The Countdown Crew

THE COUNTDOWN CREW

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Mr. DAVIS of Kentucky. Mr. Speaker, we return again for the fifth consecutive leadership hour with the Countdown Crew.

I would like to welcome all of you here tonight who are watching from home. We have been surprised at the tremendous amount of response that we have received talking about the reality of tax policy, of small business policy and the impact that it has on the lives of ordinary citizens in this Nation.

In fact, the feedback has gotten so great that we have received hundreds and hundreds of calls, e-mails from around the country.

What we would like to do is invite you to become part of the Countdown Crew, as we are only 1,416 days from one of the largest tax increases in American history. We have a Web site. We would encourage you to e-mail with questions, with comments, your perspective on ways to make life better for working families to create jobs and to strengthen small business, which creates 88 percent of the jobs in the United States.

If you look behind me, our e-mail Ðaddress is here. It is countdowncrew@mail.house.gov. And we would invite your comments and your feedback, and also invite you to share your stories of why the tax cuts of the last several years have made a difference for you, why a more relaxed and more structured regulatory process that focuses on sound science versus on politics allows businesses to work to create jobs, to create opportunity to create a future for our children and our grandchildren.

And there is a reason for this. In the election on November 7, so much of the emotion and so much of the focus had to do with issues related to the national security policy in the Middle East. But one thing that was forgotten in that time was something else that was voted for by the American people.

All of the tax cuts that have created 7 million jobs, that have created record revenues to the U.S. Treasury actually are on time lines. And they have to be extended by the House, and they sunset at the end of 2010. And without a President to advocate those policies, without a House of Representatives and a Senate that is going to pass those policies, all of the tax cuts that have created millions of jobs, that have created these record revenues in time of war are going to end. And that means that in 1,416 days, the average working family in the United States of America will experience a tax increase of $2,098. And that translates across every sector of America.

And the one thing I think that often gets lost, and I will speak as a former small business owner myself, is the fact that small businesses create 88 percent of all new jobs. Those are companies with under 500 employees. These are companies that pay health benefits, that do research and development, that open new doors.

The tax revenues that are generated from those businesses and those employees are what fund the infrastructure of our communities. They pay for our teachers; they pay for our public safety. They contribute to our national defense.

And one saying, I think, that is important for all of us to remember is, the focus that we need to have is not to raise taxes but it is to create taxpayers. And the way that we can create taxpayers is give those who create the jobs more resources to invest in the economy, allow working families to keep more of what they own so they can save it and build a nest egg for the future that will ultimately lead to the growth that we have experienced.

We have got several distinguished gentlemen tonight. Before the gentleman from Oklahoma begins, I would like to recognize the leadership of Congressman Bill Shuster from Pennsylvania who has been the principal architect of the Countdown Crew.

Remember, if you would like to Ðcontact us, that is countdowncrew@mail.house.gov if you have a question for any of the Members participating tonight or would like to share your own story of how being allowed to keep more your own money, more of your own resources has helped to create a future for you.

But before I share some stories about some friends back in Kentucky who started and created jobs that are affecting not only our region and our economy, but also the defense of this Nation, I would like to recognize Congressman Sullivan, the gentleman from Oklahoma, to share his perspective on this.

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Mr. DAVIS of Kentucky. Thank you very much, Congressman Sullivan.

I think it is so important what he highlighted here when he mentioned four children. My wife Pat and I have six children. For families what this translates into, just the loss of the child tax credit alone for a family of four is $2,000. That could be a semester of college tuition. It could be an investment in savings. There is an opportunity cost that comes with that that has real effects. And when that money is in the economy, it is creating jobs.

And I would like to take a moment and share one small business story that is close to home about an environment that creates opportunity. You may have heard me say this before: The role of government is not to create jobs. Government doesn't create jobs by itself. What government does should be to create a framework that empowers people to create jobs, to create opportunity, and to protect that opportunity we pass to future generations.

