Mr. Speaker, I certainly thank the gentlewoman for yielding and certainly appreciate her leadership in this body on helping promote policies that promote economic growth in jobs and being a true leader in trying to help reform government…
Mr. Speaker, I certainly thank the gentlewoman for yielding and certainly appreciate her leadership in this body on helping promote policies that promote economic growth in jobs and being a true leader in trying to help reform government programs that too often take away from family programs because they are wasteful, they are duplicative, they are inefficient, there is no accountability. She is one of the true leaders in Congress on these issues.
Mr. Speaker, there is a lot of good news that Americans have tonight. Clearly, this Nation faces a number of challenges and we know about them, and families are still struggling to meet high energy costs. Yet this Republican Congress has been bold in enacting new energy legislation to help address that.
Families still have challenges in the high cost of health care, but this Republican Congress is doing things to help bring down the costs, particularly for small businesses and to make it easier to see a doctor in America as opposed to sue a doctor in America.
But although we still face a number of challenges, as we have just have come away from our great Thanksgiving holiday, we need to remember the things that we need to give thanks for and all the good things that are happening in America.
One of the things that I do not think a sufficient number of Americans appreciate is just how great this economy is today. It is absolutely amazing, Mr. Speaker, that this economy, not this government, not this government but the economy, men and women all over the Nation, rolling up their sleeves and risking capital, have gone out and created over 4 million new jobs since President Bush's economic growth program was enacted by this Republican Congress.
That is over 4 million new taxpaying jobs, jobs with a future, jobs that allow
the American families to create their housing program, their nutritional program, their health care program, and their educational program. That is incredibly good news.
We have now had 2\1/2\, 2\1/2\ years where the economy has grown at over 3 percent a quarter. That is just unparalleled historic economic growth that is helping elevate and enrich the lives of millions and millions of Americans and allowing them to take care of their families and for them to realize their American Dream.
Now, another aspect that too many people do not realize, because some people, particularly the Democrats, tell us that tax relief is a bad thing for the American people, that tax relief somehow hurts the deficit, well, we know that the deficit is too high. But guess what? The deficit has been falling. And why? I wish it were because spending was decreasing here. We are fighting those battles. But tonight we are here to talk about the values of tax relief and how important it is that we prevent a Democrat tax increase. And if we do not act this week, we will have yet another huge Democrat tax increase on the American people.
The American people do not realize, or perhaps not enough of them realize, that in Washington, DC, spending is forever and tax relief is temporary. Unless we enact legislation this week, there will be an automatic tax increase on the American people. And besides what that is going to do to the American family, it will hurt the deficit. Tax relief has proven to be part of the deficit solution, not part of the deficit problem.
Well, I thank the gentleman from Georgia for his insight, and I certainly appreciate his bringing the chart because it dramatically illustrates this phenomena: that if you will simply allow the American people to keep more of what they earn, allow small businesses to keep more of what they earn, they will roll up their sleeves and expand. They are going to go out and create a new transmission repair shop on one street corner or a new barbecue stand on another corner. Somebody will have the capital to finally go out and maybe create the new generation of some revolutionary new software.
But you cannot have the benefits of capitalism without capital. And the Democrats on this side of the aisle, they want to take away the people's capital. They want to feed this wasteful Washington bureaucracy. They want to grow the Federal budget. We want to grow the family budget. And when we do, jobs are created. And guess what? People go to work and they pay more taxes.
As the gentleman knows, it is not just us creating figures out of thin air. It is not just somebody's opinion. It is fact. I hold in my hand here the latest report from the U.S. Treasury. This is the Treasury report. What does it tell us? It tells us that from last year individual income taxes, after we decreased the rates, we decreased the rates, guess what? Individual income tax revenues rose almost 15 percent. Corporate income taxes. Corporate income taxes. We cut their rates, and guess what? They paid more taxes. There was almost 47 percent more tax revenue from corporate income taxes once we cut the rates.
Again, you cannot have capitalism without capital. So what we need to do is we have to work this week to prevent that automatic Democrat tax increase. Increasing taxes, sending more money to Washington, that is going to ultimately fuel our deficit. And the American people inherently know that when it comes to the fiscal challenges that we face, it is not because the American people are undertaxed; it is because Washington spends too much.
