Providing for consideration of motions to suspend the rules.

Mr. Speaker, I thank the distinguished member of the Rules Committee for yielding.

I rise to finally say we have relief. I thank the chairman of the Ways and Means Committee and the chairwoman of the Small Business Committee because without you, we wouldn't be here today being able to finally move forward not only tax relief for small businesses but getting a vote for the minimum wage. Thank you very much.

And I thank you for working it out with the ranking members. Finally we will be able to move in the other body that would not give us an up- or-down vote on the minimum wage. But we have good news because we extend the Work Opportunity Tax Credit. We help small businesses invest in new equipment, which is so very important. And, third, and what is certainly not least, we win the support, as I said, of the Senate to move forward on the minimum wage.

But it is important to note that this WOTC will help veterans, ex- felons, high-risk youth, and welfare recipients, individuals who create the engine of our economy who are trying for a second chance. So this is the right kind of mixture, giving relief to small businesses, which I have always said, are the backbone of the economy of America. I am grateful to say that the small businesses in the 18th Congressional District, which have created an economic engine in our community, will now have the right kind of tax relief to create opportunities for them to reinvest in their own businesses to buy more equipment, because every one of us go home to the churning of small businesses. Every day small businesses open their doors and create jobs for one and two and three and four and five and six and seven and eight and nine and ten employees. So this will be the right message that we will send.

Then, of course, we will give the opportunity for training for our welfare-to-work mothers. We will give training for our veterans. We will give training for high-risk youth. And, yes, we will help those who are trying to reenter to be able to create an opportunity for their families.

Finally, of course, I am gratified that we will have the opportunity now in 10 years to provide the opportunity for those on minimum wage. And in the State of Texas this will create a $4,000 increase for our working families with a minimum wage increase.

Let me thank the proponents of this bill. I ask for a vote in support of H.R. 976.

Mr. Speaker, I rise in support of H.R. 976, the ``Small Business Tax Relief Act of 2007.'' I support the bill for several reasons. First, H.R. 976 extends the Work Opportunity Tax Credit (WOTC)--which provides incentives to employers to hire individuals from targeted groups that frequently experience barriers to work--for one year and expands it to cover disabled veterans.

Second, H.R. 976 helps small businesses invest in new equipment and more easily afford large capital expenses. It extends small business expensing (Section 179) for one year--increasing both the amount small businesses can deduct from their taxes (from $112,000 to $125,000) and the number of small businesses that can take these deductions (by increasing the income limits for businesses taking the deduction from $450,000 to $500,000).

Third, and not least important, passage of H.R. 976 is necessary to win the support of the Senate and signature of the President on the legislation passed earlier by this House to raise the minimum wage for millions of hard-working, low-wage workers by $2.10 per hour to $7.25. It has been more than nine years since the minimum wage was last increased, the longest period in the history of the law. In contrast, during this time period Indeed, Mr. Speaker, that it removes the last major hurdle between low-wage workers and the long-overdue pay raise they desperately need, is reason enough for me to support the bill before us.

But evaluated on its merits, the Work Opportunity Tax Credit included in the bill before us is a good and useful measure. The Work Opportunity Tax Credit (WOTC) is a successful federal tax credit that encourages employers to hire eight persons belonging to one or more of eight targeted groups of job seekers by reducing employers' federal tax liability. The credit limit is $2,400, and the targeted groups include veterans, ex-felons, high-risk youth, and welfare recipients.

Mr. Speaker, government data show that 7 out of 10 welfare recipients who obtain jobs in the private sector are using WOTC, and that placing workers in private employment is highly cost-effective compared to State-funded public service jobs. Under the WOTC, employers pay the bulk of job costs, so the average cost to the Government is about $900 per job per quarter (with a ceiling of $1,560 annually) while the cost of a State-funded public service job at $7 per hour averages $3,700 per quarter with no ceiling. Thus, WOTC enables States to economize their welfare and training block grants and saves money that can be used for child care and transportation.

And what are the benefits to the less-skilled and disabled workers WOTC is intended to help? Virtually every study of jobs credits by the Government Accountability Office and independent evaluations funded by the Department of Labor have shown that employment and skills of these workers are increased. In fact, in one study, GAO reported that WOTC workers achieve gains in real wages as a result of their jobs.

