February 3, 2009 CONGRESSIONAL RECORD — SENATE S1387 from the health effects associated with ties to have an effective stimulus Mrs. MURRAY. Mr. President, I sewerage overflows. It will improve our which is not quite so expensive. move to reconsider the vote. water quality in rivers and streams I yield the floor. Mrs. BOXER. I move to lay that mo- across the State, including our na- The PRESIDING OFFICER. The Sen- tion on the table. tional treasure, the Chesapeake Bay. ator from Washington. The motion to lay on the table was Together the water infrastructure Mrs. MURRAY. Mr. President, I agreed to. thank my colleague from Pennsyl- funds total an additional $160.2 million f in Maryland that will create 6,270 jobs. vania. I urge my colleagues to approve This is an amendment that meets our this $25 billion for the 655,000 jobs RECESS critical infrastructure needs and cre- across the country to rebuild roads, The PRESIDING OFFICER. Under ates jobs right away, giving our econ- bridges, sewers, and infrastructure. the previous order, the Senate stands omy the stimulus it needs. This amendment will put people to in recess until 2:15 p.m. today. But this is also an amendment that work, and it will get the country back Thereupon, at 12:55 p.m., the Senate is temporary and targeted. We will get to the point where we feel strong recessed until 2:15 p.m. and reassem- major infrastructure improvements again. I have heard the arguments bled when called to order by the Pre- that will last much longer than the about offsets, and I know there are a siding Officer (Mr. CARPER). funds themselves. These are invest- number of Senators who are working to f ments roads, bridges, sewer systems, find agreement on how we can reduce drinking water facilities—that typi- the cost of the underlying bill. We will AMERICAN RECOVERY AND REIN- cally last 30, 40 even 50 years. This is a work with them. But let’s make sure VESTMENT ACT OF 2009—Contin- smart investment in America’s future. we understand that infrastructure is a ued I am proud to serve as an original co- priority and approve this amendment. The PRESIDING OFFICER. The Sen- sponsor of this amendment, and I urge I ask for the yeas and nays on the ator from Florida is recognized. my colleagues to give it their enthusi- motion to waive the Budget Act. (The remarks of Mr. NELSON of Flor- astic support. This is an amendment The PRESIDING OFFICER. Is there a ida pertaining to the submission of S. that is an investment in America. sufficient second? Con. Res. 4 are located in today’s The PRESIDING OFFICER. The Sen- There appears to be a sufficient sec- RECORD under ‘‘Submission of Concur- ator from Washington, under a pre- ond. rent and Senate Resolutions.’’) vious order, is recognized for 30 sec- The question is on agreeing to the The PRESIDING OFFICER. Who onds. motion. seeks recognition? Mrs. MURRAY. I ask unanimous con- The clerk will call the roll. The Senator from Oklahoma is recog- The legislative clerk called the roll. sent that Senators CARPER and TESTER nized. be added as cosponsors of the amend- Mr. DURBIN. I announce that the Senator from Massachusetts (Mr. KEN- AMENDMENT NO. 109 TO AMENDMENT NO. 98 ment, and I ask unanimous consent Mr. COBURN. Mr. President, I ask that the Senator from Pennsylvania be NEDY) is necessarily absent. Mr. KYL. The following Senator is unanimous consent that the pending given 2 minutes prior to my closing re- necessarily absent: the Senator from amendment be set aside, and I call up marks. an amendment. The PRESIDING OFFICER. Without New Hampshire (Mr. GREGG). The yeas and nays resulted—yeas 58, The PRESIDING OFFICER. Without objection, it is so ordered. objection, it is so ordered. The Senator from Pennsylvania. nays 39, as follows: The clerk will report. Mr. SPECTER. Mr. President, I be- [Rollcall Vote No. 33 Leg.] The legislative clerk read as follows: lieve we do need a stimulus package. I YEAS—58 have not had an opportunity to speak Akaka Feinstein Nelson (FL) The Senator from Oklahoma [Mr. COBURN] proposes an amendment numbered 109. on the bill generally but will do so Baucus Gillibrand Nelson (NE) Bayh Hagan Pryor Mr. COBURN. Mr. President, I ask later today to express concerns I have Begich Harkin Reed about not following regular order in Bennet Inouye Reid unanimous consent that reading of the having hearings. But I understand the Bingaman Johnson Rockefeller amendment be dispensed with. Bond Kaufman President is concerned about very Sanders The PRESIDING OFFICER. Without Boxer Kerry Schumer prompt action. I support this amend- Brown Klobuchar objection, it is so ordered. Shaheen Burris Kohl The amendment is as follows: ment for $25 billion in infrastructure. I Specter Byrd Lautenberg believe the bill is too heavily weighted Stabenow On page 475, beginning on line 1, strike Cantwell Leahy through page 477, line 17. on items which ought to be in the Cardin Levin Tester budget process, very important items, Carper Lieberman Udall (CO) Mr. COBURN. Mr. President, we are but not in the stimulus package, and Casey Lincoln Udall (NM) in the midst of debating a ‘‘stimulus Conrad McCaskill Warner more heavily directed to infrastructure Dodd Menendez Webb bill’’ that has been brought forth in the on projects which are shovel ready. Dorgan Merkley Whitehouse hopes of alleviating some of the eco- This amendment is directed to that ob- Durbin Mikulski Wyden nomic pain we have in this country. jective. Governor Rendell has assured Feingold Murray Principally, I object to many of the me and the public that he can have NAYS—39 provisions in the bill because they are highway jobs ready in 6 months, shovel Alexander DeMint Martinez not stimulatory whatsoever. We all ready to proceed. So I believe this is Barrasso Ensign McCain know that. We are going to add $1.2 Bennett Enzi McConnell what the stimulus ought to be doing. Brownback Graham Murkowski trillion to the debt and we are not fix- I would have preferred to have seen Bunning Grassley Risch ing the real problem this country is en- an offset for this $25 billion. There are Burr Hatch Roberts countering, and that is the absolute funds where it could have been offset; Chambliss Hutchison Sessions collapse of the housing industry. We Coburn Inhofe Shelby for example, in the State Stabilization Cochran Isakson Snowe can spend all the money we want to Program, $79 billion, which is broad, Collins Johanns Thune spend on ‘‘stimulus’’ packages—which wide-ranging discretion to the Gov- Corker Kyl Vitter this one isn’t—and it is not going to do Cornyn Landrieu Voinovich ernors, which ought not to be a part of Crapo Lugar Wicker a thing, unless we fix housing and the the stimulus package. We will have an liquidity crisis. opportunity in the balance of this bill NOT VOTING—2 I bring up this amendment because it to find the savings of this $25 billion. Gregg Kennedy shows how misaligned this bill is. This The overall bill ought to be less than The PRESIDING OFFICER. On this amendment seeks to eliminate a $246 the $819 billion passed by the House. vote, the yeas are 58, the nays are 39. million earmark. It is nothing but But for the present time, I will vote to Three-fifths of the Senators duly cho- that. It is a tax earmark for the movie waive the budget, looking for an oppor- sen and sworn not having voted in the industry. Let’s put the history out tunity to find the $25 billion offset affirmative, the motion is rejected and there. The movie industry today can later and looking for other opportuni- the emergency designation is stricken. take advantage and write off all of its

VerDate Nov 24 2008 02:42 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.023 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1388 CONGRESSIONAL RECORD — SENATE February 3, 2009 production costs and take an addi- undermining of confidence in this we are guaranteeing nearly $300 billion tional $15 million out of the taxpayers’ country, showing that we are not about for toxic assets for Citigroup. We know pocket for every movie they produce in the best interests of all Americans, but that. We know how much has gone to this country, of which 75 percent of the instead the best interests of the special some of the other investment banks. expenses are actually incurred in this interests that have effective lobbying We know how much money went to country. What we have added is an ear- that can get a quarter of a billion dol- AIG. We have a notion of how money mark to markedly increase all movies lars for this industry into a bill. went in certain directions. But no one produced in 2009, which is an additional I will come back later and talk on knows exactly how much went out of $246 million. this again. I want the people in Amer- the Federal Reserve Board, to whom, in I am not against tax breaks that are ica to ask a simple question: Is this what direction, for what purpose. How general across the board and will be something we ought to be doing right much from the FDIC, how much from truly a stimulus, but this is a tax now to help and heal America? Is it TARP, when, why, how much—we don’t break earmark that has a tremendous going to help people who are out of know the answers to all of those ques- odor to it. The odor is this: We already work? Is it going to help in terms of re- tions. created tax breaks, starting in 2004, for starting the engine of consumer spend- Here is what I propose: Last week the movie industry that are greater ing? Is it going to do the things we there was a lot of discussion about bo- than we have for any other industry, need to do to make a difference in our nuses. I believe last year the Wall and now we are going to add to it—at economic situation in the world today? Street investment firms lost $35 billion a time when Hollywood is at one of its The answer, on this special interest in income and paid $18 billion in bo- zeniths of success. As a matter of fact, earmark, is absolutely not. What we nuses to their employees. I don’t know. yesterday in USA Today is the head- are going to do is benefit those who are I have a masters in business. We went line: ‘‘Billion Dollar January is the doing the best in the economy today, through a lot of casework in business Box Office’s Best in History.’’ not those who are doing the worst. school. I don’t think I came across a They had the best January in their I yield the floor. case that said: Here is good business— history—more profits, more revenue, a The PRESIDING OFFICER. Who lose $35 billion and then pay $18 billion 20-percent increase in ticket sales. Yet seeks recognition? in bonuses. I don’t guess I saw that in we are going to take a stimulus bill The Senator from North Dakota is the Harvard Business Review. and add another quarter of a billion recognized. One amendment is, we ought to, as a dollars to one of the few industries in Mr. DORGAN. Mr. President, I sug- government, have the right to under- our country that is faring well. gest the absence of a quorum. stand what kind of bonuses are being To quote Rob Reiner, whom most The PRESIDING OFFICER. The paid by firms that are receiving finan- people know—and I think this is prob- clerk will call the roll. cial assistance under the structure of ably disappointing to him—this is what The legislative clerk proceeded to the financial assistance that has been he said when asked about Hollywood’s call the roll. offered by our Government. relationship with Washington, DC: Mr. DORGAN. Mr. President, I ask I propose an amendment. It is an We are a special interest group that unanimous consent that the order for amendment that would report bonuses doesn’t ask for anything, like earmarks, leg- the quorum call be rescinded. to the American taxpayers. I want all islation, or tax breaks. We are the one indus- The PRESIDING OFFICER. Without companies receiving emergency eco- try that doesn’t ask for a quid pro quo. objection, it is so ordered. nomic assistance from any Federal fi- What have we done in this bill? We Mr. DORGAN. Mr. President, I will nancial agency to publicly release in- have sent a quarter of a billion dollars speak briefly. I believe Senator MIKUL- formation on any bonuses paid, includ- of our grandkids’ money to some of the SKI is perhaps going to offer the next ing the bonus recipients and the most profitable businesses in this coun- amendment. I do not want to disadvan- amount of the bonuses. The American try, which at this point in time have tage the time that has been allotted. I people have a right to that informa- not been impacted and don’t project to did want to, however, point out that I tion. After all, these are companies be impacted at all by the recession we intend to talk about three amendments that have asked for and received Fed- are currently experiencing. very briefly. I filed two of them; I will eral assistance. Let’s have the Amer- This isn’t stimulus; this is a gift. It is file the third shortly. ican public be able to shine a spotlight not going to stimulate the economy at All of us understand what has hap- on what has happened to that money, all. What it is going to do is line the pened in recent months. In the last 4 or including, especially, the use of that pockets of very wealthy individuals 5 months we have seen money go out money potentially for bonuses. who are already not experiencing the the backdoor of this Government un- Second is an amendment I have filed downside of the economy. What we like any time in the history of our that is what I call the Jobs Account- should have instead is tax breaks that country. In fact, you can read the U.S. ability Act. This is all about creating go across the board to every small Constitution. I don’t think you can jobs. If we are, in fact, about creating business and to every large business. If find a place in the Constitution that jobs, then this proposal would be to say it is written that way, I would not ob- describes the mechanism by which we should have quarterly reports in the ject if Hollywood got some of the massive amounts of money have gone Congress after this legislation is passed money. But we have singled out one in- out of this Government—$8.5 trillion, because tens of billions, hundreds of dustry to give them special treatment, to the extent we now know how much billions of dollars will have been spent when they already get special treat- has been moved from our Government in the pursuit of creating new jobs. ment under the Tax Code. This is not to support various enterprises. Why is that important? Mr. Presi- an appropriations earmark, this is a The reason we know that is dent, 20,000 people will likely learn Finance Committee earmark. The Bloomberg News sued the Government today they lost their job, 20,000 people chairman of the Appropriations Com- and the Federal Reserve Board, which today and every day; 2.6 million last mittee is on the floor as we speak. It is is the only way anybody got the infor- year, and they say 2.6 million more in not aimed at him. mation about how much money has the first 6 months of this year. This is How long are we going to continue to been obligated by the Federal Reserve a deep crater. We have to care about play this game? How long are we going Board which opened its discount win- trying to create jobs, putting people to continue to confuse the American dow for the first time in history to in- back on payrolls to give them some people about what we are doing? I want vestment banks. hope and some confidence again. the American people to respect what It has never before happened. How If we are spending money to do that we are doing in this body. When we do much money was committed? We know in what is called an economic recovery things such as this and sneak in a quar- some snippets of all of that. We know program, let’s try to track that money. ter of a billion dollars for our friends, that, for example, Citigroup got about This amendment is very simple. It is when they don’t need it, because we $45 billion, and then we are told we the Jobs Accountability Act. What I can, we demean this institution. But have reached an agreement, along with propose is that when this money goes more importantly, we contribute to the the direct funding to Citigroup, that out the door to the recipients—State

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It is the years many cosponsors and the strong ing with the tax issue, and I will file only place we will get this kind of in- support of my colleague from the State that this afternoon. I hope I can get in formation. of Maryland. I will file that amend- line so we can have a debate because it Does anybody think we ought to just ment today. A tax bill is on the Senate is first and foremost about jobs. ship money out the door and not ask floor. If not now, when should we ever The PRESIDING OFFICER. The Sen- for some sort of reporting requirement plug this loophole that says as a coun- ator from Maryland. about how many jobs we created? Oth- try, we stand behind shipping jobs AMENDMENT NO. 104 TO AMENDMENT NO. 98 erwise, it is sort of the helicopter the- overseas. Let’s say we stand behind (Purpose: To amend the Internal Revenue ory of money. Get the money in bags, keeping jobs here. No tax advantage for Code of 1986 to allow an above-the-line de- take it up in a helicopter, shove it out those who export them. Let’s provide duction against individual income tax for the side, and let it scatter. That is not tax advantages, if we are going to, for interest on indebtedness and for State what this is about. We are supposed to those who create jobs and keep jobs in sales and excise taxes with respect to the be focusing like a laser on jobs. Let’s this country. purchase of certain motor vehicles) get the reports from everybody who re- Ms. MIKULSKI. Mr. President, will Ms. MIKULSKI. Mr. President, I ask ceived this funding in order to deter- the Senator yield for a question? unanimous consent that the pending mine the effect of what we have done. Mr. DORGAN. I will be happy to amendment be set aside, and I call up That is an amendment I have filed. yield. amendment No. 104. The third amendment I have not filed Ms. MIKULSKI. My question is about The PRESIDING OFFICER. Is there but will file today is the issue of run- the steel industry. As the Senator objection? away manufacturing plants. It is some- knows, I, along with him, tried to Mr. ISAKSON. Reserving the right to thing I have worked on in the past with stand up for American steel. So the object, and I will not, can we establish my colleague from Maryland, Senator Senator means to say if a steelmaker an order of recognition? I have been on MIKULSKI. This is an interesting propo- moves production overseas at a very the Senate floor. Senator MCCAIN has sition. We are trying to create jobs be- minimal rate, and then ships steel joined us. Senator MIKULSKI has been cause we are losing jobs in this coun- back, they are going to have a lower here for a while. Can Senator MIKULSKI try. tax rate than the steel company that give us an order of presentation? We have a perverse provision in our struggled, downsized, rightsized to try Mr. REID. Can I make a parliamen- Tax Code that says this: If there are to stay in this country and manufac- tary inquiry, please? two companies in Maryland right ture steel? The PRESIDING OFFICER. The ma- across the street from each other, mak- Mr. DORGAN. That is exactly the jority leader. ing exactly the same product to be sold case. Most people would not even be- Mr. REID. Mr. President, I say to my in this country, in our marketplace, lieve that to be the case. They would friends, it was my understanding—I and one of them, on a cool January say: How on Earth would someone have just stepped on to the Senate floor—we day, decides: You know what, I am constructed a system that allows that had a Democratic amendment that was leaving Maryland. I am getting rid of to happen? Oh, but they did, and they offered. Senator COBURN offered an my workers. I am moving my produc- have fiercely protected it. amendment. What we are going to try tion to China and I will make that The reason the steel company that to do is rotate back and forth. The next product by hiring 30-cent-an-hour labor stays here pays a higher tax is the in line that we have is Senator MIKUL- and I will ship the product back to steel company that leaves and ships SKI. America to be sold—after that trans- back to this country gets what is Mr. MCCAIN. Is there a previous action is done. What is the difference called a deferral of income tax; they unanimous consent agreement? between the company that stayed in don’t have to pay the tax until some Mr. REID. No. There was just an un- Maryland and the company that left point later. Of course, we know from derstanding between Senator MCCON- Maryland to produce in China? The dif- history and from the history what has NELL and me that we would rotate back ference is the American company that been described as being filed to this and forth. The Senator can decide on left and got rid of their jobs and moved bill, ultimately if they are repatriated, his side who goes next. to China has a tax bill that is lower they get to pay a tax rate of 51⁄2 per- Mr. MCCAIN. I was just asking if than the company that stayed. cent, something no other American there was a previous unanimous con- We actually provide in this tax sys- gets to pay. It is a pernicious tax in- sent agreement, I ask the Presiding Of- tem of ours the most pernicious incen- centive that we certainly ought to put ficer. tive I can imagine, and that is an in- an end to, in my judgment. The PRESIDING OFFICER. There is centive to say to companies: If you Ms. MIKULSKI. Will the Senator a pending unanimous consent request have a choice, we will actually pay you agree that we are often chastised for made by the Senator from Maryland. an incentive in the Tax Code to move ‘‘Buy American’’ amendments, but es- Mr. MCCAIN. What is the nature of your jobs overseas. My runaway plant sentially what exists now is a ‘‘Tax that request? amendment will fix that situation. American’’ situation, and the amend- The PRESIDING OFFICER. Will the I have offered it, I believe, four times ment of the Senator from North Da- Senator from Maryland restate her re- with my colleague from Maryland and kota would remedy that situation. quest? some others. We have come up short Mr. DORGAN. That is exactly the Ms. MIKULSKI. Mr. President, I ask four times. But we have a lot of new case. There is a ‘‘Buy American’’ unanimous consent that the pending Senators who I think would very much amendment I helped put in this bill amendment be set aside and I call up like to vote on this amendment. We that has caused a fair amount of con- amendment No. 140. also have a new President who cam- troversy, but it is not violative of any The PRESIDING OFFICER. Is there paigned on it, a new President who trade agreement. It represents in this objection? went all across this country and said: bill mostly grants to the States and Mr. MCCAIN. Reserving the right to Let’s stop the incentives for shipping others for public works projects. It object, would the majority leader and jobs overseas. seems to me to the extent we possibly the Senator from Maryland object to a This is the perfect place, it seems to can, we ought to urge the purchase of sequence of speaking so some of us can me, to have this vote. The reason is be- steel or iron or skids steer loaders in plan the use of our time at least for the cause we have a tax bill on the Senate this country to do so. I recognize it is next two or three speakers? floor now. This is, it seems to me, ex- controversial. I am not interested in The PRESIDING OFFICER. The ma- actly the wrong incentive. If we are being violative of any trade agreement jority leader.

