Wally Herger

Mr. HERGER

Mr. HERGER. Mr. Speaker, here is a real-world example of why this legislation is so crucially important. In 1995, a storm leveled 30,000 acres of forestland in the northern California district I represent. This blowdown increased the fuel load in the forest by as much as 500 percent. Immediate action was needed to protect the landscape and, thereby, communities from catastrophic fire. Forest Service experts said it is not a matter of if a fire will occur, but how extensive the damage will be unless restoration proceeds immediately. But timely restoration work was mired in paperwork, appeals, and frivolous litigation. Four years later, the Megram fire swept through the area, fueled by the timber that was left to die on the forest floor. Thousands of acres that could have been protected were destroyed and will take a lifetime to recover. These two photos demonstrate the consequences of delay and inaction. This first photo, taken in 2004, shows the results of prompt reforestation efforts following the volcano fire of 1960. In 1960, Federal managers were able to act quickly and reforestation was successful. Today, foresters cannot act quickly because of red tape, and destroyed landscapes that you see on the left is the result. This other photo, taken in the Tahoe National Forest, shows just how deadly catastrophic fire can be to the forests and surrounding environments. Mr. Speaker, delay is a recipe for disaster. Swift action is needed to protect our forests and communities from future tragedies like that which occurred in my district. I urge support for the rule and H.R. 4200.

Mr. HERGER

Mr. HERGER. Mr. Speaker, I rise in strong support of the tax relief before us. Of the major provisions of the tax reconciliation, two particularly stand out as encouraging economic expansion and continued job creation: the 2-year extension of the current 5 percent capital gains and dividend rates and the continuation of section 179 expensing limits. I have long supported enhanced small business expensing through legislation, and I am pleased this provision was included in the final bill. Studies show that a majority of small firms benefit from expensing, helping to speed up cost recovery on new investment, contributing to small business growth. Since small businesses provide roughly two-thirds of new job creation in the United States, such growth translates into new jobs for Americans. I have also heard from northern California seniors about the importance of capital gains and dividends to their retirement income, and they are not alone. Future tax rates on investment earnings affect the decisions that families and businesses make today. Extending the lower rates for capital gains and dividends provides tax certainty, helping to boost investment. For proof, we need look no further than today's Dow Jones Industrial Average, again reaching historic highs. According to a Wall Street Journal piece from a few days ago, capital gains tax Federal receipts rose 79 percent after the new rates went into effect in 2003; dividend tax receipts rose 35 percent. This is further evidence that the lower rates actually produce increased revenues. Mr. Speaker, I urge everyone's support.

Mr. HERGER

Mr. HERGER. Mr. Speaker, I rise in strong support of H.R. 5254 to streamline the permitting process of oil refineries. My constituents in rural northern California are paying some of the highest gas prices in the Nation. Red tape is stifling the construction of new and expansion of existing refineries and technology to make refineries cleaner and more efficient. In fact, America has not built a new refinery since the 1970s. I am reminded today of what President Reagan said in 1981, ``Government is not the solution. Government is the problem.'' We need to streamline government regulation and start expanding our oil refinery capacity. Families and businesses throughout this country have to meet deadlines. The government should have to as well. I urge my colleagues to support this legislation.

Mr. HERGER

Mr. HERGER. Mr. Speaker, I want to refer for a moment to how the seniors of our country feel about this. I stand firmly against today's motion to instruct. I recently received an e-mail from a senior citizen in Chico, California, in my northern California district, underscoring the importance of tax relief for capital gains and dividend income. I quote: ``Please do what you can to see that the 15 percent tax rate on dividends is extended, and, when the time is right, to see that it is made permanent. I am one of the retired who are not rich and not poor, but over time have saved enough and invested enough so that I am comfortable. I depend on the money from investments to put me in the `comfortable' area. The President urges people to save for their retirements. It is only fair that the fruits of those efforts are given their due.'' These comments highlight a part of the debate frequently ignored. A majority of seniors benefit from reduced capital gains taxes and dividend tax rates. They also track with the study by the nonpartisan Tax Foundation which states, ``As stock ownership becomes more universal in America, stock owners are becoming increasingly middle-class.'' It continues. ``A sizable percentage of taxpayers who claim dividends or capital gains are over age 55, and the majority of taxpayers over age 55 claim some form of capital gains or dividend income.'' Again, Mr. Speaker, I urge my colleagues to reject the motion to instruct conferees and in so doing support the extension of capital gains and dividend rates.

Mr. HERGER

Mr. HERGER. Mr. Speaker, on rollcall Nos. 25 and 26 I was unavoidably detained meeting with constituents. Had I been present I would have voted ``yea.''

