Lane Evans

Mr. EVANS

Mr. EVANS. Mr. Chairman, in their zeal to balance the Federal budget, the new majority will be forcing working Americans to make sacrifices to cut the deficit. Sacrifices for a debt they did not create. Sacrifices that will cut their hard-earned benefits. And sacrifices that will threaten their future standard of living and that of their children. While these cuts focus on supposed government waste, one thing has been ignored; Government giveaways or the $200 billion in corporate welfare we let big business and foreign multinationals pocket each year in the form of tax loopholes and shelters. It strains belief that we can even start to talk about sacrifice to middle class Americans who have seen their earning power decrease, when industry is not doing its fair share towards reducing the deficit. We must do better. Today, I am introducing the Corporate Welfare Reduction Act of 1995. The bill will close a number of loopholes that provide unfair tax breaks for multinationals and foreign corporations. For example, the bill would eliminate the following provisions that: Allow multinationals to use excess foreign tax credits generated by foreign operations to offset U.S. income tax under the so-called ``title passage rule''. Exempt foreign investors from paying U.S. tax on the interest they receive from U.S. borrowing. Allow multinational oil and gas companies to claim foreign tax credits for some of the ordinary costs of doing business in foreign countries. Enable multinationals to hide behind alleged restrictions in local law in order to avoid complying with transfer pricing rules. Allow multinationals to profit from the exemption from U.S. tax of their employees' foreign earned income regardless of whether or not that income is subject to foreign tax. Exempt foreign investors from paying capital gains tax from the sale of the stock in U.S. corporations. The savings from these provisions will then be applied to reducing the deficit, with a small portion going to export promotion programs for small and medium-sized U.S. businesses. I urge my colleagues to join me in sponsoring this legislation and put an end to handouts for big business and foreign corporations. We offer a funding bonus of up to 10 percent for States that reduce out-of-wedlock births. We provide level funding of $15.4 billion a year for 5 years. We create a $1 billion Federal rainy day borrowing fund for recessions or emergencies. In other words, we are not so dogmatic as to believe there will not be emergencies, we are not so dogmatic as to believe there will not be rolling readjustments in our economy, part of a free society from time to time, people encounter tough times, and we are willing to understand and deal with that. We allow States to set up their own rainy day funds and pocket any savings over 120 percent of their annual grant amount. We set aside $100 million a year in a fund to ease pressures on States with rapid population growth. Indeed, the great State of Arizona and my own Sixth District is experiencing rapid population growth. This plan again accommodates those changes in our society. We will save untold billions of dollars over 5 years as opposed to the current system.

Mr. EVANS

Mr. EVANS. Mr. Chairman, this rescissions package is more of the same old story. Let's steal from the poor to give to the rich. These cuts will hit some of the most vulnerable people in our society--our children, seniors, veterans, and the poor--to pay for their contract on America which is nothing more than a contract for big business and the wealthy in this country. We are all in agreement that we must cut wasteful and unnecessary spending. However, this bill takes a meat ax to some of this country's most successful programs including the Low-Income Home Energy Assistance Program, veterans assistance, summer jobs, WIC, and a host of others that benefit the needy. The total elimination of LIHEAP is a particularly unfair hit on Illinois and entire Northeast/Midwest regions of our country where winters are particularly severe. Just last year, President Clinton was faced with declaring a natural disaster in these regions due to the dangerously low temperatures. LIHEAP was able to rescue millions of families from last year's unbearable harsh weather. This rescission package also says to our country's veterans that we don't appreciate their years of dedicated service. This package rescinds $206 million from the already beleaguered veterans budget. It axes out funds intended for much-needed medical equipment, and ambulatory care facilities. Finally, the majority continues with its unjust assault on our children by slashing moneys for Women, Infants, and Children Program, education programs for disadvantaged youth, drug-free school zones, and children and family services programs. Mr. Chairman, we have a responsibility to assist the helpless and the needy in our society. Let's not abandon them to provide unjustifiable tax cuts for wealthy individuals and corporations in this country.

Mr. EVANS

Mr. EVANS. Mr. Speaker, the Republican plan to decimate the school lunch program will penalize millions of America's kids, working families, and women, and the Republicans will use the savings to serve up a free lunch of tax cuts and tax concessions to millionaires and large multinational corporations. Conservatives often say that the deficit will be passed on to our kids, but their approach to deficit reduction will mean that our kids will pay now and that they will pay with their potential. Their block grant proposal will block the future of 140,000 kids in Illinois alone. The school lunch program is one of the most successful, one of the most cost-effective, and one of the most important programs that the Federal Government has ever administered. I urge my colleagues to stop the Republicans from keeping this program and America's kids hostage to the Republican Contract on America.

