January 25, 1983 EXTENSIONS OF REMARKS 297 EXTENSIONS OF REMARKS H.R. 5: THE OCEAN AND COAST pansion of our offshore oil and gas and are not authorized to tax or gener AL RESOURCES MANAGEMENT program. ate revenues from Federal leases on AND DEVELOPMENT BLOCK Proceeds from the fund would be ap the OCS. H.R. 5 would go a long way GRANT ACT plied to further the purposes of the toward correcting this inequity and national sea grant college program would require considerably less, in HON. WALTER B. JONES and to provide block grants to coastal terms of money and proportion, than OF NORTH CAROLINA States
e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 298 EXTENSIONS OF REMARKS January 25, 1983 out its 55,000 workers from the system minate coverage, it can virtually do so ice to make available any such infor worth $143 million in contributions overnight by closing its books on mation to the Secretary of Health and each year. In all, at the end of 1982, Friday and reopening as a new, non Human Services. While all organiza 100 local governments terminated par profit entity on Monday. Such a prac tions will be required to stay in the ticipation representing 76,000 contrib tice allows these entities to circumvent system, this disclosure provision will utors to the system. The situation if the 2-year waiting period required in insure that the Social Security Admin further exacerbated by the fact that the law and renders it virtually impos istration is made aware of all entities an added 400 governmental units, 456 sible to track participants in the which have notified the IRS of their hospitals-with 417,000 employees system. In 1981, the Social Security intent to withdraw from the system to and 499 nonprofit organizations have Administration estimates that non date. notified the agency of their intent to profits paid about $5 billion into the Finally, this bill includes a sunset withdraw within the next 2 years-as OASI and DI trust funds. To allow provision of January 1, 1990, and also required by law. It has been estimated this level of participation without in requires the Secretary of HHS to by both the Social Security Adminis suring the futures of 350,000 employ submit a report to Congress, 1 year tration and the Congressional Budget ees who are making half of these con prior to that date, of recommendations Office that these terminations will tributions is clearly unconscionable. as to whether this 6-year freeze on cost the system at least $500 million in The problem of social security with withdrawals should, in fact, be perma the next 2 years. Clearly, at a time drawals is especially pronounced in nent. The policy rationale which pro when we are seeking ways to bring sol nonprofit hospitals. According to the vided for optional coverage by State, vency to the system, stopping this Social Security Administration, 3.8 local, and nonprofits was sound when drain on the system should receive million of the 4. 7 million workers in it was enacted in 1950. However, 1982 high priority. nonprofit facilities are enrolled in is not 1950 and the social security I also wish to note that stopping this social security Of the 2.3 million in challenge before us is unmistakably "opting out" provision in current law nonprofits/hospitals some 1.6 million clear. We must act immediately on is an issue which has been discussed are participating in the system. Cover this measure to prevent any further by the National Commission on Social age is through an equal employer-em unnecessary hemorrhaging of the Security Reform. It is my contention ployee contribution of 6. 74 percent of social security trust fund-a drain that this provision must be a part of salary. which is costing the system one-half any reform package presented to the Originally omitted from coverage, billion dollars per year and which Congress this year as we can hope to nonprofit health facilities were provid threatens to grow larger if this prac save at least a half billion dollars by ed the option of coverage in the 1950 tice continues unchecked. Passage of 1987. This bill eliminates the moratori amendments to the Social Security H.R. 6356 will put an immediate stop um on withdrawals in 1990-which will Act, along with public employees. to this. bring us through the short-term crisis With the increase in the payroll tax For the benefit of my colleagues, I that the system faces. deduction in 1978, more facilities have am inserting into the REcoRD an arti The second component of this legis began to "opt out," driven by rising cle from the Chicago Tribune which lation would allow those organizations costs associated with both health care further details this withdrawal prob which have voluntarily withdrawn delivery and employee wages and ben lem. I also wish to commend the dis from social security coverage to opt efits. In fact, one prominent Social Se tinguished chairman of the Social Se back into the system if they so choose. curity Administration official esti curity Subcommittee, Mr. PICKLE, for Under current law, once termination mates that withdrawal notices from his vigorous commitment to the elimi by State, local, and nonprofits occurs, nonprofits have increased 500 percent nation of this problem and I anticipate they can no longer return back into in the last year alone. To date, we that we will see this issue raised again the system. Such a provision is patent know that 456 hospitals have filed when the Committee on Ways and ly unfair to employees who have been withdrawal notices, pending termina Means begins hearings on this issue on denied the opportunity to decide if, in tion, representing nearly 417,000 em February 1. fact, they indeed wanted to withdraw ployees. While these hospitals may see The article follows: from the system. Employers are not withdrawal as a short-term benefit in required to notify employees that they reduced payroll taxes, these withdraw [From the Chicago Tribune, Jan. 5, 19831 plan to terminate participation in als represent a genuine threat to the LoCAL AGENCIES FLEE SOCIAL SECURITY social security. Current procedure re long-term stability of the entire RoLLS quires the participant to send written system. This bill will return stability WASHINGTON.