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Bush, Burgess and Fundamental Tax Reform
Posted by on September 15, 2004
President Bush gave the topic of tax reform a metaphorical shot in the arm when he highlighted it during his convention acceptance speech. As a long-time advocate of fundamental tax reform, I applaud him for his attention to this issue.
Since President Bush took office in 2001, Congress has passed several major tax cuts at the President's urging. This tax relief has reduced the tax burden for millions of families while making a number of important steps towards fundamental tax reform. Indeed we have made some progress, but simplicity and fairness in our tax system are still not a reality.
Everyone knows the problem. Each year Americans waste billions of hours and billions of dollars complying with the complex tax code. Time is precious, and we never have enough for raising our families. Time is money, and valuable resources are lost that could be spent on productive activities such as growing the economy and creating jobs.
This complexity is the outcome of dozens of deductions and exemptions stemming from years of trying to drive a social agenda with the tax code. The result is the almost unintelligible federal tax code which provides some people an opportunity for tax avoidance by exploiting loopholes and tax shelters.
In 1993, I encountered what I call of the “Clinton paradox.” Ninety-three was the year that Congress increased the tax rate, retroactive to the first of the year. By some quirk of fate, Mr. Clinton and I earned almost an identical amount that year. But when it came time to settle and pay-up to the federal government, Mr. Clinton paid just over 20%, and I paid over 30%. Why should such a discrepancy exist? What is the benefit for the country when we are taxed at different rates on exactly the same income?
Currently, simplicity and fairness in taxes are sacrificed for the sake of pursuing a social agenda. But a social agenda is not the purpose of the federal income tax code.
Numerous changes could be made within our existing system. Full expensing of business capital investment, permanently repealing the estate tax and abolishing the alternative minimum tax are a few possibilities.
President Bush’s recent savings initiative would also help simplify the tax code by consolidating all of the current fragmented savings vehicles into three tax-free savings accounts.
A recent suggestion, by Congressman Chris Cox, Chairman of the House Republican Policy Committee, to simplify the tax code would be to allow taxpayers earning $100,000 or less to file a 1040 EZ form. Currently, taxpayers with an income above $50,000 must file a more complicated 1040 form.
Future incremental reform is an important step towards tax simplification. This Congress has done a good job with incremental tax reform. The temporary alternative minimum tax relief provided by last year’s tax reform package was helpful.
But Congress must soon act to prevent a huge tax increase on the middle class. It is estimated that more than 30 million taxpayers will be subject to the Alternative Minimum Tax by the year 2010 if Congress does not act. This is truly a gathering storm. I believe that as more and more taxpayers must handover these ever-increasing amounts of money, the impetus behind fundamental tax reform will grow.
I am a strong proponent for fundamental tax reform. I think simplicity and fairness demand that we replace our current tax system with a single rate system that taxes income only one time. And the good news is with all of the incremental reforms passed since 2001, we are on a glide path for a simpler and fair system.
Over one year ago, I introduced the “Freedom Flat Tax Act” which would allow taxpayers to opt into a consumption based single rate flat tax system that would replace the federal income tax with a flat 17% wage tax rate. There would be no deductions, nor loopholes; however, some personal exemptions would be allowed.
It is important to note that the Freedom flat tax does not tax Social Security income. Additionally, the Freedom flat tax does not tax savings or investments. In this time of deficits, we should in fact be encouraging these types of pro-growth activities.
The Freedom flat tax act will create a system that promotes fairness and economic prosperity by treating everyone the same, regardless of income or occupation, and removing the special preferences and disincentives for economic growth which characterize our current tax system.
At the same time, the decision to move to a single rate system would be entirely up to the individual or business, not up to the government. If someone has constructed with their domestic finances, or their business finances, to maximize earnings under the current federal income tax code, they would be allowed to stay within the code. There would be no ability to move between the two systems.
A flat tax would be much less costly, saving taxpayers more than $100 billion per year and reducing tax compliance costs by over 90 percent, according to one estimate. The resulting increase in take-home pay will give people and businesses more money to spend, ultimately boosting economic activity.