Mr. HERGER

Mr. HERGER. Mr. Speaker, I am pleased to join my colleagues today in support of S. 1932, the Deficit Reduction Act of 2005, which provides needed reform to several programs and slows the growth of mandatory spending. This conference report achieves important savings through the modification of certain programs, while making significant new investments in child care, child protection, and the promotion of marriage and families, among other changes. This legislation includes a compromise on child support for families that provides more support directly to families, especially those who have left welfare. It saves $1.6 billion by ending state ``double dipping'' on Federal child support incentive funds. Additionally, this legislation provides $300 million for court improvements and services to assist families involved with foster care and adoption programs. Technical changes to the Supplemental Security Income program save an additional $725 million. Importantly, this conference report reauthorizes the nation's welfare reform law, which was originally signed into law in 1996, expired in 2002, and has been temporarily extended a dozen times. Welfare reform has been a success in reducing poverty, ending dependency, and promoting work. Child poverty has fallen sharply since 1996 with 1.4 million children being lifted out of poverty. Meanwhile, work among welfare recipients has more than doubled as welfare caseloads have fallen by more than 9 million. Despite these successes, we still have work to do. Currently, 58 percent of welfare recipients are not working or engaged in training programs to acquire necessary skills. Two million families continue to be dependent on welfare. In addition, far too many families break up or never form; these broken homes leave millions of children and parents at a higher risk for future welfare dependence. The welfare reauthorization contained in this conference report will continue and strengthen the reforms enacted in 1996. While this legislation does not include all of the provisions passed by the House in 2002, 2003, and 2005, it includes the essential features of those proposals. With passage of this legislation, we will help even more low-income families and parents support themselves by promoting more work and stronger families. Child care funding will be increased by $1 billion over the next 5 years and States will continue to receive Record Federal welfare funds, despite huge caseload declines since 1996. To complement these reforms, the conference report also provides $500 million for the promotion of healthy marriages and $250 million for programs to encourage responsible fatherhood. Independent studies show one of the most effective ways to reduce child poverty and improve child well-being is by promoting healthy, stable marriages. These programs are an important part of preventing future welfare dependence. Despite the often heroic efforts of single parents to work and care for them, children raised by single parents are five times more likely to live in poverty, five times more likely to depend on welfare, two to three times more likely to show behavioral problems, and twice as likely to commit crimes or go to jail. These parents and families need more help to overcome such obstacles, and this legislation provides funding for services to help parents lead fuller lives and better support their families without needing welfare. I urge my colleagues to support this legislation, which builds on the success of the 1996 welfare reforms and offers brighter prospects for the future of millions of low-income families.

Mr. HERGER

Mr. HERGER. Mr. Speaker, today's legislation contains a number of important tax relief provisions, including an expanded research and development credit to keep American innovation competitive; and one supported by my friend from Wisconsin, Paul Ryan, which would adjust the qualified veterans mortgage bond program and expand access to affordable home loans for California veterans who served after 1977. In addition, the bill before us includes a measure that I have long supported to facilitate greater small business growth. Small businesses are the backbone of our economy, representing over half of all jobs and economic output. The section 17 extension in this bill will enable small businesses to write off new capital investment up to $100,000 per year, spurring further economic growth and helping to generate new jobs. In 2003 alone, 4.6 million small businesses used $44.1 billion of section 179 expensing. According to the National Federation of Independent Businesses' November report, 61 percent of small business owners reported capital outlays over the past 6 months, including new equipment and vehicle purchases, furniture purchases, existing facility expansion, and improvement in new facility construction. Small business expensing works and it helps drive job creation in areas like my own northern California Congressional District. Unfortunately, the current expensing limits are set to return to significantly lower levels if we do not extend this provision. Mr. Speaker, I would like to thank Chairman Thomas and the members of the committee for their support of small businesses, and I urge my colleagues to vote for the legislation before us today.