VerDate Nov 24 2008 02:42 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.029 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1390 CONGRESSIONAL RECORD — SENATE February 3, 2009 Mr. REID. I was not aware a Coburn What does my amendment do? It does BARB, I have worked all my life, and I amendment had been laid down. I think this. If you buy a passenger car, love to work on cars. I just love it. I it would be appropriate to have the minivan or light truck within this love to fix them and I love to repair Senator from Maryland lay down her year, you will get a tax deduction for them, and I think I have done a good amendment and go back to the Coburn your sales or excise tax and the inter- job at it. I am happy to think I have amendment. People who wish to speak est on your car loan. It means a family helped a lot of other people to be in on that amendment should be able to could save approximately $1,500 on a safe, reliable vehicles, and all I want is do that before we have the speaking $25,000 car purchase. to have a real job and a real income so order of the Senator from Maryland. It Now, what does this amendment that I can send my two kids to college. is my understanding the Senator from mean and what does it do? This amend- I could elaborate on my amendment, Arizona wishes to speak on the Coburn ment is actually about creating jobs. but I know others also wish to speak on amendment. Our automobile industry is lan- it, and I will reserve the right to come Mr. MCCAIN. I would, Mr. President. guishing—from the people who make back and to further debate it. But if I ask unanimous consent that after the them, to the dealers who sell them, to you want to help create jobs, save jobs, Senator from Maryland, the Senator the people who service them, to the keep the automobile industry going, from Georgia and whatever speaker on back office people, and to the people and get our economy back on its the other side wishes to speak, then I who also provide the supplies. wheels, vote for the Mikulski auto- be—— My amendment is also cost-effective mobile tax deduction amendment. Mr. REID. If I may interrupt my in terms of the Treasury. Not a nickel Mr. President, I yield the floor. friend, all the Senator from Maryland will be spent unless you go buy a car or The PRESIDING OFFICER (Mr. wants to do is lay down her amend- a minivan or a light truck. So we are SANDERS). The Senator from Arizona is ment so when we complete action on not throwing money out of a heli- recognized. the Coburn amendment, we can move copter, and we are not putting money AMENDMENT NO. 109 to her amendment. out there and hoping people will spend. Mr. MCCAIN. Mr. President, I would The PRESIDING OFFICER. Without We are giving money to banks hoping like to begin by thanking the managers objection, it is so ordered. The clerk they will lend. Under the Mikulski for their patience and their leadership will report. amendment, it only happens if you in this marathon that we are engaged. The legislative clerk read as follows: walk into a dealership, buy an auto- I rise in support of the Coburn The Senator from Maryland [Ms. MIKUL- mobile, and then once you complete amendment, which strikes the $246 mil- SKI], for herself, and Mr. BROWNBACK, pro- that purchase, take that deduction for lion Hollywood tax earmark. It is quite poses an amendment numbered 104 to amend- ment No. 98. the sales tax along with the interest. an interesting earmark in that the Why is this good? First of all, for the (The amendment is printed in the stimulus legislation provides a tax ear- consumer, it means they get a deal. It mark for Hollywood in the amount of RECORD of Monday, February 2, 2009, is a market incentive and gets them under ‘‘Text of Amendments.’’) $246 million—a quarter of a billion dol- into the showroom to buy what they The PRESIDING OFFICER. The Sen- lars—over the next 11 years, and would want. Second, it helps the environment ator from Maryland. allow large Hollywood studios the op- Ms. MIKULSKI. Mr. President, I sug- because all new cars—and this is going portunity to choose between the exist- gest the absence of a quorum. only to new cars—get greater fuel effi- ing tax break for movie studios or to The PRESIDING OFFICER. The ciency and have lower carbon emis- write off 50 percent of the entire pro- clerk will call the roll. sions. It is also the only amendment duction cost for movies and TV shows The legislative clerk proceeded to that affects business up and down the made in 2009. In the years that follow call the roll. chain in our own country. My amend- the remainder of the production cost Ms. MIKULSKI. Mr. President, I ask ment is not limited to only American would be written off according to exist- unanimous consent that the order for cars but it is focused on cars made in ing depreciation law. The 50-percent the quorum call be rescinded. the United States. So whether it is a accelerated depreciation in the first The PRESIDING OFFICER. Without Ford, a Chevy, a Chrysler, a Nissan or year is a ‘‘bonus depreciation.’’ Obvi- objection, it is so ordered. a Toyota, it qualifies for the Mikulski ously, this amendment would strike Ms. MIKULSKI. Mr. President, to amendment. that special earmark. give a sense of process, I have an No. 1, it helps manufacturing. If you I would point out to my colleagues amendment that I think will con- buy a car, it means they have to be that Hollywood is doing okay. They tribute to both creating jobs and sav- built. We are facing a crisis in the raked in over a billion dollars in Janu- ing jobs in the American automobile automobile industry. We can give all ary—the biggest January ever for the industry. Before I explain my amend- the bailouts we want, but unless people movie industry. That is testimony to ment, I wish to note that my remarks buy cars, the bailout will just become the attractiveness of the product. Box will take about 5 minutes. I ultimately part of the bucket list. My amendment office receipts were up nearly 20 per- will want to vote on this amendment helps manufacturing, which means it cent in January 2009, with ticket sales later on today, when the leadership on also helps the dealerships. There are up 16 percent over January 2008, when both sides of the aisle agrees to a time 20,000 new car dealerships in the United January is typically considered a weak in sequencing they choose. I know States, and they employ about a mil- month for the industry. there will be opponents to my amend- lion people. I have met them in my own Movie director Rob Reiner was re- ment, and I will return to debate at State. In many of the rural parts of my cently asked about Hollywood’s rela- that time. But in the interest of com- State, they are the major employer. tionship with Washington, DC, and ity, I will lay down my amendment, They are also the major contributors claimed: speak for 5 minutes to explain it, and to the United Way, to the rotary clubs, We are a special interest group that then we can return to the discussion on and to the athletic leagues. These are doesn’t ask for anything like earmark legis- the Coburn amendment. human beings who sell cars. They are lation or tax breaks. We are the one industry Mr. President, I think we all agree the auto mechanics, with grease under that doesn’t ask for a quid pro quo. that our economy is in shambles and their fingernails but patriotism in Well, rather than targeting tax that Congress needs to act and act very their hearts; they are the taxpayers breaks at big-time political donors, the quickly. My amendment does what the who pay for the bailout of the banks, stimulus should have targeted its tax President said he wanted to do, and but they don’t want a bailout, they break toward mainstream America. what the other side of the aisle says it want people to come in to buy their I regret that I can’t support the so- wants to do, or the other side of my cars. My amendment also will help the called stimulus bill that has been pre- amendment says they want to do. The consumer to have one more incentive sented. We have an opportunity to Mikulski amendment is timely, tar- to be able to buy these cars. craft a bill that would provide real re- geted, and temporary, and it is focused One of the auto mechanics said to me lief for the American people at a time on saving jobs and creating jobs in the he had worked at a Chevy dealership of great economic uncertainty. Unfor- automobile industry. for over 23 years. He said: Senator tunately, that opportunity has so far

VerDate Nov 24 2008 02:42 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.030 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1391 been rejected. Once again, parochial stimulate the economy, but we need to consumption shows no noticeable increase at partisan and special interests have do it in a smart, fiscally responsible the time of the rebate. Hence, by this simple taken precedence over the interests of manner that will not bankrupt future measure, the rebate did little or nothing to stimulate consumption, overall aggregate the American people. generations of Americans. It is more demand, or the economy. This bill has become nothing more important now than ever before that These results may seem surprising, but than a massive spending bill, expected Congress restore fiscal discipline to they are not. They correspond very closely to cost taxpayers more than $1.2 tril- Washington and get our financial house to what basic economic theory tells us. Ac- lion, according to the latest estimate in order. cording to the permanent-income theory of by the Congressional Budget Office, In a November 25, 2008, opinion piece Milton Friedman, or the life-cycle theory of and $1.2 trillion dwarfs any Govern- in the Wall Street Journal, John Tay- Franco Modigliani, temporary increases in ment program in history, after adjust- income will not lead to significant increases lor, a senior fellow at the Hoover Insti- in consumption. However, if increases are ing for inflation. It is bigger than the tution and a professor of economics at longer-term, as in the case of permanent tax New Deal and the Iraq war combined. Stanford University, wrote: cut, then consumption is increased, and by a The interest alone will be costlier than The major part of the first stimulus pack- significant amount. the Louisiana Purchase in current dol- age last year was the $115 billion temporary After years of study and debate, theories lars or the amount the United States rebate payment program targeted to individ- based on the permanent-income model led spent to land on the Moon. uals and families that phased out as incomes many economists to conclude that discre- During a press conference in Novem- rose. Most of the rebate checks were mailed tionary fiscal policy actions, such as tem- porary rebates, are not a good policy tool. ber 2008 to introduce the new Director or directly deposited during May, June, and July of 2008. The argument in favor of these Rather, fiscal policy should focus on the of the Office of Management and Budg- temporary rebate payments was that they ‘‘automatic stabilizers’’ (the tendency for et, then President-elect Obama said: would increase consumption, stimulate ag- tax revenues to decline in a recession and The new way of doing business is, let’s fig- gregate demand, and thereby get the econ- transfer payments such as unemployment ure out what projects, what investments are omy growing again. What were the results? compensation to increase in a recession), going to give the American economy the This chart reveals the answer. The upper line which are built into the tax-and-transfer sys- most bang for their buck, how we protect shows disposable personal income through tem, and on more permanent fiscal changes taxpayer dollars so that this money is not September. Disposable personal income is that will positively affect the long-term wasted, restore a sense of confidence among what households have left after paying taxes growth of the economy. taxpayers that, when we spend our money, it and receiving transfers from the govern- Why did that consensus seem to break is on that which is actually going to improve ment. The big blip is due to the rebate pay- down during the public debates about the fis- their quality of life, create jobs that are so ments in May through July. The lower line cal stimulus early this year? One reason may desperately needed, help to spur on economic shows personal consumption expenditures by have been the apparent success of the rebate growth and business creation in the private households. Observe that consumption shows payments in 2001. However, those rebate pay- sector. That is all part of the new way of no noticeable increase at the time of the re- ments were the first installment of more per- manent, multiyear tax cuts passed that same doing business. bate. Hence, by this simple measure, the re- year. Hence, they were not temporary. bate did little or nothing to stimulate con- 1I was very pleased to hear the Presi- What are the implications for a second dent speak those words. However, I do sumption, overall aggregate demand or the stimulus early next year? The mantra often not believe the bill before us today is economy. These results may seem surprising, heard during debates about the first stim- reflective of that sentiment. Let’s ac- but they are not. They correspond closely to ulus was that it should be temporary, tar- what basic economic theory tells us. Tem- geted and timely. Clearly, that mantra must knowledge and continue to acknowl- porary increases in income will not lead to edge that American families are hurt- be replaced. In testimony before the Senate significant increases in consumption. How- Budget Committee on Nov. 19, I rec- ing and they need our help. We have ever, if increases are longer term, as in the ommended alternative principles: perma- entered the second year of a recession. case of a permanent tax cut, then consump- nent, pervasive and predictable. RECORD numbers of homeowners face tion is increased and by a significant Permanent. The most obvious lesson foreclosure, our financial markets have amount. learned from the first stimulus is that tem- nearly collapsed, the U.S. automobile Mr. President, I ask unanimous con- porary is not a principle to follow if you manufacturers are in serious trouble, sent to have printed in the RECORD the want to get the economy moving again. and the national unemployment rate full text of Mr. Taylor’s op-ed. Rather than one- or two-year packages, we There being no objection, the mate- should be looking for permanent fiscal stands at 7.2 percent—the highest in 16 changes that turn the economy around in a years—with over 1.9 million people rial was ordered to be printed in the lasting way. having lost their jobs in the last 4 RECORD, as follows: Pervasive. One argument in favor of ‘‘tar- months of 2008. Additionally, the num- [From The Wall Street Journal, Nov. 25, 2008] geting’’ the first stimulus package was that, ber of Americans filing first-time un- WHY PERMANENT TAX CUTS ARE THE BEST by focusing on people who might consume employment claims this month STIMULUS more, the impact would be larger. But the stimulus was ineffective with such targeting. matches the highest level in 26 years. (By John B. Taylor) Moreover, targeting implied that increased Housing starts decreased 15.5 percent The incoming Obama administration and tax rates, as currently scheduled, will not be in December compared to the prior congressional Democrats are now consid- a drag on the economy as long as increased month. For 2008, housing starts were at ering a second fiscal stimulus package, esti- payments to the targeted groups are larger a new low, shattering the previous mated at more than $500 billion, to follow than the higher taxes paid by others. But in- record of 1.014 million set in 1991. the Economic Stimulus Act of 2008. As they creasing tax rates on businesses or on invest- The list goes on and on, and I don’t do, much can be learned by examining the ments in the current weak economy would first. have to tell any American of the eco- increase unemployment and further weaken The major part of the first stimulus pack- the economy. Better to seek an across-the- nomic challenges we face and the real age was the $115 billion, temporary rebate board approach where both employers and suffering that is going on throughout payment program targeted to individuals employees benefit. America. In the last year alone, due to and families that phased out as incomes Predictable. While timeliness is an admi- the mortgage crisis, the Government rose. Most of the rebate checks were mailed rable attribute, it is only one property of has seized control of Fannie Mae and or directly deposited during May, June and good fiscal policy. More important is that Freddie Mac, and we already passed a July. policy should be clear and understandable— The argument in favor of these temporary massive $700 billion rescue of the finan- that is, predictable—so that individuals and rebate payments was that they would in- firms know what to expect. cial markets. We have debated giving crease consumption, stimulate aggregate de- Many complain that government interven- the big three auto manufacturers tens mand, and thereby get the economy growing tions in the current crisis have been too er- of billions in taxpayer money as a again. What were the results? The chart ratic. Economic policy—from monetary pol- ‘‘short-term infusion of cash,’’ knowing nearby reveals the answer. icy to regulatory policy, international policy they would be back for more. The upper line shows disposable personal and fiscal policy—works best if it is as pre- Last week, the House approved its income through September. Disposable per- dictable as possible. $819 billion stimulus package on a sonal income is what households have left Many good fiscal packages are consistent after paying taxes and receiving transfers with these principles. But what can Congress party-line vote. The total cost of that from the government. The big blip is due to and the incoming Obama administration do legislation is almost as much as the the rebate payments in May through July. to give the economy a real boost on Jan. 20? annual discretionary budget for the en- The lower line shows personal consumption Here are a few fairly bipartisan measures tire Federal Government. We need to expenditures by households. Observe that worth considering:

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This would be a significant In order to comply with the Congres- stimulus to the economy, because tax-rate tion of which we are participants in increases are now expected on a majority of sional Budget Resolution, the com- trade agreements. small business income, capital gains income, mittee report contains a statement of If there are specific violations, then and dividend income. how the emergency provisions con- those violations should be addressed. Second, enact a worker’s tax credit equal tained in the bill meet the criteria for But I wanted to emphasize, if we pass to 6.2% of wages up to $8,000 as Mr. Obama emergency spending. The report states, these ‘‘Buy American’’ provisions, you proposed during the campaign—but make it and I quote: will find other nations retaliating and permanent rather than a one-time check. The bill contains emergency funding for Third, recognize explicitly that the ‘‘auto- you will find us on a sure but unfortu- fiscal year 2009 for responses to the deterio- matic stabilizers’’ are likely to be as large as nate path to the exacerbation of our rating economy, natural disasters and for 2.5% of GDP this fiscal year, that they will other needs. The funding recommended here- economic difficulties. That is a matter help stabilize the economy, and that they in is related to unanticipated needs and is of history. Consult any historian. I should be viewed as part of the overall fiscal for situations that are sudden, urgent, and hope we will not keep these ‘‘Buy package even if they do not require legisla- unforeseen, specifically the devastating ef- American’’ provisions in whatever leg- tion. fects of the economic crisis, natural disas- Fourth, construct a government spending islation we arrive at. ters and rising unemployment. plan that meets long-term objectives, puts This bill contains protectionist ‘‘Buy the economy on a path to budget balance, Perhaps the authors of the bill can America’’ provisions that will prove and is expedited to the degree possible with- explain to me how $150 million for hon- harmful to both the American worker out causing waste and inefficiency. eybee insurance falls within the dis- and the world economy. The Senate Some who promoted the first stimulus tinction as outlined in the legislation. package have reacted to its failure by saying version of the stimulus bill goes be- Someone needs to explain to me how yond the stark protectionism of its that we must now switch to large increases giving tens of millions of dollars to the in government spending to stimulate de- House counterpart in a way that risks mand. But government spending does not ad- National Endowment of the Arts or the serious damage to our economy. The dress the causes of the weak economy, which Smithsonian Museum will reverse ‘‘the Senate bill requires that major has been pulled down by a housing slump, a devastating effects of the economic cri- projects funded in the bill favor Amer- financial crisis and a bout of high energy sis.’’ ican-made steel, iron, and manufac- prices, and where expectations of future in- The problem is we are accumulating turing over goods produced abroad. come and employment growth are low. debt that we are laying upon future The theory that a short-run government These anti-trade measures may sound generations of Americans. We are going welcome to Americans who are hurting spending stimulus will jump-start the econ- to have to pay this debt sometime. My omy is based on old-fashioned, largely static in this economy and faced with the Keynesian theories. These approaches do not great worry is that if we do not ac- specter of layoffs. The United States, adequately account for the complex dynam- count for this debt in some way, if we after all, produces the world’s finest ics of a modern international economy, or continue trillions of dollars of unneces- products. Yet shortsighted protec- for expectations of the future that are now sary and wasteful spending, then obvi- tionist measures risk greatly exacer- built into decisions in virtually every mar- ously we will find ourselves back in the ket. bating our current economic woes. Al- situation we were in the 1970s, when we ready, one economist at the Peterson Mr. MCCAIN. Now, one of the unfor- had hyperinflation and had to debase Institute for International Economics tunate things, and this is beginning to the currency. has calculated that the ‘‘Buy Amer- be appreciated by the American people, I want to say a word for a minute ican’’ provisions in this bill will cost is that Members of Congress couldn’t about ‘‘Buy American.’’ The next time more jobs than it will generate. Some resist the temptation to load this bill I come to debate on the ‘‘Buy Amer- of our largest trading partners, includ- with hundreds of millions of dollars in ican’’ provisions, I intend to bring a ing Canada and the European Union, unnecessary spending, that will not do picture of Mr. Smoot and Mr. Hawley, have warned that such a move could in- anything to stimulate the economy. the two individuals who were respon- vite protectionist retaliation, further We all know some of these, but they sible, in the view of historians, for tak- harming our ability to generate jobs bear repeating, that have been included ing a country that was in a serious re- and economic growth. under the guise of stimulus: $400 mil- cession into the depths of one of the lion for STD prevention; $600 million great depressions in the history of the We have seen this tendency before. In for new cars for the Federal Govern- United States. the 1930s, as depression swept the ment; $34 million to remodel the Com- Because as we enact protectionist globe, countries around the world en- merce Department headquarters here measures, I was interested to hear my acted protectionist legislation in a in our Nation’s Capital; $25 million to friend from North Dakota, Senator counterproductive effort to preserve rehabilitate ATV trails; $150 million DORGAN, say it was not in violation of jobs at home, at the expense of those for honeybee insurance; $75 million for any treaty. It is in violation of several abroad. It was a fool’s errand, and the smoking cessation; and $50 million for treaties. It is in violation of what has result was the largest and most pro- the National Endowment for the Arts. been an important aspect of America’s longed economic downturn of the 20th There is no doubt all of those are policy which has been free and open century. We know better now, and we worthy causes which probably deserve trade. must have the foresight and the cour- our attention, our care and, some- I guess the fundamental difference I age to do what is right. times, our dollars. But to portray them have between the authors of the ‘‘Buy I am very concerned about the poten- and others as a stimulus to create jobs American’’ provisions and myself is tial impact these ‘‘Buy America’’ poli- and to have our economy recover, I that I believe the most productive, the cies will have on bilateral trade rela- think flies in the face of reality. most innovative, and the strongest and tions with our allies. From a philo- In the Senate bill, we have $100 bil- best workers in the world reside in the sophical point of view, I oppose this lion to assist States with agricultural United States of America, that the in- type of protectionist trade policy, not losses; $300 million for diesel emission novations and technology that have led only because I believe free trade to be reduction grants; $150 million for facil- the world have come from the United an important means of improving rela- ity improvements at the Smithsonian States of America, and that our prod- tions among all nations, but it is essen- Museum; $198 million for school food ucts can compete anywhere in the tial to U.S. economic growth. More- service equipment; and $2.9 billion for world under free and open trade condi- over, from a practical standpoint, the the weatherization assistance program. tions. added ‘‘Buy America’’ restrictions in There is also $6 billion of wiring for Now, there have been violations on this stimulus bill could seriously im- broadband and wireless in rural areas. I the part of other countries. That is pair our ability to compete freely in have always been an advocate of that. why we are members of the WTO. That the international markets and could But the fact is, anyone who is knowl- is why there are provisions in the also result in loss of existing business edgeable of the difficulties and chal- North American Free Trade Agreement from long-standing trading partners.

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DOL’s inspec- ment insurance benefits, extend food with American-made defense products. tor general submitted a report to Con- stamps, unemployment insurance bene- In fact, a Department of State study gress that noted that a contractor fits would be made tax free, and train- reported that U.S. defense companies hired by DOL found ‘‘one or more er- ing and employment services for dis- sold more weapons and defense prod- rors in nearly 100 percent of the wage located workers would be provided at ucts and claimed a larger share of the reports we reviewed.’’ The error rates the cost of $50 billion. world market than was previously real- were high even after a more than $20 There would be housing provisions. ized. This study shows U.S. exports of million effort to fix the surveys. In ad- Let me emphasize to my colleagues defense products increased to nearly dition to outright errors, the inspector what we all know: It was the housing $49 billion in 2006, comprising nearly 70 general noted that DOL used faulty crisis that began this conflagration and percent of global exports. This number methodology from unscientific surveys it will be the stabilization of home val- continues to rise steadily. Further- that led to bias, and even the data it ues that ends it. more, I believe that competition and did collect was untimely and, there- My friend from Nevada here and oth- open markets among our allies on a re- fore, suspect. ers have been working hard to try to ciprocal basis would provide the best The Davis-Bacon Act is an outmoded, address the housing crisis. In our re- equipment at the best prices for the depression-era, inflationary policy spective States, obviously, the housing taxpayers and U.S. and allied mili- that, according to recent estimates, crisis is of the utmost severity, as it is taries alike. will inflate the construction costs of throughout the country. But in high- Congress can continue to protect this bill by $17 billion. If we are trying growth areas of the country such as U.S. industries from foreign competi- to create new jobs then we should re- ours, it is even more severe. We have tion for selfish, special interest rea- peal Davis-Bacon, not encourage its ex- seen even more dramatic reductions in sons, or we can loosen these restric- pansion in this bill. Davis-Bacon im- home values. tions to provide necessary funds to en- poses heavy regulatory burdens and un- So our primary goal, my friends, is sure our economy can return to the necessary costs on Government con- that we must stabilize home values if strength it once had. ‘‘Buy America’’ tractors—not to mention the taxpayers we are going to reverse this deep and policy in defense spending is particu- who have to foot the bill for the in- precipitous slide we are seeing and the larly harmful and costly. Every dollar flated costs. Furthermore, Davis-Bacon difficulties we are experiencing in our we spend on archaic procurement poli- makes it more difficult for entry level economy. cies, like ‘‘Buy America,’’ is a dollar job seekers, the unemployed, and the Among other proposals, $11 billion we cannot spend on training our unskilled to obtain work. would require the Federal Government troops, keeping personnel quality of A recent study noted that ‘‘contrary to allocate funding to increase the fee life at an appropriate level, maintain- to its purpose, the Davis-Bacon Act that servicers receive from continuing ing force structure, replacing old and distorts construction labor markets. a mortgage and avoiding foreclosure worn-out weapon systems, and advanc- Davis-Bacon wages bear little relation from a one-time fee of $1,000 up to $60 ing our military technologies. It is my to market wages, because the Govern- per month for the life of the loan. sincere hope that legislative provisions ment’s prevailing wage estimates are Safe harbor provisions remove the like ‘‘Buy America’’ in the stimulus wildly inaccurate. In some cities, legal constraints inhibiting modifica- bill are dropped and that Congress will Davis-Bacon rates are much higher tions; tax incentives for home pur- end once and for all the anticompeti- than market wages. In Long Island, chases; the tax credit in the amount of tive, antifree trade practices that en- New York, for example, market rates $15,000 or 10 percent of the purchase cumber our Government, the military, for plumbers are $29.68 an hour. Davis- price, whichever is less, with the op- and U.S. industry. Bacon rates, however, are $44.75 an tion to utilize all in 1 year, or spread In addition to the ‘‘Buy America’’ hour, 51 percent more than what the out over 2 years, and GSE and FHA language contained in both the House markets demand. In other cities, conforming loan limits. This cost and Senate stimulus bills, other policy Davis-Bacon wages are significantly would be around $32 billion. provisions have been included in this below market rates. For instance, We should invest in our national in- legislation. Many of these items are Davis-Bacon rates for carpenters and frastructure and defense. We should nothing more than typical policy riders plumbers in Sarasota, FL, are $6.55 an spend $9 billion to improve, repair, and that will do nothing to stimulate the hour, a figure below Florida’s min- modernize Department of Defense fa- economy and create jobs. Most are par- imum wage of $7.21. Nationwide, Davis- cilitates, restore and modernize bar- tisan provisions that were added to Bacon rates average 22 percent above racks, improve facilities and infra- this bill because it is considered to be market wages and inflate the cost of structure directly supporting the readi- ‘‘must-pass’’ legislation. They should Federal construction by 10 percent.’’ ness and training of the Armed Forces, not be included in any type of stimulus Mr. President, decent, livable wages and invest in the energy efficiency of legislation and should instead go are important for every American—but Department of Defense facilities. This through the regular legislative process imposing harmful, outdated Davis- activity would generate construction and subjected to necessary debate. Bacon requirements on Federal con- and craftsmen jobs in the short term Some examples of these policy riders struction projects will do nothing more by addressing deteriorating conditions include requiring the Transportation than bloat the cost of this bill, sup- of existing facilities for projects that Security Administration to buy 100,000 press new construction hires, and de- are ready to be carried out in the next employee uniforms from U.S. textile press the economy. 9 months. plants, legislation to give Federal I want to say a few words about the As to the resetting our combat workers new whistleblower protec- proposal that I and a group of other forces, the Department of Defense will tions, and legislative language favoring Senators have presented today and will be requesting emergency supplemental open access, or net-neutrality, that be proposing as we go through this de- appropriations in the spring of 2009 to telecoms have long opposed. bate. Basically in the category of support the operations in Iraq and Af- Additionally, both bills contain taxes, it would eliminate the 3.1-per- ghanistan. Inclusion of this in the wasteful Davis-Bacon provisions that cent payroll tax for all American em- stimulus accelerates those require- mandate artificially high wage rates, ployees, lower the tax bracket from 10 ments and will be used to place new or- based on faulty data, for its Federal percent to 5 percent, lower the 15-per- ders or to repair vehicles, equipment, construction spending. These rates are cent tax bracket to 10 percent, lower material, ammunition required to fully determined by the Secretary of Labor corporate tax brackets from 35 to 25, equip our combat units, while gener- to be the prevailing wages in the geo- lower tax brackets to 25 from 35 to ating jobs on assembly and manufac- graphic locality of the project for simi- small businesses, and help provide for turing lines around the country.

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I don’t see why it us who have visited our military in- The American people have been dissat- should be separated. stallations know there are facilities isfied with the results, and Members of More importantly, the legislation be- that need to be modernized, restored, this body have been as well. In the first fore this body a year ago providing for and new construction. We propose $70 round of $350 billion, it seemed that the bonus depreciation inadvertently, in- billion for road and bridge infrastruc- priorities seemed to change literally on correctly omitted the film industry ture, road and bridges on Federal land, a daily or weekly basis. from all other industries. One might public transit and airport infrastruc- It became unclear as to exactly what ask why that happened. Basically, I ture and improvements, and $1 billion that $350 billion was going to do, and, will not get into the personal reasons for a small business loan program. The apparently, if you look at all of the why it happened, but there was a cer- total estimated cost for investing in statistics, it has not resulted in signifi- tain House Member who personally de- our infrastructure: $88 billion. cant improvement. cided he had an issue with the film in- Finally, we need to require these Now, what would have happened dustry, so he took it out for no good spending programs in the stimulus bill without it will be a matter of conjec- reason. be sunset 3 years from enactment. If ture and analysis by economists and What I am saying is that this is not this spending is intended to restore our historians. Now we are in the second putting a new industry back in the bill that would be entitled to bonus depre- economy and jump-start it, once the round. Now we are told there may need ciation. It corrects a mistake where economy is jump-started and restored, to be more, another TARP, after we the film industry was incorrectly then we should not have to continue pass this stimulus legislation and an taken out in the last bonus deprecia- this spending and increase the size of omnibus appropriations bill. tion bill and was taken out for no good our debt and lay it on future genera- When we start totaling that, we are reason—taken out for a very personal tions of Americans. talking about several trillion dollars, This proposal states that after two and we can’t continue that without the reason, if I may be totally candid. It consecutive quarters of economic American people experiencing some seems to me we should get back to a level playing field and treat all indus- growth greater than 2 percent of infla- tangible results. Most Members of this tries the same, not bring a vendetta tion-adjusted GDP, the following con- body are in agreement. We need to against one industry, as was the case a trol mechanisms will trigger to reduce stimulate and jump-start the economy. year ago, but, rather, put this back in the deficit and promote long-term eco- Let’s not do it in such a way that our because it is only fair. That is an nomic growth: All spending provisions children and grandchildren pay for it in American industry too, and this bonus in the economic stimulus legislation the most painful and difficult manner. depreciation would apply only to films where funds have not been spent or ob- We owe that to them. produced in the United States. It seems ligated will be cancelled and perma- I yield the floor. eminently fair to put back in a portion nently rescinded. The budget baselines The PRESIDING OFFICER. The Sen- ator from Montana. of the bonus depreciation bill that was shall be adjusted downward to ensure incorrectly taken out a year ago. That that all spending in the stimulus, Mr. BAUCUS. Mr. President, I would like to tell Senators what the lay of is what this is. This is not adding an whether spent or cancelled, is treated earmark; it is putting back something as a one-time expenditure and not as- the land is and share my thoughts on how the afternoon will proceed. Sen- that was wrongly taken out. sumed to be repeated. At this point, I will include for the What a lot of Americans do not know ator MURRAY offered the first amend- RECORD a letter from the Director of ment. Then we turned to a Coburn is every time we add a spending provi- the Office of Management and Budget amendment regarding the manufacture sion, that becomes part of the baseline, regarding the bill before us. Director of films. That is pending. Next we which assumes that that money will be Orszag lays out the urgency of passing spent over time. We cannot continue turned to an amendment by Senator this legislation. that indefinitely. We propose a 2-per- MIKULSKI regarding autos. That also is We are losing jobs fast. As somebody cent across-the-board reduction in pending. Next we expect another Re- pointed out the other day, the number spending, with the goal of balancing publican amendment. We have actually of jobs lost on that day was the exact the budget by 2015. been going back and forth with some of same number of people who were in the We should establish two separate en- the bigger amendments. Then the Re- stadium watching the Super Bowl. titlement commissions, one to make publican amendments have been com- That number of jobs was lost that day. recommendations on systems and the ing in, alternating back and forth. That is that day. Then there is the other Medicare-Medicaid. We all know Next we expect an amendment by Sen- next day and the next day. We are los- the elephant in the room is Social Se- ators BOXER and ENSIGN regarding re- ing jobs. curity and Medicare, and the unfunded patriation, then a Republican amend- This legislation is sorely needed. Is it liabilities associated with it. We should ment, then an amendment by Senators perfect? No. Is anything around here also require recipients to disclose costs FEINGOLD and MCCAIN regarding ear- perfect? No. But it is probably pretty for awarded projects, prohibit stimulus marks. We hope to have several votes good. The alternative is much worse. If funds from being used for lobbying ac- on these amendments today and will we don’t pass it, clearly many. more tivities, political contributions, holi- consult with leaders as to timing. jobs will be lost. We will be in a much day parties, unnecessary renovations, Once again, I urge Senators to let the worse situation than we are today. and questionable travel. managers know your intentions be- I ask unanimous consent to have the We should spend some more money cause we want to give Senators notice Director’s letter printed in the RECORD. on accountability, transparency, over- of what subjects are coming. If we There being no objection, the mate- sight, and results. We should create a don’t have notice, it will delay us. rial was ordered to be printed in the recovery and accountability and trans- Please give us as much notice as pos- RECORD, as follows: parency board with a Web site, create a sible. There will likely be opportunity EXECUTIVE OFFICE OF THE PRESI- Congressional oversight panel, estab- to vote on amendments, but we just DENT, OFFICE OF MANAGEMENT lish a recovery and reinvestment over- need to know what is in those amend- AND BUDGET, sight board composed of Federal agen- ments. I thank Senators for their co- Washington, DC, February 3, 2009. cy heads, require review and audits by operation. Hon. MAX BAUCUS, the Comptroller General on the bill’s Just a word or two about the amend- Chairman, Committee on Finance, United States Senate, Dirksen Senate Office Building, effectiveness in achieving economic ment offered by the Senator from Washington, DC. and workforce recovery goals, and es- Oklahoma. His amendment strikes a DEAR CHAIRMAN BAUCUS: The economy tablish a special inspector general provision of the bill relating to the faces its most serious crisis since the Great

