Jobs And Growth Reconciliation Tax Act Of 2003
Mr. Speaker, I rise in strong opposition to this bill. I rise in opposition because the author of this bill is from the great State of California. This bill cuts $850 million out of the State budget, a budget that is already bankrupt. That…
Mr. Speaker, I rise in strong opposition to this bill. I rise in opposition because the author of this bill is from the great State of California. This bill cuts $850 million out of the State budget, a budget that is already bankrupt. That bankruptcy affects every school district in California, every city and county in California, every hospital in California, every police force and fire department in California.
How can Members say at a time when these States are in such financial need we are going to help them by pulling the rug out from underneath them? This tax cut is the worse thing that could happen to the State of California, and it is shameful that a Republican from California is offering it.
Mr. Speaker, I rise today to read some headlines from my state of California. These
are just from the last few days, but they are illustrative of the kinds of headlines that we have been seeing across our state during the past year: ``Parents scramble to save popular school programs'', the San Francisco Chronicle, May 8th; ``San Jose faces service cuts, fee increases: Budget plan calls for loss of 231 jobs'', San Jose Mercury, May 3rd; ``Budget anxiety--California's teachers worry about layoff'', Los Angeles Times, May 6th; ``Financial crunch hits extra hard'', Monterey Herald, May 4th; and ``Proposed Section 8 changes feared'', Santa Cruz Sentinel, May 2nd.
Across the state of California, both statewide government agencies and local municipalities are feeling the crush of the approximately $35 billion budget shortfall. The state is looking for help. We are asking, much like New York City did in 1975, for help from our national leaders. And, much like Ford did in that day, the President and Republican leaders here in Congress are sending a message to California: G.O.P. to California: Drop dead.
The so-called ``stimulus package'' proposed by Representative Thomas calls for--depending on who you listen to--somewhere between $300 and $500 billion in tax cuts. Included in this package is legislation that would do away with taxes on dividends.
What the President and the Republicans, and even Representative Thomas, a California, have not told you is that this elimination of taxes on dividends will not just affected the amount of revenue coming into the federal government, it will also affect the amount of money collected by the states. The Legislative Analysis office of the State of California has calculated the State will lose approximately $850 million in income tax revenues if dividends are no longer counted as taxable income. $850 million. This will only serve to increase the budget gap that already exists. I am fairly certain the returns to individual California as a result proposed will not be as great as the losses the entire state.
Unlike the Senate proposal. Thomas' proposal does not include any direct assistance to the states. In fact, the President is seeking to cut funding entirely to programs that have been beneficial to California.
The COPs program has been a wildly successful program in the state of California, which provided 437 more police officers on the streets in California last year. What does Bush do? He eliminates the funding from his proposed budget.
The State Criminal Alien Assistance Program assists California in jailing alien criminals. What does Bush do? He eliminates the funding in his proposed budget.
Section 8 housing funds for low-income citizens, administered by the HUD, has provided millions of families into housing across the nation. Sure, it's not a perfect program, but the President would like to see the states administrater the program instead. He claims this will save the Federal government money--but it he at all concerned with the costs, administrative and otherwise, but will be passed onto the states as a result?
There is not one penny in this legislation to assist the states. There is not one shred of hope for the state of California, or the nearly 250,000 people who are unemployed, in this bill. How can anyone in the California delegation allow our state to suffer? How can you present them with this kind of legislation and not offer them any kind of assistance? I urge my colleagues to vote against this bill and allow the Democratic substitute to be debated--which includes $40 billion in direct assistance to the states. Otherwise, I can see the headlines now: ``State Falls Deeper into Debt''; ``More jobs eliminated''; and ``Schools closing across California.''
Let's change the headlines. Let's do it now, vote down the Thomas bill and consider the democratic alternative immediately.