Fundamental tax reform remains a worthwhile goal, and this Congress should continue its pursuit. With the clouds on the horizon provided by the Alternative Minimum Tax, the wind is at our backs for affecting some type of fundamental reform, and we should do no less than seize the day.
The Burgess Bulletin - September 2004
Posted by on September 15, 2004
Congressman Burgess Returns from Russia
September 21, 2004 - Congressman Michael C. Burgess (R-Flower Mound) returned from a congressional delegation visit to Russia. Rep. Burgess traveled, with U.S. State Department approval, to Russia to express the sympathy of America for the recent tragedy to befall a Beslan school.
“There is no just cause for the abhorrent attack on the lives of innocent children, teachers and parents,” declared Rep. Michael Burgess. “It was my honor to pay my respects, and those of Americans across the country, to the brave souls terrorized during the hostage crisis.”
Before departing for Russia, Congressman Burgess asked several local schools if they would like to participate in a card giving program. The response was overwhelming. Rep. Burgess was able to present well-wishes of local students to survivors and their families through hundreds of cards.
“The smiles on the faces of those injured and suffering was enough to bring a grown man to tears,” remarked Rep. Michael Burgess. “The hearts of American children truly shined in the eyes of the Russian children, and I am truly thankful for their care and cheer.”
The following schools participated: Rockbrook Elementary School (Lewisville), Sanger Middle School, Calhoun Middle School (Denton), Wilshire Elementary (Euless), Florence Elementary (Southlake), Christ Our Savior Lutheran K-5 (Coppell) and Lewisville High School North (9th Grade). Over fifty cards from Lewisville High School North contained Russian phrases provided by a young Russian émigré, Sasha Watson.
In addition to several political meetings, Congressman Burgess focused his time at two hospitals visiting survivors and their families. During his time in Russia, Congressman Burgess spoke on Russian national radio where he expressed sympathies and a strong commitment to battling terrorism.
Congressman Michael Burgess commented on his mission overall: “The immediate connection with the Russians, after what is often described as Russia’s 9/11, is unforgettable. I will continue to monitor that aid and supplies are available to those who suffered during this attack. By bringing the War on Terror straight to children, terrorists have sunk to a new low. America will continue to build relations with those countries dedicated to combating terrorism. We will succeed.”
For more information about Congressman Burgess’ recent mission to Russia, please visit his website at www.house.gov/burgess.
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Speaker Appoints Burgess to Sit on Additional Committee: Government Reform
September 24, 2004 – Congressman Michael C. Burgess (TX-26) was nominated by Speaker of the House Dennis Hastert (IL-14) and approved unanimously by the House Steering Committee to a seat on the coveted Committee on Government Reform. A unique honor, Congressman Burgess now sits on three separate committees of jurisdiction; Transportation and Infrastructure, Science and Government Reform and presides as Chairman of the House Policy Subcommittee on Health.
“Working on the Government Reform committee will be both challenging and rewarding,” stated Rep. Michael Burgess.
"Representative Burgess is an articulate, dedicated Member of the House who is capable of handling the responsibilities of three separate committees," stated Speaker Dennis Hastert (IL-14) about his decision to appoint Rep. Burgess. "Dr. Burgess speaks frequently on the floor about winning the war on terrorism and brings the Government Reform committee a fresh perspective to establish swift, yet sensible legislation to keep America safe."
Rep. Michael Burgess’ new position as a Member of the Government Reform team adds greater responsibility and scope to his congressional schedule. The Committee on Government Reform has the specific responsibility to oversee whether laws and programs are being implemented and carried out in accordance with the intent of Congress. The Government Reform Committee determines if the laws and programs should be continued, curtailed, or eliminated. Additionally, the Committee may also, at any time, conduct investigations of any matter regardless of whether another standing committee has jurisdiction over the matter.
“Within the next few weeks, we will be working on the legislation that has arisen as a result of the 9/11 Commissioner’s Report. We have seen some activity in the transportation committee on this issue, and I look forward to now contributing on the Government Reform committee.”
“Congressman Burgess has traveled with the Government Reform committee to Iraq and Afghanistan twice in the last year,” stated Chairman Tom Davis (VA-11). “His intellect and attention to detail will clearly be an asset to the committee as we move forward on delicate legislation connected to our nation’s security.”