-Defections from the Social notice to the Social Security Adminis to the system and to future benefits of Security system are running at an all-time tration-and the termination of their those employees who are now merely high as hundreds of counties and other gov ernment agencies move to rid theiDSelves of contact occurs within 2 years. During protected at the fiscal whim of em the payroll tax burden. this waiting period, no notification of ployers. The cash-short system lost an estimated employees is required, nor do they This bill would also require new, 75,077 government contributors on Jan. 1 as have any formal role in the decision. nonprofit entitles formed after Janu 100 counties, school districts and other Withdrawal, once completed, becomes ary 1, 1984, and granted tax-exempt public agencies pulled their employees out irrevocable. Since 1959, 22 percent of status to be covered under social secu of the system. the State and local employees covered rity-the option would be removed. Los Angeles County yanked its 55,000 em by social security have been terminat Such mandatory coverage would elimi ployees out over the objections of unions in a move that will cost Social Security $143 ed, with the bulk of the terminations nate the ability that these groups now million in 1983 and reportedly save the having occurred in the past 3 years. have to disband themselves on paper county $36 million. For tax-exempt, nonprofit organiza and to reorganize as new organiza The losses were more than double the pre tions, the problem is greater, although tions-effecting immediate withdrawal vious high set in 1979, when 81 state and difficult to measure because these or from the system. This provision will local government agencies pulled 34,134 ganizations are protected from disclos close the existing loophole in the law workers out of Social Security, including all ing such information because their which allows for this growing and dan of Alaska's 14,500 state employees. very status as nonprofits exempts gerous practice. "The system itself is in financial trouble," said Social Security spokesman James them from the requirement of provid This bill also addresses the lack of Brown. "Any time you lose money, it's not ing information to the Social Security accountability of organizations which good for the system." Administration. In fact, when a tax seek to terminate their contracts with More than 275 government agencies are exempt organization, currently partici the Social Security Administration by threatening to pull 104,506 employees out of pating in social security decides to ter- requiring the Internal Revenue Serv- the system at the end of 1983, and 112 agen- January 25, 1983 EXTENSIONS OF REMARKS 299 cies with 63,149 are threatening to withdraw Implementation of this ill-advised rec request of the defendant, all parties to at the end of 1984. ommendation would have two deleteri a civil litigation or upon the court's In addition, 177 nonprofit agencies-hospi ous effects and would be contrary to own motion. It also disallows a resi tals, schools, charities and other groups were scheduled to drop out last year and the public interest. dent's disqualification of service on a nearly 900 others-with several hundred First, reducing the payments into Federal petit or grand jury in the Dis thousand employees-are threatening to the strong and viable civil service re trict of Puerto Rico when proceedings withdraw over the next two years. tirement plan would weaken that oth are conducted in Spanish, solely be Social Security does not yet know which erwise strong and healthy retirement cause such person lacks proficiency in ones have carried out the threat to with system. It would therefore only be a the English language. draw. matter of time before that system was The unique situation faced by the Federal workers are not covered by Social Security. Most state and local governments in trouble. Given recent trends, it Federal District Court in Puerto Rico and nonprofit agencies such as colleges and would follow that employee contribu calls for the changes embodied in the hospitals have opted to join the system, al tions would be increased and benefits bill. The judges, prosecutors, defense though they aren't required to. to retirees would be reduced. counsel, and the overwhelming majori But for most of the 116 million workers Second, adoption of the Commis ty of court personnel are, primarily. who pay 6.7 percent of their earnings to sion's recommendation would provide Spanish-speaking, and secondarily, Social Security, there is no way out of the minimal support to the social security English-speaking. In addition, the Fed system. The pace of withdrawals has quickened in system while at the cost of reducing eral District Court of Puerto Rico sits the last two years as Social Security's finan benefits and increasing costs to active in a jurisdiction where Spanish is the cial picture worsened and as efforts were and retired Federal and postal employ primary language of the overwhelming mounted in Congress to bar the door to any ees. majority of the population as well as more defections. Both active and retired Federal and of defendants, litigants, and witnesses; The National Commission on Social Secu postal workers have borne much more to some, Spanish is still the sole lan rity Reform, which says Social Security than their fair share under Reagan's guage. needs to save $150 billion to $200 billion by economic game plan. Last