Opening Statement of the Hon. Philip M. Crane,
a Representative in Congress from the State of Illinois
Hearing on the President's Fiscal Year 2003 Budget
February 5, 2002
Mr. Chairman, I want to thank you for holding this very important hearing on the President’s budget proposal. I also want to thank Secretary O’Neill for appearing on behalf of the Bush Administration today.
Today we stand at a historic intersection in the future of our great nation. The events of September 11th have reshaped our priorities. Our Nation is at war. We must focus on winning the war on terrorism abroad and protecting our citizens at home. At the same time we must continue the policies begun by the Bush Administration to make sure our economy is on sound footing and to create jobs. I am pleased that President Bush’s budget strikes a balance in achieving both of these goals. And while I would like to see more in the way of tax relief for hard-working Americans, the tax relief provided in this budget is a great start.
The President has put forward a budget that includes several items I have championed for nearly a decade. In particular, I have championed legislation to allow nonitemizers to deduct their charitable contributions and to permit tax-free withdrawals from IRAs for charitable contributions and I am glad to see President Bush included similar provisions in his budget. The President has called for greater involvement by citizens in charitable endeavors. While we should all strive to give time and money to such efforts, anything we can do through tax relief to help Americans move money to charitable organizations is a step in the right direction.
Likewise, I have long supported the idea that Americans, who are beneficiaries of an employer-sponsored flexible spending arrangement, be able to rollover their unused funds for future health care needs. Over time, this will reduce the pressures on employers by allowing individuals to accumulate funds for future health care needs. I’ve also noted that the President has proposed permanently extending Archer Medical Savings Accounts. While other reforms are needed in the program to encourage all insurers to offer the product, removing the time limitation on Archer MSAs is a positive step. I am hopeful that removing the uncertainty of the previous law, that limited Archer MSAs to five years and thus, discouraged insurers from getting into the market, will now pass and millions of Americans will look at this as a viable option for obtaining health insurance.
In that vein, I believe that we must also allow individuals to deduct all of their medical expenses not covered by private insurance or a government program. Prior to 1986, there was no limitation on such deductions. However, the ’86 tax bill created a scheme whereby only expenses that exceed 7.5% of adjusted gross income are deductible. I plan to introduce legislation that will zero out the AGI limitation, and help millions of Americans who get no tax benefit for their out-of-pocket health care costs.
I was also happy to see that the President’s budget will help more children get a quality education by improving on the No Child Left Behind Act. It does so by providing for a refundable credit of 50 percent of the first $5,000 of qualifying education expenses for parents who move their kids to schools where they can get a better education. While my enthusiasm is tempered slightly by the fact that the definition of “qualifying student” is restricted to one who is enrolled in a failing school, this provision takes a substantial step towards giving parents the ability to decide where their children will be best educated, a goal which I wholeheartedly support.
In short, this is a good, sound budget. It provides for our priorities of winning the war on terrorism, Homeland defense and stimulating the economy and creating jobs. I commend President Bush, Secretary O’Neill and the entire Administration for their efforts and look forward to working with them in the coming months to get this budget signed into law.