Dave Camp

Mr. CAMP of Michigan

Mr. CAMP of Michigan. Madam Speaker, may I ask how much time remains.

Mr. CAMP of Michigan. Madam Speaker, I do not have any speakers at this time, and I reserve the balance of my time.

Mr. CAMP of Michigan. Madam Speaker, I yield myself such time as I may consume. Our legislation does provide AMT relief for middle-income taxpayers inside of reconciliation. Again, I go back to why would anyone want a tax cut? Obviously, lowering tax rates on capital gains and dividends helps contribute to the long-run economic growth and expansion of this country. Sixty percent of the people who realize capital gains have incomes below $100,000. Twenty-five percent of the people with dividend income have incomes below $50,000. Capital gains tax receipts have been increasing since the 2003 tax cut, and over the past year 2 million jobs were created, and the unemployment rate is at its lowest level since July of 2001 at 4.8 percent. Congress must continue to encourage investment and economic growth and, also, Congress must encourage Americans to plan for the long term. A 3-year tax provision does not allow for long-term financial planning, particularly for the 70 million baby boomers that are going into retirement in the near future. So, again, I would urge Members to oppose this motion to instruct. Madam Speaker, I reserve the balance of my time.

Mr. CAMP of Michigan. Madam Speaker, I yield 3 minutes to the gentleman from New York (Mr. Reynolds), a distinguished member of the Ways and Means Committee. (Mr. REYNOLDS asked and was given permission to revise and extend his remarks.)

Mr. CAMP of Michigan. Madam Speaker, will the gentleman yield?

Mr. CAMP of Michigan. Madam Speaker, despite all of the respect that I have for the ranking member, I have to oppose the motion to instruct. If looked at at face value, this motion to instruct adds to the deficit. Despite all of the tax increases in the Senate version, there are not enough tax increases to cover the cost of this motion to instruct. Let me just say the motion to instruct seeks to include AMT relief in reconciliation, even though we have already in the House passed AMT relief. The House voted 414-4 to move the alternative minimum tax outside of reconciliation. AMT relief cannot be passed within reconciliation without raising taxes or, as I said, violating the budget. Some AMT relief for middle- income taxpayers is inside, included in reconciliation. The bill does have a provision that allows families who claim personal tax credits targeted to lower- and middle-income families to use those credits to offset their AMT liability. The House extends both forms of AMT relief without raising taxes as the Senate did. And let me just say, this motion to instruct excludes our effort to extend the lower rates on capital gains and dividends, which provides broad-based tax relief. The motion to instruct seeks to deny that broad-based tax relief by refusing to extend the lower rates on capital gains and dividends. The AMT extension, which my friends on the other side are so in favor of, benefits a targeted class of people in a few States. Lower rates on capital gains and dividends benefits a much broader group of taxpayers. According to the Joint Committee on Taxation, the extension of the 2001 AMT provision affects only 14 million taxpayers. In contrast, capital gains are reported by more than 26 million taxpayers and dividends are earned by more than 35 million taxpayers. Many of these taxpayers would be adversely affected when lower rates expire in 2009. Also, Joint Committee data shows that in 2005 95 percent of taxpayers hit by the AMT had incomes above $100,000. The AMT affected less than 5 percent of taxpayers with incomes below $100,000, only one-tenth of a percent had incomes below $50,000. In contrast, nearly 60 percent of the taxpayers with incomes less than $100,000 had income from capital gains and dividends. One in five taxpayers with capital gains, and one in four taxpayers with dividends have incomes below $50,000. Let me also just say that H.R. 4297 is within the current budget constraints. The congressionally approved budget allows for up to $70 billion in reconciliation tax relief, and H.R. 4297 complies with the budget. The motion to instruct seems to indicate that my friends on the other side want no action on the tax reconciliation bill. They do nothing about the expiring provisions which would lapse, including several items many of my friends on the other side have talked about, including the R&D tax credit, Work Opportunity Tax Credit, and Qualified Zone Academy Bonds. Also the motion implies that the conferees should accept tax increases proposed by the Senate. That would lead to raising taxes in a number of ways, which have drawn bipartisan concern. So for these reasons, I oppose the motion to instruct. Madam Speaker, I reserve the balance of my time.

