (and (1) in paragraph (4), by inserting before the pursuant to paragraph (1) for the perform- former spouse) of such individual and of each period the following: ‘‘and any successor cor- ance of the obligations of the United States other person who is treated under such sec- poration established through privatization of thereunder during the term thereof. The Cor- tion as being a member of the family of such the Corporation’’; poration shall reimburse the United States individual or spouse. (2) by redesignating paragraphs (10) for any amount paid by the United States in ‘‘(G) SUBSEQUENT TRANSACTIONS REGARDING through (13) as paragraphs (14) through (17), LOAN PRINCIPAL.—If any loan described in respectively, and by inserting after para- respect of such obligations arising after the subparagraph (B) is taken into account graph (9) the following new paragraphs: privatization date to the extent such amount under paragraph (1), any subsequent trans- ‘‘(10) The term ‘low-level radioactive is a legal and valid obligation of the Corpora- action between the trust and the original waste’ has the meaning given such term in tion then due. borrower regarding the principal of the loan section 102(9) of the Low-Level Radioactive ‘‘(C) After the privatization date, upon any (by way of complete or partial repayment, Waste Policy Amendments Act of 1985 (42 material amendment, modification, exten- satisfaction, cancellation, discharge, or oth- U.S.C. 2021b(9)). sion, revision, replacement, or termination erwise) shall be disregarded for purposes of ‘‘(11) The term ‘mixed waste’ has the mean- of any contract, agreement, or lease trans- this title.’’ ing given such term in section 1004(41) of the ferred under paragraph (1), the United States (e) EFFECTIVE DATES.— Solid Waste Disposal Act (42 U.S.C. 6903(41)). shall be released from further obligation (1) IN GENERAL.—Except as provided in ‘‘(12) The term ‘privatization’ means the under such contract, agreement, or lease, ex- paragraph (2), the amendments made by this transfer of ownership of the Corporation to cept that such action shall not release the section shall apply to taxable years begin- private investors pursuant to chapter 25. United States from obligations arising under April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4299 such contract, agreement, or lease prior to tion from the transition date to the privat- ‘‘(F) take any and all such other actions as such time.’’. ization date shall be direct liabilities of the are permitted by the law of the jurisdiction (c) PRICING.—Section 1402 (42 U.S.C. 2297c– United States.’’. of incorporation of the corporation. 1) is amended to read as follows: (2) Subsection (b) of section 1406 (42 U.S.C. ‘‘(3) TRANSFER OF ASSETS.—For purposes of ‘‘SEC. 1402. PRICING. 2297c–5(b)) is amended— implementing the privatization, the Cor- ‘‘The Corporation shall establish prices for (A) by inserting ‘‘AND PRIVATIZATION’’ after poration may transfer some or all of its as- its products, materials, and services provided ‘‘TRANSITION’’ in the heading; and sets and obligations to the corporation es- to customers on a basis that will allow it to (B) by adding at the end the following: ‘‘As tablished pursuant to this section, includ- attain the normal business objectives of a of the privatization date, any judgment en- ing— profitmaking corporation.’’. tered against the Corporation imposing li- ‘‘(A) all of the Corporation’s assets, includ- (d) LEASING OF GASEOUS DIFFUSION FACILI- ability arising out of the operation of the ing all contracts, agreements, and leases, in- TIES OF DEPARTMENT.—Effective on the pri- Corporation from the transition date to the cluding all uranium enrichment contracts vatization date (as defined in section 1201(13) privatization date shall be considered a judg- and power purchase contracts; of the Atomic Energy Act of 1954), section ment against the United States.’’. ‘‘(B) all funds in accounts of the Corpora- 1403 (42 U.S.C. 2297c–2) is amended by adding (3) Subsection (d) of section 1406 (42 U.S.C. tion held by the Treasury or on deposit with at the end the following: 2297c–5(d)) is amended— any bank or other financial institution; ‘‘(h) LOW-LEVEL RADIOACTIVE WASTE AND (A) by inserting ‘‘AND PRIVATIZATION’’ after ‘‘(C) all of the Corporation’s rights, duties, MIXED WASTE.— ‘‘TRANSITION’’ in the heading; and and obligations, accruing subsequent to the ‘‘(1) RESPONSIBILITY OF THE DEPARTMENT; (B) by striking ‘‘the transition date’’ and privatization date, under the power purchase COSTS.— inserting ‘‘the privatization date (or, in the contracts covered by section 1401(b)(2)(B); ‘‘(A) With respect to low-level radioactive event the privatization date does not occur, and waste and mixed waste generated by the Cor- the transition date)’’. ‘‘(D) all of the Corporation’s rights, duties, poration as a result of the operation of the (f) TRANSFER OF URANIUM.—Title II (42 and obligations, accruing subsequent to the facilities and related property leased by the U.S.C. 2297 et seq.) is amended by redesignat- privatization date, under the lease agree- Corporation pursuant to subsection (a) or as ing section 1408 as section 1409 and by insert- ment between the Department and the Cor- a result of treatment of such wastes at a lo- ing after section 1407 the following: poration executed by the Department and cation other than the facilities and related ‘‘SEC. 1408. TRANSFER OF URANIUM. the Corporation pursuant to section 1403. property leased by the Corporation pursuant ‘‘The Secretary may, before the privatiza- ‘‘(4) MERGER OR CONSOLIDATION.—For pur- to subsection (a) the Department, at the re- tion date, transfer to the Corporation with- poses of implementing the privatization, the quest of the Corporation, shall— out charge raw uranium, low-enriched ura- Corporation may merge or consolidate with ‘‘(i) accept for treatment or disposal of all nium, and highly enriched uranium.’’. the corporation established pursuant to sub- such wastes for which treatment or disposal section (a)(1) if such action is contemplated technologies and capacities exist, whether SEC. 706. PRIVATIZATION OF THE CORPORATION. by the plan for privatization approved by the within the Department or elsewhere; and (a) ESTABLISHMENT OF PRIVATE CORPORA- President under section 1502(b). The Board ‘‘(ii) accept for storage (or ultimately TION.—Chapter 25 (42 U.S.C. 2297d et seq.) is shall have exclusive authority to approve treatment or disposal) all such wastes for amended by adding at the end the following such merger or consolidation and to take all which treatment and disposal technologies new section: further actions necessary to consummate or capacities do not exist, pending develop- ‘‘SEC. 1503. ESTABLISHMENT OF PRIVATE COR- such merger or consolidation, and no action ment of such technologies or availability of PORATION. by or in respect of shareholders shall be re- such capacities for such wastes. ‘‘(a) ESTABLISHMENT.— quired. The merger or consolidation shall be ‘‘(B) All low-level wastes and mixed wastes ‘‘(1) IN GENERAL.—In order to facilitate pri- effected in accordance with, and have the ef- that the Department accepts for treatment, vatization, the Corporation may provide for fects of a merger or consolidation under, the storage, or disposal pursuant to subpara- the establishment of a private corporation laws of the jurisdiction of incorporation of graph (A) shall, for the purpose of any per- organized under the laws of any of the sev- the surviving corporation, and all rights and mits, licenses, authorizations, agreements, eral States. Such corporation shall have benefits provided under this title to the Cor- or orders involving the Department and among its purposes the following: poration shall apply to the surviving cor- other Federal agencies or State or local gov- ‘‘(A) To help maintain a reliable and eco- poration as if it were the Corporation. ernments, be deemed to be generated by the nomical domestic source of uranium enrich- ‘‘(5) TAX TREATMENT OF PRIVATIZATION.— Department and the Department shall han- ment services. ‘‘(A) TRANSFER OF ASSETS OR MERGER.—No dle such wastes in accordance with any such ‘‘(B) To undertake any and all activities as income, gain, or loss shall be recognized by permits, licenses, authorizations, agree- provided in its corporate charter. any person by reason of the transfer of the ments, or orders. The Department shall ob- ‘‘(2) AUTHORITIES.—The corporation estab- Corporation’s assets to, or the Corporation’s tain any additional permits, licenses, or au- lished pursuant to paragraph (1) shall be au- merger with, the corporation established thorizations necessary to handle such thorized to— pursuant to subsection (a)(1) in connection wastes, shall amend any such agreements or ‘‘(A) enrich uranium, provide for uranium with the privatization. orders as necessary to handle such wastes, to be enriched by others, or acquire enriched ‘‘(B) CANCELLATION OF DEBT AND COMMON and shall handle such wastes in accordance uranium (including low-enriched uranium STOCK.—No income, gain, or loss shall be rec- therewith. derived from highly enriched uranium); ognized by any person by reason of any can- ‘‘(C) The Corporation shall reimburse the ‘‘(B) conduct, or provide for conducting, cellation of any obligation or common stock Department for the treatment, storage, or those research and development activities of the Corporation in connection with the disposal of low-level radioactive waste or related to uranium enrichment and related privatization. mixed waste pursuant to subparagraph (A) in processes and activities the corporation con- ‘‘(b) OSHA REQUIREMENTS.—For purposes an amount equal to the Department’s costs siders necessary or advisable to maintain it- of the regulation of radiological and but in no event greater than an amount self as a commercial enterprise operating on nonradiological hazards under the Occupa- equal to that which would be charged by a profitable and efficient basis; tional Safety and Health Act of 1970, the cor- commercial, State, regional, or interstate ‘‘(C) enter into transactions regarding ura- poration established pursuant to subsection compact entities for treatment, storage, or nium, enriched uranium, or depleted ura- (a)(1) shall be treated in the same manner as disposal of such waste. nium with— other employers licensed by the Nuclear ‘‘(2) AGREEMENTS WITH OTHER PERSONS.— ‘‘(i) persons licensed under section 53, 63, Regulatory Commission. Any interagency The Corporation may also enter into agree- 103, or 104 in accordance with the licenses agreement entered into between the Nuclear ments for the treatment, storage, or disposal held by those persons; Regulatory Commission and the Occupa- of low-level radioactive waste and mixed ‘‘(ii) persons in accordance with, and with- tional Safety and Health Administration waste generated by the Corporation as a re- in the period of, an agreement for coopera- governing the scope of their respective regu- sult of the operation of the facilities and re- tion arranged under section 123; or latory authorities shall apply to the corpora- lated property leased by the Corporation ‘‘(iii) persons otherwise authorized by law tion as if the corporation were a Nuclear pursuant to subsection (a) with any person to enter into such transactions; Regulatory Commission licensee. other than the Department that is author- ‘‘(D) enter into contracts with persons li- ‘‘(c) LEGAL STATUS OF PRIVATE CORPORA- ized by applicable laws and regulations to censed under section 53, 63, 103, or 104, for as TION.— treat, store, or dispose of such wastes.’’. long as the corporation considers necessary ‘‘(1) NOT FEDERAL AGENCY.—The corpora- (e) LIABILITIES.— or desirable, to provide uranium or uranium tion established pursuant to subsection (a)(1) (1) Subsection (a) of section 1406 (42 U.S.C. enrichment and related services; shall not be an agency, instrumentality, or 2297c–5(a)) is amended— ‘‘(E) enter into contracts to provide ura- establishment of the United States Govern- (A) by inserting ‘‘AND PRIVATIZATION’’ after nium or uranium enrichment and related ment and shall not be a Government cor- ‘‘TRANSITION’’ in the heading; and services in accordance with, and within the poration or Government-controlled corpora- (B) by adding at the end the following: ‘‘As period of, an agreement for cooperation ar- tion. of the privatization date, all liabilities at- ranged under section 123 or as otherwise au- ‘‘(2) NO RECOURSE AGAINST UNITED STATES.— tributable to the operation of the Corpora- thorized by law; and Obligations of the corporation established H 4300 CONGRESSIONAL RECORD — HOUSE April 5, 1995

pursuant to subsection (a)(1) shall not be ob- (d) RESOLUTION OF CERTAIN ISSUES.—Chap- (1) REPEALS.—As of the privatization date ligations of, or guaranteed as to principal or ter 25 (as amended by subsection (c)) is (as defined in section 1201(13) of the Atomic interest by, the Corporation or the United amended by adding at the end the following Energy Act of 1954), the following sections States, and the obligations shall so plainly new section: (as in effect on such privatization date) of state. ‘‘SEC. 1506. RESOLUTION OF CERTAIN ISSUES. the Atomic Energy Act of 1954 are repealed: ‘‘(3) NO CLAIMS COURT JURISDICTION.—No ac- ‘‘(a) CORPORATION ACTIONS.—Notwithstand- (A) Section 1202. tion under section 1491 of title 28, United ing any provision of any agreement to which (B) Sections 1301 through 1304. States Code, shall be allowable against the the Corporation is a party, the Corporation (C) Sections 1306 through 1316. United States based on the actions of the shall not be considered to be in breach, de- (D) Sections 1404 and 1405. corporation established pursuant to sub- fault, or violation of any such agreement be- (E) Section 1601. section (a)(1). cause of any provision of this chapter or any (F) Sections 1603 through 1607. ‘‘(d) BOARD OF DIRECTOR’S ELECTION AFTER action the Corporation is required to take (2) CONFORMING AMENDMENT.—The table of PUBLIC OFFERING.—In the event that the pri- under this chapter. contents of such Act is amended by repealing vatization is implemented by means of a ‘‘(b) RIGHT TO SUE WITHDRAWN.—The Unit- the items referring to sections repealed by public offering, an election of the members ed States hereby withdraws any stated or paragraph (1). of the board of directors of the Corporation implied consent for the United States, or any (b) STATUTORY MODIFICATIONS.—As of such by the shareholders shall be conducted be- agent or officer of the United States, to be privatization date, the following shall take fore the end of the 1-year period beginning sued by any person for any legal, equitable, effect: the date shares are first offered to the public or other relief with respect to any claim (1) For purposes of title I of the Atomic pursuant to such public offering. arising out of, or resulting from, acts or Energy Act of 1954, all references in such Act ‘‘(e) ADEQUATE PROCEEDS.—The Secretary omissions under this chapter.’’. to the ‘‘United States Enrichment Corpora- of Energy shall not allow the privatization of (e) APPLICATION OF PRIVATIZATION PRO- tion’’ shall be deemed to be references to the the Corporation unless before the sale date CEEDS.—Chapter 25 (as amended by sub- corporation established pursuant to section the Secretary determines that the estimated section (d)) is amended by adding at the end sum of the gross proceeds from the sale of 1503 of the Atomic Energy Act of 1954 (as the following new section: the Corporation will be an adequate added by section 6(a)). amount.’’. ‘‘SEC. 1507. APPLICATION OF PRIVATIZATION (2) Section 1018(1) of the Energy Policy Act PROCEEDS. (b) OWNERSHIP LIMITATIONS.—Chapter 25 (as of 1992 (42 U.S.C. 2296b–7(1)) is amended by amended by subsection (a)) is amended by ‘‘The proceeds from the privatization shall striking ‘‘the United States’’ and all that adding at the end the following new section: be included in the budget baseline required follows through the period and inserting ‘‘SEC. 1504. OWNERSHIP LIMITATIONS. by the Balanced Budget and Emergency Defi- ‘‘the corporation referred to in section cit Control Act of 1985 and shall be counted 1201(4) of the Atomic Energy Act of 1954.’’. ‘‘(a) SECURITIES LIMITATION.—In the event that the privatization is implemented by as an offset to direct spending for purposes of (3) Section 9101(3) of title 31, United States means of a public offering, during a period of section 252 of such Act, notwithstanding sec- Code, is amended by striking subparagraph 3 years beginning on the privatization date, tion 257(e) of such Act.’’. (N), as added by section 902(b) of Public Law no person, directly or indirectly, may ac- (f) CONFORMING AMENDMENT.—The table of 102–486. quire or hold securities representing more contents for chapter 25 is amended by insert- (c) REVISION OF SECTION 1305.—As of such than 10 percent of the total votes of all out- ing after the item for section 1502 the follow- privatization date, section 1305 of the Atomic standing voting securities of the Corpora- ing: Energy Act of 1954 (42 U.S.C 2297b–4) is tion. ‘‘Sec. 1503. Establishment of Private Cor- amended— ‘‘(b) APPLICATION.—Subsection (a) shall not poration. (1) by repealing subsections (a), (b), (c), and apply— ‘‘Sec. 1504. Ownership Limitations. (d), and ‘‘(1) to any employee stock ownership plan ‘‘Sec. 1505. Exemption from Liability. (2) in subsection (e)— of the Corporation, ‘‘Sec. 1506. Resolution of Certain Issues. (A) by striking the subsection designation ‘‘(2) to underwriting syndicates holding ‘‘Sec. 1507. Application of Privatization Pro- and heading, shares for resale, or ceeds.’’. (B) by redesignating paragraphs (1) and (2) ‘‘(3) in the case of shares beneficially held (g) Section 193 (42 U.S.C. 2243) is amended (as added by section 4(a)) as subsections (a) for others, to commercial banks, broker- by adding at the end the following: and (b) and by moving the margins 2-ems to dealers, clearing corporations, or other ‘‘(f) LIMITATION.—If the privatization of the the left, nominees. United States Enrichment Corporation re- (C) by striking paragraph (3), and ‘‘(c) No director, officer, or employee of the sults in the Corporation being— (D) by redesignating paragraph (4) (as Corporation may acquire any securities, or ‘‘(1) owned, controlled, or dominated by a amended by section 4(b)) as subsection (c), any right to acquire securities, of the Cor- foreign corporation or a foreign government, and by moving the margins 2-ems to the left. poration— or The CHAIRMAN. Pursuant to the ‘‘(1) in the public offering of securities of ‘‘(2) otherwise inimical to the common de- rule, the gentleman from Missouri [Mr. the Corporation in the implementation of fense or security of the United States, the privatization, GEPHARDT] will be recognized for 30 any license held by the Corporation under ‘‘(2) pursuant to any agreement, arrange- minutes, and a Member opposed will be sections 53 and 63 shall be terminated.’’. ment, or understanding entered into before recognized for 30 minutes. (h) PERIOD FOR CONGRESSIONAL REVIEW.— the privatization date, or The Chair recognizes the gentleman Section 1502(d) (42 U.S.C. 2297d–1(d)) is ‘‘(3) before the election of directors of the amended by striking ‘‘less than 60 days after from Missouri [Mr. GEPHARDT]. Corporation under section 1503(d) on any notification of the Congress’’ and inserting Mr. GEPHARDT. Mr. Chairman, I terms more favorable than those offered to ‘‘less than 60 days after the date of the re- yield myself such time as I may the general public.’’. port to Congress by the Comptroller General consume. (c) EXEMPTION FROM LIABILITY.—Chapter 25 under subsection (c)’’. (as amended by subsection (b)) is amended by Mr. Chairman, I come before you adding at the end the following new section: SEC. 707. PERIODIC CERTIFICATION OF COMPLI- today not to engage in partisan finger ANCE. ‘‘SEC. 1505. EXEMPTION FROM LIABILITY. pointing, but to appeal to basic com- Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is ‘‘(a) IN GENERAL.—No director, officer, em- mon sense and to common decency. amended by striking ‘‘ANNUAL APPLICATION ployee, or agent of the Corporation shall be This Republican tax bill is wrong. It FOR CERTIFICATE OF COMPLIANCE.—The Cor- liable, for money damages or otherwise, to poration shall apply at least annually to the awards billions of dollars to the any party if, with respect to the subject mat- Nuclear Regulatory Commission for a cer- wealthiest Americans, and it pays for ter of the action, suit, or proceeding, such tificate of compliance under paragraph (1).’’ it by cutting school lunches, child nu- person was fulfilling a duty, in connection and inserting ‘‘PERIODIC APPLICATION FOR trition, and heat for low income elder- with any action taken in connection with CERTIFICATE OF COMPLIANCE.—The Corpora- the privatization, which such person in good ly, hurting the very people that we tion shall apply to the Nuclear Regulatory faith reasonably believed to be required by should be helping. Commission for a certificate of compliance law or vested in such person. For 16 years all but the top fifth of under paragraph (1) periodically, as deter- ‘‘(b) EXCEPTION.—The privatization shall be Americans have seen their wages fall mined by the Nuclear Regulatory Commis- subject to the Securities Act of 1933 and the sion, but not less than every 5 years.’’. and their standard of living decay. We Securities Exchange Act of 1934. The exemp- have the ability tonight to do some- tion set forth in subsection (a) shall not SEC. 708. LICENSING OF OTHER TECHNOLOGIES. Subsection (a) of section 1702 (42 U.S.C. thing about that, to offer a modest apply to claims arising under such Acts or amount of tax relief to families that under the Constitution or laws of any State, 2297f–1(a)) is amended by striking ‘‘other territory, or possession of the United States than’’ and inserting ‘‘including’’. are struggling to simply stay in place. relating to transactions in securities, which SEC. 709. CONFORMING AMENDMENTS. And we have more than the ability. We claims are in connection with a public offer- (a) REPEALS IN ATOMIC ENERGY ACT OF 1954 have the obligation to do something ing implementing the privatization.’’. AS OF THE PRIVATIZATION DATE.— about it. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4301 Each of us was elected to serve the time, let us vote as one party for tax Under these conditions, why would greater good, not to come here and line fairness and justice for all. savers establish an IRA knowing they the pockets of the most powerful Mr. ARCHER. Mr. Chairman, I rise in might suddenly find themselves with Americans. But that is exactly what opposition to the amendment. taxable income? OMB will be under tre- the Republican bill does. More than The CHAIRMAN. The gentleman mendous pressure to fudge on the defi- half of its benefits go to families earn- from Texas [Mr. ARCHER] IS recognized cit numbers in order to prevent the en- ing $100,000 or more. for 30 minutes. suing chaos caused by this proposal. So Think about the struggling young Mr. ARCHER. Mr. Chairman, I yield in the end we will see the worst of all couple, trying to get by on $20,000 or myself such time as I may consume. worlds, a combination of phony deficit $25,000 a year. Under the Republican Mr. Chairman, I will try not to speak estimates, no benefit for taxpayers, plan they get a $5 a week tax cut. But in chivalrous adjectives or rhetoric, and more business for tax consultants. they lose school lunch subsidies, low but I would like to speak in fact about This substitute does not deserve fur- income heat assistance, food stamps, this proposal. After all, it is the third ther debate. The Contract With Amer- and summer jobs for their children. On version of the Gephardt tax proposal ica is the real thing, accept no sub- balance, this Republican bill hurts that we have seen in recent times. In stitutes. I urge my colleagues to reject them and it means that they may December, the minority leader offered this third and inferior rendition by the never have a chance at a better future. a $66 billion tax relief plan. Last week, minority leader. But for the most privileged and power- it had been cut in half. Today, the Mr. Chairman, I reserve the balance ful, people earning $200,000 a year and House is debating his substitute, which of my time. above, the Republican plan gives them contains little tax relief, and with it Mr. GEPHARDT. Mr. Chairman, I ask a massive $11,000 tax break. tax increases of nearly $3 billion. unanimous consent that the gentleman Mr. Chairman, you and I both know Yet with all of that, under CBO scor- from Michigan [Mr. BONIOR] be per- that America does not want that, and I ing, the substitute does not reduce the mitted to manage the remainder of my dare say that most Members of Con- deficit at all, compared to a reduction time on this substitute. gress do not want that. More than 100 in the deficit under H.R. 1215 of $30 bil- The CHAIRMAN. Is there objection Members of the Republican Party even lion. to the request of the gentleman from tried to buck their own leadership to Missouri? make this tax plan fairer to the middle It also seems strange to me that the gentleman is the leader of the Demo- There was no objection. class, but they lost that fight. And the Mr. BONIOR. Mr. Chairman, I yield Republican leadership is forcing them crat Party in the House of Representa- tives, and yet has not chosen to offer 21⁄2 minutes to the distinguished chair- to vote for it anyway. man of the Democratic Caucus, the I believe that we should be voting our the President’s own tax proposal. His gentleman from California [Mr. FAZIO]. conscience, our principles, not our substitute offers benefits that affect far fewer families than in H.R. 1215. party registration. I believe the day b 2015 that we put blind party loyalty ahead Moreover, the substitute is conspicu- of what is right for the American peo- ously silent on capital gains tax reduc- Mr. FAZIO of California. Mr. Chair- ple is a sad day for the U.S. Congress. tion, relief for small business, and in- man, I rise in support of the Gephardt We can do better. We can pass the centives for job creation. substitute, because the Republican pro- Democratic tax plan, which gives every It does not contain a family tax cred- posal hurts us as a country in too penny, every penny of this plan, to it. In fact, the only tax break in the many ways. It creates more problems families who earn less than $100,000 a substitute will benefit less than 4 per- down the road by adding to the deficit, year. It gives big tax breaks for edu- cent of families with dependent chil- and it divides the middle class from the cation, so struggling families can lift dren, compared to our family tax credit wealthy by sacrificing long-term in- themselves up and build our country which benefits 75 percent of families vestment in education and training for and our economy. It lets middle income with children. The substitute in actual- a short-term gain for far too many who families deduct up to $10,000 a year in ity gives zero help to families with do not need it. educational expenses. It lets students children in elementary and secondary Instead of helping the middle class, deduct interest payments on their stu- schools. Republicans are helping big corpora- dent loans, because an investment in The Gephardt substitute does em- tions. Instead of helping families send education is an investment in Ameri- brace several provisions already con- their kids to college, they are giving ca’s future, and we should reward it. tained in H.R. 1215, namely, the spousal people earning $200,000 a year a $500 per It establishes a new guaranteed edu- IRA and nondeductible IRA provisions. child tax credit. cation plan bond, so that families can We believe in both of those. Unfortu- This package includes a new form of put aside as little as $25 a month to nately, the savings provisions in the the Individual Retirement Account and save as much as $16,000 dollars for their Gephardt substitute are less effective raises the portion of an inheritance tax children’s education when they need it. and more complicated than in the base that is exempt up to $750,000. Ninety- And, above all, it is built on the pro- bill, and, unlike H.R. 1215, the Gep- five percent of the benefits of this new foundly moral principle that in a just, hardt substitute allows a $2,000 con- IRA would go to the wealthiest 20 per- decent society, we do not take away tribution to deductible or nondeduct- cent of Americans. from those who need our help to give it ible IRA’s but not both as the base bill The family earning $35,000 a year will to those who need nothing at all. does. not have the savings to invest in an In- It is not too late for us to come to- For those who like to gamble, the dividual Retirement Account. They do gether tonight on this tax plan, to substitute offers a cheap crap shoot: not have a $750,000 estate to pass along stand for fairness, to stand for the mid- Namely, all bets are off for a tax reduc- to their children. They do not have dle class, Republicans and Democrats tion if the OMB Director estimates stocks to sell. They do not need a $500 alike. It is not too late to say to Amer- Congress has not precisely met the def- tax credit. They need a college student ica we stand for that young struggling icit reduction targets set in the law. If loan to build their future. family and the privileged can take care the Congress fails to meet them by We are helping these big corporations of themselves. only a small amount, the taxes go and wealthy individuals at what cost? The Republican bill is wrong, but we away. This country will suffer revenue losses can make it right. And would that not Imagine a family trying to pick an of $180 billion over 5 years, mushroom- be a proud moment for the American affordable college under this on-again, ing to $630 billion over 10 years, a real people, the moment we said we can off-again tax policy. Worse yet, imag- balloon payment for all American tax- change our minds and work together ine a student halfway through the payers. for the good of the country; the day we school year finding out the tax break is What I do not support in this kind of put our people ahead of our party. now gone. Many Americans simply will legislation is the sort of thing that we Support this substitute; reject the not take the risk and the supposed ben- cannot afford when in fact we are hav- Republican tax bill; and just this one efits of the proposal will vanish. ing to cut school lunches, student H 4302 CONGRESSIONAL RECORD — HOUSE April 5, 1995 loans and job training to make avail- and creates new education savings The CHAIRMAN. The gentleman able tax cuts for the very wealthy. bonds. from Florida has the time. This package is much more costly Education is a very laudable goal, Mr. GIBBONS. Please respect that. I than mere dollar figures. It comes at and that is what we ought to be striv- respect your time. the price of this country’s future. It ing for. But the problem is that the But you insult me, you insult this takes away the very tools that will Democrats are putting up this sham Congress, you insult the American help to turn our children into produc- that they are giving tax relief as long Government when you compare this tive adults. The Gephardt substitute as you have children in college or are Government to the Government of Rus- will provide that future. participating in education. The phase- sia You ought to be ashamed of your- Let’s invest in the long-term goals out of this deduction will increases the self. with lasting benefits. Let’s educate our marginal income tax rate by 50 per- Mr. ARCHER. Mr. Chairman, I yield 1 children while making sure they re- cent, from 28 percent to 42 percent for minute to the gentleman from Texas ceive proper nutrition in school. Let’s those in the income phaseout range. [Mr. DELAY]. train our workers for a changing world More class warfare. Mr. DELAY. I appreciate the gentle- marketplace that requires high-tech Deductions for education are contin- man’s yielding time. skills. Let’s reduce the deficit which gent on OMB certifying that the Fed- Mr. Chairman, I ask the distin- will accomplish much more to put eral budget will be balanced by the guished ranking member, did he vote money in the pockets of the middle year 2002, yet they are not even going for Jackson-Vanik or not? class through lower interest rates for to offer us a budget that does balance. The gentleman has left the floor. He every American family. Since the Democrat leadership has not does not want to answer the question. Under this bill, households earning announced any plans to offer a bal- Because I am sure the gentleman as $200,000 a year would receive an aver- anced budget, we can only assume that well as many Members of this Congress age tax cut of $11,000, while those earn- their tax cuts will never take effect. were outraged at the notion that the ing under $30,000 would receive just Even if the tax cuts do take effect, Soviet Union charged their people huge $124. That is compounding the class they would be repealed in any subse- taxes to leave the government that warfare that has been waged on the quent year in which annual deficit tar- they so despised. middle class for far too long. Let’s sup- The problem with people leaving this gets are not met. In other words, the port the Gephardt alternative and de- Government is that the welfare state Democrats, who claim to care so much feat this bill. and the taxes charged and the regula- about students, would hold these very Mr. ARCHER. Mr. Chairman, I yield 5 tions charged in this country have same students hostages every year to minutes to the gentleman from Texas forced people to leave. Congress’s ability to meet deficit tar- [Mr. DELAY], the majority whip. Mr. BONIOR. Mr. Chairman, I yield gets that they will not even offer. Mr. DELAY. Mr. Chairman, I want to myself 1 minute. If Congress misses those targets, who congratulate the chairman of the Com- I address my comments to my friend, gets punished? Not Congress. Not the mittee on Ways and Means for an ex- and he is my friend from Texas. I do so big spenders. Not the people that want cellent job in bringing real tax relief to because I really want to set the record to continue making Americans depend- the American citizens of this country, straight for those who are listening. to allow American families to keep ent on government. No, it will be the What this issue that we are talking more of what they earn. very students that they claim they about is all about, there was a provi- Right now, Mr. Chairman, 53 percent want to help. sion that was brought to this House of of the American families’ income goes Finally, the Gephardt substitute con- Representatives very recently, last to government. If you add up the taxes tains the expatriation tax. I ask the Thursday, concerning very wealthy in- of the local, State and Federal Govern- minority leader, did the minority lead- dividuals in America who are renounc- ment, you add to that the cost of liti- er vote for Jackson-Vanik? Did he vote ing their U.S. citizenship in order to gation and regulation, 53 percent, 53 and condemn Russia for charging such avoid paying taxes. As incredible as cents out of every dollar that the a huge exit tax that Russian Jews that may seem, these are the people American family earns today, goes to could not get out of Russia? who used the security of this country the governments. Where is freedom in this country? We to gain their wealth, who used the And what the minority leader and just throw freedom aside, as if it means workers, the men and women of this the Democrats want to do is to protect nothing. When an American citizen country, to gain their wealth. their ability to confiscate the income wants to leave this country, they want When it came time for them to pay of the American family to pay for their to charge a tax. That is what this is all their fair share, they said, ‘‘No, I am failed welfare state. about. They want to charge a tax. They going to renounce my U.S. citizenship I want to talk about their substitute. care nothing for freedom. What we care so I can avoid paying taxes.’’ First off, they have no intention of of- about is the American family, the You know what that cost the Amer- fering a budget that gets us to balance American family holding onto their ican taxpayers over 10 years, esti- by the year 2002. Yet they offer a so- own income. What they want to do is mated? $3.6 billion a year. And for my called tax cut that depends on a bal- charge Americans for leaving America. friend from Texas to compare that to anced budget. This substitute provides Yet they want Russians to stay there. Jackson-Vanik and what happens with income tax deductions for interest pay- Mr. BONIOR. Mr. Chairman, I yield 1 those in Russia who are trying to emi- ments on student loans and education minute to the gentleman from Florida grate from Russia, this is just an out- expenses up to $5,000 and $10,000 there- [Mr. GIBBONS], the distinguished rank- rage. There is no comparison at all. It after. ing member of the committee, to talk is just the opposite. So if you are an American family a little bit about this issue. I commend my friend, the gentleman that does not have a child in college or Mr. GIBBONS. Mr. Chairman, I get a from Florida, for taking a strong stand a child going to vocational school, you little resentful when I hear Members of on this issue. get no relief. You still pay for the Congress comparing the United States, Mr. ARCHER. Mr. Chairman, I yield 1 failed welfare state. Deductions will be my United States, your United minute to the gentleman from Florida phased out. Class warfare. Between States—— [Mr. WELDON]. $50,000 and $60,000 for individuals and Mr. DELAY. Mr. Chairman, will the Mr. WELDON of Florida. Mr. Chair- between $75,000 and $85,000 for couples. gentleman yield? man, while Republicans take positive Marriage penalty. Mr. GIBBONS. I have only got a steps to reduce the marriage penalty, In our bill, we try to lessen the mar- minute. You get time from the gen- Democrats are giving America’s fami- riage penalty, because in the present tleman from Texas [Mr. ARCHER]. lies one more incentive not to stay to- Tax Code, you are penalized for creat- Mr. DELAY. Did the gentleman vote gether. Under their substitute, a fam- ing and starting a family. for Jackson-Vanik? ily making $75,000 can deduct up to The Democrat substitute allows pen- Mr. GIBBONS. Will you shut up and $5,000 per year for educational ex- alty-free IRA withdrawal for education listen while I talk? penses. However, a divorced couple or April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4303 an unmarried couple living together, lieve it was because we told them what taxes, then there are actions that can each earning $50,000 or $100,000 com- we were for. We offered a contract with be taken. That is not what is in the bined, can deduct up to $5,000 each, or the American people. They know what proposal by the minority leader, and a total of $10,000. In other words, Mr. we are for. let me turn to the testimony in the Chairman, Democrats reward families We know what you are against. You Oversight Subcommittee of just a few that stay together with a $5,000 tax have indicated that over and over and short days ago when Chairman JOHN- penalty. over. We know what you are against. SON, the gentlewoman from Connecti- Anti-family policies like this one, The 2 great parties in this county cut, inquired of the Treasury rep- simply put, are destructive to families should be for something. The American resentative, Mr. Guttentag, What is it and should be rejected. I urge that we people know where we are. We have our that you are proposing, how many peo- vote ‘‘no’’ on the substitute. contract. Let us try to determine ple have given up their citizenship? Mr. Mr. BONIOR. Mr. Chairman, I yield where the Democrats are. Guttentag then went through numbers 1 1 ⁄2 minutes to the distinguished gen- Following the November election the over the last several years, several tleman from Massachusetts [Mr. President of the United States went on hundred people. She then said, How NEAL]. television and told the American peo- many of them have given up their citi- (Mr. NEAL of Massachusetts asked ple, and this is from the administra- zenship to avoid taxes? The representa- and was given permission to revise and tion’s revenue proposals, Department tive of the administration of the De- extend his remarks.) of the Treasury, it says ‘‘tax relief for partment of Treasury said, ‘‘We do not Mr. NEAL of Massachusetts. Mr. middle class families has been and con- know’’. Chairman, let me say at the outset, tinues to be an important goal of this She then said, ‘‘How in the world can this is a Member on the Democratic Administration.’’ The proposal: ‘‘A side who favored a targeted capital you have a revenue estimate about how nonrefundable tax credit granted for much money you are going to make if gains package, who has been the au- only those children under 13 to ulti- thor with the gentleman from Califor- in fact you do not know how many peo- mately reach $500 per child.’’ Mar- ple voluntarily gave up their citizen- nia [Mr. THOMAS] of the Individual Re- velous new idea. I wonder where the tirement Account, its tax advantage ship to avoid taxes?’’ Listen to the President got it? reply of the Administration’s rep- restoration, and who favors the idea of When we debated this bill in the resentative, and see if it is not chilling. allowing seniors to earn and keep more Committee on Ways and Means, and ‘‘The Clinton-Gephardt proposal,’’ he despite Social Security obligations. the Democrats had an opportunity to indicated, ‘‘does not require an intent Most of the Members on this side offer a substitute at the end of the de- to avoid taxes.’’ would have voted for those provisions bate in the Committee on Ways and He said, ‘‘The Administration’s pro- tonight if it was not an all-or-nothing Means over our middle-class tax pro- posal does not require an intent to package. But let me get to the point at posal, this was the amendment that avoid taxes.’’ The fact that you would hand. The favorite refrain heard on the Democrats offered. The amendment have the audacity to decide that you this side of the aisle these days is this: in its entirety as a substitute for our were voluntarily giving up your citi- I did not write the contract. The sec- proposal laid out to the American peo- zenship would result in tax penalties ond most well-heard refrain on this ple before the election was not what side of the aisle these days is, ‘‘The the President said he was for. Their and we have heard these Members tak- Senate will correct it.’’ amendment as a substitute in toto was ing the floor saying there is no way Let me say tonight, there are 133,000 one word, one word: Insert after sec- you can compare yourself with the So- students in Massachusetts, and I rep- tion 1 the following new section, sec- viet Union. Outrageous to do that. The resent an area with some of the finest tion 2, ‘‘sunset.’’ ‘‘It is not that we are Soviet Union used to make people pay colleges in America who are going to against what you are proposing,’’ the a penalty for leaving their country vol- begin to pay a lot more at the end of Democrats said in the Committee on untarily. You had to pay through the this contractual day for their student Ways and Means, we just do not think nose. loans when this House gets done. it ought to be open-ended for the Amer- We have historically said if you are We had an opportunity in this House ican people. We think it ought to be trying to avoid taxes, then we are to find middle ground on most of these sunsetted, stopped at a given time, going to get you. What this proposal issues where most of the Members on should not apply after January 1, 2001. says, and which is included in the new both sides rest. The President said he has been for a substitute, is we are going to get you Don’t heed my warning tonight. Heed long time for middle-class tax relief. even if it is not to avoid taxes. the warning of George Bush who called The Democrats said, yeah well, it is We have lost the high moral ground. it voodoo economics. And heed the okay, but sunset it. Do not let this substitute pass with warning of David Stockman who said it And then we have in front of us to- this onerous provision. was the triumph of politics. Mr. BONIOR. Mr. Chairman, I yield Let me close on this note. There is night the minority leader’s substitute. Does it look like the President’s bill as 11⁄2 minutes to the distinguished gen- one thing that NEWT GINGRICH, RICHIE he said he wanted it and as the gen- tleman from Maryland [Mr. MFUME]. NEAL, DICK ARMEY, and PHIL GRAMM all tleman from Missouri [Mr. GEPHARDT] Mr. MFUME. Mr. Chairman, I said have in common. We all had student earlier that Ringling Brothers and Bar- loans guaranteed by the Federal Gov- introduced along with the gentleman from Florida [Mr. GIBBONS] in Feb- num & Bailey came to town today and ernment, and it has paid a huge divi- put on a great performance of ele- dend for the American people. Do not ruary called H.R. 980 which had the phants and clowns outside of this deny the next generation that same op- middle-class tax cut in it? No. What building, but it does not come close to portunity. this proposal has in it is one of the most onerous provisions that has ever the high wire act that is being per- b 2030 come to this floor. formed here by the daredevils of the Mr. ARCHER. Mr. Chairman, I yield 6 We heard the gentleman from Michi- high wire of this legislation who are at- minutes to a respected Member, the gan give a representation about this tempting through blue smoke and mir- gentleman from California [Mr. THOM- business of taxing people because they rors to pull a rabbit out of a hat and AS], chairman of the Health Sub- have decided to give up their United dangle the American taxpayer from the committee of the Committee on Ways States citizenship. Many people in this high trapeze bar, suggesting that this and Means. country are born here and get citizen- bill somehow will achieve deficit reduc- (Mr. THOMAS asked and was given ship by birth, others acquire it after tion. permission to revise and extend his re- birth. It is something that you can get, For the average Federal employee marks.) and it has always been something that earning $40,000 a year the Republican Mr. THOMAS. Mr. Chairman, the you can give up. proposal imposes an additional $1,000 in American people in November decided We have had a law on the books for taxes resulting from increased con- to put their trust in our party in this years that says if you are going to give tributions to their pension system, and House after 40 years. In large part I be- up your citizenship to avoid paying I have yet to hear somebody on the H 4304 CONGRESSIONAL RECORD — HOUSE April 5, 1995 other side talk about the plight of Fed- HARVARD LAW SCHOOL, tleman from the State of Rhode Island eral employees regarding this. Cambridge, March 30, 1995. [Mr. KENNEDY]. More than half of the tax benefits Hon. NANCY L. THOMPSON, (Mr. KENNEDY of Rhode Island U.S. House of Representatives, asked and was given permission to re- will go to families with incomes be- Washington, DC. vise and extend his remarks.) tween $100,000 and $200,000. Is $200,000 a DEAR CONGRESSMAN JOHNSON: I am writing year middle class? You go figure. to express my concern about the current pro- Mr. KENNEDY of Rhode Island. Mr. If you earn $100,000 you get $11,000 in posal in the Senate version of H.R. 831 to im- Chairman, I want to thank the gen- tax reductions, but if you earn $30,000 pose a tax on persons leaving the United tleman from Michigan for yielding you get $124 in tax reductions. States who renounce their citizenship. I un- time to me. This bill increases the deficit. It re- derstand this proposal is now in House-Sen- Mr. Chairman, the debate is about wards the wealthy, it punishes working ate conference. I am the Felix Frankfurter students, students and their futures. Professor of Law emeritus at Harvard Law Americans, and I do not care what peo- The cost of a college education is rising School where I teach international law. faster than middle-income families can ple say, when you take money out of From 1961 to 1964, I was the Legal Adviser to their pocket, $1,000 per Federal em- the Department of State. afford. In fact, paying for college now ployee, that is a punishment. In my opinion, the proposed expatriation ranks second only to buying a home as So in the end, the difference between tax raises serious questions under the Con- the most expensive investment for the last year’s Republican rhetoric and stitution and international law involving the average family. this year’s Republican rhetoric is a fundamental right of voluntary expatriation Last week in my State of Rhode Is- and emigration. As you may know, the Inter- land, three colleges announced once matter of Tweedledee and Tweedledum. national Law Section of the ABA in its The party that gave us voodoo econom- again that they were raising their tui- statement of March 8, concluded that the tion. In the last 5 years the University ics is now giving us Robin Hood in re- proposed expatriation tax ‘‘may be an illegal of Rhode Island has raised tuition 83 verse. I said it earlier, so let me repeat restriction on the fundamental right to emi- percent. Rhode Island College and the it for those who did not hear. The giant grate.’’ It also appears to burden the con- Community College of Rhode Island sucking sound we will hear from now stitutionally based right of voluntary expa- tuition has gone up 67 percent and 66 on will not be NAFTA, it will be AFTA, triation. See Richards v. Secretary of State, 752 F.2d 1413, 1422 (9th Cir. 1985). percent respectively since 1990. angry, frustrated Americans who are The proposed tax, which applies without What makes matters worse, the bal- carrying the brunt of this and carrying regard to the individual’s motivation, im- ance of aid that students have used in the biggest weight as a result of what poses much more than a nominal penalty on the past to help them afford these ris- I consider to be foolishness on the part citizens who wish to emigrate. Thus, it has ing costs has shifted. In the early 1980s of those who have designed it. serious human rights implications and is in- consistent with long-standing. U.S. policies it was 75 percent grants and 25 percent Mr. ARCHER. Mr. Chairman, I yield 3 loans. Today, the reverse is true. It is minutes to the gentleman from Illinois with respect to the right of free emigration expressed in the Jackson-Vanick Amend- 75 percent loans and 25 percent grants. [Mr. HASTERT]. ment to the Trade Act of 1974 and elsewhere. b Mr. HASTERT. Mr. Chairman, I Indeed, this policy was a centerpiece of our 2045 thank the gentleman from Texas for effective opposition to the Soviet Union dur- And the Republicans now want to yielding me the time. ing the 1970s and 1980s. If the United States eliminate the interest subsidy for stu- Mr. Chairman, I am amazed here to now adopts this restrictive approach, it will dent loans. That compounds the al- sit and listen to this debate here to- give oppressive foreign governments an ex- ready difficult problem that middle- night and see how fact and fiction is cuse to retain or erect barriers to expatria- tion and emigration. class families are having in affording twisted and turned and twisted. I would I strongly urge you to protect these impor- an education because of the elimi- like to set the record straight. tant freedoms by rejecting the proposed ex- nation on the deduction on student First of all, I have a letter here from patriation tax in the Conference Committee. loans that was put through in the Abraham Chayes who is a professor of Sincerely, 1980’s. law at Harvard University. He says: ABRAM CHAYES. Mr. Chairman, ladies and gentleman I am writing to express my concern about You know, Mr. Chairman, after 40 of the House, I ask my colleagues to the current proposal before the U.S. House to years of Democrat rule, the people need support the Gephardt substitute, be- impose a tax on persons leaving the United a break from high taxes, higher spend- cause the Republicans keep talking States who renounce their citizenship. I un- ing and hyperbole. Last November they about jobs, but they are not going to be derstand this proposal is now in the House in got that break. They voted in a Repub- able to get the high-paying jobs with- debate. I am the Felix Frankfurther Profes- lican majority that promised change out a high-skills education that they sor of Law emeritus at Harvard Law School where I teach international law. From 1961 and in this tax bill we have delivered are going to need if they do not go to to 1964, I was the Legal Adviser to the de- this change. college. partment of State. I ask for a negative vote on this piece Mr. Chairman, the question before us today In my opinion, the proposed expatriation of legislation. The Gephardt substitute is what kind of tax relief are we going to give tax raises serious questions under the Con- is not change. It is the same old story. to the American people? Are we going to hand stitution and international law involving the It contains no real tax relief for mid- out huge tax breaks to the wealthiest Ameri- fundamental right of voluntary expatriation dle-class Americans, it contains no real cans, open loopholes so big some of our most and immigration. As you may know, the breaks for senior citizens, it contains profitable companies will be able to avoid pay- International Law Section of the ABA in its no incentives for job creation. ing any tax at all, or are we going to give statement of March 8, concluded that the proposed expatriation tax ‘‘may be an illegal It is as if the Democrats do not really some help to middle income Americans, to restriction on the fundamental right to emi- believe that the American people have young people who are struggling to pay for grate.’’ had enough of tax-and-spend politics their education? The choice is clearÐit is be- I go on. for the last 40 years. tween the past and the future. The Contract Well, I have news for the Democrat plan is a return to the failed, unfair policies of The proposed tax, which applies without leadership. The American people are regard to the individual’s motivation, im- the past. The Democratic alternative is about poses much more than a nominal penalty on sick and tired of being taxed and spent investing in our future. It is about making sure citizens who wish to emigrate. Thus, it has to death. The Gephardt substitute we have the high skill workers for the high serious human rights implications and is in- proves a point I have believed for some skill, high wage jobs of tomorrow. consistent with longstanding U.S. policies time. The Democrat leadership wants Middle income families need the tax relief with respect to the right of free emigration to raise taxes. The Republican Party offered by the Democratic alternative. The expressed in the Jackson-Vanik Amendment wants to cut taxes. I urge my col- cost of post-secondary education is rising fast- to the Trade Act of 1974. leagues on both sides of the aisle to er than middle income families can afford. In And he goes on, and it is signed sin- vote against the Gephardt substitute fact, paying for college now ranks second only cerely, Abraham Chayes, Harvard and vote for tax fairness and deficit re- to buying a home as the most expensive in- School of Law. duction. vestment for the average family. Last week, in Mr. Chairman, I include for the Mr. BONIOR. Mr. Chairman, I yield my State of Rhode Island, three different col- RECORD the letter in its entirety 11⁄2 minutes to the distinguished gen- leges announced once again that they were April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4305 raising their tuition. In the last 5 years the Uni- grants a deduction for the payment of interest shouldering the blame and expense for versity of Rhode Island has raised its tuition on student loans. Just like that provided for the last 50 years. Let us not give it to 83 percent. At Rhode Island College, and the mortgage interest. Today, I am proud to say millionaires and corporations. Community College of Rhode Island, tuition that Democratic Leader GEPHARDT has incor- We stand for the middle class, and has gone up 67 percent and 66 percent, re- porated this idea into his education tax cut they are the ones that should benefit. spectively since 1990. What makes matters plan for the middle class citizens of this coun- Mr. BONIOR. Mr. Chairman, I yield worse, the balance of aid that students have try. 11⁄2 minutes to the distinguished gen- used in the past to help afford these rising The Democratic alternative is affordable, tleman from Louisiana [Mr. JEFFER- costs has shifted. Fifteen years ago the mix of and does not explode the deficit. Moreoever, SON]. Federal student financial aid was 75 percent it does not simply cut taxes, but it represents Mr. JEFFERSON. Mr. Chairman, I grants and 25 percent loans. In 1995 those a real investment for the American taxpayer. thank the gentleman for yielding time figures are reversed. I submit to my col- Last year the Government paid out an esti- to me. leagues, that if the Federal Government does mated $2 billion to cover defaulted student Mr. Chairman, I wish to rise in sup- not take some course of action, the middle loan costs. This is money that we can never port of the Gephardt amendment and class will soon be shut out of higher edu- retrieve and results in higher costs to the tax- to voice concern regarding the Repub- cation. These are the people who need tax re- payers. The Democratic proposal encourages lican tax bill. lief, not the Fortune 500 singled out in the students to work within the system, payback One of the immutable principles of GOP proposal. their loans, and one day make additional in- tax law is fairness. Unfortunately, the The Republican party offers tax cuts that will vestments in the economy. only place fairness appears in this Re- send more than 58 percent of total capital I urge my colleagues to vote for the plan publican tax bill is in the title. gains tax breaks to those making more than that represents real savings for the middle Tax fairness would mean that the so- $200,000 a yearÐthe top 2.6 percent of all tax class of this country. Eighty-nine percent of called reform bill before us would bene- fliers. Households earning $200,000 would re- the American people oppose cuts to student fi- fit not just the privileged few but the ceive an average cut of over $11,000 a year, nancial aid programs. They want their children majority of American taxpayers by whereas those under $30,000 would receive to pursue higher education and achieve their providing for an across-the-board set of less than $150 per year. The Contract On dreams. The Republicans offer a tax cut to the sacrifices shouldered proportionately America tax bill will cost the American people rich and then try to pay for it on the backs of by every taxpayer based on his or her almost $700 billion over the next 10 years. It students. We can't afford trickle down 2. Sup- ability to pay. In this regard, with re- is clear what interests the Republicans rep- port the tax cut that invests in our futureÐnot gard to unfairness, the Republican tax resent. the one which repeats the mistakes of the bill is doubly guilty. First, it pays for Under the Republicans, who is going to past. Support the plan that opens doors for the $630 billion cost on the small shoul- pay? StudentsÐour future. They give loop- our studentsÐnot the plan that shuts them ders of the most vulnerable Americans, holes to the rich and roadblocks to students. out. Support the Democratic substitute and in- our Nation’s children, through cuts in Simply put, they are standing on the backs of vest in the future of those who will lead Amer- programs that support children and students to support the wealthy. In addition to ica tomorrow. families. their tax cut, the Republicans plan to severely Mr. BONIOR. Mr. Chairman, I yield Secondly, the Republican bill hands cut aid to students. 11⁄2 minutes to the gentleman from New its tax benefits over to the wealthiest Fact: The GOP is poised to eliminate the in- Mexico [Mr. RICHARDSON], the distin- Americans. terest-deferral on the Stafford Loan program. guished chief deputy whip. Finally, it disregards our responsibil- Currently, the interest on the Stafford Loan is (Mr. RICHARDSON asked and was ity to reduce the Federal deficit. deferred until 6 months after graduation. given permission to revise and extend Mr. Chairman, the Gephardt amend- Under the Republican plan, interest would his remarks.) ment sets things right. It represents a begin accruing on the loan immediately. Mr. RICHARDSON. Mr. Chairman, more uniform way to help eliminate Fact: By removing the interest deferral, the Democratic substitute is about in- the current budget deficit. It is fair to American students will face a $9.6 billion in- vesting in people and education. the middle-class taxpayer and pro- crease in the cost of post-secondary education Too many Americans between the motes education and savings and is over the next 5 years. That's over $4,000 ages of 25 and 40 are not able to invest overall good for our families, and it added to the loan repayments for each stu- extra money or buy a house because will ensure that deficit reduction is dent. they have to repay school loans. Our made before any tax cuts take effect. Fact: The GOP is poised to eliminate the best-educated citizens are handed di- Finally, Mr. Chairman, America Perkins Loan program. Post-secondary institu- plomas and then pushed into a huge needs the Gephardt amendment. It has tions use the Perkins program to help low in- pool of debt. no hidden set of agendas. It singles out come students take out low interest loans to We are bombarded with calls from no special-interest group. Giving tax pay for college. Eliminating this program will the private sector to educate a work breaks to the middle class while reduc- add $785 million to the cost of going to col- force that can compete in the global ing our deficit, keeping intact pro- lege over the next 5 years. arena, yet we are unwilling to provide grams for our children and for the el- In short, the Republican plan will kill the any tax incentives for education. In- derly, for students, and for families is dream of higher education for thousands of stead, we offer General Motors gener- why Gephardt makes sense. middle income students. The Democrats how- ous value-added tax writeoffs to guar- I urge you to approve the Gephardt ever, have a plan that will help that dream antee returns on their investments. amendment. come true. The Democratic plan identifies our Mr. Chairman, the Democratic sub- Mr. ARCHER. Mr. Chairman, I yield students as our Nation's most precious com- stitute stands for middle-class fami- myself such time as I may consume. modity. It helps them achieve their goals by lies, for education benefit, a $10,000 de- Mr. Chairman, this body has heard creating incentives to save and methods by duction per family for education ex- over and over again the programmed which students will find it easier to payback penses, making student loans deduct- rhetoric that clearly is assigned to their loan debts. ible, an IRA plan for education ex- every Democrat Member of the House, During the last Congress, President Clin- penses, education plan savings bond, that the benefits of these taxes go to ton's Direct Lending Program took an impor- and it is paid for. It is paid for through the wealthy. tant step in helping young adults realize their savings in government reform and clos- The benefits of these taxes go to sen- education dreams. The Direct Lending pro- ing billionaires’ loopholes. ior citizens who have retirement in- gram made it easier for students to take on Unlike the Republicans fig leaf, the come of $34,000. Is that wealthy? the cost of higher education by simplifying the Democratic tax benefits would not be When we reduce the 85-percent tax on loan process and creating new ways for stu- provided until deficit targets have been their Social Security benefits put on dents to payback their loans. Ultimately, Direct achieved. by the Clinton budget in 1993, I say, is Lending is a step in the right direction but it Mr. Chairman, let us have tax cuts, that wealthy? falls short of easing the burden of paying back but let us be responsible. Let us pay for Seventy-five percent of the child tax the loans. For this reason I introduced the Stu- them. Let us give them to those Ameri- credit goes to family income of less dent Loan Affordability Act of 1995. This bill cans that deserve them, that have been than $75,000. That can be wage earners. H 4306 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Is that wealthy? That is 75 percent. I got a tax-reduction bill that they are that I think is absolutely fascinating. say, is that wealthy? calling that in my State of Pennsylva- He is prepared to tax the air we Adoption tax credits go to all tax- nia will cause 343,000 college students breathe. payers up to a limited amount. Is that to pay more for college loans, that will Let me quote to you from what he wealthy. No. It is not. cause 473 school districts across Penn- says. He says, The overwhelming majority of the sylvania to lose money for safe schools Technology has brought us to this point. tax benefits in this bill go to working and drug-free schools, that will cause The technology was produced by the genius Americans who are not wealthy. 68,000 Pennsylvania kids to lose sum- of people over many, many years, but it has Mr. Chairman, I reserve the balance mer jobs. That is what the Republican brought us to the point where suddenly the of my time. proposal is about. It is about 1 million atmosphere above or heads is valuable. It is Mr. BONIOR. Mr. Chairman, I yield 1 kids in Pennsylvania that will lose worth a great deal of money. Let us find a minute to the distinguished gentleman their school lunches. It is about 311,000 way to tax that for the benefit of all Ameri- from New Jersey [Mr. MENENDEZ]. Pennsylvania senior citizens that will cans. That is just one of the taxes. (Mr. MENENDEZ asked and was not get help paying their electric bill That is right, Democrats have sud- given permission to revise and extend and may have to freeze and may have denly realized they may be able to tax his remarks.) to make some hard choices. the air we breathe. No wonder they do Mr. MENENDEZ. Mr. Chairman, it is This is not about a Republican tax not want tax cuts. They want more clear everyone here would like to be break. This is about a Republican rape taxes. able to pass a tax cut, but with a defi- of the poor and the middle class in Mr. BONIOR. Mr. Chairman, I yield cit looming, tax cuts cannot simply be order to reward the wealthy. such time as he may consume to the distributed as free gifts that have no Mr. BONIOR. Mr. Chairman, I yield 1 gentleman from Texas [Mr. COLEMAN]. costs. The costs hang on all of our minute to the distinguished gentleman (Mr. COLEMAN asked and was given necks as an albatross until the deficit from New York [Mr. ENGEL]. permission to revise and extend his re- has been brought under control. Mr. ENGEL. Mr. Chairman, I rise in marks.) Cuts, if any, should be given to those strong support of the Gephardt bill Mr. COLEMAN. Mr. Chairman, I rise in need, and clearly families earning which embraces middle-class values in opposition to the tax, cutting off the the median income, in my district, as and middle-class families. air we breathe. an example, are in need. We can help While the Republicans are trying to Mr. Chairman, I rise to state my strong op- them with the Gephardt substitute. cut and eliminate student loans, this position to the Republican tax cut bill that is The tax cuts in the Republican bill bill will enable more middle-class col- being considered today. would be paid for by putting families in lege students to go to college. Mr. Chairman, this bill will increase interest my district out on the street when You know, it reminds me of Robin payments on the national debt and shackle their public housing crumbles from ne- Hood; at least, Robin Hood stole from our economy. It will add to the mountain of glect and by snatching away hot the rich to give to the poor. This steals debt which our children will inherit. lunches from their children. In return, from the poor and the middle class to There are a few popular tax benefits in the the bill affords them an average tax give to the rich, and let us call it the Republican plan, namely the tax credit for chil- cut of $10 a month, $10 a month. way it is. dren, the repeal of the marriage tax, the cap- By contrast, families earning $200,000 This Gephardt substitute is the only ital gains tax cut, and the raising of the earn- or more will reach nearly $1,000 a substitute or amendment that was al- month in cuts. Mr. Chairman, that is lowed. The Republicans would not ings limit for elderly Americans. I only regret clearly a raw deal. allow any other amendments, because that they are attached to such a bad bill. And as for seniors, if they are going they know that it would pass. I do believe that American families deserve to lose their housing, senior housing What I would like to know is how 102 tax relief. The tax credit for children is a laud- repairs, their security patrols, their of my Republican colleagues can sign a able goal. I also believe that the marriage pen- home energy assistance, their Medicaid letter saying no tax breaks for the alty in our current tax laws is something that being slashed, that is not a good deal wealthy and they just fold under the we should eliminate. Current law adds a dis- for them either. Speaker’s juggernaut, how 30 Members incentive for couples to stay together and be- The family vote, the 13th District on the other side of the aisle, 30 Repub- come contributors to American society. I was vote in New Jersey, the one that makes lican Members, say there must be defi- a cosponsor of various measures in the last sense and does not hang on the deficit cit reduction before there are tax cuts, Congress which would have rectified this. I is the Gephardt substitute. and then they just fold and vote for the also support a capital gains tax cut because I Mr. BONIOR. Mr. Chairman, I yield rule and vote for the bill. believe, and studies show, that it spurs eco- 11⁄2 minutes to the distinguished gen- This bill says all tax breaks, this sub- nomic growth, especially in depressed areas. tleman from Pennsylvania [Mr. KLINK]. stitute, all tax breaks are revoked if But this cut at this time is a mistake. Finally, Mr. KLINK. Mr. Chairman, we have deficit targets are not met. That is I also believe that the earnings limit on elderly often heard those who do not learn what we should do. Americans should be raised. I have supported from history are doomed to repeat it. And look how we are beating up on these provisions before and will gladly do so Usually there is a lot more time that Federal workers. It is bad enough we again. passes than just 14 years. have no respect for ourselves appar- However, these popular segments far from But for those of us that remember ently. But why beat up on the Federal balance the massive cost of this tax package, 1981 and that famous Reagan tax cut workers? I guess if you are wealthy and $189 billion in spending cuts over 5 years. that was going to bring us all prosper- you are millionaires, it does not mat- During this time of high deficits, we cannot ity, that trickle-down economics, we ter. But most of America is not. continue to add to the debt. Our children will remember later that David Stockman Support the Gephardt substitute. It suffer later when they will be forced to pay for said it was a Trojan horse just designed helps the middle class. our spending. In addition, working families will to bring down the top rate. I would sug- Mr. ARCHER. Mr. Chairman, I yield 1 bear the brunt of these cuts needed to pay for gest, if that was a Trojan horse, then minute to the gentleman from Penn- the wealthy's tax breaks. the Republican tax cut bill we are sylvania [Mr. WALKER]. This bill is like a hand grenade with the pin faced with tonight is a Trojan ele- Mr. WALKER. Mr. Chairman, the pulled out. While it gives away almost $189 phant. real truth is that Democrats do not billion in the first 5 years, the Treasury Depart- I can remember the results in the like this bill because Democrats like to ment estimates it will actually cost $630 billion Pittsburgh area and much of the indus- tax nearly everything, and they love over a 10-year period. That will be a true ex- trial Northeast of trickle-down eco- taxes. plosion. nomics. I remember standing outside And I found just an absolutely fas- Mr. Chairman, the tax cuts the bill calls for plant gates when plants were shutting cinating quote from a senior member mainly benefit the rich. A Treasury Department down and tens of thousands of workers of the Democratic Party who was on study shows that a working family making be- were put out in the street. Now we are the floor last night speaking to us, and tween $30,000 and $50,000 a year would re- coming back for a second bite. We have the gentleman gives us a quote here ceive $569 in tax relief under this bill. This April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4307 pales in comparison to the $11,266 in tax re- Mr. Chairman, the American people are would not qualify for the credit be- lief the legislation gives to a family with an in- looking at the Congress today and they see cause their families’ income is too low come over $200,000. The Treasury Depart- two incongruous goals: tax cuts and reducing to have any tax liability. ment also estimates that corporations and only the deficit. They have been rightly critical of Contrary to our colleagues’ claims, the top 12 percent of the wealthiest taxpayers Congress in the last few years. We must re- this bill will not necessarily help small would get more than half of the tax break. ject this bill because of the mixed message we business. In fact, because this plan may Seventy-six percent of the $31 billion, 5-year continue to send to the American people. lead to increases in interest rates, the cost of the capital gains tax cut would go to In the 103d Congress, the Democrats and plan may in fact hurt small businesses. families making over $100,000. In my district the President put before the American people Higher interest rates make the loans these families are not considered middle tough and painful choices that were necessary needed for expansion, upgrading equip- class, Mr. Chairman. to reduce the deficit. We imposed tough ment, or making other infrastructure This bill is also tough on Federal employees spending and entitlement caps. As a result, improvements more expensive for busi- numbering about 30,000 in the El Paso area, we will reduce the annual deficits of 1994±95 nesses. which I represent. This bill will increase the by more than $600 billion over 5 years. The H.R. 1215 will hurt the States. Many payroll withholding for older Federal employ- economy has responded to our medicine by States, including Maine, use Federal ees by 33 percent and for newer Federal em- giving us one of the largest post WWII expan- adjusted gross income to calculate tax- ployees by 313 percent. Under this legislation, sions in history. Some say the Democrats paid able income for State income tax pur- middle-class Federal employees will pay an a high price for what we did in last November; poses. Unless States cease to conform additional $905 in taxes to receive $125 in tax if so, then so be it. Our country is better for to Federal depreciation and capital cuts. it. gains provisions, they will be faced Finally, Mr. Chairman, the actions we are The Republicans failed to obtain approval of with enormous revenue losses. In taking by approving this tax cut plan will send this retirement contribution change in the com- Maine, those losses are estimated to be shudders around world financial markets. The mittee of jurisdiction; the Government Reform $370 million. It is ironic that this legis- dollar continues its downward slide. Americans and Oversight Committee. Thus, they sub- lation is offered by the party that also are still uneasy about the future. Approval of verted the legislative process and inserted this offered legislation to curb unfunded this tax cut bill could send our economy into mandates. This is just another example change in the Rules Committee. The leader- a tailspin. ship's promises to address this in later legisla- of how some of our colleagues are will- Mr. Chairman, this is not the jewel our ing to say one thing and then do an- tion is simply a fig leaf that we have seen be- Speaker constantly refers to, but rather fools fore such as the lock-box/deficit-reduction other for the sake of political expedi- gold. This represents a return to the failed ency. mechanism in the welfare reform debate. supply-side economics of Ronald ReaganÐ There are other ways in which middle- and Finally, H.R. 1215 will hurt our children, our trickle-down economics. Well, Mr. Chairman, Nation's most precious natural resource. The low-income working families will pay if we America has been trickled on quite enough. I enact this bill. For example, there will be large bill uses savings achieved at the expense of urge my colleagues to resist this invitation to schools lunches, WIC, and other programs cuts in the welfare system and in nutrition pro- fiscal and economic disaster. Oppose the Re- grams which will significantly reduce benefits which benefit children to help fund tax breaks publican tax cut bill. for those earning more than $100,000. This of 2.8 million needy families by the year 2000 Mr. BONIOR. Mr. Chairman, I yield 1 bill will lead to cuts in student financial aid, according to the CBO; and higher Medicare minute to the distinguished gentleman public housing, and education. costs will be borne by millions of older Ameri- from Maine [Mr. BALDACCI]. Moreover, this bill is a budget-buster. The cans. (Mr. BALDACCI asked and was given Congressional Budget Office estimates that it I also want to remind my colleagues of the permission to revise and extend his re- will cost our country $630 billion over the next illustrative list of spending cuts released by marks.) Budget Committee Chairman KASICH the other Mr. BALDACCI. Mr. Chairman, I sup- 10 years. The proposed spending cuts don't day for the express purpose of paying for to- port the Gephardt substitute which even come close to paying for this cost explo- day's tax cuts. As you know, the Budget Com- provides $31.6 billion in tax relief to sion. The result, or course, will be even higher mittee reported legislation that cuts discre- American families earning primarily deficits and debts. Once again, we are mort- tionary spending by $100 billion over the next between $20,000 and $85,000 per year, gaging our children's future. 5 years (H.R. 1219). Yet, these suggested and encourages investments in edu- Mr. Chairman, H.R. 1215 is irresponsible. It cuts do not even cover the $189 billion cost of cation and training to strengthen our fails to target the families that have been over- this tax cut bill. Again, these cuts are aimed at economy. This is a responsible, fully burdened by taxes for too long. Instead, it working American families. These include; paid for, and carefully targeted plan, gives tremendous tax breaks to wealthy Amer- elimination of the Low Income Heating Pro- and I applaud the efforts of the Demo- icans and to corporations. It hurts middle- and gram [LIHEAP], elimination of many job train- cratic leader in bringing this to the low-income families, small businesses, the ing programs including those aimed at dis- House today. States, and our children. It ignores our deficit placed workers like the Trade Adjustment As- I am opposed to the underlying defi- and debt, and explodes in cost after 5 years. sistance and NAFTA Adjustment Assistance, cit-busting tax legislation proposed by We need tax relief. But we need respon- elimination of summer youth jobs programs, our Republican colleagues. It hurts sible, targeted tax relief. I urge my colleagues reduced funding for school-to-work programs middle- and low-income families, busi- to support the Gephardt substitute, and to vote and Goals 2000, elimination of Federal efforts nesses, many States, and children. It down the Republican alternative which threat- in vocational and adult education, elimination benefits the wealthiest Americans in- ens to balloon our Nation's deficits and make of the Legal Services Corporation, elimination stead of those who need relief the most. it much harder to ever balance the Federal of PBS, and repealing the Davis-Bacon Act. It costs too much and will likely add budget and get our fiscal house in order. Even more, these illustrative cuts include billions to our Nation’s deficit and Mr. BONIOR. Mr. Chairman, I yield 1 several programs that are cut or eliminated in debt. minute to the distinguished gentleman the 1995 rescission bill. This means the cuts H.R. 1215 is simply another tax give- from Kentucky [Mr. WARD]. already made in the rescission package are away for the well-off. Under this legis- b not available to meet the new $100 billion cut. lation, households earning $200,000 a 2100 Therefore, this is double-counting, Mr. Chair- year would receive an average tax cut Mr. WARD. Mr. Chairman, earlier man. Like Reagan-era budget wizards of yes- of $11,266, while those earning under today I heard a supporter of this unfair teryear the other party is once again engaging $30,000 a year would receive on average tax bill say that, no, they were not in funny math. only $124. This is patently unfair. really cutting school loan programs. Under the Republican tax cut bill, these cuts H.R. 1215 hurts middle- and low-in- Why he said with a straight face, a will only be used to pay for the tax benefits come American families. They are un- straight face, that a person could take going to mostly upper income Americans and likely to see any significant benefits their $500 tax break that is being given, the business community. The proposed from the bill’s provisions. In fact, be- put it in a savings account that is spending reductions do nothing to reduce the cause the bill’s centerpiece—a $500 tax going to be created with this bill. They Federal deficit. That means additional and credit for each child—is nonrefundable, say, ‘‘Take that $500 and have $14,000— even deeper cuts will come later in the year. it is estimated that 24 million children $14,000 are waiting.’’ H 4308 CONGRESSIONAL RECORD — HOUSE April 5, 1995