We have seen tremendous change that has taken place in our region, the Fourth District of Kentucky. And specifically in the northern part of that district, right across the river from Cincinnati or, as we like to say, the greater northern Kentucky area, we are seeing economic explosions in great numbers in a variety of industries. In particular, a group of far-seeing businessmen wanted to change the view of our community, joined with community leaders. And they worked with Northern Kentucky University, first with President Jim Votruba, and talked about the need for bringing high-technology jobs and creating a climate for high-technology jobs. Dr. Votruba recruited an information technology professional named Bob Farrel, who is an entrepreneur, a great success in the business world, but also a teacher and a mentor. They collaborated in turn with the chamber of commerce, with local government, with State government, and created a zone in downtown Covington, Kentucky, on Madison Street, called the Madison E Zone. And into that came some friends of mine to build on the foundation that was given to them, those boundaries in which they could create opportunity.

Three men, Kevin Moore, Norm Desmairis, and Greg Harmeyer, I know all three of them. I have watched what they have done professionally with their business. I have watched how they have grown from a very small company to create many, many jobs; how they left one facility and had to move down the street to an even larger facility. And they are the true ideal of the American entrepreneur, a small business person who starts with a vision, pursues that vision, and wants to bring about change. And what Kevin and Norm and Greg have all done with their business that is remarkable in information technology is they have provided needed services in the preservation of knowledge and improving the efficiency of systems, helping the employees of other job-creating companies to be more effective and more competitive in this global economy. And where it comes home full circle is the idea of working with the university in conjunction with the Department of Defense and the Department of the Air Force to help preserve knowledge and help strengthen the information technology systems of our Armed Forces, of our national security establishment.

What is exciting about this is tier one with Greg and Norm and Kevin represent hundreds of small businesses that are creating thousands and thousands of jobs around the country. And what they shared with me, and Kevin

shared with me tonight, is that these tax increases are going to hurt their ability to provide for health care, as Congressman Sullivan pointed out. It is going to hurt their ability to make needed investments in equipment. It is going to hurt their ability to compete effectively. And I believe it is better to let them keep more of what they have earned because that is going to be recycled into the economy to create more jobs.

And the model we are following, as Solomon said in the Bible, there is nothing new under the sun, was the same model that birthed Silicon Valley. There were intellectual partnerships and entrepreneurial partnerships with Stanford University that led to the greatest explosion of technology and research in the history of modern man. It changed the life of virtually every citizen in this Nation, provided us with technologies and tools and improved a way of life that had never been known before. And now we stand with an opportunity to build that type of a future right in Kentucky. As my colleague, Congressman HAL ROGERS down in the Fifth District, likes to say, representing eastern Kentucky, we may not have Silicon Valley but if we have the right economic policy and the right focus on research and the right focus on developing our young people and especially the right focus on creating an environment to stimulate small business, we may not have Silicon Valley but we can have Silicon Hollow. We can make a difference that provides not only for the next generation that follows us but to keep this Nation competitive in the long run.

And we stand at a crossroads right now. As we mentioned before, in 1,419 days, the average working family in this country is going to see a tax increase of $2,098. Money that has created 7 million jobs will be taken out of the economy. And what we need to do is look at policies that are proactive, that make a difference.

One colleague who is here with us tonight who also came out of the small business world, who has been in Congress for a long time, who understands both the political side, but most important to me is that he has created jobs, has made a payroll, and he has helped other people deal with these benefits and understand this importance, and that is my friend Congressman JACK KINGSTON from Savannah, Georgia, and I would like him to share some of his perspective.

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Mr. DAVIS of Kentucky. I would have to say, Congressman Kingston, that based on these tax increases that are coming and these regressive policies that will begin to take effect in 1,419 days, I would say that my six children will become my retirement plan.

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Mr. DAVIS of Kentucky. I appreciate that, Congressman Kingston. It just highlights all the more what you point out, that in 1,419 days, that every working family in America is going to have a $2,000 tax increase. We think about where that money could go and what it is doing in the economy.

Just for those who might be joining us tonight, we are the Countdown Crew. We meet the first night of every vote and talk about issues that make a difference to creating jobs, that make a difference to our pocketbook, for working families, for small business owners that create the preponderance of our jobs.