Mr. CAMP of Michigan. Madam Speaker, I claim the time in opposition.

Mr. CAMP of Michigan. We have paid for our entire reconciliation.

Mr. CAMP

Mr. CAMP. Mr. Speaker, I rise today to pay tribute to Mr. Eldon Powell. Mr. Powell served in the Army under General Patton with the 90th Infantry Division in Europe from 1944 to 1946. He has been awarded the Bronze Star Medal for distinguishing himself by heroic service. To best honor Mr. Powell, I would like to share with the members of this distinguished House the poem written, entitled ``By My Dad's Side'' by his daughter, Sandra L. Moore. Always I'll remember being by my Dad's side Watching him slowly rise to his feet To pay homage to His American Flag The look on his face His posture secure His hand over his heart His eyes set only upon ``Her'' And without saying a word And giving no thought to the crowd My Dad once again would remember it all As he would rise to his feet and pay homage to his call His Call to his Country His God given Word To uphold and defend what was good, what was pure To defend what was Holy To defend what was True To defend what God Himself values Precious and Pure And so on every occasion, every ball game, parade When His American Flag would so proudly wave There would be my Dad with his eyes fixed and gazed His hand holds his heart, for at times it does bleed For all those he remembers whose lives bought Freedom for you and me His hand holds his heart as it swells deep from Pride Remembering with Honor those who survived His hand holds his heart as he humbly cries Giving thanks to His God that Freedom is still Well and Alive Yes, I'll always remember being by my Dad's side Where I learned Honor, Respect, Sacrifice and Pride Where Reverence & Allegiance were Values that grew Where Love of God and Country and all Mankind rang True Yes, I'll always remember being by my Dad's side Watching and leaning with tears in my eyes His reaffirming his Pledge Re-pledging his Vows Vowing again and again his Allegiance with Pride Giving Honor and Thanks for ``Our'' American Flag Just ask any veteran about American Pride They all tell a story with tears in their eyes A brotherhood bonded by the willing sacrifices of men Who for God and Country would do it all over again God Bless America May God bless Eldon Powell and all our Veterans. They truly are American Heroes.

Mr. CAMP

Mr. CAMP. Mr. Speaker, I rise today to pay tribute to Mr. Franklin ``Frank'' Ford recognizing his recently revealed contributions to the U.S.-led allied victory in World War II as designer and superintendent for The Dow Chemical Company's ethylene plant. During Word War II, Imperial Japan blocked shipments of natural rubber to the U.S. As necessity is the mother of invention, the U.S. was forced to develop synthetic rubber to relieve the U.S. military of its dependence on imported rubber. Mr. Ford and a team of dedicated engineers at The Dow Chemical Company in Midland, Michigan, developed and pioneered domestic ethylene production, which as the precursor to synthetic rubber, was used to supply the U.S. with critical resources necessary to win the war, Ethylene continues to have practical, widespread applications today in plastic bags, paints, antifreeze and car components. Until recently Mr. Ford's family was unaware of his impact on Dow and his important role in developing ethylene. He is being honored today at the Herbert D. Doan Historical Museum in Midland and finally getting the recognition he and others deserve. Like so many in Mr. Ford's generation, he never asked for any credit, recognition or accolades for his work or the work of his team during the war. He did not ask for a blue ribbon or a tickertape parade. He is among the many anonymous Americans who quietly, selflessly did his job on the home front to win the war overseas. That is why more than 60 years after World War II it is a privilege for me to publicly recognize Mr. Ford and his team at The Dow Chemical Company as unsung heroes and acknowledge their contributions to the U.S. during a time of world war.