Mr. HERGER

Mr. HERGER. Mr. Speaker, because of time constraints during Floor debate, I was unable to present my full remarks in support of H.R. 4096, the Stealth Tax Relief Act of 2005. I would like to request that the following comments be published in the Congressional Record for Wednesday, December 7, so my remarks in support of H.R. 4096 are reflected in the Record in their entirety: Mr. Speaker, without today's legislation, the number of Americans ensnared by the Alternative Minimum Tax is estimated to grow to an astounding 21 million in 2006. The problem is so great that the Treasury Department estimates that by 2013, an AMT repeal would be more expensive than a repeal of the income tax. In my own northern California congressional district, in one particular area, nearly 3,000 constituents face a significantly higher tax burden because of this onerous tax. In February of 1986, a levee broke on the Yuba River causing a flood that submerged the community, resulting in millions of dollars in damages. Now, after nearly 20 years of legal battles, a court has found the state liable and ordered it to pay damages to flood victims in the amount of $428 million. Unfortunately, because individual claimants have to add back attorney fees as AMT taxable income, the flood victims may end up paying some form of tax on 100 percent of their award, even though this is money they never saw. This is double taxation, and it is unfair. The attorneys have already paid income tax on the amount they earned through representation. Mr. Speaker, it is unfair that these flood victims--who have waited so long to be justly compensated--now should be subject to the AMT. The AMT is sorely in need of fundamental reform. It's time once and for all to do away with this middle class tax trap. I urge my colleagues to vote for the Reynolds extension before us.

Mr. HERGER. Mr. Speaker, without today's legislation, the number of Americans ensnared by the alternative minimum tax is estimated to grow from 3 million now to an astounding 21 million in 2006. The problem is so great that the Treasury Department has estimated that by 2013 an AMT repeal would be more expensive than a repeal of the entire income tax. In my own Northern California congressional district, in one particular area, nearly 3,000 constituents face a significantly higher tax burden because of this onerous tax. In February of 1986, a levee broke on the Yuba River, causing a flood that submerged the community, resulting in millions of dollars in damage. Now, after nearly 20 years, the courts have found the State liable for damages to these victims in the amount of $428 million. Unfortunately, because individual claims have to add back attorney fees as AMT taxable income, the flood victims may end up paying some form of tax on 100 percent of their award even though this is money they never saw. This is double taxation, and it is unfair. I urge my colleagues to vote for the Reynolds extension before us.

Mr. HERGER

Mr. HERGER. Mr. Speaker, I rise in support of the Deficit Reduction Act of 2005. Congress must make the hard decisions to rein in Federal spending. The legislation before us today does just that by reducing or eliminating waste or unnecessary Federal spending across a range of programs. I would like to thank the gentleman from California (Mr. Thomas) and my fellow Ways and Means Committee members for their support in bringing this legislation to the floor this evening. Overall, the provisions in this legislation produced by the Ways and Means Committee saves over $8 billion over the next 5 years through common sense reforms that fix or clarify current law. These changes target spending on administration, not benefits meant to be paid under current law. For example, this legislation ends double dipping on certain child support bonus funds. The bonus funds will continue. The double dipping will end. This change will save $1.6 billion over the next 5 years. This legislation also extends and improves the 1996 welfare reform so even more parents will be able to leave welfare for work. It provides full funding for the Temporary Assistance to Needy Families Programs despite a 60 percent welfare caseload decline. It increases child care funding to support more work, and it encourages and supports healthy marriages and stronger families to further reduce poverty. Mr. Speaker, I urge all Members to support these common-sense reforms.

Mr. HERGER

Mr. HERGER. Mr. Speaker, I move to suspend the rules and pass the Senate bill (S. 1894) to amend part E of title IV of the Social Security Act to provide for the making of foster care maintenance payments to private for-profit agencies.

Mr. HERGER. Mr. Speaker, I yield back the balance of my time.

Mr. HERGER. Mr. Speaker, on that I demand the yeas and nays.

Mr. HERGER. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on subject of the bill now under consideration.

Mr. HERGER. Mr. Speaker, I yield myself such time as I may consume. I thank the gentleman from Washington for his support for this legislation. I appreciate the concern expressed across the aisle, but the concern is not valid. It is important that we accurately explain the policy included in the spending reform bill, what it will do. This legislative fix would not alter Federal eligibility for foster care and adoptive assistance. Instead, it would ensure that every State uses the same eligibility criteria for receipt of Federal payments. Promoting child safety and well-being must remain the goal of these programs. And Federal law must be applied evenly in all States. We are doing just that with this policy fix. Mr. Speaker, I yield 3 minutes to the gentleman from Oklahoma (Mr. Cole), who is the author of this legislation.

