December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19823 things I like about it and to make a me tell you the reality of the estate RECESS particular point with regard to scoring. tax. I have dealt with it. I have dealt The PRESIDING OFFICER. Under First, I want to point out that 41 with it for 33 years as a real estate the previous order, the Senate stands days ago the people of the United broker in the State of Georgia. in recess until the hour of 2:15 p.m. States went to the polls and voted. In The assets of most American families Thereupon, the Senate, at 12:44 p.m., the State of Georgia they voted for me. are real estate, whether it is farmers recessed until 2:15 p.m. and reassem- I ran a campaign on the basis that we and landowners or whether it is simply bled when called to order by the Pre- do not have a tax problem; we have a a homeowner. Other wealth in America siding Officer (Mr. BEGICH). spending problem. I ran a campaign is by people who have a small business. f based on the American people wanting With the confiscatory tax rate of 55 us in Washington to do what they have percent, which is what it would be Jan- FEDERAL AVIATION ADMINISTRA- had to do in the last 3 years: sit down uary 1, and an inordinately low deduc- TION EXTENSION ACT OF 2010— at the kitchen table, reprioritize, and tion or unified credit of $1 million, Continued spend within their means. We must do most American landowners, most The PRESIDING OFFICER. The Sen- that. American business owners who had an ator from New Hampshire. I commend what Senator CONRAD estate worth anything over $1 million from North Dakota said, and I com- FAREWELL TO THE SENATE would have had to liquidate their es- mend the courage of the others who Mr. GREGG. Mr. President, I rise tates to pay their taxes. voted for the deficit reduction commis- today on behalf of myself and my wife sion report because it is the kind of A little known fact about the IRS Kathy to thank the people of New shared sacrifice and tough love that all Code that a lot of people don’t realize Hampshire for giving us the great of us need next year to rein in spending but we all suffer from is that when you honor and privilege to represent them. in this country and get our balance die, you have 9 months to file your This is an extraordinary body, the back. But in the immediate future, in taxes and pay your taxes with the gov- Senate. It is filled with wonderful peo- the next 31⁄2 weeks, America’s taxes are ernment. They have 3 years to say ple. I look around this room and I see going up at a time of protracted reces- whether they will accept it. So in a 9- a lot of them, friends, people I have had sion and high unemployment. That month period of time, a family at a the chance to do work with. I admire doesn’t make any sense. point of bereavement, with some as- them immensely. I thank them for In 2003, when I was in the House, I sets, find themselves at a rate of 55 per- their friendship. And when people ask didn’t like the idea of putting a cent. That is confiscatory, and it is not me about leaving the Senate, what is sunsetting on the Bush tax package be- right. If they have to liquidate their the thing I am going to miss the most, cause I feared exactly what is hap- property or sell their business that I always say, it is the people, the peo- pening now—protracted uncertainty, 2- asset no longer produces income; there- ple of the Senate, because they are spe- year renewals, American business not fore, income taxes go down. cial, dedicated to making this country knowing what to do. While I will vote I can demonstrate on a graph or a better place, dedicated to doing their for this package today, I hope we will chart or blackboard that an asset that jobs well, dedicated to serving Amer- learn the lesson that 2-year incre- has to be liquidated and paid at a tax ica. mental sunsets or things such as that rate of 55 percent one time does not, So I thank you for the great honor are not good for the economy and not over 10 years, pay as much as would and privilege that you have given good for America. We, as Members of have been paid over the earned income Kathy and me to allow us to serve and this Congress and this Senate, must that small business or land would have participate in this body with your- deal with challenges when they con- created. So the estate tax 2-year deal is selves and your spouses. I want to front us—not by arbitrarily setting a good deal, and it should be perma- thank everybody else who has been so times for sunsets and sunrises that nent. Five million dollars is a lot of helpful throughout our career, the make us make policy under duress and money, but in the scheme of things for folks here at the dias, the staff, people difficult circumstances. a small business, a family farm, a coop- in the cloakroom, throughout this But on the scoring issue I want to erative, it is not a lot of money. But it building. I mean, there are so many point out two things about the tax is the lifeblood of a lot of families. If people who make this Senate work, rates and about the estate tax. There we confiscate that business or con- people working in the furniture room, are those who say by extending the ex- fiscate that land because the tax rate and people working in the hallways, isting tax rates we cut revenue that forces a sale, then we are actually our staffs, obviously. would have come in. Hypothetically, hurting ourselves in the long run, and This is a special place filled with peo- that is correct, but in reality that is we are hurting families in the long run. ple who are committed to making the not correct because, historically, from Senate work. I thank them for allow- John Kennedy to Ronald Reagan to Last, there is a spending component, ing Kathy and me to be part of that. George W. Bush, Republicans and and we are going to have to, next year, But I want to take a point of personal Democrats who were confronted with sit around the kitchen table of the Sen- privilege here and especially thank my difficult economic times, when they ate and deal with our spending because wife Kathy who is here today. You are changed tax policy and lessened the it is out of hand. But I do believe the not allowed to acknowledge people, I burden, they increased the revenue. So tax policy we are extending for the know that, but I am going to violate my forecast based on the next 2 years next 2 years will bode well for our the rules. My wife is sitting right up is we will see for the first time a clear economy. I agree with Senator CONRAD there. Kathy. example of dynamic scoring and hope- it will probably help increase produc- We have been married 37 years, and fully change a little bit of CBO’s mind tivity by about one-third, which will be for 32 of those years we have held elec- on how they look on tax policy. I think good for our country. It will be good tive office; 9 major campaigns, innu- we are going to see more employment, for our tax rates. If we can combine merable campaigns such as those for we are going to see more risk capital that with a fiscal policy that has other people that we have participated put out by business, and we are going shared sacrifice and tough love when it in. Through this whole intensity—and to see a sense of certainty and a sense comes to spending, we can regenerate we all know, who have participated in of optimism, which certainly our coun- the American dream and the great this process, the intensity of the elec- try needs. American engine of entrepreneurship tive process in this Nation—there has As far as the estate tax—and I love and return our country to the pros- been a rock and a solid force in our very much the Senator from North Da- perity we all hope and desire it will family. She has raised three extraor- kota, but I disagree vehemently on his have. dinary children, Molly, Sarah and explanation about the estate tax. Let With those remarks, I yield the floor. Joshua, who have been exceptional in

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They basically, in my opinion, break lieve, is whether we continue to assert Their value system and their belief in into two primary areas: The first is, of the core values which allow us to gov- this Nation and their willingness to course, the threat of a terrorist group ern well, and they all basically arise give of themselves to other people is a using a weapon of mass destruction from our Constitution. direct expression of the values Kathy against us. We must acknowledge that I have the good fortune to sit at the has given them; sometimes a little 9/11 fundamentally changed our cul- Webster desk. Daniel Webster was a overcompetitive on occasion, but that ture, changed our personality as a na- Senator from Massachusetts. New has been one of her strengths also. We tion, and caused us to realize our vul- Hampshire, in an act of appropriate have been through some hard times nerability. That threat of terrorism is stealthiness, had the desk designated and some good times, and always she driven by a fanatical belief in a reli- to the senior Senator from New Hamp- has been there to basically be our gious philosophy. We should not deny shire by statute in the 1970s. It is a lighthouse. So I express my love and that. We should acknowledge that. Be- great honor to have the right to sit at thanks to her. cause in order to defeat that threat we this desk. Webster and Clay kept this Bismarck, at the beginning of the have to understand that. Nation together at a time when had it 20th century said—first I should say, The second major thrust that I see as been torn apart. It would no longer Kathy told me I should not walk back our concern as we go forward is clearly have existed, because we were not ca- and forth like this. I have been doing it of our own making. It is a positive pable. We had no Lincoln, and we had for 18 years. And she says it makes peo- making, but it is still an issue for us, no strength of the North to survive. ple sick who are watching it on TV. and that is we have a nation which has Webster, in his speech on the Com- Like the famous time she called up, always been extraordinarily pros- promise of 1850, said: and we were having a colloquy, and perous, where one generation has al- I mean to stand upon the Constitution. I there were a bunch of us talking this ways passed on to the next generation need no other platform. I know but one coun- way, and I am talking to, I think, a better, more prosperous, and more se- try. No man can suffer too much. No man JOHNNY ISAKSON. She calls the floor cure country. Yet today we are on the can fall too soon if he suffers on or if he fails staff and says: Go out and tell him to cusp of not being able to do that again, in defense of the liberties of the Constitution turn around and face the cameras. because we have this population, of of our country. Bismarck, at the turn of the 20th which I am a member, called the baby At the center of our constitutional century—of course, Bismarck was one boom generation, which is taking our form of government, which was de- of the true great forces in Europe retired population from 35 million to 70 signed by Madison and Randolph, throughout the late 1800s and into the million people. As a result, we and the which was built on the concept that 1900s—said that: The defining fact of rest of the world, and in Japan for that there should never be an overly power- the 19th century was that England and matter, because of this demographic ful branch of the government, at the the United States spoke the same lan- shift, find ourselves confronted with center of this government is the Sen- guage. governments which are struggling to ate. It is the cauldron of liberty for our What I think he meant was that the figure out how they are going to pay Nation. defining fact of the 19th century was for what our entitlement society is. Why is that? Because it is the place that England and the United States The way I have sort of phrased it is where issues are aired, people are had a value system which believed in that when a populist government, a heard, amendments are made, and no the individual, in liberty, democracy, government that moves by election of one gets to shut down the minority and markets. It was a value system the people—when a populist govern- until a supermajority decides to do so. that grew out of the Scottish Enlight- ment meets a massive demographic The rights of the minority are the enment, people such as John Locke, shift in an entitlement society, you get source of the power of our government. Hutcheson, Adam Smith. unsustainable debt. That is something They are the source of the power of our In the 20th century, if you look at it, we confront right now and need to Constitution. They are the source of it was a test of that value system stand up to. the power of our liberty. against the other value systems which Those two streams are our biggest This is the center, this institution is had come up over the years, mostly to- concerns, or at least my biggest con- the center of the rights of the minor- talitarianism. There was a test of de- cerns as I leave the Senate: How do we ity. I have been in the minority. I have mocracy against fascism, a test of de- defend ourselves against a fanatical been in the majority. It is almost irrel- mocracy against totalitarian social- movement, which has an asymmetry evant from the standpoint of the im- ism. And we won. We won that test. base, which wants to do us harm,—they portance of the role of the Senate, be- The second big challenge of the 20th are not a nation state, we cannot find cause it is the Senate that gives voice century was a test of how you would them easily—but wants to do us harm to all Americans, that does not allow create prosperity for people, a test of and will do us harm if they have the us to shut out any American or any markets versus communism, of mar- capacity, and will do it with a weapon thought process in America that is le- kets versus, again, totalitarian social- of mass destruction? And, secondly, gitimate and which can come to the ism. And by the end of the 20th cen- how do we deal with this shift in our floor of the Senate and make its case. tury, there was no longer an issue, no society—this is driving the populist I have often wondered, what would longer an issue. The American philos- movement, which is making our struc- this government be like if there were ophy of government had come to domi- ture of government unaffordable in no Senate? Well, it would be a par- nate the world—democracy, individual many ways? liamentary government, for all intents liberty, and markets. The whole world America’s greatness and our ability and purposes, lurching to the left, was moving in that direction. Now we to address the issues such as this lurching to the right, and as a result, are 10 years into the next century, and comes from our people and from our in many ways, undermining individual we are challenged again, challenged Constitution. It is that Constitution rights, but, more importantly, having again. This time the challenge is dif- which embraces, basically, the liberties no continuity of purpose or force. ferent: Substantive, significant. Maybe that allow our people to create pros- We play politics in this city and in not at the same level that the Soviet perity and give this Nation its this country between the 40 yard lines, Union represented a challenge, because strength. for all intents and purposes. We are not they had the capacity to destroy us, Our freedom and prosperity is abso- a government that ever moves too radi- maybe not even at the same level of lutely resilient. There is no question cally left or radically right. That is the

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JUDD returned Just 2 years after arriving here, he people, we must listen to those who north to attend law school at Boston was selected to serve as chief deputy have legitimate views on both sides of University and got his J.D. in 1972 and whip as well as cochairman of Senator the aisle. then an LL.M. in tax law in 1975. Then Dole’s Senate agenda committee, a So as I leave this Chamber, I want to he returned to New Hampshire to prac- working group tasked with developing say this, simply: It has been a huge tice law. and managing the Republican agenda honor to have the chance to serve here. Meanwhile, he began to venture into at that particular juncture. It was the It is something that is the highlight of New Hampshire primary politics, co- first time in 20 years that a Senator our career, Kathy’s and mine. We move ordinating primary campaigns for Ron- from New Hampshire had served in a on with reservations, we hopefully ald Reagan in 1976 and George H.W. Senate leadership role. move on to something equally inter- Bush in 1980. It was during this time He never hesitated to work across esting, but it will never have the same that he really developed his conserv- the aisle to get things done. JUDD un- status as being in the Senate. ative principles. Over the years, he has derstood that to make something hap- This, to me, is the ultimate job when stuck to those principles, and the vot- pen in this body, as he just described, it comes to the governance of America. ers have rewarded him for it. He has it happens between the 40 yard lines, I simply ask you who stay here—and I never lost a race—not one. Part of the and that means both sides have to par- know this will be done—continue to reason JUDD wins is that he is not ticipate. He teamed up with Senator carry the torch. Understand that it is afraid to lose. He would rather lose for Kennedy to coauthor No Child Left Be- the Senate that is the center of the lib- the right reasons than win for the hind. Referring to that particular ac- erty that leads to the prosperity our wrong ones. complishment, JUDD once said: people expect. It is the Senate that is Over the years, he has become some- I don’t think any of us ever gave up our the center of our Constitution. thing of a political legend in New basic principles . . . Ted just understood Thank you very much. Hampshire, and for good reason; he is that even though he had strong beliefs . . . (Applause, Senators rising.) he understood you had to legislate to accom- the first person in New Hampshire his- The PRESIDING OFFICER. The Re- plish that. There was no point in just stand- tory to serve as Congressman, Gov- publican leader. ing off in the corner and shouting. Mr. MCCONNELL. Mr. President, I ernor, and Senator. He was first elected History will remember that JUDD would hope it is not the intention of to Congress in 1980, where he would also played a central role in Congress’s the senior Senator from New Hamp- serve four terms, and then, in what response to the financial crisis of 2008 shire to leave the floor. The accolades some viewed as a political gamble, he which we all remember very well. With our friend and colleague, the senior followed his father’s footsteps to run our Nation on the brink of economic Senator from New Hampshire, has just for Governor in 1988. He was elected collapse, I was to select one person to received from both sides of the aisle and easily reelected in 1990. represent our point of view at that are richly deserved. I would hope he During his second term, New Hamp- critical moment. The choice was com- might be able to stay a bit longer so shire, like the rest of the country, pletely obvious, the one person we had some of us have a chance to comment faced a difficult recession. But faced who everybody knew had no other on his extraordinarily distinguished ca- with pressure to raise the State’s in- agenda and would at the end of the day reer. come tax or sales tax, he cut govern- do what was right for the country. So He has devoted his entire life to pub- ment spending instead. The New Hamp- I made him the top Republican nego- lic service, always served with a deep shire Union Leader would later credit tiator on the Emergency Economic sense of purpose and with the over- JUDD as being able to manage the State Stabilization Act, now infamously re- riding conviction that we must leave through the crisis far better than any- ferred to as TARP. His top priority America in a better place than we one expected, and the Wall Street Jour- then and throughout the entire debate found it, as he so articulately ex- nal ranked him ninth in its Good Gov- over the effort was to ensure that the pressed. He has worked tirelessly for ernor Guide for cutting spending and original package protected taxpayers the people of New Hampshire and for keeping a lid on taxes during a serious by including language in the bill that all Americans, and he has been a truly budget crisis. stated all proceeds from the paybacks invaluable member of the Republican In 1992, JUDD decided to run for U.S. would go to reducing the debt, and he Conference. He is the smartest guy in Senate on his strong record on environ- did a fabulous job. the room, usually the most strategic, mental protection and fiscal discipline. It was because of JUDD’s principles, and as witty as they come. Yet even as He won a close race. Upon arriving in intelligence, common sense, and abil- JUDD’s national profile has increased this Chamber, JUDD immediately set ity to work across the aisle, as I indi- over the years as a result of his many out to work for the people of New cated, that I asked him to join my natural gifts, he never lost sight of Hampshire. I know one of the things he leadership team after I was elected Re- where he came from or the people he is proud of in his nearly 17 years in the publican leader. I have relied on him represents back home in New Hamp- Senate is the work he has done to pro- heavily these last 4 years. JUDD has shire. tect more than 300,000 acres of land in been right in the middle of every legis- JUDD grew up in Nashua in southern New Hampshire from development. He lative debate we have had since I have New Hampshire and was introduced to can also be justifiably proud of the re- been in this position. He has never dis- the world of politics early on. In 1952, markable work he has done as a Repub- appointed. He has been so effective, in when he was just 5 years old, his father lican, the top Republican on the Senate fact, that Senator REID gave him a cou- Hugh Gregg was elected Governor of Health, Education, Labor, and Pen- ple of nicknames late in his career. the State. JUDD went on to Phillips Ex- sions Committee, and, most impor- First he called him the ‘‘see-if-we-can- eter Academy for high school in the tantly from our Conference’s point of mess-up-the-legislation guy.’’ After mid-1960s and to Columbia University view, on the Budget Committee, where that, he described JUDD as ‘‘somebody after that, graduating with a degree in his knowledge and command of the who comes into a basketball game, not English in 1969. It was an eye-opening issues always impressed the rest of us. to score points, just to kind of rough experience being in New York City, He was clearly the right man for the people up, just to kind of get the game particularly in those years. JUDD took job. When the budget came up, I think going a different direction.’’ it all in. He jokes that his minor in col- we would all agree on our side of the I think JUDD and I would both agree lege was subway exploration. aisle, when JUDD stood up and had that is a heck of a compliment. In fact,

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this is Senator GREGG’s reaction to cessful deliberative democracy in history. are losing theirs and blaming it on those nicknames given to him by the It’s an honor to serve there. you.’’ Once he had determined the Democratic leader: To say that I tried to convince JUDD right thing to do and how to do it, he I appreciate the Senator’s comments. I to stay is an understatement. would very calmly come up with a plan take them as a compliment. I have been ac- But he knew it was his time to move of action that made it happen, and tive legislatively. That is, obviously, our job. on and to write the next chapter in his then follow his strategy step by step It is funny how people see things dif- life. While Senators come and go all without ever wavering from his plan. ferently. I never saw JUDD as a Bill the time, I cannot help but note that In all my years of public life, as an Laimbeer-type player out on the court when JUDD walks out of this Chamber— observer and a participant, I do not just to rough people up. I always saw when he walks out of this Chamber for think I have ever worked with anyone JUDD—sticking with the basketball the last time—he will leave an enor- quite like him. No one speaks better off metaphors for a moment—as the intel- mous void. the cuff than he does. Even in a few ligent point guard, as the ideas guy So I will close, old friend and col- casual remarks, his context and focus with the extraordinary judgment, as league, by saying you certainly are showcase his natural talent for the art. the type of guy who could see the going to be missed. We wish you well in He knows the right words to say and whole floor, the big picture, and could your future endeavors. Thank you for how and when to say them for max- make the unselfish play that would win your service. You have done an ex- imum impact. That means more often the game. traordinary job. than not he knew how to present the Over the years, that is exactly what I yield the floor. perfect argument that could not be re- JUDD did for our team. He has been in- The PRESIDING OFFICER. The Sen- futed. Year after year, that great tal- strumental in our efforts to hold the ator from Wyoming. ent has shown itself on the floor and in line, slow down or call out the Demo- Mr. ENZI. Mr. President, I want to committee as he took a more and more crats these past 2 years in particular say a few words about the Senator active role in our deliberations on a on an agenda that we viewed as deeply from New Hampshire as well. long list of subjects, including but not harmful to our future. He has been an I have had the pleasure over the limited to budget reform, education re- indispensable member of the team. In years of serving with him and watching form, and entitlement reform. He has, fact, I am not sure where we would be him and learning from him, as we did for instance, been a very strong sup- now without him, and sometimes I once again today. It is always amazing porter of the need for Congress to take have wondered where we will be a few at these going away speeches that we action to address the problems cur- years down the road without him. But learn things we did not learn about rently facing Social Security, Medi- he leaves his example, and he leaves them during the 18 years they served. care, and Medicaid. This has been most the knowledge he has passed on along So I appreciate Senator MCCONNELL’s recently evident as the ranking mem- the years, and we will all continue to comments and some new insights ber of the Budget Committee and an draw on that in the years ahead. there. active member of the President’s Na- JUDD was recently asked what the But I know Senator GREGG at one tional Commission on Fiscal Responsi- hardest thing about being a Senator time moved from being the chair of the bility and Reform. was, and he answered without hesi- Health, Education, Labor, and Pen- To put it quite simply, during his tation. The hardest thing was being sions Committee to being chair of the service in the Senate, he has been the away from his family. It is another Budget Committee, and that gave me younger generation’s best friend, as he principle on which he never, ever the opportunity to be the chairman of has done everything he possibly could hedged. the Health, Education, Labor, and Pen- to ensure that our children and grand- I made a decision early on in my career sions Committee. For that I will al- children would have it as good as we which I’ve carried throughout my career— ways be grateful, and I hope I have did—if not better. that if the choice was between being here made good use of the things he taught Senator GREGG has been a true leader and being with something that was impor- me when he was in that position. on budget reform issues for his entire tant to my family, I would be with my fam- Over the years as we have watched public service career. One of his great- ily. Maybe my children feel differently, but I Senator GREGG in action in committee don’t think I have missed anything that was est successes as the chairman of the really critical in their upbringing. or on the floor we have all learned a Budget Committee was the passage of lesson or two about how to be a more Which brings us to Kathy, as JUDD the Deficit Reduction Act in 2005. It indicated, a wife of 37 years, a cher- effective Senator. That is why when I was the first time in 8 years that the ished member of the Senate family. We look back on Senator GREGG’S career, I Congress took the necessary steps to are so grateful for Kathy’s grace and will always think of him as one of the curb entitlement spending and begin to patience with the demands of public best of my Senate mentors. Over my 14 put our country’s fiscal house back in life, along with her important work in years in the Senate, I have learned order. In his own words, Senator GREGG education, promoting the arts, the en- more from him than almost anyone said the following on December 21, 2005: vironment, and historic preservation, else. This bill represents a reduction in the fed- I know no one knows better how this as well as her work in raising aware- eral deficit of nearly $40 billion over five Senate operates and the procedural de- years. Yes, there is more to be done, but it is ness about child abuse. Somehow, she tails than the Senator does. If I were a step in the right direction . . . It is my and JUDD’s three children—Molly, on the other side of an issue and I saw hope that the Congress will continue the Sarah, and Joshua—managed to put up hard work we have done here, by seeking to Senator JUDD GREGG getting up to with JUDD’s three decades of public reduce the rate of growth of government at plead his case, I know I would feel a service, and we thank them all for every opportunity. By focusing on how to sense of grave concern as I listened to sharing JUDD with us all these years in make government programs work more ef- him that would only increase in Washington. fectively and at a lower cost. And by making strength and intensity. It is always a One of JUDD’s greatest assets as a fiscally responsible decisions about what Senator has been his profound love for worry for either side when he unfolds, kind of economic future we want to leave to our children and grandchildren. this institution and his gratitude for if he might be on the opposite side. having had a chance to serve as a Mem- But, on the other hand, if he is on the As an accountant, Senate colleague, ber of it. He never took this place or floor to express support for my posi- and his friend, I could not have been this job for granted. As he once put it: tion, I would sit back, relax, and watch more proud of the bold step Senator him in action with great relish. GREGG took in addressing our Nation’s From my first day in the Senate to today, I remain in awe of this fabulously inter- He is a brilliant legislator and orator deficit by drafting, promoting, and ul- esting place. When I’m on the floor and I because he is always one to follow the timately enacting the Deficit Reduc- look around and take in its history, it never admonition of Rudyard Kipling to tion Act. We will miss his leadership on ceases to hit me that this is the most suc- ‘‘keep your head when all about you the Budget Committee.

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As a member of the Health, Edu- friendship and for serving as such a then-Governor GREGG who swore me in cation, Labor, and Pensions Com- great resource for us all during your for the first time. When I was elected mittee, it was good to have a chance to service in the Senate. to the Senate, he was the first Repub- see how well he worked to get things Before I close, I know I would be re- lican to call me, not just to offer his done in committee. For example, he miss if I did not also say a quick congratulations but to offer his advice worked well with Senator Kennedy on thank-you to your wife Kathy. As we and help in getting started in Wash- creating and passing the No Child Left both know from serving in the Senate, ington. Behind Act. He was able to bring to- there are a lot of late nights, trips both The Senator and I have followed gether Senator Kennedy and President home and abroad with little notice, and similar paths to the Senate, although Bush to work on a common goal for our a lot of other things we have to deal his service has been longer than mine, Nation’s children and our country’s fu- with because they come with the job. although we are the same age. ture. Our wives never complain, but we both What he was able to accomplish dur- know they have every reason to do so. So I will not say your service has ing those days has made a difference They probably do not because they been older than mine, JUDD. and it will continue to do so for many know, as well as we do, we could not do But I think that experience—both of years to come. Because of the work he what we do without them by our side. us having served as Governor, leading has been such an important part of, They are our greatest supporters, our New Hampshire—has given us a much countless Americans are living better, best friends, our most trusted political more similar mindset than most people more rewarding, and more fulfilling advisers, and the ones who always would expect. I think it contributes to lives all over the country. make sure we are heading in the right our concern about controlling the debt Needless to say, the people of New direction. and ensuring that this government is Hampshire were very fortunate he was So while I am thanking you for your functioning in the best interests of all willing to serve in so many posts over service, I think Kathy deserves a word of its citizens. I, again, appreciated his the years. I have no doubt his insights of thanks too. Together you have been commitment to addressing that debt on the law and how it affects the peo- a remarkable team, and that is why for future generations in his remarks ple back home come from his experi- New Hampshire is so proud to claim this afternoon. ence on every level of our government. both of you as their own. While we have not always agreed on Since he first arrived in the Senate, In the days to come, Diana and I will the best approach to solve those prob- with every trip home his constituents not be the only ones who will miss you lems, Senator GREGG’s civility has would tell him how the changes in the and Kathy. Fortunately, we know never wavered. Since coming to the law were affecting them and their busi- where to find you—right near the Senate, I have noticed that he extends nesses and, if they are like the people ocean. We had so much fun there when that same civility and courtesy to col- of Wyoming, they also gave him some we had the chance to explore it with leagues on both sides of the aisle. In a very valuable suggestions on what we you both earlier this year. The fishing town that is not always known for its could do in the Congress to address was pretty good and the scenery was good manners, Senator GREGG reminds their concerns. I always tell my con- just magnificent. Just let us know us we can disagree without being dis- stituents to share their good ideas with when the fish are biting, and we will be agreeable. me. It is my secret weapon and it real- there. Come to Wyoming anytime. ly helps me to make a difference. I am Good luck in your future. Thanks for Senator GREGG, of course, is known sure it has been the same for him. all you have done for us. for his expertise on budgetary matters I do not know what he has planned I yield the floor. and his dedication to one of the gravest for the coming years, but one thing I The PRESIDING OFFICER. The Sen- issues that faces this country; that is, feel certain about: We have not heard ator from New Hampshire. its rapidly ballooning deficit. His ex- the last from JUDD GREGG. That will be Mrs. SHAHEEN. Mr. President, I am pertise will not be easily replaced, es- a good thing for all of us, as well as the honored to be here on the floor today pecially at a time when our Nation so younger generation who is very con- to join Senator MCCONNELL and my urgently needs a New Hampshire-style cerned about the legacy we are leaving other colleagues in recognizing the approach—strong, bipartisan, and no- behind for them. As he has pointed out service Senator JUDD GREGG has pro- nonsense. It is a concern about the def- repeatedly, it would not be fair for us vided to the people of this country, and icit that we share, and I hope in some to continue to spend their inheritance for us, importantly, to the people of small way I can continue his search for to such an extent that they will be left New Hampshire. solutions to this challenge. with a huge deficit and an economy so I have had the good fortune to know What might be less known to people slow and weak that they will not have Senator GREGG since I first got elected in Washington—although Senator any possibility of paying it off without to public office. In the New Hampshire MCCONNELL mentioned it—is Senator a great deal of pain and difficulty. political tradition, you learn to work GREGG’s passion for the preservation of They are counting on us to do the right together with people on both sides of open lands. He is a conservationist in thing to ensure they have the same ad- the aisle for what is in the best inter- the fine Republican tradition of Teddy vantages and ability to access the ests of New Hampshire. Senator GREGG Roosevelt, and he has helped preserve American dream we have had. has been a fine example of that tradi- New Hampshire’s wonderful legacy of There is an old Native American say- tion. forests and lakes. ing: We have not inherited the Earth I have enjoyed working with him from our ancestors, we are borrowing it over the years, and his presence in the For those of you who may some day from our children. If we follow this Chamber and the Senate halls will be visit the New Hampshire statehouse, lead and use that frame of reference as missed both by me and, as we have al- you will be surprised to see that Sen- our guide, we will be able to ensure ready heard, by the rest of our col- ator GREGG appears in his formal gu- bernatorial portrait in the mountains their future will be as promising as leagues. I think, as Senator GREGG was they have every right to expect and de- giving his remarks, the number of Sen- of New Hampshire, as I think is fitting mand. ators who were here to say goodbye for somebody who cares so much about As the end of the current session of shows the respect and how much he the environment. Congress approaches, I know I am not will be missed by all of our colleagues. In 2001, when I was Governor and the first, nor will I be the last to say Throughout my own public life, I Senator GREGG was here, we worked to- thank you, JUDD, for your willingness have always appreciated the civility gether to preserve the Connecticut to serve the people of New Hampshire and generosity Senator GREGG has Lakes Headwaters. At more than and the United States for so long and shown me. When I was elected to the 171,000 acres, it was the largest contig- so well. Most of all, thank you for your State senate in New Hampshire, it was uous block of land in New Hampshire

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00021 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.000 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19828 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 in private ownership, and with his lead- has been dedicated to one goal: ensur- cation to our country and the State he ership we were able to ensure that fu- ing that our country’s children and loves so much. We wish both JUDD and ture generations could enjoy the beau- grandchildren inherit a just and pros- Kathy all the best. ty of this beautiful working forest and perous nation where the American Thank you. part of New Hampshire. dream can still be a reality for millions The PRESIDING OFFICER. The Sen- As another well-known Senator— of hard-working families. The idea of ator from Tennessee. again, one that JUDD alluded to when saddling future generations with tril- Mr. ALEXANDER. Mr. President, he spoke—Daniel Webster once said: lions in unpaid bills has always been an during the 1980s, somehow the Senate We have been taught to regard a represent- anathema to Senator GREGG. took a survey among themselves about ative of the people as a sentinel on the Although fiscal issues have been who was the most admired Member of watch-tower of liberty. JUDD’s passion, the soaring and the Senate, and according to press re- In Congress and the Governor’s of- unsustainable debt has not been his ports, Senator Howard Baker of Ten- fice, in Washington and in New Hamp- only focus. For example, two years ago, nessee was the most admired Senator shire, Senator GREGG has served as Senator GREGG helped lead a coalition by both Republicans and by Democrats. that sentinel. He will be missed. I join that called for a bipartisan national If such a survey were to be taken my colleagues and the people of New summit to develop an energy strategy today, JUDD GREGG would certainly be Hampshire in wishing him and Kathy for our country. He recognized and at the top of that list for most of us. and their whole family well in all of warned against our over-reliance on There is not a better Member of the their future endeavors. foreign oil as a threat to our Nation Senate. I yield the floor. that forces one energy crisis after an- Much has been said about him, so I The PRESIDING OFFICER. The Sen- other on the businesses and families of will say three things quickly because ator from Maine. our great country. Senator GREGG has there are other Senators who wish to Ms. COLLINS. Mr. President, as I lis- been a powerful advocate for a com- speak. First, JUDD GREGG is of New tened this afternoon to Senator mon-sense, achievable energy policy Hampshire, not from New Hampshire. GREGG’s farewell address, I thought that balances increased domestic pro- Sometimes we say, Senator so-and-so about how much all of us who have duction, conservation, and the develop- is from Tennessee or from New York or been privileged to serve with him will ment of alternative and renewable from South Dakota or from Maine, but miss his wisdom. But for me, the loss fuels. As his colleague from New Hamp- the Senator whose roots are where will be even more intense, for there is shire mentioned, JUDD’s work to pre- roots are supposed to be is ‘‘of’’ his no one to whom I have turned more serve open space in New Hampshire has State. JUDD GREGG sounds as though he often for advice during the past 14 led to the conservation and protection is from New Hampshire. He acts as years than my neighbor from New of more than 330,000 acres of sensitive though he is from New Hampshire. He Hampshire—unless, of course, it was land, leaving a tangible legacy for fu- is from New Hampshire. He votes as his wife Kathy, who also gave very ture generations to enjoy. though he is from New Hampshire. The good advice. Senator GREGG is also committed to Old Man of the Mountain, which was a JUDD’s extraordinary knowledge of so strengthening our national security. In rock up in New Hampshire, could be many issues, his keen insights into pol- 2005, I was honored to join with him seen by those who drove by it. The icy and politics, and his abiding friend- and thousands of people throughout rock fell down a few years ago and I ship have meant so much to me. I truly Maine and New Hampshire in saving thought: Well, maybe the best way to cannot imagine a debate in this Cham- the Portsmouth Naval Shipyard, which replace it is to put JUDD GREGG back ber about the budget, spending, entitle- is, by the way, in Kittery, ME, not up there because he is of New Hamp- ment programs, or taxes without his Portsmouth, NH, but it was indeed a shire. leading it. Given his strong work ethic, joint effort. Standing together under Second, JUDD GREGG is a very good his commitment to the prosperity of Senator GREGG’s leadership, our two politician. I know that from direct ex- future generations, and his unwavering delegations, working with the people of perience. There is such a thing as the dedication to doing what is right, I am our two States, prevailed. In addition ‘‘Gregg machine’’ in New Hampshire. confident his clear call for action on to saving the shipyard, JUDD has been Those who have the temerity to run for our fiscal crisis will continue to be in the forefront in strengthening and President find that out. It was on the heard and to be influential in the de- modernizing it. Thanks to his efforts, other side of my efforts when I was bates ahead of us. the U.S. Navy submarine fleet remains there, and to give an example, one day Raised in a family devoted to public unsurpassed as our Nation’s shield and a reporter asked me: Well, Mr. ALEX- service, Congressman, Governor, and our sword. ANDER, what is the price of a gallon of now Senator GREGG has always been As chairman for years of the Home- milk? Of course, I knew what a gallon guided by the principle that the public land Security Appropriations Sub- of milk costs, but I made the mistake interest is paramount and the public’s committee, Senator GREGG recognized of turning around to someone and ask- trust is essential. As a strong voice for the threat we faced from radical Is- ing, just to make sure what it was. A fiscal discipline and a champion of bi- lamic terrorism, and he ensured that press person overheard it, and the next partisan solutions, Senator GREGG has the resources were provided to help thing I knew, the ‘‘Gregg machine’’ had always upheld those principles. protect our homeland, while elimi- spread that story all over the state Senator GREGG faced up to the loom- nating funding that was ineffective or that this fellow in a red and black shirt ing entitlement crisis and our inequi- extravagant. didn’t know what the price of milk table tax system by introducing com- This is quite a career. Throughout was. So they are a very intimidating, prehensive, bipartisan bills to address his long and distinguished life in public effective crowd in New Hampshire. both concerns. His sponsorship of legis- service, JUDD GREGG has been a cham- The third thing, the final thing I will lation early this year to establish a bi- pion of good government, an inde- say about JUDD is one reason I admire partisan commission on fiscal responsi- pendent and creative thinker, and a bi- and like him so much is that I so often bility brought to the forefront of the partisan problem solver. He has fought agree with him. I agree with him on national debate our debt—a debt that for the public interests and has earned conservation issues, on education America can no longer ignore. the public’s trust. I know that, not issues, on fiscal issues but especially Senator GREGG’s service on the Presi- only the people of New Hampshire and on his view of this body, which he ex- dent’s commission demonstrated his Maine, who know him well, but people pressed so eloquently many times but determination to present to the Amer- all across this great country join me especially in his remarks today. JUDD ican people an analysis of the tough today in thanking Senator JUDD GREGG GREGG knows and understands that choices we must face and the means to for his exceptional leadership, count- this body is the Citadel of the protec- return to fiscal sanity. As always, JUDD less accomplishments, and fierce dedi- tion of liberty in our government. He

