Mr. Speaker, last week, the President signed into law one of the largest tax breaks ever for the wealthiest Americans. He did so at a time when unemployment is on the rise. Since President Bush took office, approximately 2 million jobs…
Mr. Speaker, last week, the President signed into law one of the largest tax breaks ever for the wealthiest Americans. He did so at a time when unemployment is on the rise. Since President Bush took office, approximately 2 million jobs have been lost, and the Hispanic community has been hit the hardest with a rising unemployment rate of 7.5 percent compared to 6 percent for the general population.
People want to work, but the jobs are simply not there. Instead of pursuing policies to stimulate the economy and create jobs, the administration and the congressional majority have pushed through a plan that includes a tax cut that does nothing to address any of these financial problems and worries that are facing millions in this country.
While making false promises to create jobs and stimulate our economy, these tax cuts are targeted primarily at large corporations and the wealthiest of Americans. Those that are earning $1 million a year will see a tax cut of over $100,000. Half of all Latinos in this country report having an annual household income of under $30,000. Under the Bush tax plan, some of these wealthy individuals will see a tax break that equals three times what these families make a year.
We understand that people who pay taxes deserve a break, but we have gone from record surpluses to skyrocketing deficits. We cannot meet our obligations to support critical health and education programs. And a tax cut this size does not make any sense whatsoever. We have chosen also not to pay for the war. We have chosen to put it on the backs of not only those that are our young people out there defending our country but on the backs of their children.
We now also find that in addition to favoring the wealthiest of this country, the administration's tax plan excludes those who need the assistance the most, low- and moderate-income families. Families making between $10,500 and $26,625 a year are now, under law, excluded from collecting the $400 child tax credit. Those who could benefit the most from the tax credit will in fact get nothing.
Mr. Speaker, I have difficulty comprehending the philosophy that brought this about, trying to exclude the ones at the bottom of the totem pole. While others enjoy a tax cut, these individuals who make under $26,625 will not. The median income in my district is $22,000 so more than half of my constituency will not see a cent. For Hispanic families, this means that roughly 1.6 million, or 30 percent, of all Latino families who otherwise would have been eligible for the tax break are now no longer going to qualify. The child tax credit has long been crucial for Hispanic families, working families, who are deeply affected by the tax burden.
While 85 percent of Latino males are in the workforce, the largest percentage for any ethnic group in the country, many Hispanics work in seasonal, low-wage jobs, and the majority of Hispanics do not participate in the employer-sponsored retirement plans, nor do they own stock. How can the administration argue that this plan helps working men and women when working families are the ones that are left out?
The Latino community may not be one of great wealth, but we are the future of the economy and the workforce, and the Latino community deserves the respect of our leaders and deserves a fair share of any proposed tax relief plan, not just the crumbs left over from the Nation's wealthiest few. What we can do is, we will fight to fix the wrongs of this tax bill not only for Hispanic families, but for all Americans.
I am pleased to be here tonight on behalf of the Hispanic Congressional Caucus, and I am pleased to have members of the Congressional Black Caucus with me.
Mr. Speaker, I yield to the gentleman from Illinois (Mr. Davis) and I thank the gentleman and the Congressional Black Caucus for also participating tonight and discussing some issues that confront our community.
Mr. Speaker, the gentleman has done a beautiful job of explaining our situation that we find ourselves in, and I want to share with Members that one of the things that we also understand in this country is that our infrastructure is hurting. One of the good ways of stimulating the economy, and we know from the last time we passed the transportation bill that there are $300 billion to $600 billion that are still needed for the dams that are almost 60 years old. Our bridges are in jeopardy, our infrastructure in this country where we could not only create jobs, but we could also invest in the next generation of kids instead of handing to them the debt that we are creating, but also handing them the infrastructure that is decaying.
We had a bill that would have allowed us to invest in schools. Our schools are 40-50 years old, built prior to the microwave, and we know that schools need more outlets for computers. There is a need to do that, and yet we have chosen not to do that. There is a real need for us to look at how we could have turned the economy around by creating jobs.
