Date: 1981-07-29
Speaker: VANDER JAGT (republican)
Chamber: H

Mr. Chairman. I would like to commend the distinguished chairman of the. Ways and Mean s Committee for the truly outstanding job that he has done In bringing to this floor the secondbest tax legislation cut that we have had In at least a quarter of a century. The only thing that beats It is the substitute we are going to be voting on In just a moment. It. does not detract from my admiration for the leadership of the chairman to observe that It does not take a very good tax bill to be better than the tax bills that we have had In the past. Five times In Just the last 10 years we have adopted tax cuts and taxeshave gone up $400 billion. While we have been voting for tax cuts five times. taxes have incteased twice as fast as wages or inflation. In *1978 my colleagues will remember we adopted a tax cut. We went back home under blazing hea~dlines. "Congress Votes Big.Tax Cut for American People." Eightytwo percent of the American people paid more taxes In 1979 than they did In 1978. and that Is not a tax cut: that Is a tax Increase. And this tax cut over a 3year period Is exactly the same thing. If we do not do anything. taxes for individuals in 3 years go up 22 percent. A 15percent cut over that time frame translates into a 7percent tax Increase. Only something in the magnitude of the Presidents proposal which has indexing will make them permanent and will give real meaningful tax cuts to the American people. The difference between this committee tax bill and the bills that have gone before Is that It maintains the Illusion of a tax cut for 2 years Instead of the usual 2 months. A family earning $15.000 does get $47 more in tax relief total In the first 2 years. But in the third and fourth year it Is taken away -fourfold. There Is terrible bracket creep in the committee bill. In fact. some fadtory working failies In the 25percent bracket today will be vaulted Into the 48percent bracket in just .5 years. That Is not bracket creep. that Is bracket leap and it is devastating for those working American families that are subjected to it. There is a fundamental philosophical difference In the two bills that I think was put into focus for us by our distinguished Speaker. for whom I have the greatest esteem and genuine affection. E0 1540 You will recall as the gentleman closed the debate on the budget battle. the Speaker argued. in essence. that America is great partly because of all the good things that our Government has done for our people. and the gentle man pointed with pride to the fact that Congress has always given our people more Government this year than the year before. "Please do not cut these good Government programs." the gentleman argued. "because it will cut the greatness of Americ4." Ronald Reagan has argued Just exactly the opposite. He says. "America Is not great because of what Government did for people. American Is great because of what. In America. a free people had the opportunity and incentive to do for themselves." That Is what the President Is trying to give back to the people through this tax cut. The difference In philosophy Is dramatic in these two bill. Under the Speakers bill. by 1984 the Government will be taking more dollars from every working American so Government can do more for It. By 1984. under the Presidents *bill. every. worker In America will keep- more of what he earns so he can do more for himself. The choice Is clear: Tax Increase or tax cut. outmoded traditional tax policy or something different. a new beginning together. Years ago James Russell Lowell wrote: New occasions teach new duties. We cannot make their creed our Jailer. They must forever onward sweep. And upward who would keep abreast of truth Nor attempt the futures portal with the pasts worn out key. By voting for the Republican substitute. the Members will be voting to throw away the wornout key of tax policies of the past and opening the door to a future. a future of economic recovery. of more Jobs. and more aftertax dollars for every American.