that have invested in the builder group that runs our stock market, and the federal reserve, it is stealing our money and killing our country. host: thank you for your voice and i appreciate all of the callers this morning. as always, our e-mail and twitter dominicans as well. the "washington journal" will be back -- e-mail and twitter communicants. the "washington journal" would back tomorrow morning at 7:00 a.m.. we will go to the house floor this morning. they're considering a permanent state tax relief for farmers and small businesses. now to the house. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2009]

the speaker pro tempore: the house will be in order. the chair lays before the house a communication from the speaker. the clerk: the speaker's room, washington, d.c., december 3, 2009. i hereby appoint the honorable ed pastor to act as speaker pro tempore on this day. signed, nance nabs, speaker of the house of representatives. the speaker pro tempore: the prayer will be offered by the chaplain, father coughlin. chaplain coughlin: in you, lord, is found the fullness of life and love. no wonder then the human heart always longs for more. we seek you, lord, sometimes without knowing it. lord, our god, people within our borders, within this chamber, pray for this nation. others around the world, pray for the united states of

america as well. so many see our potential for good, for doing the right thing in the search for justice and peace. they long for our success. answer the longing of your people, lord. draw closer to us. help us realize the promise you have placed within us. not by our words alone but by our actions, reveal us as your people of promise. who give you glory both now and forever. amen. the speaker pro tempore: the chair has examined the journal of the last day's proceedings and announces to the house his approval thereof. pursuant to clause 1 of rule 1 the journal stands approved. >> mr. speaker. the speaker pro tempore: for what purpose does the gentleman from new york rise? mr. arcuri: pursuant to clause 1 of rule 1, i demand a vote on the speaker's approval of the journal. the speaker pro tempore: the

question is on agreeing to the speaker's approval of the journal. those in favor say aye. those opposed, no. the ayes have it. the journal stands approved. mr. arcuri: mr. speaker, i object to the vote on the grounds that a quorum is not present and i make a point of order that a quorum is not present. the speaker pro tempore: pursuant to clause 8 of rule 20, further proceedings on the question are postponed. the pledge of allegiance will be offered by the gentleman from new jersey, congressman sires. mr. sires: will you all join me in the pledge of allegiance? i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. the speaker pro tempore: the chair will entertain up to 10 requests for one-minute speeches on each side of the aisle. for what purpose does the gentleman from new jersey rise? mr. sires: i ask permission to address the house for one

minute. the speaker pro tempore: without objection, so ordered. mr. sires: mr. speaker, a year ago as a result of eight years of mismanagement of wall street, our financial system was on the brink of collapse. over the past year, this congress and president obama have made the tough choices and taking the necessary steps to bring back our economy from the verge of disaster. in order to continue to protect consumers, create jobs and grow our economy, our next step must be to connect comprehensive financial regulatory reform. for history has shown we cannot rely on wall street to regulate itself. in the coming weeks we must work to pass our commonsense rules to guarantee that taxpayers are never again on the hope for -- on the risky decisions. they are protected from unnecessary risks by lenders and speculators. consumers must be protected from predatory lending practices. and transparency and accountability are injected in our financial system. i look forward to ensuring that our hardworking families and small businesses will no longer

be hurt nor our economy jeopardize due to unregulated financial system. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from texas rise? mr. smith: mr. speaker, i ask unanimous consent to address the house for one minute and to revise and extend my remarks. the speaker pro tempore: without objection, so ordered. mr. smith: mr. speaker, today the president is hosting a jobs summit. but he is ignoring the eight million jobs held by those in the country illegally that should go to american workers. with a 10% unemployment rate the president should put the interest of americans at work. while the administration ignores the eight million stolen jobs, republicans have a 12-point lead over the democrats. that's nearly a double over the g.o.p.'s lead a month ago. we should hold the administration's accountable enforcing the immigration laws which allows eight million illegal immigrants to remain in the work force. those jobs rightfully belong to citizens and to legal

immigrants. enforcing the law is not only the right thing to do. it is what the american people want. any job summit that doesn't address the jobs occupied by illegal immigrants ignores american workers. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from maine rise? mr. michaud: to address the house for one minute. the speaker pro tempore: without objection, so ordered. mr. michaud: thank you, mr. speaker. almost every mainer has been affected by this recession or knows someone who has been struggling. moving forward into the new year, our nation's record unemployment rate threatens our economic recovery. while i do not support a second stimulus bill, we must refocus our efforts on initiatives that create jobs and promote long-lasting economic development. we must continue to help those who are unemployed in this country, support their families until they are able to find a job, and we must seriously

reform and make efforts to reduce our unsustainable debt because we cannot grow our economy on the backs of future generations. any initiatives considered by congress must be targeted and fiscally responsible to build a foundation for long-term economic growth. i yield back the balance of my time. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from texas rise? mr. poe: i ask permission to address the house for one minute. the speaker pro tempore: without objection, so ordered. mr. poe: mr. speaker, the people of honduras just completed their successful national elections. in june, honduran president tried to change his elected office into a dictatorship. you know, he's the guys that's buddies with venezuela president hugo chavez. he tried to nullify his term limits to hold on to power. his actions were illegal under honor duran law. he was arrested by the army under the order of the supreme

court. and even though the united states inappropriately tried to interveer, he was put in arrest. and the people elected a new person as their new president. congratulations to the people of honduras for sticking to the rule of law despite great odds. they held free and fair elections. the national triumph for the people of honduras is a victory for all those anywhere in the world who live in freedom and seek freedom over tyranny, and that's just the way it is. the speaker pro tempore: for what purpose does the gentlelady from california rise? ms. sanchez: i ask permission to address the house for one minute. the speaker pro tempore: without objection, so ordered. ms. sanchez: mr. speaker, i rise today to honor a fallen soldier from my district, jesus flores jr. was killed in action on october 15 of this year in afghanistan. he leaves behind his mother, father, four sisters and one brother. jesus enlisted in the navy

straight from high school and served four years. in 2003 he enlisted in the army. he became a combat specialist. he was on his first tour in afghanistan when he was killed in action. one of his sisters spoke of jesus in this way, a loving son, a generous brother, a soldier who loved military life. this was apparent in the many medals adorning his uniform. the people of this body and people throughout this country could not exist without the dedication and sacrifices from the soldiers who serve. soldiers like jesus, soldiers who above all else want to honor this country, preserve our freedoms and protect our families. there is nothing that i can say or do to take away the pain his family feels at jesus' loss. but i hope that they are comforted by knowing that specialist jesus flores will

remain and we will continue to honor his service every day. thank you, and i yield back. the speaker pro tempore: the gentlelady yields back her time. for what purpose does the gentleman from indiana rise? mr. pence: ask unanimous consent to address the house for one minute and to revise and extend my remarks. the speaker pro tempore: without objection, so ordered. mr. pence: today in the midst of a harsh recession, the president will convene a jobs summit at the white house. coming nearly one year after the passage of a so-called stimulus bill that speaker pelosi said was about jobs, jobs, jobs, unemployment remains at record levels in this country. today's white house jobs summit is a mission that the economic policies of this administration and this congress have failed. but, mr. speaker, we can bring america back by applying fiscal discipline here in washington, d.c., and giving the american people fast-acting tax relief for working families, small businesses and family farms. jack kemp said years ago there's wisdom and intelligence

in ordinary people more than experts. let's reject the politics of borrowing and spending and bailouts. let's embrace what is always worked and let's bring america back with fiscal discipline and tax and tax relief food. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from ohio rise? mr. kucinich: good morning, mr. speaker. i ask permission to address the house for one minute. the speaker pro tempore: without objection, so ordered. mr. kucinich: america is in the fight of its life and the fight's not in afghanistan. it's here. we're deeply in debt. our g.d.p. is down. our manufacturing is down. our savings are down. the value of the dollar's down. our trade deficit is up. business failures are up. bankruptcies are up. foreign borrowing is up. the wars are a threat to our national security. we'll spend over $100 billion next year to bombation of poor people while we re-energize the

taliban, destabilize pakistan, deplete our army and put our soldiers' lives on the line. 15 million people at home are out of work. $13 trillion in bailouts for wall street. trillions for war. when are we going to start taking care of things here at home? the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from south carolina rise? mr. wilson: mr. speaker, i ask permission to address the house for one minute and to revise and extend my remarks. the speaker pro tempore: without objection, so ordered. mr. wilson: mr. speaker, success in afghanistan shall be defined in the tradition of ronell reagan. we win and the terrorists -- ronald reagan. we win and the terrorists lose. the president has listened to our commanders on the ground for a counterinsurgency surge. to secure afghanistan and protects american families.

this decision will defeat al qaeda terrorists and the taliban in afghanistan. and along with the border of pakistan, u.s. troops are denying al qaeda and taliban safe havens in which to operate. for the sake of our mission, american families at home and our brave men and women in uniform, i hope the president will rally democrats for victory in afghanistan. supporting the president's decision shouldn't come down to party lines. terrorists do not differentiate between republicans and democrats as targets. in conclusion, god bless our troops and we will never forget september 11 and the global war on terrorism. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from new york rise? mr. hall: i ask permission to address the house for one minute. the speaker pro tempore: without objection, so ordered. mr. hall: thank you, mr. speaker. earlier this week i spent a day working alongside al mcdonald, a delivery driver for u.p.s.

and together we delivered packages to small businesses in downtown washingtonville, new york. it was a great opportunity to speak with small business owners about the current economic climate that has affected them. their message was consistent and needs to be heard. small businesses are struggling. it is critical that we give small business every opportunities to succeed, which is why i joined with representative christopher carney to urge the extension of an immediate tax break for newly purchased business equipment. extending this tax break will provide immediate relief for businesses that purchase deappreciateable property, such as equipment, vehicles, furniture, machinery, buildings and other items. our small businesses need ever break they can get these days. they are the engine that drives our economy and creates jobs. this tax break helps small businesses and stimulates the local economy. we cannot afford to let it expire. and i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the

gentleman from georgia rise? mr. gingrey: to address the house for one minute and to revise and extend. the speaker pro tempore: without objection, so ordered. mr. gingrey: mr. speaker, i ask you to take a look at the economic challenges that faces our country. across the united states, employment is at a 26-year high, 10.2%, and more than 2.8 million jobs have been lost since the $1 trillion stimulus was signed into law last february without a single republican vote in this house. in my home state of georgia, eight out of the nine counties in my district have unemployment rates of 10%, and two counties are over 13%. put simply, mr. speaker, my constituents need jobs and they need them now. yet, the democrats' plan on the health care, on the economy and the energy do the exact opposite. they raise taxes and sacrifice more jobs. this is not the way to stimulate our economy and not the way to help my constituents. we need real solutions that will require tough choices in washington. they involve tax relief for working americans, and republicans stand ready to work with you on that. and i yield back. .