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00022 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.000 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19829 said that today. It is the place where before I speak to the issue of the day now, families and small businesses we avoid the tyranny of the majority. and express my appreciation to Sen- across this country are going to see It is a place where the voices of the ator GREGG for his great service to this their taxes go up if Congress doesn’t American people are heard, where we institution and to our country. I think take action on the tax relief proposal have open amendment and open debate. it is fair to say there is nobody quite that is currently before the Senate. He has been an effective advocate for like JUDD GREGG. He truly is one of a There are elements of this proposal I that. He understands we are not just a kind. don’t like. I think it is fair to say there debating society, but that in the end, I remember when I first got here, I are a lot of us here who, if we were able we are a governing body; that the pur- thought he didn’t like me, and maybe to write this, certainly wouldn’t have pose of our 60-vote majority is to force he didn’t like me, but I concluded that written it in the fashion we have in consensus and a compromise so we can part of that was just his serious de- front of us today. But letting the per- act, so we can do our job. meanor. He is a guy who means busi- fect become the enemy of the good will JUDD leaves a wonderful legacy. He ness. Once you get to know him, you result in one thing and one thing only; has many friends here. He will con- not only appreciate that side of his per- that is, higher taxes across America in tinue to have many friends here, this sonality, but you also gain an apprecia- 2 weeks. Senator who is of New Hampshire, who tion for the incredible wit and sense of It is easy to stand on the sidelines is a pretty good politician and with humor he also possesses. I have had the and to criticize this proposal, and it is whom I so often agree. My special best opportunity to experience that on perhaps even politically expedient to wishes to his wife Kathy, with whom I many occasions. stand on the sidelines and criticize this also agree. Thank you. I think what the institution is going proposal. But let me make one thing The PRESIDING OFFICER. The Sen- to miss the most—he is certainly some- very clear. Advocating against this tax ator from Tennessee. one who cares a lot about this coun- proposal is to advocate for a tax in- Mr. CORKER. Thank you, Mr. Presi- try’s future and the policies we put in crease, and that is something we can- dent. I appreciate the Senator from place—is his abilities, his great skill not and the American economy cannot South Dakota allowing me to speak for and his great talent. It will be a real afford. about 60 seconds. I don’t give long It would be great if we could wait a loss to the Senate because JUDD GREGG few weeks, until we have a changeover speeches on the floor. I seldom use has a mind like a steel trap. He is able in the Congress. Frankly, I would be notes. I know Senator GREGG knows to analyze with great effectiveness the very happy to see a bill written a few this, but I have been here 4 years, and issues of the day and to explain them I can honestly say one of the greatest weeks from now when the newly elect- clearly. He is someone in whom I have highlights of my 4 years has been being ed Republicans are going to be sworn tremendous respect. He has been a able to serve with Senator GREGG. I in. But that is a luxury that doesn’t great mentor, a great leader, and some- know of no one in the Senate whom I exist because of this reality that we one, as I said before, we are going to hope to be remembered even close to as have—this deadline looming in front of miss around here. far as my service. I know of no one us. If we wait for the perfect proposal, I can’t say enough about how much I whom I think creates a better example the perfect agreement, then American appreciate his service and the service for those of us in the Senate. I know of families and small businesses are going and the sacrifice his family has made. no one whom I respect more than Sen- to pay higher taxes just 2 weeks from He has served in public life for many ator GREGG. I know he knows that. I now. That is not a scare tactic, that is years, both as a Congressman, Gov- know his wonderful wife Kathy knows not political posturing, that is simply ernor, and a Senator. His wife Kathy, that. a fact. I think, upon his departure, there similar to many of our wives, puts up Taking action now to prevent this will be a tremendous vacuum. I think with a lot of things. JUDD, similar to tax increase would do a number of all of us understand what each of us is me and many of my colleagues, I think, things. First, it would protect 21 mil- going to have to do to try to fill a com- I would say probably married over his lion households from being hit by the ponent of the shoes of the Senator from head or, as one of my friends said, alternative minimum tax in the year New Hampshire or the example he has outpunted his coverage. But we are 2010. It would preserve relief from the set. grateful to his family. marriage penalty. There are many pro- So I just want the Senator to know We are going to miss the many con- visions of the Tax Code today—some of he certainly has raised my thinking as tributions he has made, but probably which have been addressed in previous to what it means to be a Senator in the none more than the passion with which tax law, expiring tax law—that lessen Senate. Each of us have frailties and he approaches this job and the passion the impact of being married. Iron- each of us have strengths. There are al- with which he approaches building a ically, in the Tax Code, we punish peo- ways going to be occasions when Sen- brighter and better and stronger and ple for being married in this country. ators cause us to rise because they in- more prosperous future for future gen- Taking action now would prevent job- spire us. They do things that are inspi- erations. There has been no clearer killing tax increases on many of our rational. There are always going to be voice on the issue of fiscal responsi- small businesses across this country, times when Senators disappoint us be- bility, no clearer voice when it comes and it would protect farmers and cause we are human beings, and that is to the important task we have in front ranchers from the death tax that would the way human beings are. But I can of us, to insist that we take steps and confiscate over half the value of the say that you, more than anybody in we put policies in place that will make family farm. the Senate, have caused me to want to the country stronger and better for fu- What happens if we don’t pass this be better more times than anyone and ture generations. tax proposal? Well, according to a num- have disappointed me fewer times than So I wish to compliment as well my ber of economists, we would see a drop anybody in the Senate. I will miss you. colleague from New Hampshire. I have in the gross domestic product from I wish you well, and I thank you for heard from folks from other parts of somewhere between 1.7 percent to 2 being my friend. the country. As someone who comes percent. That is according to a number The PRESIDING OFFICER. The Sen- from the Midwest, I wish to say how of private economists. Even the Con- ator from South Dakota. much I appreciate JUDD GREGG, the in- gressional Budget Office suggests we Mr. THUNE. Mr. President, I ask credible contribution he has made, and would see about a 1.4 percent negative unanimous consent to speak for up to I, similar to so many others, will miss impact in our economy, in the gross 15 minutes. him greatly. domestic product, if we don’t take the The PRESIDING OFFICER. Without Mr. President, let me, if I might, action necessary to prevent these tax objection, it is so ordered. speak to the issue before us today. We increases. Mr. THUNE. Mr. President, I also are debating a tax proposal, and on Failure to act now, according to the wish to join with my colleagues today January 1 of 2011, just 17 days from Tax Foundation, with regard to my

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00023 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.000 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19830 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 State of South Dakota, would cost the and deficits and debt doesn’t have to do think that is why there is such broad average family in South Dakota about with the fact we don’t have enough rev- public support for this tax proposal, be- $1,700 a year in higher taxes. The aver- enue, it has to do with the fact that cause the American people recognize age American household would be faced Washington spends too much, and that that you can’t raise taxes in the middle with higher taxes to the tune of about is where we ought to be targeting and of a recession and expect the job cre- $3,000. If we don’t take the steps that focusing our efforts. ators in this country—our small busi- are necessary to address the death tax Historically, if you look at the last nesses—to create jobs. It is counter- on January 1, the death tax kicks back half century, I think the amount we intuitive and it defies all empirical in at $1 million—a $1 million exemp- spend for our government as a percent knowledge and experience that we have tion—and everything above that would of our gross domestic product hovers to suggest otherwise. On the other be taxed at 55 percent. So imagine the somewhere in the 201⁄2 percent range. hand, the American people do believe impact on a farmer, a rancher, a small Today, it is about 24, 25 percent we are that government has gotten too big, businessperson in this country, who is spending on government as a percent- that it is growing too fast, and it needs trying to pass on that operation to the age of our total economy. to be reined in. That is where we have next generation, and what this would We have complicated and added to to attack the spending side of this mean in their ability to do that. that burden by enacting major legisla- equation. I believe when the new Con- As I said earlier, this is not a perfect tion in this last year. The massive new gress is seated next year there is going agreement, but no compromise is. The health care entitlement program, when to be an intense focus on this issue of fact we are dealing with Democrats, it is fully implemented, will cost on spending, and it is high time that hap- who still run both the House, the Sen- the order of $2.5 trillion. We have lots pen, because it is high time we get the ate, and the White House, if we want to of other legislation that has moved debt and the deficit issue that will stop taxes from going up on everyone, through here. The stimulus bill passed plague future generations under con- then we are going to have to figure out earlier this year was $1 trillion of bor- trol. The real issue doesn’t have to do a way to get that done. And if we stand rowed money, which didn’t have the de- with revenue, it has to do with spend- around trying to debate the perfect, sired impact. The one thing we know ing. then taxes are going to go up on fami- with certainty is that—at least based So I would urge my colleagues to lies and businesses and our economic on history—when you raise taxes, you support this proposal. As I said earlier, recovery is going to stall out. get fewer jobs; when you lower taxes, it is not perfect—certainly not in my I think it is also important to note you get more economic activity, more estimation, nor I think in the eyes of that it will send a negative message to jobs for the American people and, many people who have looked at this. the financial markets. If we don’t take frankly, more revenue. That helps to But on the other hand, it does prevent action to address this crisis looming in deal with the issue of the deficit and us, on January 1, from seeing a massive front of us on January 1, we can expect the debt. tax increase—the largest tax increase the 9.8-percent unemployment rate In this particular proposal there is in American history—start to hit could go significantly higher. some new spending. There are unem- American families and American small I would simply argue that inaction is ployment benefits included. I would businesses. That is why I hope we will not an option, and advocating against like to have seen that offset. I had an pass it out of the Senate with a big bi- this proposal is no different than advo- amendment that would do that, that partisan vote. cating for higher taxes. I hope that my would pay for the additional spending Mr. President, I yield the floor. colleagues will see their way to support in this bill. We are not going to have The PRESIDING OFFICER (Mr. this today and to support it in big the opportunity to offer amendments, MANCHIN). The Senator from Iowa. numbers. It will go from here to the but there will be a couple of motions FOR-PROFIT EDUCATION INVESTIGATION House of Representatives, and they will offered by my colleague from Okla- Mr. HARKIN. Mr. President, for more look closely at the vote coming out of homa, Senator COBURN—motions to than 50 years, the Federal Government the Senate. I think it is fair to say, if suspend the rules and pay for the addi- has provided students with grants and and when it gets to the House of Rep- tional $56.5 billion in new spending as a loans to help pay for college. That is a resentatives, it will pass provided the result of extending unemployment ben- public-private partnership between the Senate sends a very strong message—a efits in the bill. I think that is impor- government and the students, between message I think consistent with the tant for us to do. our taxpayers and students. It is an in- will of the American people. In fact, Since we got into this recession, we vestment premised on the idea that a according to public opinion polls, one have spent, I think, about $124 billion, higher education will improve life for as recent as this morning, 70 percent of borrowed from future generations for the borrower and also will strengthen Americans believe and agree this tax these extensions that we continue to our society by giving more Americans proposal ought to be enacted and pass for unemployment benefits. This the knowledge and skills to get better signed into law. particular one would take us up to al- jobs and to be able to give back to The real issue that I think affects most $180 billion in borrowed money to their communities. our fiscal situation in this country pay for these benefits. It makes sense, I know firsthand how higher edu- isn’t the fact we don’t have enough rev- in my judgment, when you are spend- cation can transform one’s life. I went enue, it is that we spend too much. If ing new money, you should offset or to college on student loans and to law we look historically—and it is an em- pay for that. Frankly, I would like to school on the GI bill. That is why I pirical fact—at what happens when you see that as part of this proposal. It is have spent my career in Congress fight- lower taxes—look at John F. Kennedy, not in there. As I said, I have an ing to ensure that all students who at Ronald Reagan, and George W. Bush amendment to rectify that, which wish to learn, who wish to get a college in recent history—anytime you lower won’t be considered because we are not degree, also have the opportunity to do marginal income tax rates, taxes on in- being given the opportunity to offer so. I have worked on the Appropria- vestment, you get more revenue, not amendments. But I will support the tions Committee to expand funding for less revenue. That is an empirical fact. motion to suspend the rules and pass a Pell grants and student support pro- You also get a growing economy. When pay-for for the unemployment benefit grams. And now, as the HELP Com- you have a growing economy, it is ob- extension the Senator from Oklahoma mittee chairman, I have worked to ex- viously creating more jobs, and that is will offer later. pand Pell grants to make sure our stu- what we want to see happen. We want All that to say again the real issue dent loan programs are well run. to get this 9.8-percent unemployment here, in my judgment, comes down not For the past 2 years, Congress has rate down. to an issue of revenue but it comes provided significant resources to help I would argue that the issue we have down to an issue of spending. I think students access and finance a college in front of us with regard to spending the American people recognize that. I education. In 2008, we increased the

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00024 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.000 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19831 amount of Stafford loans that under- vide for her daughters, so she enrolled eral arts graduate degrees, and some graduates can borrow by $2,000 a year. and paid out $29,000 for an 18-month for-profit schools enroll not a few hun- The Recovery Act of 2009 provided an- program. dred students but in some cases a few other $17 billion to the Pell grant pro- The recruiters at Sanford-Brown did hundred thousand students. If these gram. The recent reconciliation law not tell her that she could have gone to schools were providing high-quality added another $36 billion to Pell grants the local community college and re- education for most of their students, over the next 10 years. So the Congress ceived the same degree for $7,000. They those numbers would be a cause for has made hard choices to secure these also didn’t bother to tell her that her celebration. Instead, they are a case for increases for financial aid programs. degree at Sanford-Brown wouldn’t even concern, and these concerns are long- The money is an investment in our Na- allow her to sit for the sonography standing. tion’s students and also in our coun- exam. Nor did they tell her that with- Twenty years ago, former Senator try’s future. For that investment to out passing the exam, she would not be Sam Nunn of Georgia held a series of pay off, we must ensure that students able to work as a sonographer. So after hearings looking at the for-profit sec- are being well educated and that $29,000 invested, 18 months of hard tor, and because of the problems he schools are using Federal dollars re- work, Ms. Issa couldn’t even sit for the found, he initiated a series of legisla- sponsibly. To ensure our investment is exam. tive fixes to ensure that for-profit paying off, earlier this year I initiated Ms. Issa is not alone, but she and stu- schools were a good investment for stu- an oversight investigation into for- dents like her are the reason I decided dents and taxpayers. As with many profit education companies. Education we in Congress need to take a closer laws, 20 years has taken its toll, and companies that make a profit for look at this for-profit college situa- those reforms have been almost com- shareholders and investors are growing tion. After three hearings, I believe it pletely rolled back. We find ourselves at an astonishing pace. Enrollments, is an important time to report back to today facing some of the same prob- profits, and share of the Federal finan- the Senate on what we have found to lems, with few tools in place to provide cial aid budget going to those schools date. So today I am going to take the genuine oversight of our taxpayers’ in- are skyrocketing. time to walk through the findings of vestment. In 2008, these for-profit schools ac- each of these three hearings, talk What has not changed is that, unlike counted for 10 percent of the students about the problems facing these stu- public or nonprofit schools, proprietary enrolled in higher education, but those dents and taxpayers, and conclude by schools are legally bound to operate in students received 23 percent of Federal talking about where the HELP Com- the interest of their owners. As the student loans and grants and they ac- mittee investigation is going in the companies have gotten larger, they counted for 44 percent of the defaults. coming years. have been transformed from mom-and- Again, for-profit schools, 10 percent of The first hearing in June asked what pop operations into high-growth, high- the students, got 23 percent of the Fed- are for-profit colleges? We focused on investment, big businesses. Fifteen for- eral loans and grants and accounted for this issue following dozens of troubling profit education companies that oper- 44 percent of the defaults. reports about students being ripped off ate 69 schools with an enrollment of 1.5 Confronted with numbers such as by for-profit colleges. The New York million are actually publicly traded on these, I became increasingly concerned Times, Bloomberg News, ‘‘Frontline,’’ the New York stock exchange or on a significant share of our Federal in- even Good Housekeeping had reported NASDAQ. Another 33 for-profit edu- vestment in higher education is being extensively about the growth of feder- cation companies operating 65 more misused and that some companies are ally funded, for-profit higher education for-profit schools are at least partially using the Federal aid program as a corporations. Our first task was to get owned by private equity investors or cash machine to drive up profits as a sense of what these for-profit colleges hedge funds. The result is that the vast their main purpose. Across the coun- were, how big they were, and how well majority of for-profit schools have try, some higher education companies they were serving our students. Given prioritized growth over education in are using a high-pressure sales force, that these companies receive almost order to satisfy the demands of their persuading consumers in search of the all of their revenue from Federal dol- investors. In fact, growth and return on American dream to go deep into debt lars, one would think all of this infor- investment for shareholders is their to purchase a product of often dubious mation would be easily available to the legal obligation. So it should not sur- value. public and not require a congressional prise us that educating students is tak- Default rates are sky high, taxpayer investigation to unearth. But, unfortu- ing a backseat to just getting more money is being squandered, top execu- nately, that was not the case. bodies in the door. tives walking away with fortunes. You First, what are for-profit colleges? For-profit colleges traded in the might think I am talking about the For-profit colleges or proprietary insti- stock market are a relatively recent subprime mortgage industry, which tutions, as they are known in the law, phenomenon that has created a dras- came crashing down 2 years ago, be- are institutions of higher education tically transformed landscape for us cause that does describe it. But what I that provide a program of training to here in Congress, the legislators. As I have just described is also the situa- prepare students for gainful employ- said, in 1992—the last time Congress tion created by many for-profit col- ment in a recognized occupation. Es- took a serious look at this sector under leges. Just as in the subprime mort- sentially, in 1965, we recognized that Senator Nunn—there were no publicly gage crisis, countless thousands of or- career or vocational schools, as they traded, for-profit higher education in- dinary Americans are being harmed by were then known—most of them were stitutions—none, zero. In 2010, 15 pub- the reckless pursuit of profits by a few. privately owned—played a valuable licly traded institutions enrolling a This summer, I heard testimony from role in our education system and that million and a half students are in exist- Ms. Yasmine Issa, a single mother of the people who attended the schools ence. That is just publicly traded. twin girls. Two years ago, she went should be able to get financial aid to There are many more that are equity back to school to earn her degree in attend them. At the same time, we re- owned, owned by equity investors or medical sonography. She went on line, quired these schools to demonstrate hedge funds, which also did not exist 20 typed in sonography, and found an ad- that students were being prepared for years ago. vertisement for the Sanford-Brown In- gainful employment in a recognized oc- To satisfy shareholders, publicly stitute, part of a chain of for-profit col- cupation—something we do not require traded schools must constantly focus leges owned by Career Education Cor- of 2- and 4-year programs at public and on growth, measuring up to Wall poration, a publicly traded company. nonprofit schools. Street’s laser-like attention to quar- The folks at Sanford Brown sold Ms. Today, we find ourselves in a world terly enrollment statistics. Publicly Issa on the value of their program. where proprietary schools offer every- traded schools must also generate They told her how it would help pro- thing from basic school training to lib- higher revenues while keeping down

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00025 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.000 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19832 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 costs, including teaching costs. These has had its operation shut down in More than 93 percent of the students schools do this by raising tuition and Texas, and it was told not to operate in these schools take out Federal stu- increasing the number of enrolled stu- online in Wisconsin. No accrediting dent loans. The loans go to these dents, which in turn increases the agency seems willing to acknowledge schools. By relying so heavily on Fed- amount of Federal student aid dollars that it accredits this school, yet eral subsidies, these for-profit colleges flowing to the schools. But it does not Westwood College turned a profit of have privatized the process of col- necessarily do anything about the $46.7 million in 2009. It is owned by a lecting Federal subsidies, but they quality of the education received. hedge fund. have left the students holding the bag A focus on growth at the expense of While we call these schools for-prof- for the cost of a subpar education at a student outcomes is not just the prov- its to distinguish them from public very high price. ince of the publicly traded companies. community colleges and 4-year colleges Of course, the term ‘‘for-profit’’ is As I said, increasingly, hedge funds and and the nonprofit universities, it is not completely misplaced because, re- private equity firms invest in for-profit really a misnomer since they are large- gardless of how poorly students per- colleges and manage the business end ly federally funded through student form, as long as these companies can of the operation. For example, how loans, grants, and military benefits. As demonstrate enrollment growth, they many people know that Goldman a group our committee looked at, these remain profitable. In 2009, the same 30 Sachs—yes, the same Goldman Sachs— publicly traded companies receive at schools that received 86 percent of rev- is the owner of more than one-third of least 85.6 percent of their revenue from enues from Federal dollars generated the publicly traded EDMC—that is a Federal dollars of one sort or another. $3.5 billion in profits for the hedge for-profit college—which is the oper- That is for profit? funds, the equity investors, or stock- ator of something called the Art Insti- Under current law, these companies holders, shareholders. tute and Brown Mackie? These are col- cannot get more than 90 percent of Last year, together, all the schools leges; these are for-profit schools. A their revenue from student loans and had a profit margin of 19 percent. How vice president and a managing director grants. We call it the 90–10 rule. To me, many businesses in the State of West of Goldman Sachs sit on the EDMC that seems like a lot, but for these Virginia have a profit margin of 19 per- board. These firms are interested in companies, it is not enough. According cent, I ask, or Iowa? But that is the av- short-term profit and have little inter- to an internal lobbying document from erage. Some schools have profit mar- est in the long-term educational out- the Career College Association released gins of 33 percent. The highest we comes of the students attending the by the New America Foundation, one found was a 37-percent profit margin last year. Where did the money come schools. of the top priorities for the for-profit It certainly is not clear to the stu- college trade association is to roll back from? Taxpayers. The taxpayers of dents that the school is owned by a that rule and increase the amount of America. It is not a bad deal if you can bunch of Wall Street investors. I had Federal dollars these companies can get it. Then look at what happened with the this chart printed. These are not all of get from the government. Ninety per- executive salaries. That 85 to 90 per- them, but these are for-profit schools cent is not enough. They have clearly cent-plus of their revenues coming in owned by private equity and hedge done a good job since at least six of the from the taxpayers really paid for some funds that we were able to come up companies—Kaplan, EPCI, TUI, ACC, high executive salaries. BusinessWeek with. How many students at Ras- Remington, and Vatterott—get more recently reported that the CEO of mussen College or Morrison University than 90 percent of their revenues from Strayer, one of these schools, was paid or the Institute for Business and Tech- the Federal Government. $41.6 million last year—that is the nology or Beckfield College or Chan- You might say: Wait a second, Sen- president of a school—26 times the cellor University or Ashworth College ator HARKIN, I thought you said they highest salary paid to a nonprofit or or Florida Coastal School of Law—how were limited to 90 percent by law. private university president, probably True. Here is how they get around it. many students signing up for this know more than at the University of West The University of Phoenix, for exam- they are owned by private investors or Virginia or Iowa or Iowa State. hedge funds that operate these schools? ple, in its SEC filing acknowledged it Combined, the executives at the 15 They sound as if they are just legiti- received 89 percent of its revenues from publicly traded schools received $2 bil- mate colleges. Federal financial aid programs. Docu- lion from the sale of stock over the last An estimated 1.3 out of 1.8 million ment requests that we got indicate 7 years. Let me repeat that. Over the students attending for-profit schools in they receive an additional 1.5 percent last 7 years, these executives who run 2008 were attending schools primarily of revenues from other Federal sources, these schools started dumping stock. owned by Wall Street investors. Let me including military benefits. That They started selling all their stock repeat that. Out of 1.8 million students means even the largest for-profit back. Do you know what they got? going to for-profit colleges in 2008, 1.3 school—Phoenix—is receiving more They got $2 billion in the last 7 years million students were attending col- than 90 percent of its revenues from from the sale of their stock. leges primarily owned by Wall Street Federal taxpayer dollars. If they loved these schools so much, investors. Again, this landscape was Again, how do they do that? If you you would think they would be invest- not around 20 years ago. In fact, most get military money, that is not count- ing the money in the schools, to help of it was not around 10 years ago. ed in the 90 percent; that is counted in some of these students, maybe tutor- Here is what the hedge fund owners the 10 percent that is private. Let’s get ing, some kind of support mechanisms of Westwood College state on their Web that again. If they enroll a military for those poor students who come in site: person who gets GI bill benefits and who do not have an experience of going They always keep their eye on the ball of they put it into these schools, that is to school; that they would be doing ev- what is best for the business over the long not counted as part of the 90 percent. erything they could to make sure stu- term. That is what their nice lobbying got dents who came in stayed and did not Not the students, not the education done for them. Some of them get more drop out. of students, but they keep their eye on than 90 percent of their money from No. They sold stock and walked away the ball of what is best for the busi- the Federal Government. with $2 billion in the last 7 years. The ness, the hedge fund. That is funny, I So, again, just looking at Phoenix, co-CEO of the company that owns the thought the ball we should be keeping the University of Phoenix took in more University of Phoenix was paid $11.3 our eye on is how good a job we are than $1 billion in Pell grants last year million last year. That is more than 7 doing educating students with tax- and more than $3 billion in Federal stu- times the $1.6 million paid to the high- payer money. dent loans—$4 billion in revenue from est paid head of a nonprofit—more than Westwood is under investigation by American taxpayers for just one com- 14 times the compensation paid to the the attorney general in Colorado. It pany in 1 year. president of Harvard.

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00026 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.000 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19833 Boy, they are walking away with What the students do not know is I urge anyone interested to go to our money. Well, that was our first hear- that the loans they are taking out can committee Web site, the HELP Com- ing. What are these schools? Our sec- never by discharged—never, until they mittee Web site, and listen to those ond hearing that we had in August, we die. We talked a lot about the subprime GAO tapes for themselves. In fact, the featured testimony from the Govern- and how many people were left with 30 companies from which I requested ment Accountability Office, the GAO, houses they bought that they could not information spent a combined $4.12 bil- focused on how for-profit schools go pay for. Here is one difference. You can lion in marketing in fiscal year 2009, about recruiting students. We had walk away from the house. If you buy $4.12 billion they spent on marketing. heard companies—these for-profit a car and you get a loan on a car and If you say: Well, what is wrong with schools—complain that their rapid you cannot make it, you can walk that? Just think, 86 percent of that growth was nothing more than stu- away from the car. Students cannot came from the taxpayers. Six compa- dents voting with their feet. walk away from these debts. Once that nies: Apollo, Walden, Grand Canyon, Unfortunately, the GAO and our wit- school gets that money and they drop Bridgepoint, Strayer, and ITT actually nesses, including a former recruiter at out, they have that debt hanging spent more than 50 percent of their rev- Westwood College, I just mentioned, around their neck. enues on a combination of marketing made clear that for-profit college You know what happens—and I will and profit. So you add up their mar- growth is actually the result of an ag- get to this letter, too—these students keting and their profit, over 50 percent gressive, well-funded marketing effort then cannot go on to another school. of their revenues. by the schools, including lies and de- They cannot get another loan. They The second HELP Committee hearing ception. cannot do anything until they pay that made clear to me the problems of the Using undercover agents and hidden debt. The Federal Government will be for-profit sector cannot be chalked up cameras, GAO presented a troubling after them on that debt. Even when to a few bad actors. The opportunity picture of student recruitment. Under- they get Social Security, they will go for great profits, in spite of poor stu- cover investigators from GAO visited after the Social Security payments. dent outcomes, has become the busi- 15 campuses of 12 companies and they How many students would borrow ness model in this sector. I became found misleading, deceptive, overly ag- $29,000 if they knew that, if they knew worried this approach, characterized by gressive or fraudulent practices at that debt will be yours until you pay it aggressive recruitment, high cost, high every one of those campuses, every sin- off? They do not know that. They drop debt, low graduation rates, was cre- gle one. out of school, they borrow the money, ating a vortex, sucking in even the We watched the films. We watched. they gave it to the school, and that is good actors in the industry. They had these little hidden cameras Think about this business model. it. Not true. Schools do not inform and microphones. We watched them in Think about it. If you are one of these them of this. for-profit schools, you make the most our committee hearing. Startling. The committee received recruitment money by recruiting the poorest stu- Startling. Students were lied to and training manuals from several dif- dents, and here is why. Because if you misled about the costs of the program, ferent campuses. They have one thing about what they could expect to earn, get the poorest students, they are eligi- in common: manipulation. Get this, about how many students graduated, ble for the maximum Pell grant. You and this is written up. They encourage whether their credits would transfer, get the poorest students, they are eligi- their sales staff to identify the emo- and whether the program was accred- ble for the maximum Federal loans. tional weaknesses of prospective stu- ited. That is profit. That is profit to these They were misled about whether dents, to exploit the pain, to motivate companies. So that is the business their student loans were dischargeable students to enroll. Again, do not take model. Since they, the companies, are in bankruptcy and even were prevented it from me. A recent Business Week ar- legally bound to try to increase their from having a conversation with a fi- ticle described a document from returns, either to their equity inves- nancial aid officer until after they Kaplan University that urged the re- tors or hedge funds or their share- signed on the dotted line. So you sign cruiters to focus on ‘‘the fear, uncer- holders, they have to have this growth. on the dotted line. Then you get to tainty and doubt of their prospective So they keep aggressively recruiting talk to the financial aid officer. students.’’ more students. The poorer you are, the That does not happen at West Vir- These recruitment practices more better they like it because it gives ginia University or Iowa State. You likely characterize boiler-room sales them more money. Then, if you drop can see the financial aid officer and see tactics than trying to get someone a out, it is no skin off their teeth. They what you are eligible for before you de- good education. These abusive recruit- do not owe you anything. So the poorer cide to go there. ment practices result in students un- students get recruited. They do not get I wish to digress for a minute about prepared for or poorly matched to their any support or very little, a little help. these loans being dischargeable in academic program, with a high prob- They drop out—I have a chart to show bankruptcy. That is one thing very few ability of dropping out, leaving school you that after a bit—and they have all of these students know. Let’s face it. A not with a degree but with a mountain this debt and the schools have all the lot of these students come from low-in- of debt. money. That is the business model. come families—and I will get to that Some for-profit companies spend in The HELP Committee held its third also in a minute—and they have not excess of 30 percent of total cost just to and most recent hearing in September, probably had a good educational expe- fund an aggressive sales force, 30 per- with a focus on answering the question: rience in secondary school, but they cent of total cost, just in their sales What is happening to all the students want to better themselves. force. whom these schools are pushing so So they listen to this high-pressure Those abusive practices, so wide- hard to bring in the door—the ones I sales tactic. They get these kids online spread that GAO found them at every just talked about. and stuff and they call them on the campus of every company it visited, Unfortunately, according to informa- phone and they say: Do not worry are the symptoms of a very sick indus- tion provided by the 30 schools and about anything. We will fill out all the try. While GAO made some minor revi- analyzed by the HELP Committee, it paperwork. We will take care of all the sions and clarifications of the long list appears these students are not faring paperwork, and based upon what you of misleading practices it docu- very well. At the 30 companies we ana- said, you are eligible for this much Pell mented—and that the industry has now lyzed, 54 percent of the students who grant—you will get the money—and tried hard to use to discredit the work came in the door in the 2008–2009 school loans and you can get these Federal of the GAO—the essential finding year had left without a degree by the loans. We will take care of all the pa- stands; that every single school en- following year. OK. At 30 companies we perwork. You do not have to worry gaged in misrepresentation, deception had analyzed, 54 percent of the stu- about a thing when you sign up. or outright fraud. dents who came in the door that year

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00027 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.000 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19834 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 left the following year without a de- Catholic school in Clinton, IA, had 375 program withdrawal rate 44 percent; gree. They vanished—54 percent, one students. They transformed it into a online withdrawal rate 69.5 percent. out of every two, they left. That num- for-profit school. It now has 67,000 stu- Something is very wrong here. To me, ber is striking. dents, a 17,000-percent increase in stu- this suggests these online students are We know from the Department of dent population in 6 years, 17,000 per- not getting the support they need. It is Education that nearly every student at cent. inexpensive for a school to enroll a stu- a for-profit college will take out a Fed- Ashford still operates the small cam- dent online, but to ensure those stu- eral student loan. Of course, they will pus in Iowa. About 600 students go dents are learning and succeeding get their Pell grants too. That means there. The other 67,000 take classes on- would require a major investment that more than half these students are en- line. I, obviously, was very interested for-profit schools, obviously, are not rolling, being saddled with debt, and to know how the heck they can be willing to make. dropping out without a degree. doing such a good job for students with What these high dropout numbers il- The numbers are even worse when we that kind of growth. What the data we lustrate is a phenomenon called look specifically at students enrolled have collected for our investigation ‘‘churn.’’ That is an industry term for in associate’s degree programs. This can tell us, for the first time, is they bringing in students, signing them up chart will show this. The chart shows are not doing a very good job for their for loans and Pell grants, and then the 10 associate’s degree programs with students. leaving them to sink or swim. Then the worst outcomes for students, these Eighty-four percent of the students they go out the door, and they bring in 10. The column in yellow shows the seeking an associate’s degree and 63 more. That is what they call churning percentage of students leaving—right percent of bachelor’s degree-seeking through the students because so many here. So here is the institution’s total students leave Ashford within 1 year, students at these for-profit schools students. Here is the withdrawal rate. without finishing their programs. come in the door and then leave within This is the withdrawal rate in the first But look at the growth—17,000 per- 4 months, 5 months, 6 months. Many of year; in the first year, 84.4 percent of cent growth. This is not terribly sur- these students don’t even show up in students from Bridgepoint who signed prising because Bridgepoint offers no the data the Department of Education up dropped out in the first year. What tutoring or other student services. If a collects. do you think happened to their loans? student starts to have difficulties at At Bridgepoint, for example, on the What do you think happened to their Ashford online, they have two options: first day of classes in the fall of 2009, Pell grants? Students get those back? talk to their part-time teacher online there were about 48,000 students signed Not on your life. Bridgepoint kept or ask the computer avatar, who is the up. Over the next year, recruiters them, the money went to their share- online student resource center. signed up 77,000 additional students. Should a student succeed in com- holders. Let’s keep these figures in mind. In the pleting a degree at Ashford, they had In that program, Bridgepoint, 84 per- fall of 2009, 48,000 students signed up for best not expect a lot of help finding a cent, nearly all the 7,900 students they Bridgepoint. have, left before attaining their associ- job. While Bridgepoint employs 1,703 In the next year, they signed up ate’s degree. I am not talking about a recruiters, they employ just one person 77,000 additional students. Then at the master’s degree, I am talking about a to handle career planning. They em- end of that school year in 2010, there 2-year degree. Nearly 70 percent at the ploy 1,703 recruiters, and one person to were only 67,000 total students en- second school, Lincoln, with the rest in handle career planning for the entire rolled. That means the school’s actual the 60-percent range. So they had 69 student body of 67,000 students. Accord- head count for that year was about percent who did not finish. ing to a recent study, 60 percent of all Just among those 10 schools, 375,000 community college students need extra 125,000 students enrolled at some point. students enrolled in the 2008–2009 help to succeed in school. They need But 58,000 students, nearly half of school year. Nearly 250,000 dropped out tutoring and classes to make up for them, didn’t stick around. They were without a degree a year later—250,000. what they may not have learned in out the door. These are the kinds of These are staggering numbers. middle school and high school. For- things people don’t know. This is what Behind these numbers are students profit colleges have served a similar our investigation has uncovered by get- who are fed up with the lack of help or population with similar needs. As they ting the documentation that led us to support from the school. They can no often remind us, the for-profit sector these figures. longer justify the level of debt they are serves a group of students that tradi- The picture is much the same at taking on because they realize the tionally lack access to higher edu- other for-profit schools. In fact, most dream job the recruiter sold them on is cation. Their students are the ones who schools we analyzed recruit at least the not waiting at the end. are the most vulnerable, the ones who equivalent of their entire starting stu- I should be clear, these are not the didn’t have parents who went to col- dent population anew each year. That complete dropout rates. More students lege, who didn’t grow up in a fairly bears repeating. Most of the schools we are actually likely to quit by the time wealthy household. And to make it analyzed recruit at least the equivalent we would actually measure that. These through college, they require a signifi- of their entire starting student popu- are students who are gone within 1 cant support structure that is not lation anew every year. year, many of whom never even reg- available at these for-profit schools. This chart describes the University ister in the Department of Education’s Like Bridgepoint, schools that have of Phoenix. We have all heard of them. annual enrollment count. large online programs seem to have If someone has never heard of them, Guess where they are counted, particularly troubling outcomes. This they don’t watch TV or read news- though. They are counted by investors becomes clear when we look at a large papers or ride a bus or anything else to looking to value the company and publicly traded school that has both a see all their ads. They do a great job of measure its likely profit. So when I say large online program and a large cam- advertising. At the University of Phoe- all these students dropped out, that is pus-based program for associate de- nix, in 2008–2009, the school started the just 1 year. How many dropped out the gree-seeking students. I am talking year with 443,000 students. They ended second year? We do not know that. about a 2-year degree. We can see it on the school year with 470,800 students, Let me focus, for a moment, on this chart. so almost a 28,000-student increase, Bridgepoint. Bridgepoint operates Career Education Corporation—that 27,800 to be exact. They grew their en- Ashford University and is based, sort is another one of these for-profit rollment by 27,800. In fact, they actu- of, in Clinton, IA. A group of private schools—has a withdrawal rate of 44 ally recruited and enrolled 371,700 new equity investors purchased a small percent on their campus-based pro- students in that year to get 27,800. Catholic school in 2004, when it had grams, and a whopping 69.5 percent in Again, these numbers can get a little about 375 students. In 2004, this small their online programs. Campus-based confusing. Let me try that again.