We would like for you to join with us, to communicate your stories, to share your experiences. You can contact us at countdowncrew@mail.house.gov. We are standing by to hear those stories right now. And I just want to thank again BILL SHUSTER's vision to want to execute this program.

As we get ever nearer to those tax increases, we have had Members that are coming to the floor that haven't been politicians their whole life, that have had what I would like to say are real jobs, who have been out there, who know what it is like to have to make a profit.

I know what it is like to make that decision to go without a paycheck to make sure that employee health benefits are paid. And I am not saying that to impress anybody, simply to point out to you, that is a common decision that many small business owners face, making sure that our employees are taken care of. And when taxes are raised, that takes away even more of that flexibility to meet employee and family needs, but also it takes dollars out of the economy or dollars out of the potential of those businesses to create jobs.

One Member who is joining us here tonight who I think has lived a great success story in small business with her husband is Congresswoman THELMA DRAKE from Peninsula, Virginia. She represents the Norfolk area.

The thing that is very exciting about her story that is very consistent with other small business owners who have gotten to taste that piece of the American Dream and all the families that have worked with them or have been benefited by them, is her story coming up as a Realtor, seeing many, many facets of the economy and the impact of these income tax policies, of regressive policies against small business, and yet at the same time the positive impact by allowing people to keep more of what they earn. It has created record revenues, as Congressman Kingston mentioned.

Among all the doom and gloom stories, one thing that I would share is that many times when we talk about our global economy, there is a great fear of competing on that global stage. If we compete on a level playing field, the American worker, the American entrepreneurial and creative genius is going to win. But when we talk about competing with countries like China, an emerging superpower, one thing that I would point out is that just in less than 3 years, the U.S. has added to its economy, the increase in our economic output has been $2.2 trillion. That is bigger than the entire economy of China.

Folks, if we create taxpayers instead of raising taxes, that growth will continue and our children and grandchildren will have the opportunity to compete.

I would like to recognize the gentlewoman from Virginia to share her perspective on this.

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Mr. DAVIS of Kentucky. I thank you, Congresswoman Drake, for being with us this evening. I think one thing I would like to recognize is that THELMA and her husband are real people who started and ran a real business that created real jobs and a real future for many others.

If you are just joining us, we are the Countdown Crew. We are counting down 1,419 days to one of the largest tax increases in American history if Congress does not take action to make sure that the tax cuts, the benefits that have made such a difference for so many in this country by allowing people to keep more of what they earn, are extended and hopefully made permanent.

I would just like to point out if you would like to communicate with us, we are the countdowncrew@Ðmail.house.gov. If you have questions or would like to share your story of how being able to keep more of your own money, of your hard-earned resources has benefited you, how it has helped you build a future, we would love to hear from you.

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Mr. DAVIS of Kentucky. I appreciate you pointing that out. That was one of those surprises that I think affected a lot of people or that will affect a lot of people in the months and the years ahead. The reason for that 60 percent or three-fifths majority was to make sure that it was clearly the will of the American people to raise taxes instead of cutting spending, that people would be accountable.

In effect, what we were doing was something similar in line to the way the Senate works, with their rules of cloture to end debate. They have to have a 60-vote supermajority. Certainly, over there that would be absolutely necessary for any type of a measure that would raise taxes or lower them. In the same vein, I think it was right for us to have that in this body, because in 1,419 days we will be raising taxes.

The one thing that we all believe in the Countdown Crew is that the goal of the government should not be to create new taxes, but to create taxpayers. We want to cut taxes, allow people to keep more of what they earn. And that is why we have had 7 million new jobs created and record revenues into the Federal Treasury, because the economy is working. Even in a time of war, it continues to grow, and it is incredible that we are able to compete so effectively in a global economy. We need to allow people to keep their resources to build that future for their children and grandchildren.

With that, I would like to recognize another real person who helped run a real business creating jobs out in the economy before he came to Congress, and that is our leader of the Countdown Crew, Congressman BILL SHUSTER from Pennsylvania.

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Mr. DAVIS of Kentucky. I thank you, Congressman Shuster. For those of you who are watching, if you would like to share your perspective, your view, join us via e-mail at CountdownCrew@mail.house.gov, and remember that in 1,419 days, there is a bill arriving.