I could not understand it. Well, it Goss Markey Salmon the gentleman from Texas [Mr. AR- Graham Martinez Sanders CHER was $14,000, 18 years after they put that Green Martini Sanford ] has 8 minutes remaining. money in the bank. Greenwood Mascara Sawyer The Chair recognizes the gentleman Well, I told that to a high school sen- Gunderson Matsui Saxton from Michigan [Mr. BONIOR]. ior from my State today, and he just Gutierrez McCarthy Scarborough Mr. BONIOR. Mr. Chairman, I yield Gutknecht McCollum Schaefer laughed at me. He said, ‘‘You know, Hall (OH) McCrery Schiff such time as he may consume to the it’s going to cost $8,000 next year just Hall (TX) McDade Schroeder gentleman from New York [Mr. to go to the University of Kentucky for Hamilton McDermott Schumer OWENS]. Scott 1 year.’’ Hancock McHale (Mr. OWENS asked and was given Hansen McHugh Sensenbrenner He said, Mr. Chairman, it is going to Harman McInnis Serrano permission to revise and extend his re- cost over $8,000 to attend the Univer- Hastert McIntosh Shadegg marks.) sity of Kentucky for 1 year, so in 18 Hastings (FL) McKeon Shaw Mr. OWENS. Mr. Chairman, I rise in Hastings (WA) McKinney Shays years $14,000 is not going to do a thing Hayes McNulty Shuster strong opposition to H.R. 1215 and in for them. Hayworth Meehan Sisisky support of the Democratic substitute. Mr. Chairman, that is why this bill is Hefley Meek Skaggs Mr. Chairman, last weekend, we moved our Skeen wrong. I urge its defeat. Hefner Menendez clocks forward to begin daylight savings time. Heineman Metcalf Skelton Mr. BONIOR. Mr. Chairman, I yield Herger Meyers Slaughter I was shocked that the Republicans allowed such time as she may consume to the Hilleary Mfume Smith (MI) that to occur. After watching the action in this Hilliard Mica Smith (NJ) gentlewoman from Texas [Ms. JACK- Smith (TX) chamber for the past three months, I thought Hinchey Miller (CA) that our clocks only moved backward. SON-LEE]. Hobson Miller (FL) Smith (WA) (Ms. JACKSON-LEE asked and was Hoekstra Mineta Solomon Today, the Republican leadership brings to Hoke Minge Souder the floor yet another bill that takes us back in given permission to revise and extend Spence her remarks. Holden Mink time. H.R. 1215 takes us back to the 1980's Horn Moakley Spratt Ms. JACKSON-LEE. Mr. Chairman, I Hostettler Molinari Stearns when Reagan-Bush policies created a huge rise to support a real tax bill, one that Houghton Mollohan Stenholm chasm between the rich and poor. This bill Hoyer Montgomery Stockman in fact saves student loans, and I sup- Stokes sets out to make that gap even wider and Hunter Moorhead drive a wedge between the ``haves'' and port the Gephardt bill. Hutchinson Moran Studds Mr. ARCHER. Mr. Chairman, I make Hyde Morella Stump ``have-nots'' of our society. Inglis Murtha Stupak ``Republican tax fairness'' is as much an the point of order that a quorum is not Talent Istook Myers oxymoron as ``you have to be cruel to be present. Jackson-Lee Myrick Tanner The CHAIRMAN. Evidently a quorum Jacobs Nadler Tate kind.'' In the name of deficit reduction, House is not present. Jefferson Neal Tauzin Republicans have slashed programs serving Johnson (CT) Nethercutt Taylor (MS) Members will record their presence Taylor (NC) the nation's most needy by $76 billion, while Johnson (SD) Neumann preparing to dish out $189 billion in tax by electronic device. Johnson, E. B. Ney Tejeda The call was taken by electronic de- Johnson, Sam Norwood Thomas breaks, mostly to the nation's wealthiest Amer- Johnston Nussle Thompson icans. vice, and the following Members re- Thornberry Jones Oberstar Releasting $189 billion to the American peo- sponded to their names: Kanjorski Obey Thornton Thurman ple would not be so bad if it were done equi- [Roll No. 291] Kaptur Olver Kasich Ortiz Tiahrt tably, but equity and this bill are far from syn- Abercrombie Canady Duncan Kelly Owens Torkildsen Torres onymous. The average tax cut for the top 1% Ackerman Cardin Dunn Kennedy (MA) Packard of income-earning families would be $20,362 Allard Castle Durbin Kennedy (RI) Pallone Torricelli Andrews Chabot Edwards Kennelly Parker Towns under the Republican proposal. But for fami- Archer Chambliss Ehlers Kildee Paxon Traficant lies in the bottom one-fifth, the average tax cut Tucker Armey Chenoweth Ehrlich Kim Payne (NJ) would be a mere $36. So while wealthy fami- Bachus Christensen Emerson King Payne (VA) Upton Baesler Chrysler Engel Kingston Peterson (FL) Velazquez lies are out purchasing expensive, foreign Baker (CA) Clay English Klink Peterson (MN) Vento cars, poor families will be buying a couple of Baker (LA) Clayton Ensign Klug Petri Visclosky Volkmer tanks of gas. Baldacci Clement Eshoo Knollenberg Pickett The Republican bill also takes us back to Ballenger Clinger Evans Kolbe Pombo Vucanovich Barcia Clyburn Everett LaFalce Pomeroy Waldholtz the early 1980's when giant corporations were Barr Coble Ewing LaHood Porter Walker tax freeloaders. Through massive corporate Walsh Barrett (NE) Coburn Farr Lantos Portman depreciation loopholes and the repeal of the Barrett (WI) Coleman Fattah Largent Poshard Wamp Bartlett Collins (GA) Fawell Latham Pryce Ward corporate ``alternative minimum tax,'' H.R. Barton Collins (IL) Fazio LaTourette Quillen Waters 1215 would guarantee that more than half of Bass Collins (MI) Fields (LA) Laughlin Quinn Watt (NC) Watts (OK) the largest companies in America would pay Bateman Combest Fields (TX) Lazio Radanovich no taxes at all, just as they did prior to enact- Becerra Condit Filner Leach Rahall Weldon (FL) Beilenson Conyers Flake Levin Ramstad Weldon (PA) ment of the 1986 tax reform package. Bentsen Cooley Flanagan Lewis (CA) Rangel Weller Additionally, Republicans are leading us in White Bereuter Costello Foglietta Lewis (GA) Reed the wrong direction on capital gains tax policy. Bevill Cox Foley Lewis (KY) Regula Whitfield Bilbray Coyne Forbes Lightfoot Richardson Wicker Capital gains already enjoy preferential treat- Bilirakis Crane Ford Lincoln Rivers Williams mentÐa lower rate than earned income. That Bishop Crapo Fowler Linder Roberts Wilson Wise sends a message to hard-working Americans Bliley Cremeans Fox Lipinski Roemer trying to move up the economic ladder that we Blute Cubin Franks (CT) Livingston Rogers Wolf Boehlert Cunningham Franks (NJ) LoBiondo Rohrabacher Woolsey value the small minority of people who own Boehner Davis Frelinghuysen Lofgren Ros-Lehtinen Wyden most of the nation's wealth more than we Wynn Bonilla de la Garza Frisa Longley Rose value the large majority of people who work at Bonior Deal Frost Lowey Roth Yates Bono DeFazio Funderburk Lucas Roukema Young (AK) back-breaking jobs for barely a living wage. Borski DeLauro Furse Luther Roybal-Allard Young (FL) Mr. Speaker, that is the wrong message. Browder DeLay Gallegly Maloney Royce Zeliff Zimmer Instead, we should be rewarding people Brown (CA) Dellums Ganske Manton Rush who earn their income through hard work the Brown (FL) Deutsch Gejdenson Manzullo Sabo Brown (OH) Diaz-Balart Gekas most while rewarding those who earn their in- Brownback Dickey Gephardt b 2118 come passively the least; for the latter group Bryant (TN) Dicks Geren already owns the wealth they need to take Bunn Dingell Gibbons The CHAIRMAN. Four hundred six- Bunning Dixon Gilchrest care of themselvesÐthey are already at the Burr Doggett Gillmor teen Members have answered to their top of the economic ladder. Burton Dooley Gilman names, a quorum is present, and the I have a bill that would lead us in this direc- Buyer Doolittle Gonzalez Committee will resume its business. tion, the right direction. H.R. 538, the ``Citi- Callahan Dornan Goodlatte Calvert Doyle Goodling The gentleman from Michigan [Mr. zens' Tax Relief Act of 1995,'' would lower the Camp Dreier Gordon BONIOR] has 7 minutes remaining, and first income tax bracket from 15 percent to April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4309 12.5 percent, giving every American a tax cut. a Rupert Murdoch sitting pretty with a change. Do you realize that since we To pay for it, a huge tax loophole would be $38 million tax break, it is the best of began working on this contract, we eliminatedÐthe favorable tax treatment of in- times, because the Republicans are have met for nearly 100 days, we have herited property. To be equitable, the bill also looking out for you. cast about 250 votes, we have not would exempt from taxes the first $250,000 of But if you are a kid looking for a adopted one amendment that deals capital gains on the sale of inherited homes school lunch, if you are a senior look- with jobs, one amendment that deals (which is currently available only to individuals ing for a little heating assistance, if with income, one amendment that over the age of 55 and only for the first you are a student looking for a school deals with health care, one amendment $125,000) and provide lower capital gains tax loan, it may be the worst of times, be- that deals with education, one amend- rates on the inherited property of heirs who cause you are not part of the Gingrich ment that deals with job training. Not pay the tax in the first four years after enact- revolution. one. Let us do something that targets ment of the bill. Time and time again this past 6 the middle class for a change, 100 per- Currently, when a person dies and leaves months we have heard Republicans cent. 100 percent of the benefits in the property to a family member, the amount by talk about renewing American civiliza- Gephardt substitute go to working which that property increased in value during tion. We have heard our Speaker talk middle class families. It will help them the person's lifetime is never taxed. Such a about renewing American civilization. send their kids to school, it will not policy is fundamentally unfair considering that But they do not seem to understand cut student loans, it will let them de- if the same person sells the property before that you cannot renew American civili- duct student loans. And, above all, it dying, the individual is taxed on the gain. My zation by taking Big Bird from a 5- will help parents save for their chil- bill would reverse that policy. year-old, school lunch from a 10-year- dren’s education. A study conducted by two Cornell University old, summer jobs from a 15-year-old, Mr. Chairman, this debate really school loans from a 20-year-old, in professors showed that more than $10 trillion comes down to one very simple ques- order to pay for a tax cut for the privi- worth of property will be inherited over the tion: Whose side are you on? Are you next 45 years. That means that there will be leged few in our society. And that is on the side of middle class families, or several trillion dollars of capital gains that exactly what this bill that we will be are you on the side of the privileged should be taxed. If Congress takes advantage voting on tonight does. And everybody few? And if you think the problem in of this opportunity, we would have more than knows it. America is that the wealthy need more enough money to pay for my proposed tax I say to my Republican friends, do cut, so that the bill actually would increase the not come to this floor tonight and tell tax breaks, then vote against this sub- revenues of the federal government. With the us this is not a tax bill for the wealthy, stitute. But if you really want to do money left over, we could invest in job cre- because 106 Members of your own cau- something to help middle income fami- ation and job training programs so that every cus signed a letter that said it was a lies in this country and make this American who is willing and able to work tax bill for the wealthy. It was not a country stronger, I urge my colleagues, would have the opportunity to do so. Democrat who said, ‘‘Most people in vote for the Gephardt amendment, and H.R. 1215 and other Republican proposals my district do not consider someone give the next generation a fighting do very little to create jobs for those who need making over $200,000 a year middle chance. them. In fact, the combination of tax cuts and class.’’ That, my friends, was a Repub- b budget cuts is proving to be a one-two punch lican. 2130 for America's poor. The bottom 26 percent of Now, this bill operates under the old Mr. ARCHER. Mr. Chairman, to close families who have incomes below $20,000 a Republican theory that the best way to on the substitute, I yield the balance of year would receive less than 2 percent of the feed the birds is to give more oats to my time to the gentleman from Texas Republican tax cut benefits. Meanwhile, most the horses. And do not tell us you are [Mr. ARMEY], the majority leader. of the budget reductions proposed by House looking out for the next generation ei- Mr. ARMEY. I thank the gentleman Republicans have been in programs targeted ther, because you cannot save the chil- for yielding me the time. to the poor. These reductions are only a small dren of the next generation by punish- Mr. Chairman, we are not passing fraction of those needed to balance the budget ing the children of this generation. this tax relief bill tonight because it is over the next 7 years, which means that more Now, Republicans have come to the in the Contract With America. It is in bitter pills are on their way. floor all afternoon and all evening and the Contract With America because it Republicans have offered nothing to poor they kept saying they are making his- is needed by the American people. and working class Americans this session and tory today. But I say they are repeat- When we wrote the Contract With have taken much away. Now they are propos- ing history. I was here in 1981. I was America, we said we agree with the ing to make federal employees pay, on aver- here in 1981, when one of the worst American people that the Federal Gov- age, an additional $905 a year to participate in votes of the history of this country ernment is too big and takes too much the federal retirement program. That will effec- were cast. Republicans came to the of their hard-earned money. The aver- tively wipe out any benefit federal employees floor back then and said they had this age family today pays more in taxes might have received from the tax cut. magic solution. We are going to cut than it does in food, shelter, and cloth- Republicans, however, have offered sweet- taxes. We are going to increase defense ing combined. Most households have a heart tax deals to the wealthiest corporations spending, and magically we are going second wage earner not to support the and sweetheart tax breaks for the wealthiest to balance the budget. family but to support the government. individuals. One of these individuals is Rupert Well, we know what happened. The Mr. Chairman, starting today, relief Murdoch, a special friend of the Speaker of rich got richer, the poor got poorer, the is on the way. Mr. Chairman, we have the House. The Republican leadership made middle class got squeezed, and the defi- relief for the families, relief for the el- sure that tax incentives for media conglom- cit exploded. And now Republicans are derly, relief for the small business en- erates to sell broadcasting properties to mi- ready to do it all over again, and once trepreneur, relief for savers, and relief norities were eliminated from the law, but at again when we ask for the details, all for investors. the same time made sure that Rupert they say is ‘‘Trust us. Trust us.’’ Mr. Chairman, there are many provi- Murdoch's $150 million deal was untouched. Well, fool me once, shame on you; sions in this bill that do not get much Mr. BONIOR. Mr. Chairman, I yield fool me twice, shame on me. It is no se- attention, but they make real dif- myself such time as I may consume. cret why the polls are telling you do ferences in the lives of real people. Mr. Chairman, some day when histo- not do this tonight. The American peo- There is, for example, in this bill an rians look back on the first 100 days of ple will not be fooled again. NEWT adoption tax credit to make it easier this Congress, I think they may borrow GINGRICH calls this bill the crown jewel for loving couples to provide homes for that phrase from Charles Dickens, ‘‘It of the contract. Well, it may be the precious children. was the best of times, it was the worst crown jewel for the wealthy, but for There is an IRA for education, medi- of times.’’ If you are a Fortune 500 the rest of America it is nothing but cal expenses, first-time home pur- company looking for a big tax cut, if fool’s gold. chases and retirement, and it is avail- you are a billionaire Benedict Arnold Mr. Chairman, let us do something able to the work-at-home parent as sitting on a Caribbean beach, if you are today for middle class families for a well. H 4310 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Our bill has a tax credit for families tably, the Republicans are ready to try this ex- glad that the motion to recommit includes who take care of their elderly parents periment again today. Congressional pension reform, and I plan to at home. It has a home office deduction Proponents of the Contract tax bill claim it support this motion which requires that the so more people can work at home and will help the American middle-class. Well, it Ways and Means Committee fix Congres- spend more time with their children. won't. Indeed, it is estimated that 51 percent sional pensions. However, I cannot support This tax relief will benefit all Ameri- of the benefits from this bill go to the top 12 fixing Congressional pensions as part of this cans just like the capital gains tax cut percent of earners. For the average family spurious Republican tax bill. will, despite the tired class warfare most of us would consider middle-class, those Mr. Chairman, the Contract tax bill would rhetoric we have heard today. making $30,000 to $50,000, would get a tax also require the new Governor of Rhode Is- Let me explain what capital gains break of $569, but a family making over land to make-up the loss of $280 million in means to a working American, as told $200,000 gets $11,266. revenues over 10 years. Rhode Island already to me by a machinist on the plant floor If this isn't unfair enough to make someone faces a budget crisis and unfortunately this bill in Irving, Texas. question this bill, the repeal of the Alternative just compounds this problem. But Rhode Is- When he showed me his new machine Minimum Tax, which President Reagan intro- land's Governor might be lucky compared with with which he worked, he said, ‘‘Con- duced, further tilts the balance against working New Jersey's Governor Whitman whose State gressman, with this machine I can do Americans. The AMT ensures that large cor- loses $3 billion over 10 years. better work. I can reach higher levels porations have to pay at least some tax. Prior In contrast, the Democratic alternative pro- of tolerance than I’ve ever done before. to President Reagan's introduction of the I produce a better quality, and we have AMT, large, profitable companies paid no tax vides fair, reasonable, and targeted tax bene- more satisfied customers. My produc- and in some cases actually got rebates. For fits aimed at helping middle-class families tivity goes up, and my wages have gone example, AT&T got a $636 million rebate, make a productive investment in their chil- up.’’ even though its profits were $24.9 billion. Du- dren's education. The Democratic tax fairness He said, ‘‘Congressman, this machine Pont got a $179 million rebate, but made $3.8 bill provides a $10,000 tuition deduction. It ex- cost $1 million. I could work all my life billion. GE didn't get a rebate, it just didn't pay pands the number of Americans who are eligi- and not buy this machine. And I appre- taxes for 3 years between 1982 and 1985. ble for a tax deductible IRA which will increase ciate those savers who made that How does this help middle-class families? our savings rate. The Democratic alternative money available so that machine can Not only does the Contract tax bill do little would create new U.S. savings bond which be there and I can have my job.’’ for the middle-class, it also swells the deficit. would help middle-class families save money When we reduce the cost of capital Over the first 5 years, the Contract tax bill for their children's education. It would also and reward savers so more investments would cost roughly $200 billion which the ma- allow students to deduct the interest on their are made and more people have more jority has paid for by cutting child nutrition pro- loans. The Democratic alternative is geared and better jobs, the economy will grow, grams and tightening the caps on discre- toward education because education is an in- and we will receive more tax revenue. I tionary spending. However, the total cost over vestment in our future. Education means an don’t care what the scorekeepers say. 10 years would be almost $700 billion. I be- increased earning potential, greater global Mr. Chairman, for too long we have lieve this is why many in the Senate, like Sen- competitiveness, and self-sufficiency. been taking too much money away ator CHAFEE, are opposed to the Contract's Of course, there are other proposals that from working Americans and sending it tax cuts. the minority leader's substitute might have in- to Washington. It is time tonight that If the Republicans follow through with their cluded, But, to the alternative bill's credit it we send more of that money back to pledge to protect Social Security and defense maintains deficit reduction as the major focus working Americans. spending while balancing the budget, this tax of Congress. It is time to shift decisions away bill will require 30 percent cuts in all other do- Mr. Chairman, this debate did not have to from the hallowed halls of Washington mestic programs like student loans, transpor- be them against us. The Republicans could and back to the more hallowed kitchen tation, and job training. Cutting the deficit fur- have worked with Democrats to develop an af- tables of America. It is time for us to ther than we did in 1993 will be a tough job, fordable, fair, bi-partisan tax bill. Indeed, there vote for our constituents, vote for the but the Contract tax bill makes achieving a are many items in the Contract tax bill that I real families in their real homes back balanced budget all the more difficult, if not support and wish we could have worked to- in our real America, vote against the impossible. I would also like to remind my col- gether to pass. First, I am in favor of reducing Gephardt substitute and vote the Con- leagues on the other side of the aisle that they tract tax provision. Then we will come promised to pass specific spending cuts be- taxes for families making under $100,000. back and we will, in fact, give America fore they passed any tax cuts. Second, I have voted for targeted capital gains a real balanced budget that really gets I know many of my Republican colleagues tax breaks in the past in order to spur produc- there without touching Social Secu- share this concern over the deficit impact of tive investments in jobs, not just for Wall rity. their party's tax bill. Indeed, many of them Street billionaires. Third, I would like to see a Mr. Chairman, I, too, have read Dick- tried to add a provision to the bill to prohibit repeal or modification of the change in the ens. When we are done doing all of this tax cuts before the deficit is eliminated. How- amount of Social Security that is subject to for the children of America, they, too, ever, their party's leadership was not willing to taxation. However, I am concerned that Re- like Pip, can have once again in Amer- support that proposal. Instead, the Contract publicans would change this tax by cutting ica great expectations. tax bill only requires an annual report on funds for the Medicare trust fund. Fourth, I Mr. REED. Mr. Chairman, I rise in support progress in balancing the budget. However, would be glad to support a bipartisan change of the Gephardt education tax deduction legis- the Democratic alternative requires that all tax in the Social Security earnings limit. Fifth, I be- lation and in strong opposition to the ill-con- cuts would be revoked, if deficit targets are lieve we need to correct the home office de- ceived Republican tax bill. not achieved. This Democratic provision guar- duction. Finally, I am sure there are a number I am opposed to the Contract on America antees that deficit reduction comes before any of tax provisions we could all agree on, but tax bill because it is a return to the failed poli- tax cuts. the Republicans decided against a bipartisan cies of the 1980's, it provides much for the I support cutting Congressional pensions approach. well-to-do and little for the middle-class, and it and bringing them in line with private sector Mr. Chairman, I wish the majority had de- will massively increase the deficit. It is also in- pensions which a provision of this bill will par- cided on a bipartisan approach and developed teresting to note that this tax cut bill actually tially do. However, I am disappointed that this a sensible tax bill that truly helps America's would raise taxes on Federal workers. initiative was included in this mistaken tax bill struggling families. Instead, they chose to In the 1980's the American people were told solely for political effect. favor those least in need and cut programs for that tax cuts for the wealthy would trickle In response, I wrote and urged Minority society's most vulnerable membersÐchildren. down to the average American. They didn't. Leader GEPHARDT to include Congressional Ms. ESHOO. Mr. Chairman, the Gephardt The American people were also told that the pension reform in the only amendment al- alternative is about opportunity, growth, and deficit would be cut. Well it wasn't. Regret- lowed by the Republicans. Therefore, I am the future. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4311 While the Republicans are busy gutting nu- NOES—313 Walker Weldon (PA) Wolf Walsh Weller Young (AK) Allard Franks (CT) McNulty trition programs and student loans to finance Wamp White Young (FL) tax cuts for the rich, we have a different ap- Archer Franks (NJ) Meehan Waters Whitfield Zeliff Armey Frelinghuysen Metcalf proach. Watt (NC) Wicker Zimmer Bachus Frisa Meyers Watts (OK) Williams We believe that education is the seed corn Baesler Funderburk Mfume Weldon (FL) Wilson which allows our Nation to harvest a trained Baker (CA) Furse Mica Baker (LA) Gallegly Miller (FL) NOT VOTING—2 work force, scientific breakthroughs, and Ballenger Ganske Minge Pelosi Reynolds greater prosperity in the years ahead. Barr Gekas Molinari Our substitute provides incentives for middle Barrett (NE) Geren Mollohan b 2152 class Americans to invest in higher education Barrett (WI) Gibbons Montgomery Bartlett Gilchrest Moorhead Mr. BISHOP, Ms. MCKINNEY, and and gives them the opportunity to save suffi- Barton Gillmor Morella Mr. PASTOR changed their vote from ciently for this investment. Bass Gilman Murtha ‘‘aye’’ to ‘‘no.’’ We know the 21st century will demand high- Bateman Goodlatte Myers Mr. WYNN changed his vote form er skills from our people. The only way our Becerra Goodling Myrick Beilenson Goss Nethercutt ‘‘no’’ to ‘‘aye.’’ country can remain competitive is to invest in Bentsen Graham Neumann So the amendment in the nature of a Bereuter Green Ney our human capital. That means investing in substitute was rejected. educating our children. Berman Greenwood Norwood Bilbray Gunderson Nussle The result of the vote was announced The Republican agenda is not about growth Bilirakis Gutknecht Ortiz as above recorded. and opportunity, it's about helping the rich at Bishop Hall (OH) Orton The CHAIRMAN. The question is on the expense of the middle class. It's about Bliley Hall (TX) Oxley Blute Hamilton Packard the amendment in the nature of a sub- eating our seed corn instead of planting it. Boehlert Hancock Parker stitute, as modified, made in order by The Gephardt substitute is a common sense Boehner Hansen Pastor the rule. cut and invest proposal targeted at the middle Bonilla Harman Paxon Bono Hastert Payne (VA) The amendment in the nature of a class. Hard-working Americans deserve more Brewster Hastings (WA) Peterson (FL) substitute, as modified, was agreed to. than being shafted in the fine print of the Con- Brown (CA) Hayes Petri The CHAIRMAN. Under the rule, the tract With America. This package provides Brownback Hayworth Pickett Bryant (TN) Hefley Pombo Committee rises. them with the much-needed relief they and Bryant (TX) Heineman Porter Accordingly, the Committee rose; this country deserve. Bunn Herger Portman and the Speaker pro tempore [Mr. The CHAIRMAN. The question is on Bunning Hilleary Poshard DREIER] having assumed the chair, Mr. the amendment in the nature of a sub- Burr Hilliard Pryce Burton Hobson Quillen BOEHNER, Chairman of the Committee stitute offered by the gentleman from Buyer Hoekstra Quinn of the Whole House on the State of the Missouri [Mr. GEPHARDT]. Callahan Hoke Radanovich Union, reported that that committee, The question was taken; and the Calvert Horn Ramstad Camp Hostettler Rangel having had under consideration the bill Chairman announced that the noes ap- Canady Houghton Regula (H.R. 1215) to amend the Internal Reve- peared to have it. Cardin Hoyer Riggs nue Code of 1986 to strengthen the Castle Hunter Rivers American family and create jobs, pur- RECORDED VOTE Chabot Hutchinson Roberts suant to House Resolution 128, he re- Mr. BONIOR. Mr. Chairman, I de- Chambliss Hyde Roemer Chapman Inglis Rogers ported the bill back to the House with mand a recorded vote. Chenoweth Istook Rohrabacher an amendment adopted by the Commit- A recorded vote was ordered. Christensen Jacobs Ros-Lehtinen tee of the Whole. The vote was taken by electronic de- Chrysler Johnson (CT) Roth The SPEAKER pro tempore. Under vice, and there were—ayes 119, noes 313, Clinger Johnson, Sam Roukema Coble Jones Roybal-Allard the rule, the previous question is or- not voting 2, as follows: Coburn Kanjorski Royce dered. Collins (GA) Kaptur Salmon [Roll No 292] Combest Kasich Sanford The question is on the amendment. Condit Kelly Saxton The amendment was agreed to. AYES—119 Cooley Kennedy (MA) Scarborough The SPEAKER pro tempore. The Abercrombie Gejdenson Owens Costello Kildee Schaefer Ackerman Gephardt Pallone Cox Kim Schiff question is on the engrossment and Andrews Gonzalez Payne (NJ) Coyne King Scott third reading of the bill. Baldacci Gordon Peterson (MN) Crane Kingston Seastrand The bill was ordered to be engrossed Barcia Gutierrez Pomeroy Crapo Kleczka Sensenbrenner and read a third time, and was read the Bevill Hastings (FL) Rahall Cremeans Klink Shadegg Bonior Hefner Reed Cubin Klug Shaw third time. Borski Hinchey Richardson Cunningham Knollenberg Shays MOTION TO RECOMMIT OFFERED BY MR. Boucher Holden Rose Davis Kolbe Shuster GEPHARDT Browder Jackson-Lee Rush Deal LaFalce Sisisky Brown (FL) Jefferson Sabo DeFazio LaHood Skaggs Mr. GEPHARDT. Mr. Speaker, I offer Brown (OH) Johnson (SD) Sanders DeLay Largent Skeen a motion to recommit with instruc- Clay Johnson, E. B. Sawyer Dellums Latham Skelton tions. Clayton Johnston Schroeder Deutsch LaTourette Smith (MI) Clement Kennedy (RI) Schumer Diaz-Balart Laughlin Smith (NJ) The SPEAKER pro tempore. Is the Clyburn Kennelly Serrano Dickey Lazio Smith (TX) gentleman opposed to the bill? Coleman Lantos Slaughter Dicks Leach Smith (WA) Mr. GEPHARDT. Yes; I am opposed Collins (IL) Levin Spratt Doggett Lewis (CA) Solomon to the bill in its present form, Mr. Collins (MI) Lewis (GA) Stokes Dooley Lewis (KY) Souder Conyers Lofgren Studds Doolittle Lightfoot Spence Speaker. Cramer Lowey Stupak Dornan Lincoln Stark The SPEAKER pro tempore. The Danner Maloney Tanner Doyle Linder Stearns Clerk will report the motion to recom- de la Garza Manton Thompson Dreier Lipinski Stenholm DeLauro Markey Thornton Duncan Livingston Stockman mit. Dingell Martinez Torres Dunn LoBiondo Stump The Clerk read as follows: Dixon Mascara Torricelli Ehlers Longley Talent Mr. GEPHARDT moves to recommit the bill Durbin Matsui Towns Ehrlich Lucas Tate H.R. 1215 to the Committee on Ways and Edwards McHale Traficant Emerson Luther Tauzin Engel Meek Tucker English Manzullo Taylor (MS) Means with instructions to report the same Eshoo Menendez Velazquez Ensign Martini Taylor (NC) back to the House forthwith with the follow- Evans Miller (CA) Vento Everett McCarthy Tejeda ing amendments: Farr Mineta Volkmer Ewing McCollum Thomas In paragraph (1) of section 4003(a), strike Fattah Mink Ward Fawell McCrery Thornberry all subparagraphs except subparagraph (C) Fazio Moakley Waxman Fields (LA) McDade Thurman (and make the necessary conforming gram- Filner Moran Wise Fields (TX) McDermott Tiahrt matical changes). Flake Nadler Woolsey Flanagan McHugh Torkildsen Foglietta Neal Wyden Foley McInnis Upton Strike paragraph (2) of section 4003(a) and Ford Oberstar Wynn Forbes McIntosh Visclosky insert the following: Frank (MA) Obey Yates Fowler McKeon Vucanovich (2) DEDUCTIONS.—Section 8334(a) is amend- Frost Olver Fox McKinney Waldholtz ed by adding after paragraph (3) (as added by H 4312 CONGRESSIONAL RECORD — HOUSE April 5, 1995 paragraph (3)(A) of this subsection) the fol- After subtitle A of title VI, insert the fol- ‘‘SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIA- lowing: lowing new subtitles: TION. ‘‘(a) GENERAL RULES.—For purposes of this (4) Effective with respect to service after Subtitle B—Tax Benefit Contingent on subtitle— December 31, 1995, in the case of a Member, Federal Budget the employing agency shall (instead of the ‘‘(1) CITIZENS.—If any United States citizen percentage otherwise applicable under the SEC. 6201. EFFECTIVE DATE OF TAX BENEFIT DE- relinquishes his citizenship during a taxable first sentence of paragraph (1)) deduct and LAYED UNTIL FEDERAL BUDGET year, all property held by such citizen at the PROJECTED TO BE IN BALANCE. withhold from basic pay of the Member the time immediately before such relinquish- percentage of basic pay applicable under sub- (a) IN GENERAL.—Solely for purposes of ment shall be treated as sold at such time section (c).’’. subtitle A, notwithstanding any provision of for its fair market value and any gain or loss In paragraph (3) of section 8334(a) of title 5, subtitle A, and any amendment made by shall be taken into account for such taxable United States Code (as proposed to be such subtitle, except as otherwise provided year. in this section— amended by section 4003(a)(3)(A)) insert ‘‘, in ‘‘(2) CERTAIN RESIDENTS.—If any long-term the case of a Member,’’ after ‘‘shall’’. (1) any reference in such subtitle (or in any resident of the United States ceases to be Strike paragraph (4) of section 4003(a). amendment made by such subtitle) to 1996 subject to tax as a resident of the United Strike subsection (b) of section 4003 and in- shall be treated as a reference to the cal- States for any portion of any taxable year, sert the following: endar year ending in the first successful defi- all property held by such resident at the (b) FERS.— cit reduction year, and time of such cessation shall be treated as (2) any reference in such subtitle (or in any (1) IN GENERAL.—Section 8422(a) is amended sold at such time for its fair market value by adding at the end the following: amendment made by such subtitle) to any and any gain or loss shall be taken into ac- ‘‘(3) In applying the provisions of para- later calendar year shall be treated as a ref- count for the taxable year which includes erence to the calendar year which is the graph (2)(B) in the case of a Member, ‘71⁄2’ in the date of such cessation. same number of years after such first cal- clause (i) thereof shall, for purposes of apply- ‘‘(b) EXCLUSION FOR CERTAIN GAIN.—The ing such provisions with respect to basic pay endar year as such later year is after 1996. amount which would (but for this sub- for service performed— (b) FIRST SUCCESSFUL DEFICIT REDUCTION section) be includible in the gross income of ‘‘(A) in calendar year 1996, be deemed to YEAR.—For purposes of this section— any taxpayer by reason of subsection (a) (1) IN GENERAL.—The term ‘‘first successful read ‘81⁄2’; shall be reduced (but not below zero) by ‘‘(B) in calendar year 1997, be deemed to deficit reduction year’’ means the first fiscal $600,000. year beginning after the date of the enact- read ‘9’; ‘‘(c) PROPERTY TREATED AS HELD.—For pur- ‘‘(C) after calendar year 1997, be deemed to ment of this Act with respect to which there poses of this section, except as otherwise is an OMB certification before the beginning read ‘91⁄2’; provided by the Secretary, an individual of such fiscal year that the budget of the (2) TECHNICAL AMENDMENT.—Paragraph (1) shall be treated as holding— of section 8422(a) is amended by striking United States will be in balance by fiscal ‘‘(1) all property which would be includible ‘‘paragraph (2).’’ and inserting ‘‘paragraphs year 2002 based upon estimates of enacted in his gross estate under chapter 11 were (2) and (3).’’. legislation, including the amendments made such individual to die at the time the prop- Strike subsection (c) of section 4003 and re- by this Act. erty is treated as sold, designate subsection (d) thereof accordingly. (2) OMB CERTIFICATION.—The term ‘‘OMB ‘‘(2) any other interest in a trust which the In section 8339a(a) of title 5, United States certification’’ means a written certification individual is treated as holding under the Code (as proposed to be inserted by section made solely for purposes of this subtitle by rules of section 679(e) (determined by treat- 4004(a)(1)) and section 8461a(a) of such title the Director of the Office of Management ing such section as applying to foreign and (as proposed to be inserted by section and Budget to the President and the Con- domestic trusts), and 4004(b)(1)), strike ‘‘a separation’’ and insert gress. ‘‘(3) any other interest in property speci- ‘‘the separation of a Member’’. (c) CERTIFICATIONS BEFORE 1997.—Sub- fied by the Secretary as necessary or appro- In section 4005(a), strike paragraph (2) and section (a) shall not apply if there is an OMB priate to carry out the purposes of this sec- conform paragraph (1) accordingly. certification made during 1995 or 1996 that tion. the budget of the United States will be in In section 4005(b), strike ‘‘MEMBERS.—’’ in ‘‘(d) EXCEPTIONS.—The following property balance by fiscal year 2002 based upon esti- paragraph (1) and insert ‘‘IN GENERAL.—’’, shall not be treated as sold for purposes of strike paragraph (2), and redesignate para- mates of enacted legislation, including the this section: amendments made by this Act. graph (3) as paragraph (2). ‘‘(1) UNITED STATES REAL PROPERTY INTER- In subparagraph (B) of section 4005(b)(2) (as SEC. 6202. TERMINATION OF TAX BENEFIT IF ESTS.—Any United States real property in- so redesignated), strike ‘‘and by striking FEDERAL BUDGET DEFICIT REDUC- terest (as defined in section 897(c)(1)), other ‘Congressional employee,’ ’’. TION TARGETS ARE NOT MET. than stock of a United States real property In paragraph (3) of section 8415(g) of title 5, (A) TERMINATION OF CREDIT.—No credit holding corporation which does not, on the United States Code, as proposed to be added shall be allowed by section 23 of the Internal date the individual relinquishes his citizen- by section 4005(b)(2) (as so redesignated), Revenue Code of 1986 (added by subtitle A) ship or ceases to be subject to tax as a resi- strike ‘‘or Congressional employee’’ each for any taxable year beginning after the cal- dent, meet the requirements of section place it appears, and strike ‘‘or (c)’’. endar year in which the first failed deficit 897(c)(2). Strike title V of the bill. reduction year ends. ‘‘(2) INTEREST IN CERTAIN RETIREMENT Strike subtitle A of title VI of the bill (b) FIRST FAILED DEFICIT REDUCTION PLANS.