Mr. Speaker, I yield myself such time as I may consume. I rise in opposition to the motion to instruct, and I thank my friend from Arkansas and others who will enjoin this debate this evening, Mr. Speaker, because it gives us a marvelous…
Mr. Speaker, I yield myself such time as I may consume. I rise in opposition to the motion to instruct, and I thank my friend from Arkansas and others who will enjoin this debate this evening, Mr. Speaker, because it gives us a marvelous opportunity to carefully review all the facts.
It was the second President of the United States, Mr. Speaker, John Adams, who first observed that facts are stubborn things, and perhaps the stirring presentation from my friend from Arkansas is most compelling for what he omitted from his motion to instruct. Mr. Speaker, it is my sad duty to inform this House that the Democrat motion to instruct allows the child credit to drop from $1,000 to $700 after the 2004 election.
Let me repeat that because it is very important that all who join us in this debate, in this presentation tonight, Mr. Speaker, understand clearly what would transpire. The Democrat motion to instruct allows the child credit to drop from $1,000 to $700 after the 2004 election. Now, Mr. Speaker, in the world of commerce, that is known as bait and switch. And as a result, millions of the people who my friend professes to champion, millions of low- and middle-income families, will receive a smaller child tax credit right after the elections.
The House-passed bill, and let us point this out too, Mr. Speaker, because my friend also omitted something that just was passed by this House, H.R. 1308, the All American Tax Relief Act of 2003, our more comprehensive bill, which was not a part of my friend's presentation, passed by this House, ensures that the child credit remains at $1,000 throughout the decade.
Mr. Speaker, there is more, and I will be happy to delineate it, but let me pause, because my friend mentioned the needs of one of his constituents in the Fourth Congressional District of Arkansas. Mr. Speaker, I would hope that for all our low-income constituents who call about this, that we would inform them of four letters, EITC, Earned Income Tax Credits. That exists for people just like the constituent that was mentioned, which opens up economic prosperity and opportunity for those who do not pay a high level of taxes.
And again, understand, so expansive has been our move to reduce taxation on the American people, Mr. Speaker, that I am able to report that a family of four earning close to $40,000 a year now would pay no income taxes. And you see, really, this is the issue, Mr. Speaker. Those of us in the common sense majority say if you pay income taxes, those taxes should be reduced. Our friends on the other side say if you pay any taxes, then income taxes should be reduced.
There is a certain amount of illogic to that, speaking of dogs that will not hunt, Mr. Speaker, but let us take it a step further. What we have done in this House, through adoption of H.R. 1308, is to expand the credit to the very folks they claim to champion, to maintain that credit across the board throughout the decade. And we have gone a step further. In stark contrast to the shop-worn sloganeering of tax cuts for the rich, we have discovered something in America, and let me point to my own city of Phoenix, Arizona.
I represent the Awatukee portion of greater Phoenix. There lives a nurse practitioner making $64,000 a year, and her husband, a school principal, making $64,000 a year; both of them earning that salary. We have expanded the child tax credit, because we do not believe you should put a tax credit on children that rolls back and forth like the old-fashioned slide rule to penalize two-income families who happen to succeed. So let us then accept the premise that if we are not going to punish children at the lower end of the economic scale, certainly we should not punish families who have two-income earners. And sixty-four times two is about $128,000 in today's world, Mr. Speaker, and I would submit that that is not wealthy.
Something else that is important that I would bring to the attention of the House, Mr. Speaker. The Democratic motion to instruct does not eliminate the marriage penalty in the child credit until 2010, and even then it only does so for 1 year. Under the motion to instruct, millions of children will be denied the child credit simply because their parents are married. What we passed in the House benefits middle income families by eliminating this type of abridgement immediately.
The House-passed bill, which a common sense majority moved through this House, does not deny the child credit to military families. Military families, including those who are deployed abroad, are already receiving a refundable child credit and will continue to receive a refundable child credit under the House-passed bill. The Democrat motion to commit would only increase the refundable child credit for some military families by allowing them to take into account tax-free income when they compute their refundable credit.
And the House-passed bill, which moved through, again, with a bipartisan majority, provides more tax relief to military families because it includes $806 million of military tax benefits. We should point out that those provisions have passed the House on numerous occasions. They are awaiting action in the other body. Indeed, Mr. Speaker, while we tend to our affairs here, and I will not characterize what might transpire across this Capitol, I will simply say that a more comprehensive approach, as endorsed by this House, makes more sense for the American people.
I look forward to the other arguments, but, Mr. Speaker, I would have to say that as I hear the litany from the left, it reminds me of that country song, ``That's my story and I'm sticking to it.''
Mr. Speaker, again, facts are stubborn things. Reject the motion to instruct.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
I thank my friend from Georgia for offering the hand of friendship, as he characterizes it, across the aisle. I thought it was interesting that some of his remarks seemed to be insult-laden, but that is his prerogative coming to this floor. I think the American people deserve better. And I would point out to my friends on the left that again the dispute is not about tax relief. It seems that they are almost of two minds. On one hand, if tax relief is limited to some few tightly targeted, they seem to be fine with it. And, of course, we welcome the gentleman's support, Mr. Speaker, on the first tax bill and certainly appreciate that.