Mr. CAMP of Michigan

Mr. CAMP of Michigan. Mr. Speaker, I thank the chairman for yielding, and I rise to oppose this Democrat motion. This motion takes some parts of our tax agenda and says they are important, like the savers credit, the direct payments of tax refunds to IRAs, but ignores so many other parts of our bill that are critical, like the permanency of the pension and IRA provisions, many of which were in the Portman-Cardin legislation which this House has debated long before, I noticed Mr. Cardin was here earlier, and long-term care insurance, which is a critical issue, and FSA rollover, which many of my friends on the other side are vitally interested in as well. So this motion to instruct is really incomplete, and I would urge all Members to vote against it. With regard to airlines, I am vitally interested in the viability of our airline industry and certainly their ability to provide pensions for their employees. But I think to simply accept the Senate language would not allow us to go to conference and deal with the airline issues in a comprehensive and thorough way in conference. So I would urge Members, especially those Members interested in the airline issue, to oppose this motion to instruct.

Mr. CAMP of Michigan

Mr. CAMP of Michigan. Mr. Speaker, I thank the gentleman for yielding me this time. I rise in opposition to this motion to instruct. This motion is really based on a flawed rationale and flawed thinking. They are saying that we drop the 2-year extension on reduced rates for capital gains and dividends, somehow thinking that is going to help the deficit. First of all, that would be a tax increase on all those investors. As we have seen with employee stock ownership and employee-owned companies on the rise, stock ownership on the rise, more Americans participating in the stock market and investments than ever before, more than half, this would be a huge problem and tax increase for them. Not only that, as we have seen when President Clinton was President in 1997 and signed a reduction in capital gains rates from 28 to 20 percent, we saw that then increased revenue to the government because of the economic growth that came out of that increased investment. We have seen the same with our recent capital gains and dividend reductions. For example, the Congressional Budget Office says that receipts to the government have not declined, but have increased significantly by 45 percent, and that is by reducing the capital gain rates from 20 to 15 percent because not only did that double the realization of gains, and one reason was there was a higher return on investment as that tax declined, but also there was this unlocking effect where investors could sell their assets and move into other investments that then grew more rapidly. So we had this growth and dynamic aspect of the economy that took over that is so critical. The CBO also found that tax collections from what they call nonwithheld tax receipts also jumped dramatically by 32 percent. We have seen dividend payouts from American companies virtually triple as a result of this reduction. So we have seen that this is tremendous benefit for the American people as their investments grow and they become more well off, and this is all income levels. Anybody who is part of an employee-owned company can participate, anybody can participate in the market, it is not just the high-income people, and we have seen lower and lower income levels participating in the stock market over times because of these changes. So I think it is critical that we not approve this motion to instruct, that we reject it for the reasons that to create economic growth, increase prosperity and give every American a shot at the American dream, we must extend the reduction in capital gains and dividends.

Mr. CAMP of Michigan. Mr. Speaker, I yield myself such time as I may consume. First let me just say that lowering tax rates on capital gains and dividends helps contribute to the long-run economic growth and expansion of this country. Sixty percent of the people who realize capital gains have incomes below $100,000. Twenty-five percent of the people who have dividend income have incomes below $50,000. Capital gains tax receipts have been increasing since the 2003 tax cut. More companies have been offering dividends since the 2003 tax cut. These pro-growth policies are getting America moving again. In the past 12 months, 2 million jobs were created, and the unemployment rate is at its lowest level since July 2001. Do not derail or reverse that growth. Second, I would say the House voted 414 to 4 to move the alternative minimum tax outside of reconciliation. The House voted in a majority vote just a few days ago to include capital gains relief inside of reconciliation. This motion to instruct is a clear attempt not to instruct the conferees, but to reverse what the will of the House has voted just a short time ago. I urge Members to vote ``no'' on this motion to instruct. Mr. Speaker, I yield back the balance of my time.

Mr. CAMP of Michigan. Mr. Speaker, I would just say briefly that the threat of these expiring will have an effect on business and individuals from investment decisions well before midnight on December 31, 2008. So it is important that we act now while we can, because that will send a very strong signal that these reductions in investment taxes are here to stay, which will continue to encourage the kind of investment and growth that has created the job relief that the gentleman from Pennsylvania (Mr. English), or job creation that the gentleman from Pennsylvania (Mr. English), mentioned, over 2 million jobs. And it is so important that we continue to do that. Mr. Speaker, I reserve the balance of my time.

