S5072 CONGRESSIONAL RECORD — SENATE July 17, 2012 The question is, Is it the sense of the BRING JOBS HOME ACT—MOTION Let me start on process, to say it is Senate that debate on the motion to TO PROCEED true, of course, as the leader indicated, proceed to S. 3369, a bill to amend the Mr. REID. I move to proceed to Cal- we could be simply on this bill and Federal Election Campaign Act of 1971 endar No. 442, S. 3364. working to complete it and pass it. But to provide for additional disclosure re- The PRESIDING OFFICER. The unfortunately, as happens on every- quirements for corporations, labor or- clerk will report the motion. thing now, when the leader attempts to ganizations, super PACs, and other en- The assistant legislative clerk read move to a bill, there is an objection to tities, and for other purposes, shall be as follows: that. When there is, it puts us into a situation where we have to spend sev- brought to a close? Motion to proceed to Calendar No. 442 (S. The yeas and nays are mandatory 3364), a bill to provide an incentive for busi- eral days trying to overcome a poten- under the rule. nesses to bring jobs back to America. tial filibuster to be able to move to the bill. So, process-wise, that is where we The clerk will call the roll. CLOTURE MOTION are. The bill clerk called the roll. Mr. REID. Mr. President, I have a Mr. KYL. The following Senators are From a substance standpoint it is ab- cloture motion at the desk in reference solutely critical that we move to this necessarily absent: the Senator from to this legislation. Illinois (Mr. KIRK) and the Senator bill and that we pass it. The great re- The PRESIDING OFFICER. The clo- cession and the financial collapse of from Alabama (Mr. SHELBY). ture motion having been presented pur- Further, if present and voting, the 2008 were absolutely devastating to our suant to rule XXII, the Chair directs Senator from Alabama (Mr. SHELBY) economy. We know that during that the clerk to read the motion. time, 8 million Americans lost their would have voted ‘‘no.’’ The assistant legislative clerk read The PRESIDING OFFICER. Are there jobs and many are still struggling to as follows: any other Senators in the Chamber de- get out of their own deficit hole be- siring to vote? CLOTURE MOTION cause of what happened. These are peo- The yeas and nays resulted—yeas 53, We, the undersigned Senators, in accord- ple who worked all their lives and nays 45, as follows: ance with the provisions of rule XXII of the played by the rules, only to have the Standing Rules of the Senate, hereby move [Rollcall Vote No. 180 Leg.] rug pulled out from under them. to bring to a close the debate on the motion Many of these people were folks who YEAS—53 to proceed to Calendar No. 442, S. 3364, a bill worked in manufacturing, many in my Akaka Hagan Nelson (NE) to provide an incentive for businesses to Baucus Harkin Nelson (FL) bring jobs back to America. great State of Michigan. We are so Begich Inouye Pryor Harry Reid, Debbie Stabenow, Sheldon proud that we make things in Michi- Bennet Johnson (SD) Reed Whitehouse, Al Franken, Richard J. gan. We do not have a middle class, we Bingaman Kerry Reid Durbin, Sherrod Brown, Richard do not have an economy unless we Blumenthal Klobuchar Rockefeller Boxer Kohl Blumenthal, Jeff Merkley, Christopher make things. That is what we do in Sanders A. Coons, Robert P. Casey, Jr., Ben- Brown (OH) Landrieu Schumer Michigan. For decades, this has been Cantwell Lautenberg jamin L. Cardin, Jeanne Shaheen, Shaheen the foundation of our economy. Frank- Cardin Leahy Kirsten E. Gillibrand, Charles E. Schu- Stabenow Carper Levin ly, it created the middle class of our Tester mer, Jack Reed, Barbara A. Mikulski, Casey Lieberman John D. Rockefeller IV. country and we are proud it started in Conrad Manchin Udall (CO) Michigan with the beginning of the Coons McCaskill Udall (NM) Mr. REID. I ask unanimous consent Warner automobile industry. Durbin Menendez that the mandatory quorum required It is no coincidence that as those jobs Feinstein Merkley Webb under rule XXII be waived. Whitehouse have disappeared over the decades, the Franken Mikulski The PRESIDING OFFICER. Without Gillibrand Murray Wyden middle class has begun to disappear as objection, it is so ordered. well and families are in more and more NAYS—45 Mr. REID. Mr. President, once again Alexander DeMint McCain difficult situations personally as a re- I am disappointed, as I think most peo- sult of that. Those jobs have been the Ayotte Enzi McConnell ple in this country are, on an issue as Barrasso Graham Moran driving force of our economy for dec- Blunt Grassley Murkowski timely as this, outsourcing jobs, that ades, as I indicated. Those jobs are the Boozman Hatch Paul we once again are being stymied on jobs that allowed the ‘‘greatest genera- Brown (MA) Heller Portman moving to that legislation. We are Burr Hoeven Risch tion’’ to build the greatest economy in Chambliss Hutchison Roberts going to have a vote. The rules are we the world, the greatest economy we Coats Inhofe Rubio cannot have a vote on this until 2 days have ever seen. Those jobs led to tree- Coburn Isakson Sessions go by, so that is a vote on Thursday. If Cochran Johanns Snowe lined streets with at least one car in Collins Johnson (WI) Thune cloture is invoked on that, then we are every driveway, and the freedom to Corker Kyl Toomey only on the bill, and then to get off of raise a family and send them to college Cornyn Lee Vitter it would take another series of days. I Crapo Lugar Wicker and maybe have the cottage up north think to get final action on this is and be able to take the family on vaca- NOT VOTING—2 going to take a week. tion and have the American dream. Kirk Shelby It is so unfortunate that we have to Today in fact that dream is in jeop- The PRESIDING OFFICER. On this go through this. We have gone through ardy and every American family knows vote, the yeas are 53, the nays are 45. this so many times. There is, I repeat, that. But it does not have to be that Three-fifths of the Senators duly cho- not an issue more timely than this— way. In the last decade, companies sen and sworn not having voted in the outsourcing jobs. Whether it is the shipped 2.4 million jobs overseas. To affirmative, the motion upon reconsid- Olympic uniforms or the many other add insult to injury, American tax- eration is rejected. jobs that have been lost around the payers were asked to help foot the bill. Mr. CARDIN. I suggest the absence of country, the American people are tired It is amazing. When I explain that to a quorum. of it, but I think it is unfortunate the folks in Michigan, they say you have to The PRESIDING OFFICER. The Republicans are stopping us from being be kidding—or they say other things I clerk will call the roll. able to start legislating on this bill. cannot repeat on the floor of the Sen- The assistant bill clerk proceeded to The PRESIDING OFFICER. The Sen- ate. Just imagine if you are one of call the roll. ator from Michigan. those workers in Michigan or in Vir- Mr. REID. Mr. President, I ask unan- Ms. STABENOW. Mr. President, I ginia or in Ohio or in Wisconsin or any- imous consent that the order for the rise today to urge my colleagues to where in this country who maybe was quorum call be rescinded. support the motion we have before us forced to train your overseas replace- The PRESIDING OFFICER. Without to begin consideration of my bill, the ment before you were laid off. Imagine objection, it is so ordered. Bring Jobs Home Act. I thank my lead- what your reaction would be—more Mr. REID. Mr. President, I withdraw er for making this a priority and thank colorful than I have been able to state my pending motion to proceed. the President of the United States for here. When an American worker is The PRESIDING OFFICER. The mo- also making this a priority as we move asked to subsidize the moving ex- tion is withdrawn. forward. penses, as they do today under current

VerDate Mar 15 2010 23:59 Jul 17, 2012 Jkt 019060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\CR\FM\G17JY6.038 S17JYPT1 pwalker on DSK7TPTVN1PROD with SENATE July 17, 2012 CONGRESSIONAL RECORD — SENATE S5073 tax policy—the moving expenses and Ford Motor Company brought jobs This is a moment, I believe, for us to costs so their own job can be shipped back from Mexico to support advanced indicate very strongly to everybody in overseas—there is something seriously vehicle manufacturing at their newly the country that we get it and that we wrong with our Tax Code and with our retooled Wayne Assembly Plant in are not going to allow the Tax Code to priorities. Wayne, MI. Chrysler is growing and ex- continue to create a situation where if It does not have to be that way. In panding their operations here in the someone wants to close up shop and fact, we can change that. We can United States, investing—95 percent I move overseas they can get a tax change that this week on the floor of believe is the last number which I writeoff as a result. That makes abso- the Senate by passing the Bring Jobs heard of their investments are being lutely no sense. I cannot imagine any Home Act and sending it to the House done in America. We are proud to have other country in the world allowing and then sending it to the President them investing in Detroit and in Michi- that to happen. where I know he will enthusiastically gan. Last week we saw a report that When I think about places such as and immediately sign it. GM is about to go on a ‘‘hiring binge.’’ China, where at this point they say: Instead of rewarding companies for I love this, I love anything called a hir- Come on over, we will build the plant shipping jobs overseas, we want to re- ing binge, as they bring almost all of for you. Forget about a retooling loan; ward companies for bringing jobs their information technology needs we will build the plant for you. Of home. That is the whole point of this back in-house, and to America. course, then we will steal their pat- bill. We stop the tax deduction for We have a great company in De- ents, and there are a lot other chal- moving expenses related to moving troit—actually from New Jersey, now lenges, but: Come on over and we will jobs overseas. That is what this bill in Detroit—Galaxy Solutions, that has build the plant for you. The last num- does. Right now you can deduct those an ‘‘outsource to Detroit’’ effort going bers I saw showed that China was expenses as part of your business ex- on to bring IT back from places such as spending $288 million a day—probably penses. We say: No more. Second, we India and Brazil and China. We have on more now—on clean energy policies say: However, if you want to come the side of one of our largest buildings and manufacturing, and new cutting- home, we will happily give you that de- this great sign that says ‘‘outsource to edge efforts to try to compete and beat duction for the costs of moving back to Detroit.’’ If we are going to outsource us in an area we should own. the United States and we will add an somewhere, let’s outsource to our Between our universities and our additional 20 percent tax credit for American cities. We love the fact that businesses and our great workforce we those costs of bringing jobs back to the they are part of the effort to rebuild ought to completely own these tech- United States. That is what we are and refocus on Detroit. nologies. I am very proud to say that doing in the Bring Jobs Home Act. We have companies that want to in- Michigan is now No. 1 in new clean en- This is common sense. Unfortunately vest in America. We have stories about ergy patents. We were proud to open, it is not that common these days, but GE coming back. We have stories in last Friday, the first U.S. Patent Office it is common sense and it is good eco- every State of companies that are outside of Washington, DC, in Detroit, nomic sense as well. It is so important bringing jobs back to America. We MI, as a result of that. There are great that we pass this bill. We talk about have men and women who want to ideas happening all over this country tax reform. We talk about having a lot work. We have companies that are right now, innovators—frankly, people of tax loopholes. This is one we can looking at bringing jobs back. CNBC who have lost their jobs and they are eliminate right now, together, on a bi- called it ‘‘the stuff that dreams are now back in their garage or basement partisan basis. Let’s start here, the No. made of.’’ or the extra bedroom, with new ideas. 1 loophole, we will close it; No. 1 pri- I think going forward the great eco- We want to create businesses to sup- ority, jobs in America. nomic resurgence for us is involved in port their creation of businesses by I know some of my colleagues do not advanced manufacturing, making incentivizing them, not having a Tax believe these jobs are ever coming things in America and bringing our Code that incentivizes somebody to back. I hear that all the time. We in jobs back to America. It is more than move overseas. Michigan have been seeing that same time. It is what our workers are dream- This legislation I think is pretty sim- defeatist argument for 20 years. But in ing of. We are proud in Michigan of our ple. It is about bringing jobs home to fact that is not true. One of the things workforce, these folks who know how America. We are going to stop writing I am proudest of in the last 31⁄2 years is to work, they want to work, they work off the costs, allowing that business to that we have refocused on advanced hard every day. I have to say that ef- be subsidized by all of us, including the manufacturing, making things in forts such as ‘‘outsource to Detroit’’ people they lay off, in order to move America, in this country. We have a lot are giving them a new chance to do overseas. Instead, we are going to say more to do but we have in fact re- that, as well as the other efforts that no, if you move overseas you are on focused on jobs here at home and we are going on around Michigan. your own. But if you want to come are seeing, because of that, a whole There are so many opportunities back we are happy to allow you a busi- range of policies—whether it is the ad- right here in America. We have the ness deduction for those moving ex- vanced manufacturing tax cut I offered great new ideas. We have the ingenuity penses and we will add another 20 per- in the Recovery Act, that allows a 30- and the innovation. We have to make cent toward the costs of your expenses percent writeoff for clean energy man- sure we have the right policies to make on top of it. That is what we should be ufacturing jobs, or whether it is the re- it happen, that we are not doing any- doing. That is smart tax policy. It is tooling loans we put in place to be able thing in our Tax Code that encourages common sense. It is one step in a series to help retool plants to be able to mod- jobs to go overseas; that we do every- of things we need to do in order to be ernize in the name of advanced manu- thing possible to support efforts to able to bring jobs home and make facturing. It is bringing jobs back. bring them back and then to reinvest things in America again. I hope we will We put in place some initial actions and to expand upon research, develop- see an overwhelmingly positive, bipar- that are making a difference and we ment, innovation, retooling the plants tisan vote on this bill. It would send a are now seeing every month that man- we have, reinvesting in communities, wonderful message that we can work ufacturing is having an uptick. It has reinvesting in our cities, and focusing together. been one of the only areas where pretty on a strategy of American jobs. That is We worked together not long ago to much every month we have begun to what everyone wants us to be doing. pass a farm bill with a strong bipar- see a slow return. We are beginning to There is a great place to start and tisan vote because we need to make see some of these jobs come back as a that is with our Tax Code so that it and grow products in America. That is result. Our companies are doing the catches up with what leading-edge how we make an economy; that is how calculations, finding out that bringing business leaders already know. Amer- we have a middle class. We came to- jobs home makes good business sense. ican businesses, American workers can gether, and I am very appreciative of It is time our Tax Code stops standing compete with anybody in the world if everyone coming together and working in the way and actually has caught up we have a level playing field and we with me and Senator ROBERTS to get with what many businesses are doing. give them a chance to do it. that done. This is another opportunity.

VerDate Mar 15 2010 23:59 Jul 17, 2012 Jkt 019060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\CR\FM\G17JY6.041 S17JYPT1 pwalker on DSK7TPTVN1PROD with SENATE S5074 CONGRESSIONAL RECORD — SENATE July 17, 2012 It is another way for us to come to- do want to read a couple of lines from ernment. Clearly, that is not the way gether and say: We get it. We under- his letter. to go. stand what is going on in the country. His letter states: The President says everyone needs to Let’s work together and get the job The president’s programs not only limit pay their fair share. Well, of course ev- done. I strongly urge colleagues to my company’s potential to grow, but they eryone needs to pay their fair share, come together and pass the Bring Jobs destroy any incentive to work and hire more but the way to ensure that gets accom- Home Act. people. I just don’t know if he doesn’t under- plished is with comprehensive I suggest the absence of a quorum. stand what he’s doing, or just doesn’t care. progrowth tax reform and closing loop- The PRESIDING OFFICER (Mrs. I am taking that right out of a small holes. Let’s extend the current tax SHAHEEN). The clerk will call the roll. businessperson’s letter. Keep that last rates for 1 year, and let’s set up a proc- The assistant legislative clerk pro- line in mind for just a minute. ess to pass comprehensive progrowth ceeded to call the roll. I just don’t know if he— tax reform that lowers rates, closes Mr. HOEVEN. Madam President, I President Obama— loopholes, that is fair, that is simpler, ask unanimous consent that the order doesn’t understand what he’s doing, or just and that will generate revenue to re- for the quorum call be rescinded. doesn’t care. duce our deficit and our debt through The PRESIDING OFFICER. Without I referenced that because the Presi- economic growth rather than through objection, it is so ordered. dent gave a speech last Friday in Roa- higher taxes. The reality is that is the TAX REFORM noke, VA. In his speech, he followed up only way to go—along with reducing Mr. HOEVEN. Madam President, I on his plan to raise taxes on small government spending—that will get rise to speak about progrowth tax re- businesses. I am going to read right our debt and deficit under control and form. One week ago Monday, President from the President’s speech. I think it get our people back to work. To be suc- Obama proposed to raise taxes on over gives insight as to his view of small cessful, this effort needs to be bipar- 1 million small businesses in this coun- business and how our economy works. tisan, and the clock is ticking. try. Even though he said in the past He said: So let’s get started. Let’s give small that we cannot raise taxes in a reces- There are a lot of wealthy, successful business in this country the legal, tax, sion and that higher taxes will hurt our Americans who agree with me—because they and regulatory certainty to encourage economy and hurt job creation, he pro- want to give something back. They know private investment and innovation. posed raising taxes on more than 1 mil- they didn’t—look, if you’ve been successful, That is the American way. That is the lion small businesses across this coun- you didn’t get there on your own. You didn’t real American success story. We can do try. get there on your own. I’m always struck by it, and we need to make it happen now. Last week I came to the floor to talk people who think, well, it must be because I Thank you, Madam President, and I about why that is not the right ap- was just so smart. There are a lot of smart people out there. It must be because I yield the floor. I would also suggest the proach and to discuss the approach we worked harder than everybody else. Let me absence of a quorum. should take, the right approach. I tell you something—there are a whole bunch The PRESIDING OFFICER. The pointed out that his approach—the ad- of hardworking people out there. clerk will call the roll. ministration’s approach—has made our If you were successful, somebody along the The legislative clerk proceeded to economy worse since he took office. line gave you some help. There was a great call the roll. Here are the facts, and they speak for teacher somewhere in your life. Somebody The PRESIDING OFFICER. The Sen- themselves. Today we have 8.2 percent helped to create this unbelievable American ator from Iowa. unemployment. We have had over 8 system that we have that allowed you to Mr. GRASSLEY. Madam