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Burgess is Two-Time Winner of Tax Award
September 17, 2004 - Americans for Tax Reform (ATR) awarded Congressman Michael C. Burgess (TX-26) with their annual “Hero of the Taxpayer” award for the second time. On the same day, the American Shareholders Association (ASA) presented Rep. Burgess with the “Friend of the Shareholder” annual award.
“I have been, and will continue to be, a consistent supporter of conservative fiscal policies,” stated Congressman Michael Burgess after receiving news of his awards. “It is an honor to be recognized again this year.”
Grover Norquist, President of Americans for Tax Reform and prominent D.C.-based activist stated, “Looking at these votes, taxpayers back home can tell if they have a friend or an enemy in Washington. As far as Michael Burgess is concerned, they have a friend.”
For more information on Congressman Burgess’ fiscal policies, please visit the following webpage: /Issues/Issue/?IssueID=621.
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Bush, Burgess and Fundamental Tax Reform
Op-Ed by Congressman Michael C. Burgess
President Bush gave the topic of tax reform a metaphorical shot in the arm when he highlighted it during his convention acceptance speech. As a long-time advocate of fundamental tax reform, I applaud him for his attention to this issue.
Since President Bush took office in 2001, Congress has passed several major tax cuts at the President's urging. This tax relief has reduced the tax burden for millions of families while making a number of important steps towards fundamental tax reform. Indeed we have made some progress, but simplicity and fairness in our tax system are still not a reality.
Everyone knows the problem. Each year Americans waste billions of hours and billions of dollars complying with the complex tax code. Time is precious, and we never have enough for raising our families. Time is money, and valuable resources are lost that could be spent on productive activities such as growing the economy and creating jobs.
This complexity is the outcome of dozens of deductions and exemptions stemming from years of trying to drive a social agenda with the tax code. The result is the almost unintelligible federal tax code which provides some people an opportunity for tax avoidance by exploiting loopholes and tax shelters.
In 1993, I encountered what I call of the “Clinton paradox.” Ninety-three was the year that Congress increased the tax rate, retroactive to the first of the year. By some quirk of fate, Mr. Clinton and I earned almost an identical amount that year. But when it came time to settle and pay-up to the federal government, Mr. Clinton paid just over 20%, and I paid over 30%. Why should such a discrepancy exist? What is the benefit for the country when we are taxed at different rates on exactly the same income?
Currently, simplicity and fairness in taxes are sacrificed for the sake of pursuing a social agenda. But a social agenda is not the purpose of the federal income tax code.
Numerous changes could be made within our existing system. Full expensing of business capital investment, permanently repealing the estate tax and abolishing the alternative minimum tax are a few possibilities.
President Bush’s recent savings initiative would also help simplify the tax code by consolidating all of the current fragmented savings vehicles into three tax-free savings accounts.
A recent suggestion, by Congressman Chris Cox, Chairman of the House Republican Policy Committee, to simplify the tax code would be to allow taxpayers earning $100,000 or less to file a 1040 EZ form. Currently, taxpayers with an income above $50,000 must file a more complicated 1040 form.
Future incremental reform is an important step towards tax simplification. This Congress has done a good job with incremental tax reform. The temporary alternative minimum tax relief provided by last year’s tax reform package was helpful.
But Congress must soon act to prevent a huge tax increase on the middle class. It is estimated that more than 30 million taxpayers will be subject to the Alternative Minimum Tax by the year 2010 if Congress does not act. This is truly a gathering storm. I believe that as more and more taxpayers must handover these ever-increasing amounts of money, the impetus behind fundamental tax reform will grow.
I am a strong proponent for fundamental tax reform. I think simplicity and fairness demand that we replace our current tax system with a single rate system that taxes income only one time. And the good news is with all of the incremental reforms passed since 2001, we are on a glide path for a simpler and fair system.
Over one year ago, I introduced the “Freedom Flat Tax Act” which would allow taxpayers to opt into a consumption based single rate flat tax system that would replace the federal income tax with a flat 17% wage tax rate. There would be no deductions, nor loopholes; however, some personal exemptions would be allowed.
