Mr. Speaker, I claim the time in opposition to the motion to instruct, and I yield myself such time as I may consume. Mr. Speaker, Washington, as most Americans know, is simply not the real world. Here in Washington, budget increases are…
Mr. Speaker, I claim the time in opposition to the motion to instruct, and I yield myself such time as I may consume.
Mr. Speaker, Washington, as most Americans know, is simply not the real world. Here in Washington, budget increases are called cuts, $900 toilet seats are considered a bargain and, under this proposal, those who do not pay Federal income taxes will receive Federal income tax relief. That just does not make sense. The House this afternoon agreed, defeating this motion 220 to 206, yet we are back at this discussion again, unfortunately, for partisan political purposes.
Republicans in this House and across the country care very much about children. We care very much about families. But we think it is important to note that the Democrat motion to instruct, the one we are talking about tonight, would reduce the child tax credit for millions of children in America.
The Democrat motion to instruct allows the child credit to drop from $1,000 to $700 after the 2004 election. As a result, millions of low- and middle-income families will receive a smaller child tax credit right after the elections. Now, that sounds like Washington: Promise tax relief, then take it back after the election.
Well, not in this House. Because the Republican House-passed bill ensures the child tax credit remains at the $1,000 level throughout the decade, which is going to make it easier for families with children to make ends meet.
The Democrat motion to instruct does not eliminate the marriage penalty in the child credit until 2010, nearly 6 years from now, and even then it only goes so far to do it for 1 meager year. Under the Democrat motion, millions of children will be denied the child credit simply because their parents are married. Let me repeat that: Under the Democratic motion, millions of children will be denied the child credit simply because their parents are married. Well, the Republican House- passed bill benefits middle-income families by eliminating the child credit immediately.
The House-passed bill does not deny the child credit to military families. We will probably hear that tonight. Military families, including those who are deployed abroad, such as my brother Matt, Master Sergeant Matthew Brady, who serves in Iraq today in the 62nd Medical Brigade, they are already receiving a refundable child credit and will continue to receive a refundable child credit under the Republican House-passed bill.
The Democrat motion, on the other hand, 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. Well, that is not good enough for our military.
Finally, the House-passed bill provides more tax relief to military families because it includes $806 million, $806 million, of military tax benefits. These provisions have passed this Republican House on numerous occasions and are awaiting action.
Mr. Speaker, because there are, I think, a number of Members who want to speak on the other side, I reserve the balance of my time.
Mr. Speaker, I yield myself 4 minutes.
Mr. Speaker, working families in America matter, so much so that this Congress has repeatedly not only provided tax relief to help them balance their budget and to help them make ends meet, to help them raise their children and plan for their retirement and help them take care of their elderly parents and grandparents. I think the best thing we can do for working
families is to make sure that they continue to work, and for those who have been laid off, to get them back into the type of job that they can raise a family on.
I think that is what is so important about President Bush and this recent tax relief; we are boosting this economy and putting more than a million Americans back to work within the next few years. We are encouraging our businesses to invest more right now to hire summer workers, to hire new people into their small businesses.
For me, I understand when you are not working, you are not paying Social Security, Federal income tax, or paying into Medicare. The best way we can balance the budget and start paying down our debt is to get this economy moving. That is what the President's tax relief and job bill is all about.
In Texas, for example, because of this tax relief for working families, we have the equivalent of new jobs that will be created, enough that we could build two new Pentagons each year in Texas and fill every office with a new Texas worker. That is real jobs for working families, and that is what tax relief is all about.
Members have heard tonight that the President's bill deprives millions of low-income families of a tax break for children. Nothing could be further from the truth. The only ways in which these families could be denied tax relief is if they had an income tax liability in the first place, and they do not. On the contrary, low-income families, those who are working hard not only do not have an income tax liability, but they receive generous checks from their neighbors through the government as a result of the refundable portion of the child credit and the earned income tax credit.
While most Americans think of a refund as getting money back because you overpaid your taxes, in this case refundability means you get a check back even though you did not pay taxes into the Federal Government. Here is an example. For a single mom with two children under the current child tax credit, this mom works, makes $25,000 a year, her tax liability before the credit is pretty small, $800. We provide today a child tax credit of almost $600. We send her a refundable earned income tax credit, a check from her neighbors, from their taxes, of almost $1,700. So we send her $2,282 not only to pay her part of the Federal Government, but to pay her part of payroll taxes as well, the ones that go to Social Security and Medicare, perhaps unemployment, all of which she and her family will use in her lifetime.
America cares about working families, so much so that we take from our own paychecks to help people who do not have enough to make ends meet. One thing we do not hear tonight is that the most recent tax relief increased the number of people who do not have to pay at all by almost 4 million people.