Mr. Speaker, the WOTC provides a market incentlve to employers to hire and train less-skilled and disabled workers. To continue this human capital investment in workers who might otherwise be left out of the job market--some 20 million high school dropouts, less-skilled high school graduates, single parents on welfare, disabled workers, and returning combat veterans--we need to extend the WOTC. By extending the WOTC, many more employers, especially small businesses, will have an incentive to look for and offer jobs to people who at first glance may not appear to be good job prospects.

Mr. Speaker, the job site is the place where the most effective learning occurs for a young worker or slow-starter. Because the growth of the nation's labor force is slowing, future economic growth will depend on raising productivity by upgrading skills and making every worker count. Extending the authorization for WOTC will advance this goal. That is why the legislation before us, H.R. 976 is worthy of our support.

Finally, Mr. Speaker, let us also remember how important that the minimum wage be increased. Today's minimum wage of $5.15

today is the equivalent of only $4.23 in 1995, which is even lower than the $4.25 minimum wage level before the 1996-97 increase. It is scandalous, Mr. Speaker, that a person can work full-time, 40 hours per week, for 52 weeks, earning the minimum wage and would gross just $10,700, which is $5,888 below the $16,000 needed to lift a family of three out of poverty.

Mr. Speaker, since 2000 the cost of college tuition has risen 57 percent, which is only slightly less than the increase in the cost of gasoline. Health insurance premiums have skyrocketed by 73 percent and inflation is up 13.4 percent. But during that time, the minimum wage has not increased one cent. That is unconscionable and downright un- American.

Mr. Speaker, today more than ever America's hard-working families are feeling squeezed, living paycheck to paycheck. I can tell you Mr. Speaker that record prices at the pump, skyrocketing health care costs and the rising cost of college in the face of falling or flat wages, are squeezing hard-working Texans in my Houston-based Congressional District as they struggle to make ends meet. That is why ensuring that the minimum wage is increased to $7.25 per hour is one of the nation's highest priorities.

For Texas workers the basic cost of living is rising; it is only fair that the pay for hard-working Texans does too. Nearly 890,000 hard- working Texans would directly benefit from raising the federal minimum wage to $7.25 an hour, and 1,774,000 more Texans would likely benefit from the raise.

Raising the minimum wage is vital for Texas families. At $5.15 an hour, a full-time minimum wage worker in Texas brings home $10,712 a year--nearly $6,000 below the poverty level for a family of three. An increase of $2.10 an hour would give these families a much needed additional $4,400 a year to meet critical needs such as rent, health care, food and child care. The increase in the minimum wage before us today will not allow workers to live as large as the typical CEO, who now earns 821 times more than a minimum wage worker, but at least it will allow these low-wage workers to make a little better life for themselves and their families.

Mr. Speaker, 89 percent of Americans favor raising the minimum wage. Americans know that the minimum wage must be increased. They know low- wage workers, many of whom live in your district and mine, badly need the money and have been waiting for it for too long. That is why I urge all members to support H.R. 976, which is inextricably linked to the minimum wage increase.

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 161 and ask for its immediate consideration.

Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Florida (Mr. Lincoln Diaz- Balart). All time yielded during consideration of the rule is for debate purposes only.

I yield myself such time as I may consume.

(Mr. ARCURI asked and was given permission to revise and extend his remarks.)

Mr. Speaker, House Resolution 161 is a rule to provide for consideration of H.R. 976, the Small Business Tax Relief Act, under suspension of rules at any time on the legislative day of Friday, February 16, 2007.

This rule is necessary because under clause 1(a) of rule XV, the Speaker may entertain motions to suspend the rules only on Monday, Tuesday, or Wednesday of each week. In order for suspensions to be considered on other days, the Rules Committee must provide for consideration of these motions.

Mr. Speaker, let me begin by saying how honored I am as a member of the distinguished Rules Committee to manage the rule for consideration of such an important piece of legislation that will provide $1.3 billion of tax relief for our Nation's small business.

This legislation, the Small Business Tax Relief Act, is strongly supported by a host of business organizations, including the U.S. Chamber of Commerce, the NFIB, the National Association of Manufacturers and the National Restaurant Association.

Small businesses are the backbone of this Nation's economy. Every day we as Americans utilize the services of small business owners, whether it is dropping off our dry cleaning, grabbing a bite to eat at a local diner or pizzeria, or waiting in line to pick up a prescription at a local pharmacy. We depend on our small businesses.