It is important to note that the Freedom flat tax does not tax Social Security income. Additionally, the Freedom flat tax does not tax savings or investments. In this time of deficits, we should in fact be encouraging these types of pro-growth activities.
The Freedom flat tax act will create a system that promotes fairness and economic prosperity by treating everyone the same, regardless of income or occupation, and removing the special preferences and disincentives for economic growth which characterize our current tax system.
At the same time, the decision to move to a single rate system would be entirely up to the individual or business, not up to the government. If someone has constructed with their domestic finances, or their business finances, to maximize earnings under the current federal income tax code, they would be allowed to stay within the code. There would be no ability to move between the two systems.
A flat tax would be much less costly, saving taxpayers more than $100 billion per year and reducing tax compliance costs by over 90 percent, according to one estimate. The resulting increase in take-home pay will give people and businesses more money to spend, ultimately boosting economic activity.
Fundamental tax reform remains a worthwhile goal, and this Congress should continue its pursuit. With the clouds on the horizon provided by the Alternative Minimum Tax, the wind is at our backs for affecting some type of fundamental reform, and we should do no less than seize the day.
For more information about Congressman Burgess’ Freedom Flat Tax Bill, please visit one of the following website: http://thomas.loc.gov/cgi-bin/query.
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How to Contact the Congressman
If you are looking for Congressman Burgess’ opinions on various pieces of legislation before Congress, visit his website at www.house.gov/burgess. By clicking on this website, you can view recent votes, press releases, op-eds, issue briefs and the latest news from Dr. Burgess. The website also provides links to other government sites and information on how Rep. Burgess can assist you with Constituent Services.
H.R.3369 Nonprofit Athletic Organization Protection Act of 2003
Posted by on September 14, 2004
H.R.3369
217-176
Burgess voted yea
Title:To provide immunity for nonprofit athletic organizations in lawsuits arising from claims of ordinary negligence relating to the passage or adoption of rules for athletic competitions and practices.
Sponsor: Rep Souder, Mark E. [IN-3] (introduced 10/21/2003) Cosponsors: 17
Committees: House Judiciary
House Reports: 108-681
Latest Major Action: 9/14/2004 Failed of passage/not agreed to in House. Status: On motion to suspend the rules and pass the bill Failed by the Yeas and Nays: (2/3 required): 217 - 176 (Roll no. 445).
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SUMMARY AS OF:
10/21/2003--Introduced.
Nonprofit Athletic Organization Protection Act of 2003 - Exempts a nonprofit athletic organization from liability for harm caused by an act or omission in the adoption of rules for sanctioned or approved athletic competitions or practices if: (1) the organization was acting within the scope of its duties; (2) the organization was properly licensed, certified, or authorized for the competition or practice; and (3) the harm was not caused by the organization's willful or criminal misconduct, gross negligence, or reckless misconduct. Makes exceptions where State law: (1) requires such an organization to adhere to risk management procedures, including mandatory training; (2) makes the organization liable for the acts or omissions of its employees, agents, and volunteers to the same extent as an employer is liable for its employees; and (3) makes a limitation of liability inapplicable if the civil action was brought by an officer of a State or local government
H.R.1787 Good Samaritan Volunteer Firefighter Assistance Act of 2003
Posted by on September 14, 2004
H.R.1787
397-3
Burgess voted yea
Title:To remove civil liability barriers that discourage the donation of fire equipment to volunteer fire companies.
Sponsor: Rep Castle, Michael N. [DE] (introduced 4/11/2003) Cosponsors: 68
Committees: House Judiciary
House Reports: 108-680
Latest Major Action: 9/15/2004 Received in the Senate.
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SUMMARY AS OF:
9/14/2004--Passed House, amended. (There are 2 other summaries)
(This measure has not been amended since it was reported to the House on September 13, 2004. The summary of that version is repeated here.)
Good Samaritan Volunteer Firefighter Assistance Act of 2004 - States that a person (including a governmental or other entity) who donates fire control or fire rescue equipment to a volunteer fire company shall not be liable for State or Federal civil damages for personal injuries, property damage or loss, or death proximately caused by the equipment after the donation.