Mr. CAMP of Michigan. Mr. Speaker, first let me say, we are certainly not going to pay for it by raising taxes as our friends in the Senate did by including AMT in reconciliation. And let me just say that we have seen since we reduced investment taxes in 2003, we have seen a doubling of capital gains realizations, meaning, a huge increase in the amount of revenue generated by capital gains sales and a huge 45 percent increase in tax receipts as a result. This is part of the revenue that I hear from the other side. And so what happens when investment taxes are reduced is revenues to the government increase. That occurred in 1997 when President Clinton signed a bill that reduced investment taxes, that occurred in 2003 when President Bush signed a bill reducing investment taxes. And so one of the things that you have seen from the investment community is that even though we have seen dramatic, positive revenues to the government as a result of decreasing these taxes, a lot of people in the investment community say that if we do not enact an extension, that would be a very negative signal for Wall Street. Others have said you really will not even see the full potential of realization from the effects of lower rates on investment taxes until they are perceived to be permanent. And that is from the Congressional Budget Office. So the threat of these taxes expiring will affect business decisions well before they do expire and personal investment decisions. So that is why it is important we act now. So, again, I urge Members to reject this motion to instruct. Mr. Speaker, I reserve the balance of my time.

Mr. CAMP of Michigan. Well, because the investment taxes actually increase.

Mr. CAMP of Michigan. Well, we are certainly not going to raise taxes like the Senate did.

Mr. CAMP of Michigan. Well, because your whole assumption is based on the flawed principle that if we reduce investment taxes, revenues to the government decline.

Mr. CAMP of Michigan. Mr. Speaker, will the gentleman yield?

Mr. CAMP of Michigan. Mr. Speaker, I yield myself such time as I may consume. I would just say for the Record, the will of the House by a vast majority extended both kinds of AMT relief we have been discussing today without raising taxes as the Senate did. I just want to say that one in five taxpayers, or 20 percent with capital gains, and one in four taxpayers, 25 percent of the taxpayers with dividends, have incomes below $50,000, so this clearly is an opportunity for Americans to begin to become part of the American dream by investing and growing that income. To not extend the tax relief would be to raise taxes, which would be the wrong thing to do. Mr. Speaker, I yield such time as he may consume to the gentleman from Texas (Mr. Brady), a distinguished member of the Ways and Means Committee.

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

Mr. CAMP of Michigan. Mr. Speaker, I yield myself such time as I may consume. I note that the House voted 414-4 to move the alternative minimum tax outside of reconciliation to pass alternative minimum tax relief. I was sincere in my vote. I would just inquire whether those on the other side of the aisle who voted for this bill were sincere in their votes.

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

Mr. CAMP of Michigan

Mr. CAMP of Michigan. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on H.R. 4297.

Mr. CAMP of Michigan

Mr. CAMP of Michigan. Mr. Speaker, I rise today to pay tribute to George Weeks, a distinguished resident of my district and a man whose home number is rung by American Presidents, U.S. Senators and Representatives, Governors, state legislators and local officials alike. As Michigan's foremost political columnist, a mention in George's tri-weekly submissions is courted by candidates for reasons far beyond the sheer volume of his readership. In a career that has spanned 5 decades and nearly as many continents, George's work epitomizes the fairness preached in j-schools across the country. It is no surprise that his praise is sought by both Republicans and Democrats, and it is certainly no surprise that George was inducted into the Michigan Journalism Hall of Fame long before his retirement. Michigan politics has been well served by this honored scribe. As George enters ``retirement,'' and the Detroit News loses its Glen Arbor Bureau, his commentary will be missed, but his work will long be remembered. On behalf of the Fourth Congressional District, I extend best wishes to George and Mollie Weeks and sincerely thank them for their service to the great state of Michigan.