Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 966 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Massachusetts…
Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 966 and ask for its immediate consideration.
Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Massachusetts (Mr. McGovern), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only.
(Mr. HASTINGS of Washington asked and was given permission to revise and extend his remarks.)
Mr. Speaker, House Resolution 966 is a closed rule providing for consideration of H.R. 5970. The rule provides 1 hour of general debate on H.R. 5970 in the House equally divided and controlled by the chairman and ranking minority member of the Committee on Ways and Means.
It also waives all points of order against the consideration of H.R. 5970 and provides one motion to recommit H.R. 5970.
House Resolution 966 also provides for the consideration of H.R. 4 under a closed rule. It provides 1 hour of general debate on H.R. 4 in the House equally divided among and controlled by the chairman and ranking minority member of the Committee on Ways and Means and the chairman and ranking minority member of the Committee on Education and the Workforce.
The rule waives all points of order against consideration of H.R. 4, and provides one motion to recommit.
This rule allows for consideration, Mr. Speaker, of two very important measures. The first deals with protecting the pensions of American workers. Mr. Speaker, the recent financial troubles and pension terminations of several large companies underscore the need for fundamental pension reform. The underlying bill is an agreement struck between the House and the Senate conferees on H.R. 2830, the Pension Security and Transparency Act.
The underlying bill will ensure that millions of hard-working Americans who rely on single and multi-employer pension benefits can continue to count on them. I would like to congratulate the majority leader, Mr. Boehner for his tireless efforts in bringing this conference report before the House today.
Mr. Boehner has worked on legislation to better protect the pension of workers for over 5 years now, and I commend him for his hard work on this issue. It is vital, Mr. Speaker, that we modernize current pension laws by strengthening worker's retirement security and reduce----
I yield to the gentleman from North Dakota.
Mr. Speaker, reclaiming my time, I would just tell my friend from North Dakota that that was the rule that we worked on. But there are three provisions. It was for the conference report, it was for the minimum wage bill, and it was for another bill. We are taking up the second two of those bills under that rule.
In other words, the first portion that was provided in the rule, while it is provided, is not applicable to what we are taking up tonight.
Mr. Speaker, reclaiming my time. Again, there was a conference report, my understanding was agreed by all but it was not signed. The gentleman is correct on that.
The underlying bill that we are taking up is that bill that was agreed by all parties on a bipartisan, bicameral basis. That is what this rule provides for.
Mr. Speaker, it is vital that we modernize the current pension laws by strengthening the workers' retirement and reducing the prospect of future multi-billion dollar tax bailouts.
In recent years, we have seen participants mistakenly believe that their pension plans are well funded only to be surprised when their plan is abruptly terminated. This legislation is intended to end that.
The underlying bill encourages workers to increase their personal savings by permanently extending several provisions to enhance pension participation and retirement savings that are set to expire in 2010.
Mr. Speaker, without a comprehensive fix to our outdated Federal pension laws, more companies will default on their work and pension plans, and more will stop pension plans for workers entirely. Now is the time for Congress to act on this important legislation.
The other measure, Mr. Speaker, that this rule will allow for will continue our ongoing commitment to American workers and taxpayers by providing economic security, enacting permanent estate tax relief, and extending numerous tax provisions that have passed the House in the past with bipartisan support.
This bill includes extending the sales tax deductibility, research and development credits and higher education incentives.
In 2001, Congress enacted, in a bipartisan fashion, to gradually phase out the death tax and fully eliminate it by 2010. However, if Congress does not extend this relief, in 2011, small business owners and family farmers will once again be assessed the full death tax up to a maximum 2001 rate of 55 percent.
The House of Representatives has acted twice in this the 109th Congress to enact a permanent solution to this form of double taxation, but unfortunately, our efforts have been blocked by the other body. Today, the House of Representatives will once again act to help families suffering the loss of a loved one from having to worry about losing the family farm or business in order to pay the Internal Revenue Service.
The expectation this time is that the other body will take up the bill and pass the bill. This legislation will provide estate and gift tax relief to America's small business owners and family farmers. Specifically, the bill would increase the exemption amount and index it for inflation, and would lower the amount of taxation on estates.
Mr. Speaker, last year, I, along with 271 other Members of Congress, supported a measure that would permanently and fully eliminate the death tax. While permanent elimination of this tax is what I will continue to work with my colleagues on, this measure is a step, in my view, in the right direction.
With permanent tax relief from this tax, many farmers and business owners will have a sense of security that they need to plan for the financial future of their business or their farm for their family.
Another important provision in the underlying bill is an extension of the State and local sales tax deduction from the Federal income tax. My State of Washington is one of nine States that do not have a State income tax.
For nearly 20 years, residents of these States have been unfairly disadvantaged by the IRS code which allows for Federal tax deductions for State income taxes, but not States that have sales tax deductions.
