Floor Statements

Madam Speaker, it is with great honor that I rise today in celebration and recognition of the 200th anniversary of Clarence,

Madam Speaker, it is with great pride that I rise today to commemorate the 100th anniversary of the Clarence Center Volunteer Fire Company of Clarence, New York. For a century the members of the Clarence Hose Company have been volunteering to protect their neighbors.

The Clarence Center Volunteer Fire Company became the first fire company in the town of Clarence in 1908. The company began as a stock company and was able to purchase a hand drawn hose cart and chemical fire extinguishers. Land for a fire hall was donated to the fire company by a local businessman, and fundraising for the construction began in July 1908 with the first firemen's picnic in Clarence. With the help of a local farmer, Wesley Williams, the company raised enough money to construct Williams Hall.

The year 1922 marked a milestone for the Clarence Center Volunteer Fire Company. In February of this year the company was able to purchase its first fire truck. The acquisition of this truck was important to the protection that the fire company offered the people in Clarence. Additionally, the first annual Labor Day picnic was held in 1922. This is a time-honored event in the town of Clarence; not only is it a way for the fire company to raise funds for improvements to the equipment used to serve the people of Clarence, but it is an event that families throughout the town look forward to every year.

Since its beginnings the Clarence Volunteer Fire Company has become an indispensable part of the town. The company remains committed to providing fire, rescue, and EMS services to the citizens that reside within the district boundaries. They've continued to meet the needs of the rapidly growing population of Clarence Center. As we reach the 100th anniversary of this fire company the volunteers continue to dedicate themselves to serve and assist the members of their community.

Thus Madam Speaker, in recognition of its 100th anniversary of tremendous service in the town of Clarence, I ask this Honorable Body join me in honoring the Clarence Center Volunteer Fire Company.

Madam Speaker, it is with great pride that I rise today to commemorate the 100th anniversary of the Eggertsville Hose Company of Amherst, New York. For a century the members of the Eggertsville Hose have been volunteering to protect their neighbors.

The Eggertsville Hose began in 1906 in a corner meat packing store after a series of household fires could not be extinguished. The two home blazes were unable to be controlled by the bucket brigade, the fire fighting team at the time. Residents of Eggertsville then banded together to form an organization that would provide better fire protection to the community.

This fire company was incorporated in May 1908. The Eggertsville Hose was the first fire company in the town of Amherst outside of the Village of Williamsville. Fighting to protect the members of their community is the main priority of this 100 percent volunteer fire district. No matter what it takes these volunteers rise to the call of duty.

The Eggertsville Hose is an indispensable part of the Amherst Community, the members of the Hose have dedicated countless hours of service to assist their neighbors. As the population in the district grows the Eggertsville Hose advances along with the rising need for their service. In 1995 the fire station was moved to the center of the district which allows the Hose to respond to emergencies in all areas in a shortened period of time. The new station location along with new equipment and technology makes it possible for the volunteer fire fighters to be increasingly effective in their firefighting capabilities.

The citizens of Eggertsville know that they will be protected by the brave firefighters of the Eggertsville Hose whenever disasters occur or fires flare up. Madam Speaker, in

recognition of its 100th anniversary of tremendous service in the town of Amherst, I ask this honorable body join me in honoring the Eggertsville Hose Company.

Madam Speaker, it is with great pride that I rise today to commemorate the 100th Anniversary of the Clarence Center Volunteer Fire Company of Clarence, New York. For a century the members of the Clarence Hose Company have been volunteering to protect their neighbors.

The Clarence Center Volunteer Fire Company became the first fire company in the Town of Clarence in 1908. The company began as a stock company and was able to purchase a hand drawn hose cart and chemical fire extinguishers. Land for a fire hall was donated to the Fire Company by a local businessman, and fundraising for the construction began in July 1908 with the First Firemen's picnic in Clarence. With the help of a local farmer, Wesley Williams, the Company raised enough money to construct Williams Hall.

The year 1922 marked a milestone for the Clarence Center Volunteer Fire Company. In February of this year the Company was able to purchase its first fire truck. The acquisition of this truck was important to the protection that the fire company offered the people in Clarence. Additionally, the first annual Labor Day Picnic was held in 1922. This is a time-honored event in the town of Clarence; not only is it a way for the fire company to raise funds for improvements to the equipment used to serve the people of Clarence, but it is an event that families throughout the town look forward to every year.