I had today a lot of contractors that were lobbying up here about the difficulties that they are having with construction jobs. Here was a great opportunity to invest. Not to mention in homeland security, there is a need where our Federal buildings, our State buildings, there is a need to look at them from a national defense perspective, to build the things that are needed to make sure that they are more secure. They need the resources, and we have not allocated the resources in homeland security which could create jobs. We need to ensure that our bases throughout the country have adequate construction which allows them to be secure.
The gentleman also mentioned the importance of leaving no child behind. As the gentleman well knows, we have already left children behind. The bill that the President promised, he promised this country that his priority is education, is $9 billion behind his funding. There is a real need to concentrate on those programs which would have allowed that money to be turned around.
As we cut taxes on the Federal level, I know back home in Texas they are cutting taxes, too. Yet the local communities, the local school boards, the local counties are having to look at how are they going to be paying for securing our cities, what are they going to be doing to secure our Nation.
I wanted to thank the gentleman for making those comments. We have misprioritized the tax cut, and I know this administration, their whole first year was spent on the priority of a tax cut based on the false premise of a supposed surplus that was going to continue for the next unforeseeable future. We had it under Clinton, but under this administration right after they came, we started downhill, and it has continued.
It has continued. Now they come back and now they have another tax cut, and now we are hearing that they might even come back next year for another tax cut.
I want to thank the gentleman from Illinois (Mr. Davis) for joining me here tonight. We have also been joined by our leader. I know she has been working all day and just has come from a major meeting that she was attending tonight. I do want to thank her for joining us tonight. We have been talking a little bit about our concerns with the tax cuts.
Mr. Speaker, I yield to the gentlewoman from California.
Mr. Speaker, I want to personally thank the gentlewoman from California for her leadership, and I want to personally share with all Americans throughout this country that she has been a breath of fresh air to all of us. I want to personally thank her because she indicated we wanted to make sure that if we were critical about anything, we wanted to make sure we had an alternative and we have had an alternative every time. I want to thank her personally for the hard work that she has done.
That is right. Not only good alternatives, but alternatives that work and that are responsible. So I thank the gentlewoman for her leadership and coming out here tonight to join us.
I want to just share with all Americans that our leader, the gentlewoman from California (Ms. Pelosi), has been right there for us. I want to appeal to everyone to listen to the debate that is going on on the tax bill, because the debate on the tax is a serious situation. Whatever occurs on the tax bill determines what occurs on everything else. The tax bill is about the budget. The budget determines our priorities. So when this administration first came here in their first year, one of their first priorities and their main priority was the tax cut.
So, as we talk about education, as we talk about health care, as we talk about the veterans, the reality is that the number one priority was the tax cut. Everything else is secondary. So when we had, that first year, that $1.3 trillion tax cut based on anticipated surpluses, then that started the downturn. That did not create any jobs; in fact, it was just the opposite.
This year, the same. They came at it with another tax cut. It seemed to be the only approach to any problem that exists out there is a tax cut.
As we well know, this particular tax cut is also an irresponsible tax cut because it is coming at a time when we are still at war, we still have not been able to reach out and seek out bin Laden, we still have a serious situation in Afghanistan, we have a critical situation in Iraq with our soldiers out there, and we still have a situation also that is serious in North Korea, as well as other areas.
So, as we begin to dialogue, instead of solving problems, and I feel very strongly that I get elected to come up here to solve problems, not create problems, and it seems like there was a sincere effort at not dealing with the problems that confront us, but looking at the situation and shifting away from those situations.
For example, I still feel very strongly the number one and two issues in this country are education and health care. Now, because of this administration, it is the economy. But those two issues have not been resolved. We still have a problem with education.
Although the administration went around campaigning for the presidency
on education, he is going to have to come back and campaign again. I am wondering what he is going to be saying, since the same bill that he signed is $9 billion behind what he indicated he was willing to shake hands on and assure that no child would be left behind. Well, it is $9 billion behind and it has left a lot of kids behind. Yet their priority seems to be the tax cut, and after that we find ourselves in debt and in some serious problems.
Let me share with you as I talk about the debt that I have also received correspondence from Raul Yzaguirre, Executive Director and CEO for the National Council of La Raza. In his report I want to read a couple of items on there, if I can. It is in small print, so I am going to have to put my glasses on.