year alone The concept of a language option for 1990, favors mandating coverage for new federal workers and all nonprofit employ the costs for health coverage of the the U.S. District Court of Puerto Rico ees. Federal work force were increased was originally approved by the Senate Most members also seemed to favor ex while benefits were decreased, their during the 93d Congress. Subsequent tending coverage to all state and local gov cost-of-living adjustments were ad ly, it was approved by the Senate in ernment workers, but the panel is not ex versely affected, and they are now the 95th Congress and the same bill I pected to press for that because of uncer forced to pay the medicare portion of introduced today passed the House in tainties over whether such a move would be the social security tax. the 96th Congress. Notwithstanding constitutional. Now. I understand, the Reagan ad Bi·own said that in addition to Los Angeles the bipartisan and overwhelming sup County, 1982's dropouts included the Gwin ministration is considering a freeze on port of this legislation by the people nett County, Ga., Board of Education with Federal pay raises, still additional of Puerto Rico and the recognized 3,584 workers; the Dougherty County, Ga., delays in the cost-of-living adjust need of the same by the House and Board of Education with 2,519; Santa Cruz ments, raising the retirement age, and the Senate, efforts to secure its pas County, Calif., with 1,988; the Tri-City Hos finally universal social security cover sage by both Chambers during the pital District in California with 1,333; age which would merge the civil serv same Congress have been fruitless. It Adams County, Colo., with 1,018; Riverside, ice retirement system with the social is unfortunate that the better admin Calif., with 1,047, and the Marion County, Fla., Hospital District with 755. security system. I oppose each of these istration of justice in the U.S. District Among these scheduled to retire from proposals. Court of Puerto Rico has been put on Social Security at the end of this year are Extending social security to the Fed hold by unreasonable delays in the San Diego County with 11,977 employees; eral work force would force this dedi consideration of this bill by Congress. Fresno County, Calif., with 7,899; the Rich cated corps of workers to give up a Time is long overdue for the improve mond County, Ga., Board of Education with better retirement plan of their own ments in our justice system called for 4,200; South Broward, Fla., Hospital District simply to bail out the ailing social se in the bill. with 2,324, and King County, Wash., Public curity system. I urge my colleagues to join me in Hospital District No. 1 with 1,200. By law, the withdrawals by state and local In addition, raiding the civil service securing the passage of this legislation agencies take place at the end of the calen retirement system to help finance which is of utmost importance to the dar year, two full years after they notify social security is a breach of faith with people of Puerto Rico and to the ends Social Security that they want out. They Federal and postal workers, who al of justice.e can delay a decision for a third year, but ready pay more toward retirement once out, they cannot get back in. than do social security recipients. Dropouts contend they can give employ I intend to actively work and vote THE HARRIMAN INSTITUTE AND ees comparable benefits at a lower cost. against legislative efforts to merge the SOVIET STUDIES Workers and employers each must pay the 6. 7 percent payroll tax on earnings up to two programs and any other ill-advised $35,700, or up to $2,391 per worker.e proposals which adversely affect Fed HON. LEE H. HAMILTON eral and postal workers.e OF INDIANA IN THE HOUSE OF REPRESENTATIVES IN OPPOSITION TO SOCIAL SE- CURITY COVERAGE FOR NEW PROCEEDINGS OF THE U.S. DIS Tuesday, January 25, 1983 FEDERAL EMPLOYEES TRICT COURT OF PUERTO e Mr. HAMILTON. Mr. Speaker, I RICO would like to enter into the CoNGRES HON. WILLIAM (BILL) CLAY SIONAL REcoRD the following excerpts OF MISSOURI HON. BAL TASAR CORRADA from addresses delivered on the occa IN THE HOUSE OF REPRESENTATIVES OF PUERTO RICO sion of the dedication of theW. Aver IN THE HOUSE OF REPRESENTATIVES ell Harriman Institute for Advanced Tuesday, January 25, 1983 Study of the Soviet Union at Colum e Mr. CLAY. Mr. Speaker, I strongly Tuesday, January 25, 1983 bia University, October 21, 1982. oppose the recommendation of the Na e Mr. CORRADA. Mr. Speaker, today From the address delivered by Gov tional Commission on Social Security I introduced a bill which provides that ernor Harriman: Reform to extend social security cov pleadings and proceedings in the U.S. We and the Soviet Union are the two erage on a mandatory basis to all District Court of Puerto Rico be con greatest countries in the world. We have newly appointed Federal employees. ducted in the Spanish language at the completely different ideologies. There is 300 EXTENSIONS OF REMARKS January 25, 1983 nothing that would induce me to have any continue to be the major rival of the United debts continues to grow. For the most thing to do with their ideology, and they States and a potential military threat. As part, these are Communist and Third seem to believe in their own. But there are the two great nuclear powers, we hold in common interests. and despite our differ our hands the fate of the world. It is criti World countries. It is a fact that our ences, we can do a great deal to help the se cally important that we have the necessary Department of State encouraged these curity of our nation and prevent a confron pool of knowledge and talent to help us un loans and that our large banks rushed tation which could be extremely dangerous. derstand the Soviet Union and fashion ef in to make them. No one really seemed