Since its beginnings the Clarence Volunteer Fire Company has become an indispensable part of the town. The Company remains committed to providing fire, rescue, and EMS services to the citizens that reside within the district boundaries. They've continued to meet the needs of the rapidly growing population of Clarence Center. As we reach the 100th anniversary of this fire company the volunteers continue to dedicate themselves to serve and assist the members of their community.

Thus Madam Speaker, in recognition of its 100th Anniversary of tremendous service in the Town of Clarence, I ask this honorable body join me in honoring the Clarence Center Volunteer Fire Company.

Madam Speaker, I rise today--along with numerous original cosponsors--to announce the introduction of the ``Stealth Tax Relief Extension Act of 2008''--new legislation that would extend to 2008 the temporary alternative minimum tax (AMT) relief that Congress enacted on a bipartisan basis last month. As the lead sponsor of a prior bill--the ``Stealth Tax Relief Extension Act of 2007'' (H.R. 1112)--on which Congress's year-end AMT patch bill for 2007 was based, I urge the House to take the earliest possible action this year on a new patch for 2008.

As my colleagues will recall, last year's AMT patch--which extended temporary AMT relief through December 31, 2007, without raising taxes-- was enacted later in the legislative year than ever before. As a result of that unprecedented delay in Congressional action on last year's patch, the upcoming tax-filing season is expected to involve significant disruption and substantial taxpayer confusion. While I remain hopeful that bipartisan efforts to achieve a long-term AMT solution will eventually bear fruit, I sincerely hope that, over the weeks ahead, Republicans and Democrats can, at the very least, work together to prevent a similar situation from developing again.

Accordingly, I am today introducing follow-up legislation that would simply extend for an additional year--through December 31, 2008--the temporary AMT relief enacted this past December. I am confident that the common-sense approach taken in my new legislation will once again engender overwhelming, bipartisan support, just as it did last year.

Specifically, my new legislation would increase the AMT exemption level for single filers from $44,350 in 2007 to $46,200 in 2008, and it would increase the exemption level for joint filers from $66,250 in 2007 to $69,950 this year. These increases--$1,850 for singles and $3,700 for joint filers--reflect the same dollar amounts by which Congress raised these exemption levels in December, and they represent the best current estimates of the amounts necessary to ensure that no additional taxpayers will be affected by AMT in 2008 than were affected in 2007. I have submitted a formal request to the Joint Committee on Taxation for an updated estimate as to the exact dollar amounts that will be required to achieve this objective, and I expect to receive that information sometime next month. At that time, any appropriate adjustments to the figures included in today's bill can be made. In the interest of ensuring that Congress can begin work on the 2008 AMA patch as early in the year as possible, however, I am formally filing this bill as a place-holder today.

Timely introduction of this bill is all the more important in light of the heightened, bipartisan interest over recent weeks in enacting an economic stimulus package early this year. I would note that the 2008 AMT patch has been identified by the Congressional Budget Office (CBO) as among the more effective legislative options to help address the current economic situation. As this week's CBO report made clear, enacting an AMT patch early this year would permit hard-working, middle-class taxpayers to properly adjust their withholding levels to provide workers additional take-home pay in each paycheck. Because the AMT patch has been estimated to save affected taxpayers an average of about $2,000 per year, early enactment of my new legislation would be expected to increase the typical AMT-affected worker's take-home pay by as much as $167 per month. These taxpayers could, in turn, use those additional funds to purchase food, gasoline, healthcare, or other critical items that would help them not only meet the material needs of their families, but spur the economy as well. In my view, this is precisely the sort of immediate, high-impact tax policy change that Congress should be discussing as part of the ongoing economic stimulus debate, and I would encourage my colleagues to give this idea careful consideration as we work to craft a bipartisan stimulus package.

Clearly, the AMT patch stands on its own merits as a matter of tax policy and fairness, as evidenced by the House's overwhelming 352-64 vote on the free-standing 2007 patch last month. Regardless of whether my new AMT patch legislation covering 2008 is included as part of the forthcoming stimulus package or is considered separately at a later date, I stand ready to work with members on both sides of the aisle to prevent this needless tax increase on millions of America's middle- class taxpayers, while also ensuring that we avoid other unwarranted tax increases that would further endanger our economy. Working together, I am confident that we can once again protect taxpayers from an unwelcome tax hike due to the AMT, and that we can do so in a much more responsible manner than occurred last year.