I would put it to you in a question like this. If you knew or you suddenly went to the mailbox and opened the box up and there was a bill for $2,100 and it was due immediately, that is what is coming if these tax cuts are not extended and made permanent.

Despite the fact of the economic improvement in this Nation, the Democratic Congress is committed to raise taxes. The last time they raised taxes was 25 days ago in the energy industry that has an effect on virtually every job in America, and now we are looking at a wide variety of taxes.

Facts are stubborn things. The success of Republican tax relief initiatives are undeniable. That is the reason that Congressman Shuster and I and the Countdown Crew like to say we want to create taxpayers, not raise taxes. We want to create taxpayers, not create new taxes because the job creators who are out there are real people, like Jack Kingston who was in the insurance industry; Thelma Drake from Virginia now who was a Realtor; Bill Shuster who worked in the automotive support industry. I worked in the manufacturing industry, and all of us saw firsthand the impact of government policies that were often well meant by folks that passed these laws, but they never worked out in that environment to understand the impact that it had on the pocketbook of working Americans.

As we stand here tonight for the seventh week since the Democrats took control of Congress, I am pleased to report one thing, though, is that the Democrats have come to the realization that some facts just cannot be ignored.

This week, the House will vote on H.R. 976, and that is the Small Business Tax Relief Act of 2007. This bipartisan legislation extends critical tax provisions for small business owners and paves the way for the House and the Senate to come to agreement on raising the minimum wage from $5.15 cents to $7.25.

I know you supported this measure, Mr. Shuster, and so did I, but we realize also how important this provision can be for young people just starting out, for working families, and I am glad that the Democrats have realized how important some of the tax incentives are to keeping our businesses growing and creating new jobs, but we cannot stop here. We have got to make this and all the other tax relief provisions permanent that affect individual families, because real people who hold real jobs out in the real world, not here in the halls of Congress, are the ones that pay those taxes, that foot that bill like that $2,098 bill that is going to be arriving in 2 years, in the very near future, if these tax policies are not extended, if they are not continued for the great benefit that they have brought forward.

I would like to highlight some tax provisions that need to be made permanent. First of all, the $1,000 child tax credit reverts to $500. For a family of four, that is $2,000. In my case, my wife Pat and I have six children. That is $3,000. It goes on and on, affecting people right in their pocketbook.

That $500 difference is not $500 that is going for a corporate jet or some rich and famous lifestyle for people who were seen in the tabloid shows on TV. That $500 tax credit goes to real people who live in the real world. They are spending that on their children and investing that in their children's future. I believe we need to allow them to keep more of what they earned because they are going to spend it in a way that is going to benefit their children and their children's children.

Congresswoman Drake mentioned earlier the 10 percent tax bracket. Contrary to some of the spin in the media, the truth of the matter is that the tax burdens have been pushed upward. It is those with more that are paying more now with the structure of these cuts. Millions of people have been taken off the tax rolls, and in fact, the 10 percent bracket was created specifically as a transition for lower-income earners so their tax burden would not be that high, that they would be able to keep more of what they earn to be sure they meet their basic necessities. That 10 percent bracket will disappear when those tax cuts expire in 2010 without action from Congress and from the Senate and from the President of the United States.

I would mention in a light moment that Kentucky is the home of Kentucky Fried Chicken. We were meeting with KFC franchisees from all around the country that came into Washington last week to give their small business ownership perspective, what they do in the food service industry, and they talked unceasingly about the benefits of tax policies that help working families, that help them as small business owners that made sure that they could keep the dollars in their community, creating jobs in their community instead of sending it to bureaucrats in Washington, D.C.

One thing that they brought up that was very important and really affects any capital-intensive business that they wished for was the continuation of the 15-year accelerated depreciation for improvements on new construction of restaurant buildings. Under old law, we are looking at a 30-year depreciation schedule, and when you think about the food service industry, as competitive as it is with new fads and themes to be able to meet the needs of the consumer, 30 years is quite a long time, and I can think of a difference in my lifetime.

These business owners, these men and women who were creating thousands and thousands of jobs around the United States, asked to not have their tax burden eliminated, but simply to have it structured in such a way that they could compete more effectively.