Well, this is an excellent line of debate that the gentlewoman is developing here. And again it is very important that the American people know this week we do not have a bill on the floor to provide tax relief for the American people. We have a bill on the floor to prevent a Democrat tax increase. There will be an automatic tax increase on the American people if we do not pass this legislation, and one of the things that we will lose is the ability of small businesses to expense what we call depreciable assets up to $100,000.
Now, before I became a Member of Congress, I was a small businessman. I have gone out there, I have rolled up my sleeves, and I have risked capital. I have signed the front of a paycheck. I helped start a business that had a dozen employees, and it was not easy. It was not easy. We could not have started that business without capital. Yet the Democrats want to take away our ability to form capital and create small businesses, which is the job engine of America. That is where all the new jobs come from, is small business.
Now, what is going to happen if we lose this? Let me give one example, one story from my congressional district. I am very proud to have the ability to represent the Fifth Congressional District of Texas. It starts in east Dallas and goes through great communities like Mesquite. It takes in rural east Texas, which is a wonderful place to live and raise a family, but sometimes a tough place to make a living.
I went to visit a business, small business called Jacksonville Industries, in my congressional district, located in Jacksonville, TX. They are a zinc and die cast business, and I do not totally understand what they do; but they had 20 employees when I went to visit them. Well, due to competitive pressures, prior to being able to benefit from our tax relief economic growth program, they were on the verge of having to lay off two people. Now, that is 10 percent of their workforce. They were going to have to lay off 2 of 20 workers.
Thanks to this provision, small business expensing that we passed way back, they were able to go out and buy a new piece of machinery. Now, I do not recall what it is called or precisely what its function was, but I know what it did. It made them more competitive. And instead of laying off two workers, they hired three new workers. And that is one small business in one rural part of Texas, but that is happening all over the Nation.
We are allowing families and small businesses to keep more of what they earn, and yet the Democrats want to take that away from them. They want to take that capital back.
We were talking earlier about how do you cut tax rates and increase tax revenue. Think about this one example in Jacksonville Industries. They were getting ready to lay off two workers, and they end up hiring three because they are more efficient and keep more of what they earn and buy new equipment and machinery. That is five people that could have been on unemployment and food stamps and welfare, five people taking from the Federal Treasury because they had dire needs. But instead of five people taking from the Treasury, it is five people paying into the industry.
That is how it happens. That is how you cut tax rates and increase revenues. That is five Americans who are putting a roof over their family's head and start putting money in the college fund. That is the difference that this has made. And yet the Democrats want, at Christmastime, if you can believe that, want to present the American people with a big, fat tax increase.
Mr. Speaker, that is a very important point. I know when this debate takes place tomorrow, and we have heard about so many of the great tax relief provisions which have been passed for American families and small business, and how they are going to be taken away tomorrow if we do not defeat this Democrat tax increase, but the capital gains and dividends, we know the rhetoric. The class warfare rhetoric of our friends on the other side of the aisle, we know it is coming. Yet I sit here and I think they claim they love jobs, they just seem to hate the people who create them. Capital gains and dividends is all about investment. Again, you cannot have the benefits of capitalism and job creation without that capital in the first place.
Since I was quite young, I have held a number of jobs in my life. My first job, I come from an agricultural family. We raised poultry. Frankly, my first job in life was cleaning out chicken houses. It was a job I did not want to hold for later on. Later I bussed tables at the Holiday Inn in College Station, Texas. I used to be a desk clerk at the Ramada Inn. I used to load windows at a window factory in Bryan, Texas. I am trying to live it down, but I actually practiced law once. I was an officer in two different corporations.
The point I am making is of all of the jobs I have had, I have always tried to work hard and tried to learn something and tried to improve myself and move up that ladder. And guess what, in all of the jobs I have had, no poor person ever hired me. No poor person ever hired me. It was somebody who had managed to amass some capital, and he or she went out and risked that capital in a business enterprise that succeeded and because of that I got a job. I received a paycheck.
Again, you cannot love jobs and hate the people who create them. By trying to increase the taxes on capital gains and dividends, you are attacking investors, you are attacking job creators and you are taking away jobs from American families, and that is wrong and that is another reason we must defeat this Democrat tax increase tomorrow.