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00028 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.000 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19835 The University of Phoenix started much we were actually spending Mr. DURBIN. So for every dollar we the school year in 2008 with 443,000 stu- through the GI bill for education spent through the Department of De- dents. They ended the school year with through the for-profit schools com- fense to help veterans in the GI bill, if 470,800, a growth of 27,800 students. How pared to the public schools, community they went to a for-profit school, they did they get 27,800? They recruited colleges, colleges and universities? We were being charged three times what 371,700 students just to get that 27,800. asked for that number, and we ended public schools were charging. That means almost 350,000 students up learning these for-profit schools Mr. HARKIN. The Senator is correct. passed through the University of Phoe- were charging GIs and veterans three Mr. DURBIN. And the numbers we nix in 2009 without anything to show times the amount being charged for found show that, for example, four of for it. They came in. A lot of them those who went through other tradi- the five biggest schools receiving the gave them their Pell grants. They tional schools, public schools, and uni- most post-9/11 GI bill funding have at turned over their student loans. Then versities. least one campus with a student loan they vanished. The students got the It strikes me we have a legitimate default rate above 24 percent over 3 debt and the University of Phoenix got concern. I know the Senator from Iowa years. In comparison—and I don’t have a nice little profit. Actually, a nice big and myself have been dutifully and loy- the numbers in front of me—I believe profit. ally voting for Federal aid to edu- when we look at public schools, the de- At another company, EDMC, the cation. I don’t know his story. My fault rates are in the 7- to 10-percent marketing and recruiting machine story is, I am standing here today be- range. signed up 124,000 new students in the cause of a National Defense Education Mr. HARKIN. That is correct. last school year. But they ended up the Act government loan that let me finish Mr. DURBIN. So more and more stu- year with only 19,000 more students college and law school; the Senator dents are being charged higher tuition, than when they started. Recruiters for from Iowa the same thing. I have going deeper in debt, and defaulting at these schools face the imperative of en- thought, goodness’ sakes, if that is how a rate of 3 to 1, being charged three rolling large numbers of new students I reached this point in my life, other times as much, defaulting three times each year to replace those dropping out people deserve the same chance. I have as much as those who are attending and eventually reach the point where been almost an automatic vote when it public schools? the number of new students is suffi- comes to that kind of assistance. Mr. HARKIN. That is right. cient to actually cause the enrollment I thank the Senator from Iowa. Now Mr. DURBIN. It seems to me, at a to grow. that he has had these hearings and I time of great national deficits, when That is what the shareholders de- have joined him in investigating it, I we do care about our veterans, this is mand. That is what the hedge funds find that a growing percentage of Fed- an unexplainable, indefensible situa- who own them demand. That is what eral aid to education is going to for- tion. I thank the Senator from Iowa for their equity investors demand. The profit schools that operate with 90 per- his hearings on this matter. I ask him: schools may be very successful as com- cent Federal tax dollars and don’t end At this point, where do we go from here up providing the kind of education panies, making profits for their inves- in terms of these schools and in terms these young men and women need to tors and their owners and, I might say, of what we should be asking of them to succeed, and many of them end up de- huge compensation for their executives make sure the students, the veterans, faulting on their student loans. So and their presidents, but it is hard to and the taxpayers get a fair shake? there they are with the debt and noth- say they are successful as educational Mr. HARKIN. I thank my friend from ing to show for it, which I believe is institutions. Illinois for his focus on this issue for a the point the Senator is making. long time and bringing it to our atten- (Mr. BENNET assumed the chair.) I ask my colleague, a veteran him- Mr. DURBIN. Will the Senator yield tion. Again, where are we going? We self, how can it be fair to the govern- for a question? have some more hearings we are going ment or the veterans for this kind of Mr. HARKIN. I am delighted to yield. to be having after the first of the year. exploitation to continue? Mr. DURBIN. I wish to ask the Sen- Mr. HARKIN. I say to the Senator, Then we are going to be looking at leg- ator, most people say businesses ought who has been a leader in this effort of islation we need to do. We need to take to have their opportunity to make a looking at the for-profit industry, try- care of this. profit. That is what America is all ing to get the facts so we can make As I said earlier, our friend and about. What percentage of the revenues reasonable decisions as legislators former colleague, Senator Sam Nunn of at, say, the University of Phoenix come about protecting both the taxpayers’ Georgia, in 1992, had hearings on this from Federal taxpayers? dollars and protecting students, on De- very same subject, and we put in place Mr. HARKIN. I am glad the Senator cember 8 our committee published this what we thought were fixes to straight- asked that question. I will go over that report called ‘‘Benefiting Whom, For- en out this industry and to make sure again. There is a Federal law that says Profit Education Companies and the taxpayers’ dollars were better pro- they can only get 90 percent of their Growth of Military Education Bene- tected. Almost all those have been revenue from Federal financial aid fits.’’ I suggest that he might want to done away with—the fixes that were sources, loans or grants, Pell grants, look at that. The Senator is absolutely made by Senator Nunn and this body, loans, that type of thing, 90 percent. right. More and more of this money is this Congress at that time. We have to The University of Phoenix reported going to the for-profit schools. reexamine those fixes and others again. last year they got 89 percent of their Let me put it this way: Between $640 For example, as the Senator knows, money from the Federal Government. to $700 million in GI bill benefits went in 1992, we put a ban on compensating But here is the kicker. If you are a GI basically to public institutions, public employees solely for recruiting stu- and they recruit you and you are giv- schools—the University of Illinois, dents; in other words, you could not ing them your GI bill benefits and Iowa State, University of Colorado, pay recruiters for how many students other educational benefits you get University of Georgia—all that. About they recruited. through the military, that is not $640 to $700 million went to public Mr. DURBIN. Bounties. counted in the 90 percent. For some schools. That supported 209,000 stu- Mr. HARKIN. A bounty. That was reason that is not taxpayer money. Ac- dents. About the same amount of rolled back in 2001. We also had a provi- tually, the University of Phoenix got money from GI bill benefits went to sion that was put in the law then, that more than 90 percent of their money the for-profit schools and supported at least 50 percent of your students had from the taxpayers. 75,000 students. to be campus based. That was done Mr. DURBIN. If I might follow up, Mr. DURBIN. So it is roughly three away with in 2005. So all your students didn’t we ask the GAO to do a study, or to one. can be online. Since 2005, we have seen the Department of Defense to do a Mr. HARKIN. Yes. That is about this huge explosion in online students study about GI bill benefits and how right. going to these private schools online.

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00029 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19836 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 So those are just two of the things that supposed to start at 3:15. I think I charged with the mission of ensuring have been rolled back. I think we have started at 3:30, if I am not mistaken. educational quality. However, this does to reexamine that and reexamine how So I will just take a few more minutes not happen at a lot of for-profit we better protect both taxpayers and and try to close. I do not wish to keep schools. students. other Senators waiting. There are two types of accrediting Mr. DURBIN. If I could ask one last I, again, wish to close on this, on the agencies: the so-called national question of the Senator from Iowa. cost and debt. At these for-profit accreditors that focus on accrediting So the U.S. Department of Education schools, many students do not leave for-profit schools, and there are re- is looking at this? with a degree, but most leave with gional accreditors that accredit most Mr. HARKIN. Yes. debt. The average student attends for public and nonprofit universities. In- Mr. DURBIN. Secretary of Education about 128 days before dropping out. creasingly, for-profit schools are seek- Arne Duncan is looking into this. That is a little over 4 months. That is ing regional accreditation. One par- Mr. HARKIN. Yes. the average. For most schools, that is ticular regional accreditor, the Higher Mr. DURBIN. You cannot escape the two terms. That is enough time for stu- Learning Commission of the North reaction of the for-profit school indus- dents to rack up thousands of dollars Central Association of Colleges and try. They are buying full-page ads in in debt—anywhere from $6,000 to Schools, accredits 18 of the 24 for-profit every newspaper they can get their $11,000, depending on the program and schools that have regional accredita- hands on, claiming we are, by this in- school. tion and, until recently, was known as vestigation, trying to deny an oppor- That is because for-profit schools are the go-to accreditor for for-profit tunity for education for particularly far more expensive than comparable schools. disadvantaged students. programs at community colleges or They have a cozy relationship. We Mr. HARKIN. Yes. public universities. The average tuition had testimony from a witness em- Mr. DURBIN. Isn’t the bottom line for a for-profit school is about six ployed by one of the national higher that we want to make sure that, first, times higher than a community college education accrediting organizations. schools are accredited, so when they and twice as high as a 4-year public He testified: hold themselves out to offer a training school. Average annual tuition for a Accreditors must hold institutions ac- program, certificate, degree, they, in for-profit school was about $14,000 in countable to ensure that only the highest fact, are doing that; second, to make level of integrity is injected into the student 2009, while tuition at community col- recruitment and admissions process. sure they are charging a reasonable leges averaged about $2,500, and instate amount for the education they are of- The same witness assured the com- 4-year tuition was about $7,000. mittee that in 629 onsite evaluations of fering; third, if you have so many de- Of the 15 schools investigated by member schools over the previous 2 faults, it basically says your students GAO, 14 had higher tuition than the years, the agency did not find even a are just accumulating debt, not accu- nearest public college offering a simi- single example of ‘‘substantial non- mulating diplomas, and we have to lar program. One that we looked at of- compliance.’’ Yet this witness’s organi- bring that to an end; and they are ask- fered a ‘‘computer-aided drafting cer- zation accredits three of the schools ing about whether students end up in a tificate’’ for $13,945, when the same documented by the GAO as having en- job when it is all over, gainful employ- program at a nearby community col- gaged in misleading or deceptive re- ment. Are any of these unreasonable if lege cost $520. The cost of an associ- cruiting. the Federal Government is providing 90 ate’s degree offered by the second larg- So, again, that is where we find our- percent of the revenues for these est for-profit is over $38,000, and a selves: One-quarter of our financial aid schools? bachelor’s degree can cost up to $96,500. budget is going to a sector dominated Mr. HARKIN. I think the Senator is Again, I just referenced to the Sen- by education companies owned by in- being very reasonable. I think these ator from Illinois the recent study we vestors and shareholders seeking to are the minimum kinds of things we had done regarding the GIs and what maximize short-term profit. Their mis- ought to do, as I said, to be stewards of the GIs are coming out with. They are sion is to grow and to get profits at the the taxpayers’ money, protect our vet- paying three, four, sometimes five expense of positive student outcomes. erans, and protect other students. times as much going to an online There are virtually no legislative One of the tricks in the trade, as school as they could at a community checks in place, though new Depart- they say—I bet if I asked most Sen- college or a local public or even a non- ment of Education regulation on incen- ators to describe a semester, what is a profit university. tive compensation is a step forward. semester, you would think a semester On the placement—I know others are The current accreditation bodies in goes usually from September to Janu- here, and I do not wish to again hold higher education are ill-equipped to ary, one semester; and maybe January them up. I talked about what Senator deal with the size and relentlessness of to May is another semester; and then Nunn had done back in 1992. Let me the investor-owned companies. As a there is summer school. That is not it. just respond on one thing on the consequence, as I just said, we have A semester is what you make it. Some accreditors. The Senator from Illinois ‘‘for-profit’’ companies financed with of these schools have a semester that is mentioned accreditation. I wish to just over 85 percent of taxpayer dollars, 5 weeks long. So if you can keep your respond to that because a lot of people reaping $3.5 billion in profits, and mil- students in for 60 percent of the semes- think, if they are accredited, they lions of students leaving these schools ter, you keep all their money. Then must be all right. But here is what we with debt but no diploma. they drop out, and you have the found. These schools will receive more than money. All institutions of higher learning $30 billion in Federal aid this upcoming This is something else we have to are governed by a combination of the year—$30 billion. It seems to me it is look at, a better definition of what the Federal Department of Education, the obligation of us here and Federal timeframes are. What do we mean by a State agencies, and private accrediting regulators to provide effective govern- semester? How much time is that? How agencies, which ought to act as a safe- ment oversight and regulation of Fed- much time does a student have to stay guard against the proliferation of high- eral financial aid dollars. The public is there before the school can keep the cost, low-quality educational institu- watching to see whether taxpayers’ grants and keep the loans from the stu- tions. A few States have passed strong dollars are being used wisely and effec- dent? But, again, these are things I State authorization requirements, tively. With high-cost schools, and sky- think our committee and others are which have made it difficult for some high dropout rates, with limited job going to have to wrestle with, as we go questionable for-profit colleges to set placement and services, I have grave ahead on this issue. up shop in those States. Unfortunately, doubts that many of these for-profit I know others are backed up here to those States are the exception rather schools are a good taxpayer invest- speak. I started a little bit late. I was than the rule. Accrediting agencies are ment.

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00030 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19837 At stake in the debate is the future wonder if my Republican friends would extension is for 2 years, there is little of millions of Americans who are being agree with me that it is not their in- doubt in my mind that our Republican aggressively recruited into high-cost tention to only make this extension for colleagues will continue to push for programs of often dubious educational the wealthy for 2 years. I am quite sure lower and lower estate tax rates in the quality. For all these reasons—for 2 years from now they will be on the future, on their way to eventually re- every Yasmine Issa who has been mis- floor, maybe along with some Demo- pealing the estate tax permanently. I led or defrauded by a for-profit col- crats, saying: Oh, no, that is not would remind my colleagues that last lege—we have an obligation to make enough. We have to extend it again. So year, some of us brought to the floor sure these schools are doing a decent anyone who thinks we are only extend- an amendment that said maybe at a job for their students. We need for-prof- ing tax breaks for the wealthy for 2 time when our seniors and disabled it schools that put the interests of years I think—maybe I am wrong—is vets have not gotten a COLA for the their students first. We need for-profit sorely mistaken. I think we are talking last 2 years, maybe we should give education companies that strive to about extending the tax breaks to mil- them a $250 check. This is for people serve the needs of the students they re- lionaires and billionaires into the in- trying to live on $14,000, $15,000, $16,000 cruit and enroll. That is not always the definite future. a year. We didn’t get one Republican case today. Congress and the executive That is not just what I am thinking. vote—not one Republican vote—but branch have an obligation, I would say Here is what Dan Bartlett, a gentleman when it comes to huge tax breaks for a moral obligation, to provide effective who was President Bush’s former com- billionaires, the top three-tenths of 1 oversight of the for-profit sector in munications director, said to the well- percent, I guess there is a lot of sup- higher education. We owe this to the known columnist, Howard Kurtz, just port for that. Again, it may make students, and we owe it to every tax- recently, last week, December 3, 2010: sense to some people; not to this Sen- payer. We knew that, politically, once you get it ator. I yield the floor. [the tax cuts] into law, it becomes almost There is also an issue I wish to spend The PRESIDING OFFICER. The Sen- impossible to remove it. That’s not a bad a moment on which I think has not ator from Vermont. legacy. The fact that we were able to lay the gotten the attention it deserves, and Mr. SANDERS. Mr. President, I am trap does feel pretty good, to tell you the that is that this agreement contains a aware that yesterday, by a vote of 83 to truth. ‘‘payroll tax holiday’’ which would cut 15, the Senate voted to ask for cloture My Republican friends know it. In 2 over $114 billion in Social Security on the tax agreement reached between years, you will be back to extend it, payroll taxes for workers next year. the President and the Republican lead- and that is what we are voting on. While on the surface this sounds good, ership. I was in the minority, and I Let’s be clear about it. We do not know it is actually a very dangerous idea. wish to very briefly—I spoke on the what the future brings us, but if, in This payroll tax holiday originated issue at some length the other day. I fact, we do end up extending the tax from conservative Republicans. Our will be a little bit briefer this after- breaks for the next 10 years, as our Re- Republican friends think this is a good noon. But I think it is important to ex- publican colleagues want it, it will in- idea, because for many of them—not plain why I and a number of us and crease the national debt by $700 billion all—the goal is to choke off money many Americans think this is a bad and would give a tax cut of over going into Social Security to divert agreement and that, in fact, we can do $100,000 a year to people earning more money that should go into the Social a lot better. than $1 million. It doesn’t make a Security trust fund and over a period Just a few points. No. 1, this country whole lot of sense to me. of time weaken the solvency of Social has a $13.8 trillion national debt. Our We should also be clear that this Security. Once again, while this is sup- middle class is shrinking, and it is un- agreement between the President and posed to be a 1-year payroll tax holi- conscionable to me that we are in the the Republican leadership also con- day, frankly, it is hard for me to imag- process of providing huge tax breaks to tinues the Bush era 15-percent tax rate ine that it will not be continued next the wealthiest people in this country on capital gains and dividends, mean- year. I suspect it will go on and on, and to drive up the national debt, which ing that those people who make their for many of our conservative friends our kids and grandchildren will have to living off of their investments will con- who want to destroy Social Security, I pay off. I think that is absolutely tinue to pay a substantially lower tax think they are feeling pretty good wrong. rate than firemen, teachers, nurses, about it. I think they are on their way. During the Bush Presidency alone, and police officers. Does that make Less and less money is going to go into the wealthiest 400 Americans saw their sense? Well, maybe it does to some peo- the Social Security trust fund and income more than double, while their ple; not to me. that, in fact, is what they have on their income tax rates dropped almost in This agreement also includes a hor- minds. half from 1992 to 2007. rendous proposal regarding the estate While the administration claims the The richest 400 Americans now earn, tax. Under the agreement between the money lost from this proposal will be on average, $345 million a year and pay President and the Republicans, the es- paid back through the general fund of an effective tax rate of 16.6 percent. tate tax, which was 55 percent under the government, this proposal would The bottom line is, given all the President Clinton, will decline to 35 leave Social Security dependent on problems facing this country, lowering percent with an exemption on the first government revenues rather than the taxes for people who are extraor- $5 million of an individual’s estate. direct contributions of workers who dinarily wealthy, whose incomes are This decline in taxes in the estate tax have successfully funded this program soaring, whose tax rates are going applies to the top three-tenths of 1 per- for the last 75 years. And once you are down, should not be a major priority of cent. This is not just the tax breaks for into Federal funding for Social Secu- the Senate. the wealthy; this is a tax break for the rity, let me tell you, it will be cut and Let’s be very clear. If we continue to very, very, very wealthiest people in cut and cut and you are talking about borrow money now to give tax breaks this country. At a time when we have the beginning of the end for Social Se- to those people who do not need it, our a record-breaking deficit, if that makes curity. So I have very real concerns kids and our grandchildren will be pay- sense to some of my colleagues, that is about that. Frankly, maybe it is a 1- ing higher taxes in the future. We fine. It surely does not make sense to year program. I doubt it very much. I should not be doing that. me, nor do I think it makes sense to think it will be extended. Here is a point I wish to emphasize. I most of the people in this country. Further, while some of the business know the President and many of my The Congressional Budget Office has tax cuts in this agreement may work colleagues are saying: Hey, don’t worry estimated that this estate tax give- to create jobs—maybe some won’t— about it. This extension of tax breaks away would increase the deficit by economists I think from all ends of the for the wealthy is only for 2 years. I more than $68 billion. And while this political spectrum believe that the

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00031 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19838 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 much better way to spur the economy work and put them to work right now. large as the previous record of $984 bil- and create jobs is to spend money re- I think the fastest and best way to do lion. Our current statutory limit on building our crumbling infrastructure. that is to address our crumbling infra- the public debt is now set at $14.294 No debate. We need trillions of dollars structure. trillion and is expected to require an of work to rebuild our roads, bridges, Second of all, when we have the most increase again sometime this spring. water systems, levees, public transpor- unequal distribution of income of any With that backdrop, Senator WARNER tation, our rail system. I think most major country on Earth—the top 1 per- and I began talking this summer about economists believe when you put cent earn more income than the bot- this grave issue facing America and money into infrastructure, not only do tom 50 percent—giving tax breaks to about the fact that if we don’t address you increase the long-term produc- people who don’t need it—and in fact, it now, then it is going to be too late, tivity of our country and our inter- ironically, there are millionaires and and that it was incumbent upon us to national competitiveness, you also cre- billionaires out there who are saying try to educate ourselves as well as edu- ate jobs a lot faster than many of these we are doing great. We don’t need a tax cate other Members of this body about business tax cuts do. break. Use it to deal with the poverty the seriousness of this issue and what Furthermore, one of the other rea- rate among our children. Use it for is the way forward. So we began talk- sons I am voting against this agree- education. Use it for health care. We ing among ourselves. We expanded our ment is that I know the President and don’t want it. We don’t need it. We are group and expanded and expanded, and some of the Republicans said, Well, we throwing it back. we now have a significant number of reached a compromise on extending un- So I think, and I believed from the Senators who are prepared to come employment benefits. Well, I don’t be- very beginning, that we could reach a forth and say we have to address this lieve that was a compromise. The truth much better agreement than we have and we have to address it next year. is that while it is morally unacceptable reached right now. Some of the members of that group are that we would turn our back on mil- I intend to vote no on this agree- going to be here today to give their lions of workers who in the midst of ment, and I hope as many of my col- thoughts on it. We are going to be this terrible recession have for a very leagues as possible will do the same. joined by several Republicans and long period of time not been able to With that, Mr. President, I yield the Democrats to pledge our commitment find a job—obviously we have to extend floor. to addressing this issue and addressing unemployment benefits, but to say it is The PRESIDING OFFICER. The Sen- it in the right way. a compromise that our Republican ator from Georgia. I wish to thank my friend Senator friends came along with, this is some- DEFICIT REDUCTION WARNER for his leadership, for his com- thing I don’t accept. The truth is that Mr. CHAMBLISS. Mr. President, I mitment to do this. It has been a pleas- for the past 40 years under both Demo- rise today to speak on a matter with ure to work with him. As we move for- cratic and Republican administrations, my colleague Senator WARNER. I under- ward next year, this group is going to under Republican leadership in the stood Senator WARNER and I had the provide the momentum to carry the House and Senate, and Democratic time from 4:15 to 5 o’clock which was ball to make sure we address the issue leadership in the House and Senate, generously given to us by Senator of reductions in spending as well as whenever the unemployment rate has SANDERS who had the time before 5 major tax reform to get the fiscal been above 7.2 percent, unemployment o’clock. Unfortunately, Senator HAR- house of the United States back in insurance has always been extended. In KIN has gone over and used some of order. other words, this has been for decades Senator SANDERS’ time. I know Sen- With that, I yield to Senator WAR- bipartisan policy. Republicans and ator KIRK is coming down to give his NER. Democrats have said, You can’t leave maiden speech at 5 o’clock, and I hope The PRESIDING OFFICER. The Sen- people to lose everything, leave them he will bear with us. We have a number ator from Virginia. to lose their dignity, not being able to of folks who are going to speak very Mr. WARNER. Mr. President, let me take care of their families when unem- quickly today on an issue that is of echo the comments of my good friend, ployment benefits are not allowed. major importance to America. the Senator from Georgia, Senator This is not a compromise. This is just America’s fiscal house is in disarray. CHAMBLISS. It is time for us in this an extension of 40 years of bipartisan Our budget process is broken, and fu- Senate—and excuse the language—to policy. ture generations will end up paying the put up or shut up. A lot of folks talk Furthermore, there are a number of price if we continue to ignore the dif- about deficit reduction in both parties additional extenders in here dealing ficult decisions required to fix this time and again, but over the next year, with ethanol, dealing with NASCAR, grave threat to our country’s fiscal there is a growing group of us—and I dealing with tax breaks to oil and gas stability. think folks will see this group in the companies, dealing with rum producers Recently, the National Commission next 45 minutes, hopefully briefly, each in Puerto Rico and the Virgin Islands on Fiscal Responsibility and Reform one of us—starting to raise the issue that I think, to say the least, have not has worked in a bipartisan manner to that next year we have to take on def- gotten the kind of discussion they de- produce recommendations on how to icit reduction and major tax reform. serve. best address our current levels of debt. The country is approaching $14 tril- Are there positive aspects of this While these recommendations may not lion in national debt. It has been esti- agreement? Of course there are. Ex- reflect the beliefs of all Members of mated that every day we delay, we add tending middle-class tax cuts to 98 per- this body, I commend the Commis- close to $5 billion to that national cent of Americans, the earned income sion’s members for having the courage debt. So whether your issue is the sol- tax credit for working Americans, and and the open minds to tackle the prob- vency of Social Security, whether your the child-in-college tax credits are all lem. At the very least, their rec- issue is tax rates, whether your issue is extremely important, and that is some- ommendations can serve as a starting making sure we pass on a balance sheet thing we have to do. But when we look point for a serious debate on how we to our kids and our grandkids and at the overall package, we must put it can ensure a better life for our children allow America to continue to be the in a broader context. What will the and our grandchildren. economic superpower it has been, un- passage of this legislation mean for the Today, spending has reached almost less we take on this issue, we won’t be future of our country? 24 percent of America’s gross domestic able to accomplish those goals. The bottom line is, as I think most product, while our revenues were at While I believe, as imperfect as this Americans know, the middle class is in their lowest levels last year in 60 years. compromise between the President and a state of collapse, poverty is increas- Not too long ago, the debt ceiling was others is in terms of short-term stim- ing, people on top are doing phenome- increased by the largest amount in his- ulus that we will vote on later tonight, nally well. We need to put people to tory: $1.9 trillion—nearly twice as we also have to demonstrate that this

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00032 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19839 body can actually walk and chew gum, ‘‘Kicking the can down the road is bility and Reform, there are a lot of that we can do short-term stimulus not going to suffice any longer,’’ to things Members of this group and of now, but next year engage in meaning- quote our colleague from Oklahoma, this body are not going to like in any ful tax reform and deficit reduction. Senator TOM COBURN. potential plan. But what is important Because if we act later tonight, we will The preamble goes on to say: here is that all of these Members are be adding $900 billion over the next 2 The contagion of debt that began in Greece serious about putting this country on a years to our national deficit. and continues to sweep through Europe sustainable path and are committed to So today—and we will come back on shows us clearly that no economy will be im- devising and voting on a plan to do a regular basis—we will hear very mune. that within the next 12 months. It is briefly from a number of my colleagues No economy, not even the U.S. econ- that important an issue. on both sides of the aisle, and I think omy. This is, hands down, the most impor- in our new respectful way—we may not If the U.S. does not put its house in order, tant issue this Senate will deal with agree on the ultimate solutions, but we the reckoning will be sure and the devasta- over the next few years—putting our are going to agree to listen to each tion severe. Nation’s economy on a sustainable other respectfully and recognize that The title of the report of the Com- path to control this country’s debt and at the end of the day, meaningful tax mission is ‘‘The Moment of Truth.’’ to offer opportunity for the future. I reform and meaningful deficit reduc- And I think we are here on the floor of look forward to working with my col- tion has to be a goal of this Senate, of the Senate today, on December 14, 2010, leagues on this issue, as I know they this Congress in the next year. to say there is a bipartisan working share my same commitment to getting I yield the floor to my good friend, group that believes we have arrived at something done. the Senator from Mississippi. a pivotal moment of truth and we in- The truth is, we are not going to be The PRESIDING OFFICER. The Sen- tend to get down to the business of rec- able to get anywhere unless we trust ator from Mississippi. tifying the problem of national spend- one another. This process isn’t going to Mr. WICKER. Mr. President, I am ing and our national debt. be pleasant for anyone, but we can be glad to join this bipartisan group I yield to my friend from Montana. successful if we have a bipartisan ef- today. I see 10 of us on the floor at this The PRESIDING OFFICER. The Sen- fort. This bipartisan resolution is more time and we all have agreed to speak ator from Montana. than just lipservice; it is a plan to briefly about this, because we want to Mr. TESTER. I thank Senator move forward together. make the case that over the next sev- WICKER for his remarks, and I rise to I yield the floor to my friend, the eral months we mean business and we share a few words also about the debt Senator from Nebraska, Mr. JOHANNS. intend to do what we can to actually and about the bipartisan tax cut com- The PRESIDING OFFICER. The Sen- make some tough choices. promise we will vote on this evening. ator from Nebraska. I join my colleague from Georgia in Mr. JOHANNS. Mr. President, this is Before I get into these remarks, I wish commending the membership of the a rather remarkable moment. On each to thank Senators WARNER and CHAM- National Commission on Fiscal Re- side, Republicans and Democrats are BLISS for their good work in putting to- sponsibility and Reform, and particu- standing to describe a problem that lit- gether a group of Senators to help ad- larly the leaders of this group, Erskine erally jeopardizes not just the future of Bowles and Alan Simpson—great patri- dress this issue in a bipartisan way. our children and our grandchildren, but As far as the compromise tonight, I ots, people with a great history of serv- it jeopardizes our security; that is, our look forward to voting for this com- ice in their own right. They have come runaway spending and our deficit. forward with some recommendations in promise. It is a matter of creating jobs If I might, let me put this in perspec- their preamble. They make it clear and rebuilding the economy. I think tive. As a former Governor of Ne- none of us like every element of the the bill does that. Is it a compromise braska, I used to tell my cabinet, when plan, but they put forward a plan that plan I would have written? No. But it we were struggling through budget I think is a starting point for us, and does cut taxes for the folks who need issues, that this is not magic, it is we intend to use these next few tax relief the most—middle-class fami- math. That is the reality of what we months—frankly, we intend to use the lies, small businesses, family farmers are dealing with here. We simply have runup to the vote we will have to take and ranchers. They are the real job cre- a problem that is so gigantic, it can on the debt ceiling around April of ators in this country, and aiming tax only be solved in a bipartisan way. 2011—to make real progress. relief at them required compromise Let me offer a couple of statistics to Let me subscribe to several of the and working together, and it happened. back up that statement. If you look at statements made in the preamble of It is a victory for all Montanans and the entire Federal budget, this is what this fiscal responsibility commission. especially all Americans. you see. If you add Medicaid, Medicare, They say: ‘‘We cannot play games or I wish to point out another example Social Security, and the interest we put off our choices any longer.’’ of working together. Over the past few pay on our debt, that is 64 cents of I think the American people know days, a number of my colleagues— every dollar we spend annually. Let me that, and they expect leadership from Democrats, Republicans, and Independ- repeat those programs: Medicaid, Medi- their elected representatives in the ents, 22 in all—teamed up to put forth care, Social Security, and the interest House and Senate in that regard. The the resolution we hope will be a part of we pay on our debt. Everybody will ac- report and the preamble go on to say: this package we will vote on tonight. knowledge the importance of those pro- ‘‘The American people are counting on This resolution puts all of us on record grams. Let’s compare that to the reve- us to put politics aside,’’ and that is expressing our deep concerns about the nues coming in this year. The revenues what we are trying to do on the floor unsustainable path of this country’s coming in don’t even cover the full cost today. And that is what we are trying debt and showing our commitment to of those programs. So if anyone is out to do on the floor today with a bipar- working together to dig ourselves out there suggesting that a little nip and a tisan representation—pull together and of the ditch we are in. To do that, any little tuck and a tweak here and a not pull apart and agree on a plan to plan will have to have tax reform, tweak there is going to solve this prob- live within our means and to make spending cuts, and deficit reduction. It lem, it just fundamentally won’t. We America strong for the long haul. is not going to be an easy process. In literally have a situation where if we It has been pointed out that ADM order to have a serious debate about just shut down the entire Federal Gov- Mike Mullen, Chairman of the Joint cutting our debt, we are going to need ernment—national defense, every sin- Chiefs of Staff, says that the most sig- to make some tough decisions and not gle program out there except the ones nificant threat to national security just pay lipservice or play political I mentioned—we would still come up a today is our national debt. I agree with games. bit short. Admiral Mullen, and I think Americans Much like the report of the Presi- We need to fundamentally change agree also. dent’s Commission on Fiscal Responsi- how we are operating this government