Madam Speaker, it is with great appreciation that I rise today to honor a dedicated and 70-year active volunteer of the Doyle Volunteer Hose Company No. 2 in Cheektowaga, NY.

Edward A. Tokasz joined the Doyle Hose Company in February 1938. Since this time he has committed himself to the company and to aid the people of Cheektowaga. As a continuous member of the hose company since joining, Edward has taken on many leadership positions. In just his second year with the Doyle Volunteer Hose Company, Edward became 2nd Assistant Chief where he quickly rose to 1st Assistant in 1941, Treasurer in 1948, and President in 1958.

Most notably, Edward Tokasz served as the Treasurer for the Doyle Fire District from 1948 until 2007. In the capacity of Treasurer Edward demonstrated his integrity and hard working nature that allowed him to provide the district with a great deal of service that was delivered with honor.

Edward Tokasz's involvement in the fire department spread further than his hard work as Treasurer. While he was the District Treasurer, he also served a total of 5 terms as a member of the Board of Directors. Additionally, Edward took on the role of Sergeant-at-Arms from 1984-1994. Presently, he serves as the Doyle Fire District Deputy Treasurer.

Thus, Madam Speaker, in recognition of his 70 years as an active member of the Doyle Volunteer Hose Company No. 2, and for his dedication and service to the people of Cheektowaga, NY, I ask this Honorable Body to join me in honoring Edward A. Tokasz.

Madam Speaker, it is with great honor that I rise today to honor the memory of a great American, George N. Schuster of Springville, NY. The year 2008 marks the centennial of one of America's greatest achievements, in which George played a vital role. He was a part of the 1908 American team that competed in the New York to Paris Race.

This 1908 automobile race consisted of six teams representing four different countries. George was brought in to be a mechanic for the American car, the Thomas Flyer. The New York to Paris race took contestants through North America, Asia and Europe. George and his team departed Times Square on February 12, 1908 to begin the race. This race would take 169 days to complete, and would only be finished by three of the teams, one of which was the Thomas Flyer.

George Schuster was the only member of the Thomas Flyer team to remain with the car for every inch of the 22,000-mile journey. In addition to the great length and poor infrastructure making this race a great challenge, the weather also proved to be an obstacle. The team had to drive through rivers, deserts, and blast narrow mountain passes to make their way across the United States. At one point George got his car designated as a train on the Union Pacific Railroad to get through tough terrain. In order to cross the Bering Sea the Thomas Flyer had to be taken apart and loaded onto a dogsled.

Moving on from the position of mechanic, George Schuster became the captain of the Thomas Flyer Team as they made their way to San Francisco. It was up to him to make the critical decisions along the way. George acted as a negotiator to people such as Russian soldiers in order to get past obstacles that the team encountered on their way to being victorious in the New York to Paris race.

In 1908, automobiles did not possess the advanced technology needed to complete the trip without numerous mechanical failures. At one point the Thomas Flyer needed a new transmission, which had to be shipped by train while they continued on with the help of a horse for 13 days. George was determined to be victorious in this race and motivated his crew with these words: ``as long as the wheels will turn . . . I'm going to drive this car.'' On July 30, 1908 the Thomas Flyer Team led by George Schuster drove into Paris with the help of a bike light strapped to its fender, becoming the first team to complete this feat.

Thus, Madam Speaker in recognition of his contributions to the American automobile industry and the history made by the Thomas Flyer, I ask that this honorable body join me in honoring George Schuster.

Madam Speaker, we're talking about the young age of my colleague and fellow seat mate in Ways and Means. I'm a little older, so I heard the President when he said, There they go again. Ronald Reagan. I heard him, and it kind of reminded me today as the liberals of this great body and the Blue Dogs of this great body come down and rant and rave over the fact, while they run the House, we're going to have the will of the House, and the will of the House is to fix the AMT for a 1-year patch, just like we've done in the past. Not an unusual fix.

The last time I introduced this legislation, in 2005, 414-4 voted to support that bill. As a matter of fact, I looked and there were 33 Blue Dogs, some of which will speak today, that voted for my bill. And I promise you it didn't raise taxes. It just simply provided a 1-year patch for 2006 to give relief to the middle-class taxpayers that never were supposed to be caught up with this thing since it was created in 1969.