It is a constant struggle for most small businesses just to keep the lights on. Utility costs continue to skyrocket, and larger companies continue to expand services, pushing out the mom-and-pop stores in cities and towns across the country. My constituents in Upstate New York have experienced this loss of economic activity firsthand, but that trend has continued.

The Small Business Tax Relief Act would help small businesses grow and hire new workers by extending and expanding tax provisions that encourage investment in new equipment and promote the hiring of disadvantaged workers, and it does so in a fiscally responsible way that meets the pay-as-you-go requirements. Small business owners have to balance the books and stay on budget each month. It is only fitting that we do as well.

Specifically, the bill would help small businesses invest in new equipment by extending and expanding expensing options for 1 year and increase both the amount small businesses can deduct from their taxes and the number of small businesses that can take these deductions.

The bill would extend the work opportunity tax credit, which provides incentives to employers to hire individuals that frequently experience barriers to work for 1 year, and expand it to cover disabled veterans. In other words, it helps those who need jobs by giving employers tax credits for creating jobs.

It would enhance the current tip credit for small businesses by maintaining the current tip credit that small businesses take for the Social Security taxes they pay on their employees' tips, instead of allowing it to drop with the long-overdue increase in the minimum wage this legislation will help achieve.

The bill also contains a provision that would simplify tax-filing requirements for businesses owned jointly by a husband and wife, providing much-needed relief for the many small firms throughout this country.

Right now, there is a glitch in the Social Security tax law which only allows one spouse, most often the husband, to get credit for paying into Social Security. This leaves women who work as equal partners in an unfair situation. The Small Business Tax Relief Act fixes this glaring inequality by ensuring that both partners, equal members of the team, receive their justly deserved entitlement benefits.

Moreover, this legislation does not only help small businesses. It is a win-win, because passage of the Small Business Tax Relief Act is also a critical step in finalizing an increase in the Federal minimum wage for 13 million hardworking Americans.

I made a promise to my constituents that I would go to Washington to fight for a long-overdue increase in the Federal minimum wage. Passage of this measure takes us one step closer to fulfilling that promise.

I want to be clear. I support a stand-alone increase in the minimum wage, like the legislation we passed a few weeks ago with overwhelming bipartisan support. However, 10 years is too long for any hardworking Americans to wait for a wage increase. Let's not force them to wait any longer. The time to act is now.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 2 minutes to the gentlewoman from Illinois (Ms. Bean).

Mr. Speaker, I yield 2 minutes to my good friend, the distinguished gentleman from Florida (Mr. Mahoney).

Mr. Speaker, I yield 2 minutes to the gentleman from Indiana (Mr. Ellsworth).

Mr. Speaker, I yield 2 minutes to my friend from North Carolina (Mr. Shuler).

Mr. Speaker, I yield 2 minutes to the gentleman from Utah (Mr. Matheson).

Mr. Speaker, I yield 2 minutes to the hardworking gentleman from Indiana (Mr. Donnelly).

Mr. Speaker, I yield 3 minutes to my colleague from New York (Ms. Velazquez), the chairwoman of the Committee on Small Business.

(Ms. VELAZQUEZ asked and was given permission to revise and extend her remarks.)

Mr. Speaker, I yield 2 minutes to the gentlewoman from Texas (Ms. Jackson-Lee).

Mr. Speaker, I first of all would like to thank my fellow New Yorker and the dean of our delegation, Chairman Rangel, for his very hard work in bringing this very important bipartisan bill to the floor. I think it shows the depth of his knowledge and understanding of the issues, and I think it is very critical that we address this bill today.

Mr. Speaker, $1.3 billion in tax relief for our small business owners is the kind of sensible, responsible tax relief I am proud to support. Let's help small businesses do what they do best, and that is create jobs and strengthen our economy.

During the debate at the Rules hearing, some of my colleagues were asking the question why we had to move so quickly on this bill, why we couldn't wait until Congress came back in session.

I couldn't help but think of the old adage, why put off until tomorrow what you can do today. People who earn $5.15 who want the minimum wage raised have been waiting for 10 years. People in small business who pay more than they need to want tax breaks. It is the sensible thing to do, and it is the sensible thing to do right now.

As I said earlier, this is a win-win scenario, because passage of this bipartisan fiscally responsible legislation will also clear the way for a much-needed and well-deserved increase in the minimum wage. America's workers have been waiting far too long for a pay raise. Let's not make them wait any longer.