— (other than section 6101). YEAR.—For purposes of this section, the ‘‘(A) IN GENERAL.—Any interest in a quali- In section 23 of the Internal Revenue Code term ‘‘first failed deficit reduction year’’ fied retirement plan (as defined in section of 1986 (as proposed to be added by section means the first fiscal year (beginning after 4974(d)), other than any interest attributable 6101)— the earliest date on which any amendment to contributions which are in excess of any (1) insert ‘‘(or, in the case of taxable years made by subtitle A takes effect) with respect limitation or which violate any condition for beginning before January 1, 2001, the amount to which there is an OMB certification dur- tax-favored treatment. specified in subsection (e))’’ after ‘‘$500’’, ing the 3–month period after the close of ‘‘(B) FOREIGN PENSION PLANS.— (2) strike ‘‘$200,000’’ each place it appears such fiscal year that the actual deficit in the ‘‘(i) IN GENERAL.—Under regulations pre- and insert ‘‘$60,000’’, budget of the United States for such fiscal scribed by the Secretary, interests in foreign (3) strike ‘‘100 times’’ in subsection (b)(2) of year was greater than the deficit target for pension plans or similar retirement arrange- such section 23 and insert ‘‘70 times’’, such fiscal year specified in the following ments or programs. (4) strike ‘‘1996’’ and ‘‘1995’’ in subsection table: ‘‘(ii) LIMITATION.—The value of property (d) of such section 23 and insert ‘‘2001’’ and ‘‘In the case of fiscal year: The deficit target (in which is treated as not sold by reason of this ‘‘2000’’, respectively, and billions) is: subparagraph shall not exceed $500,000. (5) redesignate subsection (e) of such sec- 1996 ...... $150 ‘‘(e) DEFINITIONS.—For purposes of this sec- tion 23 as subsection (f) and insert after sub- 1997 ...... 125 tion— section (d) the following new subsection: 1998 ...... 100 ‘‘(1) RELINQUISHMENT OF CITIZENSHIP.—A ‘‘(e) PHASE IN OF AMOUNT OF CREDIT.—In 1999 ...... 75 citizen shall be treated as relinquishing his the case of taxable years beginning before 2000 ...... 50 United States citizenship on the date the January 1, 2001, subsection (a) shall be ap- 2001 ...... 25 United States Department of State issues to plied by substituting for ‘$500’— 2002 or thereafter ...... 0. the individual a certificate of loss of nation- ‘‘(1) ‘$100’ in the case of taxable years be- ality or on the date a court of the United ginning after December 31, 1996, and before Subtitle C—Revision of Tax Rules on States cancels a naturalized citizen’s certifi- January 1, 1999, and Expatriation cate of naturalization. ‘‘(2) ‘$300’ in the case of taxable years be- SEC. 6301. REVISION OF TAX RULES ON EXPA- ‘‘(2) LONG-TERM RESIDENT.— ginning after December 31, 1998. TRIATION. ‘‘(A) IN GENERAL.—The term ‘long-term In section 6101(c) of the bill, strike ‘‘1995’’ (a) IN GENERAL.—Subpart A of part II of resident’ means any individual (other than a and insert ‘‘1996’’. subchapter N of chapter 1 of the Internal citizen of the United States) who is a lawful Strike subtitles B, C, D, and E of title VI. Revenue Code of 1986 is amended by inserting permanent resident of the United States and, after section 877 the following new section: April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4313 as a result of such status, has been subject to (e) EFFECTIVE DATE.—The amendments mit. We will not urge the point of tax as a resident in at least 10 taxable years made by this section shall apply to— order. during the period of 15 taxable years ending (1) United States citizens who relinquish The SPEAKER pro tempore. The with the taxable year during which the sale (within the meaning of section 877A(e)(1) of under subsection (a) is treated as occurring. the Internal Revenue Code of 1986, as added Chair recognizes the gentleman from ‘‘(B) SPECIAL RULE.—For purposes of sub- by this section) United States citizenship on Missouri [Mr. GEPHARDT] for 5 minutes. paragraph (A), there shall not be taken into or after October 1, 1996, and Mr. GEPHARDT. Mr. Speaker, this account— (2) Long-term residents (as defined in such motion to recommit is very simple. ‘‘(i) any taxable year during which any section) who cease to be subject to tax as A lot of Members have said that this prior sale is treated under subsection (a) as residents of the United States on or after tax bill ought to be directed to middle- occurring, or such date. ‘‘(ii) any taxable year prior to the taxable At the end of the bill insert the following income families. One of the features of year referred to in clause (i). new title: the Republican bill that Members have ‘‘(f) TERMINATION OF DEFERRALS, ETC.—On TITLE VII—HOUSE BUDGET COMMITTEE talked a lot about is the credit for chil- the date any property held by an individual TO REPORT NEW DISCRETIONARY dren, a $1,000 credit, $500 credit for chil- is treated as sold under subsection (a)— SPENDING LIMITS dren. A family of two would get $1,000. ‘‘(1) any period deferring recognition of in- SEC. 701. HOUSE BUDGET COMMITTEE TO RE- But as you know, in the Republican come or gain shall terminate, and PORT NEW DISCRETIONARY SPEND- bill the families who can enjoy this ‘‘(2) any extension of time for payment of ING LIMITS. tax shall cease to apply and the unpaid por- Not later than 20 days after the date of the credit go up to family incomes of tion of such tax shall be due and payable. enactment of this Act, the Committee on the $200,000 a year. ‘‘(g) ELECTION BY EXPATRIATING RESI- Budget of the House of Representatives shall Over 100 Members wrote their own DENTS.—Solely for purposes of determining report legislation which provides general dis- leadership and said that they would gain under subsection (a)— cretionary spending limits as follows: like to have that amount dropped to ‘‘(1) IN GENERAL.—At the election of a resi- (1) With respect to fiscal year 1996: dent not a citizen of the United States, prop- $95,000. I agree with them. I think over $514,998,000,000 in new budget authority and 100 Republicans get it right, and that is erty— $547,245,000,000 in outlays. ‘‘(A) which was held by such resident on (2) With respect to fiscal year 1997: that we ought to give a tax cut to mid- the date the individual first became a resi- $521,281,000,000 in new budget authority and dle-income families and not to families dent of the United States during the period $542,111,000,000 in outlays. at the top. of long-term residency to which the treat- (3) With respect to fiscal year 1998: If you take all of the provisions of ment under subsection (a) relates, and $528,024,000,000 in new budget authority and the Republican bill together, half of ‘‘(B) which is treated as sold under sub- $544,594,000,000 in outlays. section (a), their tax cuts go to families who earn (4) With respect to fiscal year 1999: $100,00 a year or more. shall be treated as having a basis on such $527,051,000,000 in new budget authority and date of not less than the fair market value of $543,130,000,000 in outlays. We can remedy that tonight with such property on such date. (5) With respect to fiscal year 2000: this motion to recommit. It does four ‘‘(2) ELECTION.—Such an election shall $525,091,000,000 in new budget authority and simple things. It substitutes for their apply to all property described in paragraph $541,082,000,000 in outlays. (1), and, once made, shall be irrevocable. bill. First, it says that family tax cred- Make necessary conforming changes in ‘‘(h) DEFERRAL OF TAX ON CLOSELY HELD it should be limited to families making title and section designations and in the ta- BUSINESS INTERESTS.—The District Director $95,000 a year or less. bles of contents. may enter into an agreement with any indi- Second, it puts into effect the retire- vidual which permits such individual to Mr. GEPHARDT (during the reading). ment changes that are in the Repub- defer payment for not more than 5 years of Mr. Speaker, I ask unanimous consent lican bill applying to all Federal em- any tax imposed by subsection (a) by reason that the motion to recommit be consid- ployees including Members of Con- of holding any interest in a closely held busi- ered as read and printed in the RECORD. ness (as defined in section 6166(b)) other than gress; in this motion to recommit, we The SPEAKER pro tempore. Is there make those changes, lowering the a United States real property interest de- objection to the request of the gen- scribed in subsection (d)(1). amount of the Federal retirement but tleman from Missouri? ‘‘(i) REGULATIONS.—The Secretary shall only for Members of Congress. We do Mr. ARCHER. Mr. Speaker, we have prescribe such regulations as may be nec- not in this motion to recommit lower only just received a copy of this mo- essary or appropriate to carry out the pur- the benefits or raise the taxes on Fed- poses of this section. tion to recommit and I think for the eral employees or staffs of the Con- ‘‘(j) CROSS REFERENCE.— benefit of all of the House Members, gress. ‘‘For termination of United States citizenship unless it is extremely lengthy, we Third, the motion to recommit closes for tax purposes, see section should have it read so we will know this egregious loophole allowing people 7701(a)(47).’’ what we are voting on. to renounce their American citizenship (b) DEFINITION OF TERMINATION OF UNITED The SPEAKER pro tempore. Does the in order to avoid paying taxes. Our STATES CITIZENSHIP.—Section 7701(a) of such gentleman object? Code is amended by adding at the end the friends on the other side may say that Mr. ARCHER. I object, Mr. Speaker. following new paragraph: The SPEAKER pro tempore. The it is a human right to be able to leave ‘‘(47) TERMINATION OF UNITED STATES CITI- America and not pay your taxes. I say ZENSHIP.—An individual shall not cease to be Clerk will read. The Clerk continued the reading of it is America’s right that everybody treated as a United States citizen before the ought to pay their taxes to this coun- date on which the individual’s citizenship is the motion. try. treated as relinquished under section b 877A(e)(1).’’ 2200 And finally, we have included the (c) CONFORMING AMENDMENTS.— Mr. ARCHER (during the reading). language of the so-called Browder (1) Section 877 of such Code is amended by Mr. Speaker, we have now had addi- amendment that says none of this tax adding at the end of the following new sub- tional time to read the motion to re- cut will go into effect until we are on section: commit, and I ask unanimous consent the road to a balanced budget, and we ‘‘(f) TERMINATION.—This section shall not will not keep this tax cut for people apply to any individual who is subject to the that the motion be considered as read provisions of section 877A.’’ and printed in the RECORD. unless we stay on the road to a bal- (2) Paragraph (10) of section 7701(b) of such The SPEAKER pro tempore (Mr. anced budget. Code is amended by adding at the end the DREIER). Is there objection to the re- Mr. BROWDER. Mr. Speaker, will the following new sentence: ‘‘This paragraph quest of the gentleman from Texas? gentleman yield? shall not apply to any individual who is sub- There was no objection. Mr. GEPHARDT. I am happy to yield ject to the provisions of section 877A.’’ Mr. ARCHER. Mr. Speaker, let me to the gentleman from Alabama. (d) CLERICAL AMENDMENT.—The table of state we have had only a short time to Mr. BROWDER. Mr. Minority Leader, sections for subpart A of part II of sub- chapter N of chapter 1 of such Code is look at it. We do believe that it is sub- let me clarify this, please. Are you say- amended by inserting after the item relating ject to a point of order. However, con- ing that this has hard numbers for defi- to section 877 the following new item: sidering the gentleman’s results on his cit reduction over the next 7 years? ‘‘Sec. 877A. Tax responsibilities of expatria- substitute, we think he should have an Mr. WISE. Regular order, Mr. Speak- tion.’’ opportunity on his motion to recom- er; regular order, Mr. Speaker. H 4314 CONGRESSIONAL RECORD — HOUSE April 5, 1995 The SPEAKER pro tempore. The much, and it needs to be brought under I urge a ‘‘no’’ vote on recommittal House will be in order. The gentleman control. and a ‘‘yes’’ vote on final passage. from Missouri controls the time. We were given an opportunity to try The SPEAKER pro tempore. Without Mr. GEPHARDT. I yield to the gen- to be helpful. On the opening day, we objection, the previous question is or- tleman from Alabama. spent 14 hours together, and we passed dered on the motion to recommit. Mr. BROWDER. For a point of clari- nine reforms. We applied to the Con- There was no objection. fication, do you tell me that this mo- gress every law which applies to the The SPEAKER pro tempore. The tion to recommit includes the hard rest of the country. We cut the con- question is on the motion to recommit. numbers that were in the Browder-Cas- gressional committee staffs by 30 per- The question was taken; and the tle-Orton-Upton-Martini amendment cent, and we came back later and cut Speaker pro tempore announced that for deficit reduction? the congressional committee budgets the noes appeared to have it. Mr. GEPHARDT. That is correct. As by 30 percent, and we have begun a RECORDED VOTE you know, in the Republican bill it got process of changing the Congress. Mr. GEPHARDT. Mr. Speaker, I de- We committed ourselves to a con- changed so that you did not look back mand a recorded vote. tract, and to be fair, an awful lot of every year to make sure you are on the A recorded vote was ordered. Democrats helped us on key votes. I road to a balanced budget. That is The vote was taken by electronic de- stood on this floor and looked up when what you had in your amendment, and vice, and there were—ayes 168, noes 265, litigation reform for strike law firms that is what is in this amendment, and not voting 1, as follows: passed by 330 to 99, and I was proud of that is a good amendment. [Roll No. 293] Mr. BROWDER. Thank you, Mr. that bipartisan majority. I stood on AYES—168 Leader. this floor and looked in amazement as Mr. GEPHARDT. Let me sum up and 300 Members voted for a balanced budg- Abercrombie Ganske Olver Ackerman Gejdenson Ortiz say that this is a choice that we have et amendment to the Constitution, a strong bipartisan commitment. Andrews Gephardt Owens to make tonight. Baldacci Gonzalez Pallone We have had votes on nine items. We Are we willing to give half of the tax Barcia Gordon Pastor passed eight. We lost on term limits, Barrett (WI) Green Payne (NJ) cut to families who earn $100,000 a year but it was the first time in the history Beilenson Gutierrez Pelosi or more, or are we willing to focus this of the Congress that it had been Bentsen Harman Peterson (MN) tax cut at the hard-working, hard- Berman Hastings (FL) Pomeroy brought to a vote, and I was proud that pressed, squeezed middle-income people Bevill Hayes Poshard this institution debated it honestly and Bishop Hefner Rahall of this country? I know what my vote passionately with Members on both Bonior Hilliard Rangel is for, and I hope your vote will be for Borski Hinchey Reed sides speaking for their conscience, and the middle-income people of this coun- Boucher Holden Richardson we had a recorded vote. Browder Jackson-Lee Rivers try. And now we come, after great work, Brown (FL) Jacobs Rose Vote for this motion to recommit. to a welfare reform bill that empha- Brown (OH) Jefferson Roybal-Allard Bryant (TX) Johnson (SD) Rush The SPEAKER pro tempore. The sizes work and family. All of the things time of the gentleman from Missouri Chapman Johnson, E. B. Sabo we have done, and now we come to to- Clay Johnston Sanders [Mr. GEPHARDT] has expired. night, and let me say first, the motion Clayton Kennedy (MA) Sawyer The Chair recognizes the gentleman to recommit is 16 pages that very few Clement Kennedy (RI) Schroeder from Texas [Mr. ARCHER] for 5 minutes Clyburn Kennelly Schumer Members understand, that has not been Coleman Kildee Scott in opposition to the motion to recom- scored, that is an appropriate effort for Collins (IL) LaFalce Serrano mit. a minority to try to score a coup, but Collins (MI) Lantos Skelton Condit Levin Slaughter Mr. ARCHER. Mr. Speaker, I yield is not serious legislation. I urge a ‘‘no’’ my 5 minutes to the Speaker of the Conyers Lewis (GA) Spratt vote. Costello Lincoln Stokes House of Representatives, the gen- And on final passage, what is your Cramer Lofgren Studds tleman from Georgia [Mr. GINGRICH]. choice, a $500 tax credit that says Danner Lowey Stupak Mr. GINGRICH. Mr. Speaker, let me de la Garza Luther Tanner about children we would rather parents DeLauro Maloney Taylor (MS) say first of all that on this 91st day, I have the money than bureaucrats? And Dellums Manton Tejeda want to thank everyone on both sides an adoption tax credit to help children Deutsch Markey Thompson of the aisle. This has been an immense get into a loving family, a repeal of the Dicks Martinez Thornton amount of work. And despite the occa- Dingell Mascara Thurman tax increase on Social Security so sen- Dixon Matsui Torres sional rancor directed at me person- ior citizens can keep their money, an Doggett McCarthy Torricelli ally, I think frankly everything has increase in the amount that senior citi- Doyle McDermott Towns gone about as well as we could have Durbin McHale Traficant zens can earn up to $39,000 a year with- Edwards McKinney Tucker hoped. out being penalized, an American Engel Meehan Velazquez And I think that the transfer of dream savings account that allows Eshoo Meek Vento power which is one of the great acts of every family to save, to buy a house, Evans Menendez Visclosky majesty in our system, the willingness Farr Mfume Volkmer for an illness, to take care of edu- Fattah Miller (CA) Ward to work together, getting through a lot cation, for retirement, individual re- Fazio Mineta Waters of tough decisions, a lot of tough tirement accounts extended to spouses Fields (LA) Minge Watt (NC) things, that the American people can Filner Mink Waxman so if you stay home to raise your chil- Flake Moakley Williams be proud of the U.S. House for what we dren you are not deprived of the right Foglietta Moran Wise have done together in 91 days, and I to save money, tax credit for long-term Ford Nadler Woolsey thank every Member on both sides for care, and a capital gains tax cut and Frank (MA) Neal Wyden the spirit, sometimes deeply disagree- Frost Oberstar Wynn indexing to create jobs. Furse Obey Yates ing, sometimes voting unanimously, This is a good bill. It is paid for. It but working together very long hours helps create jobs. It strengthens fami- NOES—265 for a very long time. lies. It does what we ought to be doing. Allard Becerra Bunn I find, standing here tonight, a truly It is the last step in the Contract. Archer Bereuter Bunning Armey Bilbray Burr historic and at the same time a truly I thank all of my friends on both Bachus Bilirakis Burton personal experience. sides of the aisle who have worked with Baesler Bliley Buyer Two years ago we were debating a us to get this far. I urge every Member Baker (CA) Blute Callahan Baker (LA) Boehlert Calvert tax increase, and all of our friends on to look at this and ask yourself, in Ballenger Boehner Camp the other side of the aisle were saying, your constituents’ lives, will not a lit- Barr Bonilla Canady ‘‘It will be OK,’’ and by a one-vote mar- tle less money for Government and a Barrett (NE) Bono Cardin gin, they passed it. But the country little more money for those families be Bartlett Brewster Castle Barton Brown (CA) Chabot said it was not OK to raise taxes, that a good thing? And is not that what this Bass Brownback Chambliss Government was too big, it spends too Congress was elected to do? Bateman Bryant (TN) Chenoweth April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4315 Christensen Horn Pickett Federal employees of $4,525 over the The Chair would like to inquire if the Chrysler Hostettler Pombo Clinger Houghton Porter next 5 years through a 313 percent in- gentleman from Texas [Mr. ARCHER], Coble Hoyer Portman crease in their retirement contribu- wishes to be heard on the point of Coburn Hunter Pryce tion, and there is a second more direct order? Collins (GA) Hutchinson Quillen income tax rate increase in this bill. Mr. ARCHER. Mr. Speaker, I do. Combest Hyde Quinn Cooley Inglis Radanovich Mr. Speaker, my parliamentary in- Mr. WALKER. Mr. Speaker, has a Cox Istook Ramstad quiry is directed at the clear, un- point of order been made? Coyne Johnson (CT) Regula equivocal Federal income tax rate in- Mr. Speaker, I have a parliamentary Crane Johnson, Sam Riggs crease. Does clause 5(c) of rule XXI Crapo Jones Roberts inquiry. I do not believe there is a Cremeans Kanjorski Roemer that was passed in the first day of this point of order before the House. Cubin Kaptur Rogers session require a three-fifths majority The SPEAKER pro tempore. The gen- Cunningham Kasich Rohrabacher for any increase in the Federal income Davis Kelly Ros-Lehtinen tleman from Virginia has stated a Deal Kim Roth tax rate? point of order. DeFazio King Roukema The SPEAKER pro tempore. It is the Mr. MORAN. Mr. Speaker, I made a DeLay Kingston Royce opinion of the Chair that it does not parliamentary inquiry, but I would Diaz-Balart Kleczka Salmon apply in this case. Dickey Klink Sanford state a point of order that any vote on Dooley Klug Saxton Ms. MORAN. Mr. Speaker, that was this bill should require a three-fifths Doolittle Knollenberg Scarborough not the question. vote. If it does not require that, then I Dornan Kolbe Schaefer The SPEAKER pro tempore. The rule would appeal the ruling of the Chair. Dreier LaHood Schiff requires a three-fifths vote if the bill Duncan Largent Seastrand The SPEAKER pro tempore. Does the contains a Federal income tax rate in- Dunn Latham Sensenbrenner gentleman from Texas [Mr. ARCHER] Ehlers LaTourette Shadegg crease, and this bill does not. desire to be heard on the point of Ehrlich Laughlin Shaw Mr. MORAN. Mr. Speaker, further order? Emerson Lazio Shays parliamentary inquiry. It would appear English Leach Shuster Mr. ARCHER. Mr. Speaker, I under- to me then that clause 5(c) of rule XXI Ensign Lewis (CA) Sisisky stood the gentleman from Virginia Everett Lewis (KY) Skaggs is meaningless, since we have never Ewing Lightfoot Skeen changed any income tax rate, increased made a point of order and the Chair Fawell Linder Smith (MI) it or decreased it, without first strik- ruled against the point of order. Am I Fields (TX) Lipinski Smith (NJ) correct? Flanagan Livingston Smith (TX) ing the prevailing tax rate and insert- Foley LoBiondo Smith (WA) ing a new tax rate. I understand that The SPEAKER pro tempore. The Forbes Longley Solomon the ruling of the Chair is based upon a chair will continue to listen to an ar- Fowler Lucas Souder gument that is provided by the chair- Fox Manzullo Spence conclusion by the Joint Tax Commis- Franks (CT) Martini Stark sion that the provision we passed in man of the Committee on Ways and Franks (NJ) McCollum Stearns the first day of this session does not Means before finally ruling. Frelinghuysen McCrery Stenholm apply to effective tax rate changes, and Mr. ARCHER. Mr. Speaker, I would Frisa McDade Stockman be pleased to try to help the Chair to Funderburk McHugh Stump that in fact the change from the cap- Gallegly McInnis Talent ital gains rate of 28 percent to 39.6 per- support his ruling. Gekas McIntosh Tate cent does not apply because we first First, as a result of the enactment of Geren McKeon Tauzin the 50 percent exclusion applicable gen- Gibbons McNulty Taylor (NC) struck the 28 percent before imposing Gilchrest Metcalf Thomas the 39.6 percent as it applies to capital erally, taxpayers, other than those de- Gillmor Meyers Thornberry gains. scribed in the following two para- Gilman Mica Tiahrt Mr. Speaker, that is the way we have graphs, would have a tax rate lower Goodlatte Miller (FL) Torkildsen Goodling Molinari Upton done every tax rate change. You first than 28 percent. Thus, the 28 percent Goss Mollohan Vucanovich have to strike the existing change and maximum rate of section 1(h) of cur- Graham Montgomery Waldholtz then impose a new one. That means rent law would not cause a reduction in Greenwood Moorhead Walker tax liability as compared with that Gunderson Morella Walsh that subsequently, if this ruling pre- Gutknecht Murtha Wamp vails, that this body is able to increase under current law; that is, as relates to Hall (OH) Myers Watts (OK) tax rates anytime it wants simply by current law liability, the provision Hall (TX) Myrick Weldon (FL) striking the existing rate, putting in a would be inoperative. Hamilton Nethercutt Weldon (PA) Hancock Neumann Weller new rate, or, if it chooses, to say that No. 2, the 50 percent exclusion would Hansen Ney White the taxes will now apply to 110 percent not apply to collectibles. Under H.R. Hastert Norwood Whitfield of income without changing the tax 1215, for this group of taxpayers the Hastings (WA) Nussle Wicker Hayworth Orton Wilson rates. Mr. Speaker, this is a very dan- maximum rate of 28 percent is retained Hefley Oxley Wolf gerous precedent. in H.R. 1215. Heineman Packard Young (AK) Mr. Speaker, in light of the fact I No. 3, a question has been raised as to Herger Parker Young (FL) have a letter from the Treasury De- the potential application of the 28 per- Hilleary Paxon Zeliff Hobson Payne (VA) Zimmer partment that says this is a Federal cent maximum rate under current law Hoekstra Peterson (FL) tax rate increase, and I have a letter for taxpayers currently qualifying for Hoke Petri from the Small business Committee the special rules of existing section of NOT VOTING—1 identifying the taxpayers and small the law, 1202. In light of the fact that Reynolds businesses that will have to pay the 36 this provision would be repealed by percent increase in the effective in- 1215, the maximum rate of 28 percent b 2231 come tax rate that applies to investors would have no further application. Mr. GIBBONS and Mr. STARK in small businesses, I would ask the Moreover, it should be noted that the changed their vote from ‘‘aye’’ to ‘‘no.’’ Speaker what clause 5(c) of rule XXI special rules in section 1202 are an ex- So the motion to recommit was re- actually means if it does not apply to clusion provision rather than a rate jected. this income tax rate increase? Is the provision. The results of the vote was an- Speaker suggesting that any time Further, it should be noted that con- nounced as above recorded. there is an effective tax rate change, cerns as to whether repeal of current PARLIAMENTARY INQUIRIES that what we passed does not apply? law, section 1202, in conjunction with Mr. MORAN. Mr. Speaker, I have a When would it ever apply, if it does not the repeal of current law, section 1(h), parliamentary inquiry. apply in this instance, Mr. Speaker? constitutes a rate increase, are focused The SPEAKER pro tempore. The gen- The Speaker pro tempore. The Chair on the effective rate impact rather tleman will state it. is not in a position to answer hypo- than the occurrence of any income tax Mr. MORAN. Mr. Speaker, in my thetical questions. It has been the de- rate increase. opinion there are two Federal income termination of the Chair that this The House rule in question is not in- tax increases in this bill before us. measure does not include a Federal in- tended to apply to effective rate There is an indirect tax increase on come tax rate increase. changes. H 4316 CONGRESSIONAL RECORD — HOUSE April 5, 1995 The SPEAKER pro tempore. Does the If I understand the potential ruling Mr. Speaker, if I understand the rul- gentleman from Virginia [Mr. MORAN] of the Chair, if the Chair rules that ing the Chair is about to make, you are wish to be heard further on his point of this bill does not raise a rate and saying for those who do not understand order? therefore does not need an extraor- arcane tax law, if we raise taxes on Mr. MORAN. Mr. Speaker, I would dinary vote, what the Chair is saying is people but we do it in a sneaky, kind of like to underscore the last comment that legislation which subjects a larger back-door way of doing it, that, Mr. that was made by the distinguished percentage of a taxpayer’s income to Speaker, if we do it in a legislatively, chairman of the Committee on Ways an existing tax rate would not be a tax carefully crafted way, we can get away and Means that the House rule in ques- rate increase under the provisions of with it. If we do it straight out and say tion is not intended to apply to effec- rule XXI. That would mean that we to small business, your taxes go from tive tax rate changes. There was never could effectively raise tax rates in this 14 percent to 19 percent just like that, any reference to effective rate changes. country by just subjecting a larger that would require a 60-percent vote. In fact, it was any income tax rate in- amount of a person’s income to the tax But if we can find some way crease. I read the debate again that oc- rate, thereby accomplishing the effect parliamentarily to swing around it, curred on the first day of this session. of a tax rate increase under the poten- whatever the effect on people is does We are now making a distinction be- tial ruling of the Chair without raising not make any difference. tween effective rate changes appar- the rate. Is that what the Chair is saying? ently and statutory rate changes, al- I just really want to point that out to The SPEAKER pro tempore. The gen- the Chair before he makes his ruling, though both apply here. I do have a let- tleman from Georgia [Mr. LINDER] is ter from the Treasury Department ex- because effectively if he rules against recognized on the point of order. the gentleman from Virginia [Mr. plaining that this is a tax rate in- Mr. LINDER. Mr. Speaker, this does MORAN] rule XXI is meaningless. crease. not seem all that complicated. It does How it occurred, Mr. Speaker, is in b 2245 not change any rates of taxation of the 1993 Omnibus Budget Reconcili- PARLIAMENTARY INQUIRY capital gains. It excludes 50 percent of ation Act we did pass a capital gains Mr. MFUME. Mr. Speaker, I have a the gain. Therefore, you are taxed at tax rate reduction. What it said is that parliamentary inquiry. the 39.6-percent tax rate. Fifty percent when people invest in small capitalized The SPEAKER pro tempore (Mr. of any gain would be excluded, giving firms for five years, their capital gains DREIER). The gentleman will state his an effective rate of 19.8 percent, a lower tax is reduced by 50 percent. What this inquiry. effective rate. bill did was to strike the capital gains Mr. MFUME. Mr. Speaker, we have a If you happen to be taxed at a 35-per- rate of 28 percent, raise it to 39.6 per- ruling from the joint committee, an ex- cent tax rate, 50 percent of the gain cent, and then apply the 50 percent planation. We have two explanations, would be excluded, giving you a 17.5- preference for capital gains invest- one from Treasury, one from Small percent tax. It lowers the effective rate ment. What that means is that the ef- Business, both of which are very de- in every instance by excluding half of fective capital gains rate is 19.8 percent tailed in terms of their justification of the gain from any taxation at all. if this bill were to pass, whereas today their position. The SPEAKER pro tempore. Does the there are investors getting a 14 percent This Member is at a loss with respect gentleman from Michigan [Mr. LEVIN] tax rate on capital gains investments. to the ruling of the Chair and questions wish to be heard on the point of order? Now, this is not an obscure provision. whether or not the Chair’s ruling, Mr. LEVIN. Yes, Mr. Speaker. It is a $725 million capital gains provi- pending ruling, is discretionary or is it I just want to say to the gentleman sion that was passed in the 1993 Budget based in fact. And if it is based in fact, from Georgia, the reason the gen- Reconciliation Act. What we have done could the Chair kindly advise the Mem- tleman from Virginia [Mr. MORAN] is is for some investors who have invested ber how the Chair reached that and to right is because you are simply wrong. hundreds of millions of dollars in small suggest also that it was not discre- The SPEAKER pro tempore. The capitalized firms, is increased their tax tionary? Chair is prepared to rule. rate from 14 percent to 19.8 percent. The SPEAKER pro tempore. The That is an increase in the income tax Chair is prepared to rule on this. PARLIAMENTARY INQUIRY rate. It is both a statutory increase, in Mr. SKAGGS. Mr. Speaker, I would Mr. OBEY. Parliamentary inquiry, that we remove the 28 percent level and like to be heard on the point of order. Mr. Speaker. put in 39.6 percent. It is also an effec- The SPEAKER pro tempore. The gen- The SPEAKER pro tempore. The gen- tive rate increase because it changes tleman is recognized. tleman will state his parliamentary in- from 14 percent to 19.8 percent. That is Mr. SKAGGS. Mr. Speaker, one fur- quiry. what the letter from both the Treasury ther point I think needs to be made on Mr. OBEY. Mr. Speaker, I really do Department and the Small Business this. not wish to draw this out. I would like Committee underscores, that in fact in- During the debate on opening day, it to go home as much as anybody else. vestors would be paying a higher cap- was touted that this rules change was But in light of the statement made ital gains rate. remedial in nature. It was to be viewed by the previous gentleman in the well Mr. THOMAS. Mr. Speaker, the gen- expansively as remedying a propensity in which he asserted in his advice to tleman did not mean to say the Small of the House that needed to be cur- the Chair that this was a simple ques- Business Committee. I believe he tailed. A narrow reading such as is ad- tion because tax rates were not being meant to say the Small Business Ad- vocated by the chairman of the Com- raised, we were simply expanding the ministration. mittee on Ways and Means a few min- percentage of income being taxed at Mr. MORAN. The Small Business Ad- utes ago flies in the face of all of the that rate, does that mean—— ministration. I thank the gentleman advocacy, the legislative history, if Mr. LINDER. If the gentleman will from California for clarifying that. you will, of this rules change, which is yield, I said precisely the opposite. I The SPEAKER pro tempore. Does the the only basis that the House has and said we are reducing the amount of in- gentleman from Maryland [Mr. CARDIN] that the Chair has for informing a rul- come that is going to be taxed or the wish to be recognized on the point of ing. percentage of income by excluding half order? To take a provision that was in- the gain. Mr. CARDIN. Mr. Speaker, I do. tended to be remedial, and therefore Mr. OBEY. Mr. Speaker, may I finish Mr. Speaker, this is a very important viewed expansively, and interpret it my parliamentary inquiry? ruling. It is the first one that the Chair narrowly belies the absurdity of the The SPEAKER pro tempore. The gen- has had to make on the new rule XXI rules change to begin with. tleman is recognized. that requires an extraordinary vote on The SPEAKER pro tempore. Does the Mr. OBEY. Does that rationale mean a tax rate increase. The language, as I gentleman from Washington [Mr. that when it was suggested that there understand it, is when the Federal tax MCDERMOTT] wish to be heard on the was a tax increase on Social Security rate increase applies we need a three- point of order? recipients last year simply because the fifths vote. Mr. MCDERMOTT. Yes, Mr. Speaker. percentage of income that was being April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4317 taxed was being broadened, does that Martini Quillen Solomon NOT VOTING—3 McCollum Quinn Spence Franks (NJ) Reynolds Souder mean that the Republican Party is now McCrery Radanovich Stearns changing their opinion that that was a McDade Ramstad Stockman tax increase? Are they not taking it McHugh Regula Stump b 2307 back? McInnis Riggs Talent McIntosh Roberts Tate So the motion to lay on the table the The SPEAKER pro tempore. The McKeon Rogers Taylor (NC) appeal of the ruling of the Chair was Chair is prepared to rule. Metcalf Rohrabacher Thomas agreed to. In deference to the specialized exper- Meyers Ros-Lehtinen Thornberry Mica Roth Tiahrt The result of the vote was announced tise that has been provided, the Chair Miller (FL) Roukema Torkildsen as above recorded. rules that this bill does not include a Molinari Royce Upton Federal income tax rate increase. Moorhead Salmon Vucanovich f Mr. MFUME. Mr. Speaker, is the rul- Morella Sanford Waldholtz Myers Saxton Walker PARLIAMENTARY INQUIRIES ing discretionary? Mr. Speaker, is it a Myrick Scarborough Walsh discretionary ruling? Nethercutt Schaefer Wamp Mr. HEFNER. Parliamentary in- Mr. MORAN. Mr. Speaker, I respect- Neumann Schiff Watts (OK) quiry, Mr. Speaker. Ney Seastrand Weldon (FL) fully appeal the ruling of the Chair. Norwood Sensenbrenner Weldon (PA) The SPEAKER pro tempore. The gen- MOTION TO TABLE OFFERED BY MR. ARCHER Nussle Shadegg Weller tleman from North Carolina will state Mr. ARCHER. Mr. Speaker, I offer a Oxley Shaw White his parliamentary inquiry. Packard Shays Whitfield motion. Paxon Shuster Wicker Mr. HEFNER. My parliamentary in- The SPEAKER pro tempore. The Petri Skeen Wolf quiry is I did not ever get the ruling of Clerk will report the motion. Pombo Smith (MI) Young (AK) the Parliamentarian, and my par- Porter Smith (NJ) Young (FL) liamentary inquiry is in the future if The Clerk read as follows: Portman Smith (TX) Zeliff Mr. ARCHER moves to lay the appeal on Pryce Smith (WA) Zimmer we have the ruling of the Chair ques- the table. tioned or challenged, is it going to be- NOES—204 The SPEAKER pro tempore. The come the practice for someone to move Abercrombie Gibbons Olver to table the motion and we will never question is on the motion offered by Ackerman Gonzalez Ortiz the gentleman from Texas [Mr. AR- Andrews Gordon Orton have a ruling on the ruling of the Chair CHER] to lay on the table the appeal of Baesler Green Owens as it applies to House rules? the ruling of the Chair. Baldacci Gutierrez Pallone The SPEAKER pro tempore (Mr. Barcia Hall (OH) Parker DREIER). The Chair will respond to the The question was taken; and the Barrett (WI) Hall (TX) Pastor Speaker pro tempore announced that Becerra Hamilton Payne (NJ) gentleman by saying first that it was the noes appeared to have it. Beilenson Harman Payne (VA) not the Parliamentarian’s ruling, and Bentsen Hastings (FL) Pelosi the Chair ruled and the House just ad- RECORDED VOTE Berman Hayes Peterson (FL) dressed the issue of that ruling. Mr. MFUME. Mr. Speaker, I demand Bevill Hefner Peterson (MN) Mr. HEFNER. Further parliamentary a recorded vote. Bishop Hilliard Pickett Bonior Hinchey Pomeroy inquiry, and I feel this is justifiable. A recorded vote was ordered. Borski Holden Poshard The SPEAKER pro tempore. The gen- The vote was taken by electronic de- Boucher Hoyer Rahall tleman from North Carolina is recog- vice, and there were—ayes 228, noes 204, Brewster Jackson-Lee Rangel Browder Jacobs Reed nized. not voting 3, as follows: Brown (CA) Jefferson Richardson Mr. HEFNER. If there is no mecha- [Roll No. 294] Brown (FL) Johnson (SD) Rivers Brown (OH) Johnson, E.B. Roemer nism, if there is going to be no mecha- AYES—228 Bryant (TX) Johnston Rose nism to challenge a ruling of the Chair, Allard Crane Hancock Cardin Kanjorski Roybal-Allard if it can be superceded by a motion to Archer Crapo Hansen Chapman Kaptur Rush table, then the majority is going to Armey Cremeans Hastert Clay Kennedy (MA) Sabo Bachus Cubin Hastings (WA) Clayton Kennedy (RI) Sanders rule, there will be no chance to chal- Baker (CA) Cunningham Hayworth Clement Kennelly Sawyer lenge the ruling of the Chair. Baker (LA) Davis Hefley Clyburn Kildee Schroeder Ballenger DeLay Heineman Coleman Kleczka Schumer b 2310 Barr Diaz-Balart Herger Collins (IL) Klink Scott Barrett (NE) Dickey Hilleary Collins (MI) LaFalce Serrano The SPEAKER pro tempore (Mr. Bartlett Doolittle Hobson Condit Lantos Sisisky DREIER). The Chair wishes to first re- Barton Dornan Hoekstra Conyers Laughlin Skaggs Bass Dreier Hoke Costello Levin Skelton spond to the parliamentary inquiry of Bateman Duncan Horn Coyne Lewis (GA) Slaughter the gentleman from North Carolina by Bereuter Dunn Hostettler Cramer Lincoln Spratt stating that the House has just ruled Bilbray Ehlers Houghton Danner Lipinski Stark Bilirakis Ehrlich Hunter