President, I thrive. Somebody invested in roads and ask unanimous consent that the order percent unemployment for 41 straight bridges. If you’ve got a business—you didn’t weeks. We have more than 13 million build that. Somebody else made that happen. for the quorum call be rescinded. people who are out of work and another The Internet didn’t get invented on its own. The PRESIDING OFFICER. Without 10 million people who are under- Government research created the Internet so objection, it is so ordered. employed. That is 23 million people that all the companies could make money off FDA INVESTIGATION who are either unemployed or under- the Internet. Mr. GRASSLEY. Madam President, I employed. Middle-class income has de- So that is right out of the President’s come to the floor to address my col- clined from an average of $55,000 down speech in Roanoke, VA, last Friday. I leagues about a Federal agency that to $50,000 since the President took of- think these comments provide real in- has forgotten that this Federal agency fice. Food stamp usage is up. There sight into President Obama’s view of is supposed to be working for the were 32 million food stamp recipients our economy and the role of small busi- American people. This is an agency at the beginning of the Obama adminis- ness in our economy. He says we have that has gotten too big for its britches. tration; today there are 46 million re- all had help in our lives, and that is Some of the officials have forgotten cipients. We have gone from 32 million certainly true. There is no question who pays their salary. people on food stamps to 46 million about that, and I don’t think anyone The Food and Drug Administration is people on food stamps. Home values disputes that. supposed to protect the American peo- have dropped from an average of He makes it clear that he believes ple, except lately the only thing the $169,000 to an average of about $148,000. government, not small business, is the FDA bureaucrats seem to have any in- Let’s talk about economic growth. driver of our economy. He says it is terest in is protecting themselves. Ac- GDP growth is the weakest for any re- government that paves our roads and cording to whistleblowers and pub- covery since World War II. In the last invented the Internet. In essence, it is lished reports in the Washington Post quarter, the rate of growth was 1.9 per- government that made successful peo- and in the New York Times, the agency cent over the prior quarter. There were ple successful and government that in charge of safeguarding the American 82,000 jobs created in the month of makes our economy go. public and providing for the public June. We need 150,000 jobs gained each That is just not right. It is small safety has trampled on the privacy of month just to keep up with population business that makes our economy go. its very own employees. The FDA growth and to reduce the unemploy- It is small business that made our mounted an aggressive campaign ment rolls. economy the envy of the world. It is against employees who would dare to Those are some of the statistics. small business that serves as the back- question its actions and created what When I spoke on the Senate floor last bone of our economy, that employs our the New York Times termed an ‘‘en- week, I also read a letter from one of people, that generates tax revenue to emies list’’ of people it considered dan- my constituents back home who is a build our roads, creates innovation like gerous. It kind of reminds us of Presi- small business owner. He owns an Ace the Internet, and that provides Ameri- dent Nixon and the IRS going after en- Hardware store. In his letter, he stated cans with the highest standard of liv- emies. very clearly and very eloquently that ing in the world. Small business is the The Food and Drug Administration the President’s approach with small engine that drives our economy, and has been spying on this enemies list. business is hurting our economy. I am we need to get it going. We don’t do The FDA has been spying on the per- not going to read the full letter, but I that by raising taxes and growing gov- sonal e-mails of these employees and

VerDate Mar 15 2010 23:59 Jul 17, 2012 Jkt 019060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\CR\FM\G17JY6.043 S17JYPT1 pwalker on DSK7TPTVN1PROD with SENATE July 17, 2012 CONGRESSIONAL RECORD — SENATE S5075 everybody these employees contacted. mismanagement, and threats to the We need answers, and we need an- That includes their protected commu- public safety, and to do that reporting swers now. I have been demanding an- nications even with those of us in Con- without fear of retaliation. The FDA swers for 6 months. For the past 6 gress. knew that contacts between whistle- months, FDA has been telling me to We would not have known the extent blowers and the Office of Special Coun- just be patient. The FDA has been tell- of the spying if internal FDA docu- sel are privileged and confidential, but ing me they have a good story to tell— ments about it had not been released the James Bond wannabes at the FDA and those are their words, ‘‘a good on the Internet, apparently just by ac- just didn’t seem to care what the law story to tell.’’ cident. We would not have known how said. Apparently, though, there is someone the FDA intentionally targeted and In the end, the self-appointed spies in this administration—President captured confidential, personal e-mails turned out to be more like the bum- Obama’s administration—who didn’t between the whistleblowers, their law- bling Maxwell Smart. Along with their want them to say anything for as long yers, and those of us in Congress. own internal memos about spying, the as they could possibly get away with In these internal documents, the fruits of their labor were also acciden- not saying anything. I finally got Com- FDA never wanted the public to see tally posted on the Internet. It is tens missioner Hamburg on the phone in that it referred to whistleblowers as of thousands of pages of e-mails and June of this year. Commissioner Ham- ‘‘collaborators.’’ FDA refers to con- pictures of the whistleblower computer burg personally assured me the FDA gressional staff as ‘‘ancillary actors.’’ screens containing some of the very was going to fully cooperate with my FDA refers to newspaper reporters as same information the FDA bureaucrats investigation. Yet the FDA has pro- ‘‘media outlet actors.’’ These memos were so keen to keep secret. vided me with nothing but misleading make the FDA sound more like the When I started asking questions and incomplete responses. East German Stasi than a consumer about this, FDA officials seemed to suf- The FDA has failed to measure up to protection agency in a free country. fer from a sudden bout of collective Commissioner Hamburg’s pledge of co- At the beginning of Commissioner amnesia. It took them more than 6 operation. The FDA buried its head in Hamburg’s term, she said whistle- months to answer a letter from last the sand in hopes I would lose interest blowers exposed critical issues within January starting my investigation of and go away. They don’t know me very the FDA. That seems to be a very ap- this issue. When I pushed for a reply well. That is not going to happen. proving comment. She vowed to create during those 6 months, FDA told my I don’t care who is in charge of the a culture that values whistleblowers. staff that the response would take time executive branch—Republican or Dem- That appears to be a very approving to make sure it was accurate and com- ocrat—I am going to continue demand- statement. In fact, in 2009 she said: ‘‘I plete. ing answers. When government bureau- think whistleblowers serve an impor- When I finally got the response on crats obstruct and intercept my com- tant role.’’ Friday, it doesn’t even answer the sim- munications with protected whistle- I wanted to believe Commissioner plest of questions, such as who author- blowers, I am not going to stop. When Hamburg when she testified before the ized this targeted spy ring, and isn’t it government bureaucrats stonewall for Senate committee during her con- a coincidence that just Friday, before months on end, I will not stop. When firmation. I wanted to believe her when the New York Times article was going government bureaucrats try and she said she would protect whistle- to come out, they finally answered a muddy the waters and mislead, I will blowers at the Food and Drug Adminis- letter going way back to my questions not stop. I intend to get to the bottom tration. However, the facts now appear of January. Worse than that, though, it of it. very different. is misleading in its denials about in- I will continue to press the FDA In this case, the FDA invaded the pri- tentionally intercepting communica- until we know who authorized spying. vacy of multiple whistleblowers. It tions with Congress. Can my colleagues imagine spying in hacked into the private e-mail ac- When I asked them why they American government, a transparent counts and used sophisticated key- couldn’t just answer some simple ques- government—supposed to be trans- stroke logging software to monitor tions, they told my staff that the re- parent—spying on whistleblowers who their every move online. sponse was under review by the ‘‘appro- are protected by law and who have a When an FDA supervisor was placed priate officials in the Administration.’’ special office set up to protect them, under oath in the course of an equal The nonanswers and the doublespeak and spying on communications be- employment opportunity complaint, would have fit right into some George tween a lawyer and their client? that employee—that supervisor—testi- Orwell novel. Someone within the FDA specifically fied that the FDA was conducting Of course, when my staff dug deeper authorized spying on private commu- ‘‘routine security monitoring.’’ That is and asked if the response was being re- nications with my own office and with entirely false. This monitoring was viewed by the Office of Management several other Members of Congress. anything but routine. It specifically and Budget, the Food and Drug Admin- Someone at FDA specifically author- targeted five whistleblowers. It inten- istration responded: No, it wasn’t being ized spying on private communications tionally captured their private e-mails reviewed by OMB. with Congressman VAN HOLLEN’s office. to attorneys, to Members of Congress, FDA refused to identify who within Someone at FDA specifically author- and to the Office of Special Counsel. the administration was holding up the ized spying on private communications The internal documents showed that FDA’s response to my letter. Now, that with the staff of the Senate Special this was a unique, highly sophisticated, is in an administration that said on Committee on Aging. Someone at FDA and highly specialized operation. January 20, 2009, they are going to be specifically authorized spying on pri- According to the Office of the Inspec- the most transparent in the history of vate communications with the lawyers tor General, the Food and Drug Admin- this country. FDA refused to say how for whistleblowers, and those lawyers istration had no evidence of any crimi- long it had been sitting on that per- are called the Office of Special Counsel. nal wrongdoing by these whistle- son’s desk or why it had been approved These whistleblowers thought the blowers. This massive campaign of spy- by the political officials outside the FDA was approving drugs and treat- ing was not just an invasion of privacy; FDA. Who is this shadowy figure con- ment it shouldn’t. These whistle- it was specifically designed to inter- ducting some secret review of the blowers thought the FDA was caving to cept communications that are pro- FDA’s responses to this Senator’s ques- pressure from the companies who were tected by law. The Office of Special tions? Why was there all of a sudden applying for FDA approval. They have Counsel is an agency created by Con- interest in exerting political control a right to express those concerns with- gress to receive whistleblower com- over the correspondence of this sup- out any fear of retaliation whatsoever, plaints and to protect whistleblowers posedly independent Federal agency? if the law is going to be followed—the from retaliation. The law protects And when we use the words ‘‘inde- law protecting whistleblowers. But communications with the special coun- pendent Federal agency’’ around here, after doing so, two of these whistle- sel as a way to encourage whistle- we mean not subject to political con- blowers were fired, two more were blowers to report waste, fraud, abuse, trol. forced to leave FDA, and five of them

VerDate Mar 15 2010 23:59 Jul 17, 2012 Jkt 019060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\CR\FM\G17JY6.044 S17JYPT1 pwalker on DSK7TPTVN1PROD with SENATE S5076 CONGRESSIONAL RECORD — SENATE July 17, 2012 were subjected to an intense spying With businesses and families lacking families can thrive. However, to judge campaign. any certainty at all about their tax by their single-minded pursuit of tax Senior FDA officials may have bro- rates next year, the President and his increases, President Obama and his lib- ken the law. They authorized the cap- liberal allies have, nonetheless, stead- eral allies appear to value a politics of turing of personal e-mail passwords fastly refused an extension of the 2001 class envy and wealth redistribution. through keystroke logging software. and 2003 tax relief. Having Washington bureaucrats man- That potentially allowed them to log Even worse, they are so committed age the economy in the name of wealth in to the whistleblower’s personal e- to raising taxes on small businesses— equalization is their first priority, re- mail accounts and access e-mails that the same small businesses that must be gardless of any evidence that this tax were never even accessed from a work cultivated to get our economy and job policy undercuts economic growth and computer. Without a subpoena or war- growth moving again—that he and his job creation. rant, that would be a criminal viola- Democratic allies in the Senate have Unfortunately, the President’s eco- tion. put their feet down and are denying tax nomic ethic is significantly hampering After 6 months, FDA finally denied relief to anyone unless they get their our economic recovery with disastrous that occurred. However, that denial way on tax increases. consequences for America’s families. was based on the word of one unnamed And make no mistake about it, in- Today, Ben Bernanke, the Chairman information technology employee in- creasing taxes is what they intend to of the Federal Reserve, testified before volved in the monitoring. We need a do. They intend to do it so they can the Senate Banking Committee. As the more thorough investigation than that. spend more. They live to raise taxes. It Senate’s Democratic leadership and I have asked the FDA to make that is almost as though their only source the President ignore the fiscal cliff, person and several other witnesses of pleasure is hiking taxes. Taking Chairman Bernanke’s words are a som- available for interviews with my staff. money out of the private sector and ber reminder of what we face if we do We will see how cooperative FDA plans controlling it for their liberal agenda not address the fiscal cliff. to be now. I will continue to press the is like some power trip for the left. He testified that the recovery ‘‘could FDA to open every window and every And do not fall for that red herring be endangered by the confluence of tax door. Eventually enough sunlight on fiscal responsibility argument ad- increases and spending reductions that this agency will cleanse it. vanced by my friends on the other side. will take effect early next year if no FDA gets paid to protect the public, If you look at comparable policy be- legislative action is taken.’’ He stated not to keep us in the dark. Secret mon- tween the Hatch-McConnell amend- that the public uncertainty about the itoring programs, spying on Congress, ment and the Democratic leadership’s resolution of these issues is a negative and retaliating against whistle- position, they differ by about $41 bil- drag on the economy, and he concluded blowers—this is a sad commentary on lion for the policy for 2013. That $41 bil- that addressing this cliff ‘‘earlier rath- the state of affairs at the FDA. lion represents 1.1 percent of the spend- er than later would help reduce uncer- I know there are hard-working and ing proposed in the President’s budget tainty and boost household and busi- principled rank-and-file employees at for 2013. The House budget, rejected by ness confidence.’’ the FDA who care very much about our friends on the other side, would re- But instead of addressing these crit- their mission to protect the American duce the deficit by restraining spend- ical economic issues, the Senate spent public from harm. Unfortunately, all ing by $180 billion—more than four another day voting on the same too often those rank-and-file employ- times the deficit reduction that would doomed piece of partisan legislation. ees are unfairly tarnished by others, be achieved through the tax hikes in- Rather than take on the hard work of such as those involved in this spy ring. sisted upon by the Democrats. addressing the fiscal cliff that our This is a sad commentary on Presi- But what does that tax increase economy is approaching, we spent pre- dent Obama’s promise to the American mean in terms of harm to the econ- cious time yesterday debating the DIS- people that this would be the most omy? CLOSE Act. For those who are not transparent administration in history. My friends on the other side of the aware, this is a bill that had one pur- The American people cannot lose faith aisle should consider this: Today, a pose: to discourage political engage- in the FDA. Unfortunately, after this study commissioned by the National ment by President Obama’s opponents. debacle, some of that faith may dete- Federation of Independent Business, It takes a pretty bad bill to unify the riorate. The FDA has a lot of work to the S Corporation Association, and the ACLU; that is, the American Civil Lib- do to restore the public’s trust. U.S. Chamber of Commerce confirmed erties Union, and the NRA against it. I yield the floor and suggest the ab- again that the President’s attempt to But the DISCLOSE Act has brought sence of a quorum. stick it to the rich is going to end up the lion and the lamb together against The PRESIDING OFFICER. The skewering small businesses and the it. clerk will call the roll. families who work for them, or would It is bad enough that we spent all of The legislative clerk proceeded to like to work for them. yesterday debating a bill that has no call the roll. This report, published by Ernst & shot of becoming law. It is even worse Mr. HATCH. Madam President, I ask Young—one of the great accounting that we devoted nearly an entire day unanimous consent that the order for firms in this country—and authored by today to debating the same bill again. the quorum call be rescinded. Dr. Robert Carroll and Gerald Prante, In the meantime, the American people The PRESIDING OFFICER. Without found that if the President gets his continue to suffer under this weak objection, it is so ordered. way, the economy will be 1.3 percent economy. And to defend their lack of THE ECONOMY smaller than it would be and there action, the President and his allies Mr. HATCH. Madam President, the would be 710,000 fewer jobs. have engaged in some revisionist fiscal American people are struggling. Our Study after study confirms that the history. economy is barely keeping its head President’s policies prioritize spread- I want to begin by correcting the above water. Millions of citizens re- ing the wealth around over growing the record on this revisionist fiscal his- main out of work. President Obama has economy and creating jobs. tory. I will follow that with a discus- spent trillions in taxpayer dollars, and The Vice President spoke yesterday sion of the other side’s insatiable appe- there is nothing to show for it. He about the values of Republicans and tite for taxes and spending. talks about investments—investments the values of Democrats. Naturally, he We have recently been debating in infrastructure, in roads, and in spoke pejoratively about Republican whether we should adopt the Presi- bridges—while he has spent trillions. values. I disagree with him, naturally, dent’s policy to raise taxes on small Where are the roads? Where are the on his negative assessment, but I do business. We have also discussed the bridges? Where is the new electrical agree that there is a clear distinction— tax monster that is stalking the Amer- grid? a clear choice—between the values em- ican people under the guise of This reckless spending is a sin of braced by Republicans and Democrats. ObamaCare. In both of these debates, commission. But the administration’s Republicans want to grow the econ- we have heard a good deal of fictional sins of omission are perhaps worse. omy and create jobs so that American accounting.