And so when we look at this today, we've got a blame game from everybody saying, hey, it's the Republicans in the Senate, it's the Republicans here, the Republican President.

The Democrats run the House. We're here right before the holiday, and this is the best bill you've got and we're going to pass it. We're going to pass it just like I knew when I put it in in February, that all of the talk, all of the hope, all of the desire to change comes down to the fact we couldn't do it.

And it gets me down to three words, deny, deceive and delay. Deny that you would raise taxes. You've already outlined how you're going to raise taxes. Deceive, you promised the American people you'd fix this permanently. And we're here today, at this late hour, doing a patch.

And then we look at delay. For 11 months, we have delayed this to where we could have fixed it so that the American taxpayer would at least have the forms when the 2007 tax bill comes home.

I urge a ``yes'' vote on this legislation.

Mr. Speaker, I yield myself such time as I may consume.

(Mr. REYNOLDS asked and was given permission to revise and extend his remarks.)

Mr. Speaker, as my colleague, the gentleman from Connecticut, has outlined a number of provisions in this bill, we come together today not as Democrats or Republicans, but as Americans. We are united in our respect for those who wear the uniform of the United States Armed Forces, and we are united in our desire to ensure that Federal programs within the Ways and Means Committee's jurisdiction from the Tax Code to the SSI program work effectively for members of the military, veterans, first responders and their families.

Let me begin by also thanking Chairman Rangel and Ranking Member McCrery, as well as Chairman Neal, Chairman McDermott, and Ranking Members English and Weller, for their outstanding leadership in crafting this legislation. This bill is a great example of what we can accomplish when we put our differences aside and work together. I am hopeful that the revisions we are making to this legislation today will be taken up in short order by the other body.

I would also like to highlight two specific provisions in the bill that have been of particular interest to me during my time in Congress. The first provision, section 202, is modeled on legislation, the Blind Veterans Fairness Act, that I first introduced in the year 2000. My legislation would correct a problem in the Federal SSI rules and affects blind veterans in four States, New York, New Jersey, Pennsylvania and Massachusetts, that provide these veterans modest annuities in recognition of the substantial sacrifice they have made to serving our country.

Regrettably, under current Federal law, these State annuities actually reduce any SSI payments for which blind veterans would otherwise be eligible. As we heard from Michelle LaRock of our New York City's Division of Veterans Affairs at our Ways and Means hearing in October, this quirk in the Federal SSI rules creates a hardship not only for the affected veterans themselves, but for the States that administer these annuity programs as well. As in years past, the bill I introduced in the 110th Congress, H.R. 649, has enjoyed bipartisan support.

Let me turn briefly to a separate provision, section 107 of the bill, which will permanently allow penalty-free withdrawals from IRAs, 401(k)s, and other retirement funds for Reservists and National Guardsmen called to active duty. As we all know, when Guardsmen and Reservists are called up from our States, they often face significant reductions in pay compared to their civilian salaries, put an economic strain on their families. To lessen this economic hardship, many of them

choose to draw down on their retirement funds.

Unfortunately, under prior law, they faced a 10 percent ``early withdrawal tax'' when they did so, and they faced restrictions on making repayments to their retirement funds upon returning from active duty. Last year's Pension Protection Act provided relief from this 10 percent penalty tax and permitted unlimited repayments within 2 years after leaving active duty, but only for Guardsmen and Reservists called to active duty before December 31, 2007.

To ensure that this important relief remains available on a permanent basis going forward, I introduced H.R. 867, the Guardsmen and Reservists' Tax Fairness Act on February 7 of this year. This legislation has also attracted a bipartisan group of cosponsors, as well as endorsements from several leading veterans service organizations.

Mr. Speaker, we recently got a great reminder of the time-sensitivity of this particular provision from the area I represent in Western New York. Just days ago, it was announced that 100 members of the 107th Air Refueling Wing, stationed at Niagara Falls Air Reserve Station, will be deployed to the Middle East in January as part of the global war on terror. Unless this tax benefit is made permanent, these brave men and women, and countless more just like them across the country, will lose their eligibility simply because the calendar has flipped to 2008 before their date of deployment.

I sincerely hope that our colleagues on the other side of the Capitol will recognize the urgency of this issue and ensure that the provision is sent to the President's desk before adjourning for the year.