mr. arqurey: i wanted to take this opportunity to let my colleagues to a piece of legislation i introduced to assist our dairy farmers across the country in their critical time of need. dairy farmers across my upstate new york district have come to me and asked for help. they have always been there to provide food for us as consumers and now it is time for us to help them continue the long tradition of family-owned and operated dairy farms that are passed from generation to generation. my bill is inspired by a piece of legislation introduced in the new york state senate by senator alp fer bertine. the bill eliminates hauling costs for milk producers and clarifies the ownership of the milk is transferred from the milk producers to the milk plant when it leaves the farm and is mixed. the bill also makes it unlawful for processors to charge a producer any cost incurred in the process of picking up the

milk and delivering it to a milk plant receiving station or transfer station. the time to act for our dairy farmers is now. thank you, mr. speaker. i yield back the balance of my time. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from texas rise? >> unanimous consent to address the house for one minute. revise and extend my remarks. the speaker pro tempore: without objection, so ordered. mr. johnson: thank you, mr. speaker. as a 29-year air force veteran and prisoner of war for nearly seven years, i know what happens when you try to run a war from the white house. you lose. winning the war in afghanistan and defeating al qaeda is vital to the safety of our nation. to quote the president, if left unchecked the taliban insurgency will mean a larger safe haven from which al qaeda would plot to kill more americans. so let's listen to the military leadership in afghanistan, setting a timeline to end military engagement is not the way to win a war.

instead, it empowers our enemies and sends the wrong message to our troops, our allies, and the american people. we need to listen to the experts on the ground instead of the politicians who are thousands of miles away from the front. we need to stop talking about exit strategies and troop withdrawal and focus on giving our troops the resources they want, need, and deserve. let's eliminate the rules and fight to win. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from illinois rise? >> to address the house for one minute. the speaker pro tempore: without objection, so ordered. >> thank you, mr. speaker. lee brandeis said sunlight is the best disinfectant. with ethics once more in the headlines, i think it's worth asking how far will it come in bringing in light to the people's house? this is not a partisan issue. scruppings votes both ways. it is rather an issue ever trust. these times more than ever demand effective government yet

it is hard to govern effectively without the public's trust. we need to complete the active ethics investigations currently being considered in this house and we need to eliminate the conditions which contributed to these violations in the first place. i have introduced two measures to eliminate pay to play activities at both the state and federal level. h.r. 614 would prohibit earmarks to for-profit entities and h.r. 3427 would eliminate federal provisions which prevent states like illinois from cleaning up their act on pay to play corruption. i urge my colleagues to join me in supporting both of these measures. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from texas rise? >> mr. speaker, i rise to address the house for one minute. and revise and extend my remarks. the speaker pro tempore: without objection, so ordered. >> mr. speaker, i commend the president for finally making the right decision to send additional combat troops to

afghanistan. however, i have deep concerns with the president's insistence on a hard july, 2011 deadline for withdrawal. the president seeks to send our troops to the battle while at the same time notifying our enemies of when they will be coming home. to president also spoke of making decisions based on conditions on the ground. so which is it? a withdrawal on a date certain or based on the conditions on the ground? the president offers many what ifs but very few answers. our nation's troops have fought admirably in dangerous conditions to turn the tide against those who attacked our nation on september 11. the president cannot have it both ways. i urge him to focus this new strategy on victory and not withdrawal. i yield back my time. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from new york rise? >> ask unanimous consent to

address the house for one minute. revise and extend my remarks. the speaker pro tempore: without objection. mr. tonko: thank you, mr. speaker. i would like to take this opportunity to congratulate parsons child and family certainty for immaculate community services they provide for the needs of children and families in the capital region of upstate new york. it was founded some 180 years ago and has become one of the largest human service agencies inup state new york. its contributions to the 9,000 children and families it serves includes counseling services, parenting education, child abuse prevention and treatment, and mental services. while there is no typical child served by parsons, most have endured a significant traumatic event in their lives. the highly trained staff at parsons using the latest techniques works to improve the lives of all they serve. the role and importance of the families are stressed with the ultimate goal of preserving the family unit wherever and whenever possible. today i want to commend parsons service and commitment to our

region's families and children. i encourage us all to look towards them as a model of positive support and outcomes in a system that has turned around the lives of so many. with one in every five american children living in poverty, we commend the role of the professionals at parsons for the work it does. thank you, mr. speaker. i yield back. the speaker pro tempore: the gentleman's time has expired. for what purpose does the gentleman from virginia rise? >> mr. speaker, i ask unanimous consent to address the house for one minute. the speaker pro tempore: without objection, so ordered. mr. wittman: mr. speaker, i rise today to recognize the mary gray foundation and reach across america. the foundation and its military families support fund provides america's military families with emergency financial support and reforces in their time of need. the foundation recognizes that the sacrifices that our military service members and their families continue to make are not only personal and professional, but also financial. the foundation assists by

providing financial assistance, education, and support to help military families avoid foreclosure or eviction from their homes and preserve their homeownership. they also provide emergency financial support, food, clothing, utility payments, transportation, rent, and other critical resources. this year the foundation partnered with reach across america which places wreaths on the graves of veterans to establish the patriots' wreath program. i applaud the outstanding contributions of organizations like the mary gray foundation and their work to honor the contributions of our nation's veterans, service members, and their families. with that, mr. speaker, i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from florida rise? >> to address the house for one minute. revise and extend. the speaker pro tempore: without objection, so ordered. >> last week hi a chance to visit a remarkable organization in my district, the arc of brow ward county. it is a private, not-for-profit organization that supports

children and adults with autism, down syndrome, and other developmental disabilities. this innovative group provides an invaluable service for their clients in our community. currently serving over 1,600 people, they also provide good jobs for more than 450 local health care, educational and other professionals. they fund independence and dignity both at home and work. arc is currently home to more than 80 residents, many of whom have single family homes that it owns and operates. in addition they provide job training in fields like culinary arts and operate an on-campus recycling business. i would like to thank the residents and staff at arc for welcoming me so warmly last week and congratulate all of them on their extraordinary contributions to our community. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from rhode island rise?

mr. langevin: to address the house for one minute. the speaker pro tempore: without objection, so ordered. mr. langevin: mr. speaker, i'd like to thank president obama for convening a forum on jobs and economic growth at the white house today. as too many of our constituents enter this holiday season, perhaps having lost their jobs or facing lower wages, higher health care costs, or out-of-control mortgages, and many of whom have lost their homes, in fact, we absolutely must focus on rebuilding our economy and pursuing all avenues to create jobs. rhode island has certainly felt the painful effects of the current economic downturn. that's why it was important to me we have a seat at the form yum. i'm happy to say that the president of the college of rhode island will be there to share his perspective on work force development, job training, retraining workers, and educational opportunities for the 21st century.

economic development continues to be my top priority. i look forward to working with my colleagues in the congress and president obama to work to increase job opportunities across our country. thank you, mr. speaker. i yield back the balance of my time. the speaker pro tempore: the gentleman yields back the balance of his time. for what purpose does the gentleman from colorado rise? mr. polis: mr. speaker, by direction of the committee on rules i call up house resolution 941 and ask for its immediate consideration. the speaker pro tempore: the clerk will report the resolution. the clerk: house calendar number 136, house resolution 941, resolved that upon adoption of this resolution it shall be in order to consider in the house the bill h.r. 4154, to amend the internal revenue code of 1986 to repeal the new carryover basis rules in order to prevent tax increases and the imposition of compliance burdens on many more estates than would benefit from repeal, to retain the estate tax with a $3,500,000 exemption, and

for other purposes. all points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule 21. the bill shall be considered as read. all points of order against provisions in the bill are waived. the previous question shall be considered as ordered on the bill to final passage without intervening motion except, one, one hour of debate equally divided and controlled by the chair and ranking member of the committee on ways and means. and two, one motion to recommit. section 2, in the engrossment of h.r. 4154, the clerk shall. a., add the text of h.r. 2920 as passed by the house as new matter at the end of h.r. 4154. b, conform the title of h.r. 4154 to reflect addition to the engrossment of the text of h.r. 2920. c, assign appropriate designations to provisions

within the engrossment and d, conform provisions for short titles within the engrossment. the speaker pro tempore: the gentleman from colorado is recognized for one hour. mr. polis: for the purposes of debate only, i yield the customary 30 minutes to the gentleman from florida, mr. diaz-balart. all time yielded during consideration of the rule is for debate only. i ask unanimous consent that all members may have five legislative days to revise and extend their remarks and to insert extraneous materials into the record. the speaker pro tempore: without objection, so ordered. mr. polis: i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. polis: mr. speaker, this rule provides for consideration of h.r. 4154, the permanent estate tax relief for families, farmers, and small businesses act of 2009. the rule waives all points of order against consideration of the bill except those arising under clause 9 and 10 of rule 21 and against the bill itself. the rule provides that the previous question shall be considered as ordered without intervening motion except one hour of debate and one motion to recommit with or without instructions.

in the engrossment of h.r. 4154, the clerk is directed to add at the end of the text of h.r. 2920, the statutory pay-as-you-go act of 2009 as passed by the house. mr. speaker, this past weekend in honor of the thanksgiving holiday, nbc's "meet the press" hosted the reverend rick warren in a discussion on giving. and civic duty. during the dialogue, reverend warren stated his belief that, it isn't a sin to be rich but it is a sin to die rich. i don't agree with reverend warren's views on many issues, i ask my colleagues to reflect on the meaning of those words. the reverend was speaking, of course, of the importance of charity and moral obligation to improve the condition of fell man whenever and wherever we can. today i speak to you with the same sense of duty. duty to our country that has allowed me personally to achieve personal wealth. and in turn to help others. mr. speaker, the bill before us

under this rule is a significant tax cut. without this bill the estate tax will return in the year 2011 at a much lower exemption amount. an exemption of $1 million instead of an exemption much $3.5 m and much higher tax rate. a tax a rate of 55% rather than a tax rate of 45% which we have under this bill. we all know that the occasion of the death of a loved one is a very difficult time for family and friends. the price of love is unfortunately lost. and that's a price that we all must pay at some point in our lives. while no act of government can ease this emotional pain, today we have the opportunity to at least give families who have achieved great success some surety in their ability to ensure that the next generation will receive the benefit of their works. in estate tax distorts a

premarket less than an income tax. instead of taxing productive capital, it takes taxes from a random heir. on a revenue neutral basis, i, for one, would much rather pay taxes after dying than before dying. and however much in income tax may distort the market, an estate tax distorts it less on a revenue neutral basis. mr. speaker, allow me to be clear. individuals like myself who through hard work have been able to start businesses, create jobs, and as a result have been rewarded with financial resources to provide a high standard of living for our families, have a duty to our fellow americans to pay our fair share. and an estate tax, existence of an estate tax is critical to prevent a permanent aristocracy from arising in this country. when i think of the everyday tax