Since 2002, nearly 10 million tax filers have been taken off the tax rolls, working families who no longer have to pay any Federal income tax whatsoever, and now in America nearly 30 percent of all our taxpayers pay no Federal income taxes whatsoever. The remaining 70 percent pay their share for them and then their share of government. We care so much about working families who have high Federal income tax rates that we want to provide relief to shoulder that burden.
Mr. Speaker, I yield myself 1 minute just to make the point that I think it is shameful to use our Armed Forces, our men and women over in Iraq today, which includes my little brother who is in harm's way each day. I think it is shameful to use them for petty partisan politics, especially when the House bill that passed provided $806 million of relief for our military that our colleagues across the aisle cheerfully voted against.
What bothers me is that this Republican House has worked so hard to increase the pay, the housing, the readiness of our military men and women, including my little brother, and as he told me the other day in an e-mail from Iraq, he and his colleagues find it very disturbing that they are used for these petty partisan politics when in fact we should be providing them the relief that we can.
I should point out as well that under this Democrat motion to instruct not only does this child tax credit end quickly but we dangle it in front of our military for 2 years and then yank it out right after the elections, which definitely qualifies for petty partisan politics at a time this country cannot afford.
I yield to the gentleman from North Dakota.
Reclaiming my time, I would make the point that not
only this afternoon did this House vote down this motion to instruct, but we had ample opportunity to pass tax breaks for our military. In fact, we as Republicans in the House did in the President's tax relief and our Democratic colleagues, and I know they have good hearts and the fact of the matter is they are patriotic, they care about our military, but they voted almost unanimously to deny this help for our military.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself 15 seconds.
I make the point again this House has already provided record tax relief for our military families including those deployed abroad. There is not a need to pick up another tax relief bill for the military. We have done so, and our Democratic colleagues voted strongly against it.
Mr. Speaker, I yield 2 minutes to the gentleman from Arizona (Mr. Flake), a man who stands very strongly for working families and for tax relief.
Mr. Speaker, I yield myself such time as I may consume.
Let me close our portion of this. And I appreciate the gentleman from
Maine's direction on this issue. While we may disagree and the parties may disagree on the policy issues, let me tell the Members I think we both have a love for this country, both are trying to do the right thing. We may have different approaches to it, but I know he has a good heart; and I appreciate his service here in Congress.
Let me point out that we care very much about working families and their children, so much so that in the last few years we have taken nearly 4 million families on the lower-income level and completely absolved them from the Federal income taxes, just said they do not have to pay Federal income taxes at all; so much so that now almost 30 percent of Americans fall into that category, which is a record high for those who do not have and do not owe Federal income tax. And in the tax relief plan for families that do pay Federal income taxes, we gave them a credit, helped them pay for raising children because things are so expensive. We reduced the marriage penalty because it simply was wrong to tax people more simply because they were married. This has been a great help for working families with children.
For those who pay income taxes, we said we want less of them to pay these taxes. So we expanded the 10 percent, the very lowest tax rate so more and more people would pay less of their Federal income taxes. And then for all the other working families, we said, look, Washington takes too much their money to pay for those $900 toilet seats and those $300 hammers and for those hundreds of programs that duplicate each other. We think the best way to get this economy going is to leave the money in their pockets, the best way to help small business hire new workers and keep them on is to put more money back into those small businesses. We knew that the best way to pay off this debt and get this budget balanced again is to get people back to work again by giving them the power of their own paycheck. So this Republican House and this President have bent over backward in record ways to make sure that working families with children can make ends meet better.
But make no mistake about our policy and principle. Our principle is income tax relief should go to those who pay income taxes. So the child tax credit is targeted to those who owe Federal income taxes. So much do we provide relief that for those who do not owe any Federal income taxes whatsoever, we already provide them tax credits, help, checks from their neighbors, from their paycheck to help them. We call it the earned income tax credit. We even provide some refundability, some more checks from their neighbors to help them with their children. So not only for those working families do we say they do not owe Federal income taxes but other neighbors say we will pay their payroll taxes, we will pay their share of Social Security, we will pay their share of Medicare, we will pay their share of unemployment, we will pay for reduced and free school lunches because their kids do need to eat. We will pay for free health care. We think it is important that their children are healthy. We will pay for free public transportation because we want their children to have opportunities.
This is a very caring America. We care for families who are low income, but we care for working families who make a little more than that. For the cafeteria worker who provides the free school lunch, we care about their taxes. For the bus driver who helps provide the free public transportation, we care about their tax burden. For the nurse who provides the free health care, we care about their tax burden as well. So this child tax credit is for those who pay Federal income taxes.
This Democratic motion to instruct yanks that child tax credit, that steps away from these working families as soon as the next election is over. That is flat wrong. And on behalf of this Republican conference, we oppose this Democratic motion to instruct. It would reduce the child tax credit for millions of children, and that is not right.
Mr. Speaker, I yield back the balance of my time.