With that, Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 2 minutes to the gentleman from California, Mr. Herger, a very senior member of the Committee on Ways and Means.

Mr. Speaker, I yield 2 minutes to my good friend, the gentleman from Texas (Mr. Brady).

Mr. Speaker, I yield 3 minutes to the distinguished gentleman from Kansas (Mr. Moran).

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I certainly agree with the gentleman from New Jersey, our distinguished member from Ways and Means. This is a bipartisan piece of legislation. As both the manager of the bill, Mr. Larson of Connecticut, has outlined and as I have outlined, as we share strong support and we put Democrat and Republican views aside, and represented clearly what is best for America as we deal with our veterans and as we deal with our firefighters. And so both sides of the aisle today join strongly in a clear message of support of this legislation as it comes again before the House and goes to the other body, in hopes that the other body will see fit to support the type of legislation that is coming with such bipartisan support of not only the Ways and Means Committee but through what I believe will be the entire House.

I reserve the balance of my time.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I reserve the balance of my time.

General Leave

Mr. Speaker, I yield myself such time as I may consume to close debate on our side.

Let me first take a moment again to thank Chairman Rangel and Ranking Member McCrery for their ongoing

work on this important bill and for including two specific provisions I described earlier regarding SSI benefits for blind veterans and penalty-free withdrawals by National Guardsmen and Reservists.

Even more importantly, I want to thank my chairman and ranking member for working so hard to cultivate a true spirit of bipartisanship when we deal with issues where we can find common ground.

Today on this legislation, which is very important for both Guardsmen and Reservists and veterans who are serving our country and have served our country, and for our first responders and our firefighters, today is one where we have worked hard to take a number of bills and put them together and make it an opportunity to get results in 2007 that will be the Heroes Earnings Assistance and Relief Tax Act. I urge a ``yes'' vote.

I yield back the balance of my time.

Madam Speaker, with great appreciation I rise today to honor an inspiring educator turned astronaut, Barbara Morgan, who has spent her distinguished career ensuring our children have the knowledge and experience to fulfill their dreams. I also rise today, Madam Speaker, to thank Barbara for visiting my district to share her inspiring story and experience with local students.

This past August, Astronaut Barbara Morgan became the first teacher to complete a mission in space. While Barbara had to wait 21 years for her trip on the Endeavour, she completed the legacy of teacher Christa McAuliffe, who was tragically killed in the 1986 explosion of shuttle Challenger, by holding education sessions in orbit for students.

As Christa McAuliffe's backup for the NASA Teacher in Space Program, Barbara witnessed firsthand the tragic Challenger explosion. After the explosion, Barbara returned to teaching in Idaho, but in 1998 was drawn back to NASA and trained to become an astronaut and an integral part of shuttle missions. She has logged over 305 hours in space and completed her first space flight in August 2007 as a mission specialist on the crew of Endeavour.

Holding the first in-orbit classroom for students aboard Endeavour, Barbara said her 2 careers were very similar, saying in both roles, you ``explore, discover and share.'' In these roles, Barbara has not only made a significant impact on space exploration, but she also serves as a positive role model for students. Growing up in Fresno, California, Barbara graduated with distinction from Stanford University and started teaching on the Flathead Indian reservation at Arlee Elementary School in Arlee, Montana. Most recently, Barbara taught second, third, and fourth grades at McCall-Donnelly Elementary School in Idaho.

Throughout Barbara's life, she has set an example for others to follow. Her courage and dedication to education serves as an example for us all, especially our students. It is because of teachers like Barbara that our students have the inspiration to follow their dreams.

Madam Speaker, in recognition of her tremendous service to our children and our Nation as an educator and astronaut, I ask that this honorable body join me in honoring Barbara Morgan.

Madam Speaker, with great appreciation I rise today to honor a dedicated and highly respected western New York native, Matt Abbott, for his leadership in directing the recent space shuttle mission Endeavour.

As lead flight director on the recent space shuttle mission Endeavour, Matt has proven that when you put your mind to something anything is possible. Since he can remember, Matt has dreamed of working in Mission Control. When he was 6 years old, he watched on television as Neil Armstrong and Buzz Aldrin became the first men to walk on the moon. While most of Matt's friends dreamed of becoming astronauts, Matt saw the challenge and inspiration in working behind the scenes, leading the mission.