But in his letter, one of the things that Raul Yzaguirre of the National Council of La Raza mentions is that regarding the President's signature on H.R. 2, the Jobs and Growth Tax Relief Reconciliation Act of 2003, a $350 billion tax cut package, while the administration was touting this measure as an economic stimulus that would create jobs and benefit a majority of working families, House and Senate tax writers were making room for large cuts for wealthy investors.
The reality is that it is for the most wealthy of this country, instead of earmarking it for small business. Because even if you are a strong conservative and believe that the business community needs the tax cut, then you would zero in on small businesses. You would zero in on those small businesses that really create and help in the creation of jobs. Yet the reality is that the majority of those tax cuts did not go for the small businesses either.
Especially let me indicate that he also goes on to say that at the 11th hour, congressional negotiators excluded families earning between $10,500 and $26,625 for claiming the child tax credit increases. So we continue to have these difficulties.
I am glad that I am joined here tonight by a fellow colleague who works closely together on health care and has been a leader on health care, but I know that he also has some concerns on our tax cut.
I thank the gentleman for joining me, and I yield to the gentleman from New Jersey (Mr. Pallone).
That is what I find very difficult to comprehend, is if you really want to stimulate the economy, then you would put it in the hands of those individuals that would, as soon as they get it, spend it. There is no doubt that these are the type of individuals that would go out there and buy a pair of shoes that they need, buy additional groceries they might need, that would be getting additional items for the house.
These are not people that are going to receive $400 and, like the wealthiest and others who are going to receive a lot more, that will just decide to keep it there and not spend it.
So we question this, and I think all the economists do, and I was even looking, prior to this, even Greenspan talked about the fact that he did not think it was a good idea to do this. Yet the administration chose to go and do that anyway.
So I think our economy is in deep trouble, and I do not foresee it getting any better. In fact, I was trying to figure out why would they be doing that. The only thing I can figure out, at a time when we are at war, that they are really basically wanting to put us on a real spot in terms of some of the programs, and it does put us in trouble funding the educational programs that are needed, the health care needs of our constituencies and our seniors, the needs in terms of our Medicare and Social Security recipients. Because I know that there is a real push there to try to privatize Social Security, and I know there are investment bankers that are looking to get their hands into that.
So that really concerns me, that there might be other motives involved in the process.
They knew full well, because they had initially submitted the over-$700 billion tax cut, and then they settled on that other.
But what concerns me is that in the process of having this so-called oversight, I am wondering how many other oversights we might have that we are still not aware of.
I know that there were a lot of special interests out here walking the halls and looking at loopholes they were looking for in terms of their own special interests, so I am just concerned about what other oversights we might have for some of those special interests that were roaming the halls during that time that were looking at that tax cut.
It really bothers me, and also in a way it kind of irritates me to think that someone would stoop to that low a level not to consider these individuals that are hardworking Americans that are out there making $26,000 or less, but still hardworking. So would their kids not qualify for that child credit while someone else's would? It is incomprehensible.
In my district, it is even more than half. My median income is about $22,000, so more than half of my constituency is not going to benefit from that. Yet we see the data in terms of those that are making $1 million, how much of the hundreds of thousands they are going to be benefiting from, not to mention in terms of their investments.
So this is no way in terms of stimulating the economy, and this is no way in terms of being responsible. At a time when we are at war, we ought to be paying for the war at the present time. We are not. Not only are we asking our young people to go fight the war and go defend this country, and they are ready to do that, but we are asking them to pay for it and getting their kids to pay for the debt in the future. That is not right, and that is not American.
So we need to continue to talk about these issues. I know that the gentleman works real hard on health care, and I know the gentleman wants to find a solution to health care. The gentleman is the type of elected official and public servant that comes out here to seek solutions to the problems that confront us.
Exactly. And I think that as we look at especially next year, which is an election year, I can already see the administration going out there. I would like to see what he is going to be saying, responding to the fact that he promised our seniors a prescription drug coverage, and we still have not seen one that is a responsive approach.
I would like to hear what he is going to be saying when he talks about the quality of care in this country, when we have one of the best care systems in the world; and yet it is not affordable, and it is not accessible. I can already see them blaming the debt on the economy, when in reality they have created the economy and they have created it with irresponsible tax cuts.