Waives such liability protection if: (1) the person's act or omission causing the injury, damage, loss, or death constitutes gross negligence or intentional misconduct; or (2) the person is the manufacturer of such equipment.
Preempts State law that is inconsistent with this Act, except where such law provides additional liability protection.
Directs the Attorney General to: (1) conduct a State-by-State review of such donations during the five years before this Act's enactment; and (2) report the results to Congress, including an assessment for each State of the most effective way to fund firefighter companies, whether first responder funding is sufficient to respond to the Nation's needs, and the best method to ensure that donated equipment is in usable condition.
H.R.1084 Volunteer Pilot Organization Protection Act
Posted by on September 14, 2004
H.R.1084
385-12
Burgess voted yea
Title:To provide liability protection to nonprofit volunteer pilot organizations flying for public benefit and to the pilots and staff of such organizations.
Sponsor: Rep Schrock, Edward L. [VA-2] (introduced 3/5/2003) Cosponsors: 25
Committees: House Judiciary
House Reports: 108-679
Related Bills: S.955
Latest Major Action: 9/15/2004 Received in the Senate.
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SUMMARY AS OF:
3/5/2003--Introduced.
Volunteer Pilot Organization Protection Act - Amends the Volunteer Protection Act of 1997 to exempt from liability a nonprofit volunteer pilot organization that flies for public benefit, its staff members, and its volunteers for harm caused by a volunteer while flying, in furtherance of the purpose of the organization, an aircraft for which the volunteer was properly licensed and individually insured.
HR 4571 Lawsuit Abuse Reduction Act of 2004
Posted by on September 14, 2004
H.R.4571
229-174
Burgess voted yea
Title:To amend Rule 11 of the Federal Rules of Civil Procedure to improve attorney accountability, and for other purposes.
Sponsor: Rep Smith, Lamar [TX-21] (introduced 6/15/2004) Cosponsors: 31
Committees: House Judiciary; Senate Judiciary
House Reports: 108-682
Related Bills: H.RES.766
Latest Major Action: 9/15/2004 Referred to Senate committee. Status: Received in the Senate and Read twice and referred to the Committee on the Judiciary.
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SUMMARY AS OF:
9/14/2004--Passed House, amended. (There are 2 other summaries)
(This measure has not been amended since it was reported to the House on September 13, 2004. The summary of that version is repeated here.)
Lawsuit Abuse Reduction Act of 2004 - (Sec. 2) Amends Rule 11 of the Federal Rules of Civil Procedure to: (1) require courts to impose sanctions on attorneys, law firms, or parties who file frivolous lawsuits (currently, discretionary); (2) disallow the withdrawal or correction of pleadings to avoid Rule 11 sanctions; (3) require courts to award parties prevailing on Rule 11 motions reasonable expenses and attorney's fees, if warranted; (4) authorize courts to impose Rule 11 sanctions that include reimbursement of a party's reasonable litigation costs in connection with frivolous lawsuits; and (5) make the discovery phase of litigation subject to Rule 11 sanctions.
(Sec. 3) Makes Rule 11 applicable to State civil actions where the court determines, upon motion, that the action affects interstate commerce.
(Sec. 4) Requires personal injury claims (defined to exclude class actions) filed in State or Federal court to be filed in the county or Federal district in which: (1) the person bringing the claim resides at the time of filing or resided at the time of the alleged injury; (2) the alleged injury or circumstances giving rise to the injury occurred; or (3) the defendant's principal place of business is located. Directs the trial court to determine which county or Federal district is the most appropriate forum in those situations where the alleged injury occurred in more than one county or district.
(Sec. 6) Requires a mandatory one-year suspension for attorneys determined by a Federal district court to have violated Rule 11 three or more times in that court during the attorney's career. Authorizes the court to suspend such attorneys for an additional period as the court considers appropriate. Gives suspended attorneys the right to appeal and stays suspensions pending appeal. Requires suspended attorneys to petition the court for reinstatement under procedures and conditions prescribed by the court.
(Sec. 7) Imposes civil sanctions commensurate with those sanctions available under Rule 37 of the Federal Rules of Civil Procedure, in addition to other available civil sanctions, for willfully and intentionally influencing, obstructing, or impeding a pending court proceeding (or attempting to do the same) through the willful and intentional destruction of documents sought in and highly relevant to that proceeding. Makes such sanctions applicable to both Federal and State court proceedings.