While not physically aboard the shuttle, Matt has become one of the most important members in Mission Control, as the ultimate responsibility for decisions made during the flight lies on his shoulders.

After graduating from Texas A&M, Matt started working at NASA's Johnson Space Center in Houston as a Mission Control flight dynamics officer. In this position he was responsible for monitoring the location and performance of the shuttle during flight, as well as planning maneuvers. He then took a position with the Canadian Space Agency in Montreal, working with the Canadarm2 robotic arm on the International Space Station. He eventually returned to the Johnson Space Center, where he became a flight director. Matt has worked on 40 shuttle missions in flight dynamics, including 27 launches and 11 landings.

Throughout his life, Matt has been committed to pursuing his dreams. His achievements serve as an excellent example of how to make your dreams a reality, and he serves as a true role model for children across the country.

Madam Speaker, in recognition of his tremendous service, for his leadership, his dedication to our country, I ask this honorable body join me in honoring NASA flight director Matt Abbott.

I thank the gentleman from Louisiana.

Mr. Speaker, I listened very carefully to the chairman of the Ways and Means Committee, as he opened up, on what we agreed on and maybe what we disagreed on, and I have listened to a number of speakers. First of all, on the Ways and Means Committee members before me, I want to be associated with the observations and comments that they've brought to the floor today.

We opened this year, as the ranking member of the subcommittee, Mr. English, mentioned, with hope and optimism that we were going to repeal AMT; not reform it, not push it around, not raise taxes on it, but repeal it. As time ticked on, we had hearings, and hope faded. Hope then got cloudy, then hope wasn't real.

As we're sitting here in November, the Secretary of Treasury has responded to my letter and letters written by Mr. McCrery and Mr. Grassley, and in that, answering the fact

that we have missed some dates, missing one right now on November 6, that the IRS is going to print the 1040 forms, and next week, on November 16, they're going to print all the other forms. Now, I take that a little personal because last year, the 1-year patch, without a tax increase, was passed on an initiative that I introduced and was put into a bill in May, May of last year, without a tax increase. And you know what? This body passed it 414-4; didn't have tax increases, didn't have a lot of gimmicks, just got the job done.

I want to remind my colleagues on the other side of the aisle, you're not just touching 23 million Americans by this delay in the failure and the shortcoming of getting an agreement between the two bodies and the White House; you're making it about 49 million, because the letter also said, from the Secretary, that others are impacted by this needless delay.

Now, I don't mind having a constitutional message about our prerogative in the House to initiate anything we want in Ways and Means relative to taxes, but there comes a time, even for a new majority of the other side, to understand when pragmatism sets in, that we didn't get a permanent fix, we didn't even get a repeal, we didn't even get a 1-year patch, however you wanted it. What we got is, today, a failed approach.

And to the new Members who have never served in this body before on either side of the aisle, you're going to hear ``tax gap,'' ``tax fairness,'' ``tax equity.'' I promise you that results right here in this bill as a tax increase.

Vote ``no'' on this bill, and let's get the work done before we go home for Thanksgiving.

I thank the gentleman from Pennsylvania.

I want to thank both Chairman Rangel and Ranking Member McCrery, as well as Chairman Neal and Chairman McDermott and Ranking Members English and Weller, for their outstanding leadership in crafting this legislation.

Madam Speaker, we come together today not as Democrats and Republicans but as Americans. We are united in our respect for those who wear the uniform of the United States armed services. We are united in our desire to ensure that Federal programs within the Ways and Means Committee's jurisdiction, from the Tax Code to the SSI program, work effectively for members of the military, veterans, first responders and their families. I strongly urge the passage of this legislation.

I would like to highlight two specific provisions in the bill that have been of particular interest to me during my time in Congress. The first provision, section 202, is modeled on legislation, the Blind Veterans Fairness Act, that I first introduced in the year 2000. My legislation would correct a problem in the Federal SSI rules that affects blind veterans in four States, New York, New Jersey, Pennsylvania and Massachusetts, that provide these veterans modest annuities in recognition of the substantial sacrifice they have made in service to our country.

Regrettably, under current Federal law, these State annuities actually reduce any SSI payments for which blind veterans would otherwise be eligible. As we heard from Michelle LaRock of New York's Division of Veterans' Affairs at our Ways and Means Committee hearing 3 weeks ago, this quirk in the Federal SSI rules creates a hardship not only for the affected veterans themselves, but for the States that administer these annuity programs as well.

