THE OSE REPORT

California’s 3^rd Congressional District

AN ELECTRONIC NEWSLETTER FROM CONGRESSMAN DOUG OSE

E-mail: doug.ose@mail.house.gov                                  Web Site: http://www.house.gov/ose

Please feel free to forward this newsletter to friends and colleagues.

1) CONGRESSMAN SEEKS INTERN APPLICATIONS

Once again, students from the Third Congressional District will have an opportunity to intern in Congressman Doug Ose’s Washington or Woodland office this year. The internship is geared towards allowing interns to actively participate in daily office operations. The program also gives flexibility for the students to explore the Washington D.C. area and attend other congressional events. Interns serving in the Washington office are eligible for a stipend. "All in all, interning in Congressman Ose’s office for the summer was hectic, but well worth it," said Amber Orr from Antelope. "I gained life experience that I had not even expected. I was able to see politics in a way I never have, and I met so many people that I became very close friends with."

For further information or an application form, please contact Jody Garner in the Washington Office at 202-225-5716 or Sarah Nelson in the Woodland Office at 530-669-3540.

2) RECAP OF HEALTH CONFERENCE

On August 28^th, Congressman Ose chaired a health care conference at the Sacramento Hyatt Regency in conjunction with the Public Institute Forum. The interactive conference addressed topics such as the number of Americans without health insurance, Medicare reform and senior’s health, and the difficulties in providing health care in urban and rural communities. Panelists and audience members shared their thoughts on these topics and voted on survey questions related to the topics.

Dr. Tom Nesbit from the University of California Davis campus demonstrated new technology that links doctors to patients and rural hospitals to urban hospitals over computer systems. House Health Subcommittee Chairman Bill Thomas delivered a keynote address concerning the Congressional outlook on the future of the health care industry and possible reforms and refinements in current law. The forum was moderated by Emmy award winning newsman Jack Kavanagh.

To view the results of the health care conference survey polls, please visit the public forum institute’s web site: http://www.americansdiscusshealth.com/ and click on Doug Ose.

3) REPUBLICAN LEADERSHIP PROPOSED "THE 90 PERCENT SOLUTION"

Since the President has vetoed our bipartisan attempts to end the marriage penalty and death tax, and Republicans are unwilling to give the President an excessive amount of new Washington spending this year. The Republican Leadership has asked the President to accept the following challenge:

• Dedicate 90 percent of next year’s surplus – 90 cents on the dollar – to paying off debt in a way that protects the Social Security Trust Fund and Medicare surpluses. This would still leave enough money to boost our commitment to education, provide prescription drug coverage to seniors in need starting right now, and provide modest tax relief like expanding IRA and 401(k)s and eliminating the telephone tax begun to fund the Spanish-American War.

Email your thoughts to doug.ose@mail.house.gov

4) OSE VOTES AGAIN TO ELIMINATE "UNFAIR" MARRIAGE PENALTY

Wednesday, Congressman Doug Ose joined a bipartisan coalition of 270 House members to provide tax relief to 25 million American married couples, but the House was unable to override President Clinton’s veto of the Marriage Penalty Tax Elimination Act. "More than 55,000 couples in my congressional district are paying higher taxes simply because they are married. That's just not fair," Ose said. "Despite the outcome of today's vote, this issue will not go away. I hope we will continue to bring this matter up until we get it passed and signed." House members voted 270-158 to override Clinton’s veto, with 220 Republicans joining 49 Democrats and one independent in support. Unfortunately, a two-thirds majority (286 votes) was needed to approve the override. The House originally approved the legislation earlier this summer, but Clinton vetoed the bill in August. "The President first said that death should be a taxable event, and now he is saying that marriage should be too," Ose said. "Thanks to the Clinton veto of the marriage tax penalty repeal, more than 25 million couples all over America will pay an extra $1,400 a year for as long as they both live. That’s $1,400 that can be used on school supplies, a new computer, tuition payment, or start a retirement savings program. We had a chance to simplify the tax code and reduce tax rates, but the president refused to agree. Given his comments in January at the State of the Union address, I don’t know what to believe anymore." The standard deduction for married couples is less than twice that of singles. The Marriage Penalty Tax Elimination Reconciliation Act would have expanded the 15 percent tax bracket for married couples who file jointly to twice that of single taxpayers beginning in 2003. This is to ensure that both families who itemize their deductions, as well as those who do not, will benefit from the tax relief. The bill also would have increased the standard deduction for married couples to twice that of singles.

5) CALFED MARKUP RESCHEDULED FOR SEPT 20th

Resource Committee Release - Events on the U.S. House floor and a busy Committee agenda delayed consideration of a CALFED reauthorization bill (H.R. 5130) for the U.S. House Committee on Resources markup. H.R. 5130 would authorize $60 million in funding for the Secretary of the Interior to continue the implementation of ecosystem protection programs and development of water supply enhancement projects to improve water supply and water quality for California.

7) OSE VOTES TO OVERRIDE VETO OF DEATH TAX REPEAL

Last week, the House voted to override President Bill Clinton's veto of the Death Tax Elimination Act of 2000. "I am very disappointed with the President’s action," Ose said. "The death tax is one of the most unfair taxes on the books, because it taxes farmers, ranchers and small business owners twice. The last thing that grieving family members should have to worry about is selling the family business or farm in order to pay taxes." The House failed today to override the President's veto by a vote of 274 to 157 (a two-thirds majority of 284 was necessary to override). Fifty-three Democrats joined 220 Republicans and one Independent in voting to override. Sixty-five Democrats supported the bill when it passed the House in June.

Under current laws, when someone dies, the surviving family is forced to pay an additional tax of up to 55 percent of the property value of the deceased – even though the deceased spent his or her entire life paying taxes on that very same property. Today’s bill provides for a phased-in repeal of estate, gift and generation skipping transfer tax over the next 10 years.

According to the National Federation of Independent Businesses, more than 70 percent of small businesses do not survive the second generation and 87 percent do not make it to the third generation. Sixty percent of small-business owners report that they would create new jobs over the coming year if estate taxes were eliminated.