burden for my constituents or for that matter on my staff and associates as a proportion ever their income as a result of sales tax, property taxes, let alone income taxes, i can think of no credible argument for suggesting that an estate tax is unreasonable. i also take comfort in knowing that with the passage of this bill we are locking in the 99% of my constituents will never pay the estate tax. according to the urban brookings tax policy center under this proposal only.25%, that's 1/4 of one percent of deaths would be subject to an estate tax. we asked those who labored to build the roads to also shoulder the cost. we ask those who educate our children to also help pay for the schools. shouldn't we ask those who die with wealth to help give back a little to those around them? i ask my colleagues, this is fair. this is right. when factoring the full cost of

being a member of a society, it's very clear that all too often we ask the 340es f those who have the least. . cushion the success of families that are successful in this country. i can personally tell you as one of those americans that is in the .25%, i'd gladly pay an estate tax to give back to the 99.75% of families who do the heavy lifting in this country every day and ensure that they never have to pay this tax and that family farms can be passed down to the next generation and small operating family businesses will be subject to no estate tax. yes, mr. speaker, i agree with reverend warren that it's no sin to be rich, but i disagree that it's a sin to die rich. a life's work should rightly be a benefit to one's heirs and

one's causes. my belief that a family farm, a family business or simply accumulated wealth should be passed from one generation to the next is consistent with the fact that those that benefited the most from the security and freedom that this country offers should pay their fair share for the benefits and the landscape that allow them to reach the level of success that they did. what all americans deserve, rich or poor, is the knowledge that at a time of great personal pain for families the stress will not be exacerbated by a complex or uncertain tax policy. that's one of the many reasons that i ask my colleagues to join me in supporting this rule and the underlying bill. throughout our history, transfer taxes have been used to fund critical operations at the federal government. the modern estate tax was established by the revenue act of 1960 to offset the declining tariff revenues in the united states' participation in world war i.

since world war i, the estate taxes continue to provide federal revenues to finance world war i, the great depression. and it has an unlimited deduction for charitable giving. in 2006, nearly 2/3 of charitable requests came from estates valid over $10 million. what a way for americans to leave a legacy for the next generation. universities, hospitals and arts organizations have come to rely on these contributions from our nation's most wealthy. we need only to look at a college campus to see the philanthropy on our students and the future displayed prominently on plaques outside many campus buildings like those at the university of colorado in boulder which i represent. h.r. 4154, the permanent estate tax relief for families, farms and small businesses act does exactly what it says. the bill will make permanent

the lowest estate tax rate our nation has seen in a decade making the current rate permanent, giving families the ability to plan ahead for an orderly transfer of assets. business owners will be able to plan ahead to ensure that their employees will still have a job and their company will continue to provide for their families after they're gone. farmers will be able to keep their land in their family. i remind my colleagues that the $3.5 million exemption, that means that no family will pay any estate tax unless the estate is valued at at least $3.5 million is substantially higher than it's been in this decade, and without our action today we put families in an unnecessary financial uncertainty. without this bill, the estate tax will return in the year 2011 at a much lower exemption amount of $1 million and a much higher tax rate of 55%. i reserve the balance of my time. the speaker pro tempore: the

gentleman reserves the balance of his time. the gentleman from florida. mr. diaz-balart: thank you, mr. speaker. i'd like to thank my friend, the gentleman from colorado, mr. polis, for the time. and i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. diaz-balart: eight years ago, mr. speaker, the republican-led congress passed legislation that provide over $1.3 trillion in tax relief by, among others, gradually decreasing rather increasing the exemption for the estate tax while decreasing the tax rate itself. as part of that legislation, the estate tax, also known as the death tax, is set to disappear next year. the underlying bill would undo the repeal of the death tax and

instead bring back the tax, extend the estate tax rate of 45% and include and an -- an unindexed exemption. i believe these are excessably high rates of taxation, especially when we realize that the tax is imposed at the end of a lifetime of work on which taxes were paid throughout the stages in which income was made. i believe it is wrong to tax individuals who spent their entire lives providing with their families with some financial security, and so that's why i oppose the

underlying legislation. this double taxation, which is what really we're talking about today, i believe is destructive to family-owned businesses and farms which are often torn apart or need to be liquidated entirely just to pay those burdensome taxes at the time of des -- time of tet. americans who work hard -- time of death. americans who work hard and pay taxes all their life i don't believe should be punished for responsibly saving with yet another tax when they pass away. when the country has double-digit unemployment, the current majority in congress is threatening small businesses,

the engines of economic growth and job creation in the nation with even higher tax burdens. small businesses are often struggling to survive to meet payroll, avoid layoffs, and yet this is another example, mr. speaker, of the fact that the majority time and time again is proposing legislation that hampers the ability of small businesses to thrive and to hire new workers. it's unfortunate that the majority feels that they can continuously impact, hit small businesses with tax after tax and expect them to survive and thrive and retain their workers . it's not the way the economy works. even if small business owners do not receive an estate tax

bill, they still spend resources on estate tax compliance. according to a recent survey of small and medium-sized manufacturers, those small businesses spend an average of $94,000 on fees and estate planning costs in preparation for an estate tax bill. imagine what a small business, mr. speaker, could do with that money. they could invest it in their country to grow that business, they could add more workers. instead, the majority prefers placing more and more burdens. and this is but one example the legislation being brought forth today of the majority's insessent endeavor to place more and more burdens on the

engines of our economic growth. small businesses are responsible for 60% to 80% of all new net jobs that were created in the last decade. if the majority continues with their current policies, if they continue on this track of placing more and more burdens on small business, the unemployment rate is going to continue to rise. i think what we should be doing is everything possible to lower unemployment, to spur investment and job growth. that's where we should be heading. so i believe what we should be doing is extending the repeal of the death tax and many of us in this congress, especially on this side of the aisle, we feel very strongly on this issue.

short of passing the permanent repeal, which i support at the very least i think we should enact legislation that sets a reasonable rate, provides an appropriate exemption amount and indexes that amount for inflation. we already saw the alternative minimum tax and not indexing is capable of doing when congress acts in that manner. so unfortunately the bill does nothing of what i just said. a reason rate and indexing and exemption amount. but yet we on our side of the aisle will not be able to have a debate on legislation, on a

proposal to do such that, to index an exemption amount and set a reasonable rate indefinitely into the future. we won't be able to do that because the majority again is closing down the process, shutting down debate. they promised to do quite the opposite, as you know, mr. speaker. so this contrasts what the current majority is doing today with the estate tax rule that we passed when we were in the majority. that rule allowed our distinguished colleague, mr. pomeroy, to offer his substitute amendment. today, we in the minority will be treated much differently. we will not be given the opportunity that we gave the current majority and mr. pomeroy. we will not be allowed to debate our substitute proposal. we will not be afforded a vote

on our alternative legislation. the difference in treatment is not an isolated ibs dent, but the standard -- isolated incident but the standard operating procedure for this majority. they continuously close down the process. they shut out members from both sides of the aisle from being able to introduce and have debated their amendments, and i think it's unfortunate. i reserve the balance of my time. . mr. polis: let me be clear what happens if the house does not pass this bill. the estate tax would go away for one year. in the year 2010. then it would return at 55% and a deduction of only $1 million. so every estate above a million

dollars would be taxed at a rate of 55%. many families would lose their family businesses, their family farms if we fail to act and pass this bill to preserve the ability of americans to pass along their assets to the next generation. it would also create a very bizarre circumstance in the year 2010 where there would actually be a incentive to die. i had a friend with a good sense of humor who stated that his wealthy family, his father had joked with him that he would plan not to stand near the top of a staircase in the year 2010 if that was the case. mr. speaker, the estate tax is paid by very few americans. historically fewer than 2% of americans have paid the estate tax and under this bill will be even less. only 3.5% of those who pay the estate tax pay it on small business assets and only 5% on farms. we are looking specifically at

family-owned businesses the number goes down to one half of one percent. mr. speaker, let us talk about the options for wealthy families. the estate tax does two important things. first it provides revenue from government to provide services in the context which wealth can, that awill yous entrepreneurs and businesses to -- that allows entrepreneurs and businesses to succeed. the money funds or social security safety net, or regulatory framework that allows businesses to prosper. it is the protection of the law that allows those who have gained wealth to be able to keep it and transfer it to the next generation. the second and arguably also more important function of the estate tax is it provides a incentive for charitable giving by supporting charities and nonprofit organizations of their choice, the wealthy can simultaneously give back to the community directly and protect the assets that they leave to their heirs. the estate tax is an important

incentive, to leverage the work of government with the efforts of nonprofits to create broad opportunity and a's sentence -- assistance throughout society. by making the rules stable and permanent, we give families the ability to plan for their future as well as invest in the future of their communities. we know that the plan giving is an important part of the fundraising strategy for the nonprofits that do the good work that government and industry cannot. and there is no denying the link between the estate tax rate and the amount of planned giving. a 2004 congressional budget office analysis of charitable giving in the year 2000 indicated that estate tax not only provided a incentive for charitable giving at death, but also played a role in philanthropic decisions made in people's lives. the same report estimated that the repeal of the estate tax would result in a decrease in bequests in anywhere from 16% to 28% or $13 billion to $25 billion. more than the total corporate donations in a year.

i ask my colleagues, which universities do you know that could take a 16% to 28% hit to their endowment coupled with the decreases in the market of the last year? and yet continue to prepare our students to be competitive in the global marketplace. this is the real world impact that what would actually occur. were the estate tax to be abolished in the year 2010. not to mention what would happen when it came back at 55% and only $1 million deduction the following year. imagine in the worst case scenario devised by opponents of the estate tax, imagine came that came through for a family that in order to pay the tax the heirs had to liquidate the assets of the business that had been in the family for a long time. do opponents of this bill truly believe that somehow making the family pay capital gains tax on these assets if they purchased them in 1959 would be better? i know in my district due to the growth and economic success

colorado has enjoyed, taxation on real estate assets as an example from a 1959 basis would be devastating. it would capture a much larger of middle class families, many middle class families and wealthy families worth $1 million, $2 million, $3 million be would be stuck with large tax bills forcing liquidation if they were forced to pay capital gains tax on a 1950 basis or 1959 basis. i can't tell my constituents that i'm against a permanent reduction in the estate tax and yet support a dramatic increase in capital gains taxation for them which would bring the estate tax to upper middle class families. i hope the majority of my colleagues across and will support the rule and the underlying bill. i'd like to thank chairman rangel, the member of the committee on ways and means and their staffs for the efforts on bringing them this bill and my good friend, representative pomeroy, from north dakota, for introducing this bill. i urge my colleagues to consider that 99.75% of americans will never pay this tax and those who