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00033 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19840 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 because, quite honestly, to date we all makes so much as a downpayment for votes in order to force that plan to recognize—Democrats and Repub- investing in our Nation’s future. Congress for a vote. I was disappointed licans—that we have been operating It did not have to be this way. As that didn’t happen. But let me make a this government on the credit card of Senator WARNER and colleagues have couple of points of clarification. Eleven our children and our grandchildren. mentioned, there was a blueprint pro- of the 18 votes represented over 60 per- That won’t work. It simply can’t work vided by the deficit commission. I cent of the votes of the members on any longer. don’t happen to agree with everything that Commission. That is enough votes I conclude my comments today by in it, but clearly it was a very impor- to pass any bill in this Senate. It is saying I appreciate the opportunity to tant blueprint. enough votes to pass any bill in the work with my colleagues on the other In the 1980s—and I see Senator ALEX- House of Representatives and to get side of the aisle and to work with my ANDER here, who clearly remembers that bill to the desk of the President. colleagues on this side of the aisle to those days—President Reagan and the And 14 of 18 would have been over 77 try to solve what I consider the most Democrats worked for bipartisan tax percent of the votes—a margin that has pressing, most urgent need our Nation reform to clean out the loopholes, hold rarely been met in this Congress. faces today. down the rates, and keep progressivity. My point in making this clarification Mr. President, I yield the floor for In the 2 years, colleagues, after Demo- is to say that on a bipartisan basis, we Senator WYDEN. crats and Ronald Reagan worked to- were able to come up with a super- The PRESIDING OFFICER. The Sen- gether, our economy grew by 6.3 mil- majority of support on the Commission ator from Oregon. lion jobs—twice the number created be- for a plan. Now, did that plan contain Mr. WYDEN. Mr. President, I wish to tween 2001 and 2008 when tax policy was everything I wanted and leave nothing out I didn’t like? No. There were parts commend Senator WARNER and Senator purely partisan. of that plan that caused me great CHAMBLISS in particular for their im- I don’t think it had to be this way. heartburn. But that plan did put Amer- portant work, and tomorrow it will be Senator WARNER and Senator CHAM- ica on a path toward a balanced budg- even more important given that this BLISS tried very hard to add a provision agreement will pass tonight. that might at some point insert con- et. It stopped the erosion. In fact, it stopped the explosion of our debt There is always another election sequences for inaction. Colleagues— across this country, and it did so in a around the corner, a big array of spe- and I will close with this—nothing will way that focused on the right ele- cial interest groups that need to be sat- happen in this town where there is this ments. What were those elements? isfied, and the constant scream of pub- culture of procrastination unless there lic opinion polls that politicians live Spending and tax reform. are some consequences for inaction. Many of us were worried at the out- and die for. Why take action that could There are provisions in this measure set that the Commission would focus offend a group today if you can put it tonight that I support very strongly— on just trying to solve the problem off for a while? unemployment insurance, help for the with more tax increases and tell the In my view, the agreement that will middle class and small business. I was American people that our spending pass tonight is a victory for the poli- willing to extend the whole Bush-era habits here in Congress were too im- tics of procrastination. At a time when program for a year if it were done in a portant to be dealt with and we would Americans are swimming in debt, more way to force action. But that is not simply have to increase taxes in order water will be put into the pool. Instead going to be done. to keep Congress spending at its break- of taking steps to fix the market-dis- Tonight, I intend to vote no. Tomor- neck rate. The Commission denied that torting, job-killing Tax Code—last row, I will be back with Senator WAR- fact and said: The reality is that the overhauled a quarter of a century ago NER and Senator CHAMBLISS to build on problem in Congress is they spend too when China and India were blips in the the good work of the deficit commis- much, and it put spending caps on dis- global economy—this vote, tonight, sion, build on the good work Demo- cretionary spending and at least start- will prop up our broken Tax Code. Mil- crats and Ronald Reagan did in the ed—not as much as I thought it should lions of Americans are out of work, 1980s to give us a model so that finally do—the debate about how to deal with small businesses are closing their in this country we tackle the major our entitlements. doors, and instead of finding perma- problems—debt reduction and fixing One very important addition. It pro- nent solutions to the problem, the the job-killing Tax Code—and bring posed a major reform of our Tax Code— agreement is smiling like Scarlett back the middle class to the prosperity probably the most sweeping tax reform O’Hara and saying: Fiddle-dee-dee, I they deserve. I have seen in my lifetime. If you were will think about it tomorrow. Mr. President, I yield the floor. to try to come up with a tax code that The agreement doesn’t come close to The PRESIDING OFFICER. The Sen- is more unfair, more complex, more what is needed to get our economy ator from Idaho. costly to comply with and more anti- back on track. In many ways, this deal Mr. CRAPO. Mr. President, I also am competitive to Americans seeking to will make the problems worse. For one, honored and very appreciative of the do business in the world, you probably it adds more to the deficit than TARP, opportunity to join this bipartisan couldn’t do much worse than we have more than the 2009 stimulus bill—858 group speaking to the Nation tonight done with our Tax Code. And one of the billion more dollars will be added to about the fact that we cannot any most important parts of dealing with the national debt. longer delay dealing with the most sig- our fiscal policy is to reform that Tax At a time when our economy des- nificant threat our Nation faces—our Code. So that is another reason I am so perately needs to create more jobs, the debt and our fiscal difficulties. glad to see we have bipartisan support agreement continues the same tax poli- I was one of the members of the for that kind of reform. cies that failed to create jobs for the President’s Commission on Fiscal Re- As I close, I would simply say that I past 10 years. sponsibility and Reform, and I had the am heartened by the fact that we see At a time when businesses are saying opportunity over the past year to work Republicans and Democrats alike say- that uncertainty is keeping them from on a bipartisan basis with people on ing that the time for further inaction hiring and investing, this deal in- that Commission who took testimony is gone. The time for gridlock is gone. creases that uncertainty by essentially from experts, evaluated the issues, We do not have time to continue the turning the entire personal income tax studied the economies of the world, kind of gridlock debate we have seen system into a temporary structure studied the details of what was hap- over the years here in Congress as we that will all expire in a year or two. pening in the American economy, and deal with this issue. And it is my hope And at a time when China is planning came forward with a plan. that in the near future, we will force to invest a trillion dollars in crucial in- This plan got 11 of the 18 votes on process reforms in this Congress that dustries for its long-term growth, there that Commission. It was required by will put votes on the difficult issues we is nothing in this agreement that the President’s order to get 14 of the 18 must face as Americans before us.

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00034 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19841 With that, Mr. President, I yield my rious issue we have dealt with in recent phrase. He said: Look, we are still the time and yield the floor for the Senator years and in future years. We have an best looking horse in the glue factory. from North Carolina. enemy today that is at the door. This That is the only reason that our inter- The PRESIDING OFFICER. The Sen- is not an enemy that is out there some- est rates and our bonds are still strong. ator from North Carolina. where and we can talk about philo- What do we do about that? There is a Mrs. HAGAN. Mr. President, when sophically. It is an enemy that is at way forward. The bipartisan commis- the fiscal commission released its re- the door. sion has put in front of us a plan. None port on December 1, it started with the Last year the Federal Government of us agree with every single item. It is guiding principle on which all Ameri- spent around $3.8 trillion. That doesn’t a way forward. It is important to note cans can agree: We have a duty to mean anything to me or probably much of the 11 votes, 5 of those votes were make America better off tomorrow to anybody because nobody knows Senators from our body. Five of the six than it is today. But the picture is what $3.8 trillion is. If we say it is a lit- Senators who represented us on this pretty bleak right now. Let me give a tle over $7 million a minute, it starts Commission voted to move forward. few examples. to sound a little bit more like we could That is the way forward—for us to In 1982 our deficit had never exceeded understand it. join together, Democrats and Repub- $100 billion. By March of 2004, 22 years But none of that is important. It is licans alike. Despite our differences of later, the debt was $3.7 trillion. Today, how much do we have. The Federal opinion on many other issues, I think 6 years have passed, and the debt held Government was short 41 percent of we can agree on one thing; that is, de- by the public has ballooned to $8.7 tril- that money; 41 cents out of every dol- veloping fundamental tax reform and lion. The Federal debt was 33 percent of lar that the U.S. Government spent it addressing, in the process, our long- GDP in 2001. It is now 62 percent and on borrowed. term debt problems. a trajectory to reach 90 percent of GDP I hope everyone listened closely to Like Senator WYDEN, I am going to by 2020. Interest on our national debt the Senator from Nebraska when he vote no tonight. I think this is a mis- could rise to nearly $1 trillion annually said if we funded only Social Security, guided effort, and we will add $900 bil- by 2020. That is the entire amount of Medicare, Medicaid, and the interest lion to our debt load. But I respect my the individual income taxes we are col- on the national debt, we would be short colleagues who see it otherwise. I am lecting this year. of money coming in to pay for that. If going to vote no, and I am going to It is impossible to look at these num- we shut down all other aspects of the come right back to work tomorrow with all of us in the Chamber. We are bers and believe this trajectory will re- Federal Government, we still could not going to meet this challenge head on. sult in an America that is better for put it in the black if we paid for just our children than it is for us. The stakes are too high if we do not. those. I yield the floor to the Senator from We cannot continue to just grow the This moment in history is an abso- Tennessee. debt and run huge deficits each year lutely critical moment for the Amer- The PRESIDING OFFICER. The Sen- with the expectation that our children ican people. We have gotten jaded be- ator from Tennessee. will pay the bill. This trend of bor- cause all of our lives we have heard Mr. ALEXANDER. I am here tonight rowing will eventually have to come to about the national debt, and we have in the spirit of my late friend, the au- an end one way or the other. The only heard about annual deficits. We get thor of Roots, Alex Haley, who lived question is, How are we going to reduce jaded about it. But these numbers and died by these words: ‘‘Find the our deficit responsibly and in a bipar- today are real, they are serious, and good and praise it.’’ tisan fashion and in a way that encour- they could bring down this govern- I am here to praise Senator WARNER, ages investment and economic growth? ment. There is absolutely no question Senator CHAMBLISS, and the bipartisan Are we going to cruise blissfully along about that. group of Senators who have focused until some external crisis forces us to This Congress has to do something their attention on this urgent crisis make these adjustments in the most about that, and it is not going to be that our country faces, the national sudden and painful way possible? done by Republicans, it is not going to debt. The time for Congress to act is now. be done by Democrats, it is going to This is the way the Senate is sup- There is a mounting chorus growing take a bipartisan effort to do that. I posed to work: to see an urgent need, from all sides that recognizes our cur- am here today to support that. develop a bipartisan consensus to get rent path is unsustainable. Eleven I yield the floor for my good friend, to work on it, come up with a strategy members of the fiscal commission Senator UDALL from Colorado. to deal with it, and get a result—not voted for the bipartisan deficit reduc- The PRESIDING OFFICER (Mrs. just make speeches but get a result. tion report, including my friends, the HAGAN). The Senator from Colorado. We have heard the evidence. We have Senators from Illinois, North Dakota, Mr. UDALL of Colorado. Madam had the good example set by five Mem- Oklahoma, Idaho, and New Hampshire. President, I am pleased and proud to bers of our body—two Democrats, three Just today, Moody’s announcement follow my colleague from Idaho. What Republicans—who took a courageous that it could move a step closer to cut- we are hearing about is all the chal- step in their action on the fiscal com- ting the AAA rating on our debt is why lenges that face our Nation, and there mission earlier this month. The Senate I am here today joining with my col- are many of them right now. This mas- should follow that example. leagues in vigorous support of con- sive set of budget deficits and overall I am encouraged by what I hear from certed bipartisan action on the deficit debt we face—it is a crippling debt—re- the bipartisan group of Senators ad- in 2011 and the resolution introduced quires probably the most serious and dressing our debt issue. This is the way by my colleagues, Senator CHAMBLISS difficult effort we are facing right now the Senate is supposed to work. Let me and Senator WARNER. as a people. conclude with just one example from It is past time to get to work. We A strong country—I heard Senator history. I picked up a book the other need to think seriously about reform- WYDEN say this, in effect—is a solvent night called ‘‘The British Overseas.’’ It ing the Tax Code and tackling the def- country. Conversely, a broke country is a British historian’s view of the icit and the debt in a civil and bipar- is a weak country. American Revolution. tisan manner, and we need to do it I can’t help but remember Erskine He pointed this out: At the time of now. Bowles, the Cochairman of the Com- the American Revolution, the interest I yield the floor. mission we are talking about today. He on the national debt of the British em- The PRESIDING OFFICER. The Sen- was asked: Why are interest rates still pire amounted to one-half of the na- ator from Idaho. low? Why are our bonds still desirable? tional revenue of the British empire. In Mr. RISCH. Mr. President, I rise He said: Don’t let’s fool ourselves. Sen- other words, at the time we fought for today to speak very briefly about this ator CHAMBLISS would appreciate this and won our independence, Great Brit- issue. This easily could be the most se- because he used a Southern turn of ain had an unconscionable debt. The

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00035 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19842 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 debt forced the British into some im- to do his maiden speech in a couple of vote for a debt ceiling in that it is like prudent decisions. One was the Stamp moments. I ask his forbearance for an running up a credit card tab and not Act and one was a little tax on tea, extra 4 or 5 minutes. agreeing to pay the bill. But I heard a which occurred at about that time. Our colleagues have been a little bit great Senator getting ready to retire, So big debts force big countries into over subscribed, which I think is an in- and I won’t say what his name is, say bad decisions. The leadership we have dication of the enormous interest in it is also irresponsible to not be respon- seen across the aisle is a good start for this issue and Senator SHAHEEN, Sen- sible prior to voting on a debt ceiling the serious effort toward dealing with ator CORKER, Senator KLOBUCHAR, and increase. our debt crisis. I am here today to com- Senator NELSON wanted to speak brief- It is my hope that sometime between mend those Senators, both Democrats ly on this issue. If the Senator from Il- now and April or May or early June, and Republicans, who are part of it. linois would grant us those couple of whenever this vote has to take place, I yield the floor for the distinguished minutes, we would all be very grateful instead of us just talking about this Senator from Colorado. because I know, once he makes his today—and I applaud all of those who The PRESIDING OFFICER. The Sen- maiden speech, he will be part of this are; I thank them for that—we actually ator from Colorado. effort as well. vote on something of substance that Mr. BENNET. Madam President, I am With that, to Senator CORKER. so pleased to be here in this room with deals with this issue in a real way and The PRESIDING OFFICER. The Sen- Democrats and Republicans, talking does not kick the can down the road. ator from Tennessee. constructively with each other. It has This is the issue that could create Mr. CORKER. Madam President, I been a long time since we have seen the greatest crisis in our country, rise to speak on the topic that has been that. It is one of the things I heard day something that, by the way, is totally discussed over the last hour. I thank after day over the last 22 months as I within our control. Many of the prob- had townhall meetings across the State my colleagues for focusing on this lems we face as a country we cannot of Colorado. I too wanted to read some- issue. Yesterday’s and tonight’s votes deal with solely ourselves; it involves thing from the words of the deficit and are tough votes for me. I think they lots of other people. This is one of debt commission because I think it is are tough votes for each of us. We have those issues that we have totally in our important for people to understand, a bipartisan compromise that has come control, and all it takes is the courage people who are watching this at home forth. There are things in this bill that to deal with this issue. The reasoning, and people working in Washington, trouble each of us for different reasons. that we are not going to get everything that this is not optional. But I think all of us understand our exactly the way we want it, but as a They write: deficit issue is the biggest threat to group, we have got to have the courage Large debt will put America at risk by ex- our country’s economic security and in to actually deal with it. posing it to foreign creditors. They currently many ways to our sovereignty. So I hope that we move more than own more than half of our public debt and Over this summer I had 46 deficit just to a construct but to a real vote. the interest we pay them reduces our own presentations around the State of Ten- I have a bill on the floor, and I am standard of living. The single largest foreign nessee. I think what people walked thankful that CLAIRE MCCASKILL has holder of our debt is China, a nation that away with from these meetings—and agreed to cosponsor an amendment to may not share our country’s aspirations and they were large meetings—was the se- strategic interests. actually this tax bill, that I know is verity of this issue. Most Americans not going to pass, probably is not even In a worst-case scenario, investors have not focused on the severity of our going to have a vote but to build mo- could lose confidence that our Nation debt issue. Most Americans think it is mentum toward there actually being a is able or willing to repay its loans— going to affect a neighbor, might affect construct in place that sequesters possibly triggering a debt crisis that another generation. I think a lot of spending to drive us from where we are would force the government to imple- Americans think if we would do away today to a more responsible place, a ment the most stringent of austerity with things such as earmarks—and I place where we have been over the last measures. don’t earmark—we would solve our As the President knows, I never ran 40 years. for office before this election. I spent problems. I thank the Senator from Illinois, That is what I hoped to accomplish half my life in the private sector and who I respect. Thank you for your for- this summer in Tennessee, was to half working in places such as the Den- bearance. make people aware of how big this ver Public Schools. The former Sec- I yield the floor. retary of Education is here today. issue is and that the steps we are going The PRESIDING OFFICER. The Sen- Nothing else in the world runs like to have to take are Draconian. I ap- ator from New Hampshire. this. Nowhere else would we say to our- plaud those who have been involved in Mrs. SHAHEEN. Madam President, I selves that our theory is, we would the process that has just taken place at am pleased to be here on the floor this look the other way, borrow the money the deficit reduction commission. I am afternoon to join my colleagues on from the Chinese, one of our greatest hopeful that sometime very soon, in both sides of the aisle, to talk about competitors, and stick our kids with the next few months, we will have the the need for us to deal with our deficits the bills. opportunity to vote on something simi- and our debt in this country. The reason this has become so impor- lar in nature that deals with real I made the decision to vote for the tant now is because the size and scope spending constraints. tax cut package that we are going to be of this debt puts us in the position I think all of us know spending as a voting on this evening. I did that with where one day—I will close with this— percentage of GDP is at an all-time some sense of ambiguity, because it where one day somebody may say: I am high in modern history. I think we does not adequately put in place a plan not going to buy your debt at that know spending has to come under con- to address our debt in this country. All price. The day that happens interest trol. At the same time, we understand the economists, however, I have spoken rates are going to spike, and this reces- in our Tax Code each year we give to have indicated that this is impor- sion is going to look like nothing com- away $1.2 trillion. I think that shocks tant for us as we are looking at con- pared with what we are going to face. people. If we were to eliminate those— tinuing to stimulate our economy and We owe it to our kids and grandkids to I know Senator WYDEN and others have provide the relief that middle-class make sure we are paying our way. I am worked on this—if we would eliminate families and small businesses need. so pleased we are here today in a bipar- those, everybody’s tax could be less. So despite the fact that there are tisan way to talk about it. We could lower individual rates, we things in it that I do not like, I am The PRESIDING OFFICER. The Sen- could lower corporate rates, we could going to support it. But I would feel a ator from Virginia. help our economy and spur it on. lot better about it if it contained lan- Mr. WARNER. Madam President, I I know it is irresponsible, when a guage that all of us have talked about, know the Senator from Illinois is going debt ceiling comes before us, to not that says, as part of doing this, once we

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00036 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19843 get this economy moving again, we The PRESIDING OFFICER. The Sen- economists. What I found was a kind of have also to address the long-term debt ator from Minnesota. double-edged sword. One, they did be- we face in this country. And make no Ms. KLOBUCHAR. Madam President, lieve the package had a stimulative na- mistake about it, we have to do that I also want to acknowledge the new ture of anywhere between .6 and 1.1 both by addressing spending and by ad- Senator from Illinois and thank him percent, .6 being about 600,000 jobs—so dressing tax reform. for the time. But I also want to ac- 600,000 to 1.2 million jobs; unemploy- I was at a small business in Salem, knowledge the senior Senator from Illi- ment insurance was stimulative; the NH, yesterday, at a company called nois who is here, who just spent the payroll tax cut was stimulative, et MSI. They do HVAC systems. They are last few months serving honorably on cetera; and that we needed to do this. a small business. They have about 25 the debt commission on the National But then the flip side. And the flip employees. I asked them what they Commission on Fiscal Responsibility. side was, we are now reaching 63 per- were looking for from us in Wash- They came out with some rec- cent of GDP in debt. What will happen ington, and they said, a fair, simple ommendations. A number of us in this is one day, if this continues, we will go Tax Code. Chamber, while we may not support off a cliff economically. So we have to get serious about this every one and disagree with some of Some time ago, during the end of the problem. All we have to do is look at them, think that is something we must Bush administration, many of us were what is happening in Europe to know pursue. As they wrote in their report, on a phone call. We heard Secretary that we are headed that way if we do ‘‘Every modest sacrifice that we refuse Paulson and Federal Reserve Chairman not get this debt under control. We to make today only forces far greater Bernanke say that we are on the brink have to make some tough decisions sacrifices of hope and opportunity upon of a major collapse of this economy. that include both tax reform and fiscal the next generation.’’ Everything could go down—banks, restraint. I would feel better if this They are right. The longer we wait, credit institutions, et cetera. language were in the legislation that the more wrenching the choices be- I never thought this could ever hap- we are going to be voting on, but I come. And guess who is going to have pen in America. I now know that the think it is clear it is the sense of the to make those painful choices. It is our unprecedented can, in effect, happen in America, and that when we vote for a Senate—if we can get this resolution children and our children’s children. package that puts almost $1 trillion ad- done, it will be important to send that But you know what else. It is our- ditional on debt and deficit, we had message to everybody in the country selves. As the Senator from California better have a way to make a pivot, as about what we need to do. pointed out about an hour ago, 6 per- some people have called it, and do I yield the floor. cent—6 percent—of our spending is in- The PRESIDING OFFICER. The Sen- terest on that debt. those things that can curb expendi- tures. ator from Florida. So there are some commonsense sug- We are fortunate. This National Com- Mr. NELSON of Florida. Madam gestions in that report. That is what mission on Fiscal Responsibility out- President, I want to say to the new we have to do next year. When you lines a course. Not everything do I Senator from Illinois, thank you for look at this idea, people making over agree with, just like the tax bill. But, your forbearance. 10 years ago, this $250,000, the fact that going back to the nonetheless, it is a course of action Senator made his maiden speech on the Clinton levels—the Clinton tax levels— which can bring down this debt and floor, and it was about this very same when our country was incredibly pros- bring down this deficit. I am very issue. Because then, a decade ago, we perous, that that would bring in $700 proud of those Members who voted to had the privilege of having surpluses. billion to bring down the debt, that is sustain this report. Even with 11 Mem- My maiden speech was about exactly if why the majority of the people in this bers, I think it gives the kind of sub- we did not watch out, what was going country, the vast majority of the peo- stantial ability to this report to bring to happen is those surpluses were going ple in this country, want to see it as it before this body. to go into deficits. If we had been good one of the options for the long term. I would hope that before we have to stewards of our condition, we could For the short term, we know that our raise the debt ceiling, we would have have paid off the national debt over the country is still in a fragile state. We before us a package, that we would set course of 12 years. But we took a dif- know we cannot sock the middle class limits on spending, that we would ferent direction. with a $3,000 tax increase. We know freeze pay across the board, that we I am to be followed by the Senator that we have 200 million who are unem- would make substantial across-the- from Minnesota, and the Senator from ployed, through no fault of their own, board cuts in travel, in printing, and California. who are still looking for work. That is those things, not because that is a big I think what we are hearing here, in why we are passing this bill tonight. item but because it is an item that a bipartisan way, after we are swal- But beyond that, as we go to the next wakes up people. I found that on a city lowing a bitter pill of what we are year, we must work together, as you level. It exists on a State level, and it going to vote on tonight, that is going see what is going on today in a bipar- exists on a Federal level. to increase the debt $900 billion, be- tisan way, to put a plan in place. Be- There is much we can do, and I think cause under these economic cir- cause the markets will respond to that. at 63 percent of GDP, this debt and def- cumstances it is the right thing to do It will be good for our economy. We icit says to America: America, be con- to jump-start the economy— will show we mean business, and we cerned. America and American busi- I think what we are hearing now is a will not turn into one of those coun- ness, come home. Build your plants confluence of events that is going to tries overseas that is experiencing here. Help us rebuild this great coun- bring us starkly face to face, that we what they are experiencing now be- try. Help us build the industries of the are going to have to reduce the debt cause they did not make that long- future. But at the same time, right and we are going to have to do tax re- term commitment. now, we have got to make very deep form. Because the conditions are so I yield the floor. cuts across the board. raw now, it is our responsibility to ex- The PRESIDING OFFICER. The Sen- I yield the floor. plain what we see as the economic cir- ator from California. The PRESIDING OFFICER. The Sen- cumstances of the country, explain it Mrs. FEINSTEIN. Madam President, ator from Alaska is recognized. to the American people, and then act I also am one of those who worried over Mr. BEGICH. Thank you to the Sen- on it. this vote over the weekend that we ator from Illinois for giving us a little When emergency conditions arise, passed yesterday. I spoke on this very time before you have your maiden there is opportunity, and that is the floor about the fact that I did not like speech. I appreciate that. Thank you opportunity to make change for the the estate tax. I did not think wealthy very much. good. Americans needed a sustained tax cut. Let me echo and associate my com- I yield the floor. Then I began to make some calls to ments with all of the Members who

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00037 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19844 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 have spoken previously, and thanks to The PRESIDING OFFICER. The Sen- men against Stonewall Jackson in the Senator WARNER and Senator CHAM- ator from Illinois. Valley Campaign of 1862. He was twice BLISS for their work in bringing truly a ILLINOIS SENATORS elected to the Senate in 1849—first in bipartisan approach to how we start Mr. KIRK. Madam President, almost March, and again in October. But his the discussion and move forward on 30 years ago, I worked in the House of first election was voided on the deficit management and tax reform, Commons in London. In Parliament, a grounds that he had not yet been a U.S. which is critical for this country. new member’s maiden speech is given citizen for the required 9 years. Eight You have heard all of the statistics, great weight. Traditionally, this months later, he won election again all of the numbers, all of the reasons speech is used to highlight what a and finally was seated. Senator Shields why we should do it. But pretty simply, member’s priorities are and sets the is the only Member of this body to the way I look at this, if there is one tone for his tenure. My experience in have served in the Senate from three issue in my 2008 campaign that I talked London guided my thoughts 10 years States—in addition to Illinois, he was about at the very beginning of the ago when I was elected to the House of elected in Minnesota and Missouri. campaign it was about the deficit and Representatives. My maiden speech fo- Senator Shields also nearly changed what was happening, how much of your cused on the unique political history of the course of our Nation. In 1842, a tax dollars are going toward paying the the 10th Congressional District of Illi- young Abraham Lincoln wrote an debt, paying the interest. nois and its tradition of electing anonymous letter to the Sangamon I know, Madam President, you spoke thoughtful, independent leaders. Journal criticizing then State Auditor about it, the interest costs that are ab- As I stand here today, newly elected Shields for his decision to require the sorbing the amount of the budget here. by the people of Illinois to represent payment of taxes in silver or gold. But in reality, I remember in 2008, no their interests in the U.S. Senate, I re- When Lincoln’s future wife, Mary one paid much attention. Then sud- call my first speech in the House and Todd, and her friend got into the act by denly the crash occurred at the end of how humbled I was to follow such a dis- writing additional missives, Shields 2008 and then everyone wanted to talk tinguished group of men and women in asked the editor to reveal the identity about it, because it affected them and office. I am equally humbled as I as- of the letter writers. When Lincoln they now saw the picture. sume the office of United States Sen- claimed responsibility for all the let- But where we are today is an impor- ator from Illinois. ters, Shields demanded satisfaction and tant point. Tonight we will have a vote Since our admission to the Union in challenged Lincoln to a duel. on a tax package that will be tem- 1818, Illinois has sent a diverse list of Lincoln chose broadswords as the porary, a 2-year fix to a much more Senators to this Chamber. Many of my weapon of choice, and the two made complicated problem. When I came to predecessors served in uniform val- plans to travel to Missouri as dueling the body here, I sat down with a couple iantly, others had brilliant legal ca- in Illinois was illegal at the time. of Senators, both on the Republican reers, while still others excelled in Luckily, cooler heads prevailed and the side and Democratic side, talked about international diplomacy. As I take of- duel was called off, averting a poten- the issue of reform, and recognized fice, I want to reflect on those who rep- tially history-changing event. that we are truly going to change the resented Illinois in the Senate before Serving from 1847 to 1861, Democratic way our Tax Code works. We cannot do me, their accomplishments, and the Senator Stephen Douglas was known as these in bits and pieces. It has to be imprint they left on our great Nation. the ‘‘little giant’’ due to his short stat- true reform. One name hangs above all others. He ure but powerful hold on the Senate. So as we move into this next year, never served in the Senate but ran for While accomplished, he was over- 2011, not only do we have to take the the office in 1858. Abraham Lincoln was shadowed by Lincoln despite Lincoln’s tough decisions regarding the deficit, defeated in that election but won the loss to Douglas in the 1858 Senate elec- we have to be aggressive about tax re- Nation’s support for a higher office tion. Douglas served as the architect of form if you want to create certainty to during the Lincoln-Douglas debates. the Kansas-Nebraska Act of 1854 that the business community and our econ- His story also reminds the Republican repealed the Missouri Compromise, al- omy. A 2-year fix does not do that. and Democratic opponents of the cur- lowing settlers in Kansas and Nebraska I know there are many who have spo- rent Members of the Senate that their to determine whether or not they ken before me on all of the data points. best days in public life may still be would allow slavery. Douglas’s reputa- But purely and very simply put, if we ahead. tion waned in later years as he led the do not deal with this now—and ‘‘now’’ With regard to our Senators, one of Democratic Party to defeat in the elec- is in the next few months—we will hit the first was Ninian Edwards, a pioneer tion of 1860 by defending slavery in the that crashing wall, we will hit it hard, at a time when Illinois was actually southern States. His miscalculation and we will not have choices because the frontier. First elected in 1818, he dealt a blow to the ruling Democrats, we have not made a plan regarding the served until 1824, when he stepped down allowing the new antislavery Repub- deficit and tax reform. to become the United States’ Minister lican Party to win the White House. I thank the people who have put this to Mexico. He had the distinction of Another Illinois Senator, David together, Senator WARNER, Senator being the Governor of both the terri- Davis, holds a unique distinction, hav- CHAMBLISS, and thank all of the Mem- tory and State of Illinois. A true serv- ing served as an Associate Justice on bers, over two dozen, Republicans and ant of the people, he died in 1833, while the U.S. Supreme Court prior to his Democrats, who are here tonight talk- he helped treat victims of a cholera Senate service. In his nearly 15 years ing about the need for serious atten- epidemic carried by soldiers serving in on the Court, Davis is best known for tion to the deficit and tax reform. I the Black Hawk War. writing the decision in Ex Parte Mil- look forward to next year. Senator James Shields reminded us ligan, holding that a death sentence I yield the floor. that we are a State and Nation of im- handed down by a Civil War military The PRESIDING OFFICER. The Sen- migrants. Born in Ireland, he became a commission against a civilian was un- ator from Virginia. naturalized citizen in 1840. He served in constitutional, as civilian courts were Mr. WARNER. Madam President, I the Mexican-American war under Gen- functioning at the time. again thank my colleague, Senator eral Zachary Taylor, commanding a The Illinois Legislature elected Davis CHAMBLISS. There will be more to brigade in the battles of Vera Cruz, to the Senate in the midst of the dis- come. There were a number of other Cerro Gordo, Contreras, Churubusco, puted 1876 presidential election be- colleagues who couldn’t be here. The and Chapultepec. tween Rutherford B. Hayes and Samuel Senator from Illinois has been more Already one of America’s leading Tilden. Because of his service on the than kind. He will be part of meeting Irish-Americans, Brigadier General Supreme Court and his long reputation this challenge as well. Shields would later command a divi- for fierce independence, Senator Davis I yield the floor. sion during the Civil War, taking his was elected President pro tempore of