Mr. Speaker, over half of Americans are invested in the stock market. They do have some form of dividend or capital gains and it is really their nest egg. Those are the 401(k) plans to help them in their retirement years. That is money that is put away for education for their children, and yet our Democrat colleagues on the other side of the aisle want to tax away that dream. They want to tax away that nest egg by passing a huge tax increase tomorrow. That is over half of Americans in just this one provision. Just this one provision would see a huge tax increase right before Christmas if we do not defeat this Democrat tax increase tomorrow.
Mr. Speaker, I appreciate again the gentlewoman yielding, and I appreciate her point that is so important that tax relief has driven job creation. You take away the tax relief, as our Democrat colleagues are trying to do, and you end up taking away the jobs.
Let me again return to my congressional district. As I said earlier this evening, how proud I am that I have the honor of representing the Fifth Congressional District in Texas. There is a small business there named Hugh Dublin, who has a company called East Texas Right of Way. He has been in business for 8 years. He works hard. His company specializes in the leasing and purchasing of right of ways for different corporate clients. Before we passed tax relief, his company had two full-time employees. That is a small business. But thanks to tax relief, his business expanded and he went out and hired two more. He hired a gentleman by the name of Dan and another gentleman by the name of David. They were unemployed. But thanks to the tax relief package, they got jobs in a business that was growing.
But yet this week, the Democrats want to increase taxes on Hugh Dublin and East Texas Right of Way. They want to take away the paychecks of Dan and David and replace them with welfare checks, and they call that compassion.
Let me tell you another example. There is a gentleman in my congressional district named Eddie Alexander. He has a small business called Triple S Electric. It is an electrical contracting business for residential and commercial. For the past 3\1/2\ years, he worked alone and he had one part-time helper. But thanks to the boom in the economy brought about by tax relief, and we have not even talked about the fact that we have the highest rate of homeownership in the history of America and each and every one of those homes needs electricity, since the economic growth package with tax relief was passed, he went out and hired two full-time employees. He hired a gentleman by the name of Jarad, who was unemployed and he hired a gentleman by the name of John, who was also unemployed in Henderson County, Texas. Now all of a sudden, the Democrats want to raise taxes on Eddie Alexander and Triple S Electric.
And it is just so important that everybody realize this connection between preserving tax relief, preventing a tax increase and preserving our jobs. Again, over 4 million new jobs created in this economy since we passed tax relief. Why would we want to go back? Why would we want to take that tax relief away and pass a huge tax increase, because that affects real people all across America.
Let me give you another example. I talked earlier about the fact that we are enjoying the highest rate of homeownership in the history of the United States of America. I mean, home ownership, part and parcel of the American Dream. Well, somebody has to go out and help renovate those homes and build new homes. And one of those gentleman is in my congressional district back in Texas, a gentleman by the name of Gil Travers of Travers and Company. He is a home builder. Prior to us passing the economic growth legislation with the tax relief, he had just a handful of workers; but once we passed the tax relief, he had to hire extra workers. He hired a lady named Jan, who was unemployed, to help him clean up some of his job sites. She got so busy that she had to hire two people who were unemployed to help her clean up the job site, a gentleman by the name of Calvin and another lady by the name of Christy, all because of tax relief.
And yet this week the Democrats want to raise taxes on Travers and Company Home Builders. They want to jeopardize the pay checks of Jan and Calvin and Christy and replace them with welfare checks, and they call that compassion.
Well, again, it illustrates just how valuable the tax relief has been to our economy. We have spoken this evening at length about over 4 million new jobs. Four million new jobs in the future that have been created. Four million new paychecks. That is what compassion is all about. Compassion is not measured by the number of welfare checks that are printed in Washington. It is measured by the number of paychecks that are printed all over the United States of America.
Our GDP growth, 2\1/2\ years straight where each and every quarter of economic growth has been over 3 percent. We have consumer spending that is advancing, advanced 4.2 percent during the third quarter. Retail sales are up. Real disposable income for our working families is up since we passed the tax relief package in our economic growth legislation. And manufacturing, which has faced many, many challenges in recent years, manufacturing production is continuing to expand. We have increases in productivity, and the list goes on and on and on. And all of this is threatened if we permit the Democrats to offer their Christmas gift to the American people, a huge tax increase; and that is why it is so vital, so vital tomorrow that we do not allow that to happen.