Mr. Speaker, I offer a privileged motion. Mr. Speaker, I yield myself such time as I may consume. I rise today to urge conferees on H.R. 1308, the child tax credit legislation, to do the right thing and act now to give lower-income…
Mr. Speaker, I offer a privileged motion.
Mr. Speaker, I yield myself such time as I may consume.
I rise today to urge conferees on H.R. 1308, the child tax credit legislation, to do the right thing and act now to give lower-income families the tax refunds they deserve. This Friday, Uncle Sam will drop checks in the mail to millions of families who will benefit from the child tax credit. However, if the House would simply put an end to stalling tactics over the Senate bill and act to extent the child tax credit, 4 million additional families would receive a much-needed check in the mail, and 2.5 million families would enjoy a larger check than they are currently scheduled to receive.
Earlier this year, this Congress passed a $350 billion tax cut bill that failed to provide families of low-income children with a child tax credit. The Senate acted in early June to extend the child tax credit to include low-income families. The Senate bill was deficit neutral, as its costs were offset by other revenues. The House responded to this $9.5 billion deficit-neutral Senate bill with a bloated $82 billion plan, every dime of which adds to a deficit that is already of staggering proportions. Why?
It is difficult to resist the conclusion that the House leadership chose this response to the Senate bill precisely because they knew it would be completely unacceptable to the Senate. This is perfect, right? Give the illusion of responding to a real problem when in fact the response makes the solution even more elusive.
Now, the House continues to stall, unwilling to give an inch so that low-income families can receive the same $1,000 child tax credit other families are expecting. We have an opportunity to call off the stonewalling and follow the Senate's lead in passing meaningful relief for low-income families and we should do it.
Refusing to take the time before Congress goes on vacation to provide low- and middle-income families with a child tax credit is nothing short of an assault on the working poor. At the present time, when our economy has taken a nose dive and families are forced to cut their budgets left and right, it defies logic to engage in such a blatant form of class warfare.
Any Member who thinks it is acceptable to leave town to go on vacation and to push off the urgent business of 6.5 million hardworking families is sending an unmistakable message about misplaced priorities. This kind of attitude may be acceptable in Washington, but it is not okay in my district. I am ashamed to return home to Long Island as the representative of a Federal Government that has turned a blind eye to the needs of the 20,000 families in my district estimated to lose out if we deny them their benefits without a fight.
If this House sees wisdom in giving millionaires alone a $90 billion tax break, certainly we can give families making between $10,500 and $26,000 a small break. That is $10,500 to $26,000.
Yet there is a great resistance to offsetting the cost of extending the child tax credit by reducing the dividend and capital gains relief flowing to millionaires by a remarkably trivial amount.
We were sent to Congress by people we represent to make choices. When the original conferees excluded families making from $10,500 to $26,000 from sharing in the benefit of the expanded tax credit, they had several options available to them. The cost of extending the child tax credit to these families is $3.5 billion, or one percent of the total cost of the bill. Surely somewhere in the remaining 99 percent of the bill, the conferees could have found $3.5 billion in adjustments, but they chose not to. Instead, they chose to remain within the $350 billion limit of the bill, arbitrary and illusory as it is, by telling these families, these working poor, that it was more important to assist millionaires than it was to assist them. That is the choice they made.
The tax cut is cleverly referred to as the Jobs and Growth Tax Relief Reconciliation Act of 2003. If the real goal of this tax cut bill, as stated in its title, is to create jobs and growth, I believe we would not be here tonight having this debate. If we were really interested in job growth, we would not be so concerned about a negligible decrease in the refund going to the wealthiest Americans who hold the largest pool of discretionary money and who are probably going to use this tax cut to bolster their savings accounts. If we were really interested in job growth, we would not hesitate to invest in lower-income working families who are going to immediately reinvest the money from the tax cuts in the economy.
Any observer of spending patterns will tell my colleagues that putting money into the pockets of those who need it the most will provide an immediate and welcome shot of adrenaline to our damaged economy.