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00038 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19845 the Senate following the assassination leaving the Senate, he went on to chair have been champions in their own of President Garfield. Under the law at the Defense Base Realignment and Clo- rights. I am honored to call Senator the time, this placed him next in the sure Commission in 1994 and 1995. DICK DURBIN my colleague, and while line of succession to President Chester Born in Eugene, OR, Senator Paul we hail from different parties, we have A. Arthur, even though he was a fresh- Simon served from 1985–1997 as a pledged to work closely on issues that man Senator. staunch fiscal ‘‘pay-as-you-go’’ Demo- will benefit the people of our State. He, One of our greatest Senators was the crat. Simon worked with Senator like me, came to this body from the ‘‘man from Pekin,’’ Senator Everett ORRIN HATCH of Utah on a balanced House and quickly became known as a McKinley Dirksen, who served for near- budget amendment that, although un- champion of infrastructure improve- ly 20 years in the middle of the 20th successful at the time, deserves re- ments, including the critical O’Hare Century. His leadership was apparent newed attention now in light of our Modernization Program and mass tran- early in his life. During the First World crippling Federal debt. Although he did sit. His knowledge of the process of War, he entered service in the field ar- not win the Democratic presidential government is unmatched, and he is tillery as a private and left a second nomination in 1988, his greatest legacy quick to tell tales of his time as the lieutenant. While in the Senate, he will be the creation of the Paul Simon parliamentarian for the Illinois Gen- worked his way to lead his party as Mi- Public Policy Institute at Southern Il- eral Assembly. His father died of lung nority Leader and developed a reputa- linois University where he served as di- cancer when he was 14, and he has since tion as a pragmatic, thoughtful legis- rector until his death in 2003 following fought tirelessly to protect kids from lator. He is perhaps best known for his heart surgery. tobacco. We fly in smoke-free airlines role in passing the Civil Rights Act of Senator Carol Moseley Braun is a because of Senator RICHARD DURBIN of 1964. It was Dirksen who said on the true daughter of Chicago. She was born Illinois. floor of the Senate: in the city, attended Chicago public Recognizing his leadership, his cau- The time has come for equality of oppor- schools, and received degrees from the cus has voted to make him majority tunity in sharing of government, in edu- University of Illinois at Chicago and whip the past 4 years, one of the few cation and in employment. It must not be the University of Chicago. She remains Senators from Illinois to hold such a stayed or denied. It is here! today the only African-American position of distinction. It was Dirksen who helped gather the woman to serve in the Senate. After This brings me to perhaps one of the votes for cloture on the ground-break- she left the Senate she served as Am- best-known Senators, and the man ing legislation, ending the longest fili- bassador to New Zealand, and she re- whose term I complete—Barack buster in Senate history at 534 hours, 1 mains committed to public service, as Obama. The first time I had heard of minute, and 51 seconds. she is currently running for Mayor of now-President Obama was in Spring- If there is one of our Illinois Senators Chicago. field, IL, in 2000. whose spirit hangs closest to me as I Senator Peter Fitzgerald came to I was filing petitions to run for my begin my service here, it is Dirksen’s. Washington 2 years before I began serv- first term in the House, and in front of Senator Dirksen’s reputation as a fis- ice in the House. I was honored to serve me in line was a young staffer who cal conservative and a social moderate in the Illinois delegation with him for worked for a State senator from Chi- is one I hope to follow in my service in 4 years. When I took the oath of office cago who was running for Congress. It the Senate. He died after a bout with here in the Senate, it was with Senator is highly ironic that I won my election cancer in 1969, but his legacy lives on. Fitzgerald and Senator DURBIN at my that year, as state senator Obama lost One of the three Senate office buildings side, recognizing that leadership for his, but 10 years later Illinois had its bears his name, as well as Chicago’s our State requires a firm commitment favorite son in the White House. federal courthouse. to bipartisanship. Senator Fitzgerald Despite the media spotlight upon Senator Charles Percy entered the was born in Elgin and raised in Inver- him, then-Senator Obama sought out a Senate in 1967, serving alongside Sen- ness. He represented the northwest low initial profile in the Senate and ator Dirksen for 2 years. He was a suburbs in the Illinois State Senate be- worked with Senator DURBIN and the ‘‘Rockefeller Republican,’’ rep- fore his election to the U.S. Senate. rest of our congressional delegation to resenting the moderate wing of the Re- Senator Fitzgerald’s legacy in Illinois quietly advance some projects. While publican Party in the Senate and went will forever be remembered for bring- his tenure in this body was brief, he on to chair the Senate Foreign Rela- ing one of our Nation’s most dedicated and I successfully worked together to tions Committee. In addition to his crime fighters to our State. Senator secure Federal school funding for mili- work on foreign relations, he worked Fitzgerald is the reason why the North- tary families in north Chicago, IL, ful- on legislation to provide home owner- ern District of Illinois is home to one filling an important promise to take ship to low-income families. Senator of the best prosecutors in America, care of those who take care of us. In Percy and I also share a similar back- U.S. Attorney Patrick Fitzgerald. Pat- 2008, Barack Obama was elected the ground. Both he and I are graduates of rick Fitzgerald, who is of no relation to first African-American President of the New Trier High School in Winnetka, the Senator, has done more to fight United States, creating a vacancy that IL, and we also both served in the public corruption in our State than was filled by Roland Burris. It was the United States Navy. any other person. Senator Peter Fitz- greatest honor of my life to win elec- Senator Percy’s greatest legacy for gerald fought a tough battle to recruit tion to both Senator Obama’s unex- Illinois was his work to eliminate the and appoint Patrick Fitzgerald. Before pired term and a full six-year term. corrupt practice of nominating Federal his arrival, Illinois was the wild west of As I enter the Senate and open a new judges from the Chicago political ma- politics, and one of the most corrupt in chapter in the rich history of this chine. I wish to follow in Percy’s foot- the Nation. Under his tenure, U.S. At- body, I stand before you a fiscal con- steps, by ensuring all judicial nomina- torney Fitzgerald convicted two Gov- servative, a social moderate, and a na- tions go through a rigorous advisory ernors of corruption and countless tional security hawk. process. other State and local officials. We will I bring a commitment to fiscal re- Alan Dixon served Illinois in the Sen- forever live with the embarrassment of sponsibility, spending restraint, lower ate from 1981 to 1993, but before he convicted criminals like Governor taxes, tolerance, a strong national de- came to Washington, he served in both Blagojevich, but with the leadership of fense, and, above all, thoughtful, inde- the Illinois House and Senate, and Senator Peter Fitzgerald, we found the pendent leadership. later won statewide elections for treas- right prosecutor to slowly restore in- Today, we face great challenges both urer and secretary of state. He earned tegrity and honesty to our State. here and abroad. a reputation as a thoughtful, moderate Now I have spoken about the past Here at home, runaway spending and Senator who served the people of Illi- greats who have represented Illinois in unsustainable borrowing threaten the nois with a quiet dedication. After the Senate, but our recent Senators future of our economy. Unemployment

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00039 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19846 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 remains high, economic growth slow, government, and it was truly spell- The biggest threat we have to our national and small business employers are crip- binding. I could not imagine the talent security is our debt. . . . It’s not sustainable. pled by the tax and regulation deci- he had and I have witnessed since that Our country is heading toward fiscal sions of an ever-growing government. time. ruin. Nail after nail after nail is being As we look abroad, our challenges are The State of Indiana is losing a su- put into our coffin of economic catas- no less complex. perb Senator in EVAN BAYH. Senator trophe. The Senate is now gearing up We remain a nation at war with a BAYH announced his retirement earlier to put hundreds of billions of more debt terrorist enemy that seeks our destruc- this year and is wrapping up his second onto our already debt-laden country. I tion. term, where he has been a consistent fear our country’s fate could be sealed. As America winds down our mission fighter for the Hoosier State. So what should we do? Is it too late for in Iraq, our mission in Afghanistan That fight, however, did not begin the United States to reverse its course? grows more challenging by the day. when he was first elected to the Sen- To best answer this question, I am re- Iran continues its pursuit of nuclear ate. Not long after earning degrees minded of a famous quote: ‘‘Those who weapons, as terrorists in Gaza and Leb- from Indiana University and the Uni- cannot remember the past are con- anon threaten the security of our versity of Virginia, he was elected Indi- demned to repeat it.’’ strongest ally in the Middle East. ana’s secretary of state—the first of In order to best determine the path At home and abroad, our country five statewide elections he would win. our country will take in the future, we faces threats from Iran, North Korea, He served the people of Indiana for 8 need to examine the road we have al- and a number of terrorist cells based in years as Governor and led the State to ready gone down. Pakistan, Yemen, Somalia, and else- its largest budget surplus ever, while This chart I have in the Chamber is where. creating thousands and thousands of from the Great Recession of 1920 that In times of great uncertainty, we jobs. He also created the 21st Century most people in America have never need to come together—Republicans, Scholars Program that other States heard about. It shows that in 1920 we Democrats, and Independents—to build soon replicated, to ensure that all Hoo- had a fairly healthy economy, with a consensus, find solutions, and meaning- siers—rich, poor, Black, White—would little over 5 percent unemployment. fully improve the lives of the people we receive a quality education. The next year it shot up, it over dou- represent. He was later elected to the Senate, bled, to almost 12 percent. Well, during In that spirit, I look forward to where he has admirably put partisan that same period of time, the economy working with our senior Senator, Sen- politics aside and fought for the best declined by nearly 7 percent. In other ator DURBIN, to complete the O’Hare interests of Indianans. He has been a words, GDP went down by almost 7 per- Modernization Project, ban sewage champion for education, for energy, cent. From May of 1920 to July of 1921, dumping in the Great Lakes, and ex- and for fiscal responsibility. He has automobile production declined by 60 pand high-speed rail across Illinois. supported our troops fervently. Sen- percent and industrial production in From Rockford to Cairo, we will work ator BAYH was not afraid to call out America dropped by almost a third. to expand employment and opportunity leaders when he felt an injustice was The stock market also fell dramati- wherever possible—always seeking being done, and he spoke up often for cally. As a matter of fact, it lost half practical, bipartisan solutions to the our men and women overseas when nec- its value. So you can see the economic everyday challenges facing families essary. time of 1920 to 1921 was dire, maybe across Illinois. I am confident we can Of course, being a public servant was even more dire than what we face build a bipartisan, pro-Illinois agenda nothing new to him. His wonderful dad, today. that delivers for our State. Birch, held this very same Senate seat Well, we had a Federal Government Ninian Edwards, James Shields, Ste- and set a fine example for his son. that decided to take a different course. phen Douglas, David Davis, Everett Senator BAYH has achieved an incred- Instead of spending money, what they Dirksen, Charles Percy, Alan Dixon, ible amount for the people of Indiana decided to do was to cut tax rates and Paul Simon, Carol Moseley Braun, in his relatively short career, and he is cut spending at the same time. Presi- Peter Fitzgerald, Roland Burris, and not done yet. I know he will continue dent Harding actually proposed—and it Barack Obama—I enter this Chamber to work to improve the lives of the peo- was enacted by the House and the Sen- with all humility, and with the knowl- ple of Indiana and all Americans. ate—a dramatic cut in Federal spend- edge of those who came before us. They Senator BAYH is relinquishing the ing by one-third. To cut the Federal fought for a better future for the next title of Senator, but the role he cher- budget by one-third—can you imagine generation, as we shall fight for those ishes more than anything is that of fa- that today, cutting the Federal budget who follow. ther. His twin teenage boys, Beau and by one-third? Tax rates across the I yield the floor. Nick, are the joy of his life, and I am board, marginal tax rates across the The PRESIDING OFFICER. The ma- confident they are very proud of their board were slashed. The top rate at jority leader is recognized. father. I wish Susan, EVAN, and the that time was 75 percent. They cut it Mr. REID. Madam President, I am boys the very best in all their endeav- to 25 percent. So they did not just cut sorry to barge in here, but all day I ors. taxes and raise spending so you balloon have been trying to speak about one of The PRESIDING OFFICER. The Sen- the deficit, they cut taxes and cut our colleagues. So I appreciate every- ator from Nevada. spending at the same time. one’s attention. It is a short speech, Mr. ENSIGN. Madam President, I rise What were the results? Well, what do but I have been trying to get over here to talk about the tax bill that is before we know about the 1920s? What is the all day. us. I was one of just a few on our side common term we hear about the 1920s? TRIBUTES TO RETIRING SENATORS who happened to vote against a proce- It is called the Roaring Twenties. It is EVAN BAYH dural motion last night, and I wish to because the economy boomed during Madam President, I first met EVAN talk about why I will be opposing the the 1920s. This unemployment rate that BAYH when UNLV played for the Na- final passage of this bill. was 11.7 percent—within a year and a tional Championship at Indianapolis. This threat that is facing our coun- half, that fell to a little over 1 percent. But one of the most remarkable try today is greater than any external OK. So it went from 5.2 percent to 11 speeches I have ever witnessed was in threat we have faced for some time. It percent. They cut taxes and Federal the Capitol Rotunda, when we were is an internal threat that is stemming spending and, boom, the unemploy- there meeting the new Senators. It was from our own government that threat- ment rate plummeted—people had jobs. the first speech I know of that Senator ens the very future of our country. In Guess what happened to the national EVAN BAYH gave in the Capitol com- the words of ADM Michael Mullen, the debt—not the deficit—the national plex. He spoke without a note. It was a Chairman of the Joint Chiefs of Staff— debt. The national debt was cut by one- speech laying out his philosophy of this is exactly what he said: third during this time.

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00040 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19847 So if you cut taxes, you cut spending, infrastructure on all kinds of road The reason for our deficit is we spent you incentivize the private sector to projects, bridge projects, everything too much money. Republicans were create jobs. Guess what happened. you hear about that is supposed to be thrown out of office because we spent When more people make more money good to take you out of an economic too much money. But the deficit was and more people are employed, more downturn. not caused by the tax cuts of 2001 and money comes into the Federal Govern- Well, the 1990s in Japan is called the 2003. So it would be a mistake to raise ment to actually not only reduce the lost decade. They had basically zero taxes during this economic downturn. deficit but, in this case, actually pay growth during the 1990s. Actually, they However, I believe we need to cut down some of the national debt. have had another decade of lost eco- spending, based on the economic mod- Well, let’s move forward just a little nomic output. So Japan certainly is els I have already talked about during bit. not a good example of a place you can the 1920s and how they actually The Great Depression. Many people point to where government spending worked. When you cut taxes and cut have said we need to spend money to actually takes you out of an economic spending at the same time, it can actu- get us out of an economic downturn. downturn. ally pull your country out of an eco- During the Great Depression, we had a As a matter of fact, if you think nomic downturn. President, a Republican President, who about the $6 trillion Japan spent— There are businesses across my started this. He was very much an which is much larger than any eco- State—I spent a lot of the last couple interventionist President. During the nomic stimulus we have tried, much of months touring around my State Great Depression, he came in, had larger as a percentage of an economy talking to businesses. There is one trade protectionist policies, raised than what we tried during the Great small business owned by two women in taxes, and increased Federal spending Depression—so if it was going to work, Nevada called ‘‘Nothing Bundt Cakes.’’ with all kinds of different government why didn’t it work in Japan? Why They make little bundt cakes. Unfortu- projects on infrastructure. didn’t it work during the Great Depres- nately, they are really good, because I We always hear about how infra- sion? Why didn’t it work for the stim- like to eat them and it is not good for structure is going to help take the ulus bill we tried? By the way, Presi- my waistline, but they have a great economy out of the recession if we dent Obama tried a stimulus bill close product. I was talking to them and spend more and more money. Well, I to $800 billion. President Bush 2 years they would love to expand their busi- will have another point about spending before that tried an economic stimulus ness right now. Do you know what they said to me? They said, We can’t. Two on infrastructure and government bill of $150 billion, basically sending reasons: One is we think our taxes are spending in another country in just a checks to people hoping to get them to going to be going up so we can’t plan minute. But we have to remember—and spend it. We need good economic policy for it; and No. 2 was the effects of the I ask this simple question to audiences to get us out of an economic downturn, health care bill. We don’t know how back in Nevada whom I talk to: If gov- and these temporary little spending much that is going to cost us. So it is ernment spending was going to take us bills are not the way to go. the uncertainty out there of why they out of that Great Depression, why did So to continue on with this, let me would not expand their business, and the Great Depression last as long as it explain a little bit about what else hap- they probably could have created an- did? pened in Japan. First of all, Japan’s other 20, 30, 40 jobs. Those jobs didn’t I actually posed that question to the public debt in 1997 grew to over 100 per- get created because of the uncertainty new OMB Director. The new OMB Di- cent of GDP. By 2009, it is now almost of what is going on. rector said he has actually studied the 200 percent of GDP. So this spending So extending the tax cuts, I believe— Great Depression at length. So I asked not only didn’t take them out of an extending the current tax rates is a him the question: Why didn’t govern- economic downturn, it added to their better way to say it—is very important ment spending take us out of the Great future problems, and that is, unfortu- to give businesses some certainty. It is Depression? His answer was this: He nately, what we are threatening to not the only thing we need to do to said we did not spend enough money. I continue to do today. give them certainty, but it is certainly was flabbergasted by that statement. Let me talk about the tax extensions one of the things that is important. But that was his belief, that we did not before us today. Let me clearly state: I In this bill—which I agree with; I spend enough money. believe it would be a huge mistake for think it is good we are not going to let Many people believe the stimulus bill us to raise taxes on anybody during an the death tax go back up to 55 percent. we had here almost 2 years ago was not economic downturn. I am for extending There are a lot of small businesses out large enough and that is why we have the current tax rates and making sure there—try to imagine trying to plan not had an economic recovery. Well, those tax increases don’t go into effect. estate planning and things such as the reason we came out of the Great It has been argued by the other side that, especially in a small business Depression was not because of govern- that especially the top rates were the where you want to see it continue. All ment spending. It was because we kind reason we ran up the debt and the defi- of a sudden, maybe it is going to go of forgot about the Great Depression cits during the Bush years. Well, if my down. Well, now we are going to do a 2- because of World War II, and our coun- colleagues remember when President year extension. It is very difficult to try completely focused on World War Bush came into office, similar to what plan for those things for the future. We II. The stock market did not recover to happened when President Obama came need to give more certainty. Two years 1929 levels for 25 years. FDR was a into office, he inherited a recession. in this bill is better than nothing, but great wartime President, but his eco- Then we had 9/11 happen, and it sent us we still need to make that longer term nomic policies were not good for this into an even worse recession. In 2001, to so you can do estate planning and busi- country. stimulate the economy, we did cut ness continuation planning. Because Well, where else can we look in his- taxes. The mistake we did make is we think about this: If a small business is tory to find whether government didn’t cut spending at the same time, owned by a family versus a business spending actually works to take you but at least we cut taxes. The blue line that is owned by a corporation, if out of an economic downturn? are revenues. So when the recession somebody dies in the corporation, the In Japan, during the 1990s—this chart hit, we cut taxes and it takes a little business continues. If somebody dies in actually shows 1988 to 1998—they had while to recover, but after that, reve- a small business where the principal government spending as a percentage nues—and these are the 2001 tax cuts owns the business, they may have to of GDP go up. Yet in Japan—this is the and these are the 2003 tax cuts—actu- sell the business to pay the taxes. That red line. The blue line is spending; the ally went up. business actually may end up getting red line is unemployment—it kept The reason for our deficit was not closed down and those jobs are lost. going up. Japan tried six different that we didn’t have enough money So it is important to give some cer- stimulus bills—a total of $6 trillion on coming in to the Federal Government. tainty when it comes to death tax

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00041 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19848 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 planning, estate tax, whatever term of the world that said we are going to on the U.S. Government’s AAA rating during you want to use with it; that is impor- do something about the debt. the next 2 years. tant, especially for small businesses, Let’s put up the chart. We just had In common language, what does this ranches, and farms across America. the debt commission a few weeks ago say? This says we are becoming a big- The top rate we keep hearing criti- come out with their report—the Presi- ger risk and it is threatening our AAA cized as far as extending that, they say dent’s debt commission. This is one of rating which means if this AAA rating it is only 1, 2, 3 percent of the people, the quotes from it: ‘‘America cannot be goes down, we pay higher interest whatever number I have heard tossed great if we go broke.’’ That is exactly rates. Just like an individual, you are out from the other side. What people what we are doing: We are going broke. more of a risk. When you borrow fail to realize, though, is that is 25 to 35 Harken back to the first chart, Admi- money, you pay a higher interest rate. million people who are employed by ral Mullen. Remember what the Chair- This number here is based on a AAA those very small businesses that make man of the Joint Chiefs of Staff said. I rating. These numbers all get much the top rate. So if you raise taxes on want to repeat this. This is so impor- worse if we lose our AAA rating. those people, they have less money to tant: ‘‘The biggest threat to our na- The bill we have before us—we should spend to buy that next piece of equip- tional security is our debt.’’ He said, have sent a message while we were con- ment. Somebody had to make that—if ‘‘It’s not sustainable.’’ tinuing the current tax rate, if we it is in America, that created jobs in This debt is real. It is a very huge wanted to do the unemployment bene- America—or they can’t hire that next threat to the future prosperity of fits, which I believe we should have ex- employee. So we don’t get the job cre- America. tended. We should have done that with ation we want. Raising taxes on small This bill before us is sending a mes- spending cuts in other places. businesses would be a mistake. Raising sage to the markets. It is saying, even Senator COBURN has a package to taxes on the middle class would be a though the debt commission came out vote on that has real spending cuts. I mistake. Especially if they can plan and said we need to trim this by at have offered amendment after amend- long term, if the rates they know are least $4 trillion, this spending and this ment after amendment on this floor on going to be there for the long term, deficit we have going, you know what, spending cuts. We always hear during they can put that in part of their budg- we are just going to add hundreds of campaigns: I am for fiscal responsi- et. If it is just a one-time check, they billions more to that problem. So I be- bility. I am for this, I am for that. can’t plan for the future. I actually dis- lieve what we have before us is even When it comes time for voting, we agree with the payroll tax that is in going to get worse. Before this bill we never seem to get the votes. When are here, at least the way it is structured, will vote on today, these are the Presi- we going to actually show some fiscal the same way that in President Bush’s dent’s projections: The red bars are in- responsibility around this place? stimulus package a couple of years ago terest we pay on the national debt, This bill should have at least $100 bil- where we sent $600 back to individuals. such as interest on your credit card. A lion, $200 billion in offsets. The Con- This isn’t the long term solution that family pays interest on a credit card gressional Budget Office and the Joint we need. and doesn’t get anything for it. It is be- Committee on Taxation said this bill is Think about the mentality of fami- cause of their overspending habits. going to add $900 billion to the debt— lies. If there is a difficult time that Well, this is the result of Congress’s $900 billion. Shouldn’t we at least have families are going through, if they get overspending habits. offset some of that to show the world a check in the mail, and they know Next year, in 2011, it is going to be that we are actually serious about fis- they may be losing a job or they are close to $250 billion. We get nothing for cal responsibility? That is all I am say- barely getting by as it is, if they get a that. We get no roads, no schools, no ing we should have done and why I am little money in the bank, are they veterans benefits, no anything. That is voting against this bill, because I don’t going to spend that? Or are they maybe just money we are paying to the think we can continue to add more and going to pay down debt or save it be- Saudis, the Chinese, and other foreign more and more debt. The debt commis- cause of the uncertain economic fu- governments who have bought our sion had it right: America cannot be ture? A lot of families are making the debt. In 2012 it goes up further and fur- great if America is broke. decision to save it or pay down debt. So ther. In 2020, it is over $900 billion a Let me conclude. The 1920s showed it is not stimulating the economy as year in interest on the national debt. you can have economic recovery with- people think it will. The other problem That is more than we pay for Social out adding to the debt actually because also with the payroll tax and some of Security, Medicare, Medicaid, or na- the economy grows and you have held the other taxes in this bill that are ex- tional defense, and we get nothing for the line on spending, and you can actu- tended is adding to our national debt. that. This path we are on is ally pay down the debt. That is what The Bush economic growth package, unsustainable. we did in the late 1990s. We didn’t actu- his stimulus bill he put together, we We saw what happened to Greece ear- ally cut spending then, but we at least have heard about this being a bipar- lier this year. Within 48 hours, there slowed the rate of growth of spending, tisan agreement. The bill was passed was an economic implosion, and if they with the Republicans in Congress and a 81–16. Every single Democrat actually hadn’t had the European Union to bail Democratic President, and we had eco- voted for that bill. Sixteen Republicans them out, their country literally would nomic growth, which got us to not only voted against it, but it was a bipar- have gone bankrupt. Not too long ago a balanced budget, but it got us to tisan bill. People grabbed hands and in Ireland, within about 7 days, the where we were paying down some of added more money to our debt. same thing happened. Once again, they the debt. That is what we need to do People talk about this bill being a had the European Union to bail them now—start going back to 2008 spending compromise. Democrats wanted cer- out. What happens if the same thing levels. Spending has increased well tain things; Republicans wanted cer- happens in America? over double digits over the past couple tain things. Here is what a compromise Just this morning, this is what of years around this place, and we were is around this body. A compromise is: Moody’s, one of the rating agencies, spending plenty of money in 2008. You want certain things; I want cer- said: So let’s go back to 2008 levels—that tain things. We will get what we want will save us a couple billion dollars— Unless there are offsetting measures— and we will pass that debt on to our and then let’s work on eliminating children and our grandchildren. That is That means spending cuts— some of what Senator COBURN has iden- how this body is operating right now. the package— tified as a lot of wasteful spending pro- We are being fiscally irresponsible with The package is the bill we have be- grams in this country, which is at least the bill before us today. Yes, we need fore us today— another $150 billion in wasteful pro- to extend the tax rates. But we should will be credit negative for the U.S. and in- grams he has discovered. If this coun- have at least sent a message to the rest crease the likelihood of a negative outlook try is actually serious about debt, then

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00042 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19849 we will continue to be the leader of the jobs and other jobs across America are the ones loaning us the money. Of world, our economy can continue to building things that will serve us for course, it calls into question whether grow, and America’s best days really generations to come. they think we are creditworthy. That can be ahead of us. But if we choose to The New Deal was launched, and not is why we need to do something about continue to be fiscally irresponsible, long after it was launched, voices simi- our debt as we get more deeply into then I am afraid we could be headed lar to ones we have heard this evening debt. down a path that we cannot reverse. If came forward and said: Wait a minute, The Senator from Nevada talked what happened to Greece and what we are spending money we don’t have. about the state of the economy and the happened to Ireland happens to the We are going into debt as a nation. debt we are facing, but he failed to tell United States, there is no one to bail Those voices started to prevail. So the whole story. I always say the story us out. Franklin Roosevelt and the New Deal should begin with what the state of the So we need to start acting in a fis- started to back off. They backed off the economy was the day President Wil- cally responsible way, not as Repub- stimulus to the American economy, liam Jefferson Clinton left office. At licans, not as Democrats, but as Ameri- and the unemployment rate, which had that moment in time, the accumulated cans, and say to these young people, gone down from over 20 percent to 13 or debt of America, from George Wash- like we have sitting before us here 14 percent, went back up again to 19 ington through President Clinton’s 8 today, we care about you, we care percent and languished because, with years, was $5 trillion. At that time, we about your future, and we want Amer- the lack of stimulus into the economy, were in surplus on our annual budgets, ica to be as great for you as it has been America was not getting well and and President Clinton turned to incom- for us. The only way to do that is to strong. ing President George W. Bush and said: make sure we get our fiscal house in Then something came along which Next year, we project a $120 billion sur- order and quit passing so much debt on the Senator from Nevada failed to plus for your budget, so we are leaving to future generations. mention. He spoke about how govern- you in good shape, not with red ink but Mr. President, I yield the floor. ment spending really doesn’t invig- with black ink—a $5 trillion debt, $120 The PRESIDING OFFICER (Mr. orate an economy. I would suggest to billion surplus in the coming year. Eight years later, at the end of UDALL of Colorado). The assistant ma- him that he left out one phrase in a jority leader is recognized. speech I would like him to look up— George W. Bush’s administration, the Mr. DURBIN. Mr. President, I ask World War II. When we went into that national debt had grown from $5 tril- unanimous consent that after I have great war to stop Hitler, to stop the lion to $12 trillion—more than doubled completed my remarks, the Senator forces of nazism and fascism across in 8 years—and President George W. Bush said to incoming President from Rhode Island, Mr. JACK REED, be America, we mobilized this country Obama: I am not leaving you a surplus; recognized. and put it to work building the war I am leaving you a $1.2 trillion debt for The PRESIDING OFFICER. Is there machine. Great sacrifices for families objection? the next year. across America—Rosie the Riveter. George W. Bush inherited a $120 bil- Without objection, it is so ordered. Mom went to work because Dad was off lion surplus when he came to office, Mr. DURBIN. Mr. President, I have fighting the war. Everybody pitched in. but he left behind a $1.2 trillion debt. listened carefully to the remarks of the We went in debt as a nation, but we How did we reach such a sorry state in Senator from Nevada, and I respect won that war and came out of it with a mere 8 years? President Bush was the him, although I must disagree with a strong, thriving economy, one of the first President in history to cut taxes him on several particulars. strongest in the world. So to argue in the midst of a war. It is counterintu- When I look back at history, I see it that government spending—which itive, and he did it. He believed the differently. What I see is a Great De- there was a lot of during World War economy would grow, and it didn’t pression facing America that led to II—didn’t have anything to do with work. As a result, we got more deeply record unemployment, business fail- economic stimulus is to ignore the ob- into debt. He gave tax cuts to the ures, farm failures—one of the worst vious. It did. wealthiest in America, and they are economic conditions faced by America Let’s fast-forward to where we are the least likely, from an economic in modern times. today and where we are tonight. point of view, to invigorate our econ- The election of Franklin Delano Roo- I see my colleague, the Senator from omy. And then he turned around and sevelt in 1932 and his ascension to of- Rhode Island, is here. He has been had several programs he signed into fice in 1933 ushered in a new approach, chairman of the Joint Economic Com- law that were totally unpaid for, just an approach that was called the New mittee, and he understands the eco- adding to our debt. Deal. That basically said: We are going nomic conditions better than most of That is where we find ourselves to take control of the situation. We are us who serve in the Senate. But I got a today. That is where the deficit com- going to stand behind your deposits in little insight into our economy by serv- mission finds itself. So just a few the bank to make sure you don’t lose ing on the President’s deficit commis- weeks ago, we reported—11 out of 18 them. If the bank fails, you won’t be sion for the last 10 months. We met members voting—in favor of the deficit broke—the Federal Deposit Insurance week after week, month after month, commission. Two weeks later, here I Corporation. We are going to put the and we talked about the state of the stand on the floor of the Senate, and watchdogs on Wall Street to make sure American economy and the debt of our we are considering a bill which will add people don’t do things there that are Nation. $858 billion to the national debt. That basically, if not illegal, unwise, and so I came to the conclusion—which 11 isn’t something we anticipated when we are going to make certain we have out of the 18 members of the deficit the deficit commission labored for 10 good business practices there. We are commission agreed with—that the cur- months trying to figure out ways to going to stand behind the farmers. Be- rent situation is unsustainable. We are, cut $4 trillion out of the debt over 10 fore we let them lose their farms, we in fact, borrowing 40 cents out of every years. Here we are, 2 weeks later, add- are going to try to get them through a dollar we spend. Whether that dollar is ing this money to our debt. difficult year so they can be there to spent for a new missile system for the I will tell you that I vote for it, and fight again. We are actually going to Pentagon or whether it is spent for I do with a specific reason in mind. I create jobs across America. First, for food stamps for the poorest of the poor believe that unless we do something de- those who are working, we are going to in America, we borrow 40 cents out of finitive and decisive, we are not going create the minimum wage so that peo- every dollar spent, and we borrow it to come out of this recession as quick- ple know they can get a basic salary to from countries that are becoming our ly as we should, more people will lose live on. And for those who couldn’t find creditors, our mortgagors, countries their jobs, and our debt will get worse. work in the private sector, Franklin such as China, the OPEC nations, We need to stimulate and invigorate Roosevelt said: We will create WPA Korea, Japan, and Saudi Arabia. They this economy.

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00043 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19850 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 I think President Obama was right 2 spending, Members of Congress, you not help us accomplish that goal of cre- years ago when he had a stimulus must now increase the debt ceiling of ating and sustaining jobs, but I will package. I might remind my friends on America because we need to borrow the support this package because right the other side of the aisle that a third money to cover what you voted for, in- now, back in my home State of Rhode of it was tax cuts—which is their cluding the vote that took place this Island, there are approximately 65,000 mantra in good times and bad—a third December, which creates $858 billion men and women from all walks of life of it was tax cuts, a third was a safety more in debt, you will hear the other who are unemployed and need this bill. net, and a third was basically designed side of the aisle screaming, wailing, Many of them are individuals in the to build the infrastructure of this whining, and crying that there is no middle of their careers who have country. I thought it was a good stim- way they can vote to increase the debt worked since they were 18 or 21 con- ulus package, and I do believe it cre- ceiling of America. The same people tinuously, productively, and now they ated millions of jobs or at least saved who will have voted for this tax pack- find themselves for the first time in millions of jobs that would have been age increasing the debt of America by their lives without any job. If we do lost. The same holds true today. We $858 billion will refuse to pay the check not act, they will be without the means need to invigorate this economy and when it comes to the table after the to support their families and provide move it forward. That is why I support dinner. They had the big banquet, they for their children. this package. announced the tax cuts for the This bill preserves emergency unem- Let me tell you something else. wealthy, but when the check comes to ployment insurance to help these indi- There are things in this tax package the table that says, incidentally, now viduals make ends meet and help them which will be voted on tonight or early we have to borrow that money, they to hold their families together. It will tomorrow morning which I find awful are going to say: No way. We are fis- help ensure they can buy the groceries, and indefensible—two in particular. cally conservative. We don’t borrow pay the utility bills, and literally keep First, that we would extend tax cuts to money. No, but you spent it. And they a roof over their heads in many cases. the wealthiest people in America at have spent it either directly on spend- Their situation is one of my primary this moment in our history I think is ing or indirectly on tax cuts. That will concerns in these difficult times. indefensible. Second, that we would come between April 1 and July 1. Moreover, these unemployment bene- segregate a small group of the wealthi- I am sorry that as part of this tax fits don’t just help the jobless, they est people in America and say we are package we do not have an increase in boost the entire economy as the unem- going to give them blessed treatment the debt ceiling. Those who are going ployed spend their benefits at local when it comes to the estate tax they to want to wave the banner of tax cuts businesses. Americans want us to focus pay I think is mindless. It is not going and claim all the credit for tax cuts on creating jobs and generating eco- to invigorate the economy. In the should also stand up and take their nomic growth. Indeed, for much of the name of justice and fairness, these peo- medicine because we are going to have past 2 years, Democrats proposed many ple, who have done well, should pay to borrow the money to pay for it, and things that would help middle-class back some of it to the country that has we will need their votes when it comes families and small businesses only to allowed them their prosperity. Instead, time to address the debt ceiling. be thwarted or slowed by procedural the Republicans have insisted that the Mr. President, I yield the floor. roadblocks and sometimes disingen- wealthiest of the wealthy in America The PRESIDING OFFICER. The Sen- uous claims. should receive more. ator from Rhode Island is recognized. Just two Saturdays ago we could not This chart really tells you what is Mr. REED. Mr. President, I under- break filibusters of two bills that happening in this country, and it is a stand there is unanimous consent that would have passed the middle-class tax scary story—not just sad but scary. I be recognized and then Senator cut and also renewed unemployment The accumulation of wealth for the MCCAIN; is that correct? benefits without un-needed additions. richest 1 percent of the population in The PRESIDING OFFICER. The On several occasions over the past few America—in 1976, the richest 1 percent agreement was simply to recognize the months we have had legislative initia- of Americans had 8.9 percent of the Senator from Rhode Island. tives for tax extenders that would have wealth in America. In 1976, the top 1 Mr. REED. Mr. President, I ask unan- included key elements such as a na- percent had 8.9 percent. Now go to 2007. imous consent that Senator MCCAIN be tional housing trust fund and key in- The top 1 percent population in Amer- recognized as soon as I make my re- frastructure incentives. Again, those ica has 231⁄2 percent of the wealth. marks and then Senator BINGAMAN at two were thwarted by procedural road- I don’t begrudge anyone prosperity, the conclusion of Senator MCCAIN and blocks. wealth, and comfort, but they are get- then Senator CARDIN, and that if there But now we are faced with the spec- ting wealthy at the expense of a soci- is a Republican seeking recognition be- ter of a tax increase on the middle ety which is not providing for those in tween Senator BINGAMAN and Senator class during this dispiriting economic lower income categories. The people in CARDIN, that Senator be recognized at time if we do not act. Perhaps we could lower and middle-income categories that time. have avoided this situation. The Bush are falling further and further behind. The PRESIDING OFFICER. Is there tax cuts, which I opposed, had an arti- That is why we cannot allow this tax objection? ficial termination point in order to fix cut that otherwise would have been re- Without objection, it is so ordered. them into budget projections. But, imposed as a tax increase on January 1 Mr. REED. Mr. President, I rise to again, we are here today at the last on them to occur. That is why I have discuss the tax proposal before us. We minute, and it appears the only path swallowed hard and said I will vote for are in a critical moment. Our economy our Republican colleagues will accept this package even though I think the is slowly climbing from the depths of a is the one before us. Indeed, Repub- breaks for the wealthy really can’t be deep recession but without additional licans will not let this train leave the justified from an economic or justice support it could easily backslide. We station unless the very wealthiest viewpoint. I just don’t think they can. cannot afford to let that happen. hitch a ride too. But that is the reality we face. There are still too many Americans— The challenge we face is the need to I do want to say one thing before I 15 million—who desperately want the sustain and accelerate growth so em- yield to my friend from Rhode Island. opportunity to work but cannot find a ployment increases while also recog- Mark my words, write them down, put job in this difficult environment. My nizing the need to reduce the deficit them away in a desk drawer, and pull top priority is creating jobs and sus- once the economy is stable again. That them out April 1, and they are these: taining demand to continue job growth is no small challenge. As a number of When the Obama administration comes in this country. budget deficit commissions have sug- to Congress and says, now that you I have serious concerns about several gested in recent weeks, we may have to have voted for additional tax cuts and of the provisions of this bill that will consider reforms to Medicare, Social

