PROVIDING FOR CONSIDERATION OF H.R. 4297, TAX RELIEF EXTENSION RECONCILIATION ACT OF 2005 -- (House of Representatives - December 08, 2005)
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Mr. RYAN of Wisconsin. Mr. Speaker, I appreciate the gentleman yielding me time.
I also appreciate the fact that the gentleman from Washington is willing to acknowledge Christmas here on the House floor. That is a nice step in the right direction.
Mr. Speaker, let us look at the facts. To hear the other side, you would think we were taking a chain saw to the budget. What we are proposing in the budget is that we increase entitlement spending 6.3 percent instead of 6.4 percent, saving $50 billion out of a $14 trillion budget, by rooting out waste, fraud and abuse by reforming government.
But let us talk about these tax cuts. You would think when we cut taxes in 2003 we would have lost revenues. Right? That is the intuitive thing to say. Wrong. That is not what happened. Since the enactment of the 2003 tax cuts, job losses went away. The unemployment rate was 6.1 percent when we cut taxes. The unemployment rate is 5 percent.
Since we cut taxes, we have averaged a job creation every month of 148,000 jobs. Just last month alone we added 215,000 jobs to the economy. What happened before we cut taxes? Before we cut taxes, the 2 years before the tax cut, our economy grew at an average of 1.1 percent. How fast is the economy growing since the tax cuts? 4.1 percent. How fast did the economy grow last quarter? 4.3 percent.
Now, Mr. Speaker, what has happened since we cut taxes is we have reversed the job loss, we have reversed the decline in jobs, and we have added 4.4 million jobs to the American economy since the 2003 tax cuts.
What happened to revenues? Revenues increased. Yes, that is right. At these lower tax rates, at these lower taxes, we increased revenues to the Federal Government. Last year revenues went up 14 percent. Just this year individual income tax receipts are up 14 percent. Corporate income tax receipts are up 47 percent.
What happened to the deficit, Mr. Speaker? The deficit projection in 2004 was $521 billion. What is the deficit now? The deficit projection now is $319 billion. We dropped the deficit 23 percent last year. We dropped the deficit 25 percent last year. The deficit is down because tax revenues are up.
Do not defeat this bill and raise taxes. Let's stop tax increases.
Mr. RANGEL. Mr. Speaker, I would like to ask the gentleman just one question on my time.
These very important tax cuts or extension of tax cuts you are talking about, could you share with me as simply as possible as to when they expire, what year?
Mr. RYAN of Wisconsin. Each of these tax cuts expire between this year and the next 2 years. It depends on the tax cut you are talking about.
Mr. RANGEL. The tax cut that we are talking about is the $20 billion in capital gains and corporate dividends. Does that not expire in 2009?
Don't get rattled.
Mr. RYAN of Wisconsin. Not at all.
Mr. RANGEL. It is just a simple question. Because there seems to be some degree of urgency in this and unless it is a projected gift, then these things don't expire this year or next year.
Mr. RYAN of Wisconsin. If the gentleman will allow me to respond to his question.
Mr. RANGEL. Please.
Mr. RYAN of Wisconsin. Why is it important that we continue the tax relief progress that would expire in 2008 on dividends and capital gains? Because those are job creators.
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