VerDate Nov 24 2008 02:42 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.037 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1395 Depression, and the economic recovery pack- structure so that the United States can en- proposal. That group needs to be con- age being considered on the floor of the Sen- hance its long-term growth and thrive in the gratulated for putting such a proposal ate is an essential step in putting the econ- 21st Century. together. omy back on a path to growth. This begins with putting the nation in po- I rise because the most deliberative Last week, we learned that gross domestic sition to lead in the clean energy economy. product shrank by 3.8 percent in the fourth The President wants to make investments body in the world is facing a moment quarter of 2008, the largest decline in 26 that will double our renewable energy gener- of great challenge but also great possi- years. According to the Bureau of Labor Sta- ating capacity, modernize and expand our bility. We should all feel the grave re- tistics, more jobs were lost last year than nation’s electrical grid, and undertake the sponsibility weighing on each of us as were lost in any calendar year since 1945. If largest program to weatherize homes in his- we debate this bill. If we pass legisla- nothing is done, many outside experts esti- tory. tion that truly stimulates the econ- mate that the unemployment rate could On health care, the President believes that omy, it could carry this Nation to new reach double digits, and our economy would we need to move immediately to lower costs levels of growth and prosperity. Unfor- fall $1 trillion short of its capacity each and expand coverage. That would entail not year—a shortfall that translates into about only protecting coverage for millions of tunately, if we pass a bloated spending $12,000 in lost income on average for a family Americans during these difficult times, but bill with little chance of jump-starting of four. The American Recovery and Rein- also modernizing our health care system for the economy, we could delay this coun- vestment Act is a well-crafted response to the future with a serious commitment to try’s financial recovery for many years our economic difficulties since it will both health care information technology systems to come. jumpstart the economy in the near term and prevention efforts. While there isn’t a crystal ball to (and thereby help to mitigate some of the job As the global economy becomes more com- show us what path will bring us to the losses and income declines that would other- petitive, the President believes that invest- wise occur) and make key investments that ultimate goal, we are not without some ing in education is the best way we can help guidance. Winston Churchill once said: will promote long-term growth. our children succeed. He wants the recovery As you consider the American Recovery package to renovate and modernize 10,000 Those who fail to learn from history and Reinvestment Act this week, I wanted to schools so our children have libraries and are doomed to repeat it. We have sev- lay out the principles that guide the Presi- labs in which to learn; make college more af- eral examples from which to learn. We dent as he considers the type of plan that the fordable through finding the shortfall in Pell will heed those lessons if we absolutely country needs—principles that both the Grants and a new higher-education tax cut; want to raise this Nation from the eco- House legislation and the legislation you are and triple the number of fellowships in nomic quicksand that is swallowing it considering meet. science to spur the next generation of inno- First, it is critical that we jumpstart job up more and more each day. vation. creation with a direct fiscal boost that will The Great Depression is a chapter of The President also believes that we need to help to lift the nation out of this deep reces- history that fewer and fewer Ameri- rebuild and retrofit America for the demands sion. The plan should bolster economic ac- of the 21st Century. This will entail repair- cans can recall firsthand. Maybe that tivity sufficiently to save or create three to ing and modernizing roads and mass transit is why the circumstances are so widely four million jobs by the end of 2010. The plan options across the country as well as expand- misunderstood today. It has been said you are considering is estimated to meet this ing broadband access so that businesses all that today’s economic crisis is the re- standard. across our nation can compete with firms Critically important to jumpstarting the sult of a perfect storm. Well, the Great from all over the world. economy is reviving the housing sector. That Depression was many perfect storms. Finally, we need to recognize that this re- is why in the coming days, the President and Herbert Hoover, a Republican, did covery and reinvestment plan is an extraor- Secretary Geithner will be releasing a com- not sit on the side lines, as many peo- dinary response to an extraordinary crisis. It prehensive proposal to strengthen and rein- should not be seen as an opportunity to ple believe, when Black Thursday and vigorate this part of the economy. Their plan abandon the fiscal discipline that we owe Black Tuesday struck in 1929. He was will build on the $50 billion to $100 billion each and every taxpayer in spending their actually a big government interven- commitment to the housing sector made by money—and that is critical to keeping the tionist. Working with Congress, he the Director of the National Economic Coun- United States strong in a global, inter- cil in connection with the Senate’s decision raised taxes. He enacted protectionist dependent economy. Although it is not fea- last month to permit additional TARP fund- laws by raising U.S. tariffs. Senator sible to avoid any spillover whatsoever of the ing. By boosting economic activity in the MCCAIN referred to these as the Smoot- recovery package on out-year spending, the short-term, the recovery package itself will Hawley Tariff Act. He pushed all levels Administration believes that the package have a significant and immediate impact on should minimize such effects on out-year of government to invest in infrastruc- the housing and construction sectors. In ad- spending as much as possible. Furthermore, ture and expand public works projects. dition, the recovery package also includes the President is committed to paying for any When Franklin Roosevelt took office some promising ideas to create incentives extension of the temporary tax cuts included in 1932, he created great momentum by for individuals to purchase homes which also in the recovery plan that he would like to will help the housing sector. The Adminis- earning the confidence of the American make permanent, and will detail the manner tration supports these provisions, while be- people. But his New Deal sent this Na- of doing so in his budget submission. lieving that any major new housing meas- tion into an even deeper economic de- Moving forward, we need to return to the ures should be considered only after the re- pression. In the late 1930s, there was a fiscal responsibility and pay-as-you-go budg- lease of the Administration’s comprehensive ‘‘Depression within the Depression.’’ eting that we had in the 1990’s for all non- proposal. The stock market did not return to Second, as the President has made clear, emergency measures. The President and his economic team look forward to working with 1929 levels for 25 years. he is adamant that all of the spending must While World War II pulled us out of be made with unprecedented levels of trans- the Congress to develop budget enforcement parency and accountability. He is deeply rules that are based on the tools that helped the Great Depression, there were still committed to making sure that every Amer- create the surpluses of a decade ago. Putting tremendous sacrifices being made by ican is able to know what is in this plan, can the country back on the path of fiscal re- all Americans. Some have argued that be confident that it will accomplish the sponsibility will mean tough choices and dif- the spending of the New Deal was not goals we set forth, and has the ability to ficult trade-offs, but for the long-term health aggressive enough. I couldn’t disagree hold Congress and the Administration ac- of our economy, the President believes that they must be made. more. On some levels, we are still pay- countable for their actions. The Administra- ing for the projects that began with the tion will post information online about how I look forward to working with you and your colleagues in the coming days to craft New Deal. this plan’s money is being spent and where The single biggest failure of the re- it’s going. In addition, he is insistent that a recovery package that embodies these the bill not include any earmarks or special principles and achieves these goals. sponse to the Great Depression is that projects. While many such projects may be PETER R. ORSZAG, the private sector was not encouraged worthy, this emergency legislation is not the Director. to grow this country out of its finan- proper vehicle for those aspirations. The PRESIDING OFFICER. The Sen- cial crisis. In fact, by injecting so Third, we need to recognize that focusing ator from Nevada. much money into the Government pro- only on the short term is part of why the Mr. ENSIGN. Mr. President, a couple grams, FDR created a competitor to economy is in such dire straits today. That of comments on the McCain proposal the private sector. This was a match is why as we address the pressing demands of lifting the economy out of a recession, we that several people are putting to- between David, the private sector, and also must look to the future and begin the gether. I have looked at it. I still need Goliath, the Government monster. This process of reinvesting in priorities like clean to study it a little more. But on the time, unfortunately, Goliath won. We energy, education, health care, and infra- surface, it is a responsible, balanced know that the policies of the New Deal

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Japan passed stim- root of the problem. My training in private sector. ulus bills for 10 straight years during veterinary medicine taught me that Instead, half of the so-called tax por- the 1990s. They wasted money on un- you don’t use a Band-Aid to treat a tion of this bill is just creative spend- necessary projects while letting insol- massive puncture wound. Ignoring that ing dressed up as tax relief. It gives tax vent banks be supported with Govern- problem to treat superficial injuries relief to people who do not even pay in- ment money. Does that sound familiar? does not help the patient survive. The come taxes. How are we relieving their What did that get them? Unmanage- economy is very much our collective tax burden if they do not have one? able, debilitating debt, and a decade of patient. It would ensure greater catas- In actuality, only $21 billion of this rising unemployment. trophe to put a Band-Aid on an initial trillion-plus dollar spending bill goes We cannot afford to ignore the les- wound that started this downward spi- to small businesses, the engine of our sons of history. The responsibility fac- ral—and that is the housing crisis. Un- economy. That equals less than three ing us during this crisis cannot be fortunately, the housing market is percent of this monstrous bill. This is overstated. We are bound by the Con- barely addressed in this so-called stim- supposed to be an economic stimulus stitution that empowers us to collect ulus bill. Most Americans would say it bill to create jobs and drive growth, taxes, borrow money, regulate com- is the first thing we need to heal. If we but less than three percent is dedicated merce, and provide for the general wel- make mortgages more manageable, to tax relief for small businesses which fare. We, however, are also bound by people can stay in their homes and our is where 80 percent of the jobs in the the responsibility to future generations economy can begin to rebuild. United States are created. How do we of Americans. To burden our children One proposal I have—a guaranteed 4- expect to stimulate the economy that and grandchildren with the kind of percent, 30-year fixed rate mortgage for way? That goes to show you how little debt we are talking about today should Americans would go a long way to ease input Republicans actually had in this give each of us reason to pause and pressure on family budgets. On aver- process. I hope that will change. consider the ramifications. age, more than 40 million creditworthy President Obama came to the Hill There is no doubt that the crisis fac- homeowners would save more than $400 last week with a message of bipartisan ing the financial markets, the housing per month. That makes a huge dif- cooperation. I have reached out to my sector, and families will require ex- ference to most families, and it would Democratic colleagues on several tax traordinary measures. There is perhaps target the problem of oversupply in the relief measures that they agree would no better illustration of the grave chal- housing market, something we cannot give a much needed boost to our econ- lenges facing the Nation than that of ignore. This is like a permanent tax omy. I hope these proposals have the the State of Nevada. At one time, peo- cut which economists believe is the opportunity to be voted on by all of my ple thought we were recession proof. best stimulus for our economy, not just Senate colleagues so together we can When Americans buckle down on a 1-year tax rebate. witness an economic revival. spending, a vacation to Las Vegas is no Another proposal that goes a long The first is a plan that I am very fa- longer in the cards. Jobs are lost, way to fixing the housing situation is miliar with. I worked with Senator homes are foreclosed, and it becomes one from Senator ISAKSON. It expands BARBARA BOXER to get it enacted into harder to ignore the half-finished con- the current homeowner tax credit to law several years ago. We called it the struction projects across southern Ne- $15,000 and covers all property and all Invest in the USA Act, and it lived up vada. home buyers, not just first-time home to its name. It brought $360 billion Here in the Senate, we are among the buyers. This would give a big boost to back into the United States in 2005 and few Americans with at least some level housing markets across the country. helped to retain or create more than 2 of job security—that is, of course, until So what else works? Limited spend- million jobs. It also produced more the next election. Most Americans are ing that makes our economy more effi- than $34 billion in various tax reve- living day to day, waiting to hear what cient as well as tax relief that provides nues. History has proven that reducing new massive layoff will be announced businesses and companies the addi- the tax rate U.S. businesses pay to re- and if it will hit them or someone in tional capital to retain and hire more turn money they made overseas pro- their family. It is a terrible feeling to employees. This will help to increase vides a tremendous return. One great have that much uncertainty in your their output and compete into the fu- example comes from California-based life. ture. That spending and tax relief Oracle. They used repatriated earnings The calls and e-mails I have received needs to happen soon—not next year or to defeat a German company in acquir- from constituents are heartbreaking. two years down the road. American ing a U.S.-based retail software firm. These are good citizens who have families cannot wait that long. This purchase allowed Oracle to keep worked hard, saved well, and contrib- I think we all must be prepared to those jobs and intellectual property in uted to their communities. They now make a sizable investment in order to the United States. Oracle has since find themselves in a place of despera- ensure a swift and successful recovery. grown its facilities in Georgia and Min- tion. Unfortunately, the bill before us does nesota by several hundred jobs. Mrs. Louise Cutler has lived in Clark not do that. Instead, it spends money Right now I am working with Sen- County, NV, for more than 17 years. on programs that cannot and will not ator BARBARA BOXER to add an updated Her husband and two grown children aid that recovery. While Pell grants, version of this legislation to the stim- who have degrees are unemployed. Lou- Head Start, and the National Endow- ulus package. Right now, the foreign ise lost her job with a mortgage com- ment for the Arts may be worthwhile subsidiaries of many U.S. companies pany more than a year ago. She is back projects in their own right, putting bil- are faring well overseas. Competitive at work now making about $20,000 less lions of dollars into them will not tax structures make it beneficial for than before. She has student loans to stimulate the economy. I have fought those companies to keep their money pay, has lost $120,000 dollars in the for Head Start for years, but I do not overseas. If they wanted to return the value of her home, and she wants to think it should be considered imme- money to the United States, the com- know how we are going to help her. diate stimulus. panies would have to pay up to a 35- My constituents—all of our constitu- The bill before us simply does not percent tax rate. That is not much of ents—are looking to us for leadership qualify as an economic stimulus bill, an incentive to bring income earned and solutions. and there is nothing immediate about overseas back to the United States. I believe we need to stimulate our it either. It is a laundry list of spend- The proposal Senator BOXER and I economy immediately. Government ing priorities with a token of tax relief. have put forward gives businesses the

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Unfor- because his State is going through a These funds must be used for capital tunately, we may be now dealing with terrible time—where we have a 9.2-per- investment, job creation and training, a forgotten generation; a generation cent unemployment rate and jobs being research and development, or U.S. debt who does not have a voice in the Sen- lost every minute, maybe you should reduction. Some economists predict ate. We need to stand up and say, ‘‘We look inside yourself and roll up your that this time around, the legislation cannot pass this kind of debt burden on sleeves and get to work with us. would inject as much as $565 billion to them.’’ ‘‘We cannot pass the kind of I find it extraordinary that after 8 back into the United States economy. high taxes on to those who are going to long years of Republican rule around This legislation is critical in order to be required to pay this debt.’’ here, where we saw the debt go from $5 get this country going again. It puts So, Mr. President, we need to act re- trillion to $10 trillion, and not a word capital back into U.S. banks which can sponsibly. We cannot put, as this bill from the other side about fiscal respon- then loan that money to people and get does, $200 billion into new entitlement sibility, with tax cut after tax cut to the economy going again. Another pro- programs. We cannot raise the baseline the wealthiest few, an unlimited posal that I introduced—and I thank as this bill will end up doing. We know checkbook for Iraq—no problem then. the chairman of the Finance Com- programs do not stop around here, so We did not hear speeches about the mittee for working with us on a com- we need to act in a much more respon- grandchildren and the great-grand- promise—deals with the cancellation of sibly manner than this bill does. children. Oh, no. All of a sudden, when indebtedness. My proposal would allow Yes, we want to act quickly, but the middle class is hurting, when the businesses to buy back their debt in there is a false deadline that has been working poor are hurting, when people are losing their homes—not the richest 2009 or 2010 without high tax con- put on this bill. There is still time. As of the rich; they are fine; they do not sequences. It would help firms we saw with TARP funds, when we do have mortgages—average families, sud- deleverage and also give financial firms things too quickly around here, we denly my friends on the other side that hold debt more liquidity. Here is make major mistakes. The false dead- come out with their charts: Oh, my how my bill works. Under current law, lines we put on this bill, I believe, are goodness, a trillion dollars of spending. if a company purchases its own debt at going to lead us down the wrong road. Well, we had a Presidential election a discount, it is required to pay income So let’s slow down. We do not get any about this issue, and I think it is safe tax on the amount of the discount. If a trial runs on this one. This bill is too to say the reason the results were as business owes $1 million but negotiates big. Let’s make sure we do this right. they were is because of this economy. I a discounted amount to its lender—say Let’s join, not as Republicans and do not think there is any pundit or $750,000 so that it does not default—it Democrats, but as Americans to get even anyone in the Senate who would would have to pay taxes on the $250,000 this right. argue otherwise. Remember the turn- difference. Mr. President, I yield the floor. ing point, when the Republicans said: Well, a lot of companies are strapped The PRESIDING OFFICER: The Sen- The fundamentals of our economy are for cash and have a large amount of ator from Montana. strong? Well, maybe they still feel that debt. They cannot afford to pay taxes Mr. BAUCUS. Mr. President, I ask way. Why don’t they come out and say on the difference. Instead of paying unanimous consent that at 4:15 p.m. that? They do not want to say that be- that tax, we are going to delay that for today, the Senate proceed to vote in re- cause it is so obviously ridiculous when 5 years. They would then have an addi- lation to the Coburn amendment No. we are losing 500,000 jobs a month. We tional 5 years to be able to pay the 109; that prior to the vote in relation to have lost more jobs in the last 2 taxes. This is going to help small and the Coburn amendment, there be 10 months than there are people who live large businesses across the United minutes equally divided and controlled in the State of Delaware. This is where States. I believe this proposal is going between Senators COBURN and BAUCUS we are. So instead of working together, to help improve the debt situation of or their designees; provided further our friends on the other side come out, many companies in the United States. that the time until 4:05 p.m. be for de- one after the other, with the same I thank the chairman of the Finance bate with respect to the Mikulski talking points: The Democrats are irre- Committee and Senator CONRAD for amendment No. 104, with the time sponsible. Well, I ask: Who is irrespon- working on this proposal. equally divided and controlled in the sible? People who want to work to ease So let me conclude. If we pass this usual form; that no amendments be in the pain of what is happening in our $1.3 trillion spending bill, which is order to either amendment in this country or people who brought us to what it started at, we are going to have agreement; that at 4:15 p.m. the Senate this point, giving tax cuts to the mil- trillion-dollar debts over the next sev- proceed to vote as specified above; that lionaires and the billionaires, and a eral years. This does not include an- upon disposition of the Coburn amend- war we never should have fought, and other $500 billion in TARP funds that ment, and prior to the second vote, now they find their fiscal soul. Secretary Geithner may be asking for. there be 2 minutes of debate, equally I am so disappointed. We have a We still have an omnibus spending divided and controlled in the usual President who has reached out to the bill to come before us. We still have form; that upon the use of that time, other side, and all we get are speeches military supplemental bills. Unfortu- the Senate proceed to vote in relation from talking points about why we nately, they are not just military bills. to the Mikulski amendment No. 104; shouldn’t act now. I will tell my col- Everything else gets Christmas-treed with the second vote 10 minutes in du- leagues, if this gets away from us, if we on top of it. We are talking trillions ration; and that the next Democratic can’t get the votes we need—we just and trillions of dollars. amendment be one offered by the Sen- need a couple of our friends on the I am looking at our Senate pages; the ator from California, Mrs. BOXER. other side of the aisle—then this is next generation to lead our country. The PRESIDING OFFICER. Is there going to be the party of Herbert Hoover Don’t we care about them? Don’t we objection? over there all over again, and people have a moral responsibility not to pass Without objection, it is so ordered. will come out in the streets, as they huge tax burdens on to them? Current The Senator from California. did during the Great Depression and calculations are, with the debt we are Mrs. BOXER. Mr. President, I am not said things about Herbert Hoover that running up, plus Medicare, Medicaid, going to speak about the amendment I I can’t repeat on this floor. People are and Social Security, they are going to plan to offer in the next hour or so. But hurting. They are two paychecks away have to pay close to a 90-percent tax I really have to respond to my friend, from losing their homes. In some com- rate if things are not changed. I do not Senator ENSIGN. Ironically, he and I munities in my State, one in four think that is fair to them. Here we just are offering an amendment together. homes is underwater and is being fore- pass debts on. I believe as a generation I have heard now several of my Re- closed. we are morally corrupt because we publican friends come to the floor with Now, is this bill perfect? Absolutely take whatever we want. the same comments over and over and not. There are things in this bill I