I urge a ``yes'' vote on this rule and on the previous question, because our small business owners need some relief and American workers deserve a raise.

The material previously referred to by Mr. Lincoln Diaz-Balart of Florida is as follows:

Amendment to H. Res. 161 Offered by Rep. Lincoln Diaz-Balart of Florida

On page 1, line 6, strike the period and insert ``, and the

bill (H.R. 60) to amend the Internal Revenue Code of 1986 to

make permanent the deduction of State and local general sales

taxes.''.

Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.

Mr. Speaker, I would like to thank my friend from New York for the time, and I yield myself such time as I may consume.

Mr. Speaker, House Resolution 161 provides that it will be in order at any time on the legislative day of today to consider H.R. 976, the Small Business Tax Relief Act of 2007, under a suspension of the rules.

The passage of these tax cuts for small businesses across the country is very important. Small business, Mr. Speaker, is the engine that drives our economy. Small businesses employ over half of all private- sector workers and pay approximately 45 percent of all United States private payroll.

Over the last decade, small businesses have generated 60 to 80 percent of net new jobs each year. Hispanic small businesses now number over 2 million, Mr. Speaker, and their number has been growing at three times the average of non-Hispanic businesses.

But we must not take the extraordinary performance of small businesses for granted. They still face considerable hurdles, so it is appropriate that steps be taken to ensure that small businesses are able to continue to grow and employ more and more Americans.

The Small Business Tax Relief Act will provide extraordinary savings to small businesses in the United States through targeted tax cuts. The bill increases the amount that small businesses will be able to deduct for equipment purchases and extends the deduction to the year 2010. It also extends the work opportunities tax credit for another year and expands three categories of the eligible workers to encourage employers to hire disabled veterans, high-risk youth, and individuals with disabilities.

Under this legislation, Mr. Speaker, businesses will be able to use their FICA tax tip credit against their regular and AMT liability, saving small businesses over $500 million over 10 years.

The Small Business Tax Relief Act also allows spouses who operate a business together to file as a sole proprietorship, without penalty. It allows both spouses to claim Medicare and Social Security taxes. This is an important piece of legislation, Mr. Speaker. It will help our small businesses continue their admirable growth and job creation.

I would like to commend the chairman of the Ways and Means Committee, Mr. Rangel, and the ranking member, Mr. McCrery, and all of those who, in a bipartisan manner, have worked to quickly bring this important bill to the floor for debate.

I look forward to the debate on H.R. 976. However, Mr. Speaker, we could have done more. On Wednesday, at the hearing of the Rules Committee and the markup of this rule, Mr. Sessions, my dear colleague from Texas, the gentleman from Texas, offered an amendment to the rule that would have allowed us to consider H.R. 60 under suspension of the rules today.

H.R. 60, authored by our colleague, Mr. Baird, a Democrat, would make the local and State sales tax deduction permanent. This sales tax deduction is set to expire at the end of this year. Without passage of this bipartisan legislation to extend the deduction, millions of individuals and States without an income tax, such as Texas, Washington, Nevada, Tennessee, South Dakota, Wyoming and Florida, will face an unnecessary and unfortunate tax increase. However, the majority in the Committee on Rules voted against allowing us to debate and pass this widely supported bipartisan piece of legislation.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, at this time, I yield 4 minutes to my distinguished colleague from Florida, who has worked so hard to make the sales tax a deductible and who is obviously extremely concerned about the fact that we cannot vote on it today, Ms. Brown-Waite.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I have the pleasure of yielding 5 minutes to my colleague, who, in the Rules Committee, made the motion for us to debate today the sales tax deduction to allow us to consider legislation by Mr. Baird, a Democrat. Unfortunately, the majority of the Rules Committee did not allow that motion to go forward, voted it down, that amendment.

But it is my pleasure to recognize for 5 minutes not only a distinguished member of the Rules Committee, but a great leader in this House whom I am honored to serve with, Mr. Sessions.

Mr. Speaker, I would like to thank everybody who participated in this debate and all of those who worked so hard to bring forth this legislation in a bipartisan fashion.

I will be asking for a ``no'' vote, Mr. Speaker, on the previous question, so that we can amend this rule and allow the House to consider H.R. 60, a bill by our colleague, Mr. Baird, under suspension of the rules.

As I stated before, Mr. Speaker, Congress passed last year the Tax Relief and Health Care Act of 2006, which included State and local sales tax deductions.