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00044 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19851 Security, defense funding, tax expendi- the renewable energy production ployed and struggling middle class tures, and investment in domestic pro- grants for wind, solar, geothermal, and families. That is why I will support grams—all of them to stabilize the def- a host of other technologies. this bill. icit in the long term. I do not relish This legislation responsibly ensures Thank you, Mr. President. those tasks, and I do not imagine that the tax rates in place for lower in- I yield the floor. America’s families relish it either. come and middle-income families stay The PRESIDING OFFICER. The Sen- However, this is a reality we must con- as they are today. It maintains the ator from Arizona is recognized. front as our economy improves. It is a middle-class tax cut. Indeed, the great OMNIBUS APPROPRIATIONS reality that will be difficult. It is a re- bulk of the benefits of this bill will be Mr. MCCAIN. Mr. President, accord- ality that will be a great challenge, but directed at stimulating the economy ing to my calculations, it has been 42 it is one we must face. and assisting the average American days since the people of this great Na- This bill includes many provisions family. tion of ours spoke, and they spoke in a that will provide economic growth. As But in the face of this deficit, it is very strong fashion. It was described I have mentioned before, the effect of very difficult to justify the provisions by the President of the United States an unemployment insurance extension of the bill for the wealthiest Americans as a ‘‘shellacking.’’ It was described by is not just on the individual recipients, because they provide negligible eco- others as a tsunami. it is estimated by nonpartisan experts nomic growth while adding to the def- The House of Representatives, as we that nearly $2 of economic activity is icit. In fact, these provisions work know, passed to Republican hands. In generated for each $1 in benefits. That against the two great issues we must this body there were six additional is a very effective stimulus for the grapple with, stimulating growth and Members from my side. I thought the economy. beginning to control the deficit. Ac- message was pretty clear—that the The bill also includes a 2-percent cut cording to the nonpartisan Congres- American people said: Enough with the in the payroll taxes paid by workers, sional Budget Office and other experts, spending. Enough with the porkbarrel and after local or State sales taxes, re- the decision to provide millionaires earmark spending. Enough of mort- ductions in the payroll tax have the and billionaires with tax breaks will gaging our children and our grand- biggest impact on families living on not generate many jobs because they children’s futures. I do not know of a single pundit or the average wage. Again, this provision are more apt to save these benefits observer of the chattering class who is estimated to create more economic than circulate them in the local econo- did not say the message was clear from activity than it costs, and it will, in es- mies throughout the United States. the American people. The phenomena sence, be the first raise many workers In particular, the decision to insist of the tea party was ‘‘taxed enough al- have seen in several years. on such an aggressive estate tax pro- ready,’’ but they were against the In addition, the proposal contains a posal is very difficult to justify. In- spending, the earmarking. The ap- host of other benefits for working- and stead of adopting a commonsense pro- proval rating of Congress is somewhere middle-class families—by extending posal that would have exempted well at, depending on which poll you look the child tax credit for 10.5 million over 95 percent of all estates, our col- families as well as an extension of a at, 10, 12, 14, 16 percent—overwhelming leagues on the other side of the aisle partially refundable tax credit of up to disapproval of the way we do business. demanded that the bill contain a tax $2,500 for the cost of college tuition. All At 12:15 today my office received this break worth more than $25 billion over of this economic activity means jobs appropriations bill, 1,924 pages long, the next 2 years for the top one-quarter and more money in the pockets of and containing funding for all 12 of the of 1 percent. Let me repeat that, a $25 hard-working Americans. annual appropriations bills, for a grand These are targeted, well-designed billion provision that benefits one- total of $1.1 trillion. It is important to provisions worthy of support. Indeed, quarter of 1 percent of all estates. note of this 1,924 pages is only the leg- private sector forecasters as well as It is a slight comfort that these pro- islative language and does not include economists such as Mark Zandi suggest visions are not permanent. While I the thousands of pages of report lan- this bill will help maintain the fragile would gladly support an effort to re- guage which contains the details of the recovery and could lead to a 1-point move or modify these provisions imme- billions of dollars in earmarks, and I drop in the unemployment rate and diately, at the very least they have to am sure major policy changes written perhaps as much as a 1 percentage in- be the first on the list of those tough without a hearing, written without crease in GDP in 2011 as compared to decisions we have to face in order to re- scrutiny, written without the input of previous baselines that took into ac- duce the deficit in the future. We do the majority of the Members of this count only the extension of the middle- have to address the deficit and part of body, written by a handful of Senators class tax cut and expiring provisions that effort must clearly be through tax who happen to be members of the Ap- such as the AMT. reform and eliminating tax expendi- propriations Committee. There is, from experts, considered tures. The American people said just 42 opinion that this legislation will help I think there is too often a percep- days ago: Enough. Are we tone-deaf? grow the economy, reduce the unem- tion that tax cuts are free. As my col- Are we stricken with amnesia? What is ployment rate, and put people back to league from Illinois suggested, failing going on? We have just begun to look work. The bill also recognizes the need to link the debt ceiling with this par- at this monstrosity, and we are begin- to build on the small business lending ticular legislation could give the im- ning to uncover which earmarks the and tax credit bills we enacted this pression that we can cut taxes with no appropriators decided to fund. summer and fall. Indeed, the provisions effect on the deficit. These tax cuts do Thanks to a new online data base, we to allow businesses to expense 100 per- add to the deficit. We have to recognize at least know what earmarks were re- cent of all their investments in 2011 is that. When we come back to face the quested by Members and how much expected to generate more than $50 bil- difficult issues as we did in the 1990s— those projects would cost the American lion in additional business investment I supported President Clinton’s efforts people if they were all funded. Organi- next year. That is private companies which led to a balanced budget, which zations such as Taxpayers Against Ear- investing in private enterprises to put led to a surplus, which led to employ- marks, Washington Watch.Com, and people to work on a private payroll. ment gains—those decisions involved Taxpayers for Common Sense joined The bill also encourages businesses revenue, cutting entitlements, cutting forces to create a database. According to invest in future products by extend- defense spending, and making a lot of to the data they compiled for fiscal ing the research and development tax difficult choices. We will have to face year 2011, Members requested over credit to keep us competitive in a very those choices again. 39,000 earmarks totaling over $130 bil- competitive world. We are at a point where the benefits lion—those were requested. The bill also recognizes the need for of this bill are necessary to accelerate I encourage every American to go to clean, domestic energy by continuing economic growth and to help the unem- the Web site, endingspending.com,

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00045 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19852 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 study it, and make yourselves aware of Furthermore, the majority decided much of what we are doing here. In how your elected officials seek to that they did not feel like doing a fact, I think they are going to be deep- spend your money. budget this year. How is that respon- ly disappointed and greatly angered be- In the short time I have had to re- sible leadership? This is the ninth om- cause we have, with the consideration view this massive piece of legislation, nibus appropriations bill we have con- of this bill, repudiated all they thought we have already identified approxi- sidered in this body since the year 2000. they were standing for and voting for: mately 6,488 earmarks totaling nearly That is shameful. We should be embar- an end to this kind of behavior, an end $8.3 billion when we are running record rassed by the fact that we care so little to the earmarking and porkbarrel deficits. When there is a $40,000 debt for about doing the people’s business that spending, an end to the mortgaging of every man, woman, and child in Amer- we continuously put off fulfilling our our children and our grandchildren’s ica, we are going to have 6,488 ear- constitutional responsibilities until future. marks totaling nearly $8.3 billion. Here literally the last minute. So it is with great regret that I again is a small sample: $277,000 for potato One thing is abundantly clear. The have to come to the floor, as I have for pest management in Wisconsin—you majority has not learned the lessons of many years, and be critical of my col- will notice there is a location for every last month’s election. The American leagues who are good and honorable one of these earmarks—$246,000 for bo- people could not have been more clear. and decent Americans. But this proc- vine tuberculosis in Michigan and Min- They are tired of the wasteful spend- ess, this process of earmarking, which nesota; $522,000 for cranberry and blue- ing. They are tired of big government. this is an example of, is not honorable berry disease and breeding in New Jer- They are tired of sweetheart deals for behavior. sey; $500,000 for oyster safety in Flor- special interests. They are tired of I yield the floor. ida. business as usual in Washington. And The PRESIDING OFFICER. The Sen- One of my favorites that pops up all they are certainly are tired of massive ator from New Mexico. the time is $349,000 for swine waste bills, like this one, put together behind Mr. BINGAMAN. Mr. President, I management in North Carolina. An- closed doors, and rammed through the want to speak for a few minutes on the other one of my all-time favorites that Congress at the last minute, so that no tax package that is before the Senate is always in there, $413,000 for peanut one has the opportunity to read them and that we will be voting on tomor- research in Alabama; $247,000 for virus- and no one knows what kind of waste row. free wine grapes in Washington; that is in them. Yesterday, the Senate voted to pro- $208,000 for beaver management in Let me be clear about one thing: If ceed to this $857 or $858 billion package North Carolina; $94,000 for blackbird the majority leader insists on pro- that would have the effect of extending management in Louisiana; $165,000 for ceeding to this monstrosity, the Amer- all personal income tax rates for 2 maple syrup research in Vermont; ican people will know what is in it. I years, substantially reducing the es- $235,000 for noxious weed management will be joined by many of my col- tate tax, establishing or extending a in Nevada. That is another one that, leagues on this side of the aisle to en- host of tax incentives for American when you total it up over the years, sure that every single word of this bill families and businesses. comes into millions. I think the way to evaluate this One hundred thousand dollars for the is read aloud here on the Senate floor. package is on two basic grounds. First Edgar Allen Poe Cottage Visitor’s Cen- I encourage my friends on the other of all, how does it help us deal with the ter in New York. Another of my all- side of the aisle to rethink their strat- very substantial economic problem we time favorites that is always on here egy. Let’s move forward with a clean, face with trying to strengthen the re- every year, $300,000 for the Polynesian continuing resolution, keep the govern- Voyaging Society in Hawaii. If some ment in operation for 45 days, let the covery from this deep economic down- people are watching, you are thinking I new Congress, that reflects the will of turn that we have experienced and, sec- am making this up. I am not making it the American people, address these ond, how is it helping us to set a long- up. Three hundred thousand dollars for issues in the long term. Let’s not go term course to achieve fiscal stability. the Polynesian Voyaging Society in out the door of this Congress with a On the first issue, the economic re- Hawaii; $400,000 for solar parking can- whole bunch, 6,800-some earmark covery, there is much in the package opies and plug-in electric stations in projects that the rest of us have not that I would strongly support and that Kansas. read. I encourage my friends on the I do strongly support. We should pro- Additionally, the bill earmarks other side of the aisle to rethink their tect 98 percent of American households $720,000 to compensate ranchers in Wis- strategy. Let’s move forward with a from any tax increase. We should ex- consin, Minnesota, and Michigan when- short-term continuing resolution, 45 tend benefits to our fellow Americans ever endangered wolves eat their cat- days. Senator GREGG has an amend- who are unable to find jobs in this pe- tle. As my colleagues know, the U.S. ment pending to do that. riod of very high unemployment. We Fish and Wildlife Grey Wolf Program is The majority may be able to strong- should continue key business incen- under intense scrutiny for wasting mil- arm enough Members into voting for tives such as the section 103 program, lions of taxpayers’ dollars every year this omnibus, but they will not win in which has provided a critical lifeline to to ‘‘recover’’ endangered wolves that the end. The American people will re- the renewable energy industry. are now overpopulating the West and member, and I predict we will see a re- If the only economic imperative that Midwest. My State of Arizona has a peat of last November 2 in the very we faced was how to strengthen this re- similar wolf program. But ranchers in near future. covery from the downturn, I would be my State are not getting $727,000 in Here we are on December 14, after voting for the package. But as I said at this bill. last year being in session on Christmas the outset, that is not our only eco- I will have a lot more to say about Eve. Apparently we may be in session nomic imperative. Our dire fiscal con- this bill this week. I assure my col- again on Christmas Eve. If I might dition requires us also to adopt a strat- leagues, we will spend a lot of time point out, having not been in session a egy that will dramatically reduce defi- talking about this bill and the out- single Friday the entire year—not cits in the coming years. Frankly, I am rageous number of earmarks it con- being in session a single Friday the en- disappointed by the plan’s short- tains. But let me say this: It is Decem- tire year—yet this afternoon the ma- sightedness on that issue and, there- ber 14, 22 days away from the beginning jority leader said, well, we can be here fore, I did oppose the cloture motion of a new Congress, and nearly 3 full on Christmas and New Year’s and that yesterday, and I plan to vote against months into fiscal year 2011. And yet we could be in session until January 4, the package tomorrow when the vote is we have not debated a single spending before the new Congress is sworn in. called. bill or considered any amendments to Obviously the majority leader and If we are serious about addressing the cut costs or to get our debt under con- the majority can do that. But I do not deficit, we need to admit that we can- trol. think the American people think very not afford all of this package. In 2001, I

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I tates, this plan would subject 1 out of rying a higher pricetag than we as a see no evidence that we are doing so in 1,000 estates to any tax whatsoever. So nation could afford. The 2001 cuts, this legislation. while a GS3 clerk at the Department of which were accelerated in 2003, reduced I understand we cannot tackle both Agriculture office in Albuquerque will the stream of revenue to the Federal tasks simultaneously, that is, stimu- have her salary frozen in the name of Government by an amount that vir- lating the economy and reducing the fiscal responsibility, the heirs of a $50 tually guaranteed the elimination of deficit. We cannot attack both of those million estate will save $5.35 million. our anticipated budget surplus, and in- tasks with equal force at the same This unwarranted generosity will cost stead insured that substantial deficits time. our Treasury an added $7 billion a year. would once again become the norm in A decision, which I have supported, Americans are right to question how our Federal budget. has been to focus first on stimulating we can be serious about reducing the The result, which is a Federal debt the economy. But that focus does not deficit when we are ready to give that today nears $14 trillion, could excuse us from also taking the rel- wealthy heirs a windfall with no ben- have been avoided under the Bush tax atively easy steps that are available to efit whatsoever to the economic recov- structure only if there had been major reduce future deficits. I agree with the ery. cuts in spending at the same time. As Commission for a Responsible Federal I also am troubled that the package we all know, no such cuts in spending Budget, whose leaders argue that, ‘‘The makes the Tax Code permanently tem- were ever proposed by the President, critical objective is to pair any stim- porary and falsely assumes we will be and no such cuts in spending were ever ulus for the short term with a credible able to achieve a different outcome adopted by the Congress. In fact, in the plan to reduce the debt in the medium when we debate this issue 2 years from years following the Bush tax cuts, and long term.’’ now. Today’s Wall Street Journal spending increased very substantially. We should be talking about what points this out in a story entitled The Bush tax cuts were larger than we triggers to attach, how to pay for the ‘‘Temporary Tax Code Puts Nation in a could afford when they were adopted. new package over the decade, what Lasting Bind.’’ The piece opens with Including interest costs, those tax spending cuts and tax reforms to make. this sentence: ‘‘Welcome to the world cuts account for nearly 55 percent of It is unfortunate that that conversa- of the temporary tax code.’’ the deficit that is projected to the end tion has not taken place. I ask unanimous consent that the of the next decade. Once again, in my Because the cost of the package is text of that article be printed in the view, we cannot afford to extend those not offset, it has been, unfortunately, RECORD at the conclusion of my re- tax cuts in their entirety today. The larded up with very wasteful provisions marks. Nation’s debt now stands at 62 percent that do little to stimulate the econ- The PRESIDING OFFICER. Without of gross domestic product. omy. The most problematic is the one objection, it is so ordered. The Congressional Budget Office says many colleagues have commented on, (See exhibit 1.) if we continue on our present course, that is, the $129 billion to extend tax Mr. BINGAMAN. The main argument that debt will reach 90 percent of gross cuts that benefit only the very high-in- being used in support of the extension domestic product by 2020 and 185 per- come American households and reduce is that this is the only proposal we can cent of gross domestic product by 2035. the estate tax below 2009 rates. get our Republican colleagues to agree This concern is not merely academic. Proponents of the bill say that be- to. In my view, that is an uncharitable Our growing deficit has stark con- cause the economy is weak, now is not view of our Republican colleagues. I sequences for our government’s ability the time to allow the tax cuts for the think they would embrace a more re- to meet essential priorities. wealthiest households to expire. But a At current levels, government rev- sponsible proposal if they felt they enue in 2025 will be enough only to Congressional Budget Office report were required to do so. cover interest on the debt, Medicare, issued earlier this year tears down this The fact that not a single Republican Medicaid, and Social Security. The argument. They examined 11 options to supported either the proposal Senator threat to American prosperity is se- stimulate growth and job creation and BAUCUS brought to the floor or the pro- vere. By 2035, rising debt could reduce concluded that extension of the 2001 posal Senator SCHUMER brought to the per capita gross domestic product by as and 2003 tax cuts was dead last in that floor last week, in my view, results much as 15 percent. list of 11. They further found that ex- from their expectation, which was ap- In recent weeks, we have had several tending the tax cuts for high-income parently accurate, that if they re- expert commissions tell us that we households, in particular, would rate mained intransigent, Democrats would need to get the debt under control. lower in effectiveness than extending give in to their demands to extend all They have offered thoughtful, practical all the tax cuts because: ‘‘Higher-in- the tax cuts. Those demands reflected proposals to do that. This National come households . . . would probably in the bill now before us do not ac- Commission on Fiscal Responsibility save a large fraction of their increase knowledge the serious problem we face and Reform released a six-part plan in after-tax income.’’ with our deficits. I have explained why. that would achieve nearly $4 trillion in There is one comparison that puts There are also some important provi- deficit reduction through 2020. this sharply into perspective, at least sions that were included in the Recov- Five of the six senators who served to my view. Last month, the President ery Act which, unfortunately, have on the commission supported the plan. announced that because of concerns been left out of this tax package. I am Two weeks earlier, a bipartisan com- about the deficit, he was proposing to informed they have been left out be- mission, headed by former Congres- freeze all civilian Federal salaries at a cause Republican leaders have insisted sional Budget Office Director Alice savings of about $2.5 billion a year. I Recovery Act provisions not be ex- Rivlin, and my former colleague Pete stated at the time that I supported his tended. There are some of the provi- Domenici, issued their own report. decision. But in this package we will sions in the Recovery Act that had Both bipartisan groups concluded that erase those savings nearly three times been extremely beneficial to economic to be credible any deficit reduction over merely with the reduction of the activity in my State. The Build Amer- plan must impose limits on spending estate tax from the 2009 levels. Is it not ican Bonds program, for example. It is and must increase revenue. enough to reinstate the 2009 estate tax very unfortunate that program is not For much of this Congress, the ex- provisions which exempt $7 million in being continued as part of this pack- cuse for deferring serious action on assets per couple and tax amounts age. The package also ends a provision

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Senators CRAPO and GRASSLEY and I would support. But today’s so-called intermittent energy sources like wind fought to include in the Recovery Act, compromise package extends the credit and solar power while reducing energy which raises the bank-qualified limit, at 45 cents a gallon, which will cost an demands during peak hours and con- which was last adjusted in 1986, for additional $1 billion. That $1 billion tributing to an overall more reliable small municipalities that sell debt to would be better spent funding other smart grid. And the amendment would community banks. This has signifi- clean energy technologies which do not retool the tax credit for carbon capture cantly reduced rural governments’ bor- enjoy the market protection of the re- and storage, CCS, to give CCS projects rowing costs and created jobs and need- newable fuel standard. For instance, we greater certainty. ed infrastructure improvements in could much better use the $1 billion for Mr. President, we must continue to thousands of communities. I am dis- the advanced energy project credit, or ensure that the Tax Code contains appointed that has not been continued. section 48C, which enables companies well-designed incentives that will help The reflexive anti-Recovery Act posi- to establish, reequip, and expand fac- us transition to an energy efficient tion Republican leaders have taken is tories in the U.S. to manufacture ad- economy. The most significant revenue reflected as well in the provisions deal- vanced energy technologies. bill of the 112th Congress should in- ing with energy. In spite of the positive Failing to change this bill’s energy clude robust provisions that expand do- provisions in this legislation to provisions will ensure that the 111th mestic clean energy manufacturing; strengthen the economic recovery—and Congress will be recorded as one that help American businesses and families there are some which I strongly sup- failed to maximize its potential in reduce their energy use and dependence port—the bill moves us in the wrong di- using the Tax Code to promote ad- on fossil fuels; and create thousands of rection with regard to our other major vanced energy priorities. To be sure, jobs. I deeply regret that in considering problem, which is deficit reduction. On the American Recovery and Reinvest- the bill before us, the Senate will not that issue, it will start the 112th Con- ment Act included many significant give priority consideration to our gress off on the wrong track. For that tax innovations that promote clean re- amendment. reason, I will oppose the legislation to- newable energy and energy efficiency. I yield the floor. morrow when the vote is called. But since ARRA’s enactment at the EXHIBIT 1 Mr. President, yesterday the Senate very beginning of this Congress, the [From the Wall Street Journal, December 14, voted on proceeding to the most sig- Senate has failed to consider any legis- 2010] nificant revenue bill of the 111th Con- lation that would build off those inno- ‘TEMPORARY’ TAX CODE PUTS NATION IN A gress. As I explained when I came to vations. Time and again, energy tax LASTING BIND the floor earlier today, this bill con- legislation was pushed back, delayed, (By John D. McKinnon, Gary Fields and tains important provisions that will and obstructed. Particularly galling is Laura Saunders) stimulate the economy. I strongly sup- that this obstruction occurred in a WASHINGTON.—Welcome to the world of the port extending tax cuts to the over- year that saw the worst environmental temporary tax code. whelming majority of American fami- disaster in the history of this Nation, In the late 1990s, there were typically fewer lies. But this bill goes further than one that resulted from our overdepend- than a dozen tax provisions that had just a that. It extends tax cuts to the very ence on fossil fuels. limited lease on life and needed to be re- highest earners and adds a substantial But we still have an opportunity to newed every year or so. estate tax cut. And it does so without turn things around before the Congress Today there are 141. Now Congress, taking up a deal worked out any offsets or any plan to address the adjourns. And so I urge the Senate to between the Obama administration and Re- deficit. The inclusion of those provi- consider the comprehensive common- publican leaders, is poised to turn the whole sions will make it difficult for the next sense provisions that Senator SNOWE personal income-tax system into something Congress to act in a responsible way to and I have offered as an amendment. of a temporary structure. The plan embraces address our serious deficit situation. Our amendment, No. 4783, is modeled a broad range of provisions—an extension of For those reasons, I voted against pro- on a standalone bill, the Advanced En- Bush-era rates, a new estate-tax formula— ceeding to the bill. ergy Tax Incentives Act of 2010, S. 3935, but for only two years. A payroll-tax cut in While my ‘‘no’’ vote was driven pri- which Senator SNOWE and I introduced the bill is for a single year. marily by the bill’s fiscal recklessness, in September. This is a bipartisan, This means that if the compromise passes largely intact, the U.S. will have no perma- I am also disappointed by the inad- comprehensive package of incentives nent regime governing levies on salaries, equacy of its energy tax provisions. focused on enhancing energy effi- capital gains and dividends, the Social Secu- Aside from a 1-year extension of the ciency, deploying renewable energy, rity tax, as well as a slew of targeted breaks section 1603 grant in lieu of credit pro- and rebuilding our domestic manufac- for families, students and other groups. This gram, which will offer some support to turing base. These commonsense incen- on top of dozens of corporate-tax provisions our renewable energy industries, every tives will make our businesses more that already were subject to annual renewal. meaningful advanced energy incentive dynamic and competitive, our homes The level of uncertainty, unusual for devel- that was included in the package Sen- more efficient, our economy more se- oped nations, complicates planning and dis- courages hiring and investment, many ator BAUCUS offered has been stripped cure, and our skies and waters cleaner. economists and corporate executives say. from today’s bill, or reduced to the Among other highlights, our amend- ‘‘I haven’t seen anything like it, and it’s point of near-ineffectiveness. These in- ment would enable home and business hard historically to find anything like’’ the clude key provisions to promote energy owners to defray upfront costs of in- current and pending negotiations, says efficiency, clean technology manufac- vesting in energy-saving technologies, Mortimer Caplin, an Internal Revenue Serv- turing, energy independence, and pollu- including the introduction of perform- ice commissioner in the Kennedy adminis- tion reduction. ance-based tax credits for whole home tration who at 94 is just three years younger Among its disappointing provisions, retrofits. It would make $2.5 billion in than the income tax itself. ‘‘This Congress has left an awful lot up in the air.’’ this bill chooses to extend the volu- tax credits available to attract manu- A vote to pass the tax deal in the Senate is metric ethanol excise tax credit, or facturers of technologies that harness expected on Tuesday or Wednesday; pros- VEETC, for an additional year at its clean renewable energy or enhance en- pects for swift approval in the House re- current rate of 45 cents per gallon. ergy efficiency and establish a $1 bil- mained cloudy but party leaders seem in- When we include the associated income lion tax credit program to enable creasingly resigned to the measure clearing tax deductions, this extension will cost American manufacturers to undertake Congress intact. American taxpayers about $6 billion. energy-saving measures that advance The two-year expiration of the bill’s main But the VEETC subsidizes production their competitiveness. Our amendment provisions on individual rates would occur just after the next presidential election, and of a fuel whose consumption is already would facilitate the growth of renew- few in Washington envision a long-term solu- mandated by our renewable fuel stand- able electricity by creating a tax in- tion being crafted at such a charged time. ard. The House was poised to drop the centive for energy storage systems, At the same time, the possibility of a credit down to 36 cents, a level that I which will enable utilities to deploy sweeping tax-system revamp can itself add

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00048 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19855 to the uncertainty, what with politicans in- For smaller companies, tax uncertainty proof 60 votes in the Senate. Legislative creasingly ready to talk about this. Presi- could be an incentive to expand overseas shepherds of the Bush cuts resorted to pas- dent Barack Obama has lately, as has the rather than in the U.S., according to Tom sage under what is called ‘‘budget reconcili- deficit-reduction panel he appointed, includ- Duesterberg, president of the Manufacturers ation,’’ requiring only a majority vote. But a ing Republican members such as Rep. DAVE Alliance, a group representing medium-size measure passed this way can’t be for longer CAMP, future chairman of the House Ways firms. Companies ‘‘can’t wait until all these than the budget that authorizes it, in this and Means Committee. The possibility of an [tax] questions are resolved,’’ he says. ‘‘They case 10 years. Hence the provisions expire in overhaul that would put on the table long-es- are not going to wait until all that defini- 2010. tablished credits and deductions could fur- tively happens. They have to deploy cash, Such an outcome is less likely in countries ther uproot predictability. please their shareholders and expand and with parliamentary systems because these This year has been something of a test case grow.’’ leave the government less subject to having for tax uncertainty, with concern about Billy Hoffpauir, a developer in Lafayette, its will thwarted by a large minority. ‘‘Very what would happen when provisions adopted La., says he has been trying to sell some real few countries have tax provisions that expire in 2001 and 2003 expired at year-end. estate because ‘‘with the current uncer- unless legislative action is taken,’’ says Jef- Sales of certain kinds of life insurance rose tainty, I am unable to quantify the risk to frey Owens, head of tax at the Organization as families wrestled with the possibility that make long-term investment decisions.’’ If he for Economic Cooperation and Development estate taxes would jump in 2011. With no as- finds buyers, he says, he would be likely to in Paris. ‘‘Also, in most OECD countries, it’s surance the 15% rate on dividend income plow the cash into ‘‘other interests, probably the government that initiates new legisla- would last past 2010, Kraft Foods Inc., Exelon overseas,’’ because some foreign countries tion, and once proposed the legislation gen- Corp. and Altria Group Inc. asked their have more favorable taxes and regulations. erally passes.’’ shareholders to contact Congress in opposi- The tax situation is the overwhelming driver Deficits tempt legislators to give tax pro- tion to an increase. Stocks of utilities, which in his business decisions, Mr. Hoffpauir says. visions a temporary term to disguise their traditionally pay high dividends, appeared to Lea Bailes, president of Guier Fence in cost. For proponents of a new tax provision, factor in the possibility of a rise in the divi- Blue Springs, Mo., says his plans for next the strategy is to get a foot in the door by dend tax rate in 2011, analysts said. year depend on how the tax debate turns out: passing it for a year or two, at a seemingly At Incobrasa Industries Ltd., a producer of ‘‘We’re looking at acquiring a couple of affordable cost, intending to renew it regu- biodiesel in Gilman, Ill., sales manager smaller fence companies. The number we ac- larly. Douglas Santos has been waiting to see what quire, honestly, will depend on what we have That is how the number of provisions up happens to an expired tax subsidy for his in- to pay in tax.’’ for yearly extension has ballooned. Though dustry. He is running at 25% capacity, vs. The company, which employs about 70, the provisions are often extended in a bun- 100% in 2008. Mr. Santos wants Congress to would try to hire two to three new workers dle, a given provision’s inclusion in the bun- make up its mind one way or the other. for each acquisition, possibly 10 in all. ‘‘If ev- dle is never certain. ‘‘Just do something,’’ he says. The bill before erybody our size can add 10 employees, we’d Perhaps nowhere has tax uncertainty been Congress would restore the subsidy. be a lot farther down the road in dealing felt more intensely this year than in the es- Economic research has shown businesses with the unemployment,’’ Mr. Bailes says. tate tax, always a controversial matter. A 2001 law lowered its rate and increased tend to be more reluctant to invest when Guier is in the process of acquiring another the exemption in steps, with the tax lapsing they perceive high levels of uncertainty firm now, and while Mr. Bailes likes to take in 2010 and then, unless Congress acts, re- about various things, including over taxes. time to make such decisions, he worries that turning in 2011 at a 55% top rate on estates The pressure on policy makers to narrow the concern over a possible rise in capital-gains of $1 million or more. The unusual hiatus budget deficit, not merely simplify the tax rates might make the seller push to com- coupled with a far more costly tax as soon as system, further muddies the waters now, plete the sale this year. The bill in Congress 2010 ended gave ‘‘just an unbelievable Alice- says Massachusetts Institute of Technology would keep the current 15% top rate for two in-Wonderland aspect’’ to planning for cer- tax economist James Poterba, who finds years. One reason unsettled rules on individual tain well-to-do families, says Bruce Stone, a ‘‘the crystal ball . . . particularly unclear at income taxes affect planning at small busi- Miami-area estate lawyer. the moment.’’ nesses is that many don’t pay corporate tax, Sales of a life-insurance policy commonly Some call the worries exaggerated. ‘‘I but pass business income through to the used for estate planning rose 22% in the first truly do believe the concerns expressed over owners for taxation on their personal re- nine months from a year earlier, and their tax uncertainty are truly overblown,’’ says turns. death-benefit coverage was up 30%. Though Martin Sullivan, an economist with Tax An- Bill Wiygul, whose family owns four auto- the policies can also be used for other pur- alysts, a nonprofit tax publisher, who sees repair businesses in northern Virginia, esti- poses, part of the jump seemed clearly to be today’s situation as quite manageable com- mates he and his wife would pay at least for hedging against the possible estate-tax pared with the profound business uncer- $20,000 more in various taxes in 2011 if Con- jump in 2011. tainty companies faced during the financial gress doesn’t address parts of the code, in- In a few cases, the uncertainty drove peo- crisis. cluding the Alternative Minimum Tax. The ple to ponder extreme measures to avoid a ‘‘We’re used to [uncertainty] in the tax AMT snags a growing number of filers each tax hit for heirs. world,’’ he says. ‘‘What’s changed in the last year, and while Congress regularly limits the David Drouhard, a Washington-state farm- few years is the size of the temporary exten- number affected—and likely will do so again er who is 56, received a diagnosis of advanced sions.’’ this week or next—this has so far been an kidney cancer 14 months ago and faced a Obama administration officials note that AMT ‘‘patch,’’ never a permanent fix. grim set of treatment choices. Most offered the tax code has been through gyrations be- Mr. Wiygul says he would trade an increase little chance of extending his life more than fore, for example in the 1980s, when Congress in tax rates for greater certainty if the pain 18 months, although an immunity-boosting adopted accelerated depreciation in 1981, was shared by all. ‘‘We are petrified,’’ he drug held out some hope. Mr. Drouhard says only to repeal it five years later. That threw says. ‘‘We would be more actively pursuing he worried that inaction on the estate tax real-estate markets into an uproar and added expansion opportunities if we felt like the would force his family to sell his wheat and to problems that contributed to the savings- climate was more certain.’’ alfalfa farm, now worth about $3 million, to and-loan collapse. Large multinationals are only marginally pay taxes if he died in 2011. The White House says the current confu- affected directly by income-tax provisions on After much deliberation, Mr. Drouhard de- sion points to the need for a system that is the table this year. Yet the stakes might be cided to take the immunity-boosting drug, more stable and simpler. ‘‘We’ve got to have high for these companies. Executives worry but with a caveat: ‘‘I said, ‘If we don’t see re- a larger debate about . . . how is this coun- about becoming a target for lawmakers seek- sults from the first series [of treatments], try going to win the economic competition ing revenue to narrow deficits. I’m going to stop,’’ he says. ‘‘I try to take of the 21st century,’’ President Obama said If a broad revision ‘‘is a true ‘step back, care of my family, so why not go ahead and last week. ‘‘That’s going to mean looking at let’s take a fresh look,’ we would not be die instead of living another six months.’’ He the tax code and saying, what’s fair, what’s frightened by that,’’ says Ken Cohen, a vice has responded well to the treatment, but efficient? And I don’t think anybody thinks president at Exxon Mobil Corp. But if it pits adds: ‘‘I think it’s wrong that you have to the tax code right now is fair or efficient’’ industry versus industry or becomes a hunt make that kind of decision.’’ Small business is often looked to as a for revenue, ‘‘that’s the process we would The compromise Congress is weighing this source of job growth. But the latest monthly have much more apprehension about.’’ week would set a top estate-tax rate at 35% survey by the National Federation of Inde- The reasons the tax code has acquired an and the exemption at $5 million. pendent Business, a small-business advocacy increasingly temporary cast have to do with But this would be for just two years. Just group, found that 75% of owners felt it deficits, a divided Congress and even the con- as this year, a failure by Congress to act wasn’t a good time to expand, and one in five stitutional system. then would cause the tax to then revert to a said the main reason was doubt about policy Political division contributes because of top 55% rate and $1 million exemption, in environment, including taxes. the daunting task of mustering a filibuster- this case in 2013.