Mr. EVANS

Mr. EVANS. Mr. Speaker, I take great pride in joining my fellow colleagues and Marines in honoring the at Iowa Jima. The battle for Iowa Jima holds a special place in the history of the Marine Corps. In many ways, it established the Corps firmly in the American consciousness. The picture of six Marines raising the American flag on Mount Suribachi is perhaps the most memorable image from World War II to most Americans. Yet, it is only a symbol of the immense sacrifice it took to wrest the island from Japanese control. Iwo Jima was one of the bloodiest battles of the entire war. Some 6,800 American men died in the struggle for the Island, another 18,000 wounded. Roughly one out of every three marines who landed on the island became a casualty. I think the engraved words on the face of the Iowa Jima monument tell the story of the battle best, quoting Admiral Nimitz when he said: ``Among the Americans who served on Iwo Jima, uncommon valor was a common virtue.'' It is a testament to that valor that more Marines were awarded the Congressional Medal of Honor at Iowa Jima than in any other single battle in the history of the Corps. One of the 22 recipients, Captain Robert Dunlap, is a constituent. He was born in the town of Abingdon and now resides in Monmouth, Illinois. Let me quote to you from the citation given to Captain Dunlap when he was awarded our Nation's highest military honor. Defying uninterrupted blasts of Japanese artillery, mortar, rifle and machine gun fire, Capt. Dunlap led his troops in a determined advance from low ground uphill toward the steep cliffs from which the enemy poured a devastating rain of shrapnel and bullets, steadily inching forward until the tremendous volume of enemy fire from the caves located high to his front temporarily halted his progress. Determined not to yield, he crawled alone approximately 200 yards forward of his front lines, took observation at the base of the cliff 50 yards from Japanese lines, located the enemy positions and returned to his own lines where he relayed the vital information to supporting artillery and naval gunfire units. Persistently disregarding his own personal safety, he then placed himself in an exposed vantage point to direct more accurately the supporting fire working without respite for 2 days and 2 nights under constant enemy fire, skillfully directed a smashing bombardment against the almost impregnable Japanese positions despite numerous obstacles and heavy Marine casualties. A brilliant leader, Capt. Dunlap inspired his men to heroic efforts during this critical phase of the battle and by his decision, indomitable fighting spirit and daring tactics in the face of fanatic opposition, greatly accelerated the final decisive defeat of Japanese countermeasures in his sector and materially furthered continued advance of his company. His great personal valor and gallant spirit of self sacrifice throughout the bitter hostilities reflect highest credit upon Capt. Dunlap and the U.S. Naval Service. Mr. Speaker, the heroism of Captain Dunlap and the rest of the veterans of that conflict helped bring the end of the war closer. The capture of the island brought our strategic bombers within effective range of the Japanese mainland. It also saved lives. Over 2,000 B-29's used Iwo Jima as an emergency landing strip after the invasion. As a former marine, I salute Capt. Dunlap and all of the other veterans of the battle whose selfless service and sacrifice secured our freedoms, including my own cousin Jack * * * born in Rock Island, IL, and now living in Davenport Iowa, who served valiantly with the other marines in that conflict. I am so pleased and honored to have had this opportunity to join my fellow Veterans' Committee colleagues and former marines in this special order. Semper Fi to each and every one of you.

Mr. EVANS

Mr. EVANS. Mr. Chairman, I rise in strong opposition to this legislation. Mr. Chairman, this legislation is more nostalgia from the same people who in the eighties gave us the skyrocketing Federal deficit. The Soviet threat is long gone. The Russian military debacle in Chechnya should be a clear reminder of this. Yet, this blueprint for more defense spending would have us waste tens of billions of dollars on cold war weapon systems that make no sense in this new era. Billions on a star wars missile defense system that is not needed and will never work. Billions on exotic cold war programs, and billions on unnecessary operations funding when our forces are first rate and combat ready. Billions that we all know we just don't have. The Republican majority would like to have it both ways. They can promise all the money in the world on a shopping spree of unneeded programs and weapons. The hard part is coming up with the funds to do it or a threat to justify spending it. We have been down this road before. Let's not make the same mistake. I urge my colleagues to vote against this legislation.

Mr. EVANS

Mr. EVANS. Mr. Speaker, we do not have to sacrifice our principles for profit. Corporations can look beyond the bottom line to ensure that decent human and worker rights are guaranteed to their foreign workers. Some U.S. corporations, like Levi Strauss have articulated socially responsible policies and provided active oversight over these standards. They have shown that their considerable economic and social influence can be a force for positive change. Yet, many multinationals have not joined the movement to promote corporate responsibility. There are cases in some U.S. affiliated factories abroad, where children as young as five toil for more than 12 hours and less than 20 cents a day. In other instances, contractors are found to combine warehouse, workplace, and dormitory facilities contributing to dangerous and inhumane working and living conditions. We can and must do better. Today, 25 of my colleagues are joining me in reintroducing The Socially Responsible Business Practices Act of 1995. This bill calls for a voluntary code of conduct based on internationally recognized principles to ensure that U.S. foreign investment remains competitive while also creating a socially responsible climate for trade and investment. I urge my colleagues to cosponsor this legislation to ensure that international trade and investment is a positive force in all countries--not a license to exploit workers.

Mr. EVANS

Mr. EVANS. Mr. Speaker, the same old story still applies: The harder working Americans work the farther they fall behind. That is why it is so important to raise the minimum wage to a decent level. The Republican response to this problem is to argue that trickle down proposals will create better paying jobs. But corporate welfare does not lift all boats equally. Business Week has pointed this out in an article called ``Plumper Profits, Skimpier Paychecks.'' According to this article, only 81 percent of corporate incomes go to salaries and benefits, The lowest since 1969. Corporate America needs to adopt a new social contract with its workers, and so does the Republican Party. The first step is to support a fair and livable wage for all Americans.

Mr. EVANS

Mr. EVANS. Mr. Speaker, a vote for the three-fifths tax proposal is a vote to keep the gravy train running for fat cats and millionaires. It will make it more difficult to lift the burden off those who need tax relief most, working Americans. Under this proposal, it will be much tougher to touch the $200 billion a year in corporate welfare that big business is handed through tax loopholes and tax exemptions, and tax fairness will be harder to achieve because this proposal will put a virtual lock on tax cuts that the super-rich received in the 1980's. The new majority should be embarrassed that it is promoting a middle- class tax break while pushing changes that will make it more difficult to obtain tax fairness. I urge a ``no'' vote for this misguided proposal.