Joseph Pitts

Mr. PITTS

Mr. PITTS. Mr. Speaker, I yield 30 seconds to myself. Mr. Speaker, my friend on the other side of the aisle has the gall to criticize Republicans for not having a balanced budget yet. I would like to ask them where is their balanced budget. The President knows how difficult it is to produce a balanced budget. In fact he could not do it. There are no tough decisions in President Clinton's proposal, and in fact he inflates the debt by $1.2 trillion by 2002. His spending cuts would not occur until he leaves office, his tax cuts are temporary. The Republican Congress has been trying to negotiate a real balanced budget, and we will do that. Mr. Speaker, I yield 1 minute to the gentleman from Utah [Mr. Cook].

Mr. PITTS. Mr. Speaker, I rise today in strong support of House Resolution 109, a resolution calling upon the Congress and the President to work together to give American families much-needed tax relief. As all Americans are painfully aware, today is the dreaded tax day. As I speak, families across America are rushing to deliver their latest payment to Uncle Sam. Americans will work into the month of May just to pay these taxes. Post offices will stay open late tonight to accommodate millions of hard-working Americans, Americans who need all the time they can get to understand the complicated and cumbersome IRS Code. Whether a person fills out the EZ, the EITC, or the capital gains tax return or any of the other of 480 different forms that we have in this country, the struggle to pay taxes is a burden on everyone. The paperwork required by the IRS is staggering. In fact, the IRS sends out enough paper every year to circle the Earth 28 times. Many folks labor just to figure out how they are going to come up with the money they need to pay off the Federal Government for 1 more year. Mr. Speaker, American families are simply paying too much to the Federal Government; 45 years ago families paid only 5 percent of their income in Federal taxes. Not anymore. In 1990 the Federal tax burdens averaged about 24 percent. When combined with other taxes today, families lose nearly 40 percent of their income to the Government. As this chart shows, American families pay more into Government coffers then they spend on their family's food, clothing, transportation, and housing combined. As we can see, the total tax load for the average American family is $21,883 compared to a total of $19,605 for basic necessities and $8,600 for housing, $5,200 for food, $3,600 for transportation, $2,100 for clothing. On this difficult day they can tell what permanent tax relief would provide. It would provide them with additional money to spend on their kids' education, it could go into an account for a child's college tuition, it could be invested for a family's future, and it could be used to buy a home or start a small family business. In fact the American family's ability to use their own money wisely is limited only by the government's confiscation of it. We must begin today to take steps this session toward letting the American creativity thrive by letting Americans keep what they earn. House Resolution 109 is the starting point. It will begin the much needed bipartisan discussion on not if, but how to provide tax breaks for the American family. Surely everyone in this room must agree that the American family needs permanent tax relief, not just temporary relief. House Resolution 109 places us on this common ground. Let us start asking the tough question of how we get America's families a tax break. I support a repeal of the Federal estate tax, a $500 per child tax credit, capital gains tax relief, but there are other methods of providing American families the relief they deserve, and we should start that dialog. I urge every Member of this House to deliver good news to American families living in their districts, that they will fight for permanent tax relief in the coming months. I urge passage of House Resolution 109. Mr. Speaker, I reserve the balance of my time.

Mr. PITTS. Mr. Speaker, I yield myself such time as I may consume. (Mr. PITTS asked and was given permission to revise and extend his remarks.)

Mr. PITTS. Mr. Speaker, I yield 3 minutes to the gentleman from Texas [Mr. DeLay], the distinguished majority leader.

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

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

Mr. PITTS

Mr. PITTS. Mr. Speaker, I rise today to ask my colleagues to support the Children First in Education Act, a bill which would direct 95 percent of our Federal education dollars to our local school classrooms. For too long we have been satisfied with the mediocre performance of sending from 50 to 80 percent of Federal funds to local communities. That means over 20 cents, at least, of every education dollar intended for local schools gets lost in the bureaucracy. This can be improved. Mr. Speaker, in the past few weeks, I visited with students, teachers, and administrators in schools like McCaskey High School in Lancaster City. Here I witnessed a topnotch education atmosphere, yet one which could be enhanced by getting Federal funds directly into the hands of someone who knows your child's name. Mr. Speaker, if this act is passed, out of a total of $15 billion federally, approximately $3 billion more would get directly to our kids. That is more than $70 per student per year, money which could be used for new textbooks, teachers' aides, and learning materials. I urge my colleagues to join in sponsoring and cosponsoring the Children First in Education Act.