do should be thankful that they have had the opportunity to succeed in this great country and the privilege, the honor of being in a position where they are subject to this tax because their estate is worth more than $3.5 million. i would like to remind my colleagues who stand by the old adage you can't take it with you and ask my friends and colleagues to consider the far-reaching benefits of charity and sense of duty to country and ask for the passage of this rule and the underlying legislation. i reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance of his time. the gentleman from florida. mr. diaz-balart: i yield three minutes to my good friend, dr. gingrey of georgia. the speaker pro tempore: the gentleman is recognized for three minutes. mr. gingrey: mr. speaker, i thank the gentleman for yielding. i rise in strong opposition to this rule as well as the underlying bill, h.r. 4154, the permanent estate tax relief for farmers, families, and small businesses act of 2009. in 2001 this congress passed legislation that was signed into

law by president bush that provided significant estate tax relief for families. before this action was taken, individuals who passed away could face up to a 55% tax for estates valued over $3 million. additionally, mr. speaker, if the value of those estates were between 10 million and 17 million, then the estates were hit with an additional 5% surtax a. grand total of 60%. since the 2001 tax cuts have been enacted, the overall estate tax has been gradually reduced. for death that is occur in 2009, the estate tax ceiling is 45% for estates that are valued over $1.5 million but it allows up to $3.5 million in assets to be exempted. furthermore, current law dictates and rightfully so that the estate tax will be completely repealed in 2010. mr. speaker, while a number of my colleagues on the other side of the aisle will claim that the estate tax in this bill will

only affect the lavishly wealthy, the estate tax has the potential to drive a number of hardworking families, many of whom are small business owners, to liquidate assets, sell their businesses and farms that they have owned for generations. clearly this is not the intent of any form of an estate tax. i don't believe that reverend rick warren remarks on "meet the press" were advocating that our children and grandchildren should be born poor and die poor. i wholeheartedly believe there should be no taxation without respiration. i support a full repeal of the estate tax. former congressional budget office directs that douglas holt eachen released a study that eliminating the death tax would be to increase small business capital investment by $1.6 trillion and create up to 1.5 million jobs. something this country, mr. speaker, desperately needs.

unfortunately this closed rule and underlying bill look to break the commitments made by congress in 2001 by extending the estate tax at 2009 level in perpetuity. i'm also concerned that although the exemption level is $3.5 million under h.r. 4154, it's not properly indexed for inflation and we could therefore find ourselves in a situation similar to the alternative minimum tax where individuals could inadvertently be subjected to the tax in the future. so, mr. speaker, i urge all of my colleagues defeat this rule. let's go back, have an open debate, as the gentleman from florida said, on the repeal of the estate tax. that's what we should do. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman from colorado. mr. polis: i would like to inquire of the gentleman from florida if he has any remaining speakers? mr. diaz-balart: yes, we do. mr. polis: i'm the last speaker on my side.

i'll reserve my time until the gentleman has closed. the speaker pro tempore: the gentleman from colorado reserves his time. mr. diaz-balart: it's my pleasure to yield three minutes to my friend and distinguished colleague from the rules committee, dr. fox. -- dr. foxx. the speaker pro tempore: the gentlelady is recognized for three minutes. ms. foxx: thank you, mr. speaker. i thank my colleague for yielding this time. i want to say that this rule and the bill exemplify the arrogance of the majority party. once again they show their bias to government control of our lives as opposed to support of the american family. they also show their arrogance in bringing a closed rule because they indicate that this is a perfect bill. it hasn't been through committee. very allow no amendments. but they -- so they must consider it a perfect bill. we know that there's at least one flaw, as my colleague from georgia just indicated, and that is the problem with indexing. and just as we have had to fix the a.m.t. every year, we will

have to do that with this or else more and more people will be caught with this bill as it is proposed. they continue to assault those who create jobs on the very day that the president is having a conference on jobs. they want to seem to be doing something positive while really doing great damage to our economy and hardworking americans. and, mr. speaker, i would like to refer to an article from the "wall street journal" of 31 march 2009 and place it in the record. the speaker pro tempore: without objection. ms. foxx: thank you, mr. speaker. lawrence summers, president obama's chief economic advisor, declared recently that let's be very clear, there are no no tax increases this year. thererer no-no tax increases this year. oh, yes, yes there are. the president's budget calls for the largest increase in the

death tax in u.s. history in 2010. the announcement of this tax increase was buried in footnote one on page 127 of the president's budget. that note reads, the estate tax is maintained in its 2009 parameters. that means the death tax won't fall to zero next year as scheduled under current law but estates will be taxed instead of up to 45% with an exemption level of $3.5 million. better not plan on dying next year after all. but -- i know that we are not discussing the president's budget here today, but that bill, i think this shows that they are trying every way possible to reinstitute what is probably the most hated tax in the united states. the american people understand this is not a fair tax. whether they are hit by it or not. and i want to say another piece from the "wall street journal" article, the importance of

intergenerational wealth transfers was first measured in a national bureau of economic research study in 1980. that study looked at wealth and savings over the first three quarters of the 20th century and found that, quote, intergenerational transfers account for the vast majority of aggregate u.s. capital formation. the co-author of that study was lawrence summers. mr. summers understood this when he was first at harvard. mr. diaz-balart: 30 more seconds. ms. foxx: thank you, mr. chairman. i appreciate the gentleman yielding the time. this is not gooder for the american people. -- this is not good for the american people. at a time when we need to be creating jobs not destroying jobs. again, the president wanted to create jobs with the stimulus. he's created no jobs with it. this is going to destroy even more jobs. this is the wrong direction to be going. i yield back. the speaker pro tempore: the gentlelady yields back her time. the gentleman from colorado reserves. the gentleman from florida. mr. diaz-balart: i yield three minutes to my distinguished

friend from texas, mr. gohmert. the speaker pro tempore: the gentleman is recognized for three minutes. mr. gohmert: thank you, mr. speaker. i do agree with my friend from colorado. we all should be paying our fair share. however this congress says -- has said in the past, maybe 39% should not pay their fair share. they won't pay any income tax. and this administration apparently has indicated he wants to take that at least to 44% of americans not paying their fair share. but what the death tax does is go after people who have paid at the highest levels of income tax throughout their lives and yet have still been frugal enough to build a business, build a farm, and then when they are dead, come in and take it away from them. they paid their fair share. this, even though the argument is made that this won't affect that many people, that not that many people pay the estate tax,

when something is not right, you need to draw the line. that's what the founders did. they said, principle is worth fighting for and we will not give in to these conphysical can torrey practices -- confiscatory practices of the monarch in great britain so we had a revolution. after someone dies and someone comes in and steals from them, we consider that in most society, reprehensible. that's just despicable. i have sentenced people personally to prison for doing that. . it's ok. but it is not ok. it is not ok. i have a personal family

situation, a great aunt who her husband predeceased her, they built through generations a family farm and they were land rich but money poor but they had employees, they had things going on, they had a very active ranch. but when she died the estate tax was 55% and within the year while the estate was being settled the fdic dumped land. the $5 million estate fell in value, land that was valid at $2,000 at her death became valued at $700 an acre. the i.r.s. came in, they sold every acre of my great aunt's land. her wonderful home where she had a will, she promised things to her direct descendents. we all had to gather at an

auction, the i.r.s. forced to buy things from my great aunt. that is morally wrong and jesus never advocated the government go steal. he said you do it, do it with your own money, don't go steal it from someone else. and that's why this should not pass. the speaker pro tempore: the gentleman's time has expired. the gentleman from colorado reserves. the gentleman from florida. diaz-balart thrart mr. speaker, i yield two minutes to my distinguished friend from texas, mr. culberson. the speaker pro tempore: the gentleman is recognized for two minutes. mr. culberson: thank you, mr. speaker. this debate today from every angle reminds me once again reinforces how proud i am to be a texan, how proud i am to be a conservative republican because it is -- the contrast is just astonishing. to think today the democratic president at the white house is holding a jobs summit and breakout session, trying to figure out how to create jobs while his democrat friends in congress are creating a permanent death tax.

raising taxes once again is the standard reaction of this majority that has controlled congress since 2007. in my first year in 2001 was here, proud to vote for permanent repeal of the death tax, taking it to zero forever. the democrats in the senate prevented us from making that permanent by blocking the 60 votes, and that's often a source of confusion that people need to remember. often ask me, why isn't the death tax repealed permanent? it's because democrats in the senate prevented us from getting 60 votes, which was required to make it permanent. so we were stuck with this 10-year window. and reaction of the democrat majority in congress today is to create a permanent death tax and try to pitch it as a tax reduction. it's absurd. it's sad. it illustrates clearly how blind the democrat majority is to the fundamental truths of

job creation. we in texas understand to create jobs you cut taxes. you pass tort reform to prevent frivolous lawsuits. we brought doctors into texas by giving doctors who -- medical malpractice caps and limits on lawsuits against doctors. we have brought people from all over the country have moved to texas because of the number of jobs we create with a low tax environment, with litigation reform. mr. speaker, it's not -- these are self-evident truths. you create jobs by cutting taxes, by protecting businesses from excessive litigation and regulation. and this is why i am again reminded why i'm so proud to be a conservative republican and i try not to use that word often, but today it illustrates why. we are going to have a revolution next year. 2010 there's going to be a revolution at the ballot box and we will have a conservative majority in this house because of votes like this to raise taxes.

the speaker pro tempore: the gentleman's time has expired. the gentleman from colorado reserves. the gentleman from florida. mr. diaz-balart: mr. speaker, it's my pleasure to yield two minutes to my distinguished friend from louisiana, mr. scalise. the speaker pro tempore: the gentleman is recognized for two minutes. mr. scalise: thank you, mr. speaker. and i want to thank my colleague from florida for his leadership on this. you know, mr. speaker, the american people across the country are asking, where are the jobs? and all they see from this democrat-controlled congress is more bills that will actually kill jobs, run jobs out of the country. and make no mistake about it, the death tax will kill more jobs in this country. to make a permanent 45% tax on death is immoral. and think about this, the small businesses in our country are hit the hardest. the actual job creators in this country are hit the hardest by the death tax. when a family member dies, the biggest decision they make after that death should not be how should they sell the family business because they can't afford the taxes after death.

