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Public Statements

Education Jobs and Medicaid Assistance Act

Floor Speech

Location: Washington, DC


Mr. GOODLATTE. I thank the gentleman for yielding, and I rise in opposition to this legislation.

H.R. 1586, the State bailout bill, extends many of the same provisions included in the original stimulus bill by increasing taxes and using questionable offsets. It increases taxes on American businesses, America's job creators, by $9.8 billion over 10 years, and these tax increases will kill jobs, reduce American competitiveness, discourage investment, and prevent economic recovery. This is a permanent tax increase on job creators in exchange for a temporary fix for the States.

A series of international tax changes in the bill could have far-reaching consequences on the competitiveness of worldwide American businesses. The National Association of Manufacturers states that an estimated 22 million people in the United States, more than 19 percent of the private-sector workforce, and 53 percent of all manufacturing employees are employed by companies with operations overseas.

Manufacturers feel strongly that imposing $9.6 billion tax increases on these companies as proposed in the Senate Amendment to H.R. 1586 will jeopardize the jobs of American manufacturing employees and stifle our fragile economy.

The new spending in the bill is meant to give states money to deal with their current fiscal problems, rewarding states for years of excessive spending in their budgets. It is not the responsibility of the federal government to bail out the states when they have difficulty balancing their budgets--the federal government should balance its own budget instead.

The bill is not really ``fully'' paid for because it spends the entire $26.1 billion in just two years while the ``offsets'' take place over ten years, relying on future Congresses to abide by the offsets--spending money today that we won't ``pay for'' until years from now. Once again, this Congress kicks the can down the road.

This is a very detrimental tax increase. I urge my colleagues to oppose this legislation.


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