As in years past, the bill I have introduced in the 110th Congress, H.R. 649, has enjoyed bipartisan support. It has been strongly endorsed by the Blinded Veterans Association. I would also like to publicly thank Chairman Rangel, not just the Chair of our committee but the dean of my State's congressional delegation, for his cosponsorship of prior versions of this bill, and I look forward to working closely with him to see the proposal finally enacted into law.

Let me turn briefly to a separate provision, section 107 of the bill, which will permanently allow penalty-free withdrawals from IRAs, 401(k)'s and other retirement funds for Reservists and National Guardsmen called to active duty. As we all know, when Guardsmen and Reservists are called up, they often face significant reductions in pay compared to their civilian salaries, putting an economic strain on their families.

To lessen this economic hardship, many of them chose to draw down on their retirement funds. Unfortunately, under prior law, they faced a 10 percent early withdrawal tax when they did so, and they faced restrictions on making repayments to their retirement funds upon returning from active duty.

Last year's Pension Protection Act provided relief from this penalty tax and permitted unlimited repayments within 2 years after leaving active duty, but only for Guardsmen or Reservists called to active duty before December 31, 2007.

To ensure that this important relief remains available on a permanent basis going forward, I introduced H.R. 867, the Guardsmen and Reservist Tax Fairness Act, on February 7 of this year. This legislation has also attracted a bipartisan group of cosponsors, as well as endorsements from several leading veteran service organizations. I look forward to seeing these commonsense changes enacted into law over the coming weeks.

I urge a ``yes'' vote.

Blinded Veterans Association,

Washington, DC, February 9, 2007.

Hon. Thomas Reynolds,

House of Representatives,

Washington, DC.

Dear Representative Reynolds: On behalf of the Blinded

Veterans Association (BVA), the only congressionally

chartered Veterans Service Organization exclusively dedicated

to serving the needs of our Nation's blinded veterans and

their families we commend you for the introduction of H.R.

649 ``Blind Veterans Fairness Act.'' BVA is grateful to you

for sponsoring this bill for those blind veterans who have

their state annuities counted against the income levels by

Social Security. Cornell University Disability Statistics

research has found that the poverty rates for the disabled

working age population in 2004, ages 21-64, has risen to 3.33

times the rate of poverty for the non-disabled population.

They also found that the poverty rate for those with a

sensory disability in this age group was 24.6% in 2005 as

compared to 9.3% for the non-disability population.

These annuities from the states are clearly meant as a

``gift'' to help prevent these veterans from falling into

these terrible statistics and in appreciation for their

service to our nation. BVA appreciates that you not only

understand this issue, but are willing to take action to

correct the problems blinded veterans have had with these

annuities from some states being provided to them. These

should not be considered additional income by Social

Security, but instead a special disability benefit for their

service to our grateful nation. This penalty should be

removed and the annuities excluded from all income for

purposes of SSI for purposes of pension benefits.

BVA strongly supports H.R. 649, and we appreciate all your

strong efforts in regards to this issue for blinded veterans.

Sincerely,

Thomas Zampieri,

Director, Government Relations.

Mr. Speaker, I rise in strong opposition to the bill before us today. I thank the ranking member of the Ways and Means Committee for his ongoing efforts to defeat this misguided proposal and other members of the Ways and Means Committee who have also carried a strong voice, such as the gentleman from Texas.

For some Members of this body and both sides of the debate, this issue is simply about policy. We understand that. For them, it is an abstract question about whether private collection agencies or so- called PCAs should be able to play a limited, supplementary role in the IRS's efforts to collect delinquent tax debt. But for me and the area I represent in western New York, it is about both policy and much more than that. It is about jobs.

As a Member of Congress who represents rural Wyoming County in western New York, I am actually more familiar than most with the work that PCAs do. After all, the largest single private employer in Wyoming County is Pioneer Credit Recovery. It is one of only two companies nationwide that the IRS has selected to help get its important program underway.