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But to ment. amendment is a bipartisan amendment. come down to this floor and suggest It would seem that one of the key What it does is actually create jobs or that we are rushing through an emer- things that has been emblematic of save jobs in the automobile industry. gency bill and that is wrong—it seems this recession we are in is the lack of The amendment is simple and it is to me to be coming from a list of talk- purchasing of durable goods; i.e., targeted and it is timely. My amend- ing points that don’t mesh with re- things such as cars have just fallen off ment simply says if you buy a pas- ality. So I hope we can change the tone precipitously, and therefore the jobs senger car, minivan, or light truck be- of this debate. supporting that industry have fallen tween November of last year and De- The American people spoke out in off precipitously. Here is the situation, cember 31 of 2009, you will get a tax de- November, and my friends on the other what we are seeing. duction for your State sales or excise side are becoming the party of no: No, This very simple amendment would tax and the interest on your loan. For we can’t do anything. No. And what do make interest payments on car loans the average consumer buying a vehicle they come up with? Tax cuts for the and sales excise taxes on cars tax de- of approximately $25,000, it would mean wealthy again. That is what got us in ductible for new cars purchased this a $1,500 incentive. this fiscal mess in the first place. We year. So you make that interest pay- Now, this is good for several reasons. want to give tax cuts, as we do in this ment tax deductible, the excise taxes First of all, No. 1, it really is prudent bill, to the middle class, to the working tax deductible, just this year. On an from a fiscal standpoint. The money poor. average car selling for $25,000, this pro- does not leave the Federal checkbook At this point, I would just say to my vision would save the purchaser about or the Federal Treasury unless it goes friends, look into your heart, look into $1,500. That is the proverbial lead on to a person who has actually bought a your soul, and look at reality. the target, talking to the consumer vehicle. So no money is spent or put I wish to say to my friend Senator and saying: If you are in the market into the economy unless it is actually MIKULSKI that I am proud to support for a car, you ought to do it this year used in the economy to buy a car, her amendment. because you have a one-time benefit of minivan, or light truck. I yield the floor. $1,500, which is significant, which is It stimulates jobs because when you The PRESIDING OFFICER (Mr. going to help you. We think this is an buy a car, it means, No. 1, somebody KAUFMAN). The Senator from Maryland amendment which will actually end up had to make it; No. 2, somebody had to is recognized. moving car sales, helping that indus- sell it, service it, and process the pa- Ms. MIKULSKI. Mr. President, a par- try, helping the automobile manufac- perwork to do it, and there had to be liamentary inquiry before the Senator turers and the whole industry of deal- suppliers to also make sure that vehi- from Kansas speaks. Under the unani- erships move us forward. cle was fit for duty. We have in our mous consent agreement, whose time is This is the sort of spending we need automobile industry 3 million people now being used? to see taking place because the lack of who are dependent on it up and down The PRESIDING OFFICER. The time economic activity is profound and the chain, from manufacturing to sales of the Senator from Maryland is being widespread. We have seen it particu- to maintenance. charged. larly in the auto industry, and the auto In my own home State, let’s take the Ms. MIKULSKI. Did the Senator industry is spread out amongst a num- automobile dealer. There are approxi- from California speak on my time as ber of States. My State has a major mately 700 dealers, and there are close well? GM plant and suppliers in it as well. to 3,000 dealers nationwide. Each dealer The PRESIDING OFFICER. The Sen- They are not selling any cars. You employs about 50 people, again, from ator is correct. can’t operate a place very long that the people who sell them to the people Ms. MIKULSKI. How much time do I way. who fix them. I have talked to people have remaining? This is a very targeted, time-specific in my own State. The automobile deal- The PRESIDING OFFICER. The Sen- provision. The provisions we have ers are, in some instances, the major ator from Maryland has 51⁄2 minutes re- talked about need to be temporary, employer in rural parts of my State. If maining. targeted, and really hit the measures, you talk to someone such as the auto Ms. MIKULSKI. I yield the time to and this one does all of that. mechanic, as I did in Bethesda, and Senator BROWNBACK to speak. I wish to also point out that in this other automobile mechanics, they are The PRESIDING OFFICER. The Sen- amendment—I know some people on proud of what they do. They fix those ator from Kansas is recognized. the Finance Committee are looking at cars. They have them road-ready. They Mr. BROWNBACK. Mr. President, I it and saying this is not something, see it as helping the environment, rise to speak in favor of the Mikulski- perhaps, that we have supported or put making sure people are safe in their ve- Brownback amendment in the limited forward. I would ask people in this hicles and getting value for their dol- amount of time we have. body to just look around at their own lar. We want these small businesses to There has been a lot of criticism on States and the car sales and the busi- stay afloat. the overall bill from my side of the nesses they have and the auto plants That is why I think the Mikulski aisle. A lot of it is merited. I really do they have and see if this is something amendment is so specific. It only ap- think this has been put together far that can really help those auto plants plies to the automobile industry. too hurriedly, and it would be much move forward and get some sales. No. 2, it is timely because it would better to follow the business of having So I urge my colleagues to support immediately go into effect, and it is committee hearings. In the Appropria- this amendment. targeted and limited because it will tions Committee, we had no hearings I reserve the remainder of the time only last until December 31, 2009. If you on this bill, and now we are moving for my colleague who has put forward really want to get America back on its forward with a $1 trillion bill. I don’t this amendment if she desires to speak wheels again and really help America think that makes much sense. I don’t any further for it while we have that get rolling again, supporting the Mi- think it is wise. I don’t think, looking time. kulski amendment will go a long way at the economic problems we are look- I yield the floor. to do that. ing at that could extend over a period The PRESIDING OFFICER. The Sen- Now, there are those who say: How of time, that it is wise to spend $1 tril- ator from Maryland is recognized. much will this cost the Treasury? I lion without having really thought Ms. MIKULSKI. Mr. President, I was just wish to bring to their attention about it. here when the Senator from California that doing nothing will cost our Treas- Be that as it may, the amendment I spoke. She didn’t realize it was on my ury: more expenditures on unemploy- am talking about and supporting with time, but the very gracious Senator ment; the possibility that one of our Senator MIKULSKI from Maryland is from Mississippi has yielded me a few manufacturers could go bankrupt and one of the sort of targeted pieces of the minutes of opposition time. throw this into pension guarantee,

VerDate Nov 24 2008 02:42 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.042 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1399 which would be a disaster; and in our about $4 billion. Those are direct infu- more jobs, millions more, will be lost. local communities, the heartbreak that sions into the industry. In addition, Congress is going—the economy is would result from a shuttered dealer- there is $2 billion in grants for the going to be closer to the Great Depres- ship in a small town on the Eastern manufacture of advanced batteries and sion of the 1930s. For that basic reason, Shore or in western Maryland would components, and there are other provi- let’s get this legislation passed at the really be devastating. It would hurt the sions as well. appropriate time. consumer and hurt consumer con- I am not in favor of the amendment. I suggest the absence of a quorum. fidence. I think there are better ways to help The PRESIDING OFFICER. The If you vote for the Mikulski amend- the auto industry. This is not the best clerk will call the roll. ment, supported by people on the other way, particularly given the cost. The bill clerk proceeded to call the side of the aisle, I believe we can really I yield the floor and suggest the ab- roll. get our economy going again. sence of a quorum. Mr. BAUCUS. Mr. President, I ask Mr. President, I yield the floor. The PRESIDING OFFICER. The unanimous consent that the order for The PRESIDING OFFICER. Who clerk will call the roll. the quorum call be rescinded. yields time? The bill clerk proceeded to call the The PRESIDING OFFICER. Without If no time is yielded, the time will be roll. objection, it is so ordered. equally charged to both sides. Ms. MIKULSKI. Mr. President, I ask Mr. BAUCUS. I ask unanimous con- Mr. COCHRAN. Mr. President, I sug- unanimous consent that the order for sent that the time during the quorum gest the absence of a quorum. the quorum call be rescinded. call be equally divided. The PRESIDING OFFICER. The The PRESIDING OFFICER. Without The PRESIDING OFFICER. Without clerk will call the roll. objection, it is so ordered. objection, it is so ordered. The bill clerk proceeded to call the Ms. MIKULSKI. I rise not for pur- Mr. BAUCUS. I suggest the absence roll. poses of debate but to add a cosponsor of a quorum. Mr. BAUCUS. Mr. President, I ask to my amendment. I ask unanimous The PRESIDING OFFICER. The unanimous consent that the order for consent that Senator WEBB, the Sen- clerk will call the roll. the quorum call be rescinded. ator from Virginia, be listed as a co- The bill clerk proceeded to call the The PRESIDING OFFICER. Without sponsor. roll. objection, it is so ordered. The PRESIDING OFFICER. Without Mr. COBURN. Mr. President, I ask Mr. BAUCUS. Mr. President, par- objection, it is so ordered. unanimous consent that the order for liamentary inquiry: Where are we? Mr. BAUCUS. Mr. President, I sug- the quorum call be rescinded. The PRESIDING OFFICER. The only gest the absence of a quorum. The PRESIDING OFFICER. Without time remaining on the Mikulski The PRESIDING OFFICER. The objection, it is so ordered. amendment is under the control of the clerk will call the roll. AMENDMENT NO. 109 Republicans. The bill clerk proceeded to call the Mr. COBURN. Mr. President, I want- Mr. BAUCUS. Mr. President, might I roll. ed to respond to some comments by the ask the Senator from Mississippi for 2 Mr. BAUCUS. Mr. President, I ask chairman of the Finance Committee. minutes? unanimous consent that the order for The explanation of why we have a $250 Mr. COCHRAN. Mr. President, if the quorum call be rescinded. million earmark for the movie indus- there is no one seeking recognition, I The PRESIDING OFFICER. Without try was that when we attempted to have no objection to yielding back the objection, it is so ordered. give them this earmark before, some- time, but I wouldn’t want to do it with- Mr. BAUCUS. Mr. President, I ask body took it out, and now we are going out consulting the distinguished Sen- unanimous consent to speak until Sen- to put it back. The consequence, how- ator from Maryland. ator COBURN arrives. He is due to arrive ever, belies the fact that we are only Mr. BAUCUS. I wish to speak for 2 in about a minute, at 4:05. When he ar- doing this for 1 year. If it is something minutes on the amendment. rives, I will turn it over to him. they deserve and it should be equal, Mr. COCHRAN. I have no objection. The PRESIDING OFFICER. Without why wouldn’t it be there every year? The PRESIDING OFFICER. The Sen- objection, it is so ordered. The second point is that the movie ator from Montana is recognized. Mr. BAUCUS. Mr. President, this is a industry gets to take advantage of Mr. BAUCUS. Mr. President, I deeply letter from the Executive Office of the every depreciation out there that every appreciate the Senator from Maryland President, Peter Orszag, basically stat- other business has. There was some de- offering an amendment. Just a couple ing the economic need for this legisla- bate in the House last year on whether of points. I am not going to make a big tion. I will read it in part: they were truly manufacturers. But deal out of it. This amendment will Last week, we learned that domestic prod- they also now have $15 million for cost about $11 billion. It reminds me of uct shrank by 3.8 percent in the fourth quar- every movie in direct writeoffs above several years ago when Congress elimi- ter of 2008, the largest decline in 26 years. their depreciation if they produce 75 nated the interest deduction, consumer . . . more jobs were lost last year than were percent of those costs in this country. interest deduction. Why? Because there lost in any calendar year since 1945. . . . The If they do it in a low employment area, is so much consumer debt that is build- American Recovery and Reinvestment Act is they get another $20 million. To say we ing up at such a rapid rate. The total a well-crafted response to our economic dif- are righting something that was wrong consumer debt now is about $2.5 tril- ficulties. before doesn’t fit with common sense. lion. As a percentage of GDP, it is . . . it is critical that we jumpstart job cre- ation with a direct fiscal boost that will help If we are righting it, let’s put it in for- about 18 percent. There is a concern to lift the nation out of this deep recession. ever—if that is what we are trying to that this method, this way to help a The plan should bolster economic activity do. But in this bill we do it for 2009 specific industry is one which is going sufficiently to save or create three to four only. to add a lot of additional consumer million jobs by the end of 2010. The plan you The second point I will make is that debt. It is also very costly debt at a are considering is estimated to meet this this bill is without any sacrifice. When time when debt is becoming a problem standard. President Obama was elected, one of in this country, public debt as well as Mr. President, I will not ask unani- the things he campaigned on was an corporate debt, but also consumer debt. mous consent to print the letter in the item-by-item look at the Federal budg- There are also other provisions here RECORD, because it has already been et, to get rid of programs that don’t which help the auto industry, which printed. I just wanted to read how work, get rid of lower priority pro- got about $13.4 billion in relief in the many jobs were being lost. grams that might work but are not ef- TARP legislation. Through that, the Again, this is not the perfect solu- ficient and are not a priority. 30-percent investment tax credit in this tion. By definition, it is not. All 535 Nowhere in this bill is there an elimi- legislation would help domestic auto Members of Congress have a different nation of one Government program— companies in developing advanced idea on how to do it, but this is a good not one. There is no line by line. There technology. In the TARP provisions, solution. The alternative is much is no attempt to do what we are asking GM gets $9.4 billion and Chrysler gets worse. If this legislation is not passed, Americans to do every day. Here is

VerDate Nov 24 2008 02:42 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.042 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1400 CONGRESSIONAL RECORD — SENATE February 3, 2009 what we are asking them to do: We are tries the same. Some industries are in Martinez Risch Thune in tough financial straits. Go through a loss position and some industries are McCain Roberts Udall (CO) McCaskill Sessions Webb your budget, figure out what you can- in a profit position. If a company is in McConnell Shelby Wicker not afford, and eliminate it. a loss position, there are other provi- Murkowski Snowe We have not done that at all with sions in the Tax Code—which, again, Pryor Specter this bill. There is no attempt to make all industries should be treated the NAYS—45 the Federal Government more effi- same. If you have a loss 1 year, you can Akaka Inouye Nelson (NE) cient. This bill is filled with bloating benefit from the provisions, with the Baucus Kaufman Reed bureaucracies, further lessening liberty loss carryback provisions, and the leg- Begich Kerry Reid Bingaman Klobuchar Rockefeller and freedom by way of having bureauc- islation has credits, carrybacks. Boxer Kohl Sanders racies decide what we will have to fol- Mr. COBURN. Mr. President, let me Brown Landrieu Schumer low. reclaim my time. The fact is, this is a Burris Lautenberg Shaheen I am not against the movie industry. Cantwell Leahy Stabenow tremendous advantage to them com- Cardin Levin Tester I love the movies they produce—the pared to other businesses. They already Conrad Lincoln Udall (NM) vast majority; some I abhor. But I have a program from which they get Dodd Menendez Vitter enjoy their entertainment and the fact $15 million. Then they can add another Durbin Merkley Voinovich Feinstein Mikulski Warner that they are profitable and viable. $20 million. The average cost for a film Gillibrand Murray Whitehouse They have been very successful this is less than 100 million bucks. We are Harkin Nelson (FL) Wyden last year. They had the best January in writing off $35 million out of the Tax NOT VOTING—2 their history. For us to put a quarter of Code immediately before this provision Gregg Kennedy a billion dollars into an earmarked tax even begins, and we are going to add benefit for the movie industry at a another quarter of a billion dollars this The amendment (No. 109) was agreed time when Americans are struggling year for just 2009, which would say we to. belies the honor and integrity of this are going to treat them differently AMENDMENT NO. 104 institution. than we treat everybody else in this The PRESIDING OFFICER. Under With that, I retain the remainder of country. the previous order, there will now be 2 my time and yield the floor. The PRESIDING OFFICER. Time has minutes of debate prior to the vote on The PRESIDING OFFICER. The Sen- expired. the Mikulski amendment. ator from Montana is recognized. Mr. BAUCUS. I ask for the yeas and The Senator from Maryland. Mr. BAUCUS. Mr. President, there nays on the amendment. Ms. MIKULSKI. Mr. President, the have been several characterizations of The PRESIDING OFFICER. Is there a time has now come to vote on the Mi- this provision. It is not an earmark. It sufficient second? kulski amendment that gives a tax break to people who go buy a car on is treating all industries in America There appears to be a sufficient sec- which they can take a tax deduction on the same, giving bonus depreciation to ond. all American industries. It is treating their interest and on their sales tax. It The yeas and nays were ordered. them all the same. actually creates jobs by having people The PRESIDING OFFICER. The Sen- A few years ago, this industry was buy a car, sell a car, service a car, and ator from Montana has 30 seconds re- taken out for inexplicable reasons. make a car. This bill puts them back in, in an at- maining. Three million jobs are at stake in the tempt to treat all industries the same. Mr. BAUCUS. Mr. President, a very automobile industry, and I urge the It makes no sense to take out one in- quick point. This section in the bill adoption of my amendment. dustry, when other industries get the does provide a $15 million writeoff, but The PRESIDING OFFICER. The Sen- benefit. It makes good sense to keep it that is for small films. Under the provi- ator from Iowa. in the bill so that all industries are sions of the bill, the bonus depreciation Mr. GRASSLEY. Mr. President, I treated the same. cannot be taken up at the same time as know the Senator from Maryland al- The Senator said this is 1 year, or a the expensing provision. You get one or ways thinks things through very well, short period of time. That is true for the other. but I am going to rise in opposition. I all industries in this bill. The bonus de- I yield back the remainder of my don’t do it easily. But this is a time preciation provision we are talking time. when we are in a recession. I know the about treats all industries equally, all The PRESIDING OFFICER. All time motivation is to help us get out of a re- for the same length of time. He sug- has expired. The question is on agree- cession, but we have a massive amount gests that if we put it in, why isn’t it ing to Coburn amendment No. 109. The of increase in consumer debt, and this permanent? He is probably right. A lot yeas and nays have been ordered. The is going to just encourage more con- of it should be permanent, but we have clerk will call the roll. sumer debt. to pay for some of this. That is why it The bill clerk called the roll. We have other things in the Tax Code is not made permanent, as other provi- Mr. DURBIN. I announce that the that help people who buy hybrid cars sions in the bill are not made perma- Senator from Massachusetts (Mr. KEN- and electric cars, and we have incen- nent. So if all industries are treated NEDY) is necessarily absent. tives for the automobile industry with- the same, the film industry is like the Mr. KYL. The following Senator is in TARP. So I have to oppose this, and auto industry and the steel industry, necessarily absent: the Senator from in opposing it, I will do it this way, by and other manufacturing industries; New Hampshire (Mr. GREGG). raising the point of order against the they are all the same. That is why this The PRESIDING OFFICER. Are there Mikulski amendment pursuant to sec- provision is in here, to correct a meas- any other Senators in the Chamber de- tion 201(a) of Senate Concurrent Reso- ure taken out a while ago—wrongly— siring to vote? lution 21 of the 110th Congress. which singled out an industry unfairly. The result was announced—yeas 52, Mr. President, I yield the floor. This puts it back in so everybody is nays 45, as follows: Ms. MIKULSKI. Mr. President, I treated the same. [Rollcall Vote No. 34 Leg.] move to waive the applicable sections Mr. President, I reserve the remain- YEAS—52 of the Budget Act, and I ask for the der of my time. Alexander Chambliss Graham yeas and nays. The PRESIDING OFFICER. The Sen- Barrasso Coburn Grassley The PRESIDING OFFICER. Is there a ator from Oklahoma is recognized. Bayh Cochran Hagan sufficient second? There is a sufficient Mr. COBURN. Mr. President, I ask Bennet Collins Hatch second. Bennett Corker Hutchison the Senator, if I am a manufacturer Bond Cornyn Inhofe The yeas and nays were ordered. and I don’t have $15 million that I can Brownback Crapo Isakson The PRESIDING OFFICER. The come up with in bonus depreciation, do Bunning DeMint Johanns question is on agreeing to the motion. I still get to write off $15 million? Burr Dorgan Johnson The yeas and nays have been ordered. Byrd Ensign Kyl Mr. BAUCUS. There is in this legisla- Carper Enzi Lieberman The clerk will call the roll. tion—first, this is treating all indus- Casey Feingold Lugar The legislative clerk called the roll.