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My friends on the other side might be Perhaps ironically President Reagan My friend and colleague, the former surprised to learn that the answer is was responding to President Carter’s chairman and ranking member of the not primarily tax relief. Higher spend- comments on a national health insur- Senate Finance Committee, Senator ing accounts for 44 percent of the ance proposal. President Reagan was GRASSLEY, came up with this thumb- change. Higher spending, no question more right than even he knew. nail description of this creative histor- about it. Getting back to taxes and the role of ical account: Let me repeat that. Higher spending government, President Reagan was es- First, all of the so-called good fiscal was the biggest driver of the deficits of sentially making the same point this history of the 1990s was derived from the last decade. chart shows, which is liberal logic. No the partisan tax increases of 1993. That Economic and technical changes in matter what problems face the left, the is their argument. And second, all of the estimates accounted for 28 percent answer is always the same solution. the supposedly bad fiscal history tak- of the change. So all tax relief, includ- Health care is too expensive; raise ing place within the past 10 years is to ing the tax relief passed by Democratic taxes. Spending is out of control; raise be blamed on the bipartisan tax relief Congresses and tax relief signed into taxes. Gas prices are too high; raise plans originally enacted during the last law by President Obama, accounts for taxes. Too many people are unem- administration and continued under 28 percent. The tax relief legislation, ployed; raise taxes. It is a broken the present administration. much maligned by our friends on the record. You could go one step further and, as other side, accounts for less than half Again, no matter what problem faces a policy premise, refine that thumbnail of the fiscal change attributable to tax the left, the answer is always the same. description to two short sentences. relief. Specifically, the bipartisan tax More taxes are always needed in order First sentence: Lower taxes are bad. relief bills of 2001 and 2003, including to increase the size and scope of the Second sentence: Higher taxes are the AMT patches in those bills, ac- government in people’s lives. The Supreme Court recently affirmed good. counted for 13.7 percent of the fiscal the point of this chart—the liberal so- Not surprisingly, these revisionist change of the last decade. lution to rising health care costs and historians support higher taxes and That is not ORRIN HATCH speaking, it is the nonpartisan congressional score- lack of coverage were tax increases. higher government spending. Not sur- The propensity of President Obama keeper, CBO. prisingly, the revisionists oppose cut- and his ideological allies to raise taxes So how much of the bad fiscal history ting taxes and cutting government is nothing new, and it is widely ac- of the last decade is attributable to tax spending. knowledged as well. Back in August of relief? Twenty-eight percent. That is I direct folks to the Senate floor re- 2008, David Leonhardt wrote a piece in it. That includes the tax cuts in par- marks I made on Valentine’s Day last the New York Times that quoted then- tisan bills such as the stimulus. If you year. It is important to reiterate the candidate Obama. It is titled isolate the bipartisan bills that are the main point of those remarks. Our ‘‘Obamanomics,’’ and here is what he object of sharp criticism from our friends on the other side assert that said: raising taxes was the key to a growing friends on the other side—the 2001 and If you talk to Warren, he’ll tell you his economy in the 1990s, and raising taxes 2003 tax cuts—you will find that those preference is not to meddle in the economy could work this magic again. bills account for only 13.7 percent of at all—let the market work, however way A quick look at the data from the the fiscal change in the last decade. it’s going to work, and just tax the heck out 1990s shows this assertion can be sum- Abnormally low levels of spending of people at the end and just redistribute it. marily dismissed. contributed significantly to the sur- That way you’re not impeding efficiency, I have a chart. According to the Clin- pluses of the 1990s. Abnormally high and you’re achieving equity on the back end. ton administration’s Office of Manage- spending drove the deficits of the past In order that people may peruse the ment and Budget or OMB, the impact decade. Abnormally high spending is whole story, I ask unanimous consent of the much bragged about tax hike bill driving our current deficits, and it will that the Internet Web address to Mr. of 1993 was minimal. The Clinton ad- drive our future deficits as well. Leonhardt’s piece be printed in the ministration OMB concluded that the To my friends on the other side, if we RECORD. 1993 tax increase accounted for only 13 focus instead on hiking taxes way There being no objection, the mate- percent—as you can see, the green bar above their historic averages, we are rial was ordered to be printed in the on the circular chart—the 1993 tax in- misleading and mistreating the prob- RECORD, as follows: crease accounted for only 13 percent of lem. The reason for our previous sur- [From the New York Times, Aug. 24, 2008] deficit reduction between 1990 and 2000. pluses was low spending, and the rea- OBAMANOMICS Thirteen percent puts the 1993 tax in- son for our current deficits is high (By David Leonhardt) crease behind other factors, such as de- spending. We cannot tax our way to fis- http://www.nytimes.com/2008/08/24/ fense cuts, other revenue, and interest cal health. magazine/24Obamanomics-t.html savings. The data clearly shows that I now turn to a second issue that de- Mr. HATCH. For those of us not in- tax increases did not drive the deficit mands a response. It has a corollary of vited to the local Dairy Queen for a reduction. the theme underlying the revisionist Blizzard with the oracle of Omaha, the As a matter of fact, only 13 percent fiscal history I have discussed. It is the Warren cited in this quote is none of the positive fiscal history of the insatiable appetite for taxes and spend- other than Warren Buffet. He is a 1990s is due to the 1993 tax increase. ing that we see from the President and friend of mine—you know, the same That is it—13 percent. It is right here my friends on the other side. Buffett from which the Buffett rule or on the green part of the chart. Last week, President Obama once Buffett tax is named. Well, what about the last decade? again called for tax increases in order Setting aside the ridiculous notion The period of 2001 to 2010 saw a lot of to fund his so-called progressive vision that Americans are as oblivious to deficits. From what you hear from our of government. I am specifically speak- taxes as cattle are to the purposes of friends on the other side, those deficits ing of the President’s latest proclama- the slaughterhouse they are being led are a direct result of the tax relief that tion that the tax relief of 2001 and into, this quote very accurately illus- benefited virtually every American 2003—tax relief supported by the Presi- trates the liberal attitude toward taxpayer. Yet CBO data tells us a dif- dent and 40 Senate Democrats in 2010— taxes, which is that they always need ferent story. should not be extended for people earn- to go up. On May 12, 2011, CBO released a recap ing $250,000 or more a year. This was This chart illustrates government of the changes over the last decade. At breathlessly reported in some quarters revenue as a percentage of GDP. Look

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There are some fluctuations, but over Government, in the CBO document I For President Obama, that someone the last 40 years, revenues have been cited earlier, it is projected that debt else is, in his words, ‘‘the rich,’’ which roughly stable. We can see in the past will eventually reach 200 percent of our includes all these small businesses that 10 years a dip around the time the so- economy—that means of the GDP— are formed in subchapter S corpora- called Bush tax relief was enacted, fol- that health care spending will rise to tions and other passthrough entities, lowed by a rebound as the tax cuts pro- record levels, and that Medicare and including partnerships, LLCs, and so moted growth, followed by a dip in rev- Social Security are on a path to dis- forth—small businesses that are vital enues as the recession set in. We can aster. to our economic recovery. see that it came down around 2000, Getting back to the chart, the com- Unfortunately, that approach is just went up a little more, and then came bined State and Federal spending and as realistic as the cartoon I am using down again. revenues—the purple line—what I find to illustrate my point. While many of According to the CBO, as of June 5, particularly striking is the large gap us may not while away our leisure time 2012, Federal revenues averaged 17.9 between the spending and revenue down at the club playing whist with percent of GDP over the past 40 years. lines. Once again, as CBO has indi- monocled robber barons, a lot of us The same CBO report—the 2012 long- cated, that gap is likely to increase to probably know of small businesses in term budget outlook—forecasts that more than twice the size of our whole our communities that employ us or our under current law, Federal revenues economy. We are already at 103 percent neighbors and provide goods and serv- will be 18.7 percent of GDP next year in of GDP. ices that consumers want and our econ- 2013 and will be 23.7 percent of GDP in If I recall correctly, Spain is a little omy demands. 2037. more than half of that—around 70 per- When liberals are talking about this Somebody could say that current law cent. Yet Spain is considered in real guy in the top hat with the monocle, is not realistic and some tax provisions trouble in Europe. Once again, as CBO they are talking about the hard-work- that are scheduled to expire will likely indicated, that gap is likely to increase ing small business owner. So when be extended. To account for this, CBO to more than twice the size of our President Obama talks about increas- has an alternative fiscal scenario whole economy. ing taxes on the rich, he is talking which assumes the extension of certain Finally, here is a chart of Federal about increasing taxes on around tax policies through 2022. and State government spending as a 940,000 small business owners who are CBO assumes this would lead to the percentage of GDP. Look at this. already in the top two tax brackets. A Federal revenues increasing to 18.5 per- I apologize for being repetitive, but if lot of people who would not pay the cent of GDP in 2022, with that level there is one message that should be Obama tax increase work for someone being preserved going forward. We defi- taken from my remarks today, it is one who would be hit by it. What we have nitely know that President Obama that I and others have been making a seen is that President Obama and his allies want to increase the size of gov- doesn’t support the assumptions that long time. That message is that the ernment and, in part, they want to are part of CBO’s alternative fiscal sce- United States doesn’t have a tax prob- fund this expansion with higher taxes nario because earlier this week he lem; it has a spending problem. on so-called rich people. called for taxes to increase on hundreds We keep hearing that Republicans I want to conclude my remarks with of thousands of small businesses—al- are too beholden to an antitax ide- a question. If we are getting more gov- most 1 