and here they have a bill to enshrine the tax at 45%. now, if anyone wonders as the president is holding the jobs summit why unemployment smashed through the 10% mark earlier this year, all they have to look at is the policies that president obama keeps bringing. it started with the stimulus bill that didn't create jobs, it added more debt to our children and grandchildren and then brought the policies like the energy -- this energy tax, the cap and trade energy tax. and then the government takeover of health care. and here we are today debating a bill that will enshrine a 45% tax on death. and speaker pelosi wouldn't allow us to bring an amendment to the floor to repeal it. and there was a clear contrast between the two parties on this issue. when we're in the majority, we will repeal the death tax. and here we have a bill that will enshrine that 45% permanently. taxation without respiration should not be the law of the land. i yield back. the speaker pro tempore: the gentleman yields back the

balance of his time. the gentleman from colorado reserves. the gentleman from florida. mr. diaz-balart: mr. speaker, i yield two minutes to my distinguished friend from california, mr. campbell. the speaker pro tempore: the gentleman is recognized for two minutes. mr. campbell: thank you, mr. speaker. i thank the gentleman for yielding. you know, i could talk a lot of bad things about the taxes in this bill. i could say how much it will collect as it raises in revenue. i could talk about most of the income that will be taxed or most of the wealth has been taxed once. i say that some people in this country are allowed to leave the fruits of a lifetime of work to their children and some people are not allowed to leave the fruits of a lifetime of work to their children. i have two things i want to emphasize in this short time this morning. and one is that the one thing we need more than anything else in this country right now are jobs. and this bill will kill jobs. why? because when people are subject

to this tax they spend all their time and effort and money, and as a c.p.a. who worked on this one time, i've seen it upclose and personal, reducing the wealth so they can reduce tax. that does not create jobs. if taxes were eliminated, those people would continue to be employing that wealth in income producing efforts in the sorts of things that create jobs. but also this particular bill that's before us today is not indexed for inflation. now, let's see. what else other tax do we have that's not indexed for inflation? oh, yeah, the alternative minimum tax. which when that was passed this house was told, it's only going to take 139 taxpayers. don't you worry about it. it's just to get the very wealthy, just the really bad people. but now because it's not indexed for inflation, that tax now instead of 139 people hits 25 million people. and this death tax not indexed

for inflation will do exactly the same thing. particularly when the inflation that the obama administration is heading us towards comes together. this is a bad bill. defeat it. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman from florida. mr. diaz-balart: mr. speaker, i yield four minutes to my distinguished friend from texas, ways and means subcommittee ranking member, mr. brady. the speaker pro tempore: the gentleman is recognized four. -- for four minutes. mr. brady: thank you, mr. speaker. i'm proud to be part of the coalition against the death tax in congress. this taxes our family farms and small businesses in america. and can you imagine working your whole life risking your money, your time, working the weekends to either build your family farm or to start your small business only to find out when you die uncle sam swoops in and takes nearly half of all you spent a lifetime building up, takes half of what you'd hoped to give to your children and grandchildren?

that is the death tax in america. it is the wrong tax. it's the wrong people at exactly the wrong time. the only real solution to it is to fully permanently repeal it, to solve it once and for all, to give family farms, small businesses, women and minority owned businesses the piece of mind knowing they can hand down to their children a nest egg they've spent to build up. that's what republicans support. that is what we're going to vote for today, and it is time to bury the death tax once and for all. during the -- as they set the rules for this debate today, we naively think that congress is a debate of ideas, the best ideas win. unfortunately, the american public won't get to hear that debate or have that choice today because the democrat majority did not allow an

amendment, bipartisan amendment, a better idea on how we help our family farms and small businesses survive. this amendment was offered, bipartisan one, by congresswoman shelley berkley of nevada, myself, congressman devin nunes of california. it's an amendment supported by the groups that are most damaged by this death tax, small businesses, family farms, local printers and grossers, and others, and what it did was provide a $5 million exemption for the death tax. and 35% tax rate in perm assistance. and this is an amendment in a bill that has strong bipartisan support. it has 37 co-sponsors, and it has strong support from around the country. when people say today, this is the best we can do? no, it's not.

this is not the best we can do. given a choice, we have to do better for our family farms and small businesses. and there is no support from the overall bill, from small businesses, family farms, for our local retailers, none at all. so rather than place on the floor a bipartisan bill that have broad support, they chose to offer a partisan bill that has no support. it is time to solve this problem. it's time to bury the death tax once and for all. it's time to hear better ideas on this floor that can help create jobs in america, help generations go forward and reward the people who work the hardest, work the longest, work the smartest in hopes of handing that necessary egg down to their children. the death -- nest egg down to their children. the death tax is not only unfair, it's immoral and unamerican. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman from colorado reserves. the gentleman from florida.

mr. diaz-balart: mr. speaker, i yield 1 1/2 minutes to my dear friend from texas, mr. hensarling. the speaker pro tempore: the gentleman is recognized for 1 1/2 minutes. mr. hensarling: thank you, mr. speaker. unfortunately, we all know the sad news that under this administration and this congress our nation has the worst, worst unemployment rate in a generation. over 3.5 million of our fellow countrymen have lost their jobs since president obama has come into office. so what have our friends on the other side of the aisle tried to do? well, they have tried to spend their way into job creation with a $1.1 trillion government stimulus plan, a $410 billion omnibus spending plan, a threatened $1 trillion takeover of our health care system plan. well, that didn't get us any jobs. so they tried to borrow their way into prosperity. now, we have the first $1 trillion deficit in our

nation's history, a spending plan to triple, triple the national at the time in the next 10 years. so borrowing didn't work, spending didn't work. so here's the latest plan, mr. speaker. let's have a perpetual plan to tax people when they die. maybe that will create jobs in the economy. mr. speaker, it doesn't work. it doesn't work. as the gentleman from texas said, it is time to put the death tax to death. people have already paid. we will not start new businesses when you tax small businesses. it's time to get rid of the death tax once and for all. it's an unfair tax. it ought to be an illegal tax. the speaker pro tempore: the gentleman's time has expired. the gentleman from florida. mr. diaz-balart: well, i thank you, mr. speaker, for the courtesy and my friend, mr. polis, for his courtesy and all those who participated in this debate. and i think the essence of the contrast of ideas that's been shown today is that we on this side of the aisle believe that we should be focused like a

laser on job creation. and i think mr. hensarling said it very well. i mean, will this legislation create jobs? we don't think so. as a matter of fact, we're convinced that it will continue to take the country in the wrong direction with regard to employment. unemployment continues to rise, continues to rise, and the majority brings more regulation, more taxes and further stiffles small business at a time when we should be encouraging jobs. . mr. speaker, we believe as the overwhelming majority of american people do, that members should have the ability to read bills before they vote on them. it really shouldn't be an issue because that was promised by the distinguished speaker during the campaign when the majority was campaigning to take the majority. and even on her website you'll

read, members should have at least 24 hours to examine bills before floor consideration. but hasn't been the case. i remember when the rules committee at 3:00 in the morning we were handed a 900-page amendment to the so-called cap and trade energy legislation that we had to vote on simply hours afterward. and the american people were rightfully outraged about examples such as that. that's why there's legislation that's been filed by a bipartisan group that has 182 members that have signed right up there, right up there, right in front of you, mr. speaker, a discharge petition to have the legislation brought to the floor requiring at least 72 hours before legislation has to be voted on. by this house. when it's brought to the floor. so, that's why today i'm asking for a no vote on the previous question so we can consider that legislation, bipartisan legislation by congressman baird and culberson. it's not going to interrupt the

death tax debate. the estate tax bill because if the motion passes the motion i'm making provides for separate consideration of the baird-culberson bill within three days. so we can vote on the estate tax bill and then once we are done consider that legislation requiring the 72 hours. i ask unanimous consent to insert text of the amendment and extraneous materials prior to the vote and the previous question, mr. speaker. i yield back the balance of my time. the speaker pro tempore: without objection, so ordered. the gentleman yield back his time. the gentleman from colorado. mr. polis: thank you, mr. speaker. i want to begin by addressing some of the misconceptions and inaccuracies in the arguments that have been made on the other side of the aisle. first, i'd like to address some made by the gentleman from texas that this is a tax on those who have paid the highest tax rates throughout their lives. i'd like to dispute this notion. many of the people have

accumulated great wealth in this country have throughout their lives paid the capital gains tax rather than the income tax rate. i for one, and i'm the fourth or gift wealthiest member of this boddy, i have accumulated some degree of wealth in my success, in the internet sector, i have paid the capital gains tax. a 15% tax. not a 39.6 or 35% tax. in a moment we'll hear some quotes from messrs. buffet, gates, and soros, three wealthy americans, all supporters of the estate tax. they have accumulated their wealth by and have paid capital gains rate in the case of for instance, bill gates, the wealthiest american, he has paid a rate substantially below 15% due to his charitable contributions. the rate mr. gates has paid is probably somewhere in the 10% to 12% tax range. again i have paid less percentage tax than members of my staff here in congress that

earn $50,000, $60,000 a year. they pay a higher tax rate. it's inaccurate to say those hit with the estate tax pay the highest tax rate throughout their lives. there might be some, high-wage earners that have been paying the high income margins -- highest marginal income tax rate throughout their lives. but the majority of wealth is accumulated on the capital side and has been subject to the capital gains rate which had been 20%, more recently 15%. scheduled to return to 20%. regardless well below the highest marginal rate. i'd also like to address a remark made by my colleague from north carolina, dr. foxx, that she called this the biggest increase ever in the inheritance tax rate. again, this is a decrease, a decrease in the inheritance tax. yes, there is a one-year effect. for the year 2010 alone it's an increase, for every other year

it's a decrease. instead of 55% and a $1 million, every dollar above a million would be taxed at 55% if we don't pass this in the year 2011 and beyond, we are reducing that, this is a substantial decrease, one of the largest decreases in the inheritance tax rate to 45% from 55% in 2011 and beyond. we are increasing the deduction, we are starting at $3.5 million estate, that's a $7 million estate for a couple that passes away instead of a $1 million deduction to be clear. i further like to make it clear that repealing the estate tax and replacing it with a capital gains tax on the increase in basis would be a tax increase as proposed by my colleagues on the other side of the aisle. this would be a tax increase for the upper middle class families. and would actually result in many families losing their family businesses. if you have a $3 million family business, family farm under the democratic proposals they pay

zero tax. under the republican proposal, a $3 million family estate or farm with a very low basis, they started maybe with $100,000 in the 1950's, so that's a $3 million gain, that would be subject to $450,000 capital gains tax at 20%. it would be over $600,000 in taxes. that could result in the family losing a farm or losing a small business. under the democratic proposal we allow families to keep family farms and small businesses in the family. mr. speaker, this bill is one of many steps that congress must take towards an equitable tax code. the bill highlights democratic commitments to fairness by making permanent the current estate tax exemption of $3.5 million. $7 million total and a maximum tax rate of 45%. opponents of this bill may say the estate tax should be repealed. that's supporting debt finance tax cut of $1.3 trillion. yes, repealing the estate tax in

its entirety would result in an increase in the deficit of $1.3 trillion. that's $1 trillion in lost revenue and $277 billion in increased interest payments on our growing national debt. does that sound like fiscal responsibility? the only result of repealing the estate tax would be the .25%, a quarter of one% of the wealthiest american families will pay a small estate tax while other americans won't have to suffer from increased debt. mr. speaker, let's be honest with the american people. the estates of those 99.75% of americans will continue to be tax free. as for those .25% that are subject to their tax such as bill gates' estate, such as my own we understand that, quote the government that protects our business activities, the tradition that is enable us to rely on certain things happening, that's what creates capital and neighbors net worth to increase, end quotes.