Mr. Speaker, Pioneer Credit is a highly respected, local business that has created more than 1,400 high-paying jobs for families living in either my district or neighboring districts around Buffalo and Rochester. As my fellow members of the western New York's congressional delegation know, these jobs have been created in a region that has faced serious economic challenges. As I have listened today to this debate, sometimes you wonder just exactly who might be on that phone. These are highly trained rural folks coming from communities much like the gentleman from North Dakota has in North Dakota. It just happens to be a rural area of a large State of New York. For some people, that is their only income to the household. For some it is a supplement to farm income or manufacturing income. And I have looked at some of these people I have known for years. I have seen some of these people where I have just met them the day they went to work to have a meaningful job, after maybe a manufacturing shop closed down in Wyoming County. Or they weren't able to stay on the family farm.

But they are hardworking, decent people who subscribe to Federal and State laws that this honorable body actually has set forth in the past that deliberated and said, you will function as collectors. I know one thing about the people's House: We have had a lot of people from a lot of different backgrounds, but you know, as a small businessman myself, I promise you the only time I send out, in the days I was in business, to a private collection agency was when I couldn't collect that money for an insurance premium or commissions owed and I had no other recourse but to look in private collection. They professionally got the job done to bring back money that was owed.

As my colleague, Mr. Brady, has pointed out, the IRS sometimes had four chances to kind of get this money and still didn't come back with it. We looked at an opportunity, could we gain over 10 years over $1 billion in order to increase the revenues or address the tax gap that my colleague from Florida talked about.

So when the IRS contract was allowed to Pioneer Credit to turn an empty warehouse in Perry, New York, into a thriving job center for newly hired employees, it has been a great economic success story for part of western New York that desperately needed it, and it began to produce the results that the Congress and the IRS expected. So as someone who has fought to give the IRS the authority to partner with these private companies in the first place, I am deeply troubled that the new majority is now threatening to deauthorize this important program just as it gets underway. If this program is allowed to continue, Pioneer Credit will be given the opportunity to compete for future IRS contracts that could create many additional jobs in the area I represent. Killing this program, on the other hand, would cost my constituents real jobs at a time when Congress should be working to expand employment opportunities, particularly in hard-hit areas that are struggling economically.

I would also note, Mr. Speaker, that under the Democrats' PAYGO rules, proposals that reduce anticipated Federal revenues must be offset by other provisions that raise revenue. Thus their proposal to eliminate the PCA tax collection program, which is expected to net at least that billion dollars over the next decade, also requires them to raise $1 billion in new taxes somewhere else.

This bill is wrong on policy. It is wrong on job creation. It is wrong on tax hikes. I urge a ``no'' vote.

Mr. Speaker, this won't be the first or last time that debate on the floor comes on disagreements of policy or well-crafted rhetoric that goes to the extreme of bringing forth one's position. But I think that my colleague, Mr. Brady, and others who have spoken in the aspect that private collection has worked in the portion that has been assigned in their mission as they get underway, that the complexity of collecting taxes of the tax gap, which, if you recognize the tax gap as a challenge of revenue, one that this Congress very quickly and gladly put forth, that $1 billion of collections through private collection agencies would be achieved, and as we now embark on that, we have listened to tough language and rhetoric, and I sat through most of those public hearings, crafting today the reflection of what they thought they heard in those hearings. I think that if we look at results as we move towards the opportunity of seeing private collection, because one thing that has been omitted, if I am not mistaken, regardless of what this body does, the other body will have a serious challenge in seeing legislation passed, and there is a Presidential veto that says that it will not occur.

So as we measure in the future the work that has been done that has been assigned to the PCAs, and we look at the aspect of a goal that all of us would have, that the IRS has tools to do their job so that collection continues, I think we will also see in short time that private collection agencies have done the mission they were asked to do in the pilot out in Iowa and in western New York, and I think as we give that a chance, not only will this legislation not be needed, but it will not see the light of day.

Madam Speaker, while I was unavoidably absent during the final passage of the Conference Report to H.R. 2669, had I been present, I would have voted in support of the Conference Report. The College Cost Reduction Act will add nearly $11.5 billion for Pell Grants, which will directly help 5.5 million low-income students attend college. While I had serious concerns about much of the runaway spending included in the legislation, I supported this legislation because it is important that higher education become more accessible and affordable for working families. The Conference Report included measures to achieve this goal. I have long supported and was pleased to see substantial funding increases in particular for Pell Grants and TRIO/Upward Bound. As a parent and a grandparent, I understand the need to ensure students are afforded every opportunity to attend college.