de la Garza Lofgren Stenholm by a vote. Bliley Emerson Hutchinson Deal Lowey Stokes The gentleman from California is Blute English Hyde DeFazio Luther Studds recognized for a parliamentary inquiry. Boehlert Ensign Inglis DeLauro Maloney Stupak Mr. THOMAS. Mr. Chairman, under Boehner Everett Istook Dellums Manton Tanner Bonilla Ewing Johnson (CT) Deutsch Markey Tauzin the rules of the House, are there proce- Bono Fawell Johnson, Sam Dicks Martinez Taylor (MS) dural motions available to the body, Brownback Fields (TX) Jones Dingell Mascara Tejeda and if moved, voted on, and is the mo- Bryant (TN) Flanagan Kasich Dixon Matsui Thompson Bunn Foley Kelly Doggett McCarthy Thornton tion to table a procedural motion uti- Bunning Forbes Kim Dooley McDermott Thurman lized by the former majority over and Burr Fowler King Doyle McHale Torres over and over again? Burton Fox Kingston Durbin McKinney Torricelli (The letters referred to by Mr. MORAN Buyer Franks (CT) Klug Edwards McNulty Towns Callahan Frelinghuysen Knollenberg Engel Meehan Traficant follow:) Calvert Frisa Kolbe Eshoo Meek Tucker U.S. SMALL BUSINESS ADMINISTRATION, Camp Funderburk LaHood Evans Menendez Velazquez Washington, DC, April 3, 1995. Canady Gallegly Largent Farr Mfume Vento Hon. ZOE LOFGREN, Castle Ganske Latham Fattah Miller (CA) Visclosky Chabot Gekas LaTourette Fazio Mineta Volkmer House of Representatives, Chambliss Gilchrest Lazio Fields (LA) Minge Ward Washington, DC. Chenoweth Gillmor Leach Filner Mink Waters DEAR REPRESENTATIVE: Given my statu- Christensen Gilman Lewis (CA) Flake Moakley Watt (NC) tory responsibility (15 USC § 634b(4)) to deter- Chrysler Gingrich Lewis (KY) Foglietta Mollohan Waxman mine the impact of the taxes on small busi- Clinger Goodlatte Lightfoot Ford Montgomery Williams nesses and advise Congress, I have been Coble Goodling Linder Frank (MA) Moran Wilson asked to analyze the impact on small busi- Coburn Goss Livingston Frost Murtha Wise Collins (GA) Graham LoBiondo Furse Nadler Woolsey nesses of the ‘‘Contract With America Tax Combest Greenwood Longley Gejdenson Neal Wyden Reform Act of 1995’’ which is scheduled to Cooley Gunderson Lucas Gephardt Oberstar Wynn come before the House of Representatives Cox Gutknecht Manzullo Geren Obey Yates this week for consideration. H 4318 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Specifically, section 6301 of H.R. 1327, the rate on qualifying small business investors Bliley Goodlatte Ney Tax Fairness and Deficit Reduction Act of will make it more difficult for these small Boehlert Goodling Norwood 1995, creates a 50 percent capital gains exclu- businesses to compete in highly competitive Boehner Gordon Nussle sion for individuals but, in so doing, repeals Bonilla Goss Oxley capital markets. Since small, high growth Bono Graham Packard the special small business capital gains tax businesses generally develop the markets Brewster Greenwood Pallone incentive in the existing law (P.L. 103–66, and provide the jobs that help to secure our Browder Gunderson Parker § 13113). This will have the effect of raising commercial leadership in the future, the re- Brownback Gutknecht Paxon the taxes of future investors in qualifying, peal may have an adverse impact on our fu- Bryant (TN) Hall (TX) Petri high growth, small businesses from the pre- ture economic growth. Bunn Hancock Pombo vious maximum rate of 14 percent to the new I hope that this information is useful to Bunning Hansen Portman rate of 19.8 percent. This may be the only Burr Hastert Pryce you during the debate. I would be happy to Burton Hastings (WA) Quillen category of taxpayer to have its taxes raised provide any statistics or information that I Buyer Hayes Quinn under the capital gains provisions of the pro- have. Feel free to call me at 205–6533 or FAX Callahan Hayworth Radanovich posal. One change from the original bill at 205–6928. Calvert Hefley Ramstad added in H.R. 1327 that small businesses will Sincerely, Camp Heineman Regula appreciate is a provision which allows inves- JERE W. GLOVER, Canady Herger Riggs tors who have already purchased qualifying Chief Counsel for Advocacy. Castle Hilleary Roberts stock to keep the lower rate they expected Chabot Hobson Rohrabacher under previous law. Chambliss Hoekstra Ros-Lehtinen DEPARTMENT OF THE TREASURY, Chenoweth Hoke Rose Nevertheless, the repeal is troubling for Washington, DC, April 5, 1995. Christensen Horn Roth small businesses for two reasons. First, as a Hon. JAMES P. MORAN, Chrysler Hostettler Roukema matter of even-handed tax policy, it seems U.S. House of Representatives, Clement Hunter Royce incongruous to raise the tax rates of those Washington, DC. Clinger Hutchinson Salmon Coble Hyde Sanford who invest in the research, plant and equip- DEAR CONGRESSMAN MORAN: In response to ment of a high-risk, emerging growth com- Coburn Inglis Saxton your request regarding whether the capital Collins (GA) Istook Scarborough pany while rewarding non-productive specu- gains and indexing provisions of H.R. 9 would lation in real estate or the stock market Combest Johnson (CT) Schaefer increase the tax rate on gains from eligible Condit Johnson, Sam Seastrand with substantial tax reductions. This is par- small business stock, the Administration Cooley Jones Sensenbrenner ticularly true where a windfall of capital submitted written testimony to the Commit- Cox Kasich Shadegg gains treatment is provided to some inves- tee on Small Business on February 22, 1995 Cramer Kelly Shaw tors for gains on property held previous to which stated the following: Crane Kim Shays the introduction of the across-the-board pro- Crapo King Shuster ‘‘* * * by extending the 50 percent exclu- posal where such purchases were made with Cremeans Kingston Skeen sion to all capital assets, H.R. 9 will elimi- no expectation of a higher after-tax return. Cubin Knollenberg Skelton nate the current preference in Section 1202 Second, there is persuasive evidence that Cunningham Kolbe Smith (MI) for small business stock * * * and would ac- Danner Largent Smith (NJ) emerging, high-growth small businesses are tually increase the tax rate on certain gains Deal Latham Smith (TX) the best choice for investment incentives from investments in eligible small busi- DeLay LaTourette Smith (WA) when measured by return-per-dollar of tax nesses. The current maximum tax rate for Diaz-Balart Laughlin Solomon expenditure. Yet historical data suggest that Dickey Lazio Souder individuals on investment in small busi- the across-the-board capital gains proposal Doolittle Leach Spence nesses that qualify for the Section 1202 pref- will not significantly help these small busi- Dornan Lewis (CA) Stearns nesses seeking investment dollars and re- erence is 14 percent (maximum capital gain Dreier Lewis (KY) Stockman pealing the special tax preference will hurt. rate of 28 percent times 50 percent exclu- Duncan Lightfoot Stump sion).1 H.R. 9 would eliminate the 28 percent Dunn Lincoln Talent Our estimate is that only 10% of business Ehlers Linder Tanner finance resources currently go to small busi- maximum tax rate on capital gains of indi- viduals. As a result, H.R. 9 would impose a Ehrlich Lipinski Tate nesses and most of that is in the form of Emerson Livingston Tauzin bank loans and commercial mortgages—not maximum tax rate of 19.8 percent (39.6 per- English LoBiondo Taylor (NC) long term or ‘‘patient’’ capital that is needed cent maximum rate times 50 percent exclu- Ensign Longley Thomas to finance research and growth. sion) on investments that currently qualify Everett Lucas Thornberry The across-the-board 50% reduction which for the 14 percent preferential rate under Ewing Manton Tiahrt Section 1202. A 14 percent rate in a 28 percent Fawell Manzullo Torkildsen would replace the special small business cap- Fields (TX) Martini Torricelli ital gains incentive will do little to improve rate environment is relatively attractive to investors in small businesses, compared to a Flanagan McCollum Traficant the situation. Historical data, based on pre- Foley McCrery Upton vious across-the-board capital gains treat- flat rate on all gains.’’ Forbes McDade Vucanovich ment, indicate that about two-thirds of the The Administration remains committed to Fowler McHugh Waldholtz capital gains benefit will flow to appreciated this positions. Please do not hesitate to con- Fox McInnis Walker property, such as real estate, and only about tact me if you have any questions on this or Franks (CT) McIntosh Walsh one-third will go to corporate equity invest- any other matter. Franks (NJ) McKeon Wamp Sincerely, Frelinghuysen Metcalf Watts (OK) ment. Most of the corporate equity invest- Frisa Meyers Weldon (FL) LESLIE B. SAMUELS, ment, however, will reward gains generated Funderburk Mica Weldon (PA) by the transfer of existing shares of stock in Assistant Secretary (Tax Policy). Gallegly Miller (FL) Weller the market which do not result in any new The SPEAKER pro tempore. The Ganske Molinari White productive investment for businesses. Based question is on the passage of the bill. Gekas Montgomery Whitfield on this data and current levels of venture The question was taken; and the Geren Moorhead Wicker Gilchrest Myers Wilson funding, we estimate that less than one per Speaker pro tempore announced that cent of the across-the-board capital gains Gillmor Myrick Young (FL) the ayes appeared to have it. Gilman Nethercutt Zeliff benefits will flow to venture capital that Gingrich Neumann Zimmer would help small emerging companies. RECORDED VOTE Our research, and research we have re- Mr. ENGEL. Mr. Speaker, I demand a NOES—188 viewed, indicates that growing small busi- recorded vote. Abercrombie Clay Durbin nesses are greatly underfunded compared to A recorded vote was ordered. Ackerman Clayton Edwards their contribution to our economy. Small The vote was taken by electronic de- Baesler Clyburn Engel businesses in general provide 54% of all jobs Baldacci Coleman Eshoo and 50% of total output using only 40% of vice, and there were—ayes 246, noes 188, Barcia Collins (IL) Evans total business assets. The lion’s share of our not voting 1, as follows: Barrett (WI) Collins (MI) Farr economy’s job growth and innovation is gen- [Roll No. 295] Becerra Conyers Fattah erated by the type of efficient, high-growth, Beilenson Costello Fazio AYES—246 Bentsen Coyne Fields (LA) high-tech small business that can qualify for Allard Baker (LA) Bass Berman Davis Filner special capital gains treatment under cur- Andrews Ballenger Bateman Bishop de la Garza Flake rent law. The purposes of the incentive is to Archer Barr Bereuter Blute DeFazio Foglietta persuade ‘‘mainstream’’ investors to take Armey Barrett (NE) Bevill Bonior DeLauro Ford the added risk of investing in an emerging Bachus Bartlett Bilbray Borski Dellums Frank (MA) firm. Without such an incentive, the ability Baker (CA) Barton Bilirakis Boucher Deutsch Frost of these businesses to attract equity invest- Brown (CA) Dicks Furse Brown (FL) Dingell Gejdenson ment may be seriously impaired. 1 Because one-half of the excluded gain is treated Brown (OH) Dixon Gephardt We conclude that the repeal of the special as a preference for AMT purposes, the actual rate Bryant (TX) Doggett Gibbons small business capital gains incentive and could be higher for certain taxpayers subject to the Cardin Dooley Gonzalez the resultant increase of the effective tax AMT, but would never exceed 21 percent. Chapman Doyle Green April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4319 Gutierrez McKinney Sabo In lieu of the matter stricken and inserted gency requirement pursuant to section Hall (OH) McNulty Sanders by said amendment, insert: 251(b)(2)(D)(i) of the Balanced Budget and Hamilton Meehan Sawyer That the following sums are appropriated, out Emergency Deficit Control Act of 1985, as Harman Meek Schiff of any money in the Treasury not otherwise ap- Hastings (FL) Menendez Schroeder amended. Hefner Mfume Schumer propriated, to provide emergency supplemental NATIONAL GUARD PERSONNEL, AIR FORCE appropriations for the Department of Defense to Hilliard Miller (CA) Scott For an additional amount for ‘‘National Hinchey Mineta Serrano preserve and enhance military readiness for the Holden Minge Sisisky fiscal year ending September 30, 1995, and for Guard Personnel, Air Force,’’ $5,000,000: Pro- Houghton Mink Skaggs other purposes, namely: vided, That such amount is designated by Con- Hoyer Moakley Slaughter gress as an emergency requirement pursuant to Jackson-Lee Mollohan Spratt TITLE I section 251(b)(2)(D)(i) of the Balanced Budget Jacobs Moran Stark CHAPTER I and Emergency Deficit Control Act of 1985, as Jefferson Morella Stenholm EMERGENCY SUPPLEMENTAL amended. Johnson (SD) Murtha Stokes Johnson, E. B. Nadler Studds APPROPRIATIONS OPERATION AND MAINTENANCE Johnston Neal Stupak DEPARTMENT OF DEFENSE—MILITARY OPERATION AND MAINTENANCE, ARMY Kanjorski Oberstar Taylor (MS) MILITARY PERSONNEL Kaptur Obey Tejeda For an additional amount for ‘‘Operation and Kennedy (MA) Olver Thompson MILITARY PERSONNEL, ARMY Maintenance, Army,’’ $936,600,000: Provided, Kennedy (RI) Ortiz Thornton For an additional amount for ‘‘Military Per- That such amount is designated by Congress as Kennelly Orton Thurman sonnel, Army,’’ $260,700,000: Provided, That an emergency requirement pursuant to section Kildee Owens Torres such amount is designated by Congress as an 251(b)(2)(D)(i) of the Balanced Budget and Kleczka Pastor Towns Klink Payne (NJ) Tucker emergency requirement pursuant to section Emergency Deficit Control Act of 1985, as Klug Payne (VA) Velazquez 251(b)(2)(D)(i) of the Balanced Budget and amended. LaFalce Pelosi Vento Emergency Deficit Control Act of 1985, as OPERATION AND MAINTENANCE, NAVY LaHood Peterson (FL) Visclosky amended. Lantos Peterson (MN) Volkmer For an additional amount for ‘‘Operation and MILITARY PERSONNEL, NAVY Levin Pickett Ward Maintenance, Navy,’’ $423,700,000: Provided, Lewis (GA) Pomeroy Waters For an additional amount for ‘‘Military Per- That such amount is designated by Congress as Lofgren Porter Watt (NC) sonnel, Navy,’’ $183,100,000: Provided, That an emergency requirement pursuant to section Lowey Poshard Waxman such amount is designated by Congress as an 215(b)(2)(D)(i) of the Balanced Budget and Luther Rahall Williams emergency requirement pursuant to section Emergency Deficit Control Act of 1985, as Maloney Rangel Wise 251(b)(2)(D)(i) of the Balanced Budget and amended. Markey Reed Wolf Emergency Deficit Control Act of 1985, as Martinez Richardson Woolsey OPERATION AND MAINTENANCE, MARINE CORPS amended. Mascara Rivers Wyden For an additional amount for ‘‘Operation and Matsui Roemer Wynn MILITARY PERSONNEL, MARINE CORPS Maintenance, Marine Corps,’’ $33,500,000: Pro- McCarthy Rogers Yates For an additional amount for ‘‘Military Per- McDermott Roybal-Allard Young (AK) vided, That such amount is designated by Con- McHale Rush sonnel, Marine Corps,’’ $25,200,000: Provided, gress as an emergency requirement pursuant to That such amount is designated by Congress as section 251(b)(2)(D)(i) of the Balanced Budget NOT VOTING—1 an emergency requirement pursuant to section and Emergency Deficit Control Act of 1985, as Reynolds 251(b)(2)(D)(i) of the Balanced Budget and amended. Emergency Deficit Control Act of 1985, as b OPERATION AND MAINTENANCE, AIR FORCE 2326 amended. For an additional amount for ‘‘Operation and So the bill was passed. MILITARY PERSONNEL, AIR FORCE Maintenance, Air Force,’’ $852,500,000: Pro- The result of the vote was announced For an additional amount for ‘‘Military Per- as above recorded. vided, That such amount is designated by Con- sonnel, Air Force,’’ $207,100,000: Provided, That gress as an emergency requirement pursuant to A motion to reconsider was laid on such amount is designated by Congress as an section 251(b)(2)(D)(i) of the Balanced Budget the table. emergency requirement pursuant to section and Emergency Deficit Control Act of 1985, as f 251(b)(2)(D)(i) of the Balanced Budget and amended. Emergency Deficit Control Act of 1985, as CONFERENCE REPORT ON H.R. 889, amended. OPERATION AND MAINTENANCE, DEFENSE-WIDE EMERGENCY SUPPLEMENTAL RESERVE PERSONNEL, ARMY For an additional amount for ‘‘Operation and Maintenance, Defense-Wide,’’ $46,200,000: Pro- APPROPRIATIONS AND RESCIS- For an additional amount for ‘‘Reserve Per- vided, That such amount is designated by Con- SIONS FOR FISCAL YEAR 1995 sonnel, Army,’’ $6,500,000: That such amount is gress as an emergency requirement pursuant to designated by Congress as an emergency re- Mr. LIVINGSTON submitted the fol- section 251(b)(2)(D)(i) of the Balanced Budget quirement pursuant to section 251(b)(2)(D)(i) of and Emergency Deficit Control Act of 1985, as lowing conference report and state- the Balanced Budget and Emergency Deficit amended. ment on the bill (H.R. 889) making Control Act of 1985, as amended. emergency supplemental appropria- OPERATION AND MAINTENANCE, NAVY RESERVE RESERVE PERSONNEL, NAVY tions and rescissions to preserve and For an additional amount for ‘‘Reserve Per- For an additional amount for ‘‘Operation and enhance the military readiness of the sonnel, Navy,’’ $9,600,000: Provided, That such Maintenance, Navy Reserve,’’ $15,400,000: Pro- Department of Defense for the fiscal amount is designated by Congress as an emer- vided, That such amount is designated by Con- year ending September 30, 1995, and for gency requirement pursuant to section gress as an emergency requirement pursuant to other purposes: 251(b)(2)(D)(i) of the Balanced Budget and section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as CONFERENCE REPORT (H. REPT. 104–101) Emergency Deficit Control Act of 1985, as amended. amended. The committee of conference on the dis- PROCUREMENT agreeing votes of the two Houses on the RESERVE PERSONNEL, MARINE CORPS amendments of the Senate to the bill (H.R. For an additional amount for ‘‘Reserve Per- OTHER PROCUREMENT, ARMY 889) ‘‘making emergency supplemental ap- sonnel, Marine Corps,’’ $1,300,000: Provided, For an additional amount for ‘‘Other Procure- propriations and rescissions to preserve and That such amount is designated by Congress as ment, Army,’’ $8,300,000, to remain available enhance the military readiness of the De- an emergency requirement pursuant to section until September 30, 1997: Provided, That such partment of Defense for the fiscal year end- 251(b)(2)(D)(i) of the Balanced Budget and amount is designated by Congress as an emer- ing September 30, 1995, and for other pur- Emergency Deficit Control Act of 1985, as gency requirement pursuant to section poses,’’ having met, after full and free con- amended. 251(b)(2)(D)(i) of the Balanced Budget and ference, have agreed to recommend and do RESERVE PERSONNEL, AIR FORCE Emergency Deficit Control Act of 1985, as recommend to their respective Houses as fol- For an additional amount for ‘‘Reserve Per- amended. lows: sonnel, Air Force,’’ $2,800,000: Provided, That OTHER DEPARTMENT OF DEFENSE That the Senate recede from its amend- such amount is designated by Congress as an PROGRAMS ments numbered 4,6,7,8,10, 20, 22, and 25. emergency requirement pursuant to section That the House recede from its disagree- DEFENSE HEALTH PROGRAM 251(b)(2)(D)(i) of the Balanced Budget and ment to the amendments of the Senate num- For an additional amount for ‘‘Defense Emergency Deficit Control Act of 1985, as bered 16 and 23, and agree to the same. Health Program,’’ $13,200,000: Provided, That amended. Amendment numbered 1: such amount is designated by Congress as an That the House recede from its disagree- NATIONAL GUARD PERSONNEL, ARMY emergency requirement pursuant to section ment to the amendment of the Senate num- For an additional amount for ‘‘National 251(b)(2)(D)(i) of the Balanced Budget and bered 1, and agree to the same with an Guard Personnel, Army,’’ $11,000,000: That such Emergency Deficit Control Act of 1985, as amendment, as follows: amount is designated by Congress as an emer- amended. H 4320 CONGRESSIONAL RECORD — HOUSE April 5, 1995 CHAPTER II Of the funds made available under this head- used, without regard to the time limitations RESCINDING CERTAIN BUDGET ing in Public Law 103–335, $89,500,000 are re- specified in section 5523(a) of title 5, United AUTHORITY scinded. States Code, for payments under the provisions DEPARTMENT OF DEFENSE—MILITARY OTHER PROCUREMENT, AIR FORCE of section 5523 of title 5, United States Code, in the case of employees, or an employee’s depend- (RESCISSION) OPERATION AND MAINTENANCE ents or immediate family, evacuated from Guan- Of the funds made available under this head- OPERATION AND MAINTENANCE, NAVY tanamo Bay, Cuba, pursuant to the August 26, ing in Public Law 103–335, $6,100,000 are re- 1994 order of the Secretary of Defense. This sec- (RESCISSION) scinded. Of the funds made available under this head- tion shall take effect as of March 5, 1995, and ing in Public Law 103–335, $2,000,000 are re- PROCUREMENT, DEFENSE-WIDE shall apply with respect to any payment made scinded. (RESCISSION) on or after that date. OPERATION AND MAINTENANCE, AIR FORCE Of the funds made available under this head- (INCLUDING TRANSFER OF FUNDS) ing in Public Law 103–335, $32,000,000 are re- (RESCISSION) scinded. SEC. 104. In addition to amounts appropriated Of the funds made available under this head- or otherwise made available by this Act, ing in Public Law 103–335, $2,000,000 are re- NATIONAL GUARD AND RESERVE EQUIPMENT $28,297,000 is hereby appropriated to the Depart- scinded. (RESCISSION) ment of Defense and shall be available only for OPERATION AND MAINTENANCE, DEFENSE-WIDE Of the funds made available under this head- transfer to the United States Coast Guard to ing in Public Law 103–335, $30,000,000 are re- (RESCISSION) cover the incremental operating costs associated scinded. with Operations Able Manner, Able Vigil, Re- Of the funds made available under this head- store Democracy, and Support Democracy: Pro- ing in Public Law 103–335, $68,800,000 are re- DEFENSE PRODUCTION ACT PURCHASES vided, that such amount is designated by Con- scinded. (RESCISSION) gress as an emergency requirement pursuant to Of the funds made available under this head- OPERATION AND MAINTENANCE, ARMY NATIONAL section 251(b)(2)(D)(i) of the Balanced Budget ing in Public Law 103–139, $100,000,000 are re- GUARD and Emergency Deficit Control Act of 1985, as scinded. (RESCISSION) amended. RESEARCH, DEVELOPMENT, TEST AND Of the funds made available under this head- SEC. 105. (a) Section 8106A of the Department EVALUATION ing in Public Law 103–335, $15,400,000 are re- of Defense Appropriations Act, 1995 (Public Law scinded. RESEARCH, DEVELOPMENT, TEST AND 103–335), is amended by striking out the last pro- OPERATION AND MAINTENANCE, ARMY RESERVE EVALUATION, ARMY viso and inserting in lieu thereof the following: (RESCISSION) (RESCISSIONS) ‘‘: Provided further, That if, after September 30, Of the funds made available under this head- Of the funds made available under this head- 1994, a member of the Armed Forces (other than ing in Public Law 103–335, $6,200,000 are re- ing in Public Law 103–139, $5,000,000 are re- the Coast Guard) is approved for release from scinded. scinded. active duty or full-time National Guard duty Of the funds made available under this head- and that person subsequently becomes employed ENVIRONMENTAL RESTORATION, DEFENSE ing in Public Law 103–335, $43,000,000 are re- in a position of civilian employment in the De- (RESCISSION) scinded. partment of Defense within 180 days after the Of the funds made available under this head- RESEARCH, DEVELOPMENT, TEST AND release from active duty or full-time National ing in Public Law 103–335, $300,000,000 are re- EVALUATION, NAVY Guard duty, than that person is prohibited from scinded. receiving payments under a Special Separation (RESCISSION) FORMER SOVIET UNION THREAT REDUCTION Benefits program (under section 1174a of title 10, Of the funds made available under this head- United States Code) or a Voluntary Separation (RESCISSION) ing in Public Law 103–335, $68,800,000 are re- Incentive program (under section 1175 of title 10, Of the funds made available under this head- scinded. ing in Public Law 103–335, $20,000,000 are re- United States Code) by reason of the release RESEARCH, DEVELOPMENT, TEST AND scinded. from active duty or full-time National Guard EVALUATION, AIR FORCE duty, and the person shall reimburse the United PROCUREMENT (RESCISSIONS) States the total amount, if any, paid such per- AIRCRAFT PROCUREMENT, ARMY Of the funds made available under this head- son under the program before the employment (RESCISSION) ing in Public Law 103–139, $49,600,000 are re- begins’’. Of the funds made available under this head- scinded. (b) Appropriations available to the Depart- ing in Public Law 103–335, $34,411,000 are re- Of the funds made available under this head- ment of Defense for fiscal year 1995 may be obli- scinded. ing in Public Law 103–335, $191,200,000 are re- gated for making payments under sections 1174a PROCUREMENT OF AMMUNITION, ARMY scinded. and 1175 of title 10, United States Code. (RESCISSIONS) RESEARCH, DEVELOPMENT, TEST AND (c) The amendment made by subsection (a) Of the funds made available under this head- EVALUATION, DEFENSE-WIDE shall be effective as of September 30, 1994. ing in Public Law 102–396, $85,000,000 are re- (RESCISSIONS) SEC. 106. (a) Subsection 8054(g) of the Depart- scinded. Of the funds made available under this head- ment of Defense Appropriations Act, 1995 (Pub- Of the funds made available under this head- ing in Public Law 103–139, $77,000,000 are re- lic Law 103–335), is amended to read as follows: ing in Public Law 103–335, $55,900,000 are re- scinded. ‘‘Notwithstanding any other provision of law, of scinded. Of the funds made available under this head- the amounts available to the Department of De- OTHER PROCUREMENT, ARMY ing in Public Law 103–335, $436,445,000 are re- fense during fiscal year 1995, not more than scinded. (RESCISSION) $1,252,650,000 may be obligated for financing ac- Of the funds made available under this head- RELATED AGENCIES tivities of defense FFRDCs: Provided, That, in addition to any other reductions required by ing in Public Law 103–335, $32,100,000 are re- NATIONAL SECURITY EDUCATION TRUST FUND scinded. this section, the total amounts appropriated in (RESCISSION) titles II, III, and IV of this Act are hereby re- AIRCRAFT PROCUREMENT, AIR FORCE Of the funds made available under this head- duced by $250,000,000 to reflect the funding ceil- (RESCISSIONS AND TRANSFER) ing in Public Law 102–172, $75,000,000 are re- ing contained in this subsection and to reflect Of the funds made available under this head- scinded. further reductions in amounts available to the ing in Public Law 102–396, $100,000,000 are re- CHAPTER III Department of Defense to finance activities car- scinded. GENERAL PROVISIONS ried out by defense FFRDCs and other entities Of the funds made available under this head- providing consulting services, studies and anal- SEC. 101. No part of any appropriation con- ing in Public Law 103–335, $27,500,000 are re- yses, systems engineering and technical assist- tained in this Act shall remain available for ob- scinded. ance, and technical, engineering and manage- ligation beyond the current fiscal year unless Of the funds made available under this head- ment support.’’. expressly so provided herein. ing in Public Law 103–335, $23,500,000 are here- SEC. 102. Notwithstanding sections 607 and 630 (b) Subsection 8054(h) of the Department of by transferred and made available for obligation of the Foreign Assistance Act of 1961 (22 U.S.C. Defense Appropriations Act, 1995 (Public Law to Operation and Maintenance, Air Force. 2357, 2390) and sections 2608 and 2350j of title 10, 103–335), is amended to read as follows: ‘‘The MISSILE PROCUREMENT, AIR FORCE United States Code, all funds received by the total amounts appropriated to or for the use of (RESCISSIONS) United States as reimbursement for expenses for the Department of Defense in titles II, III, and Of the funds made available under this head- which funds are provided in this Act shall be IV of this Act are reduced by an additional ing in Public Law 102–396, $33,000,000 are re- deposited in the Treasury as miscellaneous re- $251,534,000 to reflect savings from the decreased scinded. ceipts. use of non-FFRDC consulting services by the Of the funds made available under this head- SEC. 103. During the current fiscal year, ap- Department of Defense.’’. ing in Public Law 103–139, $99,000,000 are re- propriations available to the Department of De- (c) Not later than 60 days after enactment of scinded. fense for the pay of civilian personnel may be this Act, the Under Secretary of Defense (Comp- April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4321 troller) shall report to the Committees on Appro- resentatives, the Senate Armed Services Commit- Department of the Air Force pursuant to the priations of the Senate and the House of Rep- tee, and the House National Security Committee. ‘‘Memorandum of Agreement between the Na- resentatives as to the total, separate amounts of And the Senate agree to the same. tional Aeronautics and Space Administration appropriations provided, by title and by appro- Amendment numbered 3: and the United States Air Force on Titan IV/ priations account, in titles II, III, and IV of the That the House recede from its disagree- Centaur Launch Support for the Cassini Mis- Department of Defense Appropriations Act, 1995 ment to the amendment of the Senate num- sion,’’ signed September 8, 1994, and September (Public Law 103–335), as amended. bered 3, and agree to the same with an 23, 1994, and Attachments A, B, and C to that SEC. 107. Within sixty days of the enactment amendment, as follows: Memorandum, shall be merged with appropria- of this Act, the President shall submit to Con- In lieu of ‘‘Sec. 112’’ named in said amend- tions available for research, development, test gress a report which shall include the following: ment, insert: Sec. 111; and the Senate agree and evaluation and procurement for fiscal years (a) A detailed description of the estimated cu- to the same. 1994 and 1995, and shall be available for the mulative incremental cost of all United States Amendment numbered 5: same time period as the appropriation with activities subsequent to September 30, 1993, in That the House recede from its disagree- which merged, and shall be available for obliga- and around Haiti, including but not limited to— ment to the amendment of the Senate num- tion only for those Titan IV vehicles and Titan (1) the cost of all deployments of United States bered 5, and agree to the same with an IV-related activities under contract as of the Armed Forces and Coast Guard personnel, amendment, as follows: date of enactment of this Act. training, exercises, mobilization, and prepara- In lieu of the matter inserted by said SEC. 116. Section 8025 of the Department of tion activities, including the preparation of po- amendment, insert: Defense Appropriations Act, 1995 (Public Law lice and military units of the other nations of DEPARTMENT OF DEFENSE—MILITARY 103–335), is amended by striking out the amount the multinational force involved in enforcement CONSTRUCTION ‘‘$203,736,000’’ and inserting in lieu thereof of sanctions, limits on migration, establishment ‘‘$170,036,000’’. and maintenance of migrant facilities at Guan- SEC. 112. None of the funds made available to the Department of Defense for any fiscal year SEC. 117. In addition to the rescissions made tanamo Bay and elsewhere, and all other activi- elsewhere in this Act, on September 15, 1995, ties relating to operations in and round Haiti; for military construction or family housing may be obligated to initiate construction projects $100,000,000 shall be rescinded from appropria- and tions under title III of the Department of De- (2) the costs of all other activities relating to upon enactment of this Act for any project on an installation that— fense Appropriations Act, 1993 (Public Law 102– United States policy toward Haiti, including hu- 396). manitarian and development assistance, recon- (1) was included in the closure and realign- ment recommendations submitted by the Sec- And the Senate agree to the same. struction, balance of payments and economic Amendment numbered 11: support, assistance provided to reduce or elimi- retary of Defense to the Base Closure and Re- alignment Commission on February 28, 1995, un- That the House recede from its disagree- nate all arrearages owed to International Fi- ment to the amendment of the Senate num- nancial Institutions, all rescheduling or forgive- less removed by the Base Closure and Realign- ment Commission, or bered 11, and agree to the same with an ness of United States bilateral and multilateral amendment, as follows: debt, aid and other financial assistance, all in- (2) is included in the closure and realignment recommendation as submitted to Congress in In lieu of the matter stricken and inserted kind contributions, and all other costs to the by said amendment, insert: United States Government. 1995 in accordance with the Defense Base Clo- (b) A detailed accounting of the source of sure and Realignment Act of 1990, as amended CHAPTER IV funds obligated or expended to meet the costs (P.L. 101–510): DEPARTMENT OF TRANSPORTATION AND described in paragraph (a), including— Provided, That the prohibition on obligation RELATED AGENCIES (1) in the case of funds expended from the De- of funds for projects located on an installation DEPARTMENT OF TRANSPORTATION partment of Defense budget, a breakdown by cited for realignment are only to be in effect if military service or defense agency, line item and the function or activity with which the project FEDERAL RAILROAD ADMINISTRATION program; and is associated will be transferred from the instal- GRANTS TO THE NATIONAL RAILROAD PASSENGER (2) in the case of funds expended from the lation as a result of the realignment: Provided CORPORATION budgets of departments and agencies other than further, That this provision will remain in effect For an additional amount to enable the Sec- the Department of Defense, by department or unless the Congress enacts a Joint Resolution of retary of Transportation to make a grant to the agency and program. Disapproval in accordance with the Defense National Railroad Passenger Corporation, SEC. 108. None of the funds appropriated to Base Closure and Realignment Act of 1990, as $21,500,000 is hereby appropriated which shall the Department of Defense for the Technology amended (P.L. 101–510). be available until expended for capital improve- Reinvestment Program under Public Law 130– (RESCISSIONS) ments associated with safety-related emergency 335 shall be obligated for any new projects for SEC. 113. Of the funds appropriated under repairs at the existing Pennsylvania Station in which a selection has not been made until the Public Law 103–307, the following funds are New York City: Provided, That none of the Under Secretary of Defense for Acquisition and hereby rescinded from the following accounts in funds herein appropriated shall be used for the Technology certifies to the Congress that mili- the specified amounts: redevelopment of the James A. Farley Post Of- tary officers and civilian employees of the mili- Military Construction, Army, $3,500,000; fice Building in New York city as a train station tary departments constitute a majority of the Military Construction, Navy, $3,500,000; and commercial center: Provided further, That membership on each review panel at every pro- Military Construction, Air Force, $3,500,000; the $21,500,000 shall be considered part of the posal evaluation step for the Technology Rein- North Atlantic Treaty Organization Infra- Federal cost share for the redevelopment of the vestment Program: Provided, That the Under structure, $33,000,000; James A. Farley Post Office Building, if author- Secretary of Defense for Acquisition and Tech- Base Realignment and Closure Account, Part ized. nology shall submit to the Congress a report de- III, $32,000,000. scribing each new Technology Reinvestment Of the funds appropriated under Public Law TITLE II Program project or award and the military 102–136, the following funds are hereby re- And the Senate agree to the same. needs which the project addresses. scinded from the following account in the speci- Amendment numbered 12: SEC. 109. None of the funds appropriated or fied amount: That the House recede from its disagree- otherwise made available by this Act may be ob- Military Construction, Naval Reserve, ment to the amendment of the Senate num- ligated or expended for assistance to or pro- $25,100,000. bered 12, and agree to the same with an grams in the Democratic People’s Republic of And the Senate agree to the same. amendment, as follows: Korea, or for implementation of the October 21, Amendment numbered 9: In lieu of the matter stricken and the mat- 1994, Agreed Framework between the United That the House recede from its disagree- ter inserted by said amendment, insert: States and the Democratic People’s Republic of ment to the amendment of the Senate num- DEPARTMENT OF JUSTICE Korea, unless specifically appropriated for that bered 9, and agree to the same with an purpose. amendment, as follows: IMMIGRATION AND NATURALIZATION SERVICE And the Senate agree to the same. In lieu of the matter inserted by said IMMIGRATION EMERGENCY FUND Amendment numbered 2: amendment, insert: (RESCISSION) That the House recede from its disagree- SEC. 114. The Secretary of Defense shall not ment to the amendment of the Senate num- allocate a rescission to any military installation Of the amounts made available under this bered 2, and agree to the same with an that the Secretary recommends for closure or re- heading in Public Law 103–317, $45,000,000 are amendment, as follows: alignment in 1995 under section 2903(c) of the rescinded. In lieu of the matter inserted by said Defense Base Closure and Realignment Act of DEPARTMENT OF COMMERCE amendment, insert: 1990 (subtitle A of title XXIX of Public Law 101– NATIONAL INSTITUTE OF STANDARDS AND SEC. 110. During the current fiscal year, none 510; 10 U.S.C. 2687 note) in an amount in excess TECHNOLOGY of the funds available to the Department of De- of the proportionate share for each installation INDUSTRIAL TECHNOLOGY SERVICES fense for emergency and extraordinary expenses for the current fiscal year of the funds rescinded may be obligated or expended in an amount of from ‘‘Environmental Restoration, Defense’’ by (RESCISSION) $1,000,000 or more for any single transaction this Act. Of the amounts made available under this without prior notification to the Committees on SEC. 115. Funds in the amount of $76,900,000 heading in public Law 103–317 for the Advanced Appropriations of the Senate and House of Rep- received during fiscal years 1994 and 1995 by the Technology Program, $90,000,000 are rescinded. H 4322 CONGRESSIONAL RECORD — HOUSE April 5, 1995