Over the last 2 years, the sales tax deduction has resulted in billions of dollars in tax savings to millions of hardworking taxpayers throughout the United States. These tax savings have meant a boost to the economy of seven important States affected by the deduction: Washington, Texas, Florida, Nevada, Tennessee, South Dakota and Wyoming. However, that important tax deduction will expire at the end of this year. Failure to extend the sales tax deduction will mean that our constituents may face an unfortunate tax increase.

By defeating the previous question, we will give Members the ability to vote on H.R. 60. Without passage of this important legislation that extends the sales tax deduction, millions in States without an income tax, Washington, Texas, Florida, Nevada, Tennessee, South Dakota and Wyoming, will face a tax increase.

Mr. Speaker, I ask unanimous consent to insert the text of the amendment and extraneous materials immediately prior to the vote on the previous question.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I demand a recorded vote.

Mr. Speaker, I appreciate the gentleman from the Rules Committee from Miami, Florida (Mr. Lincoln Diaz-Balart).

Mr. Speaker, on Wednesday evening at the Rules Committee, we met to bypass regular order once again, which seems to be a new regular order for the 10th time under the new Democrat leadership. I brought forth the ability to discuss a small tax item with the germaneness to the tax bill that we are debating here today. I wish that we were considering this rule under regular order that the Democrat candidates, out on the campaign trails, promised voters this last election cycle. I believe that the tax bill will end up enjoying bipartisan support on the House floor today. So since we are already bypassing regular order to consider this legislation, I offered an amendment to bring another tax bill to the floor that would enjoy also broad bipartisan support, making the State and local sales tax deduction permanent for residents of non-income-tax States.

This issue is a matter of fairness. It is quite simple in its honesty. It enjoys support from a huge number of Democrats and Republicans and would allow taxpayers a deduction for sales tax in lieu of income tax for taxpayers in States that do not have a State income tax.

Nine States currently have no income tax: Texas, Florida, Washington, South Dakota, Tennessee, Nevada, Wyoming, New Hampshire, and Alaska. The 1986 Tax Reform Act eliminated the sales tax deduction from the Federal Tax Code but maintained the State income tax deduction. That change has a disproportionate impact on States that do not use a State income tax.

A 2-year sales tax deductibility provision was signed into law as part of the American Jobs Creation Act. This law restored fairness to those in States with no State income tax for the first time in nearly 20 years and kept an estimated $3.6 billion in the hands of taxpayers that choose to deduct State sales tax in all nine affected States. This critical tax relief is said to expire at the end of this year and must be extended, or my constituents in Texas and taxpayers from eight other States will see a massive, unavoidable tax increase.

H.R. 60 would permanently restore fairness to taxpayers in the nine affected States. I am disappointed that the amendments did not include this one and it was defeated by the Rules Committee Democrats along a party-line vote.

While I support the legislation for continued tax fairness for small businesses that we are about to consider, I am sorry that we were not allowed to have this amendment on the House floor today as a golden opportunity for taxpayers to finally find this tax disparity and this loophole closed for good.

I appreciate the gentleman's extending the time to me. He also is from the State of Florida, which is hugely affected by this unwelcomed tax.

I thank the gentleman from New York for yielding.

Mr. Speaker, I rise today in support of H.R. 976, the Small Business Tax Relief Act.

America's small and medium businesses are our Nation's stimulative engine, employing roughly 80 percent of our domestic workforce. Too often, our Tax Code is weighted in support of our large lobbying interests, without consideration of those small businesses who are the backbone of our communities and have vital economic impact there.

I am proud to join Chairwoman Velazquez, Chairman Rangel and other colleagues in support of the Small Business Tax Relief Act, which provides needed tax relief to our Nation's small businesses in support of their growth and profitability. In particular, the Small Business Tax Relief Act will provide incentives to businesses in my district and around our country to continue to invest in the infrastructure important to their growth.

In addition to extending deductions in plant material investments, this bill also extends the Work Opportunity Tax Credit. This credit has been successful in helping people move from welfare to work and gain on-the-job experience by incentivizing employers to hire disadvantaged workers, including returning veterans and the disabled.

As Chair of the Small Business Tax and Finance Subcommittee, I will continue to champion initiatives that help our Nation's small businesses prosper.

I urge my colleagues to support the Small Business Tax Relief Act as part of that effort. As our small businesses grow stronger, so do the communities in which they reside and the workers they employ.