H.Res. 760 Condemning the series of terrorist attacks against the Russian Federation that occurred in late August and early September 2004.
Posted by on September 9, 2004
H.RES.760
347-0
Burgess voted YEA
Title:Condemning the series of terrorist attacks against the Russian Federation that occurred in late August and early September 2004.
Sponsor: Rep Royce, Edward R. [CA-40] (introduced 9/8/2004) Cosponsors: 54
Committees: House International Relations
Latest Major Action: 9/13/2004 Passed/agreed to in House. Status: On motion to suspend the rules and agree to the resolution Agreed to by the Yeas and Nays: (2/3 required): 347 - 0 (Roll no. 443).
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SUMMARY AS OF:
9/13/2004--Passed House, without amendment. (There is 1 other summary)
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
States that the House of Representatives: (1) deplores the series of terrorist attacks against the Russian Federation that occurred in August and September 2004; (2) expresses its condolences to the families of the victims and conveys its hope for the recovery of the injured; and (3) stands in solidarity with the Russian people in efforts to combat terrorism throughout the world.
HCONRES 363 Expressing the grave concern of Congress regarding the continuing gross violations of human rights and civil liberties of the Syrian people by the Government of the Syrian Arab Republic.
Posted by on September 9, 2004
H.CON.RES.363
342-0
Burgess voted Yea
Title:Expressing the grave concern of Congress regarding the continuing gross violations of human rights and civil liberties of the Syrian people by the Government of the Syrian Arab Republic.
Sponsor: Rep Ros-Lehtinen, Ileana [FL-18] (introduced 2/11/2004) Cosponsors: 28
Committees: House International Relations; Senate Foreign Relations
Latest Major Action: 9/14/2004 Referred to Senate committee. Status: Received in the Senate and referred to the Committee on Foreign Relations.
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SUMMARY AS OF:
2/11/2004--Introduced.
Declares that Congress: (1) condemns the numerous human rights violations by the Government of the Syrian Arab Republic; (2) calls on the international community to adopt a resolution at the upcoming 60th Session of the United Nations Commission on Human Rights which details the dismal human rights record of Syria and establishes a Special Rapporteur to further investigate these abuses; (3) expresses its support for the Syrian people in their struggle for freedom, respect for human rights and civil liberties, democratic self-governance, and the establishment of the rule of law; (4) encourages the President and the Secretary of State, through the Middle East Partnership Initiative and other avenues, to assist dissidents, human rights activists, and the pro-democracy opposition in Syria; and (5) urges the adoption and pursuit of these and other policies to seek a democratic government in Syria that will restore freedom to the Syrian people, cease the illegal Syrian occupation of the Lebanese Republic, abandon Syrian support for terrorism, and live in peace and security with the international community.
HRES 667 Expressing support for freedom in Hong Kong.
Posted by on September 9, 2004
H.RES.667
345-0
Burgess Voted Yea<.B>
Title:Expressing support for freedom in Hong Kong.
Sponsor: Rep Cox, Christopher [CA-48] (introduced 6/9/2004) Cosponsors: 45
Committees: House International Relations
Related Bills: S.J.RES.33
Latest Major Action: 9/13/2004 Passed/agreed to in House. Status: On motion to suspend the rules and agree to the resolution Agreed to by the Yeas and Nays: (2/3 required): 345 - 0, 1 Present (Roll no. 442).
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SUMMARY AS OF:
6/9/2004--Introduced.
States that House of Representatives: (1) declares that the people of Hong Kong should be free to determine the pace and scope of constitutional developments; and (2) calls upon the President to call upon the People's Republic of China to guarantee that all revisions of Hong Kong law are made according to the wishes of the people of Hong Kong as expressed through a fully democratically elected legislature and chief executive, declare that the continued lack of a fully democratically elected legislature in Hong Kong constitutes a violation of the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the Question of Hong Kong (the Sino-British Joint Declaration of 1984), and call upon the People's Republic of China to honor its obligations under such Declaration.
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