I am a little confused as to why he decided not to vote for even a more comprehensive child credit that we offered in H.R. 1308, but let me go back since he offered a specific criticism with reference to members of the Armed Forces. Let me again delineate what we passed. I made no such articulation nor claim about combat soldiers and, of course, Mr. Speaker, our men and women in uniform go into action without the designation Democrat nor Republican, they are Americans; and I made no assertion as to the relative status, the tax-exempt status of combat pay.
Let me, however, articulate for my friend, Mr. Speaker, and all those who join us in this debate tonight exactly what it is we have passed time and again in this House in terms of tax fairness for members of the Armed Forces included in these provisions: capital gains tax relief on home sales; tax-free death gratuity payments; tax-free dependent care assistance for members of the military. Again, I would remind my friends, Mr. Speaker, that these provisions provide $806 million of tax relief to members of the Armed Forces over the upcoming 11 years.
Again, there is something that has been a glaring omission when we come to discussing tax rates for those who do not pay income taxes. Again, Mr. Speaker, I am haunted by the assertion of my friend who sponsors this motion to instruct who speaks of a mother in the Fourth Congressional District of Arkansas, if memory serves, I believe, earning around $15,000 a year. According to the Tax Foundation, if she were a single mother with two children as the head of the household, she would receive a refundable earned income tax credit of $3,823. Her total check under earned income tax credits from Uncle Sam would be $4,273. Tax refunds as a percent of her income upon which she pays no income tax would be 28.5 percent, and the percent of her payroll tax that would be erased through the earned income tax credit, 186 percent. Again, the compelling omission.
We have already reached out to those who do not pay income taxes. We do so again, but my friends on the left find fault that we have enlarged this to include two-earner households because again we do not believe you put a price tag on the heads of children, not only those facing tough times economically but, yes, those who both are working. They likewise, those families, should deserve the child tax credit. We have expanded it, made it constant; and in stark contrast to the Democratic alternative, it remains constant. It does not drop down after the election of 2004. Important points to keep in mind, country music sloganeering notwithstanding.
Vote ``no'' on this motion to instruct.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I do welcome my friend from Louisiana to this House and the 108th Congress. I look forward to working with him in a spirit of bipartisanship. I thank him for his first vote for tax relief and again would point out the four letters that my friends on the left just cannot bring themselves to mention tonight, EITC, earned income tax credit.
My friend from Arkansas either cited another example or gave a different total than I thought I initially heard about his constituent. Earning $25,000 a year, let me review what that constituent, who is paying no income tax, receives through the earned income tax credit according to the Tax Foundation. That person, that head of household with two kids earning $25,000, the tax liability before the credit is $885. After the child tax credit, the $1,000 per child, there is no tax liability. The remaining refundable child tax credit, $565. The refundable earned income tax credit, $1,717. The total check from Uncle Sam to that person, the head of household with two kids earning $25,000 under the earned income tax credit, is $2,282. The percent of the payroll tax erased for that head of household is some 60 percent.
What we are saying, Mr. Speaker, is simply an acknowledgment that our friends who are not paying income tax are indeed working Americans, and I find it ironic tonight that the earned income tax credit has been avoided by my friends on the left as if it were a plague. Why would that be, Mr. Speaker? I welcome the chance to certainly champion this program for working Americans, and I certainly hope that in the many mailings my friends on the left send out, they might inform their low- income constituents of the programs that already exist that can avail them of thousands of dollars. The glowing and glaring omission tonight in this motion to instruct is that my friends on the left do not even champion a program they once stood foursquare behind. They have instant amnesia. It is curious, but it is not unknown in politics.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
I should note, Mr. Speaker, as you occupy the role of speaker pro tempore, you are a newcomer to the Congress from the great State of Arizona, and we welcome you as well; and I appreciate your presiding this evening.
I want to thank my friend from Texas, who in addition to being a very capable legislator, is a very accomplished attorney. And certainly we saw tonight part of his legislative domain because when one does not have the facts on his side, it is important to argue atmospherics. And we all heard about the genuine intent of the Republican Party and all of these interesting perceptions out there that I guess, from the school of politics, perceptions outweigh reality.
But then again, Mr. Speaker, it is my assertion that we owe the American people the facts. And the fact is, what this House passed is much more comprehensive, what our Democrat friends offer is much more restrictive.
We have heard no refutation of this fact, and it is as follows: The Democrat motion to instruct allows the child credit to drop from $1,000 to $700 immediately following the 2004 election. That is a curious alleged improvement in the bill. The Democrat motion to instruct does not eliminate the marriage penalty in the child credit until 2010, and even then it only does so for 1 year. We have heard no refutation of that.
The House-passed bill does not deny the child credit to military families, and indeed as I have delineated time and again, the House- passed bill provides more tax relief to military families because it includes $806 million of military tax benefits.