Mr. HERGER. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in support of S. 1894, the Fair Access Foster Care Act of 2005. This legislation has recently passed the Senate by unanimous consent. S. 1894 makes a technical change that will ease the administration of payments to families who assist foster children. It does so by permitting the transmission of foster care maintenance payments through any agency that assists families caring for foster children in licensed settings. Current law prevents the transmission of these payments through private for-profit agencies. As we have come to learn, public and private agencies that assist families who serve foster children play a pivotal role in promoting child safety and well-being. While we allow States the flexibility to determine what agencies can best serve children, current law creates administrative burdens that deter the transmission of Federal funds through private for-profit agencies. This legislation would rectify that inequity, ensuring that all public and private agencies that assist families caring for foster children are treated in the same way. Mr. Speaker, S. 1894 is identical to bipartisan legislation introduced by the gentleman from Oklahoma (Mr. Cole), and I thank him for his work on this legislation. The legislation is supported by the American Public Human Services Association and the Child Welfare League of America. The Congressional Budget Office has informally estimated that the cost of this legislation would be insignificant. Mr. Speaker, everyone agrees our Nation's children's welfare system is in need of improvement. Unfortunately, this change will only relieve one small facet of a much larger set of administrative burdens that today too often get in the way of ensuring child safety. This legislation is an important step in the right direction, and we must continue to pursue broader reforms in our Nation's child protection programs. I thank all my colleagues on both sides of the aisle for their support of today's legislation. I urge all Members to support this bill. Mr. Speaker, I reserve the balance of my time.

Mr. HERGER. Mr. Speaker, I appreciate the comments on the other side of the aisle. However, almost none of what was just discussed has anything to do with what is on the floor today. The bill before us is a good one and one every Member should support. Members will soon have a chance to support needed spending reforms to reduce deficits and help balance the budget. That should be a goal for all of us. But what we hear today from the other side of the aisle is what we always hear: one, ``no'' on any savings in Federal programs; and, two, ``no'' on commonsense reforms; but, three, ``yes'' on raising taxes on the American people. Unfortunately, it is just the same old liberal wine in the same old bottles. Mr. Speaker, the legislation before us today is an important step towards improving our Nation's child protection programs. It would ensure that all public and private agencies that assist families who care for foster children are treated in the same manner. It is good legislation and would help States focus their efforts on promoting child safety and well-being. I would like to again thank my colleagues for their work in this area, and I urge all Members to support this legislation. General Leave

Mr. HERGER

Mr. HERGER. Mr. Speaker, after 19 years of legal challenges, the courts found the State of California responsible in an inverse condemnation for the failure of the Linda levee on the Yuba River, and ordered it to pay damages to victims of the 1986 Yuba County flood. Now, constituents in my northern California congressional district are receiving their long awaited just compensation. Unfortunately, an unforeseen consequence has arisen. Depending on the amount of an individual's award, he or she may be subject to the alternative minimum tax (AMT), due in part to the portion of the individual's judgment award paid to attorneys in the form of fees. Attorneys in the suit received their cut of the judgment right off the top, payment for services rendered, as ordered by the court's decision. The attorneys will owe regular tax on this payment. Unfortunately, the actual award recipients may also incur tax liability for this amount, effectively resulting in double taxation--once when the attorneys pay taxes and once if recipients incur AMT liability. Even though this is money my constituents never physically possessed, as currently written in law no AMT relief can be granted. Although there is no practical way to retrospectively address the tax treatment of the 1986 Yuba County flood victims, I believe their situation stands on its own as an example of the damaging impacts of the AMT on the American taxpayer. And the scope of the problem is only getting worse. The AMT is not indexed for inflation, meaning that what was conceived in 1969 as a way to compel the wealthy to pay at least a ``minimum'' level of taxes has increasingly become a burden to middle- class citizens. If the current AMT exemptions are allowed to expire, the number of taxpayers subject to the AMT will increase from 3 million in 2004 to 21 million in 2006. Also staggering is the cost of proposed solutions. In fact, the Treasury Department has estimated that by 2013, it would be less expensive to repeal the regular income tax than it would to repeal the AMT. Though I have long supported the outright repeal of the AMT, I believe it is equally important to highlight the nature in which attorney fees can result in AMT liability, as they may for many of my constituents. For this reason, today I am introducing two bills that would exempt attorney fees from the calculation of AMT tax liability. The first would apply to AMT liability resulting from attorney fees in certain floods that constitute natural disasters. The second would apply to AMT liability resulting from attorney fees in general. There is no easy fix to the problems encountered by a growing number of Americans due to the alternative minimum tax. It is my hope that in the near future Congress will constructively respond to this problem, whether through overall repeal of this onerous tax, or through consideration of intermediate measures such as these.