Mr. PITTS

Mr. PITTS. Mr. Speaker, today I introduced a House resolution calling upon the Congress and the President to come together to enact permanent tax relief of American families. I urge you and the rest of my colleagues to join me in a bipartisan effort to give tax relief to those who need it most; the hardworking American family. Mr. Speaker, according to a recent study, American families pay more in taxes than they spend on food, clothing, transportation, and shelter. Further, every American will spend at least 120 days of this year to pay his or her share of taxes. Only after that point can an American begin to enjoy the rewards of a hard day's work. I think it's time to let American families keep more of what they earn. My tax freedom resolution will send a reminder to the American taxpayer that we hear their cries for tax relief. As April 15 is around the corner, many Americans are wondering what their Federal tax pays for. Families need real, permanent tax relief, and they need a smaller Federal Government that spends less. I believe that my tax freedom resolution will unite the House of Representatives under the cause of serving the American people. Mr. Speaker, I urge that we work on a bipartisan basis to enact real, permanent tax relief for the American family in the coming months. I look forward to working with you on this important issue, and urge that the tax freedom resolution be brought to the House floor so that Americans know that we are working for them.

Mr. PITTS

Mr. PITTS. Mr. Speaker, we have heard the argument that we are wasting our time. Nothing could be more important than relentlessly pressing for a budget that truly balances by the year 2002. On a bipartisan basis, the President's plan has left many Members very disappointed. We just heard a representative of the blue dogs recognize that Clinton's plan does not balance. The concern is not just coming from Republicans. Members of the press have expressed dissatisfaction. Even Members on the other side in the Committee on the Budget have expressed concern about backloading tough decisions. We do not want to punish President Clinton for a disappointing first attempt. We just want him to try again and use the same numbers that Congress has to use, CBO numbers. Unless we use the same numbers, we are never going to reach agreement. I urge Members to pass the resolution.

Mr. PITTS. Mr. Speaker, I rise to support the resolution urging President Clinton to submit a budget that balances by 2002. We are all aware that balancing the budget is a top priority with the American people. The budget submitted by President Clinton was touted as a legitimate plan to balance the budget by the year 2002. It does not do that. According to the Congressional Budget Office, the independent source which the President himself has suggested we use, this effort falls short of the balance goal by $69 billion. Not only does the President's budget not balance by 2002, it leaves 98 percent of the deficit reduction until after he leaves office. President Clinton increases the deficit by $24 billion next year over what would be if we did nothing, which is considered the baseline. If we maintained spending next year at the same level as it is today, we will have a budget deficit next year of $121 billion. That is the first year. The President would increase that deficit spending by $24 billion over that baseline, to $145 billion. That deficit spending increases and continues every year until 2002. So we would be better off if we did nothing, rather than using the President's plan. Also, Mr. Speaker, looking at the President's budget, on page 331 we see the amount of the debt over a 5-year period, the debt today being $5.4 trillion, in 2002, $6.6 trillion. I would like to submit this for the Record. In other words, we increase the debt in this 5-year period by $1.2 trillion. Need I say more about needing a balanced budget? We have not balanced the budget since 1969. To quote Thomas Jefferson, ``There is nothing more important for our children and the next generation of Americans than to leave them a Nation that is debt free.'' For the sake of our children and our grandchildren, the out-of- control spending must come to an end. President Clinton said, ``We don't need a balanced budget amendment. We need action.'' Well, we need action. He has given us neither. It is action that we are calling for with this resolution, action that does not mean higher taxes. This proposal does raise taxes. According to the independent Joint Committee on Taxation, the President's budget would increase taxes by $23 billion through 2007, hitting middle-income taxpayers first. This will directly impact over 100 million workers across the country. Another tax hike in the President's budget penalizes American companies that create export jobs, changing the tax formula to increase the amount of their taxes on income derived from sales abroad. That is a real disincentive for companies who rely on trade and exports. Another harmful tax is the capital gains tax, which is a tax hike on 10 to 15 million Americans that will occur. They are predominantly middle-income families who own mutual funds and stocks, and these tax hikes are all permanent, but the tax cuts are temporary. For example, the $500 child tax credit is scheduled to disappear when a child reaches age 13, just about the time when kids get expensive. That means that single moms are left out in the cold after their kids are 13 and growing. That is irresponsible. To shut down a tax credit when the going gets tough on parents like single moms is unwise. The President's budget also calls for this tax credit to expire on December 31, year 2000, just when he leaves office. Mr. Speaker, it is vital that the President resubmit a budget that serves as a starting point for discussion. Step one to an agreement is the need to use the same numbers. By assuring that both the President and the Congress use the same numbers, we begin to travel down the same road to a balanced budget, and this resolution would do that. Mr. Speaker, we are hearing a lot about ethics today in Washington. I would like to ask a question. Is it ethical to spend money that we do not have and to stick our kids and grandkids with the bill? Most of us, when our parents die, expect maybe to inherit a house or maybe some savings, but how would my colleagues feel if their parents went into such debt that they had to spend the rest of their life just retiring their debt? That is what we are doing to the next generation. The only people who lose in this deal are the kids. Mr. Speaker, I urge the Members to support this resolution.