Anyone who has studied the situation fective solutions to the testing issues that to worry about repayment of the knows that whichever side would start a nu face us. debts. Any banker who made local clear war would commit suicide, because From World War II to the present, we loans such as those that have been each side-the United States as well as the have witnessed extreme swings in public at made abroad would be arrested. Soviet Union-has adequate ability to de titudes about the Soviet Union, reflecting stroy the other, even after a first strike. In the shallow roots of these attitudes. More However, now we have a very deli fact. there is no such thing as a first strike often than not, debates about our Soviet cate financial situation in the world as knocking the other nation out. The first policy have been based upon slogans and a result of these ill-advised loans. strike destroys the society but that nation stereotypes, rather than upon knowledge. Colin Welch wrote a very cogent edito has adequate return force to destroy its We cannot afford this ignorance. It is dan rial on this subject that appeared in enemy. gerous, in a time of nuclear weapons and Chief Executive magazine for winter This is an appalling situation and should turbulence in international politics. 1982-83 that I feel is well worth my be recognized and not forgotten. We should The Soviet Union is a complex and chang colleagues' time to read. The editorial try to find the ways and means by which we ing society. That it does not share our can get along better with the Soviet Union. values or our vision of what the internation follows: We should find ways and means of learning al system should be makes it all the more BROTHER, CAN You SPARE A BILLION? more about them. Their people want to be essential that we bend every effort to deal Did a lot of international bankers recently our friends even if their leaders are not anx with the Soviet Union from a base of knowl go mad? At the end of last year, according ious to do that. edge and not from ignorance. The Soviet to figures supplied by the Amex bank of Changes will occur in the Soviet Union. I Union has important strengths and weak London, developing countries had external am not suggesting, however, that we can get nesses. and we must take the measure of debts of over $600 billion. Of these, exclud them to make changes. Yet I have such both accurately, without exaggerating or ing government-guaranteed export credits, faith in the influence of the Soviet people minimizing either. We need for this task a more than half were owed to international that I believe the changes will come of their concentration of effort to train a more ade banks. This was an increase of about 400 own accord. But there will be no change for quate number of specialists who will devote percent in six years. Many of these loans the better if we do not try to do our best to themselves to the long and difficult pursuit were to countries which would normally be find the ways and means to work together. of objective knowledge and analysis of the regarded as bad risks: Countries without And so this afternoon, I hope we will Soviet Union in all its aspects-its society, assets, or those that squander their assets, assume the attitude and responsibility for its political system, its economy, its foreign which are hopelessly corrupt or which finding ways in which we can work with the policy, its military capabilities, its history, pursue economic policies actively hostile to Soviet Union-and there are ways! They are and its culture. prosperity and growth. It looked like shovel human beings, whatever the problems cre This is why I see the founding of theW. ing money down so many drains. ated by their system. They are people who Averell Harriman Institute as an event of As a result of their apparent imprudence, want to see improvement in the life of their singular importance. I am confident that. these bankers are now adrift on a stormy nation. They do not want war any more under the masterful leadership of Marshall sea of troubles. There are prospects of more than we do, and they want a better life for Shulman, it will spark a turnaround in the widespread defaults, some vast, like Mexico; their people. serious decline of our national capabilities of repeated recyclings, with repayment post My wife and I hope-and Pamela has in this field. Bearing the stamp of Averell poned from this year to next year, some shared my ideas from the very beginning Harriman and continuing the traditions time, never; of non-payment even of inter that the dedication of these papers and the long established at Columbia University, the est, absurdly low as much of it is. There is very important work Columbia has under Institute will set standards for quality and even talk of a no-debt-repayment strike by a taken to do will make a difference. The In objectivity that will raise the level of studies cartel of hard-pressed ne'er-do-wells-a stitute will have Marshall Shulman as its di of the Soviet Union not only in the United thought which makes bankers and their rector. He is one of the most capable men in States, but throughout the Western world. shareholders shiver in their Guocis. his field, and with his guidance the Institute I have mentioned several times the need Why did the bankers behave so foolishly? will be doing excellent work. New scholar for objectivity. In a subject as controversial Well, thanks to the recession, opportunities ship will be stimulated, and the number of as Soviet studies, it is not easy to shield it for investment nearer home were few. Some graduates who will be available for work in from the political winds and passions of the observers cynically assert that it is just the field will increase. moment, but it is essential to do so. Not easier to lend a billion dollars to, say, Zaire