Close to 12 million children nationwide and 43,000 children in my district stand to benefit from an expansion of the child tax credit to lower-income families. If these families receive their checks this summer, certainly our economy will benefit from an immediate economic stimulus. Their money is not going to go to savings accounts. Rather, their money will be reinvested because it will go to families in my district just in time to purchase back-to-school supplies for children.
One need not be a Nobel Laureate in economics to figure this out. If we put money in the hands of people who live paycheck to paycheck, and certainly families making $20,000 a year live paycheck to paycheck, they are going to spend it immediately on the necessities of life. Conversely, when we add to the income of those whose discretionary income is already generous, their spending and purchasing patterns are likely to be affected modestly or not at all. Where is the economic benefit? How many jobs will we really create?
I am here in the wee hours of the morning because I believe that Congress must not fail the American people by leaving town without extending the child tax credit to low-income families who so desperately need it. Earlier I mentioned the failure to provide relief to struggling families as emblematic of misplaced priorities. This is only the latest in a long line of misplaced priorities, and I find it very troubling.
Our government seems to think it is okay to crack down on low-income children in the school lunch program, children and families who make less than $23,000 a year, while Congress refuses to address the issue of offshore tax havens. It is ludicrous to spend time taking sandwiches away from low-income children while continuing to allow large corporations a free pass on offshore tax havens costing taxpayers billions of dollars a year.
Similarly, it makes no sense to devote government resources to crack down on filers of the earned income tax credit who earn less than $33,000 per year, while we are giving millionaires billions of dollars in tax breaks; and it is certainly counterintuitive to keep a child tax credit out of the hands of working families who will use it to care for the immediate needs of their family and boost our economy. This is more class warfare; and if we have any decency as a Nation, we will see to it that it stops.
President Bush has urged us to do right by these families, and I urge my colleagues to do the same. We should put an end to these delaying tactics and deliver immediate tax relief to our Nation's neediest children.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume, and I want to thank the gentleman from Missouri and commend him for being here with us this evening. This is certainly a very important subject and it deserves full and complete debate.
He is quite right that the subject of our votes on the tax bills that have come before us is a matter for discussion at another time. I would say simply that I would be delighted to vote for a tax cut package that is properly targeted to the families that need it the most and is not obscured by a package that provides tax relief to people who need it the least.
Mr. Speaker, I am pleased to yield 6 minutes to the distinguished gentlewoman from Connecticut (Ms. DeLauro).
Mr. Speaker, I yield myself such time as I may consume.
There has been some discussion of what the majority leader did or did not say. One thing he was widely quoted as saying with respect to this issue is, he said there were a lot of other things that were much more important for this House to deal with than by expanding this credit. And I think that statement speaks volumes with respect to the order or the level of priority with which the majority treats this issue.
Mr. Speaker, I yield 7 minutes to the distinguished gentleman from North Carolina (Mr. Miller).
(Mr. MILLER of North Carolina asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 2 additional minutes to the gentleman from North Carolina (Mr. Miller).
Mr. Speaker, I yield 5 minutes to the distinguished gentlewoman from California (Ms. Linda T. Sanchez).
(Ms. LINDA T. SANCHEZ of California asked and was given permission to revise and extend her remarks.)
Mr. Speaker, I yield myself such time as I may consume.
The hour is late; so let me say two quick points. One, as a clarification, the House-passed bill does, in fact, deny the child tax credit to military families in combat zones. And, secondly, let me say that if the majority party were as serious about providing this credit to these needy families as they profess to be, then we would be passing the Senate bill now. We can get this done before we go home on Friday or Saturday or whenever it is we are going to go home. It has already passed the Senate 94 to two. It is fair. It provides an immediate benefit, and it does not worsen an already staggering deficit situation for this country that imperils our ability to provide the kinds of services that our people in this country need and deserve out into the future.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.