The reality was that their first priority was the tax cut their first year, and this year, and possibly next year. Their priority is the tax cut. After the tax cut and after the budget is gone, there is no need to talk about anything else, because that is the priority. It was not about solving the problems on education, solving the problems of our seniors in Medicare and the problems we were encountering there, solving the difficulties of prescription drug coverage; but it was all about tax cuts, which tells me that their priorities are not in terms of solving problems out there, but to basically look in terms of how they can benefit those that provided for their campaigns, the wealthiest of this country.
Mr. Speaker, I thank the gentleman for coming out here tonight. I want to thank the gentleman from New Jersey (Mr. Pallone) for being here with me tonight. I want to also thank the leader for being here tonight.
Let me share a couple of statistics that I have. One of the things that I would like to share with Members is just some data out there. The total job loss since President Bush took office has risen to a staggering 2.5 million private jobs, while cutting taxes for the rich and not extending the unemployment insurance.
The median Hispanic household, I will share that, being chairman of the Congressional Hispanic Caucus, will receive about $30 as a result of the Bush tax cut, $30, in comparison to the others.
So we have some real startling statistics that basically reflect that the reality is that this tax cut is a real irresponsible tax cut when there is no money there, when we are not paying down our debt. It just does not make any sense for us to be doing that.
I also wanted to share that at the same time that we are deciding to make the tax cut we are not being responsible in meeting the needs of our veterans, meeting the needs of our seniors in prescription drug coverage, or meeting the needs of Medicare. I am just going to wait and see what this President says when he is coming up for reelection next year.
Today, and I want to share with the Members, because we had an opportunity to hear some testimony in our Committee on Veterans Affairs from Dr. Wilensky, who did a report. She assured, or indicated, that the reality was that the present situation ``is not acceptable,'' referring to our veterans programs.
One of the realities with our veterans programs is that depending on where they live throughout this country, they might not have access to the quality care that is available in other areas of the country, so we have what we call disproportionate forms of care in the VA. There is a real need for us to provide additional resources.
This particular report talked about the fact that the VA had not prioritized and was not meeting the needs of our veterans, because at this particular time our veterans, those World War II veterans and Korean War veterans and our Vietnam veterans, are reaching that age where they need us. The demographics show that there is a need for us to come up to the plate and be able to provide those resources. Instead of doing that, we are just doing the opposite, not coming up to the plate, cutting taxes instead of putting those resources with our veterans where they need it the most.
I also want to share that we are also beginning to cut our nursing home care for veterans and put caps on that. We continue to have problems with homeless veterans, which is an atrocious situation that we ought to be working to solve. Instead of the tax cuts, we ought to be considering that. In fact, instead of providing the $2 billion for health care for the Iraqi people, we ought to be looking at those $2 billion for our veterans services.
When veterans are out there fighting and defending our country, a lot of them will suffer from post-traumatic stress disorders. Even New Yorkers and the people in the Pentagon and throughout this country after the terrorist attack, we really need to look at resources in the area of health to help these people cope with post-traumatic stress disorders.
I would attest that especially for the people at the Pentagon and the people in New York, there is a real need for us to reach out to them. I know that a lot of them might be going through nightmares and those characteristics of what later on might be defined as post-traumatic stress disorder. So we cannot take that lightly.
Events such as this, and our soldiers as they encounter and get engaged in Iraq and Afghanistan and elsewhere throughout this world, they will suffer from those engagements in a lot of different ways. We have to be there for them, and we have not done that.
When it comes to homeland defense, we could easily have put some resources there that would have created and helped stimulate the economy, because our States are hurting. We need money in homeland defense. Our first defense is going to be those local firemen out there throughout this country, those local policemen throughout this country, those local health care providers throughout this country. I think it is important that we provide them with the access resources they need.
Homeland defense also has needs, especially the Coast Guard. We have been negligent in not being responsive with our Coast Guard. They need additional resources. The INS and the Customs people also.
One of the things terrorists would want to do is not only instill fear in us, but also create a problem in our economy. We have to create a balance between security and trade. I represent the Mexican border, and we have to make sure that we continue to have trade. That becomes important.