million small businesses and ology, and that any resolution of our ernment, what are we getting less of? I business owners. debt crisis will require that Repub- am going to go back to the chart I dis- The question remains, Why do my licans get with the program and ac- played earlier of government spending friends on the other side think taxes knowledge the need for increased taxes. As I have shown, this characteriza- as a percentage of GDP. always need to go up? The answer to This one right here. We can see gov- tion of our fiscal and political prob- this question is more complex than I ernment spending is going up, but what lems is not close to half right. By far, am going to discuss right now, but part is going down as a result? What does the greatest cause of our fiscal short- of the answer is that taxes need to go the area on the top of that chart, which comings is increased spending. up in order to increase the size and is diminishing, represent? This is a Our increasingly precarious fiscal sit- scope of government in the lives of all subject that lends itself to prolonged uation did not arise from a dramatic Americans. discussion, but for one answer we can Here is another chart that compares decrease in taxes but, rather, is being get back to Mr. Leonhardt’s piece in State and Federal Government reve- caused by a dramatic increase in Fed- the New York Times. This is the same nues, which we have just examined, eral spending. There is a continual ef- piece from August 24, 2008, and con- with total government spending. We fort underway to deny this reality but tains a quote from then-candidate will notice Federal Government spend- reality it remains. Obama critiquing his friend Warren’s ing is the purple line on the top most I have a chart that summarizes the latest tactic being used to convince argument. of the way through except where it President Obama said: intersects with the red line, which is people that exploding government spending is not the disaster it appears I do think that what the argument may total government revenue. All of a sud- miss is the sense of control that we want in- den total government revenue goes to be, and this is called the rich guy dividuals to have in determining their own down, but total spending seems to go chart. As John Stossel has pointed out, career paths, making their own life choices up between 2005 and 2010. people like free stuff. The problem with and so forth. And I also think you want to We can see that over the past 40 free stuff from the government is that instill that sense of self-reliance and that years it looks like spending has been nothing is free. To quote John Stossel, what you do will help determine outcomes. inclined to move up, but only in the ‘‘It’s an Uncle Sam scam.’’ Stossel was Let me refer to the Obamanomics II past few years does it jump to unprece- specifically discussing the ability of chart. If candidate Obama was in the dented heights. Virtually every action people to exploit a tax credit for elec- midst of an internal struggle over the taken by the Obama administration tric vehicles in order to acquire golf appropriate role of government back in and Democratic Senate leadership has carts, but the principle applies to any 2008, that struggle is over—self-reliance amounted to an increase in the size and instance where the government sup- lost and taxing the heck out of people scope of government. posedly provides something for noth- and redistribution won. It runs through The continuing government takeover ing. This is where the cartoon of the the theme of his revisionist fiscal his- of health care is just the single most rich guy behind me comes in. Goodies tory, and it is the ethic underlying the

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He talked ple in the name of redistribution: I would say to my colleagues on the about a shallow recession occurring ‘‘There you go again.’’ other side of the aisle, many of whom next year and the endangerment of the I suggest the absence of a quorum. I think generally believe in Keynesian recovery that is under way if we have The PRESIDING OFFICER. The economics, that the average family in this confluence of events happen at the clerk will call the roll. South Dakota could do more to stimu- end of the year. The assistant bill clerk proceeded to late our economy and create new em- He went on to say: call the roll. ployment by keeping their $3,187 and These estimates do not incorporate the ad- Mr. THUNE. Mr. President, I ask spending it as they see fit, not as ditional negative effects likely to result unanimous consent that the order for Washington sees fit to spend it on their from public uncertainty about how these the quorum call be rescinded. behalf. matters will be resolved. The PRESIDING OFFICER (Mr. BEN- Taxmageddon is a very apt descrip- In other words, the economic uncer- NET). Without objection, it is so or- tion that has been applied to this fiscal tainty that is associated with all these dered. cliff when you consider the impact of things happening at the end of the year Mr. THUNE. Mr. President, one of these tax increases not just on indi- are impacting the economy today as the foremost threats to our economy is vidual families but on our entire econ- people are looking at how they are the fiscal cliff. This is an issue my Re- omy. Until recently we could just spec- going to make investment decisions, publican colleagues and I have been ulate about the impact of these tax in- and that our economy is likely to expe- talking about for several months now, creases on our fragile economy, but the rience negative effects from that public calling for more transparency in the magnitude of the damage was in dis- uncertainty above and beyond the di- sequestration that will occur at the pute. Not anymore. Last month, the rect impacts that CBO has incor- end of the year, a replacement of the Congressional Budget Office gave us porated into its analysis. defense sequester, and actions to pre- the most definitive estimate yet of the So let’s be very clear about what the vent a massive tax increase on the impact of the nearly $1⁄2 trillion of tax fiscal cliff means. We are not talking American people. increases that would hit in 2013 when about a slight slowdown of a few tenths Senate Democrats—who have only combined with the more than $100 bil- of a percent. What we are facing is the recently acknowledged the looming fis- lion of spending cuts that would occur difference between positive growth on cal cliff—are now threatening to go under the sequester I mentioned ear- the one hand—which will mean more over the cliff unless Republicans agree lier. jobs and higher incomes—and a poten- to increasing taxes on America’s small The Congressional Budget Office tial recession on the other hand. We businesses during this difficult eco- projects the combination of the mas- can, and must, provide Americans some nomic period. sive tax increases and the sequester certainty as to what their taxes are Think about that. Senate Democrats will result in real GDP growth in cal- going to be next year. are willing to put our economy at seri- endar year 2013 of only one-half of 1 The House of Representatives has al- ous risk and our national security in percent. Think about that, one-half of 1 ready agreed to hold a vote to extend jeopardy unless Republicans agree to a percent. We are right now growing all of the existing tax rates before the massive tax increase on America’s somewhere—they think—in the range August recess in order to avert the fis- small businesses. of 1.9 percent or 2 percent this year. cal cliff. They are going to act on this The headline from a news story in But next year, the real GDP growth sometime before we go out in August the Washington Post from over the would amount to only 1⁄2 percent. And to extend all of the rates before the end weekend says, ‘‘Democrats Threaten the picture is even bleaker if you con- of the year so there is certainty for To Go Over Fiscal Cliff If GOP Fails To sider that CBO projects that the econ- those who are making economic deci- Raise Taxes.’’ They quote, ‘‘Senior omy will actually have a decrease in sions. Democrats say they are prepared to GDP of 1.3 percent in the first half of Unfortunately, thus far the Senate weather a fiscal event that could 2013. and the Senate Democratic leadership plunge the nation back into recession,’’ So you have the Congressional Budg- has only agreed to hold a vote on a if the New Year arrives without an ac- et Office saying that over the entire plan to raise taxes on nearly 1 million ceptable compromise—which they have year of 2013, the likelihood is we will small businesses. This tax increase on defined to be a major tax increase on grow at one-half a percentage point if individuals earning more than $200,000 small businesses in this country. we don’t address the fiscal cliff. But in a year and families making more than Think about the impact of that and the first half of next year, we actually $250,000 a year will raise taxes on more what that means to people across this see a decrease of 1.3 percent of eco- than half of all income in America country. We have had now, for the last nomic growth. According to CBO, a re- earned by S corporations, sole propri- 3 years, a complete failure in the Sen- duction of 1.3 percent of economic etorships, LLCs, partnerships, and ate to produce a budget. We are now growth in the first half of next year other passthrough businesses that pay faced with this fiscal cliff which con- would ‘‘probably be judged to be a re- their taxes at the individual rates. sists of the sequestration, the across- cession.’’ That is according to the Con- A point of clarification: That applies the-board cuts that would occur early gressional Budget Office, which is the to a lot of mom-and-pop businesses in next year if nothing is done to prevent nonpartisan authoritative referee we this country. We are talking about them, the tax hikes, and we are going use to evaluate the impact of the that restaurant owner, that elec- to reach the debt limit, all threatening spending and debt tax issues. trician, many of whom are organized in our economy in an already anemic re- This morning, the Chairman of the the fashion in which their income flows covery. Federal Reserve Board of Governors, through their individual tax return and It is hard to overstate the magnitude Ben Bernanke, testified before the Sen- they pay at the individual tax rate. of the tax increases that are going to ate Banking Committee, and he said: The Joint Committee on Taxation has hit our economy starting next year if Fiscal decisions should take into account estimated that the number of busi- we don’t act. Over the next 10 years, the fragility of the recovery. That recovery nesses that would be impacted by that this tax increase would result in nearly could be endangered by the confluence of tax is 940,000. So almost 1 million small increases and spending reductions that will $4.5 trillion in new taxes on American take effect early next year if no legislative businesses would see their taxes go up families and entrepreneurs. What does action is taken. The Congressional Budget as a result of the fiscal cliff and tax that mean to the average family in this Office has estimated that if the full range of rates expiring at the end of the year for country? The Heritage Foundation re- tax increases and spending cuts were allowed those individuals who are making more