They understand the importance of creating taxpayers versus taxes because those dollars, creating jobs, will come back into the economy, and as we have seen with record revenues to the Federal Government, by cutting taxes we have improved revenue.

The Republican-led Congress had acted and extended these important tax relief provisions to 2007, but we need to make them permanent.

I would like to defer now to my colleague from Pennsylvania to share some more of his perspective on this issue.

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Mr. DAVIS of Kentucky. I thank the gentleman and point out that we in the Countdown Crew can be contacted at countdowncrew@mail.house.gov. The stories that we tell are about real people who are creating real jobs and live in the real world, and they understand the real effects of the policies that are generated here in Washington, that create value, that create a future, and those that create impediment and create barriers to growth.

I think of my friend George Hammond who runs Hammond Automotive. He started in Covington, Kentucky, years ago, and he invested in his business the great benefits that have come from the tax cuts that were passed by the Republican Congress, allowing the American people to keep more of what they own, have benefited him and his employees and family. His business has grown. In fact, he opened a new outlet, a new store in Burlington, Kentucky, to reach even more people and to create even more jobs.

It is like my friend Don Salyers who runs a river transport operation in Ashland, Kentucky, giving opportunity for creating more jobs and a future for that community that is in economic transition.

This week we are going to vote for a tax incentive package that will help to keep the American economy strong by extending tax policies that we passed in prior Congresses. We owe it to our families and this Nation, to our working families, to small business owners, and ultimately to the health of the economy to allow people to keep more of what they earn. We need to do more that creates that future and creates taxpayers, instead of raising taxes.

One thing that I would like to comment on here tonight is the extension of the work opportunity tax credit. Small business owners, especially those that have to take somebody and intensively train them to bring them into that workplace, into that small business to make them into a taxpayer need incentives and opportunities. For example, we have many people who have had some challenges in life, that may have lived life on the edge, may be going through a transition in life, and we want to give them that opportunity. But the way to do that is not to mandate that. The way to do that is not simply to set aside the taxpayers' dollars with no stewardship or oversight, but is to allow the market and the economy to work by providing accountability for those small business owners on the frontline, and also the opportunity and the incentive to make an investment. And what the work opportunity tax credit does is it incentivizes small business owners to hire higher-risk employees, and the goal again is creating taxpayers.

What are some examples of this? Dealing with high-risk youth. My wife, Pat, and I worked with Youth

on the Edge for over 20 years before I came to Congress. And the one thing that I can say is there are many young people that need a vision; they need a new start to overcome mistakes that were made earlier, some wrong assumptions they had about their environment, oftentimes the consequences of poor decisions that they made.

On first blush, a business owner could be hard pressed to want to make that investment. But what this tax credit does is gives an offset to that business owner to make that investment, to reduce the risk, to give somebody a chance. That is the kind of framework, the kind of regulation that government should give that allows the market to work, to bring out the best in people, and ultimately strengthen our economy in the long term.

You know, as I close tonight before yielding to the gentleman from Pennsylvania for his final words, our mission in the Countdown Crew is to do two things: first, it is to let the American people know that in 1,419 days, a $2,100 bill is going to arrive in the mail to basically every taxpayer in the United States when the tax cuts that have produced so much will be repealed automatically, when they sunset. We need to allow people to keep more of what they earn. We have seen the great benefits that come to the economy from that.

The other thing that we do in the Countdown Crew is we want to highlight the positive impact of policies that allow people to control their own lives. The government doesn't create jobs; all it can do is create a framework and environment that either empowers people or restrains them and holds them back. And what we want to do is join with you and the Countdown Crew, and you can contact us at countdowncrew@mail.house.gov to get the American people's story here in the House of Representatives so that the Congress will know, and compel the Congress to act, to allow the small business owners who create the bulk of jobs in this country to keep more of what they earn, to invest it in their employees, to allow working families to keep more of what they earn and invest it in their employees; so that in 1,490 days we can continue creating opportunities rather than stopping something that has been a great benefit.

With that, I will yield to the gentleman from Pennsylvania to close.

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