VerDate Nov 24 2008 02:46 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.044 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1401 Mr. DURBIN. I announce that the In other words, 54 percent of the Amer- but they don’t want us to waste the Senator from Massachusetts (Mr. KEN- ican people are in agreement that this money. When we have a crisis on our NEDY) was necessarily absent. bill should not move forward as it is, hands, when they need help, to have us Mr. KYL. The following Senator is that it needs major changes. That is then just take the 8 years’ worth of necessarily absent: the senator from what Republicans are proposing with things we would love to do and haven’t New Hampshire (Mr. GREGG). the better ideas that we want to been able to get approval for yet and The PRESIDING OFFICER. Are there present during this debate. tuck them into this bill as spending any other Senators in the Chamber de- It is interesting as well that Inde- and call it stimulus is bad policy. siring to vote? pendents, who were queried by even Abraham Lincoln had a great saying: The yeas and nays resulted—-yeas 71, greater numbers, believe the bill either If you call a tail a leg, how many legs nays 26, as follows: needs major changes or should be re- does a dog have? Of course, the answer [Rollcall Vote No. 35 Leg.] jected outright. Fifty-six percent of is four. Calling it a leg doesn’t make it YEAS—71 Independents concur with that. Most a leg. That is the point. Calling these Americans said they think the stim- things stimulus doesn’t make them Alexander Feinstein Mikulski Bayh Gillibrand Murkowski ulus package either will not have any stimulus. They should not be in this Begich Graham Murray effect on their personal lives or will bill. Bennett Hagan Nelson (FL) have a negative effect on their personal There are other things that suggest Bond Hatch Nelson (NE) Boxer Hutchison lives. A mere 12 percent said it would the bill would not work. We have had Pryor experience with this before. The cen- Brown Inhofe Reed make their lives a lot better. That is Brownback Inouye Reid the point that many of us have been terpiece of the tax item in the bill is a Burr Isakson Risch making. People need something that tax rebate. Never mind that 26 percent Burris Johanns Roberts Byrd Kaufman will make their lives better. They are of the people who receive this tax re- Sanders Cardin Klobuchar bate don’t pay Federal income taxes. Schumer hurting all over this country. It is a Chambliss Kohl shame, when we have an opportunity The problem is, the same kind of tax Coburn Landrieu Shaheen Cochran Lautenberg Shelby to do something about it, to waste a rebate in the amount of $600 last year Collins Leahy Snowe trillion dollars that we do not have and did very little to stimulate the econ- Corker Levin Specter that our children and grandchildren omy, even though that is why it was Stabenow Cornyn Lieberman are going to have to pay back for some- done. All economists agree that some- Crapo Lincoln Tester Dodd Lugar Thune thing that will not achieve its objec- where between 10 and 20 percent of the Dorgan Martinez Vitter tives. money got spent, and the rest of it was Durbin McCain Webb What I would like to do is speak to plowed into savings. The reality is, Ensign McCaskill Whitehouse Feingold Menendez Wicker some of the problems with the bill that that is a good thing because Ameri- we believe will not work, will not stim- cans’ personal budgets are overlever- NAYS—26 ulate the economy, will not create aged just as our businesses are. People Akaka Conrad Merkley jobs, and some of the areas that are have far too much debt on their credit Barrasso DeMint Rockefeller simply wasteful Washington spending. cards, for example. They need to be Baucus Enzi Sessions Bennet Grassley Udall (CO) We have heard of some of these getting that debt paid down and begin Bingaman Harkin Udall (NM) items. Again, many of these items the saving a little more. So it is no wonder Bunning Johnson Voinovich bill spends money on have an argument they would take these tax rebates and Cantwell Kerry Warner for them. But it is our view they should put them in the bank or pay off a cred- Carper Kyl Wyden Casey McConnell go to the Appropriations Committee, it card rather than going out and and they should present these pro- NOT VOTING—2 spending. That is a good thing for them grams to compete with all of the other personally, and it is what we have to Gregg Kennedy programs which may also have degrees have happen for the recession to finally The PRESIDING OFFICER. On this of worthiness. When the Appropria- end. vote, the yeas are 71, the nays are 26. tions Committee says: Here is the top But in terms of stimulating spending, Three-fifths of the Senators duly cho- line of the budget for each of our Gov- it is not a good thing. It obviously does sen and sworn having voted in the af- ernment departments, then compete not stimulate spending. Martin Feld- firmative, the motion is agreed to. within that line for the program you stein, who actually testified before the Mr. DURBIN. I move to reconsider want to spend your money on. If you Finance Committee in favor of the last the vote. are worthy enough, then you will get stimulus, has now written that, of Ms. MIKULSKI. I move to lay that funded. If you are not, you won’t. This course, the experts who predicted it motion on the table. bill simply takes all comers and says: would not work were correct, it did not The motion to lay on the table was Let’s put it in a so-called stimulus bill, work. He is now very much of the view agreed to. whether it has any stimulative effect that we should not repeat that mistake The PRESIDING OFFICER. The or not. I will give a couple examples. in trying to stimulate the economy. question is on agreeing to amendment More cars for government employees; The problem is, we are talking about No. 104. this is another bailout for the auto in- well over $100 billion which, therefore, The amendment (No. 104) was agreed dustry. We are going to do trail main- will not achieve the purpose of stimu- to. tenance for ATVs. Maybe that is a good lation. The Senator from Arizona. idea. But that should probably compete So these are why, when the American Mr. KYL. Mr. President, I am not in the budget that ordinarily it would people see money being spent on things going to be laying down an amendment be funded from. I know one of my col- that have no business in this bill—it is at this time but, rather, speaking gen- leagues is very strongly committed to more wasteful Washington spending— erally about the legislation while an- the idea that we should provide some when they see huge amounts of money other amendment is being prepared. I funding for Filipino veterans of World going toward an effort to create jobs wanted to share some data that we be- War II who assisted our troops. That that would not do that, they scratch came aware of today, a new Gallup may be a very worthy objective, but their heads and say: Why are these poll, which confirms what some of us nobody can argue it belongs in this politicians in Washington wasting an thought, which is the more the Amer- bill. Those are folks in the Philippines. opportunity to help us? Why don’t they ican people see about this stimulus It is not going to create American jobs really get to something that will help bill, the angrier they are getting and or stimulate the American economy. us? the more they believe it is both waste- We could go on and on with other ex- There are things that can help. Re- ful and ineffective. It is interesting amples. The point is, this is more publicans have some better ideas about that only 38 percent of the American wasteful Washington spending. how to craft this legislation so it will people support this bill as written, American taxpayers are not against actually achieve the objective we want. while 54 percent say it needs major paying taxes, not against having the The bottom line is, rather than spend- changes or should be scrapped entirely. Government spend money if necessary, ing $1.3 trillion on this bill, we should

VerDate Nov 24 2008 02:46 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\CR\FM\A03FE6.011 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1402 CONGRESSIONAL RECORD — SENATE February 3, 2009 be providing tax incentives that will all heard about in the secondary mar- penditures here. They said: Ordinarily, create jobs. We should use the Tax ket, the so-called toxic assets backed we would support more money to sup- Code to encourage beneficial behavior by mortgage-backed securities, the port education, but this is a wasted op- to encourage people to work and save value of which nobody apparently can portunity to reform education so that and invest and create jobs. That leads figure out. we can actually use this new money to me to the next subject. If most of the people would refinance better benefit. Otherwise, we are sim- Our colleagues on the other side of their existing mortgages at a lower ply throwing more money at the prob- the aisle like to say that a significant rate, say, 4.2 percent, all of the holders lem. Part of the quotation from the percentage, maybe 36 percent, of this of those mortgages would be paid off. Washington post was we ‘‘will be wast- bill is taxes. Again, what is tax relief? They would all have cash. They could ing more than money.’’ What they I don’t think you can call tax relief re- either reloan it or they could prop up meant was the opportunity. There is an bates when they are scored by the joint their balance sheets. All of this would opportunity here to really do some legislative committee as spending. So be very helpful, and we would then good, and rather than just throw more we have a difference of opinion. Even if know exactly what is left. money at a problem, why don’t we take only a quarter of it is tax policy, what What is left are the toxic mortgages, advantage of the opportunity to really kind of tax policy is that? Mr. Presi- and there are other programs that will do something to reform it? dent, 2.3 percent of the amount of the be dealing with that. I believe the This gets me back to the point with total bill is spent on tax incentives for President’s Treasury Secretary, Sec- regard to how these bills should com- businesses so they can write off their retary Geithner, is poised to talk about pete in the appropriations process. We equipment purchases and so on that that next week. There are other plans have a process—it is well established in might conceivably enable them to hire the FDIC and others have. Certainly, the House and in the Senate—to deal more people. That is inadequate. One of the TARP funding that has been voted with competing appropriations. They our better ideas is to enhance those on is supposed to help go to those toxic go over these bills very carefully. Ordi- current provisions, expand them so assets, the people who are allegedly un- narily, they have to make some tough that more businesses will be able to derwater; that is to say, the value of choices, to say: This program will go hire more people and produce more and their home is less than the amount into the bill, and this one, unfortu- thus help us to get out of the recession. they owe on their mortgage. nately, is going to have to wait for an- There are a variety of ideas that will It is really a two-part problem. The other year or it is going to have to be be presented as amendments. One of Republican ideas are designed to get at reformed before we are going to spend them is an idea that some of our House that problem, the problem that caused the money. That regular-order process colleagues have: by simply reducing by this whole collapse in the first place. is what we should be using in this case. 7 percentage points the tax that small Most experts believe it has to be solved This bill creates something like 34 businesses pay, we believe significant before we can genuinely begin to work new Government programs. Now, those new jobs will be created because small our way out. two are the kinds of things that are businesses create the jobs. Big busi- There is another problem with the scrubbed carefully in the regular ap- nesses are trying to hold their own bill; that is, there is bad policy in this propriations process. Ronald Reagan right now, but they are losing jobs, and bill. For example, on the infrastruc- once said: The closest thing to immor- they have not been the job creators. It ture, we have Davis-Bacon require- tality in Washington is a new Govern- is the small businesses that have his- ments. This adds to the cost of all of ment program. Once created, it is aw- torically created jobs. We believe that these projects. I remember a few years fully hard to get rid of. reducing their tax liability just by this ago in the little town of Sierra Vista in Of course, there is a lot more manda- modest 7 points—talking about busi- southeast Arizona there was a facility tory spending in the bill, spending that nesses with 500 or fewer employees— to help women with dependent children allegedly exists for only 2 years, but you will have thousands and thousands or families that needed aid. If they had actually we know there is no way after of employers who will be able to buy built the structure to do this, they 2 years Congress is going to come back the new equipment, be able to market couldn’t afford it because of the addi- and cut. In fact, going back to the so- their product or in some way be tional cost that Davis-Bacon imposes called make work pay credit—this $500- incented to hire additional people. on wages to construct a building. So per-taxpayer rebate—most of the ex- That is how we create more jobs. they bought a mobile home instead, perts agree this temporary tax rebate We think we ought to focus on where and because they were buying a mobile is not going to change behavior and this problem started and where a sig- home, it wasn’t a construction cost. stimulate spending. nificant part of the problem remains, They saved thousands of dollars on the So what is the answer? Well, of and that is in housing. In fact, housing facility. course—wink, wink, nod, nod—it is values are continuing to decline. We Was it best to have a mobile home for really going to be permanent. Now, no- know the collapse in the housing mar- this facility? No, it wasn’t. They body wants to put that on paper be- ket is what started all of this. But should have had an actual building. cause the score, the cost, would be as- there is nothing that goes to the heart That is the problem with this par- tronomical. This body would be embar- of that problem which remains. ticular policy. I forget the amount of rassed to pass it, and it would not pass In Arizona, we continue to see hous- money that it cost, but it is signifi- it. But once it is in there for 2 years, do ing values decline. I talked to realtors cant. we think we are going to eliminate it? and others last weekend. In some cases, On health policy, there is the com- No. In fact, the authors of it justify it, over 50 percent of what they are doing parative effectiveness research which, saying: Well, it actually will work be- is foreclosures and short sales in an- in an op-ed in the Washington Post last cause it is not really going to be tem- ticipation of foreclosure. So the mar- Friday, George Will commented would porary. We are really going to make it ket is in very bad shape. One of the Re- dramatically advance Government con- permanent. That is what we have to be publican ideas—in fact, we have a cou- trol and rationing of health care. This very careful of in this legislation— ple of different approaches—is trying is not good policy. committing ourselves to hundreds of to provide a floor so housing values There is the neighborhood stabiliza- billions of new expenditures, ostensibly don’t decline any more, so that people tion plan, $2.25 billion. This is the same temporary—some not even ostensibly are incented to either refinance their kind of funding that could go to enti- temporary; they are actually identified existing mortgage or to be able to af- ties like ACORN, which we stopped as mandatory spending for the next 10 ford a new mortgage, and at the same when we dealt with this last June in years—but many of them ostensibly time that this would help individuals the housing legislation. But it is temporary but will, in fact, be a perma- put more money in their pockets. Be- tucked into this legislation, it is a lot nent program. cause of the savings they would of money, it is bad policy, and it ought One of the reasons I believe the pro- achieve with a lower interest rate to be taken out. gram will not work is because less than mortgage over 30 years, it would also The Washington Post, last Friday, half of all the discretionary funding is help to clear up the problem we have editorialized about the education ex- spent by the year 2011. Now, I hope by

VerDate Nov 24 2008 02:46 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.049 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1403 the year 2011 this recession is over. But The PRESIDING OFFICER. Is there committee—but many of these belong, you cannot call it a stimulus when an objection to setting aside the pend- really, in the appropriations process as more than half of the discretionary ing amendment? opposed to a stimulus. spending does not even begin to be Without objection, it is so ordered. It is my hope, as we work our way spent until the year 2011. The clerk will report. through the bill, that the bill will be So another one of the Republican The assistant legislative clerk read improved. I would like to see a bill ideas, that of my colleague, JOHN as follows: emerge from the Senate that would be MCCAIN, is to say: Look, you have to The Senator from Pennsylvania [Mr. SPEC- really directed toward stimulus, a bill spend this within this period of time. If TER], for himself and Mr. DURBIN, proposes which I could enthusiastically support. you do not, then that authority lapses, an amendment numbered 101, as modified, to The amendment which is offered here amendment No. 98. and we are not going to spend that today is for the National Institutes of money. I think that is a very sensible Mr. SPECTER. Madam President, I Health, which has been starved re- cently. During the decade when I way to look at it. ask unanimous consent that reading of chaired the Subcommittee on Labor, Just one other comment on the tax the modified amendment be dispensed Health and Human Services, and Edu- title. We talk about the extension of with. The PRESIDING OFFICER. Without cation, with the support of the ranking these energy tax credits. Apparently, objection, it is so ordered. member, Senator HARKIN—who is now windmills did not get enough in the The amendment, as modified, is as chairman, and I am ranking member; way of tax credits, so we are going to follows: and when Senator HARKIN and I shift extend their tax credit for another 3 chairmanship, it is a seamless transfer; years. You can argue whether that is (Purpose: To provide an additional $6,500,000,000 to the National Institutes of we work together on a partnership, bi- good policy, but you cannot very well Health for biomedical research) partisan basis—together we took the argue that extending it beyond 1 year On page 130, line 3, insert after the period lead in increasing NIH funding from $12 is immediate spending. By definition, the following: ‘‘The additional amount avail- billion to $30 billion. Some years, the you are talking about the second and able for ‘Office of the Director’ in the pre- increases were as high as $3 billion, $3.5 third year. vious sentence shall be increased by billion. Lately, with the budget crunch, On this point, Dr. Christina Romer, $6,500,000,000: Provided, That a total of that has been impossible to maintain. who is President Obama’s head of the $7,850,000,000 shall be transferred pursuant to The cost-of-living adjustments have such sentence: Provided further, That any Council of Economic Advisors, and, by not been made, and there have been the way, at last count, about 320 other amounts in this sentence shall be designated as an emergency requirement and necessary across-the-board cuts, so there has economists, including some Nobel lau- to meet emergency needs pursuant to section been an actual decline of some $5.2 bil- reates, has made the point that tax 204(a) of S. Con. Res. 21 (110th Congress) and lion of NIH funding in the last 7 years. cuts are far more effective in this envi- section 301(b)(2) of S. Con. Res. 70 (110th Con- This $10 billion allocation, if enacted, ronment than is additional Govern- gress), the concurrent resolutions on the would correct that. It would give a ment spending. To this, I just have to budget for fiscal years 2008 and 2009: Provided boost and would provide jobs, high-pay- say, this appears to be a new concept further, That the amount under the heading ing jobs, at a time when the passage of here in trickle-down economics, where ‘STATE FISCAL STABILIZATION FUND’ under the amendment would kill two birds the Government will spend close to a the heading ‘DEPARTMENT OF EDU- CATION’ in title XIV shall be decreased by with one stone. It would stimulate the trillion dollars—just get it out there— $6,500,000,000.’’. economy by producing good, high-pay- and hopefully some of it will trickle ing jobs, and by reducing major ill- Mr. SPECTER. The basic amendment down to regular people. That is not the nesses, which I will specify in a few calls for the addition of $6.5 billion to best way to help people who are hurt- moments, it would cut the cost of the National Institutes of Health, and ing in this economy. health care. What better way to reduce the modification provides for an offset So we have talked about things that health care costs than to prevent ill- from the State Fiscal Stabilization will not work in the bill. We have ness, prevent heart disease, reduce the Fund. time of Alzheimer’s, and cut back on talked about excess spending in the Before proceeding directly to the dis- the incidence of cancer? The statistics bill. We have talked about things that cussion on the amendment, a few ob- show there would be good-paying jobs are not going to really stimulate the servations about the bill generally: I created by this $10 billion. According economy or create more jobs. In fact, believe an economic stimulus is nec- to NIH Acting Director Dr. Raynard the cost of the jobs, if you just take essary. We have seen the unemploy- Kington, the $10 billion would result in the cost of the bill and the number of ment rate rise to 7.2 percent last jobs created, according to estimates of the creation of some 70,000 jobs over month. Some 2.8 million people lost the next 2 years. These funds could go the sponsors of the bill, for each Gov- their jobs last year. Each day brings ernment job created, it is $646,000. That out in a range of 6 to 9 months, and new reports of additional people losing certainly in less than a year, so it has is a lot of money to create a job; in the their jobs. We know the safety net is private sector, $242,000. This is not an the impact of being very promptly dis- failing. We know there is a need to lib- seminated. efficient, effective program, and I do eralize bank credit, the foreclosure not believe we can afford a $1.3 trillion The benefits are statistically demon- rate is very high, and there is a need to strable by the high costs associated mistake, especially since we are play- provide Government intervention to ing with the money our children and with diseases which these funds are de- stop the foreclosures. In the midst of signed to cure or to ameliorate. For ex- grandchildren are going to have to pay all of these issues, there is, admittedly, back. ample, the annual cost associated with the need for a stimulus package. cardiovascular disease amounts to Let’s eliminate the wasteful spend- I am concerned about the House bill ing, and let’s deal with the things that $448.5 billion a year; cancer, $219 billion in a number of respects. I believe, for a year; Alzheimer’s, $148 billion; and so have to be dealt with first, such as the example, there is insufficient money in housing crisis, and create tax policy it goes on down the line. infrastructure. Pennsylvania Governor The recent statistics show significant that will make sense long into the fu- Rendell has assured me that the spend- improvements on these maladies, I ture and will actually help businesses ing on highways, bridges, and roads think attributable, fairly, to the ad- create more jobs to help the people of could begin within a period of some 6 vances by NIH research. our country today. months. For example, between 1994 and the The PRESIDING OFFICER (Mrs. There needs to be more on the tax year 2004, the number of deaths from GILLIBRAND). The Senator from Penn- cut side, in my opinion. There are coronary heart disease declined by 18 sylvania. many programs in the stimulus pack- percent and the stroke death rate fell AMENDMENT NO. 101, AS MODIFIED, TO age which are very good programs— by 24 percent. Were it not for AMENDMENT NO. 98 programs which I have fought for dur- groundbreaking research on the causes Mr. SPECTER. Madam President, I ing my tenure as chairman or ranking and treatment of heart disease, sup- call up amendment No. 101 and send a member of the Labor, Health and ported in large part by NIH, heart at- modification to the desk. Human Services, and Education Sub- tacks would most probably account for