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So we are ing thing about this debate is that 2 fortunate. talking not just about the small busi- years ago the President of the United I hope folks will walk back from that nesses that are going to be faced with States said that raising taxes would position, walk back from those re- higher taxes, but we are also talking strike a blow to the economy. That was marks, and enter into a discussion about a huge portion of the American at a time when we had 3.1 percent eco- about how we might be able to provide workforce in this country. Twenty-five nomic growth. We now have, as I said, the necessary economic certainty for percent of the employees in this coun- according to the estimates, 1.9 percent our job creators and our small busi- try work for those small businesses economic growth for the first quarter nesses, how we can get people back to that, according to the Joint Committee of this year, and expectations for the work, how we can grow and expand this on Taxation, will see their taxes go up second quarter have already been economy. as a result of the President’s proposal. downgraded. So with 41 straight Frankly, extending the tax rate We essentially have in front of us months of unemployment above 8 per- should only be the first part, the short- term solution. The long-term solution three choices: cent, 23 million Americans under- is to get tax reform, comprehensive tax We can let all the tax rates expire, employed or unemployed, and the reform. People on both sides of the which we know is going to plunge our weakest recovery literally since the aisle agree with that. If we could enter economy back into a recession; we can end of World War II, now is not the into a discussion about how we could do what our Democratic colleagues time to raise taxes. want to do, which is to raise taxes on Who in their right mind would think reform our Tax Code in such a way that it broadens the tax base, lowers the successful small businesses and entre- it would make any sense at all to raise rates, does away with loopholes and de- preneurs, slowing our economy even taxes when you have an economy that ductions, coupled with entitlement re- further and risking—according to the is growing at such an anemic rate, par- form—that we all agree has to be dealt Congressional Budget Office and the ticularly given the fact that 2 years with or we are going to continue to see Chairman of the Federal Reserve ago, when we had more robust eco- the country on a fiscal trajectory that Board—a recession; or, we could do nomic growth, the President said at is completely unsustainable over time, what the House of Representatives will that time that it would strike a blow is going to lead to the situation we see soon pass and what I would suggest, to our economy if we raised taxes. Here many European countries dealing with and that is we can prevent a tax in- we are with economic conditions that today—that is what we ought to be fo- crease from hitting anyone and give are much worse, circumstances that cused on. the lackluster economic recovery at have deteriorated since then, and he is We ought to be providing certainty least a chance to gain some steam. proposing a tax increase on 1 million to our businesses, extending rates at That is what we ought to do. We small businesses that will have a ripple least for now until such time hopefully ought to do what the House of Rep- effect all across our economy and hurt next year when we all agree we need to resentatives is going to do, and that is job creation at a time we cannot afford sit down and solve this tax mess we to extend the rates for a year so that that. have in this country, this Tax Code people in this country have some cer- There was another study, an analysis that has become way too complicated, tainty as to what their tax rate is that came out today done by Ernst & and come up with something that is going to be at the end of the year. Young in which they analyzed the tax more simple, more clear, more fair, and I hope my colleagues here in the Sen- hikes that would occur on small busi- something that makes us more com- ate—and the Senate Democrats in par- ness next year and came to the conclu- petitive in the global marketplace. ticular—will realize the severity of the sion that it would cost 700,000 jobs in Right now, we are losing to a lot of fiscal cliff, and come to the table to our economy, that it would cost us 1.3 countries around the world simply be- prevent this massive tax increase and percent of economic growth—which is cause we have a tax code that makes the unbalanced and troubling cuts that again consistent with what the Con- American businesses noncompetitive in will occur to our national security if gressional Budget Office has said—and the international marketplace. we don’t take steps to avert this fiscal that it would reduce wages to people in Tax reform, entitlement reform, a cliff. this country by 2 percent. comprehensive energy policy, regu- We have to prevent the dangerous So you now have the Ernst & Young latory reform—it is not that hard to fix cuts to our national defense that are study out there which suggests that this if we have the will, the political scheduled to go into effect under se- not only does this impact the small will to do it. But we cannot start by questration by finding savings else- businesses out there that are going to saying to small businesses in this coun- where in the budget. In order to do see their taxes go up, but it puts at try that we are going to raise your that, we need a detailed plan from the risk and in jeopardy jobs for hard- taxes next year, run the risk of plung- administration as to how they plan to working Americans and a wage base ing the country into a recession and in- implement the sequester. that would actually shrink if, in fact, creasing the number of people in this Members of Congress on both sides of we drive the car over this fiscal cliff. country who are unemployed. the aisle have called for more trans- We cannot afford to do that. It is ir- That is the exact wrong prescription. parency on the sequester from this ad- responsible to have people out there We ought to be providing certainty, ex- ministration, but they have so far saying that they are so anxious to tending the rates, and getting into a failed to produce a plan. That is simply prove some point or to win some argu- discussion and hopefully action on leg- unacceptable. I will continue to work ment on raising taxes that they are islation that would reform the Amer- to see that a requirement be enacted so willing to see this country run the risk ican Tax Code to make us more com- the administration will finally be of plunging into a recession and raising petitive in the world, do away with the transparent with the American people the number of people who are unem- costly, overreaching, excessive, and and give all Members of Congress a ployed in this country. It really is. burdensome regulations that are mak- clear idea as to where the cuts are I have to say that when I saw some of ing it more difficult and more expen- going to be applied. the remarks and some of these stories sive to do business in this country; an Our economy is weak. We know that and some of the reporting about state- energy plan that makes sense, that re- growth in the first quarter was a mere ments that are being made by our col- lies upon American sources of energy; 1.9 percent. Expectations for the second leagues on the other side and Members and a spending plan, a budget—some- quarter have been downgraded. We of their staff with regard to the fiscal thing the Senate has not done now for have witnessed now for 41 straight cliff and the willingness on the part of 3 years, an actual budget. Lo and be- months unemployment above 8 per- many of our colleagues to suggest that hold, go figure that we could actually

VerDate Mar 15 2010 00:21 Jul 18, 2012 Jkt 019060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\CR\FM\G17JY6.052 S17JYPT1 pwalker on DSK7TPTVN1PROD with SENATE July 17, 2012 CONGRESSIONAL RECORD — SENATE S5081 do a budget in this country that puts speak. There are still some at the risk tion policy is lawful and appropriate. us on a more sustainable fiscal path by of deportation. Throughout history, all governments— reforming entitlement programs, that That is why the Obama administra- and our Federal Government—have had will actually save Social Security and tion decision a few weeks ago to stop to decide whom to prosecute and not to Medicare for future generations of the deportation of young people who prosecute. It is called prosecutorial Americans. That is the long-term pre- would be eligible for the DREAM Act discretion. It is based on law enforce- scription for what ails America. But was the right thing to do. The adminis- ment priorities and resources. Every certainly in the short term it makes tration says we will allow these immi- administration, Democratic and Re- matters much, much worse when we grant students to apply for a form of publican, has stopped deportations of talk about piling a tax increase on the relief known as deferred action that low-priority cases, as they should. very people we are looking to, to create puts their deportations on hold and al- Just last month, the Supreme Court jobs and get this economy back on lows them, on a temporary renewable reaffirmed that the Federal Govern- track. basis to live and work legally in Amer- ment has broad authority to decide I hope this Congress will come to its ica. I strongly, strongly support this whom to deport. Justice Anthony Ken- senses about this and that we will vote decision. I think it was a humane deci- nedy, appointed by George H.W. Bush, down any proposal that would raise sion by the President of the United wrote the opinion for the Court. This is taxes on hard-working small businesses States on behalf of these young people. what he said: and entrepreneurs in this country and When the history of the civil rights A principal feature of the removal system instead give them the certainty they era we have lived through since the is the broad discretion exercised by immigra- need for the months ahead, until such 1960s is written, this will be an impor- tion officials . . . Discretion in the enforce- time as we can deal with the issue of tant chapter. The administration’s de- ment of immigration law embraces imme- tax reform. portation policy has strong bipartisan diate human concerns. Unauthorized workers I yield the floor. I suggest the ab- support. It was 2 years ago that Repub- trying to support their families, for example, likely pose less danger than alien smugglers sence of a quorum. lican Senator RICHARD LUGAR of Indi- or aliens who commit a serious crime. The PRESIDING OFFICER. The ana joined me in a letter to the Presi- clerk will call the roll. dent asking me to do this. Last year, The administration’s policy is not The assistant legislative clerk pro- Senator LUGAR joined me, along with just legal, it is realistic and smart. ceeded to call the roll. 22 other Senators, to sign a letter to Today there are millions of undocu- Mr. DURBIN. Mr. President, I ask the President asking the same thing, mented immigrants in the United unanimous consent that the order for and what do the American people think States. It is physically and literally the quorum call be rescinded. about President Obama’s decision on impossible to deport them. So the De- The PRESIDING OFFICER. Without the DREAM Act students? It turns out partment of Homeland Security has to objection, it is so ordered. that 64 percent of likely voters—in- decide priorities. Shouldn’t the highest Mr. DURBIN. Mr. President, I ask cluding 66 percent of Independents— priority be to deport those who are consent to speak as in morning busi- support the policy, compared to 30 per- most dangerous to the United States? I ness. cent who oppose it. think even the Senator from Iowa The PRESIDING OFFICER. Without Earlier, my colleague and friend from would have to concede that point. The