What else have we done in H.R. 1308, the bill that is assailed as opportunities for the wealthy, as we hear that sad and shop-worn sloganeering of the politics of envy? What we have done in this bill is, we increased the child credit to $1,000 per eligible child through 2010. That provision alone provides $57.3 billion of tax relief over 11 years.
We have eliminated the marriage penalty in the child credit. We accelerated the increase in the refundable child credit. We provide tax relief and enhanced tax fairness, as I delineated, for members of the Armed Forces. We suspend the tax exempt status of designated terrorist organizations, and we provided tax relief for the estates and the families of those brave astronauts who have perished on space missions. This is included therein.
And actually we expanded the child tax credit to include children across the board socioeconomically. We do not believe in attacking any children.
And again what we have not heard from my friends on the other side tonight, whether they stand in the center or to my left or to my far left, what we have not heard tonight are the letters EITC, earned income tax credit, something that ordinarily I thought my friends would champion, but tonight they do not talk about it. Why? Because we are sending money to those hard-working folks who do not pay income taxes, moneys that will already be supplemented under the far more generous and expansive child credit than we have offered in H.R. 1308.
So again, Mr. Speaker, failing the refutation of these salient points, whatever sloganeering about our friend Ari Fleischer, who at one point in time was our Committee on Ways and Means press secretary on the majority side, who is not here to speak for himself tonight, whatever incantations or imaginations as to the motives of the majority party, that is certainly very interesting in terms of interpretive oratory, but it brings nothing to bear on tonight's debate.
The fact remains when we review what they offer, it is inadequate. It is bait and switch. And it peddles the shop-worn sloganeering of the politics of envy, reason enough to reject this motion to instruct.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I might consume.
Mr. Speaker, let me thank my neighbor from Utah, first of all, for both of his votes on tax relief. That is perhaps the most compelling testimony we have received tonight.
It is a bit curious that we diverge on what is possible. I believe, and perhaps this is a point where those who embrace the Keynesian theory of economics can actually agree with those of us who characterize ourselves as supply-siders, at a time of economic downturn it is important to provide tax relief. Indeed, we have accepted that as an article of faith for those working families eligible for the Earned Income Tax Credit, and, indeed, as I can point out again from the Tax Foundation, with the child tax credit, a $30,000 head-of-household with two kids is going to get over $1,000 back under previously existing law. That money is going to go back to help those folks.
Now, listen: I do not believe you gauge the art of what is possible on votes in the other body. I will leave atmospherics to the pundits and the Sunday morning shows. To me, what is possible is what is passed by a bipartisan majority, of which my friend from Utah was a part on two occasions. So, again, it is curious to note this motion to instruct.
Now, my friend from Arkansas offered some selective criticism. If you listen carefully to his critique, he spoke of the original tax bill. Of course, what we have done in H.R. 1308 is to expand and maintain the $1,000 level; not sunsetting it, but increasing it and taking it across-the-board for the next decade, the upcoming decade, to make sure it is there.
What they offer in their motion to instruct is to go back to $700 after the 2004 election. He had no critique or criticism of H.R. 1308, he was just silent on that, as he has been about the Earned Income Tax Credit.
Mr. Speaker, as we review this, the art of what is possible, and good folks can disagree, but I would maintain in this House that the art of what is possible can be achieved and that the greatest number of people can be helped to the greatest extent by this House maintaining its original position, not to accept a motion to instruct that is in fact a retreat from what has already been done in terms of promoting economic growth and allowing all Americans to keep their hard-earned money. That is what we have to deal with.
That is why it is important, and why tomorrow I know my colleagues will join me in voting no on this Democrat motion to instruct. Why take three steps backwards, when we can take a giant leap forward for all American families.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would be remiss if I did not thank my friends on the minority side for offering their points of view, including my friend from Georgia. I guess this is why we come to this great Chamber and debate many differences.
But, rather than impugn motives, I am simply going to say this: Quite to the contrary of what my friends assert, it is the opinion of this majority that the money we are talking about belongs to the American people, wherever they line up on the socio-economic scale. If you pay income taxes, you will receive an income tax reduction, and, if you are eligible for the Earned Income Tax Credit, as I have pointed out time and again tonight, the check has been in the mail for years. That is something my friends have not dealt with tonight, and it is something that, in the spirit of candor and complete discussion, we should not so readily dismiss.
Indeed, I would ask my friends to embrace H.R. 1308 as they embraced the initial tax bill. I thank my friend from Utah for his support of both, and I appreciate the spirit in which the debate has been conducted.
I know my friend from Arkansas has the right to close. I will simply close for the majority side by saying that we need to reject this motion to instruct. We offer a bill that is far more complete for a far greater portion of the American people.
As I have demonstrated time and again tonight, we have provisions under the Earned Income Tax Credit to alleviate the needs of those who pay no income taxes, and, indeed, under our comprehensive plan of tax relief, the numbers of families who pay no income taxes continue to grow exponentially.
If you opt for genuine tax relief, the real article, as some of my friends on the minority side have done on both occasions, I would say reject the motion to instruct. Embrace the House position. We will persuade our friends on the other side of the Capitol and move forward with more meaningful tax relief for Americans.
Mr. Speaker, I yield back the balance of my time.