VerDate Nov 24 2008 02:46 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.051 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1404 CONGRESSIONAL RECORD — SENATE February 3, 2009 an estimated 1.6 million deaths per billion. That would be a downpayment ranking member. It has passed back year instead of the approximately and a sign of a serious effort to go after and forth a lot of times since 1988. But 440,000 deaths experienced last year in these maladies. When you have a stim- the one person who has always been 2008. ulus package of $819 billion in the consistent in his support of biomedical The absolute number of cancer House bill—it may go up higher than research and support for the National deaths in the United States has de- that—this is a relatively small sum. Institutes of Health has been my clined 3 years in a row despite the When we structured the original bill at friend, ARLEN SPECTER of Pennsyl- growth and aging of our population, $3.5 billion, we talked about what vania. which is a truly unprecedented event in would be doable. We came up with $6.5 I support his amendment, I wish to medical history. The 5-year survival billion. I am not sure that we didn’t say right off the bat. Everything that rate for localized breast cancer has in- make a mistake, that we ought to be is in it I support. We do have to bring creased from 80 percent in the 1950s to looking for more of the $800 billion plus NIH back up to its funding level. I say 98 percent today. That is a pretty en- to deal with these maladies, but at any to my friend, one of my proudest couraging figure for people who have rate, that is where we are. achievements in the Senate was work- breast cancer or are fearful of getting Senator HARKIN and I have a little ing with the Senator from Pennsyl- breast cancer. For childhood cancers, difference of opinion on the funding as vania to double the funding of NIH over the 5-year survival rate has improved to whether there ought to be an offset. a 5-year period. To show my colleagues from less than 50 percent in 1970 to 80 My view is it is a minor difference of how bipartisan it was, it started under percent today. The 5-year survival rate opinion, but one which we are going to a Democratic President and ended for Hodgkin’s lymphoma has increased present to the body for a vote. In look- under a Republican President. There from 40 percent in 1963 to more than 86 ing over the allocation of the entire was one change in there for a couple percent in the year 2003. For non-Hodg- budget, I found there is $79 billion in years when I was chair and the Senator kin’s lymphoma, the survival rate has what is called a State fiscal stabiliza- from Pennsylvania was ranking mem- increased from 31 percent in 1963 to 63.8 tion fund. Well, I think there are limits ber and then it went back and forth, percent in 2003. Over the past 25 years, as to how we ought to go on stabilizing but as the Senator said, that has al- the 5-year survival rate for prostate the States’ fiscal policy, but at any ways been kind of seamless in terms of cancer has increased from 69 percent to rate, included in that amount is $24.7 passing the gavel back and forth. But almost 99 percent. Now, if you take billion to be used for a wide range of doubling the funding for NIH over 5 anybody who is in the category of public safety and other governmental years was a Herculean task and the breast cancer or prostate cancer or services which may include education Senator from Pennsylvania was a lead- Hodgkins or non-Hodgkins, those sur- or may not include education. All of er in that effort. We worked hard on vival figures are very encouraging. I these funds are proposed to go out that, and we got it done. That was in didn’t know—when I joined the Appro- under a population-based formula, but 2003. priations Committee and selected the are in no way targeted to States with Now, since 2003, we are 10 percent Subcommittee on Labor, Health, the biggest economic problems or lower now in real funding for NIH than Human Services and Education and led greatest budget shortfalls. we were in 2003. I am sure my friend the fight with Senator HARKIN to in- It is unclear what stimulating effect from Pennsylvania would agree that we crease NIH funding from $12 billion to this funding would have, and the pur- did not work hard on both sides of the $30 billion and to have the National poses of the funding are undefined. So aisle and with two different adminis- Cancer Institute funded by $5 billion— when you have almost $25 billion with trations to get this done only to have I didn’t know I would one day be stand- the purposes of the funding undefined, it sort of sit there static, and then ing on the floor of the Senate citing it seems to me it is a much better use come back 10 years later or something, statistics which include me. When we of that money, about a quarter of it, to and then have to double it again. Our talk about non-Hodgkins, that is fund the $6.5 billion which is the sub- goal was to get NIH back up to a fund- ARLEN SPECTER. I was shocked in Feb- ject of the amendment which I have ing level so that the number of peer-re- ruary of 2005 to find that I had non- just described. viewed grants that were funded would Hodgkins; tough chemotherapy, recov- Senator HARKIN and I have discussed be closer to the 1-in-3, 1-in-2, 1-in-3 area ery, lost all my hair, got it all back, this in an amiable way, as we always that it had been in the earlier days of and fine. Then, last year, I had a recur- do. He is going to speak next and is NIH. By the time we got to the point rence; more chemotherapy, more reha- going to propose a second-degree where we started the doubling—and bilitation, maintained my Senate du- amendment so that there not be the that was in 1998, if I am not mistaken; ties, was on the floor, presided over the offset. I have already stated my pref- it might have been 1999, 1998—we were confirmation hearings of two Supreme erence to have an offset because we are down to where 1 in 10, 1 in 8 peer-re- Court Justices in 2005, worked with dealing with very serious deficit prob- viewed grants were being funded. Sad Senator HARKIN, right down the line. lems, and I thought that if it were pos- to say, we are right back almost to So those are pretty important statis- sible to do this funding with an offset that situation again. We are down to tics if you are one of them—if you are which was reasonable, it would be pref- where maybe somewhere between 1 in 6 one of them. erable than adding to the deficit. But if and 1 in 10 grants are being funded. It is my opinion that it is scandalous Senator HARKIN prevails on his second- Now, what does that mean? That in this country that we haven’t done degree amendment and there is no off- means researchers at NIH—let me back more by way of combating these ill- set, so be it, and we will have reached up here. That means that researchers nesses. I requested an estimate from the core principle of trying to get these at the University of Pennsylvania, at the cancer community of what it would funds into the National Institutes of the University of Iowa, at the Univer- take to make a major attack to vir- Health. sity of California, at universities in tually cure cancer. We can’t talk about I yield the floor. New York State, universities in Flor- curing cancer, but the kind of a major The PRESIDING OFFICER. The Sen- ida, universities in Illinois, univer- attack which would reduce cancer very ator from Iowa is recognized. sities in Wyoming, universities in Ari- materially. We got back a figure of $335 Mr. HARKIN. Madam President, zona, every State in the Nation gets billion over 15 years. Well, those are first, let me thank my friend and my funding through the NIH for research. big numbers, but they would pay off in colleague from Pennsylvania, Senator These are universities, basically. So very substantial rewards when you SPECTER, for his continued support of this funding goes all over the country. consider the cost of cancer is over $200 basic research, biomedical research in So what does that mean, that we are billion a year. The cost of heart disease this country. Ever since I first got on now back at the level where 1 out of 6 is almost $450 billion a year. There are this committee back in 1988, Senator to 1 out of 10 peer-reviewed grants are ways and economies within the Federal SPECTER, of course, was chair and I was being funded? Well, what it means is budget to deal with those issues. ranking member, and later I became that young researchers—and these are Today we are talking about a much chair and he became ranking member, people who are at the top of their class; lesser figure. We are talking about $10 and then he became chair and I became these are the brightest of the bright;

VerDate Nov 24 2008 02:46 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.052 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1405 these are students who have gone operative fellows, research assistants, cutting into that fund. I strongly sup- through either medical school or genet- and on and on. So there is a great mul- port Senator SPECTER’s amendment— ics or biomedicine or biology, a lot of tiplier effect. the main purpose of it—to increase different disciplines involved here, and There is also a ripple effect from this funding for NIH. Again, I just have a they have some ideas they want to pur- research. Keep in mind this is basic re- slight difference on how it should be sue, some basic research they want to search. These are asking the most fun- funded. Let’s face it, this whole bill is pursue. They are in their twenties. damental of questions. emergency spending. We are up to They spent a lot of money going to col- Well, maybe the grant has led to about $900 billion right now. As I have lege. They want to pursue a field of in- basic research that will lead to a new said before, a lot of economists, both quiry. Now they are told that the aver- compound that a pharmaceutical com- liberal and conservative, have said we age age for getting their first grant is pany wants to develop into a new drug are not doing enough. We had Milton 42 years of age. that helps save lives. Senator SPECTER Friedman, President Reagan’s econo- Well, if you are a young person and talked about the research at NCI, Na- mist, a very conservative economist, you are just out of college, are you tional Cancer Institute, and the great who said we may not be doing enough; going to wait around until you are 42? strides they have made. The Senator is Alan Blinder, Mark Zandi—a broad No. You are probably going to go to living proof of that. We watched the spectrum of economists are saying this work for the private sector, private in- Senator go through a long hard period, is one time when we should err on the dustry some place. and it is wonderful to see him here as upside not the downside. So what we are doing is we are losing healthy, vibrant, and determined as If this whole bill is emergency spend- a lot of bright young researchers. When ever to make sure we fund NIH. He is ing, why, I ask, should the funding for we doubled the funding for NIH, a lot of living proof of the great strides we NIH not be the same? Why would we young researchers started there, and have made. So that has a ripple effect. want to take it out of education, take they are there now, but we are losing a If there is more money now in the it out of public safety, out of other whole other generation of these young economy, maybe an entrepreneur will areas to pay for NIH. This whole bill is researchers. So that is the effect of use some breakthrough on research to emergency spending. Quite frankly, I what has happened at NIH. form a spin-off company. That happens think it ought to be. We are in an What it means also is that we are los- all the time, and that stimulates the emergency. Things are going downhill economy. ing our preeminent role in the world as very rapidly in this country—in my As I said, this money goes to re- the leader in biomedical research. We State, and I know in every other State. searchers all over the country, not just have to maintain it. We have always Companies are shedding jobs every been sort of—if you want to talk about to Bethesda, MD, where the head- quarters is. Very little of it goes there. day—9,000 every day. a city on a hill, when it comes to bio- Since the whole bill is emergency It goes to every State—to 90 percent of medical research, we have always been spending, I think NIH ought to be right all congressional districts. So it helps that to the rest of the world. The rest in there with everything else. It is that of the world looks to NIH. Keep in the entire country. Now, that is in the short term. There important. I think it ought to be emer- mind it was through the NIH that we is a longer term benefit, which is im- gency funding, so I have a second de- mapped and sequenced the entire proving people’s health. After all, that gree that I will be offering to the human genome, mapped and sequenced is the purpose of this research in the amendment by the Senator from Penn- the entire human gene. Guess what. It first place. It is called the National In- sylvania that would basically make the is out there for researchers all over the stitutes of Health, not the National In- funding for the amendment the same as world. Any researcher anywhere in the stitutes of Biomedical Research. The everything else in this bill. I hope we world can tap into the database at NIH goal is health. In the long term, it is will get support for that. Why discrimi- and find out all the information they going to be a healthier workforce, nate against NIH? Don’t do that. Put it want on the genetic structure and use healthier people, cutting down on in with everything else. that for their research. Guess what. It health care costs, making people more With that I yield the floor. is free of charge. Free of charge. That productive in their lives because of the The PRESIDING OFFICER. The Sen- was a great investment by the tax- research we do through NIH. We always ator from Pennsylvania is recognized. payers of this country and already pay- say ‘‘at,’’ but it is ‘‘through’’ NIH. If Mr. SPECTER. Madam President, I ing big dividends. our workers are healthier, they are thank my distinguished colleague for So it pains me, I know as it pains my going to be more productive. his kind remarks and comments and a friend from Pennsylvania, to now see Again, I support this amendment al- reaffirmation of what I said about the NIH going back down again in terms of most in its entirety—except for the working relationship we had, the part- its support. As I said, right now, NIH way we are going to fund it. My friend nership, and the seamless transfer of funding has dropped more than 10 per- spoke about that, and I have a small the gavel. cent in real terms since 2003. That was disagreement. The Senator’s amend- AMENDMENT NO. 178 TO AMENDMENT NO. 101 at the end of the doubling period. ment would take the money as an off- Mr. HARKIN. If the Senator will Some people might say, Well, what set out of what is called the State fis- yield, I thought the Senator’s amend- does this have to do with stimulus? cal stabilization fund. Here is the prob- ment was not yet at the desk. I am in- Well, this does stimulate the economy, lem as I see it. formed it is. both in the short term and in the long The State fiscal stabilization fund I send my second-degree amendment term. As I have said many times about provides critically needed funding for to the desk and ask for its consider- this stimulus bill, it is two things. One, education. Just this afternoon, I had ation. it is to, yes, put people to work right the presidents of most of the inde- The PRESIDING OFFICER. The away. That has to do with a lot of the pendent colleges in my State visiting clerk will report. construction projects that are in here. me. A lot of this money will go to help The assistant legislative clerk read But there are a lot of other things in them in their colleges. It will help our as follows: this bill that provide for a foundation community colleges. A lot of money The Senator from Iowa [Mr. HARKIN] pro- for solid recovery down the pike—2 will go to community colleges to help poses an amendment numbered 178 to amend- years, 5 years, 10 years from now. Now, retrain workers for the future. Our pre- ment No. 101. every time in the short term, when we K through 12th grade money comes Mr. HARKIN. Madam President, I think about NIH in the short term, from the stabilization fund. There is a ask unanimous consent that reading of every time a researcher gets a grant, it lot of money in that stabilization fund the amendment be dispensed with. supports an average of seven jobs. Let that goes for public safety and other The PRESIDING OFFICER. Without me repeat that. Every time a re- government services. We don’t need to objection, it is so ordered. searcher gets a grant, on average, it be laying off teachers. We need to keep The amendment is as follows: supports seven jobs. So it is not just our teachers hired. On page 2, line 5, strike the following: one researcher in a lab by himself or That is what this money would go ‘‘Provided, further,’’ through and including herself; it is lab technicians, post- for. So I don’t think we ought to be ‘‘shall be decreased by $6,500,000,000’’.

VerDate Nov 24 2008 02:46 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.053 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1406 CONGRESSIONAL RECORD — SENATE February 3, 2009 Mr. SPECTER. Madam President, to Mr. HARKIN. I thank the Chair. title VI of division A for Department of continue with the two amendments, I yield the floor and suggest the ab- Homeland Security under the heading ‘‘Of- perhaps we can have side-by-side votes. sence of a quorum. fice of the Undersecretary of Management’’, The PRESIDING OFFICER. The and the amount made available under such Is that satisfactory to the Senator? heading is reduced by $248,000,000. Mr. HARKIN. I will check on that. clerk will call the roll. The bill clerk proceeded to call the (8) USDA MODERNIZATION.—None of the Mr. SPECTER. Madam President, I funds appropriated or otherwise made avail- suggest the absence of a quorum. roll. able in title I of division A for Department of The PRESIDING OFFICER. The Mr. VITTER. Mr. President, I ask Agriculture under the heading ‘‘Office of the clerk will call the roll. unanimous consent that the order for Secretary’’, and the amount made available The assistant legislative clerk pro- the quorum call be rescinded. under such heading is reduced by $300,000,000. ceeded to call the roll. The PRESIDING OFFICER (Mr. (9) STATE DEPARTMENT TRAINING FACILITY.— Mr. SPECTER. Madam President, I TESTER). Without objection, it is so or- None of the funds appropriated or otherwise dered. made available in title XI of division A for ask unanimous consent that the order Administration of Foreign Affairs under the AMENDMENT NO. 179 TO AMENDMENT NO. 98 for the quorum call be rescinded. heading ‘‘Diplomatic and Consular pro- The PRESIDING OFFICER. Without Mr. VITTER. Mr. President, I ask gram’’, and the amount made available objection, it is so ordered. unanimous consent to call up the under such heading is reduced by $75,000,000. Mr. SPECTER. Madam President, Vitter amendment which is at the (10) STATE DEPARTMENT CAPITAL INVEST- just a very brief comment about the desk. MENT FUND.—None of the funds appropriated offset. The State fiscal stabilization The PRESIDING OFFICER. Is there or otherwise made available in title XI of di- objection to setting aside the pending vision A for Administration of Foreign Af- fund does have substantial funding for fairs under the heading ‘‘Capital Investment education, as represented by the Sen- amendments? Without objection, it is so ordered. Fund’’, and the amount made available ator from Iowa. But there is a portion The clerk will report. under such heading is reduced by $524,000,000. of it—$24.7 billion—which is to be used The bill clerk read as follows: (11) DC SEWER SYSTEM.—None of the funds for a wide range of governmental serv- appropriated or otherwise made available in The Senator from Louisiana [Mr. VITTER] title V of division A for District of Columbia ices, which may include education, or proposes an amendment numbered 179 to may not. In that $24.7 billion, there is under the heading ‘‘Federal Payment to the amendment No. 98. District of Columbia Water and Sewer Au- wide discretion given to the States as Mr. VITTER. Mr. President, I ask thority’’ and the amount made available to how they are going to handle it. unanimous consent that the reading of under such heading is reduced by $125,000,000. Those funds go out under a population- the amendment be dispensed with. (12) ECONOMIC DEVELOPMENT ASSISTANCE based formula, in no way targeted to The PRESIDING OFFICER. Without PROGRAM.—None of the funds appropriated or States with the biggest economic prob- objection, it is so ordered. otherwise made available in title II of divi- lems or the greatest budget shortfalls. The amendment is as follows: sion A for Economic Development Adminis- The purposes of the funding are unde- tration under the heading ‘‘Economic Devel- (Purpose: To eliminate unnecessary opment Assistance Programs’’ , and the fined, so there is a substantial amount spending) amount made available under such heading of money which may not be used for At the appropriate place, insert the fol- is reduced by $150,000,000. what the Senator from Iowa has de- lowing: (13) AMTRAK.—None of the funds appro- scribed, or education. SEC. ll. ELIMINATE SPENDING AND PRIORITIZE priated or otherwise made available in title As I see it, it is a question of whether INVESTMENTS. XII of division A for Federal Railroad Ad- we are going to add to the deficit of (a) ELIMINATE SPENDING.— ministration under the heading ‘‘Supple- (1) FISH BARRIERS.—None of the funds ap- mental Grants to the National Passenger $6.5 billion or whether we are going to propriated or otherwise made available in establish a priority where the State Railroad Corporations’’, and the amount title VII of division A for United States Fish made available under such heading is re- has the discretion to use it with unde- and Wildlife Management under the heading duced by $850,000,000. fined purposes or use it for the three ‘‘Resource Management’’, and the amount (14) DOD HYBRID VEHICLES.—None of the alternatives you have, which are to use made available under such heading is re- funds appropriated or otherwise made avail- the $6.5 billion for NIH, which we have duced by $20,000,000. able in title III of division A for Procure- described, or undefined purposes in the (2) CENSUS BUREAU.—None of the funds ap- ment under the heading ‘‘Defense Production State fiscal stabilization fund, or add propriated or otherwise made available in Act Purchases’’, and the amount made avail- title II of division A for Bureau of the Census to the deficit. I think we ought not to able under such heading is reduced by under the heading ‘‘Periodic Censuses and $100,000,000. add to the deficit. I think it is pref- Programs’’, and the amount made available (15) NASA CLIMATE CHANGE.—None of the erable to use them for NIH and not for under such heading is reduced by funds appropriated or otherwise made avail- the undefined purposes. $1,000,000,000. able in title II of division A for National Aer- I thank the Chair and yield the floor. (3) FEDERAL VEHICLES.—None of the funds onautics and Space Administration under AMENDMENT NO. 178, AS MODIFIED appropriated or otherwise made available in the heading ‘‘Science’’, and the amount title V of division A for General Services Ad- Mr. HARKIN. Madam President, I made available under such heading is re- ministration under the heading ‘‘Energy-Ef- duced by $500,000,000. ask unanimous consent that my ficient Federal Motor Vehicle Fleet Procure- (16) NEIGHBORHOOD STABILIZATION.—None of amendment be modified with the ment’’, and the amount made available the funds appropriated or otherwise made changes I just sent to the desk. under such heading is reduced by $600,000,000. available in title XII of division A for Public The PRESIDING OFFICER. Without (4) FBI CONSTRUCTION.—None of the funds Housing Capital Fund under the heading objection, the amendment is so modi- appropriated or otherwise made available in ‘‘Neighborhood Stabilization Program’’, and fied. title II of division A construction for Federal the amount made available under such head- The amendment (No. 178), as modi- Bureau of Investigation under the heading ing is reduced by $2,250,000,000. fied, is as follows: ‘‘Construction’’, and the amount made avail- (17) HISTORIC PRESERVATION FUND.—None of able under such heading is reduced by the funds appropriated or otherwise made (Purpose: To provide an additional $400,000,000. available in title VII of division A for Na- $6,500,000,000 to the National Institutes of (5) NIST CONSTRUCTION.—None of the funds tional Park Service under the heading ‘‘His- Health for biomedical research). appropriated or otherwise made available in toric Preservation Fund’’, and the amount On page 130, line 3, insert after the period title II of division A for National Institute of made available under such heading is re- the following: ‘‘The additional amount avail- Standards and Technology under the heading duced by $55,000,000. able for ‘Office of the Director’ in the pre- ‘‘Construction of Research Facilities’’, and (18) FISH AND WILDLIFE RESOURCE CONSTRUC- vious sentence shall be increased by the amount made available under such head- TION.—None of the funds appropriated or oth- $6,500,000,000: Provided, That a total of ing is reduced by $357,000,000. erwise made available in title VII of division $7,850,000,000 shall be transferred pursuant to (6) COMMERCE HEADQUARTERS.—None of the A for United States Fish and Wildlife Service such sentence: Provided further, That any funds appropriated or otherwise made avail- under the heading ‘‘Construction’’, and the amounts in this sentence shall be designated able in title II of division A for National Oce- amount made available under such heading as an emergency requirement and necessary anic and Atmospheric Administration under is reduced by $60,000,000. to meet emergency needs pursuant to section the heading ‘‘Departmental Management’’, (b) UNDER PRIORITIZED SPENDING THAT 204(a) of S. Con. Res. 21 (110th Congress) and and the amount made available under such SHOULD BE BUDGETED FOR.— section 301(b)(2) of S. Con. Res. 70 (110th Con- heading is reduced by $34,000,000. (1) COMPARATIVE RESEARCH.—None of the gress), the concurrent resolutions on the (7) DHS CONSOLIDATION.—None of the funds funds appropriated or otherwise made avail- budget for fiscal years 2008 and 2009. appropriated or otherwise made available in able in title VIII of division A for Healthcare