NATIONAL TELECOMMUNICATIONS AND bered 17, and agree to the same with an 31, 1997’’ and all that follows, and inserting in INFORMATION ADMINISTRATION amendment, as follows: lieu thereof. ‘‘September 30, 1997: Provided, INFORMATION INFRASTRUCTURE GRANTS In lieu of the matter stricken and inserted That not to exceed $35,000,000 shall be available by said amendment, insert: for obligation prior to October 1, 1996.’’. (RESCISSION) And the Senate agree to the same. Of the amounts made available under this SCHOOL IMPROVEMENT PROGRAMS Amendment numbered 24: heading in Public Law 103–317, $15,000,000 are (RESCISSION) That the House recede from its disagree- rescinded. Of the funds made available under this head- ment to the amendment of the Senate num- ing in Public Law 103–333 for new education in- RELATED AGENCIES bered 24, and agree to the same with an frastructure improvement grants, $65,000,000 are SMALL BUSINESS ADMINISTRATION amendment, as follows: rescinded. SALARIES AND EXPENSES In lieu of the matter proposed by said STUDENT FINANCIAL ASSISTANCE amendment insert: (RESCISSION) (RESCISSION) Of the funds made available under this head- TITLE IV—MEXICAN DEBT DISCLOSURE ing in Public Law 103–317 for tree-planting Of the funds made available under this head- ACT OF 1995 ing in Public Law 103–112, $35,000,000 made grants pursuant to section 24 of the Small Busi- SEC. 401. SHORT TITLE. ness Act, as amended, $15,000,000 are rescinded. available for title IV, part A, subpart 1 of the Higher Education Act are rescinded. This title may be cited as the ‘‘Mexican Debt LEGAL SERVICES CORPORATION And the Senate agree to the same. Disclosure Act of 1995’’. PAYMENT TO THE LEGAL SERVICES CORPORATION Amendment numbered 18: SEC. 402. FINDINGS. (RESCISSION) That the House recede from its disagree- The Congress finds that— Of the funds made available under this head- ment to the amendment of the Senate num- (1) Mexico is an important neighbor and trad- ing in Public Law 103–317 for payment to the bered 18, and agree to the same with an ing partner of the United States; Legal Services Corporation to carry out the pur- amendment, as follows: (2) on January 31, 1995, the President ap- poses of the Legal Services Corporation Act of In lieu of the matter proposed by said proved a program of assistance to Mexico, in the 1974, as amended, $15,000,000 are rescinded. amendment, insert: form of swap facilities and securities guarantees And the Senate agree to the same. FEDERAL AVIATION ADMINISTRATION in the amount of $20,000,000,000, using the ex- change stabilization fund; Amendment numbered 13: FACILITIES AND EQUIPMENT That the House recede from its disagree- (3) the program of assistance involves the par- ment to the amendment of the Senate num- (AIRPORT AND AIRWAY TRUST FUND) ticipation of the Board of Governors of the Fed- bered 13, and agree to the same with an (RESCISSION) eral Reserve System, the International Mone- amendment, as follows: Of the available balances under this heading tary Fund, the Bank for International Settle- Retain the matter inserted by said amend- that remain unobligated for the ‘‘advanced au- ments, the International Bank for Reconstruc- ment, amended as follows: tomation system’’, $35,000,000 are rescinded. tion and Development, the Inter-American De- Insert the following heading at the begin- FEDERAL HIGHWAY ADMINISTRATION velopment Bank, the Bank of Canada, and sev- eral Latin America countries; ning of said amendment: MISCELLANEOUS HIGHWAY DEMONSTRATION (4) the involvement of the exchange stabiliza- DEPARTMENT OF DEFENSE—CIVIL PROJECTS tion fund and the Board of Governors of the DEPARTMENT OF THE ARMY (HIGHWAY TRUST FUND) Federal Reserve System means that United CORPS OF ENGINEERS—CIVIL (RESCISSION) States taxpayer funds will be used in the assist- FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBU- Of the available appropriated balances pro- ance effort to Mexico; TARIES, ARKANSAS, ILLINOIS, KENTUCKY, LOU- vided in Public Law 93–87; Public Law 98–8; (5) assistance provided by the International ISIANA, MISSISSIPPI, MISSOURI, AND TENNESSEE Public Law 98–473; and Public Law 100–71, Monetary Fund, the International Bank for Re- And on line 17, page 17 of the House of Rep- $12,004,450 are rescinded. construction and Development, and the Inter- resentatives engrossed bill, H.R. 889, delete And the Senate agree to the same. American Development Bank may require addi- ‘‘$100,000,000’’ and insert in lieu thereof Amendment numbered 19: tional United States contributions of taxpayer $200,000,000; and the Senate agree to the That the House recede from its disagree- funds to those entities; same. ment to the amendment of the Senate num- (6) the immediate use of taxpayer funds and Amendment numbered 14: bered 19, and agree to the same with an the potential requirement for additional future That the House recede from its disagree- amendment, as follows: United States contributions of taxpayer funds ment to the amendment of the Senate num- Restore the matter stricken by said necessitates congressional oversight of the dis- bered 14, and agree to the same with an amendment, amended as follows: bursement of funds; and amendment, as follows: In lieu of the sum named in said amend- (7) the efficacy of the assistance to Mexico is In lieu of the sum named in said amend- ment insert: $6,563,000; and the Senate agree contingent on the pursuit of sound economic ment insert: $60,000,000; and the Senate agree to the same. policy by the Government of Mexico. to the same. Amendment numbered 21: SEC. 403. PRESIDENTIAL REPORTS. Amendment numbered 15: That the House recede from its disagree- (a) REPORTING REQUIREMENT.—Not later than That the House recede from its disagree- ment to the amendment of the Senate num- June 30, 1995, and every 6 months thereafter, the ment to the amendment of the Senate num- bered 21, and agree to the same with an President shall transmit to the appropriate con- bered 15, and agree to the same with an amendment, as follows: gressional committees a report concerning all amendment, as follows: Restore the matter stricken by said guarantees issued to, and short-term and long- In lieu of the matter stricken and inserted amendment to read as follows: term currency swaps with, the Government of by said amendment, insert: INDEPENDENT AGENCIES Mexico by the United States Government, in- DEVELOPMENT ASSISTANCE FUND ENVIRONMENTAL PROTECTION AGENCY cluding the Board of Governors of the Federal Reserve System. (RESCISSION) ADMINISTRATIVE PROVISION (b) CONTENTS OF REPORTS.—Each report de- Of the funds made available under this head- The Congress finds that the 1990 amendments scribed in subsection (a) shall contain a descrip- ing in Public Law 103–306 and prior appropria- to the Clean Air Act (Public Law 101–549) super- tion of the following actions taken, or economic tions Acts, $12,500,000 are rescinded. seded prior requirements of the Clean Air Act re- situations existing, during the preceding 6- garding the demonstration of attainment of na- ASSISTANCE FOR THE NEW INDEPENDENT STATES month period or, in the case of the initial report, tional ambient air quality standards for the OF THE FORMER SOVIET UNION during the period beginning on the date of en- South Coast, Ventura, and Sacramento areas of (RESCISSION) actment of this Act: California and thus eliminated the obligation of (1) Changes in wage, price, and credit controls Of the funds made available under this head- the Administrator of the Environmental Protec- in the Mexican economy. ing in Public Law 103–87 and Public Law 103– tion Agency to promulgate a Federal implemen- (2) Changes in taxation policy of the Govern- 306, $7,500,000 are rescinded. tation plan under section 110(e) of the Clean Air ment of Mexico. Of the funds made available under this head- Act for those areas. Upon the enactment of this (3) Specific actions taken by the Government ing in Public Law 103–87 for support of an offi- Act, any Federal implementation plan that has of Mexico to further privatize the economy of cer resettlement program in Russia as described been promulgated by the Administrator of the Mexico. in section 560(a)(5), $15,000,000 shall be allocated Environmental Protection Agency under the (4) Actions taken by the Government of Mex- to other economic assistance and for related pro- Clean Air Act for the South Coast, Ventura, or ico in the development of regulatory policy that grams for the New Independent States of the Sacramento areas of California pursuant to a significantly affected the performance of the Former Soviet Union notwithstanding the allo- court order or settlement shall be rescinded and Mexican economy. cations provided in section 560 of said Act: Pro- shall have no further force and effect. vided, That such funds shall not be available (5) Consultations concerning the program ap- for assistance to Russia. NATIONAL AERONAUTICS AND SPACE proved by the President, including advice on And the Senate agree to the same. ADMINISTRATION economic, monetary, and fiscal policy, held be- Amendment numbered 17: NATIONAL AERONAUTICAL FACILITIES tween the Government of Mexico and the Sec- That the House recede from its disagree- Public Law 103–327 is amended in the para- retary of the Treasury (including any designee ment to the amendment of the Senate num- graph under this heading by striking ‘‘March of the Secretary) and the conclusions resulting April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4323 from any periodic reviews undertaken by the SEC. 405. TERMINATION OF REPORTING RE- BILL YOUNG, International Monetary Fund pursuant to the QUIREMENTS. JOE MCDADE, Fund’s loan agreements with Mexico. The requirements of sections 403 and 404 shall BOB LIVINGSTON, (6) All outstanding loans, credits, and guar- terminate on the date that the Government of JERRY LEWIS, Mexico has paid all obligations with respect to antees provided to the Government of Mexico, JOE SKEEN, swap facilities and guarantees of securities by the United States Government, including the DAVE HOBSON, made available under the program approved by Board of Governors of the Federal Reserve Sys- HENRY BONILLA, the President on January 31, 1995. tem, set forth by category of financing. GEORGE R. NETHERCUTT, (7) The progress the Government of Mexico SEC. 406. PRESIDENTIAL CERTIFICATION RE- Jr., has made in stabilizing the peso and establish- GARDING SWAP OF CURRENCIES TO MARK NEUMANN, ing an independent central bank or currency MEXICO THROUGH EXCHANGE STA- BILIZATION FUND OR FEDERAL RE- JOHN P. MURTHA, board. SERVE. (c) SUMMARY OF TREASURY DEPARTMENT RE- NORMAN DICKS, (a) IN GENERAL.—Notwithstanding any other CHARLES WILSON, PORTS.—In addition to the information required provision of law, no loan, credit, guarantee, or to be included under subsection (b), each report W.G. BILL HEFNER, arrangement for a swap of currencies to Mexico Except Ament. No. 1 re: ELF: required under this section shall contain a sum- through the exchange stabilization fund or by mary of the information contained in all reports MARTIN OLAV SABO, the Board of Governors of the Federal Reserve Managers on the Part of the House. submitted under section 404 during the period System may be extended or (if already extended) covered by the report required under this sec- further utilized, unless and until the President MARK O. HATFIELD, tion. submits to the appropriate congressional com- TED STEVENS, SEC. 404. REPORTS BY THE SECRETARY OF THE mittees a certification that— THAD COCHRAN, TREASURY. (1) there is no projected cost (as defined in the ARLEN SPECTER, (a) REPORTING REQUIREMENT.—Beginning on Credit Reform Act of 1990) to the United States PETER V. DOMENICI, the last day of the first month which begins from the proposed loan, credit, guarantee, or PHIL GRAMM, after the date of enactment of this Act, and on currency swap; KIT BOND, the last day of every month thereafter, the Sec- (2) all loans, credits, guarantees, and cur- SLADE GORTON, retary of the Treasury shall submit to the ap- rency swaps are adequately backed to ensure MITCH MCCONNELL, propriate congressional committees a report con- that all United States funds are repaid; cerning all guarantees issued to, and short-term (3) the Government of Mexico is making CONRAD BURNS, and long-term currency swaps with, the Govern- progress in ensuring an independent central ROBERT BYRD, ment of Mexico by the United States Govern- bank or an independent currency control mech- DANIEL K. INOUYE, ment, including the Board of Governors of the anism; ERNEST F. HOLLINGS, Federal Reserve System. (4) Mexico has in effect a significant economic J. BENNETT JOHNSTON, (b) CONTENTS OF REPORTS.—Each report de- reform effort; and PATRICK J. LEAHY, scribed in subsection (a) shall include a descrip- (5) the President has provided the documents FRANK R. LAUTENBERG, tion of the following actions taken, or economic described in paragraphs (1) through (28) of BARBARA A. MIKULSKI, situations existing, during the month in which House Resolution 80, adopted March 1, 1995. HARRY REID, the report is required to be submitted: (b) TREATMENT OF CLASSIFIED OR PRIVILEGED Managers on the Part of the Senate. (1) The current condition of the Mexican MATERIAL.—For purposes of the certification re- economy. quired by subsection (a)(5), the President shall JOINT EXPLANATORY STATEMENT (2) The reserve positions of the central bank of specify, in the case of any document that is OF THE COMMITTEE OF CON- Mexico and data relating to the functioning of classified or subject to applicable privileges, Mexico monetary policy. that, while such document may not have been FERENCE (3) The amount of any funds disbursed from produced to the House of Representatives, in The managers on the part of the House and the exchange stabilization fund pursuant to the lieu thereof it has been produced to specified the Senate at the conference on the disagree- program of assistance to the Government of Members of Congress or their designees by natu- ing votes of the two Houses on the amend- Mexico approved by the President on January ral agreement among the President, the Speaker ments of the Senate to the bill (H.R. 889) 31, 1995. of the House, and the chairmen and ranking making emergency supplemental appropria- (4) The amount of any funds disbursed by the members of the Committee on Banking and Fi- tions and rescissions to preserve and enhance Board of Governors of the Federal Reserve Sys- nancial Services, the Committee on Inter- the military readiness of the Department of tem pursuant to the program of assistance re- national Relations, and the Permanent Select Defense for the fiscal year ending September ferred to in paragraph (3). Committee on Intelligence of the House. (5) Financial tranactions, both inside and 30, 1995, and for other purposes, submit the SEC. 407. DEFINITIONS. following joint statement to the House and outside of Mexico, made during the reporting For purposes of this title, the following defini- the Senate in explanation of the effects of period involving funds disbursed to Mexico from tions shall apply: the action agreed upon by the managers and the exchange stabilization fund or proceeds of (1) APPROPRIATE CONGRESSIONAL COMMIT- Mexican Government securities guaranteed by TEE.—The term ‘‘appropriate congressional com- recommended in the accompanying con- the exchange stabilization fund. mittees’’ means the Committees on International ference report. (6) All oustanding guarantees issued to, and Relations and Banking and Financial Services Report language included by the House in short-term and medium-term currency swaps of the House of Representatives, the Committees the report accompanying H.R. 889 (H. Rept. with, the Government of Mexico by the Sec- on Foreign Relations and Banking, Housing 104–29) and the report accompanying H.R. 845 retary of the Treasury, set forth by category of and Urban Affairs of the Senate, and the Com- (H. Rept. 104–30) which is not changed by the financing. mittees on Appropriations of the House of Rep- report of the Senate (S. Rept. 104–12), and (7) All outstanding currency swaps with the resentatives and the Senate. Senate report language which is not changed central bank of Mexico by the Board of Gov- (2) EXCHANGE STABILIZATION FUND.—The term by the conference are approved by the com- ernors of the Federal Reserve System and the ‘‘exchange stabilization fund’’ means the sta- mittee of conference. The statement of the rationale for, and any expected costs of, such bilization fund referred to in section 5302(a)(1) managers while repeating some report lan- transactions. of title 31, United States Code. guage for emphasis, is not intended to negate (8) The amount of payments made by cus- That the Senate recede from its amend- the language referred to above unless ex- tomers of Mexican petroleum companies that ment to the title of the bill. pressly provided herein. have been deposited in the account at the Fed- For consideration of Senate amendments Amendment No. 1: Inserts an enacting eral Reserve Bank of New York established to clause, inserts language making emergency ensure repayment of any payment by the United numbered 3, 5, 6, 7, and 10 thru 25, and the supplemental appropriations for the Depart- States Government, including the Board of Gov- Senate amendment to the title of the bill: ment of Defense, inserts language rescinding ernors of the Federal Reserve System, in connec- BOB LIVINGSTON, certain budget authority from the Depart- tion with any guarantee issued to, or any swap JOHN MYERS, ment of Defense and inserts general provi- with, the Government of Mexico. BILL YOUNG, (9) Any setoff by the Federal Reserve Bank of RALPH REGULA, sions relating to the Department of Defense. New York against funds in the account de- JERRY LEWIS, The Senate amendment deleted the enacting scribed in paragraph (8). JOHN EDWARD PORTER, clause and all the House language providing (10) To the extent such information is avail- HAROLD ROGERS, emergency supplemental appropriations and able, once there has been a setoff by the Federal FRANK R. WOLF, directing certain rescissions relating to the Reserve Bank of New York, any interruption in BARBARA F. VUCANOVICH, Department of Defense and inserted new lan- deliveries of petroleum products to existing cus- SONNY CALLAHAN, guage providing supplemental appropriations tomers whose payments were setoff. CHARLES WILSON, and providing additional rescissions and lan- (11) The interest rates and fees charged to ALAN MOLLOHAN, guage provisions relating to the Department. compensate the Secretary of the Treasury for For consideration of Senate amendments The details of the conference agreement fol- the risk of providing financing. numbered 1, 2, 4, 8, and 9: low: H 4324 CONGRESSIONAL RECORD — HOUSE April 5, 1995 TITLE I this amount from burdensharing contribu- In addition to providing funds to cover CHAPTER I tions. contingency operations costs, the conference EMERGENCY SUPPLEMENTAL After the House and Senate acted on the agreement also includes funds to pay for APPROPRIATIONS fiscal year 1995 Supplemental budget request, other readiness enhancements in the Mili- DEPARTMENT OF DEFENSE—MILITARY the Department of Defense identified several tary Personnel and Operation and Mainte- The conference agreement includes a total significant revisions to the cost of contin- nance accounts. Funds are added to com- of $3,069,997,000 for unfunded military per- gency operations. These revisions, outlined pletely pay for the fiscal year 1995 military sonal, operation and maintenance, and pro- in the table below, include a reduction to Op- pay raise, and cover increased overseas sta- curement costs associated with contingency eration VIGILANT WARRIOR that con- tion allowance costs accruing from the re- operations and other readiness requirements cluded on December 22, 1994, and increases cent decline in the value of the dollar. Funds instead of $3,208,400,000 as proposed by the for support of Cuban refugees, as well as fly- also are included to finance shortfalls in House and $1,963,697,000 as proposed by the ing hour costs associated with several of Navy flying hour costs. Senate. The conferees also have agreed to a these operations. The conferees agree to in- A summary of the conference agreement is general provision proposed by the House corporate these revisions in the total appro- as follows: which will provide $360,000,000 in offsets to priations provided to the Department. SUMMARY OF CONFERENCE AGREEMENT

Defense-Wide Defense Marine Army Navy Marine Air Force Health Army Re- Navy Re- Corps Re- Air Force Army Air Guard Total Corps DIA SOCOM Program serve serve serve Reserve Guard

Military personnel: Budget request ...... 69.3 49.5 10.4 71.7 4.6 205.5 Adjustments to request: Vigilant Warrior ...... 2.8 1.5 ¥3.5 0.8 Cuba refugee support ...... 3.6 3.6 Other readiness enhancements: Military pay raise ...... 75.5 68.2 3.0 70.4 6.5 5.0 1.3 2.8 11.0 5.0 248.7 Overseas station allowance ...... 109.5 63.9 11.8 68.5 253.7 Subtotal, military personnel ...... 260.7 183.1 25.2 207.1 6.5 9.6 1.3 2.8 11.0 5.0 712.3 Operation and maintenance: Budget request ...... 958.6 347.6 38.0 888.7 3.6 39.6 14.0 6.4 2,296.5 Adjustments to request: Vigilant Warrior ...... ¥29.8 ¥0.9 ¥4.5 ¥36.2 ¥0.8 ¥72.2 Cuba refugee support ...... 7.8 38.6 46.4 Contingency flying hours ...... 19.7 3.0 22.7 Cuba real property ...... ¥22.3 ¥22.3 Other readiness enhancements: Navy flying hours ...... 41.0 9.0 50.0 Subtotal, operation and maintenance ...... 936.6 423.7 33.5 852.5 3.6 42.6 13.2 15.4 2,321.1

Procurement: Other procurement ...... 8.3 8.3 Total ...... 1,205.6 606.8 58.7 1,059.6 3.6 42.6 13.2 6.5 25.0 1.3 2.8 11.0 5.0 3,041.7

Burdensharing (Sec. 102) ...... ¥360.0 Grand total ...... 2,681.7

CONTINGENCY AND NON-TRADITIONAL MISSIONS Department of Defense, even though other ment of Defense. The conference agreement The conferees express their deep concern Federal entities have long had primary re- on items in conference is as follows: over the process by which U.S. military sponsibility for dealing with refugee and im- Rescissions Recommended in the Bill forces are being deployed on major, large migration issues and have, in the past, reim- bursed the Department of Defense for such scale contingency operations. The conferees [In thousands of dollars] note that the Administration neither sought support in accordance with the Economy Conference nor received advance approval of or funding Act. At present, DoD is being forced to bear for military operations from the Congress in $1 million per day in costs for these oper- Item Agreement support of peacekeeping and humanitarian ations, out of funds intended to be used for Operation and mainte- missions. The missions involving Somalia, military operations, training, and readiness. nance, Navy: Classified Rwanda, Haiti, and refugee relief in the Car- The conferees believe DoD should not be programs ...... (2,000) forced to bear the cost of operations whch ibbean all mark significant departures from Operation and mainte- previous emergency deployments of Amer- are not its responsibility, especially when it results in a substantial diversion of funds nance, Air Force: Classi- ican forces dealing with valid threats to the fied programs ...... (2,000) national security. The conferees strongly be- provided by the Congress expressly for mili- lieve that military deployments in support tary activities. Operation and mainte- of peacekeeping or humanitarian objectives These problems underline the need for the nance, Defense-Wide: ...... both merit and require advance approval by Executive Branch to seek congressional ap- Other conversion initia- the Congress. proval for unanticipated nontraditional mili- tives ...... (18,800) The issue is of special concern to the con- tary operations in advance. The conferees in- ferees because of the effect these operations tend to address these issues in connection DFAS pricing rebate ...... (50,000) have had on the defense budgeting and plan- with the fiscal year 1996 appropriations proc- Operation and mainte- ning process. There is no question but that ess, in order to avoid the recurrence of situa- nance, Army National the recent spate of ‘‘contingency’’ deploy- tions such as those which created the need Guard: Reserve compo- ments, none of which was approved in ad- for the appropriations contained in this nent automation system (15,400) vance by Congress nor budgeted for, have measure. The conferees strongly urge the Operation and mainte- wreaked havoc upon the ability of the De- Administration to provide detailed and time- nance, Army Reserve: partment of Defense to maintain military ly proposals to assist in resolving these is- Reserve component auto- readiness. These operations have led to sub- sues. mation system ...... (6,200) stantial and repeated diversions of funds in- OTHER PROCUREMENT, ARMY tended for training, equipment and property The budget request included $28,600,000 for Environmental restora- maintenance. From the Secretary of Defense a wide variety of equipment in the ‘‘Other tion, Defense ...... (300,000) to commanders in the field, there is univer- Procurement, Army’’ account. The conferees Former Soviet Union sal acknowledgment that this practice has recommend a total of $8,300,000 for the high- threat reduction ...... (20,000) led to degradations in readiness. est priority programs within the request. A related issue involves the rapid increase Aircraft procurement, CHAPTER II in Defense Department participation in ac- Army, 1995/1997: AH–64 tivities which under both law and tradition RESCINDING CERTAIN BUDGET Apache ...... (34,411) are the responsibility of other Federal de- AUTHORITY partments. The principal example of this DEPARTMENT OF DEFENSE—MILITARY trend is the use of DoD funds, personnel, and The conferees agree to rescind $2,009,956,000 facilities to deal with the issue of Cuban and from fiscal year 1993, 1994, and 1995 appro- Haitian refugees. The cost of these oper- priations and make other reductions of ations has been almost entirely borne by the $250,000,000 in funds available to the Depart- April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4325 Procurement of ammuni- Research, Development, production in fiscal year 1995. The conferees tion, Army, 1993/1995 ar- test, and evaluation, De- understand that closing the existing produc- mament and retooling fense-wide, 1995/1996: ...... tion line would greatly increase costs for manufacturing support Technology reinvestment this needed ammunition. initiative ...... (85,000) program/Defense rein- Procurement of ammuni- vestment (ARPA) ...... (223,000) APACHE HELICOPTER tion, Army, 1995/1997: Other conversion initia- The conferees agree to rescind $34,411,000 Provision of industrial tives/Defense reinvest- for Apache-A production. Of the available facilities ...... (5,550) ment (OSD) ...... (16,600) funds, $5,611,000 is only for Apache engineer- Layaway of industrial fa- NATO research and de- ing support and $37,589,000 is only for long cilities ...... (46,000) velopment ...... (5,000) lead procurement for the Longbow Apache Conventional ammo de- Program reductions, program. militarization ...... (4,350) science and technology (103,000) Other procurement, Army, Experimental evaluation NATIONAL SECURITY EDUCATION TRUST FUND 1995/1997: of major innovative The conferees agree to rescind $75,000,000 of Reserve component auto- technology: mation system ...... (12,100) the amount appropriated for the National Program reduction ...... (20,000) Security Education Trust Fund in Public SINCGARS contract sav- Tactical support sat- Law 102–172. The intent of the conferees is to ings ...... (20,000) ellite ...... (53,845) reduce the corpus of the Fund by 50 percent. Aircraft procurement, Air Manufacturing tech- Force, 1993/1995: C–17 air- nology (ARPA) ...... (15,000) CLASSIFIED PROGRAMS craft ...... (100,000) National education trust Aircraft procurement, Air The Senate proposed classified rescissions fund (non-add) ...... (¥75,000) Force, 1995/1997: SR–71 .... (27,500) Subtotal rescissions ...... (2,009,956) totalling $60,100,000. The House proposed no Missile procurement, Air Sec. 106—Federally funded such rescission. The conferees agree to a re- Force, 1993/1995: Ad- research and develop- duction of $60,100,000 as discussion in the vanced cruise missile ..... (33,000) ment centers—Consult- Classified Report which accompanies this Missile procurement, Air Statement of the Managers. Force, 1994/1996: ing services ...... (150,000) Sec. 117—Expiring fiscal Triservice standoff at- FORMER SOVIET UNION THREAT REDUCTION year 1993 balances—Title tack missile ...... (86,200) The House rescinded a total of $80,000,000 Minuteman II/III missile (12,800) III ...... (100,000) originally appropriated for housing, conver- Missile procurement, Air Total fiscal year 1993/ Force, 1995/1997: 1994/1995 rescissions ..... (2,259,956) sion projects, and the Defense Enterprise Fund. The Senate proposed no such reduc- AMRAAM missile con- RESERVE COMPONENT AUTOMATION SYSTEM tion. The conferees agree to a reduction of tract savings ...... (39,500) The Senate proposed to rescind $46,900,000 Classified programs ...... (50,000) $20,000,000. Other procurement, Air in the Other Procurement, Army appropria- Force, 1995/1997: Classi- tion for the Reserve Component Automation C–17 fied programs ...... (6,100) System. In February 1995 the Army con- The conferees agree to rescind $100,000,000 Procurement, Defense- ducted a special review of the program which in fiscal year 1993 Air Force aircraft procure- wide, 1995/1997: Defense resulted in a proposal to significantly change ment funds from the C–17 program for engi- Airborne Reconnaissance the system’s architecture and caused a tem- neering change orders. The recommendation Program, UAV (Hunter) . (32,000) porary delay. The Army informed the con- is made without prejudice as the Air Force National Guard and Re- ferees that given these events, $33,700,000 is has informed the conferees that the funds no longer needed to execute the program serve equipment, 1995/ could not be obligated before they expired at during fiscal year 1995. The conferees agree 1997: Miscellaneous the end of the fiscal year. The conferees have to rescind $12,100,000 in Other Procurement, equipment ...... (30,000) also been informed by the Air Force that the Army; $15,400,000 in Operation and Mainte- Defense Production Act: C–17 program office intends to use fiscal year nance, Army National Guard; and $6,200,000 Defense Production Act 1994 and fiscal year 1995 funds to implement purchases ...... (100,000) in Operation and Maintenance, Army Re- the low cost engine nacelle modification Research, development, serve. This action should not be construed as test, and evaluation, either agreement or disagreement with the when the requirements are fully defined. Army, 1994/1995: Army’s proposed restructure of the program. SR–71 Triservice standoff at- The conferees have amended section 8025 of Of the $100,000,000 appropriated for the SR– tack missile ...... (5,000) the Department of Defense Appropriations 71 activation in fiscal year 1995, the con- Research, development, Act for fiscal year 1995 to reflect this reduc- test, and evaluation, tion. ferees agree to rescind $27,500,000, and trans- fer $23,500,000 from Aircraft Procurement, Army, 1995/1996: Program SUNCGARS reductions, science and Air Force (APAF) 95/97 to Operation and The conferees recommend a rescission of technology ...... (43,000) Maintenance, Air Force (OMAF) 95 as fol- Research, development, $20,000,000 for the SINCGARS radio in the lows: test, and evaluation, ‘‘Other Procurement, Army’’ account. These [In thousands of dollars] Navy, 1995/1996: ...... funds are available as a result of savings be- Triservice standoff at- cause of a lower than projected per unit cost Fiscal Year tack missile ...... (29,800) in a recent contract award. 1995 ap- Rescission Transfer Net propriation Program reductions, ARMAMENT RETOOLING AND MANUFACTURING science and technology (39,000) SUPPORT INITIATIVE APAF ...... $65,000 $¥27,500 $¥23,500 $14,000 Research, development, The conferees agree to rescind $85,000,000 OMAF ...... 35,000 0 +23,500 58,500 test, and evaluation, Air for the Armament Retooling and Manufac- Total ...... 100,000 ¥27,500 0 72,500 Force, 1994/1995: turing Support Initiative. The budget sub- Triservice standoff at- mission requested that the expiring fiscal tack missile ...... (49,600) year 1993 funds be made available to fix a GUARD AND RESERVE MISCELLANEOUS Research, development, funding shortfall for tank ammunition in fis- EQUIPMENT test, and evaluation, Air cal year 1996. The conferees do not believe The conferees agree to a rescission of Force, 1995/1996: ...... $30,000,000 for Guard and Reserve miscellane- Triservice standoff at- that fiscal year 1996 shortfalls should be ous equipment as proposed by the House. The tack missile ...... (111,200) funded with excess funds from previous fiscal Program reductions, years. Although the conferees support the conferees agree that the $30,000,000 rescission science and technology (40,000) multi-year tank ammunition contract, the is to be allocated proportionally to the Tactical support satellite (15,000) budget proposal does not comply with stand- amount appropriated to each of the Reserve Hypersonic Flight Tech- ard acquisition and budget procedures. The Components for procurement of miscellane- nology Program ...... (25,000) conferees’ decision to rescind the funds does ous equipment in fiscal year 1995. Research, development, not prejudge any decision regarding pro- test, and evaluation, De- grams that have funding shortfalls in fiscal HYPERSONIC FLIGHT TECHNOLOGY fense-wide, 1994/1995: year 1996. The conferees would consider a The conferees recommend a rescission of Technology reinvestment reprogramming request to continue the man- $25,000,000 from the $45,000,000 appropriated program/dual use part- ufacture of the 120mm armor piercing tank in the Hypersonic Flight Technology pro- nership ...... (77,000) ammunition if it is necessary to maintain gram funded in the Air Force fiscal year 1995 H 4326 CONGRESSIONAL RECORD — HOUSE April 5, 1995 Research, Development, Test and Evaluation expenses associated with contingency oper- With regard to the recommended rescis- appropriation. The conferees endorse the Air ations. sions, the conferees agree to rescind Force’s new budget plan which requires FEDERALLY FUNDED RESEARCH AND DEVELOP- $75,500,000 from five appropriation accounts $10,000,000 to close out the Hypersonics Sys- MENT CENTERS AND RELATED ACTIVITIES as contained in Public Law 103–307, the Mili- tems Technology (HySTP) program and The conferees have modified the Senate tary Construction Appropriations Act for $10,000,000 to initiate a new technology pro- proposal to revise Section 8054(g) of the De- Fiscal Year 1995. The appropriation accounts gram focused on warfighter needs. partment of Defense Appropriations Act, and recommended rescission amounts for TACTICAL SUPPORT SATELLITE 1995, to further reduce funding for defense each account are listed below: The Senate proposed rescissions totaling federally funded research and development Military Construction, $68,845,000 and termination of the Tactical centers (FFRDC’s) and other entities provid- Army ...... $3,500,000 Support Satellite. The House proposed no ing similar services. The conferees have modified the Senate Military Construction, such action. The conferees agree with the Navy ...... 3,500,000 Senate recommendation. language to allocate the reductions in the re- vised Section 8054(g) among the operation Military Construction, Air RDT&E GENERAL REDUCTIONS and maintenance, procurement, and re- Force ...... 3,500,000 The conferees direct that general reduc- search, development, test and evaluation ap- North Atlantic Treaty Or- tions to Science and Technology, Experi- propriations titles of the underlying Act. ganization Infrastructure 33,000,000 mental Evaluation of Major Innovative The conferees also have added a subsection Base Realignment and Clo- Technologies, and Manufacturing Tech- which modifies Section 8054(h) of the under- sure Account, Part III .... 32,000,000 nology (ARPA) programs be applied in a lying Act to allocate the reduction in that manner such that no disproportionate reduc- subsection among the three titles. tion be made to any individual project with- The conferees direct that none of the Total ...... 75,500,000 in these program elements. FFRDC’s or the funds allocated to the con- In addition, the conferees agree to rescind DEFENSE FINANCE AND ACCOUNTING SERVICE sultants and for-profit activities be required $25,100,000 from funds appropriated for Mili- to absorb a disproportionate share of the de- The conferees agree to rescind $50,000,000 tary Construction, Naval Reserve in Public creases recommended in Subsections 8054(g) from the Operation and Maintenance, De- Law 102–136, the Military Construction Ap- and (h) of the Act, as amended. fense-wide account, and direct the Defense propriations Act for Fiscal Year 1992. The conferees further approved a reporting Finance and Accounting Service (DFAS) to The conference agreement includes a gen- requirement to provide the Committees on rebate prices charged to Defense Agencies eral reduction of $3,500,000 for each of the Appropriations with the most current infor- and the Office of the Secretary of Defense for Service accounts for military construction. mation about the allocation of these reduc- accounting services provided in fiscal year These amounts are to be applied to the com- tions. 1995 in order to reduce expected operating bination of project savings from favorable Amendment No. 2: Inserts and amends Sen- gains by a like amount. bids, reduced overhead costs, and other cost ate language which limits the use of funds reduction initiatives. BALLISTIC MISSILE DEFENSE that can be used for emergency and extraor- With regard to the North Atlantic Treaty The conferees have restored funds for the dinary expenses unless prior notification is Organization Infrastructure account, the National Test Facility to avoid any negative submitted to the Committees on Appropria- recommended rescission amount reflects sav- impact on critical theater missile defense tions of the House and Senate, the House Na- ings associated with deobligations due to tional Security Committee and the Senate (TMD) programs during the remainder of fis- canceled projects, low bids, and reduction of Armed Services Committee. cal year 1995. However, the conferees note project scope, as well as NATO reimburse- Amendment No. 3: Inserts a new section the importance and capabilities of the Bal- ment for projects previously funded with number and retains a provision proposed by listic Missile Defense Organization’s (BMDO) U.S. appropriated funds that are now NATO the Senate. This provision prohibits the ex- Advanced Research Center (ARC) eligible. penditure of funds under this or any other supercomputing facility. With regard to the Base Realignment and Act to enter into an agreement between the The United States Army Space and Strate- Closure Account, Part III, the recommended United States and Russia under section 123 gic Defense Command (USASSDC) ARC in rescission amount is based on estimated sav- of the Atomic Energy Act of 1954, until the Alabama has proven to be a cost-effective so- ings as a result of the Secretary of Defense lution in the development, integration and President certifies to Congress that Russia has satisfied certain conditions regarding an recommendations to the Base Closure Com- testing of the Army’s missile defense pro- mission for 1995 closures and realignments, grams. The ARC, in the opinion of the con- agreement not to sell nuclear reactor compo- nents to Iran. The House bill contained no which reflect changes to the 1993 closure and ferees, has demonstrated that these cost ef- realignment decisions. fective procedures in accomplishing the test provision on this matter. Amendment No. 4: Deletes Senate language With regard to the rescission of funds ap- and integration function for the Army’s mis- propriated for Military construction, Naval sile defense programs can also be applied to which expressed the sense of the Senate that a member of the Armed Forces sentenced by Reserve for fiscal year 1992, the rec- accomplish the integration and testing of ommended rescission amount is based on the BMDO systems. a court martial to confinement and a puni- tive discharge or dismissal should not re- cancellation of a project to provide C-130 The mature simulation environment of the support facilities, which is no longer re- ARC has existing, state-of-the-art compo- ceive pay and allowances. Amendment No. 5: Deletes language pro- quired. nent test beds within the facility which are Amendment No. 6: Deletes a provision supporting space and theater missile defense posed by the Senate, and not addressed in the House bill, which contained conditional added by the Senate expressing the sense of programs. Test beds included in the ARC are the Senate relating to South Korea’s non- the Extended Air Defense Test Bed (EADTB), fiscal year 1995 rescissions for certain mili- tary construction projects relating to 1995 tariff barriers to United States beef and Ground Based Radar Test Facility (GBRTF), Base Closures and Realignments, and inserts pork. The House bill contained no provision Missile Defense Data Center (MDDC), Inte- new language which prohibits the obligation on this matter. grated System Test Capability (ISTC), TMD of funds for any new military construction Amendment No. 7: Deletes a provision System Exerciser (TMD–SE), and others or family housing project at an installation added by the Senate expressing the sense of which support space and missile defense proposed for closure or realignment, and also the Senate relating to the indefinite exten- tests and integration. The ARC has secure inserts new language rescinding a total of sion of the Non-Proliferation Treaty. The communication links to the other modern $100,600,000. House bill contained no provision on this DoD test facilities through defense and com- Projects related to realignments are de- matter. mercial networks that are required to con- fined as projects which are affected by the Amendment No. 8: Deletes Senate language duct system simulations and evaluations of function or activity being realigned. The which expressed the sense of the Senate con- BMDO systems. prohibition on obligation of funds is in effect cerning the importance of the National Test The conferees will work to ensure that the unless the Congress enacts a Joint Resolu- Facility. funds required in fiscal year 1996 are avail- tion of Disapproval in accordance with the Amendment No. 9: Inserts and amends Sen- able to make necessary upgrades and facili- Defense Base Closure and Realignment Act ate language which provides that the rescis- tate the integration and testing of BMDO of 1990, as amended (P.L. 101–510). sion from the Environmental Restoration, component systems. The conferees note that while they support Defense account shall not be allocated in ex- CHAPTER III the intent of the Senate amendment, in an- cess of a proportionate share to installations GENERAL PROVISIONS ticipation of savings due to the 1995 Base that are recommended for closure or realign- Closure and Realignments, general reduc- ment in 1995. DEPARTMENT OF DEFENSE—MILITARY tions totaling $136.7 million were enacted in Inserts a new provision which makes nec- COAST GUARD the Military Construction Appropriations essary technical adjustments in order to The conferees have included a general pro- Act, 1995. The conferees are committed to re- make available to the Air Force up to vision which appropriates $28,297,000 to the scinding any additional savings at the appro- $76,900,000 in funds received from NASA as Department of Defense for transfer to the priate time during consideration of the fiscal reimbursement for TITAN IV-related costs Coast Guard to cover incremental operating year 1996 budget request. in support of the NASA Cassini mission. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4327

