Rebuilding Casinos in the Gulf Coast Region

REBUILDING CASINOS IN THE GULF COAST REGION -- (House of Representatives - December 06, 2005)

The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Nebraska (Mr. Fortenberry) is recognized for 5 minutes.

Mr. FORTENBERRY. Mr. Speaker, I rise to express my strong opposition to the inclusion of any tax breaks to rebuild the gulf coast gambling industry in the tax package, which may reach the House floor in the near future. I believe that it is an extraordinarily controversial and improper measure to support the casino industry with tax incentives paid by other Americans. I would like to commend the distinguished gentleman from Virginia (Mr. Wolf) for his active role in bringing attention to this important issue.

I certainly understand the need to provide general economic incentives for businesses to rebuild in the gulf region, which was so heavily devastated by the hurricanes earlier this year. I support efforts to encourage economic development and restore infrastructure in the area. However, I cannot support allowing casinos to access Federal tax breaks while at the same time we are proposing to achieve savings from a host of other governmental programs.

If Americans were given a choice, I believe that they would prefer not to use limited resources to support the casinos. Prudent use of hard-earned taxpayer money demands that we stay focused on concerns such as the defense of our Nation, education of our children, health care for veterans, and subsistence for the poor.

My constituents are aware of the proposal to potentially provide assistance to gambling interests and have let me know of their opposition to such an effort. Nebraskans, and Americans generally, are generous people, willing to help others in need. Congress, however, has a responsibility not to abuse this generosity by providing tax breaks to wealthy gambling operations which have already signaled their intention to rebuild in the gulf region. In fact, even without the tax breaks, the gambling industry has announced its plan to come back ``bigger and better'' in the area.

Government is an instrument of societal order, establishing priorities for how we choose to live. For instance, we have worked to reduce the marriage penalty in the tax code. We provide tax incentives to save for retirement. We provide tax benefits for health care, and there is certainly a precedent for targeting incentives toward certain businesses while restricting the use of tax breaks for others.

In fact, it would be unusual, I contend, if the government did not restrict these tax breaks and exclude casinos.

As a Gulf Opportunity Zone package was under consideration, Alberto Lopez, Director of Strategic Communication For Harrah Entertainment, Incorporated, was recently quoted in The Washington Post as saying, ``We are actually scratching our heads. We can't ever remember an instance of being offered a tax credit. Ever.''

In another telling comment in the same Washington Post article, a gambling company official, who wished to remain anonymous, stated ``Anything that the Federal Government can provide, obviously we'll take advantage of it.'' Unfortunately, these gambling conglomerates would be taking advantage not only of tax breaks but the generosity of American taxpayers as well.

Why should all Americans be forced to prioritize casinos in the Tax Code? How can Congress consider providing such incentives to the multi-billion dollar gambling industry when there are so many unmet needs in this Nation? Why should these incentives be considered when the gambling industry already plans to rebuild the casinos? To what extent were these casinos covered by insurance? These are a few of the questions that must be addressed before tax legislation reaches the House floor.

Mr. Speaker, I strongly urge my colleagues to join me in expressing opposition to the inclusion of any tax breaks for gambling interests. Do not let the casino interests hit the jackpot through the Tax Code.

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