I have read in the papers that there is a only scholarly standards are at stake, but than to hunt out a thousand likely-looking downgrading of interest in Russian affairs. practical policy considerations depend upon entrepreneurs and lend them a million dol That attitude can be changed, and Colum it. lars each. It's easier still if the loan is guar bia will do a great deal to effect that If we are to have-as we must-a more ra anteed not only by Zaire's immeasurable re change. I cannot express my delight and tional management of our relations with the sources PARLIAMENTARY REFERENCE GUIDE TO THE CONGRESSIONAL BUDGET PROCESS (TITLE Ill OF PUBLIC LAW 93-344) Report Passage Committee of cooference Code Title Proper vehicle Conference report agreed to by Congress completes action House Senate House Senate Sent to cooference House • Senate 30l(d) 2 2 I ...... First Required Concurrent H. Con. Res. 30l(d) !Ohr+4hr 50 hr + 4 hr debate. 7~1imil : 5 hr debate: 302~) , 10 hr debate: 302(a) . Ma~ ~~a~~~ : 30J(a). Resolution on the Budget ~or) S. Con. debate. 3 305(c) •. 3 5(d) . 305(a)(4) , ru 305(c) , 305(e) . 0 (Sec. 301) (H. Rept. es. 305(a) •. XLIX. No.-). !(a) ...... Permissible Revision of First H. Con. Res. 304 304 10 hr debate: 50 hr debate: 5 hr debate: 302 ~) . 10 hr debate: 302(c) , 302(c) , [302(b)]. Required Concurrent ~or) S. Con. 305(a) . 305(b) , 305(c) . 74~5~~~~~.: 304(a) (4), ru 305(c) , 305(e) . Resolution on the Budget es. XLIX. (Sec. 304) (H. Rept. No.-). 2 ...... Second Required Concurrent H. Con. Res. 3!0(a) • 310(a) • I0 hr debate: 15 hr debate: 5 hr debate: 302~c), 10 hr debate: 302(c), Sept. 15 deadline: 302 (c) . Resolution on the Budget ~or) S. Con. 305(a) . 305(b) , 305(c) . 74~5~~~~t: 304(a)(4) , rue 305(c) , 305(e). 3JO!bl , 310(f) , (Sec. 310) (H. Repl. es. XLIX. 302 b ; no a~ until No.-). action is com led. 2(a) ...... Permissible Revision of H. Con. Res. 304 304 I 0 hr debate: 50 hr debate: 7.00~ limit: 5 hr debate: 302 ~) , 10 hr debate: 302(c), 302(c) , [302(b)]. Second Concurrent ~or) S. Con. 305(a) . 305(b) , 305(c) . 3 5(d) . 305(a) (4) , ru 305(c) , 305(e) . Resolution on the Budget es. XLIX. (Sec. 304) (H. Repl. No.-). 304 EXTENSIONS OF REMARKS January 25, 1983 PARLIAMENTARY REFERENCE GUIDE TO THE CONGRESSIONAL BUDGET PROCESS (TITLE Ill OF PUBLIC LAW 93-344)-Continued Report Passage Committee of conference Code Title Proper vehicle Sent to Conference report agreed to by Congress completes action House Senate House Senate conference House 1 Senate RECONCILIATION PROCESS 2( b) ...... Reconciliation Bill or H. Con. Res. 310 (c) 310 (c) ...... 20 hr debate: ...... 10 [~O~r : 310(a) , ~jiJ~)~Ii:; . ~~~ d ). Resolution as Result of (or) S. Con. 310(e), Directions in the Second Res. [305(b)). action is completed. Requi red Concurrent Resolution on the Budget [Sec. 310(c )(d)(e)(l)]. • Rule XLIX of the House of Representatives provides that the vote by which the conference report on the concurrent resolution on the budget was agreed to in the House (or I?Y which the concurrent resolution itself was atklpted in the House, if there is not conference report) shall be deemed to have been a vote by the House in favor of a joint resolution establishing the amount of the stalutOIY limit on the publiC debt at the appropriate leYel set forth in the concurrent resolution on the budget. This rule was added in the 96th Congress by Public Law 96-78 (approved September 29, 1979, 93 Stat. 589). 2 April 15 deadline. • Report available for 10 days. • The Full Employment and Balanced Growth Act of 1978 (Public Law 95--523, section 303(b). amended this subsection by adding subparagraphs 305(a ) (3) and (4), and making conforming changes, relating to debate and amendments on economic goals and policies during consideration of the first concurrent resolution on the budget in the House (a similar addition was made 1n secton 305(b) (3) and (4) relating to Senate procedure). 5 May be filed anytime. Note.-How to use this chart: This chart shows the different stages of the budget process in Congress and at each point the related sections of title Ill of the Congressional Budget Act of 197 4. The budget process consists principally of the passage of 2 required COfiCUrrent resolutions: The first (code 1) which is considered the "target" resolution to guide the Congress 1n their deliberations on the funding bills: and the second (code 2) which is the final and binding budget for the oncoming fiscal year. the law allows the Congress to rt!VIse either at any time (code 1(a) and 2(a) ). The second (code 2) or final resolution may require the Congress change, modify, or enact new laws to be able to stay withm the levels set in the second resolution. Any such bill or resolution is entitled a reconciliation bill or resolution (code 2(b) ). To find the desired provision of the 1974 Congressional Budget Act. locate the measure of interest in the allumn labeled 'Title." To find the requirements for particular action on that measure, follow the row across the page to the allumn labeled by the desired actiVity. Bracketed citations refer to sections which have partial application. $2.50 per thousand cubic feet to over TITLE III-CONGRESSIONAL BUDGET ACT OF LAFALCE BILL WOULD LOWER $8 per thousand cubic feet for deep 1974 11-059 0-87-11 (Pt. 1) 320 EXTENSIONS OF REMARKS January 25, 1983 about due to the imposition of addi Midwest and the Nation as a whole. leaves our lives all the richer for tional user fees. The study neglected Let us act now and take advantage of having known him and his gentle and to evaluate the eventual shift that the economies of building the auxilia wise ways. would occur from one mode of trans ry lock while construction is underway The American poet Emily Dickinson portation to another mode, and on the new facility of lock and dam once wrote, whether the other