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00049 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19856 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 The PRESIDING OFFICER. The Sen- ergy policy that will not only be you will spend more and help stimulate ator from Maryland is recognized. friendly toward the environment but the economy are very remote. It is an- Mr. CARDIN. Mr. President, I take help us in regards to national security other thing if you are unemployed and this time to talk about the Tax Relief so we don’t have to import oil from you get an unemployment check. That Unemployment Insurance Reauthoriza- countries that disagree with our way of money will go right back into the econ- tion and Job Creation Act, the tax life. omy and will help create jobs. For peo- package, the Senate amendment No. The legislation also provides impor- ple who are well off, millionaires, the 4753. This is the tax bill we have been tant tools for business to invest in job economic benefit of extending these talking about for the last several growth by allowing expensing. A com- tax rates is very marginal, minimal weeks. The first thing I wish to point pany that makes an investment in compared to the cost of extending the out is that this bill is the result of a order to create more jobs will be able tax breaks for the wealthiest. compromise. Similar to any com- to write off that investment during It is consistent with how I voted last promise, there are some provisions I 2011 rather than having to wait and Saturday. Last Saturday, I voted to ex- strongly support, and there are provi- amortize it over a longer period. It is a tend the tax rates for those under $1 sions I would have preferred not to see major incentive to get businesses more million. I thought that was the right in this legislation. We have to evaluate actively involved in making the invest- way, a good compromise. Unfortu- the positive aspects as well as those ments we need to create jobs. It is par- nately, the bill we have before us ex- provisions that I would prefer not to be ticularly important for small compa- tends the tax rates for all taxpayers. included. There are some very impor- nies. I hear frequently from small busi- The second provision I strongly ob- tant provisions included in this legisla- nesses in my State of Maryland that ject to being in this package is the es- tion that I fought long and hard to tell me how difficult it is for that busi- tate tax relief. The estate tax relief make sure we accomplished before Con- ness owner to make the type of invest- would provide, for the next 2 years, gress adjourns this year. ments necessary to take advantage of families with $10 million of an estate or First and foremost is a provision that job growth. Expensing helps them lower to be totally exempt from the would extend the current tax rates for make that decision now, giving con- Federal estate tax and would reduce middle-income families. If we don’t do fidence to our economy, which is some- the rate to 35 percent. that by December 31, those tax rates thing we desperately need. Those who benefit from that are the will go up, and the withholding sched- These provisions and others will help upper one-quarter of 1 percent of the ules would be changed. our economy. I need not remind my families in this Nation. Quite frankly, The bill also extends unemployment colleagues that we have a 9.8-percent I do not think, in these tough economic insurance, a matter I have voted for unemployment rate. That is not ac- times, that is going to have much stim- and I have spoken on the floor about, ceptable to any one of us. It is the ulative effect on job growth in Amer- the fairness and the importance to our wrong time to allow tax rates to go up ica, and the revenues we lose could economy of extending unemployment for middle-income families when we have been used in a better way, I be- compensation benefits for those who have that type of unemployment. The lieve, for deficit reduction, which are unemployed, giving the more re- provisions I outlined will help job would have been a stronger positive ef- cent unemployed the same benefits we growth. Economists are in agreement. fect on our economy. gave the earlier unemployed during The passage of these provisions will I thought we had a reasonable com- this downturn in the economy. Those save and create millions of jobs in promise on this issue. I thought we had benefits would be available through America. That is what we need to do. a reasonable compromise to go back to 2011. That is an extremely important We need to get our people to work. the 2009 rates. In 2009, as you remem- provision, not just for the individual Then we can deal with the other tough ber, we had gotten up to $3.5 million who depends upon it in order to pay the issues, including deficit reduction and per person and $7 million per family mortgage or to pay the bills, it is im- getting the budget in balance. It is dif- and a 45-percent tax rate. I thought portant because it speaks to the fair- ficult to do that until we get the econ- that was a good compromise, and I am ness of our society during a recession. omy back on track. disappointed we did not come back to This is an insurance program. It is The first priority is to get Americans that compromise. I think if we had meant to provide benefits to those who back to work. The provisions I outlined done that, there would have been much have been in the workforce and have will help in that regard. It is clear to stronger consensus not only in this lost their jobs. It is very important for me from my constituents in Maryland body but in the House for this package. our economy, as far as our recovery is that during these tough economic So there is a good part of this pack- concerned. times, it is the wrong time to increase age which I support. There is one other The legislation also extends the re- rates for middle-income families. I good provision in there I wish to point fundable child tax credit. This is im- made it clear that I would do every- out in regard to the two last provisions portant to middle-income families in thing I could to make sure that and others I spelled out. It provides re- our communities. This is a provision wouldn’t happen. The largest amount lief only for the next 2 years. In other that helps lower wage families in par- of the $858 billion this package provides words, it is temporary relief. It will ex- ticular. It extends the American oppor- in tax relief, the overwhelming amount pire in 2012. I think that is a good pro- tunity tax credit, to help middle-in- will go to benefit middle-income fami- vision because that means we are going come families to afford college edu- lies and create jobs. But there are to need to deal with the budget deficit. cation for their children, up to $2,500 a other provisions that were included in As I said earlier, once our economy year. That can make the difference be- this package that I don’t believe are starts getting back on track, once we tween a person being able to go to a helpful for job growth. I don’t believe get the unemployment rate down to a college or not or go to the school they they are worth the cost for the jobs reasonable level, then we have a much want to go to, which is not only impor- they may create. I refer to two provi- better chance of dealing with the budg- tant for that family, it is also impor- sions I strongly object to and would et deficit. tant for the country. Investing in edu- have preferred not being in this pack- We have to start dealing with the cation is our best investment in order age. budget deficit this year. I acknowledge for America to be competitive inter- The extension of tax breaks for high- that. But our real effort is going to be, nationally. er income wage earners will do very lit- when we have a growing economy, The legislation also extends certain tle to spur additional economic growth. what will help us get our budget back green energy tax credits. That means Let me give an example. If you are into balance. jobs. Investing in green energy will making $1 million a year and get thou- Let me remind my colleagues, just 11 help the economy create and keep jobs sands of dollars of tax relief provided years ago, the Congressional Budget in America. It will help us on an en- under this legislation, the odds that Office projected surpluses that could

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00050 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19857 have retired our Nation’s marketable middle-income families they need a declaration of fealty to this great Na- debt between 2007 and 2009. In other today. I think it represents the way tion of ours? words, if we would have used that sur- our political system should operate, I was able, after service in World War plus wisely, we would not be looking at with the type of compromises that II, with the GI bill, to go and graduate a $14 trillion national debt. But, in- allow us to get to a conclusion dealing from Columbia University. I then stead, the Congress passed the so-called with major issues in our country. joined two friends in a startup com- Bush tax cuts of 2001 and 2003. I voted With that, I yield the floor. pany called ADP that now employs against those tax cuts. I did not believe The PRESIDING OFFICER. The Sen- over 40,000 people in 23 countries. It is we could afford that type of revenue ator from New Jersey is recognized. still headquartered in New Jersey, loss and, in fact, that has been the Mr. LAUTENBERG. Mr. President, where we began, bringing an oppor- largest contributing factor to the def- we are, obviously, struggling to find tunity for companies that needed com- icit we have today: the tax cuts of 2001 something that puts us in balance, a puter services to obtain it from us. We and 2003. balance that will create more jobs, were pioneers in the field. I was a CEO Remember, in those days, we had a more opportunity, expand family in- and chairman of this great company. growing economy. So there was no comes for middle-class people, and we The salary for a job such as that, as need to stimulate the economy. Today, do not seem to be getting there. We are you can imagine, was at a very high we are in a different position. Allowing engaged in the wrong kind of a dialog, level. increased rates for middle-income fam- in my judgment. It is with this life experience that I ilies in these economic times would be Yesterday, I voted to oppose the tax view my current tax obligations—or let the wrong thing to do. But I do think cut extenders bill that came along me call them contributions to country we have to get back to dealing with the after long and hard thought about the because that is what they are—weigh- deficit. We need to have a credible consequences of my decision. ing them against the value of a strong plan, a credible strategy, and that For me, voting decisions cannot be nation that is able to supply employ- strategy should include shared sac- made without reflecting on my life’s ment for all able and willing to work. rifices. We need to deal with spending. experiences to guide me, things that I I remind myself that we are in a war- We have to get not only domestic but saw as a child of a poverty-stricken time economy. I do not want to go military spending under control and, family, not because my father was not back to ancient history, but during yes, we need revenues. I would hope we willing to work, but at times during World War II, there was a tax required would start with allowing the termi- those years work was just unavailable, that was called the excess profits tax. nation of the extension of the higher and it was hard going for a lot of years. It was there to help the country man- income tax brackets for the million- What I remember is how hard my age its finances because of the addi- aires as we start to take a look at ways parents struggled to try and do what tional costs of war. we can balance the budget as we move could be done for my sister and myself. Now we are in a wartime economy. toward the next 3 or 4 or 5 years. When That was our entire family. Every day our people face harm and, we get our 5-year budget, the first My father worked in mills that were perhaps, death serving in Afghanistan thing we should do is make it clear we common in the city of Paterson, NJ— and Iraq. Just a couple days ago, six are not going to extend the higher in- textile mills—and there was something people were killed. The death toll goes come tax rates. in the environment there that was very on. The injuries go on. Over 5,000 peo- There is one more very positive as- harmful. My father was 43 when he ple killed in the two wars and in excess pect to this package I wish to bring up. died. My mother was a 37-year-old of 30,000 wounded. This is a major bill dealing with a seri- widow, and I had already joined the So we need to have the energy ous problem in our Nation, and we have Army. I had enlisted in the Army. pumped into our country that gives us Democrats and Republicans working I saw what happened. My father was the ability to be able to take care of together. I can tell you that when I sick for 13 months from cancer. By the the war obligation and the general talk to my constituents in Maryland, way, his brother who worked in the functioning of our economy. they tell me this institution is too par- mills died from cancer. Their father I look at the value of a country that tisan. They like a lot of the things we worked in the factory, and he died at is able to function without the kind of have done, but they do not like the fact age 56 from cancer. indebtedness that is consuming Amer- that we cannot get Democrats and Re- When my father died, 13 months after ica, with other countries that are buy- publicans to allow the system to work, being stricken with colon cancer, what ing our bonds and financial instru- with the give and take that should he left, besides grief, unfortunately— ments and questioning our Nation’s take place in this most deliberative my mother being the sole income earn- ability to redeem our obligations. body. er for the family, owing money for doc- Where does all that take us? Well, we have done it on this issue. tors, hospitals, pharmacies, you name We have to invest to grow our econ- We may not like everything that is in it—overwhelmed by debt, it was nec- omy and create jobs, putting people it because when you do compromises, essary to go bankrupt. It is a painful back to work and laying a foundation there are going to be things in it you experience. It is an influence, it is a for a new era of prosperity for every- do not always agree with. But the sys- memory that is very hard to deal with body. Windfalls for the wealthiest of us tem has worked. It includes a lot of because it creates an atmosphere of do not benefit our economy or create what I like, a lot of what my Repub- failure. jobs and are what got us into this fiscal lican colleagues like, and together we But life turned around for me, and I mess to begin with. have produced a bill that is going to am one of the most fortunate people on That is why I oppose this bill. Yes, help our economy. Earth. My wife and I have 13 grand- there are some things in the bill that I hope this will be a model of what is children, the oldest of whom is 17, and are attractive. But when I think of a to come. I hope it is an indication that the youngest was born 2 weeks ago. Our headline I saw in the Wall Street Jour- we will be able to work together across hopes are totally enveloped by what nal a week ago Monday—yesterday—it party lines to deal with the major chal- kind of a country our grandchildren said: Tax breaks for the wealthy go on, lenges of our Nation. We need to put are going to live in. Will it continue to and—in not this precise language—the our national business first over par- be a free democratic society, where byline, the heading said: And unem- tisan agenda. people still believe their children can ployment benefits will continue. So, on balance, I am going to support get a job, get a good education, have a Imagine that contrast: Tax breaks this package. I am going to support family, maintain a home, and have for the wealthy and also: Let them eat this package because I think it is criti- health care as required? Will they have cake, let those people who do not have cally necessary for our economy. I the kinds of opportunities that further any income, let them—we will give think it provides the type of help for lead to admiration of this country and them some unemployment insurance as

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00051 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19858 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 a little bit of an incentive to make sure ing college tuition. Now we are being I yield the floor. we get the votes to take care of the asked to continue on the path that put The PRESIDING OFFICER. The Sen- wealthiest and most fortunate in terms us in the hole we are presently in. ator from Michigan. of assets in our society. As I look at where we are in this Ms. STABENOW. Mr. President, I This bill wastes money on tax breaks country and as I review my responsibil- rise today to talk about the bill in for those not needing them, giving the ities to those in New Jersey whom I front of us and particularly a provision average millionaire a tax cut of more represent and what I want for those I would like very much to see in this than $100,000 per year. Contrast that who will follow on, for my grand- legislation. When we have a Republican with a per-family income across the children, whom I love more deeply than colleague on the floor either tonight or country in the neighborhood of $50,000, anything else in life, I ask, What can I tomorrow, I intend to ask unanimous and here an individual gets a $100,000 do that will improve their lives when I consent to add it to the bill. tax reduction, tax break. This was am no longer here? I conclude that a I will say that the underlying bill has money that could be used to pay down stronger democratic America will be been a real dilemma for many of us— the deficit, create more jobs for mid- the most valuable asset to leave be- certainly the vast majority of us on dle-class families. So why does this bill hind—more valuable than more money, our side of the aisle—given where we dedicate so much of its cost to helping than more possessions, or any of those are on deficits and given the concern those who known economists agree will things—a stronger country, knowing about strategy on the top-end tax cuts not use that money to boost the econ- they are getting their share of oppor- that have not created jobs over time. omy? tunity in this country of greatness, of There is deep concern about that. I also President Obama gave us the answer wealth, underneath all of our problems. know that people in my State are des- this week. He said that for Repub- What I want to say to my grand- perately hurting, and the unemploy- ment benefit extension is absolutely licans, including deep tax cuts for the children—the oldest is Alexander, and critical for families who are faced with most fortunate is their holy grail. That the youngest carries the name of Hud- decisions about whether they will even is what President Obama said. That is son. What do I want for them? I want be able to have a Christmas, whether what the Republicans are looking for them to be able to be safe, to be able to they even have a house, will they be most energetically: deep tax cuts for have health care when needed. I want living in their car, will they be able to their holy grail—the wealthiest. On the them to be able to get an education. I put food on the table, let alone get other side of the aisle, it is not work- want them to know their country ap- gifts for their children. These are very ing families with whom they are con- preciates what they do. serious issues for families in Michigan. cerned. It is not the unemployed. It is You can’t build a building from the There are very important tax cuts for not the struggling small business. On chimney on down, and you can’t build middle-class families, for small busi- the other side of the aisle, primarily a society from the wealthiest on down. nesses, and strategic investments in they are concerned with only one eco- If you don’t have a good foundation, it jobs in this legislation in terms of tax nomic constituency: the top 1 percent all crumbles in front of you. provisions that create jobs. of our wage earners. We are seeing worrisome signs about The bill before us includes an impor- When President Bush cut taxes on where America is going with some 15 tant financing mechanism called the those with the highest incomes, did the million people unemployed at this Treasury grant program, or we have benefits trickle down as the Repub- time. What kind of a picture is that for dubbed it 1603—financing for renewable licans promised? No. What resulted was people? And those who can’t afford the energy. This is one provision that is a gigantic increase in our debt, well necessities of life and who want unem- very important that is in the bill. It is over $2 trillion in 8 years. I was the ployment insurance have to be in line incredibly important, if we are going to ranking member on the Budget Com- to get some help. Yet we give the expand our economy, that we focus on mittee in those years. When we looked wealthiest more tax breaks. That is the growing clean energy economy, the at tax cuts, we were told it would not not the kind of society America really clean energy industry. That is a place interfere with our needs; rather, it was wants. We are giving to the wealthiest where I believe we have the oppor- a way to get money to trickle down to and forgetting the neediest. tunity to create middle-class jobs, to the more modest income earners. Sala- So I wish to say that the vote for me create new opportunities and really ries rose as high as 400 times—that was was not easy, that there were some at- create a boon in our economy. When the ratio between the top person in the tractive parts in it, but the attractive developers want to build wind farms or company and the bottom person in the parts were in there to try to get the solar, they can get financing through company. Years ago, it ran about 40 bailout going, to try to get the tax this program. Financing is hard to get times at its largest, but in recent breaks larger, to make sure they took when you are doing something on the years, it ran as high as 400 times larger care of their friends who are there with front end—commercializing the first for the CEO’s pay than the average the money whenever called upon. It is technology or doing something that is worker was paid. So 400 times—if the a bad idea. That is not a democratic so- new. It is hard to get financing. This is bottom wage earner was $40,000, the ciety. very important, and I am a strong sup- guy at the top got $16 million. So the So I am going to vote the same way porter of it. disparity is something we have to look tomorrow as I did yesterday; that is, But when we build the wind farms in at. against this bill. This is a bill that, in America, when we build the solar People need to be able to afford the my view, will not make America units, I want to make sure that they things that sustain life, and here we stronger. Despite the fact that there is are using wind turbines—that they are are looking at people earning over $1 an economist or two proffering some using all the parts, the 8,000 parts that million a year. We saw recently in the optimistic assertions about where we are in one of those big wind turbines— New York Times an article that will be, I don’t believe it. I believe the I want to make sure those are made in showed eight wage earners who earned people who say that the wealthiest will America. That is how we truly grow over $1 billion in a single year. One of not spend the money to encourage the our economy, not just creating new op- them earned $3.5 billion. We saw in the economy’s growth, that those who get tions on energy but building the tech- paper over the last couple of days that unemployment insurance will have to nologies here, doing the R&D, doing the family who holds the primary spend it and those who get more mod- the innovation. It is absolutely crit- stock ownership in Walmart has a net est tax breaks will spend it to get the ical. We are the best. We are the best worth of about $83 billion, and they, things they need for their families. ones at innovation, but we also are the too, would get a tax break. Is that nec- So I am going to try to make the re- best at making things, and we need to essary? At the same time, middle-class ality for our country as good as it can be making them here. families face surging gas prices, sky- be for everybody’s grandchildren and I have to say I am very proud to rep- rocketing health care costs, and soar- for this great Nation of ours. resent a State—the great State of

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00052 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19859 Michigan—where we know how to build and on and on. Forty-three States—Re- the last 2 years. We have passed, in things. We have great engineers. We publican, Democratic—have businesses fact, in the last 2 years 16 different tax have the best skilled workers in the today that are hiring people who are cuts for small businesses to help them world. We know how to make things. making things in their States, making grow and create jobs—unfortunately, We are beginning now to move more things in America because of the part- over constant filibusters on the other into clean energy technology, certainly nership put in place with the advanced side, objections and filibusters, but we electric vehicles, hybrid, and also wind, manufacturing tax credit. did pass them. We know that these solar, geothermal, and other areas that So in addition to developing the re- companies are the backbone of our involve manufacturing, and we are newable energy area of 1603, extending economy, and it is our commitment— very proud of that. When we build the that so that we are helping to create my commitment—to keep fighting for wind and solar provisions, the cutting- investment in these new technologies, them every single day, so that they can edge solar cells, we need to make sure we also need to extend the manufac- do well and hire people, and we can they are made in America, and we are turing tax credit for companies that have more opportunity for people to doing that right now in Michigan. are making renewable energy tech- work. My concern is that this bill does not nology here. Unfortunately, there is a new report- extend the manufacturing tax credit The whole point is to make them ing requirement from the IRS hanging that is absolutely critical to keeping here—not to bring in the component over the heads of small business owners those jobs here at home in America. parts from China or someplace else but related to the filing of 1099 tax forms. The advanced energy manufacturing to make them here. We can do that. We It would require business owners to file tax credit, which we have dubbed 48C, are already beginning to do that. We paperwork with the IRS every time is helping to create at least 17,000 jobs cannot trade our dependence on foreign they purchase a product worth more at 183 manufacturing facilities all oil for a dependence on foreign tech- than $600. In practice, that means busi- across the country in 43 different nology. In some areas, we are close to ness owners will be forced to file States right now. It has been a huge doing that. mounds of paperwork for even the most success, and I wish to thank Senator The Recovery Act was about chang- mundane purchase. For example, if you are a real estate agent and you go to BINGAMAN. I was proud to join with him ing that playing field. I thank Presi- Best Buy for a new laptop or anyplace on the Finance Committee in being dent Obama and his administration for where you are buying one, you would able to offer that provision that was in understanding about manufacturing, have to file a 1099 form to buy that. If the Recovery Act. I wish to thank Sen- about making things in America, build- you are a farmer and you buy $700 ator SHERROD BROWN of Ohio for his ef- ing things in America, and what we worth of seeds, there is a form to file forts and leadership and passion on this need to do to create good-paying mid- with the IRS. If you are a photographer issue as well, for the investment of the dle-class jobs again in America. and you need to travel for a few days to $2.3 billion we put into the Recovery This bill does part of that with the renewable energy grant in the financ- cover an event, a few nights at a hotel Act. could mean another IRS form to fill The 48C manufacturing tax credit has ing. But it does not focus on where things are made, which is of great con- out when you get home. leveraged $7.7 billion in private invest- So we understand. I want to fix that. cern to me. So when I have the oppor- ment and clean energy manufacturing The majority wants to address this for tunity—I came to the floor fully in- in America. That provision should be small business owners. It is critically in this bill. We have strong bipartisan tending to ask unanimous consent to important. Small businesses in Michi- support and have had it since it was proceed to my amendment, to be able gan want to be doing what it is that first instituted. That provision should to add this critical job-creating manu- they do, not filling out extra forms. be in this bill. facturing credit that has bipartisan Realtors want to be showing houses, Last year, the Chinese invested $35 support and has had it since it was first and farmers want to grow things, and billion in clean energy technology. initiated. But I don’t see any Repub- photographers want to take pictures. They are expected to ramp that up to lican colleagues on the floor this They don’t want to be filling out end- $90 billion a year going forward. That evening. I understand, under legislative less forms and paperwork for the IRS. is $246 million every single day. By courtesy, I will not do that. I will pro- We had a number of votes on this issue comparison, extending the 48C manu- ceed and offer that tomorrow. on the floor. They have always gotten facturing tax credits is a small sum but There is another provision I want to overwhelming bipartisan majorities to will leverage private sector investment also speak about, an amendment of fix this. Democrats and Republicans and more than pay for itself and create mine to the bill that I will offer a have both agreed that we can’t force jobs, making that new clean energy, unanimous consent on tomorrow that American small businesses to file those products, that manufacturing relates to small business. When we reams of paperwork with the IRS. So I here in America. look at how we grow our economy, we was very surprised when there have In my home State of Michigan, we need to make things—by the way, a lot been objections to placing this as part have 12 companies that have taken ad- of those manufacturers are small busi- of this bill. This tax bill in front of us vantage of this manufacturing incen- nesses. When we think about the auto- is the perfect place to be able to ad- tive building wind turbines, solar cells, mobile industry, which I am so proud dress this issue once and for all. advanced batteries for electric vehi- of in what they are doing in coming I understand there were objections on cles—jobs in Michigan. Wacker back, the majority of jobs in Michigan the other side of the aisle to doing Polysilicon in Charleston, TN, is using and across the country are actually that, which I find surprising because its $128 million tax credit to produce with small and medium-size suppliers. we continue to see amendment after silicon that is used in solar panels. We know small businesses are abso- amendment to take out this provision, Texas Instruments in Richardson, TX, lutely critical to the growth of this which I have supported. But when we is using its $51 million advanced manu- country. We know that a lot of folks try to fix it now, we are seeing objec- facturing tax credit to reequip its facil- who have lost their jobs right now are tions. ity and produce advanced power man- turning to the possibility of starting I intend also tomorrow to offer an agement semiconductors. Cree, Inc, of their own business in the garage or the amendment that would eliminate this Durham, NC, received a $39 million tax extra bedroom in the basement. They problem for small businesses once and credit for the production of LED light are taking a great idea and trying to for all. It is an amendment that I have chips and fixtures, creating jobs. ZF put it to work. filed to this bill. It is something that, Steering of Florence, KY, received $28 Mr. President, we have worked very based on overwhelming votes we have million in manufacturing tax credits hard—and you have been a strong sup- had, overwhelming bipartisan votes, we for the production of wind turbine com- porter in helping our small business should be able to deal with very quick- ponent parts. Frankly, the list goes on owners—and we have focused on that in ly. In fact, a simple unanimous consent

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00053 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19860 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 ought to be able to do it. If there is no provides a payroll tax holiday that nesota’s families. This package reau- objection—and I don’t think there is gives families making $50,000 a year a thorizes emergency unemployment any objection on our side of the aisle. $1,000 tax break. benefits through the end of next year. I am sorry if there is an objection on For Minnesotans who are truly suf- They are a vital lifeline for families in the Republican side of the aisle to ad- fering right now—men, women, and need and a vital lifeline for our econ- dressing this. There should not be, be- children on the edge of economic dis- omy. I meet people back in Minnesota cause now is the time to do that. This aster—it reinstates emergency Federal who tell me they hate taking unem- bill is the right place to do it. We are unemployment benefits that expired at ployment benefits but they would have coming to the end of the year. This the end of last month. Not restoring lost their homes without them. Unem- provision is something that will be these benefits would be devastating to ployment benefits yield $2 in demand very onerous when it takes effect on Minnesota families and to our econ- for every dollar spent, according to a small businesses. We need to fix it. We omy, leading to a lot more pain for new report from the Department of need to eliminate that provision. working families, a lot more homeless Labor. This is a very effective way to When I have the opportunity, when kids spending Christmas in a shelter or stimulate our economy and create jobs. we have Republican colleagues joining a car. The same holds for the payroll tax hol- us on the floor tomorrow, I will, in I came here to make people’s lives iday that is included in this package. It fact, offer a motion to move to my better, and so I must vote to pass this is going to put real dollars in the hands amendment and to get rid of this 1099 legislation. But this was perhaps the of millions of Americans—dollars they provision once and for all. hardest vote I have ever taken so far as are going to spend. In conclusion, for me, as you know, a Senator. I wish to tell you why. I strongly support extending the ex- everything is about jobs. My great We have spent the better part of a panded earned-income tax credit, State has lost more jobs—our people year talking about the ballooning def- which helps about 6.5 million working have lost more jobs than any other icit. Republicans and Democrats parents. I am glad this legislation in- State, over 800,000 in the last 10 years. agree—in every decision we make, cludes the American opportunity tax Our people have been hit harder, every penny we spend, we need to keep credit, making college tuition more af- longer, and deeper than anyplace else in mind that it will be added to our na- fordable for 8 million students. This in the country. We work hard. We are a tional debt. At the same time, we need bill also extends the renewable energy proud people. Our people want to work. to be mindful of our fragile economic grant program, the R&D tax credit, and They know how to work. They are recovery. Are we spending it in the the ethanol and biodiesel tax credits— doing everything possible to get back most efficient and responsible way pos- all provisions I strongly support. Vot- to work—start their own business or sible—to get people back to work and ing no on this legislation would be vot- get back to work in some other fash- get our economy back on track? ing no on all of these vital programs. ion. I am proud of what we are seeing I was hoping to see a tax package The economists are in general agree- happen with the support of the Presi- that would reflect these priorities— ment that this legislation will help the dent and this Congress and the ability mindful of the debt, helpful to our eco- economy. Mark Zandi, on whose eco- for the auto industry in America to nomic recovery, fair to the American nomic analysis I have frequently relied come back. All three of our American people. But instead, this legislation in the past, has encouraging projec- companies will have a profit this year. spends billions of dollars on the tions. He sees this package adding a It is the first time, I believe, since 1999. wealthiest 2 percent of Americans. full percentage point to economic They are hiring people back. These are Americans who have pros- growth next year. He is especially opti- We will begin to see things turn pered in recent years. According to the mistic about the new business invest- around. We have a long way to go be- Economic Policy Institute, during the ment deduction’s potential for spend- cause of so many jobs that we have lost past 20 years, 56 percent of all income ing. In fact, he predicts unemployment and so many people who have gone growth has gone to the top 1 percent of will reach below 9 percent by the end of through so much as a result of that. households. next year and will close in on 7.5 per- These provisions to take the paperwork Even more unbelievable, a third of cent by the end of 2012. These figures off of small businesses, to invest in all income growth went to just the top are all significantly better than what American-made products through man- tenth of 1 percent. At the same time, we would expect without this legisla- ufacturing, are two provisions that will middle-class families have done decid- tion. help us create jobs in America. If that edly worse. When you adjust for infla- This isn’t the bill I would have want- is not our No. 1 priority, it sure ought tion, the median household income de- ed. If there were a better way, I would to be. That is something I am going to clined over the last decade. During do it in a heartbeat. But today we are continue to push every day. those years, while the rich were get- forced to decide between taking a stand Mr. President, I yield the floor and ting richer, the rest of working Amer- against irresponsible tax cuts for mil- suggest the absence of a quorum. ica was struggling to keep up. We have lionaires versus helping struggling The PRESIDING OFFICER. The been growing apart in our Nation. We families. Given that choice, I simply clerk will call the roll. should be tackling this kind of inequal- can’t turn my back on all Minnesotans The assistant legislative clerk pro- ity, not exacerbating it. And that is who desperately need the help this bill ceeded to call the roll. what I find so frustrating about this will provide. Mr. FRANKEN. Mr. President, I ask legislation. It keeps our country on the Mr. President, I suggest the absence unanimous consent that the order for same path of widening inequality. We of a quorum. the quorum call be rescinded. are securing tax cuts for millionaires The PRESIDING OFFICER. The The PRESIDING OFFICER. Without and billionaires twice as long as we are clerk will call the roll. objection, it is so ordered. maintaining Federal unemployment The assistant legislative clerk pro- Mr. FRANKEN. Mr. President, I rise benefits. ceeded to call the roll. today to speak about my decision, This bill’s estate tax provisions pro- Mr. HARKIN. Mr. President, I ask after a lot of serious contemplation, to vide a windfall for the richest fraction unanimous consent that the order for support the legislation before us. I be- of 1 percent of Americans. In these the quorum call be rescinded. lieve that Minnesotans deserve a better tough economic times and with these The PRESIDING OFFICER. Without deal than this one. But unfortunately, current deficits, we should be spending objection, it is so ordered. this is the one we have. For Min- money only on those policies that will Mr. HARKIN. Mr. President, I ask nesota’s middle class, there is a lot in create the most jobs. unanimous consent to speak for up to this bill that will not only be helpful But, as I mentioned, despite the con- 20 minutes. but is absolutely critical. It stops their cerns I have about this bill, it undeni- The PRESIDING OFFICER. Without taxes from going up on January 1. It ably provides essential help to Min- objection, it is so ordered.

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00054 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19861 Mr. REID. Will my friend yield for a got an even more royal ransom: they paid its employees an average of nearly unanimous consent request? demanded and got a giveaway on estate $600,000 per person. Executives at Gold- Mr. HARKIN. Absolutely, I will yield. taxes that will benefit only the man Sachs received bonuses totaling Mr. REID. Mr. President, I ask unan- wealthiest one-quarter of 1 percent of $13 billion. So why in the world would imous consent that all postcloture the U.S. population. The heirs of a sin- this Congress vote to make this al- time be considered expired when the gle estate worth $1 billion would save ready extreme income inequality even Senate resumes consideration of the $100 million thanks to the ransom de- worse? Why in the world would we vote House message with respect to H.R. manded by the Republicans. to borrow tens of billions of dollars 4853 on Wednesday, December 15, ex- Mr. President, no question, cham- from China to make the rich even rich- cept for the time provided for under pagne corks are popping on Wall er? This is foolish, and it is recklessly this agreement; that the Senate re- Street, and at America’s most exclu- irresponsible. sume the House message at 11 a.m. sive country clubs and boardrooms, the The second reason why this is a bad Wednesday and there be 1 hour remain- superrich and their heirs, I am sure, agreement, again the distribution of ing for debate divided as follows: 10 are planning on throwing lavish Christ- these new tax cuts is radically skewed minutes each under the control of the mas and New Year’s parties. Tiffany in favor of the wealthy. As I said ear- majority and Republican leaders or jewelers will no doubt be looking for- lier, those who earn $1 million and their designees, Senators DEMINT, ward to selling a record number of above would, on average, receive an an- COBURN, LANDRIEU, and SANDERS; that $29,800 watches. This is a picture of nual tax break of $100,000. By contrast, the following be the only motions to one. Giving those making over $1 mil- an average American taxpayer earning suspend the rules in order during the lion a year more than $100,000 in tax $26,000 would receive a tax break of duration of this agreement: Coburn breaks—well, they can buy this wrist- $670. motion to suspend with respect to watch for $29,800 advertised in the New In 2007, the top 25 hedge fund man- agers in the United States took home amendment No. 4765, DeMint motion to York Times. This is made in Switzer- an average income of $892 million. Yes, suspend with respect to amendment land. Now, maybe if it was made in you heard that right. Their individual No. 4804, and Sanders motion to sus- America, you could say: At least it was annual income averaged nearly nine- pend with respect to amendment No. made in America. But it is not made tenths of $1 billion per person. Under 4809; that upon the use or yielding back here. This is what the very rich spend this agreement, each would get an in- of all time, the Senate then proceed to their extra $100,000 on, things like this. come tax break worth perhaps as much vote on disposition of the motions in It doesn’t help our economy. as $50 million. the order listed; that upon disposition But what about the rest of America? Reason No. 3 why this is a bad agree- of the listed motions, no further mo- What about those who don’t shop at ment: The nearly $900 billion in tax tion or amendments be in order; fur- Tiffany’s? Is this a good deal for the cuts in this agreement would crowd out ther, that if any motion is successful, American people overall? Well, I have necessary investments in priorities then the second-degree amendment be come to the conclusion that it is not. such as education, infrastructure, withdrawn and the Senate proceed to At a time when our annual deficit is homeland security, health care, sci- vote immediately on the amendment close to $1 trillion, much of it borrowed entific research. In other words, we are covered under any successful motion; from China, at a time when the eating our seed corn, borrowing money that if no motion is successful, the sec- wealthy are already enjoying a huge to pay for short-term tax cuts rather ond-degree amendment be withdrawn surge in income even as middle-class than for long-term investments that and, without further intervening ac- incomes are stagnant, it is simply ob- develop our human capital and our tion or debate, the Senate then proceed scene to give another lavish tax cut to physical infrastructure for the future. to vote on the Reid motion to concur the top 2 percent. As a contrast, the United States in the House amendment to the Senate Let me say what should be painfully right now invests about 2.4 percent of amendment to H.R. 4853 with the Reid- obvious about this new bonanza for the our GDP, our gross domestic product, McConnell amendment No. 4753; that rich: They do not need it and we can’t in infrastructure. China invests almost upon disposition of the House message, afford it. They do not need it and we four times our rate; 9 percent of their the Senate then proceed to a period of can’t afford it. And it will not help the GDP annually goes to infrastructure. morning business until 2:15 p.m., with economy. In fact, in the longer term, I China invested $186 billion just in rail Senators permitted to speak for up to believe it will hurt our economy. These in the last 3 years. Within 2 years, they 10 minutes each. new tax breaks for the rich are terrible will open 42 new high-speed rail lines The PRESIDING OFFICER. Is there public policy. with trains reaching speeds of 200 miles objection? Let me briefly mention just four rea- an hour. By 2020, China plans to add Without objection, it is so ordered. sons these tax cuts are harmful. 26,000 additional miles of tracks for Mr. HARKIN. Mr. President, 2 weeks First, these new tax breaks will freight and travel as well as 230,000 ago all 42 Republican Senators signed a make income inequality even worse. In miles of new or improved roads and 97 letter threatening to filibuster any ex- recent years, in the grip of the great new airports. tension of tax cuts for middle-class recession, many millions of ordinary What do we have? We are borrowing Americans or any continuation of un- working Americans have lost their money from China in order to pay for employment benefits unless and until jobs, their homes, and their savings, short-term exigencies at the same time the Senate agreed to extend tax cuts but the wealthy have made out very, China is using its wealth to invest in for the wealthiest Americans. As many very well. Today, income inequality— infrastructure so they will be more have pointed out correctly, Repub- inequality—in America is at an alltime competitive in the world economy in licans have been holding middle-class high. The top 1 percent controls more the future. We are going to try—mark tax cuts and benefits for the unem- wealth than the bottom 90 percent. At my words—we are going to be coming ployed hostage to an extension of tax the same time, the bottom 90 percent up with some bills to invest in high- cuts for the very rich. holds 73 percent of all personal debt in ways, a new highway bill. We have a Well, it appears the hostage-taking this country. Eighty percent of all ad- new highway bill to come up. We are incident is nearly over. The hostages— ditional income earned between 1980 to going to try to invest in new highways the unemployed—will be released. The 2005 has gone to the top 1 percent. Let and probably invest in other kinds of ransom will be paid. Wealthy Ameri- me repeat. Eighty percent of all addi- infrastructure projects. I am sure the cans who make $1 million or more a tional income earned from 1980 to 2005 Senator from Colorado knows how year will receive an average tax break has gone to the top 1 percent. many sewer and water projects in Colo- of more than $100,000. Indeed, in the The gap grows wider. rado are going underfunded right now course of negotiations to rescue the In 2009, in the wake of the taxpayer that need to be done. I have the same hostages, Republicans demanded and bailout of Wall Street, Goldman Sachs in the State of Iowa.