mr. bill gates' words, not mine. but i strongly agree. in warren buffett's opposition to the repeal of the estate tax, he said the repeal of the estate tax would be akin to choosing the 20 2020 olympic teams by picking the eldest sons of the gold medal winners of the 2000 olympics, because, quote, without the estate tax you in effect would have an aristocracy of the wealthy, which means you pass down the ability to command the resources of the nation based on her red it rather -- heredity rather than merit. america is and should be a mare tock cracy. estate tax help prevent a permanent aristocracy of the wealthy from arising in this country. some opponents of the estate tax claim that it forces families to hand over half of their wealth to the government. but the facts simply don't support this claim. the truth is that few estates pay any estate tax whatsoever and those that do pay less than

20% of the value of their estate. we also know that the claims of pam pant liquidation of farms is untrue. the american farm bureau federation acknowledged through "the new york times" that it couldn't find a single example of a farm to substaniate the claim. even when the estate tax was higher, 55%, rather than the 45% it is today. i'd like to give a quote from the president of the national farmers union who says, family farmers and ranch remembers insulted by those who use farmers as the reason for eliminating estate taxes. aid he also like to give a coat from george soros. it's the least damaging of all our tationation because it does not interfere with wealth creation. it increases social equality. it's so obvious estate taxation is a valuable taxation and we should keep it. again on a re new neutral basis i would much rather pay $1,000 in tax after i die than before

when aim using that capital to create value and jobs. at least i was before i got to congress. mr. speaker, our choice here is clear. we can pass this bill which will remove the impact of the estate tax from 99ings 75% of americans and give -- 99.75% of americans and give those who will pay this tax a larger deductible. we can make sure that family businesses and family farmers won't be subject to onerous taxation. or we can increase the deficit by over $1 trillion and increase taxes for estates of $2 million, $3 million, $4 million with sizable capital gains within those estates. once again i thank chairman rangel, the members of the committee on ways and means and their staffs, as well as representative pomeroy for bringing this important legislation to the floor. in america, it's not a sin to be rich nor is it a crime to die rich. this bill gives our nation's wealthiest families the ability to know exactly what their

obligation to the nation that fostered their wealth will be. and it is fair and it is just. mr. speaker, i ask my colleagues to join me on the side of facts, equity, and the 99% of americans who will never pay this tax who wish that they were lucky enough to be successful enough to pay this tax and remind them that a no vote is a vote against these principles. i ask my colleagues to vote yes on the permanent estate tax relief for families, farmers, and small businesses act of 2009. i urge a yes vote on the previous question and i urge a yes vote on the rule. i yield back the balance of my time. i move the previous question on the resolution. the speaker pro tempore: the gentleman yields back the balance of his time. the question is on ordering the previous question on the resolution. so many as are in favor say aye. those opposed, no. the ayes have it. the gentleman from florida. mr. diaz-balart: we request the yeas and nays. the speaker pro tempore: the yeas and nays are requested. those favoring a vote by the yeas and nays will rise.

a sufficient number having arisen, the yeas and nays are ordered. members will record their votes by electronic device. pursuant to clause 8 and clause 9 of rule 20, this 15-minute vote on ordering the previous question will be followed by five-minute votes on adopting house resolution 941, if ordered, agreeing to the speaker's approval of the journal, if ordered, and supporting -- suspend the rules on house resolution 28. this is a 15-minute vote. [captioning made possible by the national captioning institute, inc., in cooperation with the united states house of representatives. any use of the closed-captioned coverage of the house proceedings for political or commercial purposes is expressly prohibited by the u.s. house of prohibited by the u.s. house of representatives.]

vote the yeas are 228. the nays are 187. the previous question is ordered. the question is on adoption of house resolution 941. so many as are in favor say aye. those opposed, no. in the opinion of the chair, the ayes have it. >> mr. speaker. the speaker pro tempore: the gentlelady from california. ms. matsui: i ask for a recorded vote. the speaker pro tempore: a recorded vote is requested. those favoring a recorded vote

will rise. a sufficient number having arisen, a recorded vote is ordered. members will record their votes by electronic device.

the speaker pro tempore: on this vote, the yeas are 223, the nays are 192. the resolution is adopted. without objection, the motion to reconsider is laid on the table. pursuant to clause 8 of rule 20, the unfinished business is on agreeing to the speaker's approval of the journal which the chair will put de novo. the question is on agreeing to the speaker's approval of the journal. those in favor say aye. those opposed, no. the ayes have it. >> mr. speaker, on that i ask for a recorded vote. the speaker pro tempore: a recorded vote is requested. those favoring a recorded vote will rise. a sufficient number having risen, a recorded vote is áf h háf

the speaker pro tempore: on this vote, the yeas are 250, the nays are 169. present, one. the journal stands approved. the unfinished business is the vote on the motion of the gentleman from texas -- the gentlelady from texas, ms. jackson lee to suspend the

rules and agree to h.res. 28 as amended, on which the yeas and nays were ordered. the clerk will report the title of the resolution. the clerk: house calendar number 135, house resolution 28. resolution expressing the sense of the house of representatives that the transportation security administration should in accordance with congressional mandate provided for and recognition of the 9/11 commission act of 2007, attend security to our nation's rail and mass transit lines. the speaker pro tempore: the question is will the house suspend the rules and agree to the resolution as amended. members will record their votes

the speaker pro tempore: nays are three. 2/3 of those voting having responded in the affirmative, the rules are suspended, the resolution is agreed to and without objection the motion to reconsider is laid upon the table. without objection, the title is amended. for what purpose does the gentleman from missouri rise? >> mr. speaker, i ask unanimous consent to my name be removed as a co-sponsor of h.r. 1880. the speaker pro tempore: without objection, so ordered.

the house will come to order. once conversations are removed from the floor we will proceed. the house will come to order. if you will kindly remove your conversations from the floor, take them to the cloakroom it would be appreciated. for what purpose does the gentleman from new york rise?

mr. rangel: mr. speaker, i rise to call up h.r. 4154, the permanent estate tax relief for families, farmers, and small businesses act of 2009. and ask for its immediate consideration. the speaker pro tempore: the clerk will report the title of the bill. the clerk: h.r. 4154, a bill to amend the internal revenue code of 1986 to repeal the new carryover basis rule in order to prevent tax increases and imposition of clines versions on many more estates than would benefit from repeal to retain the estate tax with a $3,500,000 exemption, and for other purposes. mr. rangel: i ask -- the speaker pro tempore: pursuant to house resolution 941, the bill is considered as read. the gentleman from new york, mr. rangel -- mr. rangel: i ask that all members may have five legislative days to revise and extend their remarks and insert extraneous material in the record. the speaker pro tempore: without objection, so ordered. mr. rangel: in addition, i along with ways and means ranking

member david camp, have asked the nonpartisan joint committee on taxation to make available to the public a technical explanation of the bill. the technical explanation expresses the committee's understanding and the legislative intent behind this important legislation. it is available on the joint committee's website at www.jct. gov. and it's listed under document number jcx-709. the speaker pro tempore: will the gentleman suspend for a minute. the gentleman will continue. mr. rangel: i'm ask unanimous consent at this point in time i

rise in support of h.r. 4154, a bill that will provide permanent responsible estate tax relief to taxpayers. the speaker pro tempore: without objection, so ordered. the gentleman is recognized. mr. rangel: this is a rough time for us in this great country in terms of joblessness, hopelessness, and the congress has to work together as one unit with the president in order to restore the confidence among the millions of people that today find themselves without jobs. in order to do this, we have to work at everything that we can to make certain that those that are in the position to create jobs that we give them the tools to work with so that we can get people off the unemployment lines and back into business. members of congress hear every day from their constituents how difficult it is to keep up with the current state of our tax

laws as a result of the temporary nature of so many provisions in the internal revenue code. so not only is there an argument in terms of what the rate should be in terms of estate tax relief, but there's an argument for god's sake do something. and that is why the ways and means committee has agreed that we have to give a stable program, tax program that our businesspeople can rely on and plan on so that we can bring stability to industry and get our people back to work. the majority of the provisions included in 2001 and 2003 were made temporary because there was an intent that we review the estate tax. and members are familiar with the extending of expiring tax provision ultimately reducing them and we are here to make certain that the doubts as to where we are going to go will be

eliminated. so this week we have some certainty in our tax code as we enact a permanent extension of the 2009 estate tax exemption and certainly people would see that it wasn't an easy decision to find that was compatible with most of the people in this house , but the work of earl pomeroy that he's done over the years and the suggestions that he's made, the people that he's talked with allow us to say that we have made the best possible arrangements so that people would know what they should expect as relates to estate tax. so i ask permission, mr. speaker, that the remainder of my time be transferred to earl pomeroy for him to be able to appoint members as he sees fit. the speaker pro tempore: without objection without objection, so

ordered. the gentleman from michigan. mr. camp: i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. camp: mr. speaker, death in and of itself should not be a taxable event. death should not force the sale of family farms or the dissolution of small businesses. the fear of death should not be a reason for an american to hire a battery of accountants and lawyers to find legal ways to reduce the bite of the estate tax. and after a long wait, we are about to realize that goal. set in motion by a law passed by the republican congress earlier this decade, there will be no death tax in 2010. that's just 29 days away. the bill before us, however, would resurrect the death tax next month and apply a 45% tax rate to estates above a $3.5 million exemption amount. the majority claims to be offering certainty to taxpayers and i suppose in a way they are. they are certainly repealing the hope of ever eliminating the

death tax. there are replacing that with the certainty of a federal tax rate that at 45% must be considered confiscatory. no american should have the federal government take nearly half of their net worth. they are providing the certainty of an exemption that's not indexed for inflation meaning that over time it is certain thatter more and more family farms and small businesses will be subject to this punishing tax. just take a look at the a.m.t. mr. chairman, one other thing that -- mr. speaker, one other thing that is certain about this bill is that it is unlikely to be approved before the end of the year. as we are all aware, the senate's fully engaged in the health care debate, it is unlikely to break from that to consider this bill this month, particularly since a clear majority of the senate has indicated its support for a far more equitable and bipartisan death tax relief measure. we all understand that the current situation would benefit from a permanent solution. but this is not the right one and i urge its defeat.