Mr. PITTS

Mr. PITTS. Mr. Speaker, today I introduced a bill to reform the pension system for Members of Congress and their staff. My bill, the Congressional Pension Reform Act, will make the pension benefits for Members of Congress the same as other Federal employees. The Congressional Pension Reform Act of 1997 reduces the pension accrual rates for Members of Congress and their staff members. A pension accrual rate is the percentage of pre-retirement pay earned in pension benefits for each year of service. Under my bill, those congressional Members and staff who entered Federal service before 1984 will have their accrual rates reduced from 2.5 percent to between 1.5 and 2 percent, depending on how long a person has worked for the Federal Government. For Members and staff who began Federal service after 1984, their accrual rates are reduced from 1.7 percent to 1 or 1.1 percent. These changes will save the taxpayers about $9 million over 6 years. As a member of the House Budget Committee, I realize that we as legislators have to make tough decisions which limit the size of our Federal Government. We need to shift responsibilities from a bloated Federal bureaucracy to families and local communities. I want to demonstrate to the people of Lancaster and Chester Counties that I will impose sacrifices upon myself and the rest of Congress which are similar to those we ask others to make. Mr. Speaker, I believe that Members of Congress should be treated like every other Federal employee. By reforming our own pension plan, we can reduce the perks of elected office which have no place in our Federal Government and which shake the public's confidence. On January 30, I wrote to Budget Chairman John Kasich to urge that my provisions on congressional pension reform be included in the majority's balanced budget package. Further, I plan to have my bill included in the budget reconciliation bill so that our shared goals of reducing Government spending and reviving the public's trust in this body can become a reality. I thank the Speaker, and look forward to working with him to reform our pension system.

Mr. PITTS

Mr. PITTS. Mr. Speaker, I stand before you today to speak about my first bill and to implore my colleagues to repeal the Federal estate tax. This tax hits millions of families and small farm and business owners. This unfair tax for too long has been burdening people of this country at one of the most difficult times in their lives, at the time of the death of a loved one. It forces them to sell assets just inherited by them so they can pay unreasonable sums to the Federal coffers. Mr. Speaker, numerous people across the country stand to lose family farms and businesses that they have worked their entire lives to build. Faye Givler, owner of Steckel Printing and employer of 94 people in Lancaster, PA, stands to lose her life's work with this tax. Her children, just because of this tax, stand to lose it all. Mr. Speaker, this is outrageous. With 65 cents of this tax going to enforcement and compliance, what sense is there in inflicting such stress on Americans who work hard to build their children's future? This tax threatens that simple dream. I urge my colleagues to repeal this unfair tax.

Mr. PITTS

Mr. PITTS. Mr. Speaker, in recent years, many campaigns have used unsubstantiated allegations against an opponent in their polls. While these push polls may be sound politics to some, I believe that the use of negative, suggestive, and unfounded information in a poll fails to meet the democratic goal of persuading voters with truth and fairness. That's why I introduced the Push Poll Disclaimer Act today. This bill will discourage the practice of slandering a candidate in a Federal election under the guise of a legitimate poll. The Push Poll Disclaimer Act will require that any person or organization conducting a poll by telephone give the source of any information provided in the poll, or a statement that there is no source if this is the case. Further, my bill will require that the identity of the person or group sponsoring the poll, as well as the identity of the caller, be disclosed. Mr. Speaker, it is vital that we work together to reduce the negative impact push polls have on the Federal election process. I urge that the provisions in my bill be included in the larger campaign finance reform bill which is expected to be considered this Congress. I thank the Speaker, and look forward to working with him during the 105th Congress on this important issue.

Mr. PITTS

Mr. PITTS. Mr. Speaker, today I introduced a bill to repeal the estate tax which has burdened so many farmers and small business owners in the 16th District of Pennsylvania. With the repeal of this tax, more families in Lancaster and Chester Counties can hold onto their hard- earned family legacies. Mr. Speaker, the estate tax is one of America's most illogical taxes. After a person's death the IRS collects between 37 and 55 percent of all assets transferred which are valued at more than $600,000. The ``death tax'' discourages savings, penalizes the sound practices of capital formation and investment, and puts many family owned farms and businesses in jeopardy after the loss of a loved one. In addition, Mr. Speaker, the estate tax is expensive to collect. The IRS spends approximately 65 percent of the revenue it collects from this tax on enforcement of the estate tax code. Further, the estate tax accounts for less than 1 percent of annual Federal revenue. Finally, it is expected that the repeal of this tax could create an increase in revenue for the Federal Government in the future, as families will be able to invest their savings and generate more taxable income. Mr. Speaker, the reason many people work so hard is to make life better for their children. New businesses, especially minority-owned firms, face enough obstacles without having the rewards of hard work snatched away at the end of the first generation. I think it's time that we give control of life savings back to the people who have earned them. Let's make sure that farms that have stayed in the family for generations aren't sold off due to a bad tax policy. Let's end the outrageous practice of punishing thrift and financial security. Let's end the bias against savings and capital formation. Let's encourage saving, investment, and sound, life-long financial management which can provide for a family past a single generation. Let's repeal the estate tax and empower our Nation's families.