objection, it is so ordered. Iowa Senator GRASSLEY gave a speech Obama administration has made that THE DREAM ACT on the Senate floor about this decision its priority. Mr. DURBIN. Mr. President, 11 years by the President. At one point in time, Senator GRASSLEY calls the adminis- ago I introduced the DREAM Act to Senator GRASSLEY was a cosponsor of tration’s deportation policy an am- allow a select group of immigrant stu- the DREAM Act. We wouldn’t know it nesty. That is not right. The DREAM dents with great potential to con- from his speech today. He has changed Act students will not receive perma- tribute more fully to America. The his position on this bill just like so nent legal status or citizenship under DREAM Act said that in order to qual- many other Republicans. Let me take a the President’s policy. They have tem- ify, they had to earn their way to a few minutes to respond to his specific porary renewable legal status. It is legal status and they had to have come points. temporary renewable legal status. to the United States as children, be He claimed the President’s policy to During his speech, Senator GRASSLEY long-term U.S. residents, have good not deport the DREAM Act students is read a quote from an interview the moral character, graduate from high going to hurt the American economy. I President gave last year to support his school, and agree to serve in our mili- couldn’t disagree more. Granting de- claim that the President had changed tary or at least complete 2 years of col- ferred action of DREAM Act students his position on the DREAM Act, but he lege. will make us a stronger country giving only read part of the quote. Here is These young people literally came to these talented immigrants a chance to what Senator GRASSLEY read: the United States as infants and chil- be part of America and its future. This notion that somehow I can just dren. They grew up in this country. Studies have found DREAM Act stu- change the law unilaterally is just not true They went to school with our kids. dents can contribute literally trillions . . . the fact of the matter is there are laws They are the valedictorians, the ath- of dollars to the U.S. economy given a on the books that I have to enforce. And I letes, and even the ROTC leaders in chance to be a part of it. We are not think there’s been a great disservice done to the cause of getting the DREAM Act passed schools across America. They did not talking about importing new foreign and getting comprehensive immigration make the decision to come here; they workers into the United States to com- passed by perpetuating the notion that were just kids. Their parents made the pete with Americans, we are talking somehow, by myself, I can go and do these decision. As Homeland Security Sec- about taking young people who are things. It’s just not true. retary Janet Napolitano said, immi- educated in our schools at our expense, That is what Senator GRASSLEY read. grants who were brought here illegally trained and ready to give something to Here is the rest of the quote. as children ‘‘lacked the intent to vio- America and giving them a chance. What we can do is prioritize enforcement— late the law.’’ It is not the American They are going to be tomorrow’s doc- since there are limited enforcement re- way anyway to punish children for the tors, engineers, teachers, and nurses. sources—and say, we’re not going to go chas- wrongdoing of their parents. We shouldn’t squander their talents ing after this young man or anybody else I am going to continue to work on and all the years we invested in edu- who has been acting responsibly, and would this DREAM Act. It has been 11 years. cating them by deporting them at this otherwise qualify for legal status if the I will work on it as long as I have to to important point in their lives. DREAM Act passed. get it done; it is that important. But Senator GRASSLEY said President That is what the President said. I the young people who are eligible, who Obama ‘‘circumvented Congress to sig- wish Senator GRASSLEY had read that would be eligible for it, cannot wait nificantly change the law all by him- in the RECORD. The President has done any longer. Many have already been de- self.’’ With all due respect, I don’t what he has the authority to do as our ported to countries they never remem- think that is how it happened. The Chief Executive Officer to exercise bered and with languages they do not Obama administration’s new deporta- prosecutorial discretion.

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Senator pleased to honor the 125th Anniversary the Master of Architecture Program at of Thompson-Markward Hall, which GRASSLEY should know that, and he UCLA. She was the only Latino stu- was formerly known as the Young shouldn’t question it absent evidence dent in the program. She struggled fi- to the contrary. Women’s Christian Home. Many young nancially. At the time, she had to eat women working as interns or beginning I might say it is sad we have reached at the UCLA food bank. Because she this point that so few Republicans staffers, including many from my of- couldn’t afford housing near the cam- would stand for these young people. fice throughout the years, have found a pus, she spent many nights in a sleep- safe place to live and meet friends as There was a time when Senator HATCH ing bag on the floor of the school’s was the lead sponsor in this bill, and I they establish their professional ca- was begging him to cosponsor it. Then printing room. reers. The Thompson-Markward Hall, it reached a point where he only voted Last year, Maria received her mas- located across from the Hart Senate for it, and then it reached a point ter’s degree in architecture and urban Office Building on Capitol Hill, pro- where he voted against it. design. She said: vides a valuable service to young Senator GRASSLEY has voted for this women working in Washington and our bill in the past too. In 2006, when the I grew up believing in the American dream Congressional community. Its remark- and I worked hard to earn my place in the Republicans lost control of Congress, able story is one very much worth country that nurtured and educated me. . . . sharing. the DREAM Act passed the Senate out Like the thousands of other undocumented of an amendment to the comprehensive In 1833, Mrs. Mary G. Wilkinson rec- students and graduates across America, I am ognized the need in the District of Co- immigration bill 62 to 36. There were 23 looking for one thing, and one thing only: Republicans who voted for it. Unfortu- the opportunity to give back to my commu- lumbia for suitable lodging for young nately, the Republican leaders in the nity, my state, and the country that is my ladies of good character and meager House refused to take up that bill in home, the United States. means. She vowed that there should 2006. Republican support for the someday be a home for young women I ask my colleagues who are critical DREAM Act has diminished over the coming alone to Washington seeking of the DREAM Act and President years. I have to say I noted the lack of employment, where they could be pro- Obama’s new policy: Would you prefer volume and firepower in criticizing the tected and cared for until they became that we deport Maria Gomez back to President on this DREAM Act decision. established in the community. She I think many of our Republican col- Mexico at this point in her life, a coun- began what developed into the Young leagues realized the American people try that she has not lived in since she Woman’s Christian Home by housing do support this two to one, and it is the was a small child? She grew up here. two such young women in her home. right thing to do. She has overcome amazing odds to be- In 1887, the Young Woman’s Christian I am going to do what I have done on come successful. This determined Home was chartered by Congress and 48 other occasions and try to make this young woman can make America a bet- incorporated ‘‘to provide a temporary DREAM Act discussion more than an ter nation. home for young women coming to and abstract conversation. I wish to make Thanks to President Obama’s new being in the District of Columbia, who sure people understand who is involved policy, Maria is going to be able to shall, from any cause, be in want of in these decision processes. work. I hope she will be able to get a li- and willing to accept temporary home, This is a photograph of Maria Gomez. cense as an architect in her State. A care and assistance . . .’’ By 1890, the Home was receiving an annual appro- Her parents brought her from Mexico future President could change this pol- priation of $1,000 from Congress. to Los Angeles when she was 8 years icy so Maria’s future is still in doubt Over the years, the Young Woman’s old. She started school in the third because we haven’t enacted the Christian Home underwent renovations grade with English as a second lan- DREAM Act. Maria is not the only one. and changed locations. In 1931, Mrs. guage. By the time she was in sixth There are tens of thousands similar to Flora Markward Thompson, a devoted grade, 3 years later, she was an honor her. student. Life Member of the Board of Trustees, In middle school, Maria discovered The DREAM Act would give Maria, passed away, leaving instructions for art and architecture. She began her and others similar to her, the oppor- the executors of her estate to establish dream of becoming an architect. In tunity to be our future architects, en- a suitable memorial to her mother and high school, Maria was active in com- gineers, teachers, doctors, and soldiers. her husband. The executors decided munity service and extracurricular ac- Today, I again ask my colleagues to that the most suitable memorial could tivities, captain of the school spirit support the DREAM Act. The Presi- be entrusted to the Young Woman’s squad, president of the garden club, dent’s new deportation policy is a step Christian Home. The Home then be- and a member of the California Schol- in the right direction, but ultimately it came known as Thompson-Markward arship Federation. She graduated 10th is our responsibility. He has done his Hall now most commonly known as TMH—to perpetually remember Mrs. in her class with a 3.9-grade point aver- part. We need to pass this humane and Thompson’s generous gift. age. thoughtful bill and give people such as Maria was accepted by every college Despite the many changes through- Maria Gomez a chance to make Amer- she applied to. Her dream was to at- out the years, the original spirit and ica a better place to live. tend UC Berkeley, the only State col- mission of the founders and early bene- lege in California that offers architec- factors remain. Today, TMH continues ture to undergraduate students, but f to be a ‘‘home away from home’’ for 120 she couldn’t afford it. Maria, and the young women in Washington for work other DREAM Act students, are not el- MORNING BUSINESS or school. igible for any Federal assistance to go As TMH celebrates the 125th anniver- Mr. DURBIN. Mr. President, I ask to school. Instead, she decided to live sary of its Congressional charter, its unanimous consent that the Senate at home and to attend UCLA. She was roots are strong and the devotion to its proceed to a period of morning busi- a commuter student. She rode the bus founder’s mission remains firm and ness, with Senators permitted to speak to and from UCLA, 21⁄2 hours each way constant. I ask the United States Sen- each day. therein up to 10 minutes each. ate to join me in congratulating While she was a full-time student, The PRESIDING OFFICER. Without Thompson-Markward Hall on this im- she worked to clean houses and did objection, it is so ordered. portant milestone.∑

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