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00055 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19862 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 We think about high-speed rail. I saw fits for the unemployed are extended to build the world’s most advanced in- a recent figure that said 60 percent of for 1 year while tax cuts for the rich frastructure. all the flights that originate out of are extended for 2 years and are now According to Reuters, the Chinese O’Hare, in Chicago, go 300 miles or less. more likely to be extended far beyond Government is planning to spend 1.5 It is overcrowded. One day of bad that. trillion over the next 5 years in seven weather such as the other day and If we are going to borrow additional targeted sectors—alternative energy, there are thousands of airplanes hundreds of billions of dollars from for- biotechnology, new generation infor- backed up all over the country. Three eign creditors, mainly China, shouldn’t mation technology, high-end equip- hundred miles? That could be high- we at least insist the money is spent in ment manufacturing, advanced mate- speed rail. Right now, to go from Chi- ways that benefit our economy in the rials, alternative fuel cars, and energy- cago to Detroit by rail takes you al- long term? If we are going to borrow saving technologies. Do you know what most all day. By high-speed rail you the money, let’s build our infrastruc- this tax thing is going to cost us over could do it in a couple or 3 hours. ture so our private sector 5 years, 10 the next 5 years? About $1 trillion. Maybe you wouldn’t want to take an years from now will be more efficient, What are we going to have to show for airplane. We should have high-speed will be able to compete more effec- it? Nothing. rail from Boston to Miami, from Se- tively in the world economy. Instead of borrowing these billions, attle to San Diego and hubs in the Mid- I might add, these infrastructure jobs we should use them to rebuild and west from Chicago going out to Kansas put Americans to work. It is one of the modernize our crumbling infrastruc- City, St. Louis and Des Moines and best multiplier effects of our dollars. ture. We should use that money to in- Omaha, Minneapolis, Cleveland, Cin- Why is that? Easy. When you build a vest in things such as biomedical re- cinnati. We are not doing it. new school, the work has to be done lo- search, renewable energy, technologies We are borrowing money from China cally. You can’t ship the work out to of the future, and education of our to pay for present exigencies, we are India. Think about it. Most of the ma- young people to perform the high-end going into debt, and then when our terials that go into a school—the jobs that those sectors will create. This bills come up to try to fund programs bricks, the mortar, the rerods, the would put millions of Americans back to build infrastructure, our Republican wallboard, the sheetrock, most of the to work and would have huge payoffs friends will say we can’t afford it. We lighting, the conduits, the piping, for future generations. do not have the money. So it will switches, floor tiles, windows, doors— The needs are enormous. A recent re- crowd it out. most of it is made in America. Most of port determined that the current need, Why? So we can give some of the that is made here. So when you spend just for improved school infrastruc- richest in our country another $100,000? $1 on something like that, the work is ture, is more than $250 billion nation- For people with $1 billion estates get- done locally, it helps the local econ- wide. ting an extra $100 million so they can omy, plus all the materials—not all but EPA, the Environmental Protection go out and buy those $29,000 wrist most of the materials you buy are Agency, estimates we need to invest watches or $2,500 cashmere scarves or made in America. That dollar spins more than $200 billion in wastewater whatever it might be? around. treatment and, as we all know, our If our debt continues to grow at You give someone an extra $100,000 interstate highways and many thou- unsustainable rates, we are going to and they spend $29,800 on a watch. I sands of bridges are desperately in need find ourselves, very soon, in the same don’t think that benefits many Ameri- of repair or replacement. It is simply position as Greece, Ireland, and Spain cans. Maybe the jewelry store, maybe shameful to continue to neglect these today. We will reach a tipping point, Tiffany’s where you buy it, they are basic infrastructure investments, even where international bond vigilantes making some. But most of that goes as we borrow hundreds of billions of place big bets against the United out of the country. If you give extra dollars to pay for new tax cuts and con- States, shorting our debt. This would money to people to buy a new flat- sumption. radically drive up interest rates in the screen TV—yes, there is some benefit The last thing, my fifth reason for United States, forcing us to make even here to the retailer that sells it, maybe not supporting this tax package, is the more draconian cuts in spending in ev- the shipper that brought it in, but the 2-percent cut in Social Security taxes erything from education to scientific majority of it goes overseas. for 1 year—2 percent. We go from 6.2 research to health care. That is why I say, if we are going to percent down to 4.2 percent. That This may suit the agenda of the borrow money, put it into infrastruc- might sound like a good deal, put some rightwing, which would be delighted to ture. It provides a lot of jobs and pro- more money in people’s pockets. But see education programs and health care vides a great multiplier effect in our why are we taking it out of the Social programs gutted, but it would be a dis- economy, and you get something at the Security trust fund? Mark my words, a aster for ordinary working Americans end of it that is going to benefit our year from now—1 year from now, as- and for our economy as a whole. kids and our grandkids. suming this bill passes—and I guess The fourth reason why this is a bad I repeat, with this agreement, we are they have the votes for it—1 year from agreement: The nonpartisan Congres- eating our seed corn. Instead of bor- now when we come back and we are sional Budget Office ranks tax cuts for rowing to invest in the future, we are going to want to get that back up to 6.2 the rich as dead last among the various borrowing to pay for consumption percent, our Republican friends are options for boosting the economy and today. Within the next 2 years, these going to say that is a tax increase, a creating jobs. This is hardly surprising. hundreds of billions of borrowed dollars tax increase on hard-working Ameri- As I said, the wealthy are the least will just go poof. They will be gone cans. You are going to go from 4.2 per- likely to spend their new tax cuts. with nothing to show for it—not one cent to 6.2 percent? People will be They can only buy so many $29,800 new highway, not one new bridge, not afraid: Oh, no, we can’t raise those wrist watches. one new school. Our economic competi- taxes. Thus, we will set in motion with By contrast, virtually every dime of tors are not making these kinds of this tax package a pressure to begin emergency unemployment benefits is foolish choices. the dismantling of the Social Security spent on necessities such as food, rent, As Fareed Zakaria pointed out in his trust fund. and transportation. Middle and lower column in the Washington Post on We have not done this before. We income taxpayers are likely to spend Monday, China has doubled its invest- should not be doing it now. It will most, if not all, of their modest tax ment in education, rocketing to the come in. It will be 4.2 percent. Next cuts. This stimulates the economy, cre- very top in the most recent inter- year it goes back to 6.2 percent. We ates jobs, and has a positive multiplier national rankings of educational will be accused of raising taxes on effect across the economy. It is a cruel achievement. As I said, the Chinese are hard-working Americans. Therefore, we irony that under this agreement, bene- investing hundreds of billions of dollars need to extend it. As we extend it, that

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00056 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.001 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD December 14, 2010 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 19863 means more money will come from actually it is 75 years. For 75 years no of the Bush-era tax cuts. These enor- general revenues—will have to come problems. Why are we not talking mous tax cuts have led to record fed- from general revenues to put into the about that? Why are we not talking? eral deficits, contributed to the govern- Social Security trust fund. Why are we not debating and voting on ment’s current financial woes, and OK. Let me repeat this. Right now whether we should raise the cap and have not helped many Americans who every working American puts in 6.2 then we will not have to take 2 percent face the greatest financial burdens. As- percent of their income into Social Se- out of the Social Security trust fund. surances at the time to the contrary, curity. That is a trust fund. Now they Mark my words, it is coming. It is coming. the Bush tax cuts failed to ‘‘trickle are going to take it from 6.2 percent The pressure is going to be built to damage down’’ to help those Americans most in down to 4.2 percent, and say: OK. You the Social Security benefits. It is going to need, while the wealthiest 2-percent of are going to keep in your pocket 2 per- start about a year from now. I cannot sup- Americans benefited substantially. cent for 1 year. port the bill that is before us. It will exacer- As the Wall Street Journal reported One year from now we come in: Oh, bate income inequality. It will give tax cuts on Friday, most of the wealthy bene- no, we can’t go back to 6.2 percent. we cannot afford and they do not need to the wealthiest people instead of investing that ficiaries of the Bush tax cuts have not That is an increase in taxes on working money in infrastructure in the future. It will plowed those dollars directly back into Americans. begin a process of dismantling the Social Se- the economy to hire new workers or Okay. We will extend it. How are we curity trust fund. These are misplaced prior- create new jobs. Rather than using going to make up for that 2-percent ities, bad values. It is a misguided bill that their windfall to invest in our econ- cut? We are supposed to make up for it will drive our Nation deeper into debt with omy, corporations are building record with general revenues. How are we too little to show for it in the long run. I cash reserves, and executive pay is going to make it up with general reve- might be for going into debt if you got some- through the roof once again. Why thing to show for it. nues when we are going to be arguing would anyone think that extending the that the debt is so high, the deficit is It is like when my wife and I got tax cuts to the wealthiest will produce so big, we have got to cut spending? So married and we bought a house. You go a different result now? we have got to cut spending, so there- into debt. But I knew that if we worked Sensible choices are necessary now to fore we cannot put the money from hard and saved our money, we could protect the public’s interests and our general revenues back into Social Se- pay off on that house and we would national interests. Many of them will curity. have something to show for it. We did be far more difficult than this choice What is the answer? Raise the retire- not just borrow money so we could go is. The responsible choice is to extend ment age on Social Security. Cut back to fancy restaurants and have nice tax relief for the middle-income Ameri- on the benefits on Social Security. meals or buy a very expensive car or cans who need it most, and not to Maybe cut down on disability bene- buy nice clothes. No, put it in the renew tax cuts for the upper incomes of fits—all kinds of things to cut down on house, because you know you are going the wealthiest who have benefited the Social Security so we do not have to to have something. The same way with most for so long. If we maintain these take money from general revenues to infrastructure. At least if you are unbalanced tax policies, our soaring put back into the Social Security trust going to borrow money, have some- federal debt will have devastating re- fund. Mark my word, it is coming. It is thing to show for it in the end. So, percussions and shortchange many of coming. again, it will drive us deeper into debt, the Nation’s priorities. What is it no one is talking about? too little to show for it in the long run. I do think that Congress should pro- First of all, there is no deficit in the That is why I am going to have to vote vide directed tax relief that truly will Social Security trust fund. The Social against this package. help working families and that will im- Security trust fund can continue to Mr. LEAHY. Mr. President, I strong- prove our economy. For instance, I pay out 100 percent of benefits until ly oppose the tax deal now before the support extending such provisions in about 2037—about 2037. Then it can Senate. While I support tax relief for this package as the increase in the only afford to pay 75 percent of bene- working and middle-income Ameri- child tax credit, the elimination of the fits—not zero but 75 percent. What cans, I am not willing to add $858 bil- marriage penalty, and the 10-percent could fix that? One very simple thing. lion to the national debt in order to tax bracket. I also think we should re- It is called equity. It is called fairness. give enormous tax breaks to multi- tain many of the hiring incentives It is called justice. millionaires. One of the biggest mis- championed by President Obama that Right now, if you work and you make takes in the last administration was to are providing needed assistance to $40,000 a year, you pay on every dollar wage two wars without paying for Vermont small businesses looking to you make at 6.2 percent into Social Se- them while cutting taxes for the create job opportunities. These tax in- curity. If you make $400,000 a year, you wealthiest. We should not repeat that centives have allowed Vermont compa- are only paying in 6.2 percent on 25 mistake by rubberstamping this agree- nies to hire new workers and purchase cents on the dollar. Why is that? Be- ment between President Obama and new equipment for their business, thus cause Social Security payments are congressional Republicans for a whole- creating demand for other new jobs to capped at $106,800 a year. That means sale extension and expansion of the produce that equipment. you pay 6.2 percent up to $106,800. Over Bush-era tax cuts for 2 more years. But now is not the time to extend tax that you do not pay any more into So- I voted against the Bush-era tax cuts breaks to the wealthiest Americans cial Security. Think of how many peo- that were tilted heavily toward the and to companies that are sending ple in this country make $4 million a very wealthiest Americans. I also voted American jobs overseas. I am greatly year. They pay on $106,000, a fraction of against going to war in Iraq. Those concerned that if we maintain these what they make. It seems to me that may not have been the most popular policies, our soaring Federal debt will fairness and equity would argue that if votes at the time, but the relative few have devastating repercussions. We a working person who makes $20,000 or in the Senate who cast them were vot- will become increasingly vulnerable to $40,000 or $50,000 or $60,000 or $70,000 a ing for a path that would have averted the foreign nationals who are col- year has to pay on every dollar into much of the economic turmoil that has lecting our debt. The ability to provide Social Security, why should not some- roiled the economy, the budget and the promised Social Security and Medicare one who is making $400,000 or $800,000 lives of ordinary American families benefits will be eroded. And our chil- or $1 million or $4 million? Why should since then. dren and grandchildren will be left they not pay in? Raise that cap so that If we are truly committed to helping with an enormous debt that they can- everybody pays that 6.2 percent on our economy recover from the Great not possibly afford. every dollar they make. You know Recession and to putting our country I will support President Obama when what. Social Security will have no back on the glide path to fiscal respon- he is right and oppose the President problems for the next 100 years. Well, sibility, then we should not extend all when he is wrong. I feel the President

VerDate Mar 15 2010 09:20 Oct 16, 2013 Jkt 089102 PO 00000 Frm 00057 Fmt 0686 Sfmt 0634 E:\BR10\S14DE0.002 S14DE0 ehiers on DSK2VPTVN1PROD with BOUND RECORD 19864 CONGRESSIONAL RECORD—SENATE, Vol. 156, Pt. 14 December 14, 2010 is wrong to make this deal. I am first trust fund will be reimbursed for the tional interest to stabilize the public and foremost a Vermonter, and the lost revenue from the payroll tax. Yet, debt at less than 60 percent of GDP. citizens of Vermont elected me to up- this could have dangerous con- Furthermore, comprehensive tax re- hold my Vermont values. In this case, sequences on Social Security. form is necessary to make the tax code I believe the deal on tax cuts is wrong What if this cut in Social Security fairer, eliminate special interest tax for most Vermonters and wrong for our payroll taxes is extended beyond 2013? breaks, and incentivize reinvestment in country. That is why I am voting What if this is just the first step in the America. I will continue to work with against this bill. effort to cripple Social Security? What my Senate colleagues to strengthen Ms. MIKULSKI. Mr. President, after if this is just another step for those our economy and get us back on the careful deliberation, I have decided to who want to cut Social Security, pri- path towards a balanced budget. support the bipartisan tax agreement. vatize Social Security, or use the So- I yield the floor and I suggest the ab- If Congress does not pass this agree- cial Security trust fund to cut the def- sence of a quorum. ment, taxes will rise for all middle icit? The PRESIDING OFFICER. The class families. Unemployment insur- I fought against attempts to pri- clerk will call the roll. ance will end for millions of Ameri- vatize Social Security under the Bush The bill clerk proceeded to call the cans—including 75,000 Marylanders. administration. I fought against fast- roll. And important tax breaks for low and track proposals to cut Social Security Mr. BROWN of Ohio. Mr. President, I middle income workers will expire. under the guise of deficit reduction. ask unanimous consent that the order This agreement is not perfect. Yet, if And I will fight to make sure that tem- for the quorum call be rescinded. The PRESIDING OFFICER. Without Congress does not extend unemploy- porary tax cuts are not turned into objection, it is so ordered. ment insurance and tax breaks for the means to undermine Social Security Mr. BROWN of Ohio. Mr. President, middle class, the economy could slip funding. over the last few weeks, I have met and backwards. This tax agreement takes risky steps talked with many people across Ohio This is the only realizable option we that could threaten the long term sol- about our Nation’s economic future— have right now to create jobs, stabilize vency of Social Security. It also ex- family and friends, constituents who our economy, and ensure that there is tends lavish tax breaks for those who are struggling to get by, and ministers a safety net for people who have lost need them least—the wealthiest 2 per- and pastors who counsel them. their jobs. cent of Americans. It ignores the pay I have read letters and e-mails from This package maintains tax cuts for as you go rules that are essential to Ohioans who need unemployment in- the middle class so that working fami- deficit reduction. surance to find a new job and to pro- lies do not see their taxes rise in a dif- Yet, it helps the long term unem- vide for their families. I have heard ficult economy. ployed—who were facing losing every- from concerned citizens who are will- It will help 100 million middle class thing they have during this holiday ing to sacrifice for them. Ericka from families by preventing a tax increase of season—including hope. It also helps Cleveland wrote me: over $2,000 for the typical family from middle class workers, families sending I make enough money to get by. I was going into effect on January 1st. their kids to college, and small busi- ready for my taxes to go back up and I could It also prevents more than 21 million nesses who create jobs. have figured out a way to deal with it. families from coming under the Alter- So I will vote for this tax agreement. But I am terrified for folks losing their native Minimum Tax. It is essential to helping families and jobs or getting by on low to moderate in- This deal extends the Earned Income our economy. comes. I worry that if they lose their unem- Tax Credit—providing $800 million in Mr. PRYOR. Mr. President, I rise to ployment benefits or refundable tax credits tax relief for Maryland families. support the sense-of-the-Senate resolu- that the stress will be too much for too many. It also extends the tuition tax credit tion offered by Senators MARK WARNER I am sickened at the idea of giving such in- which has helped 170,000 students in and SAXBY CHAMBLISS that our Na- credibly wealthy people a tax break—I worry Maryland. tion’s spending and debt levels are on about the folks on the other end. This plan will extend unemployment an unsustainable course. In the short The debate of whether to extend benefits through the end of 2011. It will term, the economy needs the addi- Bush tax cuts has been revealing— help over 75,000 families in Maryland tional boost that this tax compromise about our policies and about the needs who have lost their jobs. It will help will provide. In the long term, however, of people worried about putting food on them put food on the table, pay their our nation must return to a sustain- the table. rent, and pay their energy bills. It will able fiscal path in order for our econ- My top priority is to ensure that prevent them from losing their homes. omy to work effectively. middle-class households get tax relief, This money goes straight back into The U.S. economy is still struggling and that unemployed Ohioans can con- our economy while putting more to recover from the worst economic de- tinue to pay their bills and provide for money in the pockets of millions of pression in eighty years. Unemploy- their families while they look for work. Americans who are facing the worst job ment remains stubbornly high at 9.8 And it is my priority to ensure that market in a quarter century. It gives percent, private sector job growth is people’s lives are not used in a cynical, them the time they need to get back on anemic, and GDP growth is weak. The political calculation. their feet, while we get the economy Federal budget deficit is projected to A lot of people are angry about this back on track. exceed $1 trillion for the third year in bill, and they should be. That is why I For the Americans who have been hit a row, our national debt is $13.8 trillion have filed amendments aimed at easing the hardest by the economic downturn, and rising, and our debt held by foreign the financial burden on middle-class this is insurance that they paid into countries already exceeds $4 trillion. households, on small businesses, on and benefits that they have earned The National Commission on Fiscal seniors, and on American manufactur- through their work. This is about peo- Responsibility and Reform has re- ers. These are issues that deserve real ple who have lost their job, who are ac- ported a credible proposal to signifi- debate, and America’s middle class de- tively looking for a job, who need a cantly reduce the growth of the na- serves real tax relief. safety net to bridge them over until tional debt and restore long-term fiscal I am angry that Republican Senators they can get a paycheck again. responsibility. The commission’s pro- insist on awarding bonus handouts to I am concerned about the long term posal received a favorable vote from 11 billionaires and millionaires. But I solvency of Social Security and about of the 18 commissioners. would be more angry if we let them the cut in the Social Security payroll I believe that a comprehensive plan continue to play games with people’s tax. The authors of this deal say there to reduce the debt over the long term livelihoods. will be no impact on solvency of Social and restore fiscal responsibility must That is why it is with great reluc- Security, and that the Social Security be developed next year. It is in our na- tance that—even though I opposed the

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Unfortunately, we may have come to a real agreement that would health, economic health, and national to pay the ransom. work for the middle class, work for the security until we take care of the mil- That means tax cuts for millionaires unemployed, and work for our budget lionaires and billionaires first. and billionaires in exchange for unem- deficit; we clearly could not—it is with Tax cuts for the wealthiest 2 percent ployment insurance and middle-class great reluctance that I vote in favor of of our country—including, I should tax relief. this bill. add, lots of U.S. Senators—come first, Let me tell you about some people Too many working families—men, we are told. But what about the 86,000 who are caught in the middle. women, and children—are already suf- Ohioan workers who saw their unem- Michael from Shelby County, in fering too much pain and anxiety. They ployment benefits run out 2 weeks ago? western Ohio, writes me: need help now. But let’s not forget how Or the 108,000 Ohioans expected to lose I am an unemployed father of four and one something happened this month in the benefits at the end of this month? of the tens of thousands of faceless Ohioans about to be cut off from unemployment in- U.S. Senate that we have never seen Sorry. Get in line behind the million- surance benefits. before, perhaps never in our Nation’s aires who get $90,000 in tax cuts. It is obscene to think that a tax giveaway history. How about the insurance agent in for the wealthy is gaining more traction po- A political party, the minority Zanesville, OH, who makes $50,000 a litically than helping working class people party—all 42 of them, all 42 of the Sen- year and is hoping for a tax cut of $800 survive. ators in the minority party—threat- for a small downpayment to help a As an unemployed worker I have no lobby daughter at the community college of or trade association backing. Instead, I have ened for all intents and purposes to to worry about losing my house, my credit stop working, unless the majority Zane State? rating and any sense of being a beneficiary of party agreed to cut taxes for America’s Too bad. Not until a deca-millionaire the ‘‘American Dream’’. wealthiest 315,000 people—315,000 out of receives his tax cut of $400,000. What am I supposed to do? 165 million taxpayers. That is less than What about a single mother with two Forty-two Republicans say: Sorry. one-fifth of 1 percent of all Federal tax- children earning $30,000 a year and hop- Get in line. Wait until we give the tax payers. ing for an expanded childcare and cuts for the rich. The minority party, the 42 minority earned-income tax credit? Stacie from Meigs County, down on party members—U.S. Senators—were Tough luck. Wait in line for the bil- the Ohio River: saying: We will do nothing until you lionaire to get his tax cut of tens of I am a mother of three school-aged, honor take care of the 315,000 out of 165 mil- millions of dollars. students, one with moderate Cerebral Palsy. lion, until you take care of the 315,000 What do they think this country is I have a Masters Degree in Education and wealthiest taxpayers in this Nation. all about? That we cannot help people teach in the public school system in the who have lost their jobs who are des- State of Ohio. Because nothing much happens any- My husband has been unemployed for 18 more in the U.S. Senate without a perately looking for work? That we months. During this time he has worked supermajority of 60 votes, the minority cannot extend a tax break to a sales part-time and attended school full-time party knew its threats to stop every- clerk making $27,000 a year who is rais- maintaining an excellent grade point aver- thing just might work. ing two children until the millionaire age. Two weeks ago, all 42 Senate Repub- gets his cash? That we cannot cut taxes As a family we have worked very hard to for the broad middle class until the adjust to our change in circumstance like licans signed a letter to Majority Lead- many other Americans. However with the er REID telling him they would block richest 1 percent of our country gets loss of $60,000+ in income we had to file everything until the Senate passed tax tens of thousands of dollars of tax Chapter 13. cuts for millionaires, for deca-million- cuts? Now we are faced with not having any un- aires, and for billionaires. To hold middle-class Americans hos- employment benefits. This will be a loss of It is ironic that a party that gen- tage—as all 42 Republican Senators another $450 per week. We need to feed our erally opposes a public employee’s have done—may be the most cynical family. political act I have ever seen. Please vote to extend the unemployment right to strike—as it did only last insurance for all unemployed workers who Wednesday—would effectively engage In a recent Cleveland Plain Dealer are trying to better themselves during this in a strike itself. This Republican work article, Susan Harrell, a laid off book- economic crisis. stoppage—since I guess Senators can- keeper, who does not like how tax cuts What about the budget deficit which not actually go on strike—this Repub- for the wealthy is a condition for main- concerns all of us? Two weeks ago, lican work stoppage means no tax cuts taining unemployment benefits, said of when the deficit commission released for the middle class unless millionaires the deal: its report, Members of both parties get a larger tax cut. It’s like extortion. Either you do what we somberly explained that nothing It means leaving middle-class fami- say, or several million Americans will be liv- mattered as much as the increasing lies and unemployed workers in the ing on the street. debt that will burden our children and crosshairs unless deca-millionaires got Think about that. This is an unem- grandchildren. a huge tax cut. ployed, laid off bookkeeper. Like many A year from now, when Republicans Their threat means that unemploy- people who write me—many of these will likely block extension of unem- ment benefits for workers would end people have worked all their lives—20, ployment, we will remind them how unless billionaire CEOs got their estate 30, 40 years. They are laid off. Susan their own $128 billion for tax cuts for tax reduced. writes: ‘‘It’s like extortion. Either you millionaires and billionaires over the It means we cannot provide the do what we say’’—give us our tax cuts next 3 years alone has already blown a childcare or the earned-income tax for millionaires—‘‘or several million hole in the budget. We will remind credits for low-income working fami- Americans will be living on the them what their tax cuts for million- lies who have earned this vital assist- street.’’ What kind of country is this aires and billionaires cost when they ance. that such a cynical, cynical, cynical argue vociferously for cuts to edu- It means blocking a cost-of-living in- exercise would happen? cation, for the privatization of Medi- crease for seniors on Social Security to In the same article, Debbie Kline, co- care and Social Security, and for scal- help buy medicines, food, and shelter. ordinator of Cleveland Jobs for Justice, ing back health care. Let’s not forget It means we cannot address national compares the choice as ‘‘weighing tax that congressional Republicans who security concerns such as the New cuts [for the rich] and people not eat- were outspoken about the debt are the START treaty—something that na- ing, living, and surviving.’’ people most responsible for it. tional security experts and every living Some say the Republicans are merely Congressional Republicans have said Secretary of State from both parties obstructing or gaming the Senate that cutting taxes on the highest earn- support. rules. But I am with Susan—legislative ers would pay for itself. It hasn’t. The

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Presiding Officer sat in the House of do tax cuts for the rich—it is a choice VOINOVICH, my State’s senior Senator, Representatives in those days when the between paying an extortionist’s ran- be recognized at 10:30 a.m. Wednesday, huge Bush tax cuts for the wealthy in som or letting the middle class con- December 15, to bid farewell to the 2001 and 2003 passed. They always said tinue to struggle. It is a choice forced Senate for up to 20 minutes; further, they would pay for themselves. Not upon us during a time when we simply that at 2:15 p.m. on Tuesday, December even close. We went from a surplus can’t afford to play politics with peo- 21, Senator SPECTER be recognized to when President Clinton left office, the ple’s livelihoods. deliver his farewell to the Senate; pro- largest surplus in U.S. history, to mas- I can’t look an unemployed worker in vided further that on Wednesday, De- sive deficits when President Bush left the eye and tell him that our political cember 15, upon conclusion of the vote office, the largest deficits up to that principles stand in the way of their on proceeding to executive session, the point in American history. earned benefits. As much as I dislike Senate return to legislative session in Congressional Republicans, who were what they did and how they did it, as order for Senator LINCOLN to say fare- the most responsible for this economic much as I dislike these tax cuts that go well to the Senate; that at the conclu- situation, along with President Bush, overwhelmingly to the richest people, sion of her remarks and any of her col- said that the tax cuts for the wealthi- the estate tax cuts, the huge hole they leagues, the Senate then resume execu- est would grow the economy and create are driving in the deficit, as much as I tive session at the same status prior to jobs. They haven’t. Under President dislike that—and they are my prin- Senator LINCOLN’s recognition in legis- Bush, for 8 years, we lost 673,000 private ciples I stand on—I just can’t imagine lative session. sector jobs. We actually declined in the saying to an unemployed worker: The PRESIDING OFFICER. Without number of Americans working in the Sorry, as much as I want to help you, objection, it is so ordered. I just don’t believe this is fair that we private sector during those 8 years. f From 2001 to 2007, we had below aver- should do this. I can’t look at a single age economic growth. mother making $27,000 a year and say: MORNING BUSINESS Republicans say that if millionaires The earned-income tax credit is not Mr. BROWN of Ohio. Mr. President, I have to pay the same tax they did be- important, even though it is for you, ask unanimous consent that the Sen- fore the Bush tax cuts; that is, during and turn my back on them. The unem- ate proceed to a period of morning the Clinton years, then job creation ployed worker, the single parent mak- business, with Senators permitted to will suffer. But it is a fact that during ing $28,000 a year working two jobs speak therein for up to 10 minutes the Clinton years we created 22 million should not have to end the holiday sea- each. jobs in those 8 years—again, 21 million son and enter the new year worried be- The PRESIDING OFFICER. Without private sector jobs and 22 million over- cause of politics and about how the ar- objection, it is so ordered. all. We created 21 million private sec- cane Senate procedure stood in the f tor jobs compared to private sector job way. I may not like the choice, but I have TRIBUTES TO RETIRING loss during the Bush years. SENATORS Congressional Republicans voted for to stand with the Ohioans who may the Iraq war but have ignored its costs, have to wait until midnight when their JUDD GREGG charging it to our children and grand- unemployment benefits are activated Mr. DURBIN. I want to join my col- children. In 2003, Republicans voted to to buy necessities such as milk and leagues in wishing our friend, Senator bail out the drug and insurance compa- bread. We have to stand with the moth- JUDD GREGG, the best of luck as he pre- nies in the name of Medicare privatiza- er and the father and the teacher and pares for his new life beyond the U.S. tion and charged it to our children and the nurse and the farmer who need Senate. grandchildren. middle-class tax relief to care for a I don’t think it is any exaggeration If the last decade is any indication, it child, afford a college education, or to to say that, without the leadership and is that trickle-down economics simply build a small business. dogged insistence of JUDD GREGG and doesn’t work. The last decade has It is with that in mind that I vote in KENT CONRAD, there would have been shown it has failed history as an exper- favor of this bill—people such as no Presidential Deficit Commission. iment. Ericka and Susan and Debbie and Mi- As a member of that commission, I Meanwhile, during the last 2 years chael and Stacy who say: Enough is want to say to Senator GREGG: I will alone, Democrats—usually without Re- enough. Please help me. Because of get you back for that one. publican support—have already passed them, I will continue to fight on their In all seriousness, serving on the Def- $500 billion in tax cuts through the behalf. icit Commission was not an easy as- ARRA, through the Small Business I hope my Republican colleagues signment. But I believe the commis- Act, through the HIRE Act. Our eco- learn something from this. Legislative sion’s work, and the way we went nomic policies that are focused on the threats of a work stoppage and legisla- about our work, shows that Democrats middle class are helping to create jobs tive blackmail may have helped their and Republicans can still reason to- and turn around our economy. rich friends and may continue today, gether and act together for the good of For the past 50 years, Republicans but in the end, it is bad for our econ- our nation. I thank Senator GREGG for and Democrats alike have always acted omy, it is bad for the Senate, it is ter- helping to remind us of that important to provide extended unemployment rible for our country, and it is terrible truth. during tough economic times. That is for our future. You might remember a few years I yield the floor, and I suggest the ab- because it is not only a moral obliga- back when Senator GREGG won about sence of a quorum. $850,000 in a Powerball payoff. A bunch tion, but it is also an economic stim- The PRESIDING OFFICER. The of us on our side of the aisle tried to ulus for our economy. The same goes clerk will call the roll. for the childcare and the earned-in- The bill clerk proceeded to call the convince him that he ought to do what come tax credits. They strengthen the roll. all big lottery winners do: quit his job. middle class. They give people oppor- Mr. BROWN of Ohio. Mr. President, I He said no—there was more he wanted tunity to join the middle class. They ask unanimous consent that the order to do in the Senate. help the economy by injecting money for the quorum call be rescinded. JUDD and I served together in the into the economy. The PRESIDING OFFICER. Without House and the Senate and, as I said, on So this debate really comes down to objection, it is so ordered the Deficit Commission. We’re one of whose side are you on and whom are f the Odd Couples of Capitol Hill. He’s you fighting for. It is a choice between Felix and I’m Oscar. paying an extortionist’s ransom—we ORDER OF PROCEDURE We haven’t agreed on a whole lot. are not going to do anything; we are Mr. BROWN of Ohio. Mr. President, I But we have been allies on some big, going to do a work stoppage unless we ask unanimous consent that Senator important fights. JUDD was an

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