modes of transpor No. 26.e Because I could not stop for Death tation would be able to sufficiently He kindly stopped for me- and economically handle the shift, or The Carriage held but just ourselves whether or not the other modes even JOE P. JOHNSON-A FAREWELL and Immortality. had the capability and capacity. The TO A DISTINGUISHED ARKAN Joe could not stop for death. He was study neglected to seriously analyze SAN too busy helping others realize the the extreme difficulties that the wa joys life holds. But he left a legacy terway industry is currently suffering HON. BILL ALEXANDER that will never die. Joe taught, by ex in the present economic environment OF ARKANSAS ample, that a worthwhile existence or the near future. As a result, many IN THE HOUSE OF REPRESENTATIVES comes from respecting and holding regions of the country, including my Tuesday, January 25, 1983 dear-with all our strength-the own, conducted their own min-205 values and visions of those whose lives study and the results were overwhelm e Mr. ALEXANDER. Mr. Speaker, we touch. ing that severe dislocations would Joe Paul Johnson, a good friend, a Joe Johnson was a private person occur in the waterway industry upon fellow Arkansan, a man known and who shared his effervescence, his wit, the imposition of additional user fees loved by many in this Congress died and his bursting enthusiasm for all or the administration's cost recovery on January 6. the good that life has to offer. proposals. The question of user fees Joe was a person whose warmth, I offer my condolences to his family, and cost recovery have not and will good humor, zest for life, and concern share the grief of his friends, and com not be solved in the immediate future. for others marked both his personal mend Joe P. Johnson in these Cham We cannot, however, afford the life and a long and productive profes bers of the U.S. Congress for having luxury of time in authorizing a second sional career. given so much of the beauty of his ex chamber at lock and dam 26. Joe was the President and chief op istence to others.e Let me emphasize that many of our erating officer of the Martin Haley Nation's ports and inland waterway fa Companies, Inc., an international cilities are strained to capacity, require public relations firm that serves more POLICE OFFICERS HONORED modernization, and are subject to fre than 140 corporations, organizations, quent breakdowns. We cannot over and nations. He had reached that dis HON.RAYMONDJ.McGRATH look the national benefit and need for tinguished position after many suc OF NEW YORK a modem waterway system, which in cessful professional experiences. How coordination with other modes of ever, throughout his life Joe main IN THE HOUSE OF REPRESENTATIVES transportation will enhance the U.S. tained a strong sense of himself as an Tuesday, January 25, 1983 export trade while insuring· the safe Arkansan. e Mr. McGRATH. Mr. Speaker, on and efficient uninterrupted flow of He was born in Emery, Ark., on Feb January 22, two members of the commerce. ruary 14, 1930 to Mr. and Mrs. Dave Nassau County Police Department, Mr. Speaker, my bill proposes that Johnson. Joe graduated from Cave Patrolman James B. Dempsey and Pa the second or auxiliary chamber be City High School and the University trolman Antonio S. Graziano, were 110 feet in width like the present and of Arkansas and was active in politics honored by their fellow officers as new main chamber and 600 feet in at the local, State, and Federal levels Top Cops of the Year 1979. Both men length, exactly one-half the capacity since 1950. For many years he worked are residents of the district I repre of the new chamber. This would make for the Associated Milk Producers. He sent, and I wish to share their accom the dual lock capacity exactly identi also served as special assistant to plishments with my colleagues as an cal to the present lock and dam No. 27 Chairman Wilbur Mills of the Ways example of outstanding work in the at Granite City, Ill. Lock and dam 27 and Means Committee of the U.S. field of law enforcement. is the next locking facility below lock House of Representatives. · I should also point out that the and dam 26 and the last facility on the Joe served his country, as well, as a awards for each year are given out at Mississippi River. lieutenant in the U.S. Air Force from 4-year intervals to an individual officer In addition, Mr. Speaker, a strong 1953 to 1955. or two officers working as partners. viable economy is one of the most val In his various roles, as a lobbyist, as Out of a force numbering more than uable elements of national defense. adviser to the chairman of the prestig 3,000 members, the Top Cop award is a Specifically, the economy serves as a ious Ways and Means Committee and significant accomplishment. During vehicle for generating income to sup as a corporate executive, Joe Johnson the year 1979, Officers Dempsey and port our national defense and as a always reflected the basic American Graziano were assigned to undercover means of supporting our commitments virtues he grew up with in Arkansas: duty in the Narcotics Division of the to our allies outside the continental fairness to others and a commitment NCPD. Early in the year, they were United States. First, the movement of to the ideals and goals of the demo able to infiltrate a high level drug grain is a critical element in our bal cratic process that are the underpin ring, which transported and distribut ance of trade and a favorable balance ning of our Nation. ed massive quantities of quaaludes. of trade can strengthen our economy. Joe was a loving son, husband, Their operation began with the pur Second, a first-class navigation system father, and grandfather and leaves chase of two quaaludes from a street is an essential requirement for moving behind his mother, Mrs. Bertie John sale and