In 2004, my colleagues on both sides of the aisle and I fought to restore fairness to residents of States without an income tax by restoring the sales and local sales tax deduction.
I would like to thank the chairman of the Ways and Means Committee, Mr. Thomas, for his efforts to include a State and local sales tax extension, which allow every taxpayer that chooses to itemize deductions in the States with no income tax the opportunity to continue deducting sales tax from his or her Federal tax bill.
By passing the underlying legislation, we will be restoring fairness for those who live, work, and raise families in those States. This will allow workers in Washington and others to keep more of their own money to spend and invest as they see fit.
While continuing to work to fight to make the State and local sales tax deduction permanent, this extension for 2 years will provide billions of dollars of relief to taxpayers in Washington and those other States, and I think it is a step in the right direction.
I am also pleased that this legislation creates a new 60 percent deduction for qualified timber capital gains through 2008. In my State of Washington, there are 8\1/2\ million acres of privately owned forests, and the forest products industry is the State's largest manufacturing sector. However, the current Tax Code puts our timber industry at a distinct disadvantage against international competition by subjecting corporate timber and forest product industries to a significantly higher income tax than their overseas competitors. Included in H.R. 5970 is a provision that lowers the timber tax and supports an industry that provides good jobs in many rural communities while strengthening its international competitiveness.
Another key provision of this bill extends the research and experimentation tax credit for 2 years. Technological innovation is vital to America's continued economic prosperity and research, and research and development is the lifeblood of innovation. However, research and development activities are expensive, and businesses generally cannot capture all of the returns on their investments. The Federal Government must continue to encourage private businesses to innovate by extending and enhancing tax incentives. The underlying bill does just that.
The underlying bill also extends several tax incentives to improve the affordability of higher education, including tax deferred education savings accounts and tax credits for post-secondary education. Specifically, it allows all taxpayers to deduct up to $4,000 of higher education expenses, which will help more students go to college.
Mr. Speaker, with about one month left before school starts, teachers will begin preparing and purchasing classroom supplies. Unless Congress acts, an important above-the-line tax deduction that expired this year will not be available to teachers when they go back to school. This bill will help teachers contain the costs of out-of-pocket expenses like books, supplies, and computer equipment while allowing them to deduct $250 from their Federal tax bill.
In an effort to encourage savings and stable retirement security, the underlying bill allows lower-income families that contribute to an individual retirement account and pension plans to continue receiving a Federal match in the form of an income tax credit for the first $2,000 of annual contributions. This encourages families to save and plan for their own retirement.
There is no question that allowing families to keep more of their hard-earned money spurs economic growth. Earlier this month, revised budget estimates projected that a recent surge in tax revenue will help shrink the Federal deficit more than previously expected. Not acting would raise taxes on millions of workers and families. We must continue the policy to grow our economy and keep our tax bills from rising.
The House of Representatives has previously passed these tax provisions on a bipartisan basis, and last December the House of Representatives passed H.R. 2830, the Pension Protection Act, by a bipartisan vote of 294-132. I would encourage my colleagues to support House Resolution 966 and both underlying bills.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I am pleased to yield 2 minutes to the Republican conference Chair, the gentlewoman from Ohio (Ms. Pryce).
Mr. Speaker, I am pleased to yield 2 minutes to the gentlewoman from West Virginia (Mrs. Capito), my colleague on the Rules Committee.
Mr. Speaker, I am pleased to yield 3 minutes to the gentleman from Florida (Mr. Keller).
Mr. Speaker, I am pleased to yield 2 minutes to my colleague from Washington (Mr. Reichert).
Mr. Speaker, how much time remains on both sides?
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, how much time remains on both sides?
I continue to reserve my time, Mr. Speaker.
Mr. Speaker, before I yield time to my friend from Tennessee, I would remind my friend from Oregon that the minimum wage in Washington State is, if not the highest, is the second highest in the country. It is $7.63.
Mr. Speaker, I yield 3 minutes to my friend from Tennessee (Mr. Wamp).
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, this rule provides for consideration of two very important bills. One bill is a pension reform bill that has been worked on for over 5 years on a bipartisan, bicameral basis. It is a very important piece of legislation and it needs to pass. The other bill is a bill that has two very important provisions: tax provisions dealing with the death tax and raising the minimum wage.
And I have to say, Mr. Speaker, I am curious by hearing the debate. I kept hearing on the other side of the aisle their talking about ``just give us an up-or-down vote.'' Well, I think we are sent here by our constituents to do more than vote. We are here to enact legislation. And the expectation, the expectation is that the second dealing with the tax provisions and the minimum wage will pass not only this body, but will pass the other body and become law.
I think that is much, much better service to our constituents rather than just saying give us a vote up or down and knowing that it may not pass both bodies. This will pass both bodies.
Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.
The previous question was ordered.
Mr. Speaker, on that, I demand the yeas and nays.