i reserve the balance of my time. and i ask unanimous consent that the remainder of my time be controlled by the gentleman from texas, mr. brady. the speaker pro tempore: without objection, so ordered. the gentleman from north dakota. mr. pomeroy: mr. chairman, i yield myself three minutes and i will approach the well. the speaker pro tempore: the gentleman is recognized for three minutes. mr. pomeroy: mr. chairman, i want to thank the speaker, leader hoyer, chairman rangel for bringing this bill to the floor today. the purpose of this bill is very straightforward. establish clarity and certainty in the tax road for the estate tax while exempting 99.7% of the estates in this country from this estate tax altogether. the estate tax has changed 10

times in the last 11 years. now, this has been a bonanza for the attorneys, the accountants, the planners, but it has been very unfortunate for the american people trying to make reasonable plans for their estates. the next two years become completely absurd when it comes to the estate tax thanks to a law passed by congress in 2001. estate tax repeal in 2010. replaced with a new capital gains tax that will impact many more farmers. in fact, for the 6,000 estates estimated to benefit from the tax change next year, 71,000 will find themselves with new tax obligations, this capital gains tax. additionally, come 2011 the repeal goes away.

in this tax code they repeal the repeal. and we are back at $1 million level for estates, $2 million joint. 55% rate. the very rates it was in 2001. there's going to be a lot of talk on the other side about how this law should go forward for the benefit of family farms. let me tell you, the capital gains tax they are proposing for family farms is a catastrophe. let's say grandma buys a farm, $100 an acre, it's now worth $2,000 an acre. deeds it to you. she passes. you acquire the property. you go to sell the farm. they are going to pay capital gains tax under present law at all appreciated value over the $100 an acre initial acquisition price. that's because of the present law -- under present law

carryover basis is substituted forer what we have under the existing framework, statutory basis. here's what the farm bureau said about carryover basis when it was considered some time ago in 1979. carryover basis fossers an insidious bias against farmers and ranchers and that's precisely what they would create. look at this. no estates with capital gains tax burden on 71,000 suddenly with capital gains burden. under the law if we allow it to go into effect next year. another byproduct of this bill is to establish certainty once and for all what the estate tax level is. the 2009 level represents a 75% -- i yield myself an additional 30 seconds. the 2009 law represents an exclusion from estate tax and a

75% higher than last year alone where it went from two million up to 3.5 million. this chart shows who pays the tax and who doesn't under the 2009 law. you may not be able to see this little sliver, it's because it represents .25 of one percent. the estate tax goes away for 99.25%. that is almost perfection, about as close as this body's ever going to get. that's why we should move this forward. i reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance of his time. the gentleman from texas. >> i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. >> can you imagine i rise in opposition to this bill, but can you imagine working your whole life to keep your family farm or build up a small business and then when you die uncle sam swoops in and takes up as much as half of all you spent a lifetime working for. that's what the death tax does. it is wrong. it is immoral. and in many ways un-american. this was brought home to me

early in my first term in congress. hi a family nursery in texas, three nurseries, the parents had created it and built it up, two to three kids were working in it and they sat down with pen and paper and they showed me the value of their nursery. talked about the death tax. and worked it through and bottom line was that if they could take out enough insurance on their parents' deaths and because they are out of debt f. they could go back to the bank and borrow enough money, they might be able to pay their death tax bill. think of what they are saying. if we can make enough money off our parents' death and we can borrow enough money, the government might let us keep our family business. the government might let us keep our family business. that's why the death tax is wrong and that's why it is in many cases if not all simply un-american. today we have a bill that is the

result of hard work by my friend from north dakota, mr. pomeroy. but i object because i believe we can do better. some say that this -- tend of the day if this bill passes it will only impact a few estates, but the truth is when it passes, still the number one reason family farmers and small businesses will not be passed down to the next generation is the death tax. and the number one reason the fastest growing number of entrepreneurs, women and minority-owned businesses, will not be passed down to the next generation. this is the first generation of wealth building. it will be the same death tax. while it is fun to hear them talk about bill gates and donald trump and george sorros, the people most hurt by this tax are bill the farmer, donna the florist, or george the funeral

director. real people building wealth in our communities who oppose this death tax. these are not the aristocracies that are being referred to in this debate. . this does create a permanently high tax rate and permanently destructive tax rate. 45% is too high. because like the a.m.t. it's not indexed for inflation, it is certain to ensnare more and more family farms and small businesses in future generations. we've seen this play before. alternative minimum tax was created to tackle and address only 100-plus of the wealthy americans -- wealthiest americans in the united states. but because it wasn't indexed to inflation, today it would impact 24 million middle class americans. we are going to see that same

creep, those same small businesses and middle americans -- middle american families affected by this death tax in future generations. we are told, and i think sincerely, that this is the best we can do as a congress. i don't believe it is. i so much appreciate mr. pomeroy's efforts. i know a lot of groups that make up the death tax coalitions that are working to eliminate the death tax or find a reasonable compromise they appreciate what he's doing as well. but we have to do better chsm is why -- and don't take my word for it. if you listen to the groups most intimately damaged by the death tax from our farm bureau to our national federation of independent businesses, from grocers and funeral director, local newspapers and other groups, they have not given support to this bill because it still leaves the third highest

death tax rate in the developed world. and it damages them too greatly. my thought is that rather than place on the floor as democrats did, unfortunately, a partisan bill that is supported by none of the groups most affected, that we ought to have offered a bill by congresswoman shelley berkley and congressman archer davis and others that has the strong support that has bipartisan support on the bill. unfortunately, it was not allowed as an amendment montana the bill and would be ruled out of order as a motion to recommit, we don't have an opportunity to come together as a congress on this issue. at this point, i retain the rest of my time. the speaker pro tempore: the gentleman reserves. the gentleman from north dakota.

mr. pomeroy: i would just observe that the tax policy center estimates that 100 farms and small businesses estimated to be impacted by the farms at the 2009 levels across the entire country and c.r.s. estimated that one half of one percent of those may have to liquidate something. i yield to mr. pascrell. the speaker pro tempore: the gentleman is recognized for two minutes. mr. pascrell: i stand before you to support 4151. some of my colleagues on the other side of the aisle want you to believe, and we've heard this before, that everybody is going to pay an estate tax. if you listen to the rhetoric, i'm glad we're looking at the world, i'm glad we're looking at the world and we'll find out on the health issue, we're now 40th in terms of infant mortality but let's look at the world.

you are incorrect and it's unfair when you claim this is a tax for all americans, it is in the. all family businesses, it is not. in fact, it is a american to act on share responsibility. the citizens for tax justice just recently made this very clear, december 2. it follows that it is reasonable to tax the transfer of enormous estates, most of which consistent of income that was never taxed. that's what it's taxing, the folks with estates that have never been taxed, you want to throw a shield over them to protect them.

you want to protect the generation of super rich families to send it on to other groups. the republicans have used the term death tax, they are flat out wrong. the estate tax affects only estates of significant size. presently, right now, over 3.5 million of individuals and seven million -- over $3.5 million for individuals and $7 million for couples. right now, the estate tax is the most progressive tax in our system. what you're suggesting is regressive. only the top .02%. mr. pomeroy: i yield the gentleman 30 seconds. the speaker pro tempore: the gentleman is recognized. mr. pascrell: if we do nothing,

it will -- only the top 7,000 estates in our country were subject to estate taxes. i don't know any working class american families that own estates worth over $7 million. it is insidious to infer anything different. thank you, mr. speaker. the speaker pro tempore: the gentleman yields back. >> i would point out that more and more americans will be ensnared in this death tax, it's not index. we would not be here today if president clinton had not vetoed the death tax repeal in 1999. i would further point out that polls consistently show that 70% of americans -- yielding myself an additional 15 seconds, poll after poll show 70% of meshes support the complete and full repeal of the death tax because it is un-american for this country to swoop in and take up nearly half of what you've spent a

lifetime building up and wanting to hand down to your children and grandchildren. with that, i yield three minutes to my distinguished colleague from california who has worked on this issue as a senior member of the ways and means, mr. herger of california. the speaker pro tempore: the gentleman is recognized for three minutes. mr. herger: i thank my friend and gentleman from texas for all the work you've done on this incredibly cruel tax. mr. speaker, far too many families have faced the grim prospect of selling the family farm or business in order to pay the taxes that are due when a loved one dies. my own cousins had to sell their farm that had been in our family since the early 1900's, just to pay the death tax. mr. speaker, this is simply wrong. although it's encouraging that congress is attempting to provide a long-term certainty about death tax rates, the bill before us falls far short of a

stable solution for agriculture and small business. the proposed exemption is simply not enough to protect family farmers, especially with the high cost of land in california and other heavily populated states. worse yet, h.r. 4154 fails to index the exemption amount for inflation, thus guaranteing a repeat of the alternative minimum tax disaster with more -- with more and more families facing the death tax in future years. that's why leading pro-agriculture groups like the california farm bill and national cattlemen's association do not support this bill. mr. speaker, this house has voted five times since 2001 to repeal the death tax entirely.

in fact, no fewer than 65 members of the current democrat majority have voted to fully repeal the death tax. it's time to end this unfair and cruel death tax once and for all. the speaker pro tempore: the gentleman yields back his time. the gentleman from north dakota. mr. pomeroy: the estate tax level last year was $2 million this year, $3.5 million. a 75% increase in the exclusion. that's quite a number by anybody's measure. i'm pleased to yield two minutes to my friend and colleague from the ways and means committee, mr. neal of massachusetts. the speaker pro tempore: the gentleman is recognized. mr. neal: i believe this issue should be taken up in the context of tax reform which the ways and means committee of the

house should revisit next year. but it is what it is. the most important reminder here today for all of us is this -- this is not the house of lords. this is not about peerage. this is not about in america being born to any class or any race that offers superiority. this is not permanent wealth. this is not the argument that because of your last name, that you ought to be entitled to a special privilege in what is the most egalitarian society that the world has known. but the truth is that the extension that we're offering today takes us on the path to reform. and that's where i hope we end up. we need the certainty as to estate tax rules comian 1. -- come january 1. if we let the current rules

expire there will be a step up in basis, this pits the super rich against the moderately rich, which is who we're trying to help here. i want to quote warren buffett, he was cleverly left out by the other side as they ascribe responsibility for the repeal of the estate tax. warren buffett has said, quote, die that'sic wealth is the enemy of meritocracy and it's on the rise. equality of opportunity is on decline. a progressive and meaningful estate tax is needed to curb the movement of democracy toward pluing to becy. this body is an example of merit ockcy. could i have 30 more seconds?

mr. pomeroy: i yield the gentleman 30 seconds. mr. neal: this is not the way i would have done this but i think mr. pomeroy has made a valiant effort to find middle ground as we go to next year. this makes permanent rules that include a 45% rate and a $3.5 million exemption for individuals and $7 million for couples. it achieves a middle ground and 4e7s allow for tax planning certainty. the speaker pro tempore: the gentleman yields back his time. the gentleman from texas. mr. brady: i yield two minutes to the elite republican on the small business committee, mr. graves of missouri. the speaker pro tempore: the gentleman is recognized for two minutes. mr. graves: while i appreciate the efforts of my colleague from north dakota this bill is not the answer. bottom line is that death should not be a taxable event. i find it amazing that the people who will get hurt the most, small businessmen and farmers, are being referred to as the rich and the moderately rich.