Mr. HERGER

Mr. HERGER. Mr. Speaker, I rise today in support of the rule and in strong support of the underlying bill. The Endangered Species Act is a law with good intentions, but it has spun wildly out of control with tragic consequences for average Americans. The northern California district I represent has been ground zero for some of the worst examples of the human impacts of this law gone awry. In 2001, a community of family farmers in the Klamath Basin of northern California and southern Oregon had their entire water supply shut off to prevent a perceived threat to two species of listed fish. Families who for generations had worked the soil to produce food for our Nation were literally left high and dry. To add insult to injury, it was later determined that that decision was not scientifically justified. Several years ago a levee protecting one of the communities I represent had deteriorated, and the Army Corps of Engineers predicted that in the event of high water, there would be a significant threat to human life. For nearly 7 years, local officials tried to repair that levee, Mr. Speaker, but those repairs were stymied because of the Endangered Species Act. Those delays had tragic consequences. The levee did break, just as the Corps predicted. Tragically, three people drowned. Mr. Speaker, the impact of this inflexible law have been real and devastating. The reforms proposed by this common sense legislation are long overdue. I commend the gentleman from California (Mr. Pombo) on his good work and urge my colleagues to support it.

Mr. HERGER

Mr. HERGER. First let me say to the gentleman that I am very appreciative of his efforts here to make the ESA a better law. Mr. Chairman, it is my understanding that the legislation would provide the President the authority to waive or expedite any provision of the act in the event of a major national disaster. I also understand that the legislation would require the Secretary to develop regulations establishing procedures for an expedited application or waiver of the act for agency actions that would be undertaken to address threats to human health or safety.

Mr. HERGER. Mr. Chairman, it is my understanding that the Secretary currently has in place emergency regulations that allow for expedited consultation in the event of an immediate threat to public safety, as, for example, when the floodwaters are rising and are feet or perhaps even inches away from breaking or breaching a levee. Is the chairman's understanding that the intent of the legislation is to require the development of additional regulations that would allow the Secretary to expedite the application of the act for agency actions necessary to address threats to human health or safety?

Mr. HERGER. Mr. Chairman, I thank the gentleman for that clarification. Again, Mr. Chairman, I want to commend the gentleman for his leadership and years of work he has invested in making the Endangered Species Act a more responsive and effective law.

Mr. HERGER. I thank the chairman. As you know, Mr. Chairman, a terrible situation occurred in my district in Northern California several years ago where a levee that protects one of the communities I represent had deteriorated to such a point that the Corps of Engineers predicted that this degraded levee, without repair, presented a threat to human life. Regrettably, repairs to that levee were unable to proceed in a timely manner due to the lengthy consultation process, even though this very serious warning had been issued by the corps. I am sure the chairman has heard of other similar examples where the application of the Endangered Species Act has complicated or delayed urgent and targeted levee repairs from occurring when they are needed to protect people from flooding.

Mr. HERGER. Mr. Chairman, would the chairman of the Committee on Resources agree to enter into a colloquy?

Mr. HERGER

Mr. HERGER. Mr. Speaker, I rise in strong support of H.R. 3672. First, let me echo the sentiments of so many of my colleagues that have already been expressed here today to the victims of this terrible tragedy. Please know that our thoughts and prayers are with all of you. You will continue to be in our prayers as you work to recover from the devastation this hurricane has wrought and to rebuild your communities. We hope the steps we take here today will provide a measure of help in that incredibly trying process. This legislation is designed to assist States provide for the immediate financial needs of thousands of families affected by Hurricane Katrina. I am honored to support this bipartisan bill introduced by my colleagues, the gentleman from Louisiana (Mr. McCrery) and the gentleman from Louisiana (Mr. Jefferson). Unfortunately, the gentleman from Louisiana (Mr. McCrery) cannot be with us here today since he is in Louisiana with the Vice President, helping coordinate the ongoing response to the hurricane. The purpose of this legislation is simple: to clear any obstacles that stand in the way of quickly getting money into the hands of the hurricane victims. The legislation before us now addresses the needs of families who either have been on welfare or might need to go on welfare as a result of the hurricane. It ensures that States have the resources to help them, and it removes the bureaucratic obstacles that might otherwise stand in the way. In terms of funding, this bill immediately makes available more than $4 billion in Federal welfare funds which States would otherwise have to wait until October to access. So States have that money to spend now when so many families are in need in the region. It provides additional Federal funds for the hard-hit States of Louisiana, Mississippi, and Alabama, and it reimburses other States for the cost of providing emergency benefits to the many families that have left the States directly in the path of the hurricane. To ensure families can focus on getting their lives back together and States can focus on providing immediate help, this legislation also waives program rules that might otherwise tie States' hands in providing for the immediate needs of affected families. Mr. Speaker, these changes provide more State flexibility in meeting the needs of families, including for basic cash assistance right away. And as communities start to get back on their feet, this flexibility can and should be used to help parents find and keep new jobs to support their families. Mr. Speaker, I urge the House to support this important legislation.