Insert a new provision which amends the DEPARTMENT OF JUSTICE year 1995 and unobligated balances carried Department of Defense Appropriations Act, IMMIGRATION AND NATURALIZATION SERVICE forward into fiscal year 1995. To the extent 1995 to reduce the funds available for the Re- IMMIGRATION EMERGENCY FUND possible, these reductions should be taken serve Component Automation System. against low priority, noncritical work and Inserts a new provision which rescinds Rescinds $45,000,000 from the Immigration not direct cleanup activities, or activities $100,000,000 from unobligated procurement Emergency Fund, instead of $70,000,000 as which do not support the safe and cost-effec- balances that expire at the end of fiscal year proposed by the House and $10,000,000 as pro- tive operation and management of Depart- 1995. posed by the Senate. ment of Energy waste management facili- DEPARTMENT OF COMMERCE FOREIGN OPERATIONS, EXPORT FINANC- ties. ING, AND RELATED PROGRAMS BILAT- NATIONAL INSTITUTE OF STANDARDS AND This recommendation includes the ERAL ECONOMIC ASSISTANCE TECHNOLOGY $100,000,000 which was originally proposed in INDUSTRIAL TECHNOLOGY SERVICES H.R. 889 by both the House and the Senate, FUNDS APPROPRIATED TO THE PRESIDENT Rescinds $90,000,000 from the Advanced and $100,000,000 of the $113,000,000 rescission DEBT RESTRUCTURING Technology Program at the National Insti- for defense environmental restoration and DEBT RELIEF FOR JORDAN tute of Standards and Technology, instead of waste management which has been proposed Amendment No. 10: Deletes language pro- $107,000,000 as proposed by the House and by the Senate during consideration of H.R. posed by the Senate that would have pro- $32,000,000 as proposed by the Senate. 1158. vided $275,000,000 for debt relief for Jordan, of NATIONAL OCEANIC AND ATMOSPHERIC DEPARTMENT OF DEFENSE—CIVIL which not more than $50,000,000 could be obli- ADMINISTRATION DEPARTMENT OF THE ARMY gated prior to October 1, 1995. OPERATIONS, RESEARCH AND FACILITIES The conferees agree not to include supple- CORPS OF ENGINEERS—CIVIL mental funding for restructuring Jordanian Deletes a rescission of $2,500,000 from the Operations, Research and Facilities account FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBU- debt to the U.S. government, but it is the TARIES, ARKANSAS, ILLINOIS, KENTUCKY, LOU- full intention to propose an appropriation of of the National Oceanic and Atmospheric Ad- ministration proposed by the Senate. The ISIANA, MISSISSIPPI, MISSOURI, AND TEN- $275,000,000 for this purpose in H.R. 1158 NESSEE under consideration in the Senate at the House bill contained no provision on this matter. Amendment No. 13: The conference agree- time of the conference. The conferees con- ment includes language proposed by the Sen- firm that they support fully the President’s NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION ate authorizing the U.S. Army Corps of Engi- commitment to King Hussein to restructure neers to initiate and complete remedial Jordan’s debt in support of the October 1994 INFORMATION INFRASTRUCTURE GRANTS measures to prevent slope instability at peace agreement between Jordan and Israel. Rescinds $15,000,000 from National Tele- Hickman Bluff, Kentucky, utilizing $3,000,000 Should appropriation of these funds fail to be communications and Information Adminis- appropriated in the Fiscal Year 1995 Energy enacted as part of H.R. 1158, the conferees tration Information Infrastructure Grants, and Water Development Appropriations Act recommend that funding for this purpose be instead of $34,000,000 as proposed by the Sen- for that purpose. The Senate language has included in the regular fiscal year 1996 For- ate. The House bill contained no provision on been amended to include appropriate head- eign Operations, Export Financing, and Re- this matter. ings. lated Programs Appropriations Act. ECONOMIC DEVELOPMENT ADMINISTRATION CHAPTER III PALESTINIAN-ISRAELI COOPERATION PROJECT ECONOMIC DEVELOPMENT ASSISTANCE FOREIGN OPERATIONS, EXPORT In reports by both the House and Senate PROGRAMS FINANCING, AND RELATED PROGRAMS Appropriations Committees which accom- Deletes a rescission of $40,000,000 from Eco- panied the FY 1994 and FY 1995 Foreign Oper- nomic Development Administration Eco- MULTILATERAL ECONOMIC ASSISTANCE ations bills, strong support was expressed for nomic Development Assistance Programs as FUNDS APPROPRIATED TO THE PRESIDENT funding of the educational, cultural, and hu- proposed by the Senate. The House bill con- INTERNATIONAL FINANCIAL INSTITUTIONS manitarian activities financed through the tained no provision on this matter. Palestinian-Israeli Cooperation Project. The RELATED AGENCIES CONTRIBUTION TO THE INTERNATIONAL Agency for International Development con- DEVELOPMENT ASSOCIATION SMALL BUSINESS ADMINISTRATION tinues to ignore this expression of support. Amendment No. 14: Rescinds $60,000,000 SALARIES AND EXPENSES Once again the conferees urge that AID from the U.S. contribution to the Inter- commit funds to this project. Rescinds $15,000,000 for tree-planting national Development Association instead of CHAPTER IV grants from Small Business Administration $70,000,000 as proposed by the Senate. The Salaries and Expenses, as proposed by the DEPARTMENT OF TRANSPORTATION House did not address this matter. Senate. The House bill contained no provi- AND RELATED AGENCIES sion on this matter. BILATERAL ECONOMIC ASSISTANCE DEPARTMENT OF TRANSPORTATION LEGAL SERVICES CORPORATION FUNDS APPROPRIATED TO THE PRESIDENT FEDERAL RAILROAD ADMINISTRATION PAYMENT TO THE LEGAL SERVICES AGENCY FOR INTERNATIONAL DEVELOPMENT GRANTS TO THE NATIONAL RAILROAD CORPORATION Amendment No. 15: Rescinds $7,500,000 from PASSENGER CORPORATION Rescinds $15,000,000 from the Legal Serv- funds made available in fiscal year 1994 and Amendment No. 11: Appropriates $21,500,000 ices Corporation, as proposed by the Senate. fiscal year 1995 for assistance to the New for capital grants to the National Railroad The House bill contained no provision on Independent States of the Former Soviet Passenger Corporation (Amtrak) and con- this matter. Union. In addition, the conference agreement forms heading. The House and Senate bills The conferees agree that, to the maximum reallocates $15,000,000 from the funds pro- contained no similar appropriation. The extent possible, these funds should be taken vided for Russian officer housing in Public agreement also inserts a title designation, as from programs that do not provide direct Law 103–87 for aid to the New Independent proposed by the Senate. legal services to individuals. States with the exception of Russia. The The conferees agree to provide $21,500,000 DEPARTMENT OF STATE AND RELATED House had proposed a rescission of for capital grants to the National Railroad AGENCIES $110,000,000 from funds provided for Russian Passenger Corporation (Amtrak) to address DEPARTMENT OF STATE officer housing. The Senate amendment emergency safety-related needs at the exist- struck the House language and proposed cer- ADMINISTRATION OF FOREIGN AFFAIRS ing Pennsylvania Station in New York City. tain rescissions described below. These funds are to be available immediately ACQUISITION AND MAINTENANCE OF BUILDINGS The conference agreement also rescinds for obligation. This issue is further addressed ABROAD $12,500,000 from ‘‘Development assistance under amendment number 20. Deletes a rescission of $28,500,000 from the fund’’ from appropriations provided in Public TITLE II State Department Foreign Buildings account Law 103–306 and prior appropriations acts. as proposed by the Senate. The House bill The Senate had proposed a rescission of CHAPTER I contained no provision on this matter. $13,000,000 from this account, as well as DEPARTMENTS OF COMMERCE, JUSTICE, AND CHAPTER II $9,000,000 from fiscal year 1994 and 1995 appro- STATE, THE JUDICIARY, AND RELATED AGEN- ENERGY AND WATER DEVELOPMENT priations for ‘‘Assistance for Eastern Europe CIES and the Baltic States’’, and $18,000,000 from DEPARTMENT OF ENERGY Amendment No. 12: Rescinds $180,000,000 fiscal year 1994 and 1995 appropriations for from five accounts, instead of $177,000,000 ATOMIC ENERGY DEFENSE ACTIVITIES ‘‘Assistance for the New Independent States from two accounts as proposed by the House, DEFENSE ENVIRONMENTAL RESTORATION AND of the Former Soviet Union’’ of which not and the same amount from eight accounts as WASTE MANAGEMENT less than $12,000,000 would have come from proposed by the Senate, distributed as fol- The conferees recommend a rescission of funds allocated for Russia. The House bill did lows: $200,000,000 from funds appropriated for fiscal not contain provisions on these matters. H 4328 CONGRESSIONAL RECORD — HOUSE April 5, 1995

CHAPTER IV PENNSYLVANIA STATION REDEVELOPMENT is to report to the Appropriations Commit- DEPARTMENT OF THE INTERIOR AND PROJECT tees of the House and Senate what that level RELATED AGENCIES Amendment No. 20: Rescinds $40,000,000 for of contribution should be. DEPARTMENT OF THE INTERIOR the Pennsylvania Station redevelopment DEPARTMENT OF HOUSING AND URBAN project as proposed by the House. The Senate DEVELOPMENT UNITED STATES FISH AND WILDLIFE SERVICE bill contained no similar provision. RESOURCE MANAGEMENT The conferees agree that this action is ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING Amendment No. 16: Includes a rescission of taken without prejudice to the advancement Amendment No. 22: Deletes language pro- $1,500,000 as proposed by the Senate of fund- of the project to redevelop the James A. Far- posed by the Senate to rescind $400,000,000 of ing available to the Fish and Wildlife Service ley Post Office Building as a train station 1995 and prior years funds earmarked for the for activities involving the listing of endan- and commercial center in New York City. development or acquisition costs of public gered species and the designation of critical The project is unauthorized; however, the housing. habitat. The provision also prohibits the House and Senate Committees on Appropria- Title III—Miscellaneous Fish and Wildlife Service from using other tions will consider any subsequent requests Amendment No. 23: Includes language au- funds to make final listings or critical habi- for funds once authorized. The conference thorizing the Secretary of Transportation to tat designations. The House bill contained agreement includes $21,500,000 for capital issue a certificate of documentation to the no similar provision. grants to the National Railroad Passenger vessel, L.R. BEATTIE, as proposed by the The conferees note that this provision has Corporation (Amtrak) under amendment Senate. The House bill contained no similar been adopted only to provide a brief ‘‘time number 11 to address emergency safety-relat- provision. out’’ from the Endangered Species Act list- ed needs at the existing Pennsylvania Sta- ings and critical habitat designations. The tion in New York City. Title IV managers will review the issue without prej- CHAPTER VII MEXICAN DEBT DISCLOSURE ACT OF 1995 udice. The Endangered Species Act expired DEPARTMENT OF VETERANS AFFAIRS AND Amendment No. 24: Inserts new language, in 1992, and its reauthorization is long over- HOUSING AND URBAN DEVELOPMENT, AND similar to the Senate amendment, entitled due. The conferees fully expect the appro- INDEPENDENT AGENCIES ‘‘Mexican Debt Disclosure Act of 1995’’. The priate committees to continue their efforts INDEPENDENT AGENCIES conference agreement differs from the Sen- to develop and pass a reauthorization bill. Amendment No. 21: Adds language under ate amendment in several respects: CHAPTER V the Environmental Protection Agency, Ad- 1. The agreement modifies section 403 to DEPARTMENT OF EDUCATION ministrative Provision, regarding Federal require the President to transmit a report to SCHOOL IMPROVEMENT PROGRAMS and State Implementation Plans under sec- the appropriate committees of the Congress, not later than June 30, 1995, and every six STUDENT FINANCIAL ASSISTANCE tion 110(e) of the Clean Air Act. Provides for no rescission of funding for National Aero- months thereafter, regarding all guarantees Amendment No. 17: The conference agree- nautical Facilities as proposed by the Senate issued to, and short-term and long-term cur- ment rescinds $65,000,000 from the Education instead of $400,000,000 as proposed by the rency swaps with, the Government of Mex- Infrastructure program as requested by the House, and adds language extending the ico. Such reports are required to include de- President. The House recommended a availability of funds previously appropriated tails on changes in wage, price, and credit $100,000,000 rescission; the Senate included no for this purpose. control in the Mexican economy; on changes rescission for this program. EPA ADMINISTRATIVE PROVISION in taxation policy of Mexico; on specific ac- The agreement also rescinds $35,000,000 tions taken by Mexico to privatize the econ- from unobligated funds appropriated in FY The conferees have included bill language omy; on actions taken by Mexico to develop 1994 for the Pell Grant program. The Senate which clarifies that any Federal implemen- a regulatory policy that significantly affects bill included a rescission of $100,000,000 for tation plan promulgated for three areas of the performance of the Mexican economy; on this purpose; the House bill included no re- California pursuant to section 110(e) of the consultations between the United States and scission from this account. Clean Air Act shall have no further force and Mexico concerning the program approved by CHAPTER VI effect, thus removing the cloud which exists the President and conclusions resulting from as a result of having a promulgated but non- periodic reviews undertaken by the Inter- DEPARTMENT OF TRANSPORTATION enforced Federal implementation plan in ef- AND RELATED AGENCIES national Monetary Fund; on all outstanding fect at the same time a State implementa- loans, credits, and guarantees provided to DEPARTMENT OF TRANSPORTATION tion plan is undergoing the approval process the Government of Mexico by United States FEDERAL AVIATION ADMINISTRATION by the Environmental Protection Agency. agencies; and on the progress made by Mex- FACILITIES AND EQUIPMENT NATIONAL WIND TUNNEL COMPLEX ico in stabilizing the peso and establishing (AIRPORT AND AIRWAY TRUST FUND) The conferees agree to no rescission of an independent central bank or currency funds provided in the fiscal year 1995 appro- board. FEDERAL HIGHWAY ADMINISTRATION priations Act for the Departments of Veter- 2. The agreement includes a new section MISCELLANEOUS HIGHWAY DEMONSTRATION ans Affairs and Housing and Urban Develop- 404 that requires monthly reports from the PROJECTS ment, and Independent Agencies (P.L. 103– Secretary of the Treasury concerning all (HIGHWAY TRUST FUND) 327) for the National Wind Tunnel Complex. guarantees issued to, and short-term and Amendment No. 18: Rescinds $35,000,000 Language is included which extends the long-term currency swaps with, the Govern- from facilities and equipment of the Federal availability of $400,000,000 to September 30, ment of Mexico. Such reports are required to Aviation Administration, and rescinds 1997. However, no more than $35,000,000 may include details on the current condition of $12,004,450 of appropriated balances available be obligated prior to October 1, 1996. the Mexican economy; the reserve portions for miscellaneous highway demonstration The conferees agree that NASA may use of the central bank of Mexico and data relat- projects provided in Public Laws 93–87, 98–8, $35,000,000 to achieve completion of the ing to Mexican monetary policy; the amount 98–473, and 100–71 as proposed by the Senate. Phase I study of wind tunnel needs and re- of funds disbursed from the exchange sta- The House bill contained no such provisions, quirements. It is the understanding of the bilization fund pursuant to the assistance but included a similar provision rescinding conferees that a portion of the study will pledged by the President to Mexico; the $35,000,000 from facilities and equipment of identify site selection criteria and a short amount of any funds disbursed by the Board the Federal Aviation Administration in H.R. list of locations which would meet the re- of Governors of the Federal Reserve System; 1158. The conference agreement rescinds quirements. guarantees issued to, and currency swaps en- $35,000,000 of funds provided for the advanced The conferees are concerned with the state gaged with, Mexico by either the Depart- automation system of the Federal Aviation of the nation’s wind tunnel infrastructure ment of Treasury or the Federal Reserve Administration. and encouraged that industry and NASA are System; and the interest rates and fees The conference agreement also deletes the jointly interested in finding a solution to the charged to compensate the Secretary of Senate rescissions of $139,948,000 of unobli- lack of adequate facilities. All the same, the Treasury for the risk of providing financing. gated contract authority from highway dem- conferees realize that the solution must in- 3. The agreement includes a new section onstration projects that received funding in clude significant industry financial partici- 405 that terminates the reporting require- Public Laws 97–424 and 100–17. The House bill pation. Therefore, any decision by the Con- ments of section 403 and 404 on the date the contained no similar proposals. gress to move beyond the Phase I study is Mexican Government has paid all obligations contingent upon NASA executing a Memo- incurred in connection with the program of FEDERAL RAILROAD ADMINISTRATION randum of Agreement with both the Depart- assistance approved by the President on Jan- LOCAL RAIL FREIGHT ASSISTANCE ment of Defense and the U.S. aviation indus- uary 31, 1995. Amendment No. 19: Rescinds $6,563,000 for try, both commercial and military, regard- 4. The agreement includes a new section the local rail freight assistance program, in- ing cost shares for construction and utiliza- 406 that requires a certification by the Presi- stead of $13,126,000 as proposed by the House. tion of the complex. The conferees agree that dent to the appropriate committees of the The Senate bill contained no similar provi- industry’s share of the total cost should be Congress prior to the extension or further sion. both substantial and appropriate, and NASA utilization of any loan, credit, guarantee, or April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4329 currency swap through the exchange sta- Jr., Committee on Agriculture; Commit- bilization fund or the Federal Reserve Sys- MARK NEUMANN, tee on Banking and Financial Services; tem, beyond those already in effect, that JOHN P. MURTHA, Committee on Government Reform and there is no projected cost (as defined in the NORMAN DICKS, Oversight; Committee on International Credit Reform Act of 1990) to the United CHARLES WILSON, States from the action; that such loans, W.G. BILL HEFNER, Relations; Committee on the Judici- credits, guarantees or currency swaps are Except Ament. No. 1 re: ELF: ary; Committee on National Security; adequately backed to ensure repayment; MARTIN OLAV SABO, Committee on Small Business; Com- that the Mexican government is making Managers on the Part of House. mittee on Transportation and Infra- progress in developing an independent bank MARK O. HATFIELD, structure; and Committee on Veterans’ or an independent currency control mecha- TED STEVENS, Affairs. nism; that Mexico has in effect a significant THAD COCHRAN, economic reform effort; and that the Presi- It is my understanding that the mi- ARLEN SPECTER, nority has been consulted and that dent has provided the documents described PETE V. DOMENICI, there is no objection to these requests. in paragraphs (1) through (28) of House Reso- PHIL GRAMM, lution 80 as adopted on March 1, 1995. For the KIT BOND, The SPEAKER pro tempore (Mr. purposes of the final certification, any clas- SLADE GORTON, RIGGS). Is there objection to the re- sified documents that may not have been MITCH MCCONNELL, quest of the gentlewoman from Wash- produced to the House of Representatives CONRAD BURNS, ington? would be produced to certain specified Mem- ROBERT BYRD, Mr. WISE. Mr. Speaker, reserving the bers of Congress. DANIEL K. INOUYE, right to object, I do so to thank the 5. The agreement modifies the definition of ERNEST F. HOLLINGS, ‘‘appropriate congressional committees’’ to J. BENNETT JOHNSTON, majority. This has been cleared with include the Committees on Appropriations of PATRICK J. LEAHY, all the minority ranking members. the House and Senate, and includes a defini- FRANK R. LAUTENBERG, Mr. Speaker, I withdraw my reserva- tion for the term ‘‘exchange stabilization BARBARA A. MIKULSKI, tion of objection. fund’’ as stated in section 5302(a)(1) of title HARRY REID, The SPEAKER pro tempore. Is there 31, United States Code. Managers on the Part of the Senate. The House bill contained no provision on objection to the request of the gentle- f this matter. woman from Washington? Amendment No. 25: Restores the citation REPORT ON RESOLUTION WAIVING There was no objection. of the House passed bill in lieu of the one POINTS OF ORDER AGAINST CON- f proposed by the Senate. FERENCE REPORT ON H.R. 889 The conference agreement restores the EMERGENCY SUPPLEMENTAL title of the House passed bill in lieu of the THERE SHOULD BE NO NEW APPROPRIATIONS AND RESCIS- one proposed by the Senate. TAXES ON FEDERAL EMPLOYEES SIONS FOR FISCAL YEAR 1995 CONFERENCE TOTAL—WITH IN H.R. 1215 COMPARISONS Ms. PRYCE, from the Committee on (Mr. WOLF asked and was given per- The total new budget (obligational) au- Rules, submitted a privileged report mission to address the House for 1 thority for the fiscal year 1995 recommended (Rept. No. 104–102) on the resolution (H. by the Committee of Conference, with com- Res. 129) waiving points of order minute and to revise and extend his re- parisons to the fiscal year 1995 budget esti- against the conference report to ac- marks.) mates, and the House and Senate bills for company the bill (H.R. 889) making Mr. WOLF. Mr. Speaker, listening to 1995 follows: emergency supplemental appropria- the 1-minutes back in my office, I Budget estimates of new tions and rescissions to preserve and agreed with literally everything that (obligational) authority enhance the military readiness of the was said by the Members of my side, all fiscal year 1995 ...... 2,365,696,629 Department of Defense for the fiscal the help there is for American families House bill, fiscal year 1995 . ¥13,940,000 year ending September 30, 1995, and for in the tax cut bill. But if everything Senate bill, fiscal year 1995 ¥1,272,684,450 they said is true, and I believe it is Conference agreement, fis- other purposes, which was referred to cal year 1995 ...... ¥746,140,000 the House Calendar and ordered to be true, why would not the same help be Conference agreement printed. given to Federal employees? compared with: f I have been a leader in the family is- Budget estimates of new sues for Federal employees and non- (obligational) author- REPORT ON RESOLUTION PROVID- Federal employees for the 102nd Con- ity, fiscal year 1995 ...... 3,111,836,629 ING FOR CONSIDERATION OF gress and the 103rd Congress. House bill, fiscal year H.R. 483, MEDICARE SELECT EX- The FBI agent that everyone here 1995 ...... ¥732,200,000 PANSION Senate bill, fiscal year would call if their husband or wife or 1995 ...... +526,544,450 Ms. PRYCE, from the Committee on kids were kidnapped is a Federal em- Rules, submitted a privileged report ployee. The cancer researcher out at For consideration of Senate amendments (Rept. No. 104–103) on the resolution (H. NIH that everyone would call quickly numbered 3, 5, 6, 7, and 10 thru 25, and the Res. 130) providing for consideration of if someone in your family had cancer is Senate amendment to the title of the bill: the bill (H.R. 483) to amend title XVIII a Federal employee. The Secret Service BOB LIVINGSTON, of the Social Security Act to permit agent, Timothy McCarthy, that JOHN MYERS, medicare select policies to be offered in stopped the bullet that saved the live BILL YOUNG, all States, and for other purposes, RALPH REGULA, of Ronald Reagan is a Federal em- which was referred to the House Cal- JERRY LEWIS, ployee. JOHN EDWARD PORTER, endar and ordered to be printed. So I say to my side, I agree with ev- HAROLD ROGERS, f erything you have said, because the FRANK R. WOLF, b 2330 American family is under more pres- BARBARA F. VUCANOVICH, sure today than any other time in the SONNY CALLAHAN, PERMISSION FOR SUNDRY COM- history of the country. But if this is CHARLES WILSON, MITTEES TO SIT ON THURSDAY, ALAN MOLLOHAN, good for American families, it should For consideration of Senate amendments APRIL 6, 1995, DURING FIVE- be good for the families of Federal em- numbered 1, 2, 4, 8, and 9: MINUTE RULE ployees. BILL YOUNG, Mrs. SMITH of Washington. Mr. Mr. Speaker, I urge the leadership of JOE MCDADE, Speaker, I ask unanimous consent that my side to remove the provision which BOB LIVINGSTON, the following committees and their increases the payroll tax on Federal JERRY LEWIS, employees. it should never see the light JOE SKEEN, subcommittees be permitted to sit to- DAVE HOBSON, morrow while the House is meeting in of day and should not pass. HENRY BONILLA, the Committee of the Whole House Mr. Speaker, as one of the first Members of GEORGE R. NETHERCUTT, under the 5-minute rule: Congress to call for family tax relief, I am H 4330 CONGRESSIONAL RECORD — HOUSE April 5, 1995 pleased that this package has as its center- $500 tax credit. This is a $1,250 hit without break for the American family but can't accept piece a $500 tax credit for families with chil- the tax credit. The 2.5 percent increase in an unfair tax hike on middle-class government dren. This is a much needed tax credit to cor- Federal payroll taxes represents a 36-percent employees. rect the tax inequity for families that has de- payroll tax increase. If this was being done to veloped over the years when the deduction for any other workers in this country, Republicans f children was not indexed. The capital gains would never stand for it. tax cut, and the easing of the marriage penalty The Federal retirement system provision SPECIAL ORDERS are also to be commended. It is time that we that was put into this bill is even more onerous The SPEAKER pro tempore. Under allow hard working American families to keep than the provision proposed in the Govern- the Speaker’s announced policy of Jan- more of their hard earned money. This bill is ment Reform and Oversight Committee, uary 4, 1995, and under a previous order a strong package to do that. where, by the way, the proposal couldn't even of the House, the following Members However, I come to the floor very troubled make it out of the civil service subcommittee. are recognized for 5 minutes each: and disappointed. In what was otherwise a There were only 2 days of hearings on this good bill for families and economic growth, the very complicated issue and quite frankly there f leadership has chosen to include a tax on were many issues unresolved. As our Rules The SPEAKER pro tempore. Under a Federal employees in this bill. For middle- Chairman has noted, this is not a good prece- previous order of the House, the gen- class Federal employees this is bad news. We dent to be setting. tleman from Florida [Mr. BILIRAKIS] is are making a very hasty decision regarding Furthermore, most management experts will recognized for 5 minutes. the largest single employer in the United tell you that as you are downsizing it is impor- [Mr. BILIRAKIS addressed the States when the pension system we are sup- tant not to demoralize the remaining staff. Hit- House. His remarks will appear here- posedly correcting faces no shortfall of legally ting Federal employees across the board with after in the Extensions of Remarks.] available budget authority to pay benefits. a payroll tax like this in conjunction with mas- There is no crisis here. Yet we are including sive downsizing efforts will have a devastating f a tax that will hit middle-class Federal employ- impact on morale at a critical time. ees so hard that it will eliminate for most any The issue of unfunded liabilities in the Fed- A BILL TO END THE USE OF of the benefits of this legislation. That I believe eral pension system is still open to consider- STEEL JAW LEGHOLD TRAPS ON is unfair and a mistake. able debate and quite frankly is a debate I ANIMALS IN THE UNITED Federal employees are virtually all middle- would be happy to have in a timely and STATES class taxpayers. We promised no tax in- thoughtful manner. When Congress originally The SPEAKER pro tempore. Under a creases on middle-class Americans; yet we set up the new retirement system and inte- previous order of the House, the gentle- have picked on a politically unpopular target. grated it with the old system in the mid-80s we woman from New York [Mrs. LOWEY] is I am frustrated to be put in such an untenable spent months and months hearing from ex- recognized for 5 minutes. situation. This was not in the Contract With perts. Senator STEVENS led the effort in the Mrs. LOWEY. Mr. Speaker, I rise today to America and it was rushed into this bill in fun- other body to see that this system was re- introduce legislation to end the use of steel damental violation of our promise of no new formed in a sound and fair manner. jaw leghold traps. More than 50 of our col- taxes. If any action in this area were to be To that end, I believe we now have a work- leagues have already endorsed this legisla- taken it should be more properly taken in the able system. The Congressional Research tion. I want to be very clear: this bill would not context of an overall entitlement reform effort Service reported that the Federal retirement that objectively looks at the need, if any, to im- system trust fund balance is adequate to pro- end trapping, but would simply end the use of prove the civil service system. vide needed budget authority on an ongoing this particularly barbaric instrument. Less cruel I was calling for family tax relief in the 102d basis. The combined funded and unfunded li- alternatives do, in fact, exist. Congress and 103rd Congress when Repub- abilities of the old retirement system is the Mr. Speaker, this device was invented in the licans in the White House, on the Ways and amount the Government would have to pay all 1820's and has continued to inflict needless Means Committee and the Budget Committee at one time if everyone who is or who ever pain and suffering for over 170 years. Mr. wouldn't give it the time of day. Many Demo- has been a vested CSRS participant could de- Speaker, since then we've passed a host of crats also opposed it because they wanted the mand a check for the present value of all the animal welfare statutes, including the Humane money to fund more Government programs. benefits to which they would be entitled from Slaughter Act and the Cruelty to Animals Act, Yet my bill for family tax relief garnered bipar- that time throughout retirement until their to name just two. Yet we continue to allow the tisan support of 263 cosponsors in the 102d death, taking into account future pay raises use of a device that slams with bone-crushing Congress. Raising taxes to fund a tax cut was they might receive and cost-of-living adjust- force upon any animal that steps into it. This never part of this picture. ments after retirement. As CRS noted, this trap does not discriminate between the front So why sully our tax package now with a event cannot happen in the Federal Retire- paw of a fox, the hind leg of a golden re- tax increase? Using a tax increase to balance ment System. triever, or the hand of a small child. It is a bru- is merely a return to failed policies of the past. Federal pension obligations will just not tality that we should stop. President Bush didn't balance the budget by come due all at one time. Furthermore, given More than 60 countriesÐincluding the Euro- raising taxes and neither did President Clinton. the large downsizing effort in progress, the pean UnionÐhave recognized and acknowl- In fact, in raising taxes both broke their prom- pension liabilities will be dramatically reduced edged the inhumanity of these traps. As of ise to the American people. To include this tax in coming years. And that is just one more January 1, 1996, countries that have not on Federal employees in this bill we will also reason why it is particularly unfair that Federal ended the use of this device will no longer be be breaking our promise in the Contract not to employees will see this huge jump in their permitted to sell furs in European markets. raise taxes. We are repealing the Social Secu- payroll taxÐmany of them will be gone before Unless we act now and follow their wise lead, rity tax increase which the Democrats passed their pension even vests. Rather than include the United States will be sanctioned as one of to balance the budget because it hit many this complex issue in this tax bill, perhaps we those countries. Mr. Speaker, some trappers middle-class retirees. Why repeat that mistake need to establish a bipartisan commission to are concerned that passing this bill would re- by picking on another group? And why repeat look at federal pensions as well as the poten- quire adopting alternative trapping methods the disasters of the past in breaking promises tial liabilities in the Pension Benefit Guaranty that already exist. That is true. But they must on tax increases? Corporation. understand that, without this law, the demand A fundamental tenet of the Contract With Finally, my understanding of the Contract for their furs will decline when the only buyers America is a commitment to no new taxes. was that we were fundamentally rejecting the to be found are those within our borders. Once we cede the tax issue in any area we idea of raising taxes to balance the budget Mr. Speaker, most Americans support the will be open to the argument that it is OK to and just saying NO to tax increases in all abolition of steel jaw leghold traps. It's time to raise taxesÐit just depends upon whose. We shapes and forms. To include a tax increase join the growing circle of enlightened nations shouldn't be talking about raising anybody's in this bill fundamentally violates the anti-tax that have realized that they can end the use taxes. But this bill singles out Federal employ- spirit of the Contract. To add this payroll tax of these instruments without killing the trap- ees for a dramatic increase in payroll taxes. when there are important issues still open to ping industry. If we don't act now, both the For example, an FBI agent with two children debate is particularly unwise. animals and trappers themselves will suffer earning $50,000 will pay an additional $250 a This is bad policy, bad politics and it is a the consequences. I encourage my colleagues year to the Federal Government even with the breach of faith to those who support a tax to join this effort to make this sensible change. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4331 FURTHER DISCUSSION ON TAX when we hear people say ‘‘Why am I sented a motion to recommit with re- BILL JUST PASSED BY THE HOUSE not receiving anything out of this sup- spect to the tax cut package which The SPEAKER pro tempore. Under a posed tax cut bill for America, and I went through. previous order of the House, the gen- hear that corporations no longer are He stated specifically and had a tleman from California [Mr. BECERRA] having to pay any taxes, even though placard, a board which showed that is recognized for 5 minutes. they have made billions in profits?’’ this bill does four things and that is all Mr. BECERRA. Mr. Speaker, we now That is, in my mind, very disturbing he spoke to. He says it substitutes move on to the Senate to discuss what for America. $95,000 for the threshold level for the has happened here today in the House But let me go through some of other family tax credit. The retirement of Representatives, where we have just aspects of this particular legislation changes are lowered only for Members provided to the privileged few in this that just went through that also should of Congress. It closes a loophole of re- Nation, the opportunity to have mas- concern Americans, especially those nouncing American citizenship and sive tax cuts. I would like to have an who are middle-income taxpayers and avoiding taxes. It includes the opportunity to go through a few of the those that are making perhaps less Browder-Castle language with respect things that we have just heard dis- than that. to thresholds that would have to be cussed over the last several hours of Touted throughout the day by Mem- met and other matters pertaining to debate on this tax bill. But I would like bers on the other side of the aisle was being able to balance our budget. to do it under the context of what will this tax break, $500 tax break for chil- Quite frankly, that was a very at- happen in many situations that will, of dren. A family with children would be tractive package to me as I listened to course, not help at all with single able to deduct $500 per child. That, of him and it gave me a great deal of Americans, especially middle-income course, went for families with incomes pause as to whether or not I should go Americans, but will in effect help some up to $200,000, which includes the ahead and support that because this of the wealthiest, not so much individ- wealthest 2 percent of Americans in does encompass some of the things that uals, but some of the wealthiest cor- this Nation. had concerned me in this bill, as it porations in America. b 1140 went along. I have before me some headline news. He mentioned one thing at that point But what they did not say was that if Headline news not of 1995, although I that caught my attention, though. He you happened to earn about $18,000 in must tell you that the headlines will be says this is 16 pages. At some point in your family income and you have a very appropriate in 1995 if this tax bill the middle of that he said that. We got goes through, but these are headlines child, you are not going to benefit from that particular tax break for children, a copy of this and have checked it out from 1984, 1985, and 1986, years when we since that time. did not have what we call the alter- because although you have children, I think to establish the RECORD, we native minimum tax. because your tax rates are going to be so low or your taxable income will be need to show here, Mr. Speaker, ex- The alternative minimum tax, for actly what else was in that 16 pages those who do not know, is a proposal so low because you make so little that that was not mentioned by Mr. GEP- that took effect in 1986 because we had you will not be able to benefit. HARDT here tonight. situations, as you see here, declared in So you are lucky if you are very The provisions which he filed in the some of our major newspapers through- wealthy because you have a lot of 16 pages eliminate the tax credit to re- out the country. We had situations as things to deduct that $500 from, but if Newsday reports where 50 major firms you happen to be a very hard-working duce the marriage penalty. It elimi- paid no U.S. taxes. We are talking American with a child, you will not nates the American dream savings ac- about firms that made profits in the have a chance to deduct a single cent count or the IRA. It eliminates the billions. We had corporations, as the because your income level is too low to spousal IRA. He did not mention that headlines say, that paid less taxes then make use of a $500 deduction. he eliminates the child tax credit alto- our families, in some cases families There are other things like the child gether in the first year then reduces earning less than $20 to $30,000. We had care credit which will not go to those from $500 to $100 in the next 2 years and headlines of firms misusing their tax families that are lower income and raised it to $300 thereafter. He also breaks, as demonstrated in studies that when you take a close look, you will failed to mention that he reduces the were done. see that this is not a tax break for income eligibility for the child tax We see also that in a study that was America. It is a tax break for the very credit from $200,000 to $60,000. done as well that 50 big firms paid the privileged few. Mr. WISE. Would the gentleman IRS zippo, nothing, not a single cent, f yield? when we had taxpayers earning perhaps Mr. CASTLE. I will yield very brief- $20 to $30,000 paying much, much more CHANGE IN ORDER OF TAKING ly. than the biggest corporations in Amer- SPECIAL ORDER Mr. WISE. There are several state- ica, the biggest corporations through- The SPEAKER pro tempore. Mr. ments. For instance, on your last one, out the world. SMITH from Michigan is recognized for you are not probably representing that. Because of situations like this, in 5 minutes. Mr. CASTLE. Let me reclaim my 1986 Congress passed the alternative Mr. CASTLE. I would ask unanimous time and finish. minimum tax. What we said is that at consent to have Mr. SMITH of Michi- Mr. WISE. If the gentleman is—— some point at the end of that year, a gan’s time yielded to me in his absence Mr. CASTLE. Reclaiming my time. corporation that has made billions of tonight. Mr. WISE. If the gentleman is going dollars in profits has to pay some mini- The SPEAKER pro tempore. Is there to attack the minority leader, then he mum tax. You cannot get off with no objection to the request of the gen- ought to yield. taxes, when even some of America’s tleman from Delaware [Mr. CASTLE]? Mr. CASTLE. It eliminates the repeal poorest families are paying even slight There was no objection. of the tax on social security benefits. It amounts of taxes. f eliminates the tax coverage for long- Well, in 1986 this went through. Now term insurance, accelerated death ben- every corporation in America that OTHER PROVISIONS IN GEPHARDT efits and long-term care benefits. It shows some profits must pay some PACKAGE eliminates the capital gains tax reduc- taxes. That seems pretty fair to me. The SPEAKER pro tempore. Under a tion. It eliminates the neutral cost re- Well, this bill that just passed this previous order of the House, the gen- covery provisions. It eliminates the re- House floor by a very small margin will tleman from Delaware [Mr. CASTLE] is peal of the alternative minimum tax. now eliminate the alternative mini- recognized for 5 minutes. It eliminates the taxpayer debt buy- mum tax, which means we will revert Mr. CASTLE. Mr. Speaker, I would down. It eliminates the small business to the days before 1986 where we saw like to go back to about an hour ago on expensing. It eliminates the elderly banner headlines like this in our major the floor of the House of Representa- care tax credit. It eliminates the tax newspapers. So let us not be surprised tives when the minority leader pre- credit for adoption. It eliminates the H 4332 CONGRESSIONAL RECORD — HOUSE April 5, 1995 increase in social security earnings have to wait for 2 years out, hopefully, not knowing what they voted for. I test. and then it would be reduced. think it is important that the Amer- In other words, Mr. Speaker, what Mr. CASTLE. That is correct the way ican people but as well my constituents this piece of legislation did or this at- it has been interpreted. in the State of Texas really focus on tempt on the motion to recommit was Mrs. SMITH of Washington. That what we did tonight. a lot more than the four items which would have been wrong. He would have First of all, I think it was very clear were mentioned here. Quite frankly, been eliminating the children’s tax what the Gephardt tax substitute did. this is one Member who was influenced credit. If focused on reducing the deficit at the by what he said and what he put on Mr. CASTLE. Mr. Speaker, may I ask same time as if did in giving the right that board and would be tremendously unanimous consent to have this sub- kind of tax benefits to those working impacted by that, perhaps even at the mitted as part of the record? Americans. But what it did for the sake of a vote and I think that is a real The SPEAKER pro tempore. Is there State of Texas and this was what the problem in the House of Representa- objection to the request of the gen- Sate of the Texas would lose under the tives. tleman? rescissions bill, which unfortunately Quite frankly, I have a problem with There was no objection. was passed, and this was simply to give motions to recommit anyhow. They WHAT GEPHARDT ‘‘FORGOT’’ TO TELL US this uninformed and incorrect and bi- come in at the last minute. You have ABOUT HIS MOTION TO RECOMMIT ased tax cut to those who do not need 10 minutes to consider them. This is a Page 3 (bottom) ‘‘strike subtitle A of title it. general problem, I am speaking to now. VI of the bill (other than section 6101).’’ So we are losing family nutrition. We Unfortunately, sometimes these things This eliminates the tax credit to reduce are going to lose in AFDC training and can try to get slipped by in the course marriage penalty. emergency assistance, school nutri- of oral testimony which is given here This eliminates the American dream sav- tion, Medicaid. We are going to lose usually when the chambers are filled ings accounts. summer jobs and, yes, our college stu- and it makes it very, very difficult. This eliminates the spousal IRA. dents are going to lose their ability to I would like to make this a part of Gephardt failed to mention that he elimi- nates the child tax credit in the first year, go to college with the college loans. the RECORD. I did not put this together. then reduces it from $500 to $100 for the next Mr. Speaker, I would simply say that It was done by the Ways and Means two years and raises it to $300 thereafter (see people. If somebody wants to try to even with the so-called Republicans page 4). that support this tax cut, in the quite split hairs and take it apart, fine, that He also failed to mention that he reduces could be done. income eligibility for the child tax credit moments of reflection they tell the Mr. SOLOMON. Would the gentleman from $200,000 to $60,000 (representing it as truth. What about the capital gains yield? $95,000). Tax? Is that widely popular among Mr. CASTLE. I will yield to the gen- *Page 5 (top) ‘‘strike subtitles B, C, D, and business? Let me tell you what they tleman from New York. E of title VI.’’ have said. This eliminates the repeal of the tax on Mr. SOLOMON. I would just like to ‘‘The rationale is to encourage Amer- Social Security benefits. icans to save and invest more of their say to the gentleman, he is absolutely This eliminates the tax preference for correct. I even spoke to some Members long-term insurance, accelerated death bene- money.’’ This is in the Washington of the Democratic party on that side fits and long-term care benefits. Post with an article in headlines, GOP who had the sense to vote against that This eliminates the capital gains tax re- Tax Cut Publicly Backed But Privately motion to recommit and when they duction. Doubted. ‘‘A goal supported by nearly found out that this was in there, they This eliminates the neutral cost recovery all economists, but even those who sup- were just outraged that they would be provisions. port it concede,’’ meaning the capital misled this way. I just thank the gen- This eliminates the repeal of the alter- gains tax, ‘‘there is no evidence that it native minimum tax. tleman for bringing this to Members’ This eliminates the taxpayer debt will work. In all honesty, as an econo- attention. buydown. mist I cannot say that a change in the Mrs. SMITH of Washington. Would This eliminates small business expensing. capital gains rate will have any meas- the gentleman yield? This eliminates the elderly care tax credit. urable impact on savings or invest- Mr. CASTLE. I will yield to the gen- This eliminates the tax credit for adoption. ment.’’ tlewoman from Washington. This eliminates the increase in Social Se- There goes your tax cut for the busi- Mrs. SMITH of Washington. I was curity earnings test. ness folk. Then this is supposed to be a really confused during the vote, but am f jewel. It is simply paste. I to understand that when people file Let me tell what you the Gephardt CHANGE IN ORDER OF TAKING their tax return next year that there tax cut did. What it did is it ensured SPECIAL ORDER was another provision in there, too, that we would be able to assess each that would have eliminated a child tax The SPEAKER pro tempore. The gen- time we were getting a cut as to credit in the first year? I do not think tleman from New York [Mr. OWENS] is whether or not it met the test of cut- he said that either. He then reduces it recognized for five minutes. ting the deficit. Each year, 1996, 1997, from 500 to 100 the next 2 years and Ms. JACKSON-LEE. Mr. Speaker, I 1998, 1999, 2000, 2001, we were going to raises it back. Otherwise, he basically would ask unanimous consent to take determine deficit targets: 150 billion, eliminated any benefit. I do not recall the place of Mr. OWENS, please. I am 125 billion, 100 billion, 75 billion, 50 bil- that that was made a point. Did I miss Ms. JACKSON-LEE from Texas. lion, and 25 billion. that? The SPEAKER pro tempore. Is there But most of all, Mr. Speaker, I think Mr. CASTLE. Reclaiming my time, objection to the request of the gentle- the most important point is that we the gentlewoman is absolutely correct. woman? would have a tax cut that responded to You did not miss it. It was not made a There was no objection. working Americans. point. It does eliminate it for one year. f I see the gentleman from Louisiana It is a lower level altogether to begin [Mr. FIELDS] and I wanted to yield to with. He did state it was a lower in- GEPHARDT TAX SUBSTITUTE him and make an inquiry, because we come level, but there was some ques- CLEAR are confronted and faced with hard de- tion about what that particular level The SPEAKER pro tempore. Under a cisions in this Congress. I do not think was but clearly the other omissions previous order of the House, the gentle- we are afraid of hard decisions. were not stated. woman from Texas [Ms. JACKSON-LEE] Mr. FIELDS of Louisiana. Without Mrs. SMITH of Washington. So when is recognized for 5 minutes. question. I thank the gentlewoman for they file their tax returns, if they have Ms. JACKSON-LEE. Mr. Speaker, I yielding. two kids next year, right now they think it is important as I heard the dis- One of the points that I wanted to would have $1,000 they could keep to cussion with my colleagues on the make was the point of the alternative buy a washer or dryer or something for other side of the aisle I heard some in- minimum tax proposal that was elimi- their family. Under this, they would dividuals talking about confusion and nated in this piece of legislation. I April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4333 mean, the whole purpose of this meas- er intended in any way to mislead the This would eliminate the repeal of ure that was passed in 1986 was because House regarding what his motion to re- the tax on social security benefits. of the fact that we had about 130 to 250 commit was. He talked about four This would eliminate the tax pref- corporations that pay zero in taxes. items. In fact, there are more like 15 or erence for long-term insurance, accel- This was a big loophole in our tax 20 items with respect to it. erated death benefits and long-term law, so we passed this legislation so we But I would like to give the minority care benefits. This eliminates the el- could make sure that corporations paid leader both the benefit of the doubt as derly care tax credit. This would elimi- their fair share. well as the opportunity to tell this nate the increase in the Social Secu- Now, if the gentlewoman would con- House that what he had indicated ear- rity earnings test. tinue to yield, even corporations, the lier this evening was not a complete These are not tax cuts to those who very corporations that we are giving statement but it was not meant to be do not need it. The Republican deficit this big tax break to today as a result an incomplete statement and to tell reduction tax fairness act is one of the of the passage of this act a few minutes the entire House what the complete strongest pieces of seniors legislation ago, if these corporations’ board of di- statement about the motion to recom- that this Congress has moved to date, rectors would meet across the country, mit really was. and that is why I am so proud to be an and if they are in the red, these board The reason that I think that it is im- original sponsor of the seniors portion of directors members will not give portant for him to do that is so that we of the legislation. their shareholders a tax dividend be- clear up the cloud with respect to rep- Essentially, what we have done with cause they are in the red. This com- resentations about motions to recom- this legislation is remove the unfair pany, this country is in the red. It is in mit. tax burden that the Democrats im- the red because we are facing a huge Mr. WISE. Mr. Speaker, point of posed on senior citizens in the last ses- deficit. order, point of personal privilege. sion of Congress. We are Members of Congress, we real- Mr. Speaker, I realize this may pre- Remember back in 1993 the Demo- ly are a board of directors for the Unit- date the Speaker somewhat, but sev- crats imposed a $25 billion tax on our ed States of America. So I think it is eral years ago we went through this Nation’s elderly. When President Clin- our fiduciary responsibility as mem- exact same procedure in which Mem- ton proposed this tax, he said that only bers of the board of directors for the bers, in effect—— the wealthiest Americans would face United States of America to make sure Mrs. SMITH of Washington. Mr. higher taxes. So, by President Clin- that we not give a tax dividend to our Chairman—— ton’s definition, senior citizens living shareholders when our corporation, Mr. HOKE. The gentleman is not on fixed incomes as low as $34,000 are which is the United States of America, stating a point of order. wealthy and ought to pay their fair is not as solvent as we want it to be. The SPEAKER pro tempore. The gen- share. So if corporations themselves will tleman will state his point of order. Well, what President Clinton and the not give shareholders a dividend when Mr. WISE. My point of order is that they are in a deficit, why would we as several years ago we went through this Democrats in Congress did 2 years ago a corporation for the United States of procedures where Members would in ef- was not fair, and after less than 100 America and as a board of directors fect call out other Members on the days we have just corrected this injus- give corporations themselves a divi- floor, knowing they were not there. It tice. dend. It makes absolutely no sense to was agreed, I thought, by rule, if not by In terms of New York, my State, my me. rule by comity, that that process elderly will be able to keep more than Ms. JACKSON-LEE. If the gentle- would no longer happen. Because, $2.2 billion more of their hard-earned woman would yield. clearly, the minority leader is not tax dollars, and I can assure you that You remember in 1981 when we got here, was not served notice that this this is going to benefit people who are that kind of tax cut when the deficit was going to happen until 2 minutes definitely in need of a tax break. They was then just $1 trillion, it is now, before when somebody came over here do need it. under the Republican leadership, $4 and said it was. Two of the other key elements of the trillion. I would just hope for comity purposes deficit and tax reduction package f alone we will not engage in this con- which benefit the senior citizens are duct which several years ago both par- the custodial care tax credit and the CHANGE IN ORDER OF TAKING ties rejected. estate and gift tax exclusion. SPECIAL ORDER The SPEAKER pro tempore. We are All of us have heard a loved one at The SPEAKER pro tempore. The gen- not aware of any violation of rule from one time or another say they did not tleman from Indiana [Mr. BURTON] is what he said so far. want to go to a retirement home. Well, recognized for 5 minutes. Mr. WISE. Then point of parliamen- by instituting a $500 elder care tax Mrs. SMITH of Washington. Mr. tary inquiry. Then it is appropriate for credit, we have started to take steps to Speaker, I ask unanimous consent to a Member to challenge another Mem- ease their minds and their family’s fi- substitute for the gentleman from Indi- bers even though they are not here, nancial burden. This helps keep fami- ana [Mr. BURTON]. probably cannot be reached, to chal- lies intact by providing financial as- The SPEAKER pro tempore. It there lenge them on the floor as though they sistance to families who might other- objection to the request of the gentle- were there and ask them to come for- wise have to place parents in a nursing woman? ward knowing that they cannot come home. There was no objection. forward I will stand strongly behind these tax f The SPEAKER pro tempore. As long provisions that help our seniors of this as the Member has not engaged in per- Nation. THE TAX BILL sonalities, which they have not. Mrs. SMITH of Washington. Mr. The SPEAKER pro tempore. Under a Mr. WISE. I thank the Speaker. That Speaker, we forget how strong the previous order of the House, the gentle- is an interesting rule. package was for seniors, but I want to woman from Washington [Mrs. SMITH] The SPEAKER pro tempore. The gen- talk about working families again, just is recognized for 5 minutes. tlewoman from Washington may pro- real quick. Mrs. SMITH of Washington. Mr. ceed. We heard about an average $120-some Speaker, I yield to the gentleman from Mrs. SMITH of Washington. Mr. tax break. There are not any ‘‘quarter’’ Ohio [Mr. HOKE]. Speaker, I would like to yield to the of a children. Next April, under this Mr. HOKE. I thank the gentlewoman gentlewoman from New York [Mrs. plan that we just passed, every child for yielding. KELLY]. will be worth $500 on the tax return to I wanted to just get on the record Mrs. KELLY. Mr. Speaker, perhaps their parents. So if you have two kids, with respect to the remarks of the mi- we have not made clear what Mr. GEP- it is $1,000. If you have three kids, it is nority leader, it seems to me that I HARDT’S motion would have meant for $1,500. That is actual money that you cannot imagine that the minority lead- the senior citizens of this Nation. can use to raise your own children. H 4334 CONGRESSIONAL RECORD — HOUSE April 5, 1995

So for many people that means that I urge my colleagues on both sides of Mr. SHUSTER in two instances. government will not have to do things the aisle to oppose these cuts. We can Mr. HOUGHTON. for them they can do for themselves. ill afford to turn our backs on our Mr. BATEMAN. For others, it means that they will buy young people. They are our future. Mr. CALLAHAN. something and pay taxes back into the f Mr. SOLOMON in two instances. economy. But it is a misnomer; all of Mrs. KELLY. the averages are often used to try to SPECIAL ORDERS GRANTED Mr. RAMSTAD. confuse the American people. By unanimous consent, permission to Mr. FRELINGHUYSEN. f address the House, following the legis- Mr. ARCHER. lative program and any special orders Mr. BURTON of Indiana. COLLEGE FINANCIAL AID heretofore entered, was granted to: Mr. SAXTON. PROGRAMS (The following Members (at the re- Mr. BUYER. The SPEAKER pro tempore. Under a quest of Mr. WISE) to revise and extend Mr. GILMAN. previous order of the House, the gen- their remarks and include extraneous Mr. GILLMOR. tleman from Pennsylvania [Mr. MAS- material:) Mr. HANCOCK. CARA] is recognized for 5 minutes. Mr. BECERRA, for 5 minutes, today. Mr. DAVIS. Mr. MASCARA. Mr. Speaker, I am Mr. OWENS, for 5 minutes, today. f here tonight to speak out against plans Mr. LIPINSKI, for 5 minutes, today. being considered by my Republican col- Ms. JACKSON-LEE, for 5 minutes, leagues to dismantle college financial BILLS PRESENTED TO THE today. PRESIDENT aid programs. Mr. UNDERWOOD, for 5 minutes, today. A college education is the heart and Mr. MASCARA, for 5 minutes, today. Mr. THOMAS, from the Committee soul of the American dream. It is the Mr. BALDACCI, for 5 minutes, today. on House Administration, reported meal ticket that helps ensure our Mr. BARRETT of Wisconsin, for 5 min- that that committee did on this day youngsters have the opportunity to utes, today. present to the President, for his ap- enjoy a brighter and more economi- Mr. ABERCROMBIE, for 5 minutes, proval, a bill of the House of the fol- cally secure tomorrow. today. lowing title: The financial aid programs that Re- Mr. ROMERO–BARCELO´ , for 5 minutes, On April 4, 1995: publicans want to cut back are the today. H.R. 831. An act to amend the Internal Revenue Code of 1986 to permanently extend tools that have helped generations of Mr. VOLKMER, for 5 minutes, today. Americans educate their children. the deduction for the health insurance costs Mr. PALLONE, for 5 minutes, today. of self-employed individuals, to repeal the If the cuts being considered are (The following Members (at the re- adopted, they would cost students and provision permitting nonrecognition of gain quest of Mrs. SMITH of Washington) to their families $20 billion over the next on sales and exchanges effectuating policies revise and extend their remarks and in- of the Federal Communications Commission, 5 years. It is estimated, that would add clude extraneous material:) and for other purposes. $4,157 over 10 years to the bill of the av- Mrs. SMITH of Washington, for 5 min- erage student in my home State of f utes, today. Pennsylvania. Mr. KINGSTON, for 5 minutes, today. According to a renowned higher edu- ADJOURNMENT Mr. HOKE, for 5 minutes, today. cation association study, the changes Mr. HAYWORTH, for 5 minutes, today. Mr. SOLOMON. Mr. Speaker, I move being sought by the Republicans would f that the House do now adjourn. constitute the largest increase in col- The motion was agreed to; accord- lege costs in history. EXTENSION OF REMARKS ingly (at 12 o’clock p.m.), the House ad- We cannot and should not let this By unanimous consent, permission to journed until tomorrow, Thursday, happen. It is reprehensible to attack April 6, 1995, at 10 o’clock a.m. the very programs that help ensure our revise and extend remarks was granted Nation has a source of future leaders to: f who can attain financial security. (Mr. MORAN, and to include extra- I happen to know something about neous material during debate on H.R. REPORTS OF COMMITTEES ON college educations. I received my de- 1215 in the House.) PUBLIC BILLS AND RESOLUTIONS (The following Members (at the re- gree in 1972 and over the years edu- Under clause 2 of rule XIII, reports of quest of Mr. WISE) and to include ex- cated my wife, Dolores, and our chil- committees were delivered to the Clerk traneous matter:) dren. for printing and reference to the proper Mr. STOKES in two instances. Because I believe so strongly in the calendar, as follows: benefits of a higher education, I have Mr. STARK. Ms. NORTON. Mr. LIVINGSTON: Committee of Con- served for many years as a trustee at ference. Conference report on H.R. 889. A bill Mr. GORDON. California University of Pennsylvania. making emergency supplemental appropria- Knowing how important it is to keep Mr. HASTINGS of Florida. tions and rescissions to preserve and enhance the costs of college in line and within Mr. HAMILTON. the military readiness of the Department of reach of working families, I have re- Mr. MURTHA. Defense for the fiscal year ending September peatedly opposed tuition increases that Mr. ACKERMAN. 30, 1995, and for other purposes (Rept. 104– have come before the board of trustees. Ms. LOFGREN. 101). Ordered to be printed. I know that each time tuition and Mr. HOYER. Mr. DREIER: Committee on Rules. House costs rise, students leave school be- Mr. LEVIN in three instances. Resolution 129. Resolution waiving points of order against the conference report to ac- Mr. WILLIAMS. cause they can no longer afford to stay. company the bill (H.R. 889) making emer- My goal has always been to keep Mr. POMEROY. gency supplemental appropriations and re- them in school to make sure they re- Mr. SABO. scissions to preserve and enhance the mili- ceive a college degree. Mr. DINGELL. tary readiness of the Department of Defense As I indicated in a 1 minute earlier Mr. SKAGGS. for the fiscal year ending September 30, 1995, this week, thousands of students in my Mr. JACOBS. and for other purposes (Rept. 104–102). Re- district would have no chance of Mr. CONYERS in two instances. ferred to the House Calendar. achieving a brighter future unless they Mr. GEJDENSON. Ms. PRYCE: Committee on Rules. House Resolution 130. Resolution providing for the get that all important degree. Mrs. LINCOLN. consideration of the bill (H.R. 483), to amend Let’s not let them down. Let’s lift Mr. COYNE. title XVIII of the Social Security Act to per- them up and help them lift themselves (The following Members (at the re- mit Medicare select policies to be offered in out of a lifetime of economic decadence quest of Mrs. SMITH of Washington) and all States, and for other purposes (Rept. 104– and despair. to include extraneous matter:) 103). Referred to the House Calendar. April 5, 1995 CONGRESSIONAL RECORD — HOUSE H 4335 PUBLIC BILLS AND RESOLUTIONS SON, Mr. TORRES, Mr. MILLER of Cali- mittee on Government Reform and Over- fornia, Mr. LANTOS, Mr. MORAN, Mr. sight. Under clause 5 of rule X and clause 4 VENTO, Mr. MCDERMOTT, Mr. GOSS, H.R. 1412. A bill to require the Director of of rule XXII, public bills and resolu- Mr. FILNER, Mr. MANTON, Mr. BROWN the Office of Management and Budget to de- tions were introduced and severally re- of California, Mr. DELLUMS, Mr. MAR- velop and implement a system for determin- ferred as follows: TINEZ, Mr. STARK, Mr. FRANK of Mas- ing and reporting the number of individuals By Mr. BURTON of Indiana (for himself sachusetts, Mr. JOHNSTON of Florida, employed by non-Federal Government enti- and Mr. TORRICELLI): Ms. WOOLSEY, Mr. WAXMAN, Mr. POR- ties providing services under contracts H.R. 1397. A bill to authorize the President TER, Ms. SLAUGHTER, Ms. ESHOO, Mr. awarded by executive branch agencies; to the to transfer 28 F–16 aircraft and associated MINETA, Mr. OWENS, Mr. DEUTSCH, Committee on Government Reform and spare parts and support equipment to Paki- Mr. YATES, Ms. ROYBAL-ALLARD, Mr. Oversight. stan pursuant to agreements between the GEJDENSON, Mr. SMITH of New Jersey, By Mr. PETERSON of Florida: United States and Pakistan; to the Commit- Mr. MARKEY, Mr. FARR, Mr. H.R. 1413. A bill to amend the Robert T. tee on International Relations. GUTIERREZ, Mr. ABERCROMBIE, Mr. Stafford Disaster Relief and Emergency As- By Mr. CLAY: SCHUMER, Mr. ANDREWS, Mr. PAYNE of sistance Act to impose a limitation on State H.R. 1398. A bill to designate the U.S. post Virginia, Mr. STUDDS, Mr. FOGLIETTA, eligibility for major disaster and emergency office building located at 1203 Lemay Ferry Ms. NORTON, Mrs. MINK of Hawaii, assistance to ensure that States repay loans Road, St. Louis, MO, as the ‘‘Charles J. Mrs. KENNELLY, and Mr. BONIOR): and advances made under that act; to the H.R. 1404. A bill to end the use of steel jaw Coyle Post Office Building’’; to the Commit- Committee on Transportation and Infra- leghold traps on animals in the United tee on Government Reform and Oversight. structure. States; to the Committee on Commerce. By Mr. HAMILTON: By Mr. RANGEL: By Mr. MARTINEZ (for himself, Mr. H.R. 1399. A bill to provide for the convey- H.R. 1414. A bill to provide grants to States FATTAH, Mr. DELLUMS, Ms. WATERS, ance of certain real property at the Indiana to reduce crime and poverty in poor neigh- Mr. CLAY, Mr. LEWIS of Georgia, Mr. Army Ammunition Plant in Charlestown, IN, borhoods by providing employment opportu- ABERCROMBIE, Mr. OWENS, Mr. SCOTT, to the State of Indiana for inclusion in a nities to disadvantaged young adults; to the Ms. ROYBAL-ALLARD, and Ms. State park; to the Committee on National Committee on Economic and Educational Security. VALAZQUEZ): H.R. 1405. A bill to establish a national Opportunities. By Mr. RICHARDSON (for himself, Mr. By Mr. SKAGGS (for himself and Mr. NADLER, Mr. ABERCROMBIE, Mr. ACK- public works program to provide incentives MCINNIS): ERMAN, Mr. BERMAN, Mr. BONIOR, Mr. for the creation of jobs and address the res- H.R. 1415. A bill to authorize the Secretary BROWN of California, Ms. ESHOO, Mr. toration of infrastructure in communities of the Interior to enter into an appropriate EVANS, Mr. FALEOMAVAEGA, Mr. across the United States, and for other pur- form of agreement with the town of Grand FARR, Mr. FILNER, Mr. HINCHEY, Mr. poses; to the Committee on Economic and Lake, CO, authorizing the town to maintain MARTINEZ, Mr. MCDERMOTT, Ms. Educational Opportunities, and in addition permanently a cemetery in the Rocky Moun- MCKINNEY, Mr. PALLONE, Ms. PELOSI, to the Committee on Transportation and In- tain National Park; to the Committee on Re- Mr. ROMERO-BARCELO, Ms. ROYBAL- frastructure, for a period to be subsequently sources. ALLARD, Mr. SABO, Mrs. SCHROEDER, determined by the Speaker, in each case for Mr. SERRANO, Mr. TORRES, Ms. consideration of such provisions as fall with- By Mr. SMITH of New Jersey (for him- VELA´ ZQUEZ, Mr. VENTO, Mr. WAXMAN, in the jurisdiction of the committee con- self, Mr. LANTOS, Mr. HYDE, Mr. Ms. WOOLSEY, and Mr. YATES): cerned. WOLF, Mr. ROHRABACHER, Mr. YATES, H.R. 1400. A bill to amend the Clean Water By Mr. MASCARA: Mr. FRANK of Massachusetts, Ms. Act to eliminate certain discharges of chlo- H.R. 1406. A bill to require the Secretary of PELOSI, Mr. SABO, and Ms. MCKIN- rine compounds into navigable waters, and the Treasury to mint coins in commemora- NEY): for other purposes; to the Committee on tion of the 50th anniversary of the Marshall H.R. 1416. A bill to implement the Conven- Transportation and Infrastructure. plan and George Catlett Marshall; to the tion Against Torture and Other Forms of By Mr. HOUGHTON (for himself and Committee on Banking and Financial Serv- Cruel, Inhuman, and Degrading Treatment Mr. GIBBONS): ices. or Punishment and to provide a program of H.R. 1401. A bill to establish for certain By Mr. MEEHAN: support for victims of torture; to the Com- employees of international organizations an H.R. 1407. A bill to provide for the transfer mittee on the Judiciary, and in addition to estate tax credit equivalent to the limited of certain excess property at Fort Devens the Committees on International Relations, marital deduction; to the Committee on Military Reservation to the Secretary of the and Commerce, for a period to be subse- Ways and Means. Interior for inclusion in the Oxbow National quently determined by the Speaker, in each By Mr. JACOBS (for himself, Mr. Wildlife Refuge, and for the conveyance of a case for consideration of such provisions as LEACH, Mr. DELLUMS, Mr. FRANK of parcel of property at such military reserva- fall within the jurisdiction of the committee Massachusetts, Mrs. SCHROEDER, Mr. tion to the town of Lancaster, MA; to the concerned. DEFAZIO, Mr. MILLER of California, Committee on Resources, and in addition to By Mrs. SMITH of Washington: Ms. RIVERS, Mr. TOWNS, Mr. MARKEY, the Committee on National Security, for a H.R. 1417. A bill to amend the Magnuson Mr. OBERSTAR, Ms. VALAZQUEZ, Mr. period to be subsequently determined by the Fishery Conservation and Management Act YATES, Ms. FURSE, Mr. LEWIS of Speaker, in each case for consideration of to provide for a 3-year research plan to as- Georgia, and Mr. MCHALE): such provisions as fall within the jurisdic- sess the status of stocks of fish that are H.R. 1402. A bill to amend the Internal Rev- tion of the committee concerned. managed under the Pacific Fisheries Man- enue Code of 1986 to improve revenue collec- By Mr. MINGE: agement Council Pacific Coast Groundfish tion and to provide that a taxpayer conscien- H.R. 1408. A bill to amend the Internal Rev- Plan, and for other purposes; to the Commit- tiously opposed to participation in war may enue Code of 1986 to provide that a taxpayer tee on Resources. elect to have such taxpayer’s income, estate, may elect to include in income crop insur- By Mr. TRAFICANT: or gift tax payments spent for nonmilitary ance proceeds and disaster payments in the H.R. 1418. A bill to prohibit United States purposes, to create the U.S. peace tax fund year of the disaster or in the following year, foreign assistance for Russia unless the Gov- to receive such tax payments, and for other and for other purposes; to the Committee on ernment of Russia prohibits the export of nu- purposes; to the Committee on Ways and Ways and Means. clear weapons equipment and related tech- Means, and in addition to the Committees on By Ms. NORTON (for herself and Mrs. nology and offensive military weapons, International Relations, and Economic and MORELLA): equipment, and related technology to terror- Educational Opportunities, for a period to be H.R. 1409. A bill to provide for funding for ist states; to the Committee on Inter- subsequently determined by the Speaker, in Federal employee pay adjustments and com- national Relations. each case for consideration of such provi- parability payments through reductions in By Mr. VISCLOSKY: sions as fall within the jurisdiction of the agency spending on service contracts for fis- H.R. 1419. A bill to provide an exemption committee concerned. cal year 1996; to the Committee on Govern- with respect to gambling devices on certain By Mr. KENNEDY of Massachusetts: ment Reform and Oversight. vessels making voyages on Lake Michigan; H.R. 1403. A bill to regulate handgun am- H.R. 1410. A bill to amend the Federal to the Committee on Transportation and In- munition, and for other purposes; to the Workforce Restructuring Act of 1994 to pro- frastructure. Committee on the Judiciary. hibit the contracting out of certain duties; By Mr. BROWN of Ohio (for himself By Ms. LOWEY (for herself, Mr. SHAYS, to the Committee on Government Reform and Mr. STEARNS): Mr. ACKERMAN, Mr. HYDE, Mr. and Oversight. H. Con. Res. 57. Concurrent resolution ex- NADLER, Mrs. MALONEY, Mr. ROEMER, H.R. 1411. A bill to prohibit any executive pressing the sense of the Congress supporting Ms. PELOSI, Mr. TORRICELLI, Mr. branch agency from entering into any serv- the Government of India’s efforts to hold MEEHAN, Mr. MCCOLLUM, Mr. TRAFI- ice contract if the services procured under free and fair elections in Jammu and Kash- CANT, Mr. LIPINSKI, Mr. CLAY, Mr. JA- the contract can be performed at a lower mir; to the Committee on International Re- COBS, Mrs. SCHROEDER, Mr. BEILEN- cost by employees of the agency; to the Com- lations. H 4336 CONGRESSIONAL RECORD — HOUSE April 5, 1995

By Mr. DEUTSCH: NEY, Mr. GOODLING, and Mr. FAZIO of Califor- H.R. 1138: Mr. FLANAGAN, Mr. STUDDS, and H. Res. 131. Resolution to preserve the con- nia. Mr. HOSTETTLER. stitutional role of the House of Representa- H.R. 789: Mr. ROBERTS and Mr. DUNCAN. H.R. 1162: Mr. BENTSEN, Mr. LUTHER, and tives to originate revenue measures; to the H.R. 800: Mr. CRAPO. Mr. QUINN. Committee on Ways and Means. H.R. 803: Mr. BAKER of California, Mr. H.R. 1184: Mr. CRANE, Mr. DOOLITTLE, Mr. f FAZIO of California, Ms. WOOLSEY, Mr. MCINNIS, and Mr. NETHERCUTT. BLUTE, Mrs. MYRICK, Mr. CRAMER, and Ms. H.R. 1200: Mr. RUSH and Mr. ACKERMAN. PRIVATE BILLS AND HARMAN. H.R. 1233: Mrs. MALONEY, Mr. WILLIAMS, RESOLUTIONS H.R. 804: Mr. KIM. Mr. BARRETT of Wisconsin, Mr. MARTINEZ, H.R. 820: Mr. BARRETT of Wisconsin, Mr. Mr. THORNTON, Mr. KLUG, Mr. BROWN of Cali- Under clause 1 of rule XXII: BROWN of Ohio, Mr. NORWOOD, Mr. CANADY, fornia, Mr. FOX, and Mr. GEJDENSON. Mr. METCALF introduced a bill (H.R. 1420) and Mr. ROSE. H.R. 1234: Mr. MCKEON and Mr. WICKER. for the relief of Richard W. Schaffert; which H.R. 862: Mr. PACKARD. H.R. 1242: Mr. ROHRABACHER, Mr. PORTMAN, was referred to the Committee on the Judici- H.R. 893: Ms. BROWN of Florida, Mr. LEVIN, Ms. DUNN of Washington, Mr. LARGENT, Mr. ary. and Mr. LIPINSKI. KASICH, Mr. LATOURETTE, Mr. BARRETT of H.R. 895: Mr. REED and Mr. HINCHEY. f Wisconsin, and Mr. KLUG. H.R. 915: Ms. PELOSI, Mr. YATES, Mr. H.R. 1252: Mrs. THURMAN. ADDITIONAL SPONSORS NADLER, Ms. NORTON, Mr. LEWIS of Georgia, H.R. 1253: Mrs. MINK of Hawaii, Mr. MAT- and Mr. TORRICELLI. Under clause 4 of rule XXII, sponsors SUI, Mr. ACKERMAN, Mr. MONTGOMERY, Mr. H.R. 927: Mr. ENGEL, Mr. KNOLLENBERG, Mr. RICHARDSON, Mr. FRANK of Massachusetts, were added to public bills and resolu- WILSON, Mr. FOLEY, and Mr. BARTLETT of tions as follows: Maryland. Mr. LEACH, Mr. KLECZKA, Mr. FROST, Mr. MOAKLEY, Mr. LIPINSKI, Mr. DEFAZIO, Mr. H.R. 26: Mr. TANNER, Mr. SPRATT, Mr. H.R. 942: Mrs. KELLY, Mr. UPTON, Mr. TORRES, Mr. ABERCROMBIE, Mr. BERMAN, Mr. INGLIS of South Carolina, and Mr. JOHNSON of ROHRABACHER, Mr. WYDEN, Mr. BEILENSON, BROWN of California, Mrs. SCHROEDER, Mr. South Dakota. Ms. PELOSI, Mr. SHAYS, Mr. FORBES, Mr. JACOBS, Mr. HINCHEY, Mr. ROEMER, Mr. H.R. 104: Mr. BONO. HORN, Mr. KILDEE, and Mr. HALL of Ohio. ONIOR TOKES H.R. 125: Mr. CRAMER, Mr. ORTON, and Mr. H.R. 957: Mr. PETERSON of Florida and Mr. B , and Mr. S . ROGERS. HANCOCK. H.R. 1259: Mr. FROST, Mr. HAYES, Mr. H.R. 127: Mr. BROWN of California, Ms. H.R. 972: Mr. HAMILTON. UNDERWOOD, Mr. DELLUMS, Mr. HANSEN, Mr. MCCARTHY, Mrs. SCHROEDER, and Mr. VOLK- H.R. 987: Mr. PETE GEREN of Texas and Mr. RADANOVICH, and Mr. BROWN of California. MER. MCCRERY. H.R. 1274: Mr. RUSH and Mr. PALLONE. H.R. 345: Mr. BEREUTER. H.R. 990: Mrs. THURMAN. H.R. 1302: Mr. LAFALCE, Mr. WILLIAMS, Mr. H.R. 359: Mr. PALLONE, Mr. BARTON of H.R. 994: Mr. CALVERT, Mr. TANNER, Mr. THORNTON, Mr. GEJDENSON, and Mr. SAWYER. Texas, and Mr. PAYNE of New Jersey. BENTSEN, Mr. GENE GREEN of Texas, and Mr. H.R. 1323: Mr. BACHUS. H.R. 398: Mr. FIELDS of Louisiana. JOHNSON of South Dakota. H.R. 1326: Mr. TRAFICANT and Mr. CLINGER. H.R. 399: Mr. MCHALE. H.R. 997: Mr. HILLIARD and Mr. PALLONE. H.R. 1328: Mr. LIPINSKI and Mr. CLINGER. H.R. 462: Mr. EVERETT. H.R. 1002: Mr. CALLAHAN and Mrs. H.R. 1391: Mr. THOMAS and Mr. BILIRAKIS. H.R. 483: Mr. WARD, Mr. WHITFIELD, and THURMAN. H. Con. Res. 12: Mr. ARMEY. Mr. EVERETT. H.R. 1003: Mr. WELLER, Mr. THOMPSON, Mr. H. Con. Res. 47: Mr. BAKER of California, H.R. 497: Mr. CALVERT. EMERSON, and Mr. DELLUMS. Mr. BROWN of Ohio, Mr. DELLUMS, Mr. H.R. 526: Mr. WATT of North Carolina and H.R. 1005: Mrs. KELLY and Mr. DREIER, Ms. ESHOO, Mr. EVANS, Mr. FRANK of Mr. ROSE. FUNDERBURK. Massachusetts, Mr. FRANKS of New Jersey, H.R. 570: Mr. SHAYS. H.R. 1023: Mr. MANTON, Mr. HALL of Ohio, Mr. HORN, Mr. KILDEE, Mr. KNOLLENBERG, H.R. 645: Mr. MINETA. Mr. PETRI, and Mr. BILBRAY. Mr. LEVIN, Mr. MARKEY, Mr. MARTINEZ, Mr. H.R. 649: Mrs. THURMAN. H.R. 1061: Mr. HOUGHTON and Mr. HANCOCK. MCHUGH, Mr. MOORHEAD, Mr. RADANOVICH, H.R. 656: Mr. BLUTE, Mr. FRISA, Mr. CAL- H.R. 1076: Mr. TAYLOR of North Carolina, Mr. REED, Mrs. ROUKEMA, Ms. ROYBAL-AL- VERT, Mrs. KELLY, and Mr. FOX. Mr. BAKER of Louisiana, Mr. MORAN, Mrs. LARD, Mr. SOUDER, Mr. STOKES, Mr. TORRES, H.R. 682: Mr. JACOBS and Mrs. ROUKEMA. CHENOWETH, and Ms. LOFGREN. Mr. UNDERWOOD, and Mr. WAXMAN. H.R. 692: Mr. TANNER. H.R. 1080: Mr. HINCHEY. H. Con. Res. 50: Mr. CALVERT and Mrs. H.R. 699: Mr. BONO. H.R. 1094: Mr. CALVERT, Mr. PETERSON of MORELLA. H.R. 708: Mr. MINETA. Florida, Ms. LOWEY, Ms. KAPTUR, Mr. H. Con. Res. 53: Mr. MARTINEZ, Mr. AN- H.R. 744: Mr. GENE GREEN of Texas. POSHARD, Mr. FOGLIETTA, Mr. WELLER, and DREWS, and Mr. BERMAN. H.R. 763: Ms. NORTON. Mr. BEREUTER. H. Res. 98: Mr. HINCHEY and Ms. MCKINNEY. H.R. 764: Ms. MCKINNEY. H.R. 1114: Mr. EMERSON, Mr. OXLEY, Mr. H. Res. 99: Mr. HOYER. H.R. 782: Mr. PICKETT, Mr. JONES, Mr. HERGER, Mr. MILLER of Florida, and Mr. H. Res. 124: Mrs. MORELLA, Mr. BROWN of HORN, Mr. RICHARDSON, Mr. COLEMAN, Mr. MANZULLO, California, and Mr. RUSH.