ended with the arrest of four materials for a military mobilization son, who lives in Cave City, Ark., his subjects who participated in a sale of effort. We must take steps to prevent wife, Janice Ireland Johnson, his 17,000 of the illegal tablets. Another delays in moving vital goods. A second daughters, Judy Tapp of Arlington, 180,000 were seized. One of the sub lock at lock and dam 26 will prevent Tex., and Linda Lookadoo of Falls jects arrested was a known organized delays and thereby strengthen our na Church, Va., and his grandchildren, crime figure. The street value of the il tional defense. Eric, Lashelle, Joshua, and Jessica. legal drugs was estimated at $1 mil Mr. Speaker, I urge my colleagues to And Joe leaves behind, as well, many lion. Later in the year, the officers un join me and Mr. PRICE in cosponsoring friends and colleagues he has helped dertook a 6-month investigation of a this legislation of vital interest to the are cared for over the years. But he Long Island bar, whose owners had January 25, 1983 EXTENSIONS OF REMARKS 321 been implicated in illegal drug sales ment, for it began to reverse our past It should also be noted that this con and related activities. The officers misguided economic policies. Old, dis cept is not an untested idea but is posed as regular patrons of the estab credited policies have resulted in our modeled after a French law enacted in lishment, and even participated on its Government taxing profits and divi 1978. As a result of this law. French softball team. They sacrificed count dends, savings and capital, sales and men investing in the stocks and bonds less hours of their own time to main income, and all of the other rewards of of French companies were permitted tain their cover. In the course of their risk taking so heavily that the risks to deduct up to 5,000 francs-roughly activities aimed at the drug sales, they are frequently no longer worth taking. $1,200-from their taxable income prevented a serious disturbance at the While I do not wish to minimize the each year for 4 consecutive years. bar and uncovered an illegal fireworks importance of the capital gains tax re Since the enactment of this invest dealer who was arrested with accom duction, it must be viewed as only the ment incentive, the French Bourse plices and $45,000 worth of contra first step in our ongoing struggle to re stock index has increased by over 60 band. This case ended in a raid in verse our Nation's declining produc percent with 1 million Frenchmen which 28 persons were arrested on tion growth by encouraging individ having taken advantage of this incen drug related charges. A loaded illegal uals to invest their savings in Ameri- tive. Half of these individuals have firearm was also seized. The bar, ca's future. · been first-time investors which con which had long been a nuisance to Regrettably, the United States re trasts with our dwindling and aging area residents was closed by State mains a nation with a low level of cap shareholders base. liquor authorities. For their efforts ital investment and the lowest savings Mr. Speaker. rarely do we have an during 1979, Officers Dempsey and rate of all major industrialized na opportunity to pass legislation benefi Graziano were presented with two de tions. In the last 10 years, millions of cial to all of our constituents. There is partment citations, the department's investors have left the stock market. nothing in this proposal which any in medal of commendation, and a merito The economic problems this country terest group could find objectionable rious service award. Both men have re faces today are legion. While the stock unless they object to increased produc ceived numerous other commenda market in late 1982 and early 1983 is tivity, the creation of new jobs, addi tions including recent citations from doing well, there is a dearth of venture tional capital for research and devel the Federal Drug Enforcement Admin capital for new, innovative small busi opment, and improved efficiency in istration. The officers are now part of ness ventures. American industry. the Long Island Task Force of the Small business, as this body well I urge my colleagues to examine this DEA, and they have participated in knows, employs more workers than legislation and to adopt this proposal, several major cases with other local, the mammoth concerns that claim the the Individual Investors Incentive Act State, and Federal officials. glamour in our economy. Small busi of 1983, as a realistic means of attract We in Congress are somewhat re ness is the backbone of our economy, ing vitally needed investment which moved from the day to day activities and many would agree, our way of life. will facilitate the development of cap of law enforcement. The dangers faced H.R. 63, the Individual Investors In ital formation.e by undercover officers are only known centive Act of 1983 will benefit the to us through television and movies economy of our country, and all seg BOB JOHN RETIRES where heroes return week after week ments of the business community. fully recovered from assaults or inju This legislation will increase produc HON. JOHN P. MURTHA ries. Nothing can describe the tremen tivity, create jobs, provide additional dous pressure under which officers capital for research and development OF PENNSYLVANIA must operate when working undercov and will strengthen our Nation's abili IN THE HOUSE OF REPRESENTATIVES er for long periods. Tuesday, January 25, 1983 It is encouraging to know that we ty to compete overseas. have police officers with the dedica The bill will accomplish this purpose • Mr. MURTHA. Mr. Speaker, it is tion displayed by Officers Dempsey by providing a 10-percent tax credit of with both gratitude and sadness that I and Graziano. I want to congratulate up to $1,000 to individuals to $2,000 to mark the retirement of