Nancy L. Johnson: “Mr. Chairman, the quote that I am given by my constituents back home is that, ``The Federal Government is too big and…”

“Mr. Chairman, the quote that I am given by my constituents back home is that, ``The Federal Government is too big and spends too much.'' I do not hear, when I go back home, ``I pay too little in taxes.'' Every Republican and many Democrats who were here 2 years ago voted against the Clinton tax increase. If 2 years ago you were against the tax increase, why would you not be now for giving back to the people about two-thirds of that tax increase? Instead of trying to create class warfare in America, let us talk about what is or is not sound tax policy. For example, the House recently passed a historic welfare reform bill. Those who oppose welfare reform rightly asked the question: ``Where will the jobs come from for people who lose their welfare benefits?'' Well, this bill begins to address that question. There are a number provisions in this tax reduction bill which will encourage productive investment and creation of private sector jobs. Chief among them is the reduction in the capital gains tax rate. By reducing the tax on capital gains, we reduce the cost of capital; by reducing the cost of capital, we encourage investment, which increases productivity, which allows economic growth without inflation and which, most importantly for Americans who want to work, creates jobs.”