Date: 2007-04-17
Speaker: DAVID DAVIS (republican)
Chamber: H
State: Tennessee

Madam Speaker. I thank the gentleman from Georgia for yielding.. Congressman PRICE. you do such a great job. Thank you for your leadership. Thank you for your willingness to spread the truth. I welcome the opportunity to speak to Americans on tax day. I know some of us. as we draw near to midnight here. a lot of people still working on those forms. trying to get them down to the post office. It reminds me of what Ronald Reugan said back in the early 1980s. Ronald Reagan said. "We dont have a trillion dollar debt because -we havent taxed enough. We have a trillion dollar debt because we spend too much." That seems like commonsense to me. and I think the people that are listening to us tonight understand that. They understand they have to sit around the kitchen table and decide how much money is coming in and how much money goes out. Small business owners have to do the same thing. They sit around sometimes at a little break room table and decide. am I going to hire that next person or am I going to have to lay somebody off? Am I going to be able to afford another machine to be more productive so I can grow the business and be good for the economy? We understand that as Americans. Today. tax day. families across America are feeling the cost of the Federal Government. I know we feel it. I know the American people are feeling it. It is one of the reasons I decided to run for Congress. I did own a small business. and I have actually owned a couple. I grew up in a small community in a little county called Unicoi County in East Tennessee. up in the mountains near North Carolina. And I worked my way through college. I actually worked two jobs. went to school full time. and was fortunate enough from that to start some businesses. And I sold one of those businesses. And one of the reasons I decided to run for Congress was because the government took too much of my money. And I really looked at it as being my money because I earned it. My wife and I started the business. We took the risk. We put our home up. If that business hadnt succeeded. the bank could have come and taken our home. And when I sold the business. I should have been able to keep the proceeds and take care of my two children. It shouldnt have gone to the government. And I decided that I needed to get involved. According to the Congressional Research Service. President Bushs program of comprehensive tax relief was well timed to respond to a weak economy. Do you remember back in the early 2000s we had just been hit by terrorist extremists. and we had natural disasters. So those tax relief packages that he put in place have actually worked. Tax relief enacted in 2001 granted immediate tax rebates. reduced marginal tax rates. and lowered the marriage tax penalty. The tax relief of 2003 accelerated much of the 2001 growth which would ultimately strengthen our economy. We are residing and living in a strong economy. The Republican tax cut relief has seen nearly 4 straight years. 21 straight quarters. of economic growth. while adding 7.5 million new jobs. Seven point five million new jobs. that excites me. And we were able to do that because people are allowed to keep their money at home. You see. government really doesnt create jobs. Government takes money. But if you leave that money back in local communities. that money is put to work and it does good things. The Congressional Budget Office confirmed that the tax cuts of 2003 have helped boost the Federal revenues by 68 percent. Commonsense again. If -you allow people to keep their tax dollars at home. the economy grows. And this should be understood by both sides of the aisle. This actually works for Democrats and Republicans. It worked for President Kennedy. it worked for President Reagan. and it has worked for President Bush. This is bipartisan. We all .ought to understand that keeping taxes low. keeping spending low. the economy will grow and the coffers of government will grow. I think that is a good thing. We should all work to make the successful tax cuts of 2001 and 2003 permanent. If they are not made permanent. which I am convinced that this new "hold on to your wallet Congress" has in mind. we are going to have a problem in our economy. For example. 84 million women will see their taxes increased by $1.970. Now. we all say here for the low and middle income. but if you are a woman. with this new tax increase of $400 billion. your average tax is going to go up $1.970. We are going to see 48 million married couples taxes increased by $2.726. It seems inherently unfair to me. Fortytwo million families will see their taxes go -up by $2.084. And I thought we were here for the low and middle income. These are the people that are paying taxes. Twentysix million small business owners will see a devastating tax increase of $3.637. The small business owner that runs the little store down the street or creates five jobs on the corner. who probably employs some of your friends in your local community. they are going to see their taxes go up over $3.600. And where are they going to get that $3.600 to send up to Washington? They are going to get it from you. the American people. They are going to either increase the cost of goods and we are going to see inflation. or they are going to decide they cant hire that last employee or maybe they have to let that last employee go. Five million lowincome individuals and couples will no longer be exempt from Federal income taxes. This is going to hurt the very people that we say we are trying to help. Again. we should work in a bipartisan manner. Republicans and Democrats. to make sure that the tax cuts of 2001 and 2003 are made permanent. I am very concerned if we dont do that. that we are going to see our economic growth go into a slide. and we are going to have a problem that we are going to have to deal with. Just two weeks ago. Washington Democrats passed a fiscal blueprint that raises taxes on Americans in one fell swoop. As part of this illgotten budget. taxpayers in Tennessee. my home State. will not be allowed to deduct their sales tax from their Federal income tax. which is only fair because we dont have an income tax. It makes us equal with all the other States. Taxes on small businesses in east Tennessee will go up. The child tax credit will decrease from $1.000 to $500. The marriage penalty is coming back. Residents of the First District of Tennessees average expense in taxes is going up over $2.000. The definition of a small business will decrease from everybody knows. that. They look for$400.000 to $200.000. Dividends will no ward to that day with dread. And I longer be taxed at the personal gains have said so many times I think the rate. thereby increasing double tax- only thing good that happens that day ation of dividends by as much as 62 per- is my nephew. Chip Wedgeworth. has a cent. People all across America voted birthday every year on April 15. So for change. but they are not getting that is the highlight of our April 15. the change they voted for. I think the reason that Americans We have a choice between bigger look at April 15 with that sense of economy or bigger government. and dread is because they know. our conthe majority party has made it their stituents know. that we are overtaxed. choice to have a bigger government. They know that the government is And if anyone tells you that Americans overspent. It is plain and simple to arent paying their fair share for a civ- them. They know that the government ilized society. they must remember does not have a revenue problem. that Americans pay more in their taxes theyve got a spending problem. And than they do for housing. clothing and they never take the time to go through heating combined. And also remember the disciplines that are necessary to rethat Americans this year will have to duce what the Federal Government work until the last week of April in spends. Those are things that Amerorder to pay their taxes. That is over ican men and women who are working 114 days just to cover their tax bills. So know. They know that government is on tax day. today. when we feel it the overspent. they know that they are most. everyone needs to remember. we overtaxed. They know that the governneed to hold the line on spending. re- ment d6esnt have a revenue problem. duce earmarks. and pass line item veto. that it has a spending problem. And and crack down on worthless pork bar- Americans do mark this date on the rel spending and be good stewards of calendar. They resent what it stands the taxpayers money. And again Ire- for. mind you. Ronald Reagan said. "We I thank the gentleman from Georgia dont have a trillion dollar debt be- for what he is doing on this issue. cause we havent taxed enough. we Madam Speaker. it is so nice to be on have a trillion dollar debt because we this floor and be joined by my colspend too much." leagues who are real people. who live And with that. I yield back. real lives. as the gentleman from Ten-