Rural communities are the cornerstones to a solid future for Oklahoma and it is vital that their individual needs are met. We need to understand that rural Oklahoma cannot be left behind as we try to move our state ahead. Rural communities provide a great education, a strong civic life and a low cost of living, but too often lack access to medical care, good jobs and key services necessary to survive. My office is trying to assist by giving advice on grant opportunities, encouraging investment and job growth by expanding companies and ensuring that health care is accessible and affordable in rural Oklahoma. I am committed to helping strengthen our rural communities.
Oklahoma's Fourth Congressional District has a rich agricultural heritage. Agriculture issues are particularly important to Oklahomans, and I will continue to work with Congressman Frank Lucas, the Oklahoma delegation leader on agriculture issues, to ensure producers in Oklahoma have the resources they need. We will make sure that Oklahoma's farmers and producers will not be left out during the budget process.
Another concern of Oklahomans, especially those who live in rural areas small communities, is health care. There are many hospitals in sparsely populated areas in Oklahoma. As we continue to debate changes to our current health care structure in Congress, the opinions of those who work and those who use rural and suburban health care facilities are particularly important. All Oklahomans should have access to quality, affordable care, the best specialists and technology, and strengthening Medicare with a prescription drug plan. There are many rural health provisions in the Medicare Prescription Drug and Modernization Act (HR 2473) that was signed into law in 2003.
This legislation will increase total spending for rural health care by $27.2 billion. This is an enormous increase that will help correct existing inequities by pumping billions of dollars over the next decade into rural and small towns. A provision in the Medicare Prescription Drug Modernization Act will equalize the standardized base payment rate between rural and urban areas. Under current law, hospitals in populations of more than 1 million receive payments that were 1.6% higher than payments for those in smaller areas. The Medicare legislation passed through the House will also include a prescription drug benefit to help seniors pay for important, and sometimes life-saving, medicines - some of which cost several thousand dollars each year.
I recognize how much lowering the federal tax burden can assist farmers, small business owners (who are the life blood of rural communities) and hard-working families. I supported President Bush's tax cut and economic stimulus package that passed in 2003. That historic legislation cut taxes for almost a million Oklahomans and their families. This economic stimulus package is helping create jobs and give people better opportunities.
An important part of the tax package was the increase of the amount a small business can deduct for business equipment. The deduction increase from $25,000 to $100,000 will help many small businesses across Oklahoma.
I also voted in favor of H.R. 8, the Death Tax Repeal Permanency Act of 2005. This legislation makes the repeal of estate and generation-skipping taxes and certain reductions of the gift tax permanent. The extremely unpopular, unnecessary death tax has made it very difficult for small business and farm owners to leave their legacy of hard work to their loved ones. After paying taxes throughout their life, it is unfair to tax property again upon a business owner's death. I voted for The Death Tax Repeal Permanency Act because it is extremely difficult for families to plan and make economically wise decisions when the future of the death tax is uncertain. These farms will be in danger of dismemberment if death taxes force them to sell land, buildings and other equipment to continue operation.
The death tax puts a heavy strain on family businesses. Rural communities will, in turn, suffer with the additional strains placed on farms and ranches. According to the National Federation of Independent Business (NFIB), more than 70 percent of family businesses do not survive the second generation and 87 percent do not make it to the third.
According to survey by Prince and Associates, most heirs to family businesses attribute the discontinuance of the company to the death tax. The National Federation of Business noted that one-third of small business owners today will have to sell or liquidate part of their business to pay estate taxes. Half of those who liquidate to pay death taxes will have to eliminate 30 or more jobs.
It is particularly important that families of all income levels benefit from tax cuts. The benefits most families realize can be put towards new clothes for children, the cost of housing, a child's college education, or a secure retirement. Along with others, I believe this plan will spur economic growth by encouraging consumer spending and investment. I believe more money should be put into the hands of the people that earned it.