reporter Bob them for their well deserved honor married couples filing a joint tax John from the Johnstown Tribune and wish them continued safety and return for new or additional invest Democrat. success in their careers.e ments in stocks, bonds and mutual The gratitude comes for a man who funds investing in domestic corpora has served the newspaper profession tions. and the Johnston area community for INDIVIDUAL INVESTORS Additionally, the bill encourages in 46 years. The sadness comes because INCENTIVE ACT OF 1983 vestment in all types of businesses by both the profession and the communi stipulating that there would be no ty will be poorer for Bob John's ab HON. RICHARD T. SCHULZE limit on the size of a company whose sence from the Tribune. OF PENNSYLVANIA stock would be a permissible invest Bob John's career has spanned the IN THE HOUSE OF REPRESENTATIVES ment. Further, it provides for a mini age of manual typewriters and "hot" mum 12-month holding period in order typesetting to the computer terminals Tuesday, January 25, 1983 to qualify for the tax credit, thus en and offset printing. Through all the e Mr. SCHULZE. Mr. Speaker, 5 years couraging investment rather than changes in newspaper styles and devel ago, this House took a positive step to speculative trading. Finally, the tax opment, Bob John has retained his encourage investment and promote credit would not be limited to new commitment to straight news report the growth of capital formation. With stock issues, due to the fact secondary ing-he lays out the facts, he gets the the passage of the Revenue Act of markets are not less important to quotes accurately, he double-checks 1978, maximum Federal tax rates on equity capital formation than the sale his facts, he reports the news. In an long-term capital gains were rolled of new issues. age when you have trouble picking up back from 49 to 28 percent. More re This legislation which I am propos some newspapers and finding any cently, tax disincentives to productive ing has the strong support of such news because it is all interpretation investment have been reduced groups as the 700 chief executives of and features, Bob John has remem through the Economic Recovery Tax the committee of publicly owned com bered that the basis of the news busi Act of 1981. panies and the National Association of ness is reporting the news. And he The 1978 changes were overwhelm Investment Clubs which is comprised does it right. · ingly approved by the Congress and of over 4,000 clubs and over 51,000 In remembering Bob John's work, I were hailed as a significant develop- small investors. think back to a comment made by one 322 EXTENSIONS OF REMARKS January 25, 1983 of his colleagues. Dave Leherr was considered by the Congress. The fact that I cant disincentive to retirement savings. news editor at the Pittsburgh Post-Ga personally have strong reservations about There is also a basic flaw in the way the zette before tragically dying at a the specific plan proposed in no way dimin "means test" inherent in the tax on benefits young age, but one time after he had ishes my respect for that effort. is determined. Individuals with non-Social covered a political rally in Johnstown, It is unfortunate that the agreement Security retirement income of $20,000 or reached continues to leave in doubt, in my more will be taxed on half of all their Social I asked him if he knew Bob John. His opinion, the future stability of the Social Security benefits. Those with incomes of response was quick and accurate, "Bob Security system. We have not taken advan $19,999.99 or less will not be taxed on any of John is a gentlemen." And he is. tage of this rare historic opportunity to do their benefits. One penny of income could Over the years, it has become unfor more toward designing greater stability. make the difference in whether hundreds of tunate that in many cases dealings be The proposals treat symptoms, not causes. dollars in taxes must be paid. tween officials and the press have My concern stems from a variety of The imposition of a means test, for the become antagonistic. But Bob John sources, but primarily from those involving first time, destroys the earned right concept always remained a gentleman, treated the basic economic and demographic as fundamental to Social Security and lends a sumptions used to assess the short and long new welfare aspect to its administration. his news subjects with respect, and term deficits, and the failure to address ade never forgot the human beings behind The same is true of the large infusion of quately the basic structural deficiencies general revenues proposed by the plan. The the news and their feelings and con which will continue to cause severe strains self-financing structure of the Social Securi cerns. on the system in the future. ty system has been significantly eroded. Bob John has also been a strong The compromise agreement does not Of the $168.7 billion in short term deficit member of the community. For many make a specific recommendation regarding a reductions in the plan, approximately one years he has headed the Route 219 As portion of the long term need <.58% of pay third is represented by direct and indirect sociation. He raised his family in roll), even assuming the accuracy of the pro infusion of general revenues, which, com Johnstown, and has been a part of jections of the dimensions of the gap it bined with payroll tax increases accounts sought to close. That significant element for some 75 percent of the short term deficit many community activities. has been left open to Congressional consid I understand that on Veterans Day reductions. In terms of the long term defi eration under the terms of the agreement. cit, new taxes account for even more of the last year, Bob wore some of his mili Neither does the agreement address certain reduction