which couldn't farther from the case. small businesses and family farmers have felt slighted in washington over the past two years. congress has bailed out irresponsible players on wall street, pushed policies to increase costs on small businesses and taxed them at every turn to pay for the big business agenda. today we have another bill on the floor that ignores the small guy. h.r. 4154 is not indexed for inflation, so small businesses will be forced to pay the death tax in future years. more small businesses will be forced to pay that tax. additionally, the bill does not take into account capital intensive small firms whose holdings will force them to be subject to this cacks. if congress is serious about helping in this economic downturn, we would be debating repealing the death tax. i yield back the balance of my time. the speaker pro tempore: the gentleman from north dakota. mr. pomeroy: the bill on the

floor would establish the capital gains exclusion at $7 million for a couple, i don't think we've ignored the small guys one bit with this legislation. i yield mr. blumenauer of oregon two minutes. the speaker pro tempore: the gentleman is recognized for two minutes. mr. blumenauer: i appreciate the gentleman's courtesy and his leadership on this issue. this is the cullmy nation of a 12-year example of how not to create tax policy. i listened with interest to my good friend from texas say, you know, they can do better than this bill. well, you know, ladies and gentlemen, they had 12 years to do better. and what did the republicans do? they didn't reform the inheritance tax. what they did is established a 10-year gain where it was reduced a little bit each year until next year it disappears and then they give it back to

the american people at a $1 million level and 55% marginal rate. that's the best they could do. . as my good friend from north dakota pointed out, it's even worse than that because they would have 70,000, not 7,000, the ton .2%, but 70,000 people who are the real small business, the entrepreneurs, be subject to a capital gains tax. and i will tell you that the tax itself is only the tip of the iceberg because it will be an accounting nightmare to go back and figure out what grandma paid, what uncle charlie paid for the asset. some people will spend more time researching accountants than they would pay in the tax. that's the best that the

republicans could do. what mr. pomeroy and our committee have done is to take generous levels, $3.5 million per person and exempt below that the administrative nightmare of the capital gains tax. is it the perfect solution? no. additional. the speaker pro tempore: the gentleman is recognized an additional 30 seconds. mr. blumenauer: but compared to the best that the republicans could do for 12 years, it's night and day. with all due respect declaring one of of my hero, teddy roosevelt, who brought about the inheritance tax as being un-american is an insult to the republican party. who knows that the vast wealth in this country, you don't get to be a billionaire on a w-2. so a lot of this money was never even taxed once.

let's get a grip. let's pass this bill and move on. the speaker pro tempore: the gentleman's time has expired. mr. brady: i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. brady: i know washington takes great delight in reading from comments from the very wealthy who by the way usually find loopholes, accountants, and have whole planning teams to make sure they don't pay these taxes. but i like to listen to those who are actually struggling with this death tax, our small businesses, our family farms, our local manufacturers who got a lot of challenges. i have a letter from the national federation of independent business which has weighed in almost every key issue dealing with the impact on small businesses and independent businesses. like me, they do appreciate the work that mr. pomeroy's done on this issue, but quote interesting their letter, while well-intentioned, h.r. 4154 is

an incomplete solution. the $3.5 million exemption per person and 45% rate do not provide adequate protection for many small businesses. in addition, the $3.5 million exemption is not indexed for inflation, meaning that protection from the estate tax will erode each year. our manufacturing groups, for example national association of manufacturers, in a letter they wrote again yesterday say, the national association of manufacturers, the nation's largest industrial trade association, representing small and large manufacturers in every industrial sector, in all 50 states, urge you to oppose h.r. 4154, the bill we have before us today. while they appreciate the efforts to provide certainty by making the estate tax rates permanent, we do not view a 45% rate or an exemption that's not indexed to inflation as efforts

that will achieve significant reform. and finally, the american farm bureau federation, again family farmers all throughout this country involved, again, in trying to help them keep those family farms, pass them down to the next generation. quote, the current estate tax exemption is $3.5 million per person, top tax rate is 45% under this bill. this exemption level is inadequate to protect our nation's farms and ranches estate taxes and causing financial burdens of complicated and expensive estate tax planning. it is clear while we may claim on this floor that this is a bill great for family farms and great for small businesses, and only taxing the wealthy, our family farms, our small business, our local manufacturing companies say it does not. and with the unanimous consent i'd ask to have these documents

submitted for the record. the speaker pro tempore: without objection, so ordered. mr. brady: i reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance of his time. the gentleman from north dakota. mr. pomeroy: mr. chairman, i referenced the earlier know tation from the farm bureau that carryover basis established in this capital gains exposure falls particularly hard on family farmers and ranchers. with that i yield my friend and colleague, shelly berkley, from las vegas, two minutes. the speaker pro tempore: the gentlelady is recognized for two minutes. ms. berkley: i thank you, mr. speaker. i thank the gentleman from north dakota for yielding. the bill we are considering this afternoon is not my chosen option. while i will vote for this bill, i don't think it goes far enough, nor is it a truly permanent solution. yesterday at the rules committee i offered an amendment that would have raised the estate tax exemption and reduced the rate, creating a sensible, stable, and most importantly a permanent framework to help families and businesses effectively plan for

the burden of the estate tax. this is favored by a wide coalition of business and farm groups and unlike the bill on the floor today, it is indexed for inflation. this is important because without indexing the estate tax will, like the alternate -- alternative minimum tax, grow over time, eventually affecting many middle class americans. philosophically i don't think there should be be an estate tax. there are few things in this world that you can do to avoid paying taxes. i think dying should be be one of those things. i introduced bipartisan legislation to aliveate the burden the estate tax creates for farms, businesses, and individuals. the legislation would have responsibly saved up the exemption to $5 million, $10 million for couples, and lowered the rate to 35% over the next 10 years to reduce the burden on those estates that still have an estate tax liability.

given the current economic situation, even one job loss to the estate tax is too much. we need to encourage stability in every way possible. while the bill before us in my opinion is not a permanent solution, it is far better than a short-term patch. it assures stability in the tax code and allows for estate planning. i believe it will free up resources currently used to plan for the estate tax. i will vote for this bill and i urge my colleagues to join me and do likewise. i yield back the balance of my time. the speaker pro tempore: the gentlelady yields back her time. the gentleman from texas. mr. brady: yield myself 15 seconds. i'd like to ask unanimous consent to submit for the record a list of 49 organizations from family farmers to small businesses to local funeral stores in support of congresswoman berkley's bill and amendment. the speaker pro tempore: without objection, so ordered. mr. brady: at this time, i'd like to yield two minutes to one of the outstanding members of the ways and means committee, the gentleman from illinois, mr. roskam. the speaker pro tempore: the

gentleman is recognized for two minutes. mr. roskam: i thank the gentleman for yielding. i think the gentlelady made an excellent point highlighting the weakness of this bill. the gentlelady from nevada pointed out this is not indexed by inflation. let's make no mistake. a cay, of -- a characterization of something else kicking the can down the lane, this bill kicks the can down the lane. it's not indexed by -- for inflation at the very least we are going to be knocking up against the alternative minimum tax problem that has so plagued this congress over the past couple years. i heard, mr. speaker, a couple minutes ago one of the other folks on the other side of the aisle who sort of characterizing things as folks weren't paying taxes. i want to put that into a context. here's a little bit of a lift. if you are running around the united states of america and doing any kind of economic activity, these are the taxes you are going to run into. are you going to be paying capital gains. you are going to be paying federal income taxes or unemployment taxes or motor fuel taxes or gift tax, medicare taxes, payroll taxes, property

tax, real estate transfer taxes, telecommunications taxes, sales taxes, self-employment tax, social security taxes, state income taxes, tolls, bridges, you name it you are going to be loaded up taxes. here is an opportunity for us to say, you know what, let's have some -- a clear, good shot as representative camp said a couple minutes ago, death should not be a taxable event. let's not act as if this accumulation over a period of years has not been taxed along the way. so i think the national association of manufacturers accurately pointed out that it's not the tax burden alone that's the problem here. it's not simply the fact that it's not indexed by inflation. but the cumulative effect is in fact a problem because according to the n.a.m., $94,000 a year is spent on tax preparation and estate planning. i say let's lift the tax burden.

let's recognize the cumulative nature of taxes that people are paying. and let's not with a straight face try to say people aren't paying taxes and vote against this bill. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman from north dakota. mr. pomeroy: i yield my friend and ways and means colleague from north carolina, mr. etheridge. two minutes. the speaker pro tempore: the gentleman is recognized for two minutes. mr. etheridge: mr. speaker, permission to revise and extend my remarks. the speaker pro tempore: without objection, so ordered. mr. etheridge: i thank you. i thank the gentleman from -- i thank the gentleman for yielding. since i have been in this congress i worked to extend the benefits of estate planning and raise the exemptions for the last 12 years. the estate tax was never meant to affect the vast majority of americans. under h.r. 4154, only 25 of every 10,000 estates would be subject to estate tax. by extending current law this bill strikes a balance. it provides certainty for estate planning and prevents tens of thousands of estates from being

subject to taxation while also being physically responsible. critically this bill protects our small businesses and farmers. in my district in north carolina there are plenty of farmers that are land rich and cash poor. they may be affected by the reach of the estate tax because the land and equipment are worth quite a bit. but their business may not be barely getting by. many small businesses form the backbone of our economy. the engine of job creation. and they face the same dilemma. rather than worrying about the estate tax, these businesses need to focus on the growth and expansion that can improve our economy and this legislation will allow them to do just that. only 100 small businesses and farming states would owe any estate tax in 2010 under these rules, according to the numbers i get. now, as a former small business owner, i also know that that

provides certainty for -- that is crucial for business planning. this is equally true for individuals who need to plan for the future of themselves, their children, and their grandchildren. we should encourage the dreams of americans who want to build wealth that they can leave to their children and grandchildren, but also it needs to be fair. america is a land of equality and opportunity and by making sure that 99.8% of estates are exempt from estate tax while encouraging the fewer than 8,000 -- this bill provides and preserves -- the speaker pro tempore: the gentleman is recognized. mr. etheridge: opportunity for all. i yield back and encourage my colleagues to vote for it. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman from texas. mr. brady: i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. brady: the two questions we ought to ask ourselves when we consider bills besides the principle underneath it which is

should family farms, small businesses who work their whole life build up a nest egg and have uncle sam swoop in and take nearly half of it themselves is this supported by the people who say -- who you say it will help? and will this bill or can this bill become law? as to the first case, it is not supported by the organizations that have worked the longest and hardest on the death tax. and we have, again, 49 organizations who support a bipartisan compromise who unfortunately cannot support this bill. small businesses, family farms, local newspapers, local marketing groups, equipment manufacturers, local builders and auto dealers. we have local convenience stores and beer wholesalers. the people who make up the fabric of our local economies believe this bill will not help them. and will not help them enough. the other thought is, will this