VerDate Nov 24 2008 02:46 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.055 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1407 Research and Quality under the heading Let’s start with the size of this bill. Let’s move on. There are plenty of ‘‘Agency for Healthcare Research and Qual- This bill is enormous. It is almost $1 items that we can at least understand ity’’ may be available for comparative re- trillion. As one of my colleagues has what they are, but they are not stim- search, and the amount made available said, $1 trillion truly is a terrible thing under such heading is reduced by $700,000,000. ulus, they are not job creation. They to waste. We are in a crisis in terms of (2) HEALTH IT.—Title XIII for Health Infor- are typical, run-of-the-mill, Wash- mation Technology shall be null and void the economy, in terms of the budget, ington-big-Government spending. They and none of the funds appropriated or other- and in terms of the growth of the def- are items you find in the annual budg- wise made available in title VII of division A icit and the debt, and we cannot waste et, and almost every major item you for Information Technology under the head- $1 trillion. find in the annual budget is in this bill. ing ‘‘Office of the National Coordinator for This is so much money that if some- It is like creating a new budget year Health Information Technology’’ may be one had begun spending $1 million a and sticking it in between 2009 and available for health information technology, day—$1 million every day—when Christ 2010. and the amount made available under such was born, we would not yet be in 2009 heading is reduced by $5,000,000,000. We are going to spend $1 billion in to the full cost of this bill. That is how (3) PANDEMIC FLU.—None of the funds ap- this bill on the census. Mind you, we propriated or otherwise made available in big this bill is. That is how much appropriated $210 million as part of our title VIII of division A for pandemic influ- money we are talking about. emergency appropriations bill last enza under the heading ‘‘Public Health and Of course, the argument is we face summer—$210 million—but this is a Social Services Emergency Fund’’ may be very dire economic times, we face a bottomless pit. So in this bill, we are available for pandemic flu and the amount truly horrendous recession—and we do; made available under such heading is re- going to spend $1 billion more on the I am not arguing against that fact— upcoming decennial census. We do cen- duced by $870,000,000. and that perhaps something that big suses. They are important. We can de- (4) SMART GRID.—None of the funds made and that dramatic is needed to help get available in this Act for Smart Grid shall be bate it another day, another time, an- us out of it. If that is true, let’s look at made available. other bill if spending $1 billion, throw- what is in the bill and see exactly how (5) BROAD BAND.—None of the funds appro- ing that at the problem is going to focused it is on real job creation and priated or other made available in title II of solve the problem. But it should be be- division A for Broadband Technology Oppor- real economic development and real yond debate that is it not job creation, tunities under the heading ‘‘National Tech- stimulus. By that test, this bill fails. that it is not economic stimulus, that nology Opportunities Program’’ may be This bill is not focused. It is not fo- it is not getting us out of this reces- available for broadband and the amount cused on real job creation and real sion. That is run-of-the-mill, Wash- made available under such heading is re- stimulus. It covers the waterfront. It is duced by $9,000,000,000. all about a traditional Washington-big- ington-big-Government spending. Of (6) HIGH-SPEED RAIL CORRIDOR PROGRAM.— course, there is line after line of that. None of the funds appropriated or made Government-spending program after program, touching virtually every part Almost every major item in any Fed- available in title XII of division A for the eral budget is in this bill. High-Speed Rail Corridor projects under the of the annual Federal budget rather heading High-Speed Rail Corridor Program than being disciplined and focused on There are all sorts of categories of may be available for the high-speed rail cor- items that can create jobs and pump up traditional Washington-big-Govern- ridor and the amount made available under the economy immediately. ment spending. That is about building such heading is reduced by $2,000,000,000. Sec- Why do I say that? Let’s take some but not building highways or roads or tion 201 of title II of division A shall null and bridges, not building jobs but building void. examples. Let’s start with the truly ri- diculous examples and then move on to Government. (7) PRISON SYSTEM AND COURTHOUSES.— FBI construction, NIST construc- None of the funds appropriated or made other items that might be worthwhile available in title II of division A for prison spending programs but should be de- tion—not many people know what buildings and facilities under the heading bated as traditional spending pro- NIST is. It is the National Institute of Federal Prison System may be available for grams, not as job creation, economic Standards and Technology. We are buildings and facilities and the amount made stimulus, because they are not. going to spend $357 million in this bill available under such heading is reduced by The truly ridiculous: How about fish on construction at NIST. $1,000,000,000. barriers, because in this bill is $20 mil- Commerce headquarters: Construc- (c) UNDER GENERAL PROVISIONS.— tion for the Commerce headquarters is (1) DAVIS-BACON ACT NOT APPLICABLE.—Not- lion for the removal of small and me- withstanding any other provision of law, the dium-sized fish passage barriers. I chal- another $34 million. provisions of subchapter IV of chapter 31 of lenge anybody on this Senate floor to Department of Homeland Security title 40, United States Code (commonly re- explain to us what this is. But cer- consolidation: We are going to consoli- ferred to as the Davis-Bacon Act) shall not tainly even if they can do that—and date and, in my mind, that means cut, apply to any construction projects carried very few could—they could not explain save, and trim. But for some reason out using amounts made available under this how that is related to job creation and that consolidation is going to cost $248 Act or the amendments made by this Act. getting us out of this recession. We are million in this bill. (2) PROHIBITED USES.—None of the funds ap- USDA modernization: Again, we are propriated or otherwise made available in not going to get out of this very seri- this Act may be used for any casino or other ous recession by removing small and building Government, we are growing gambling establishment, aquarium, zoo, golf medium-sized fish passage barriers. Government $300 million. course, swimming pool, or Mob Museum. That is truly ridiculous, as it was ri- We are going to build a State Depart- Mr. VITTER. Mr. President, this diculous to have in this bill, until it ment training facility, $75 million, and amendment is very simple and was removed very recently, significant more State Department capital invest- straightforward but basic and impor- dollars for honeybee insurance. Again, ment, another half a billion dollars. tant. This would strike multiple cats I challenge this entire body, any Mem- The DC sewer system: We are going and dogs, all-over spending provisions ber, to come and explain what that pro- to spend an extraordinary amount on in the bill to try to begin to establish vision was. But even if they could say that system—$125 million, again in the some spending discipline and get back what that provision was, what it rep- home of the Federal Government. No- to what this bill is supposed to be resented, there is no way they could where else are those dollars figured but about: creating jobs, stimulating the argue that is job creation, economic in the home of the Federal Govern- economy, not just spending money and stimulus, getting us out of a very se- ment. And on and on. growing Government. vere recession. Again, we may be building. We seem A lot of folks around the country Or what about the $400 million that to be building big Government and have fundamental concerns about this was in the bill until recently for the Government buildings in Washington, bill, and the concerns are this is a huge prevention of sexually transmitted dis- DC, not anything else. amount of money and there is no real eases? We can all understand what that There are all sorts of line items that, discipline and real focus in terms of is, but we immediately know that is again, are Government Washington spending that money. This amendment not job creation, that is not economic programs, traditional spending, not in is one attempt to begin to correct that. development or stimulus; it is not get- any way focused on job creation, on It does not do everything we need to ting us out of this recession. Thank- real economic stimulus, on getting us do, but it begins to correct it. fully, that was taken out of the bill. out of this recession.

VerDate Nov 24 2008 02:46 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 E:\CR\FM\A03FE6.014 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1408 CONGRESSIONAL RECORD — SENATE February 3, 2009 DOD hybrid vehicles, $100 million. if we are even willing to start, if we are The PRESIDING OFFICER. Without NASA climate change research; neigh- really going to go to the core of this objection, it is so ordered. borhood stabilization; the Historic bill and change the core of this bill and The amendment is as follows: Preservation Fund; comparative re- say, no, we are going to maintain some (Purpose: To amend the Internal Revenue search; spending for the pandemic flu, discipline. We are not going to allow Code of 1986 to allow the deduction for divi- $870 million; broadband and the smart this to be another spending Christmas dends received from controlled foreign cor- grid, and on and on. tree on which everybody gets to hang porations for an additional year, and for Again, we can debate another time their ornament. This isn’t just a laun- other purposes) another bill whether these are reason- dry list of big government Washington On page 514, between lines 16 and 17, insert able spending items, but it is obviously spending programs. This is something the following: beyond debate whether it is job cre- much more disciplined, much more fo- PART X—INVEST IN THE USA ation, economic stimulus, getting us cused. SEC. 1291. ALLOWANCE OF DEDUCTION FOR DIVI- That is what the American people are DENDS RECEIVED FROM CON- out of the recession. It is not that in TROLLED FOREIGN CORPORATIONS any focused, disciplined way. It is just waiting to see, if we are going to do FOR ADDITIONAL YEAR. using this $1 trillion opportunity to that. They know the bill before us, just (a) IN GENERAL.—Section 965 (relating to throw money at every cat-and-dog Gov- as the House-passed bill, has no dis- temporary dividends received deduction) is ernment program to use the oppor- cipline. It is a laundry list. They are amended by adding at the end the following tunity to plus up somebody’s pet waiting to see if we are going to get se- new subsection: ‘‘(g) ALLOWANCE FOR DEDUCTION FOR AN AD- projects, to build what they have been rious on the floor of the Senate and fundamentally change that laundry list DITIONAL YEAR.— waiting to build at the Commerce De- ‘‘(1) IN GENERAL.—In the case of an election partment for 10 years and have not got- of government spending, the idea of under this subsection, subsection (f)(1) shall ten the money. Oh, this is a trillion- spending everything across the spec- be applied by substituting ‘January 1, 2010,’ dollar opportunity; let’s do it now. trum in this bill. for ‘the date of the enactment of this sec- This bill is a laundry list of those Obviously, Mr. President, I hope we tion’. spending programs, of those big Gov- take that important first step by ‘‘(2) SPECIAL RULES.—For purposes of para- ernment cats and dogs. No discipline, adopting this Vitter amendment. Let’s graph (1)— begin to enforce some discipline in this ‘‘(A) EXTRAORDINARY DIVIDENDS.—Sub- no focus, no demand that it be eco- section (b)(2) shall be applied by substituting nomic development, economic stim- process. Let’s begin to shave and cut those miscellaneous spending items, ‘June 30, 2009’ for ‘June 30, 2003’. ulus, job creation. ‘‘(B) DETERMINATIONS RELATING TO RELATED In addition, there is another provi- some of which are outright ridiculous, PARTY INDEBTEDNESS.—Subsection (b)(3)(B) sion that will cost a lot of money and others of which may be good programs shall be applied by substituting ‘October 3, not produce any additional economic but aren’t economic stimulus, aren’t 2009’ for ‘October 3, 2004’. stimulus, and that is the Davis-Bacon job creation, and aren’t going to get us ‘‘(C) APPLICABLE FINANCIAL STATEMENT.— language. The Davis-Bacon require- out of this recession in the next several Subsection (c)(1) shall be applied by sub- ments in this bill, mandates, would re- months. stituting ‘June 30, 2009’ for ‘June 30, 2003’ each place it occurs. quire Federal construction contractors So with that, Mr. President, I urge all my colleagues, Republicans and ‘‘(D) DETERMINATIONS RELATING TO BASE PE- to pay their workers a wage far above RIOD.—Subsection (c)(2) shall be applied by the market rate in most places, and Democrats, to join me in supporting substituting ‘June 30, 2009’ for ‘June 30, 2003’. that wage is basically the union wage this amendment and taking an impor- ‘‘(E) REQUIREMENTS FOR INVESTMENT IN which is above free market wages and tant crucial first step—only a first step UNITED STATES.—Subsection (b)(4) shall be rates in most parts of the country. but a very important first step—to get applied— That has been estimated to cost an ad- back to what this bill was supposed to ‘‘(i) by inserting ‘deposited in 1 or more ditional $17 billion. be about: real economic stimulus, real United States financial institutions and’ Mind you, that is not a cost out of job creation, with real focus and dis- after ‘amount of the dividend’, and cipline, not just a laundry list of spend- ‘‘(ii) by striking subparagraph (B) thereof the Federal Government contained in and inserting the following: this bill, but it is a true cost and it ing items. ‘‘ ‘(B) provides for the reinvestment of such should be added to the calculations of Mr. President, I reserve the remain- dividend in the United States (other than as the cost of this bill. It is not included der of my time. payment for executive compensation) as a in the CBO score, but it is an actual The PRESIDING OFFICER. The Sen- source of funding for only 1 or more of the cost, a true cost that should be added— ator from Hawaii. following purposes: $17 billion. It does not produce any ad- Mr. INOUYE. Mr. President, I suggest ‘‘ ‘(i) worker hiring and training, ditional project. It does not build an- the absence of a quorum. ‘‘ ‘(ii) research and development, The PRESIDING OFFICER. The ‘‘ ‘(iii) capital improvements, other bridge. It does not build another clerk will call the roll. ‘‘ ‘(iv) acquisitions of business entities for highway. It does not employ anybody The bill clerk proceeded to call the the purpose of retaining or creating jobs in else. It drives up the cost of those con- roll. the United States, and struction projects and goes above the Mrs. BOXER. Mr. President, I ask ‘‘ ‘(v) clean energy initiatives (such as market rate in almost every labor mar- unanimous consent that the order for clean energy research and development, en- ergy efficiency, clean energy start ups, and ket in the country. My amendment the quorum call be rescinded. would also strike those provisions. clean energy jobs). The PRESIDING OFFICER. Without For any purpose described in clause (i), (ii), All told, Mr. President, my amend- objection, it is so ordered. ment would strike almost $35 billion of or (iii), funding shall qualify for purposes of AMENDMENT NO. 112 TO AMENDMENT NO. 98 this paragraph only if such funding supple- this miscellaneous, cats-and-dogs Mrs. BOXER. Mr. President, I have ments but does not supplant otherwise spending that covers a whole spectrum an amendment at the desk, amendment scheduled funding for either taxable year de- of traditional big government Wash- No. 112, and I ask for its immediate scribed in subsection (f) by the taxpayer for ington programs. It would also take consideration. such purpose. Such scheduled funding shall out that Davis-Bacon language and The PRESIDING OFFICER. Is there be certified by the individual and entity ap- proving the domestic reinvestment plan.’. thus save us another $17 billion on top objection to setting aside the pending of the $35 billion, for a total savings of ‘‘(3) AUDIT.—Not later than 2 years after amendment? the date of the election under this sub- well over $50 billion. Hearing no objection, it is so ordered. Now, we are faced, as I said, with al- section, the Internal Revenue Service shall The clerk will report. conduct an audit of the taxpayer with re- most a $1 trillion bill. If we started The legislative clerk read as follows: spect to any reinvestment transaction aris- spending $1 million a day on the day The Senator from California [Mrs. BOXER], ing from such election.’’. Jesus Christ was born, we would not for herself, Mr. ENSIGN, Mr. BAYH, and Mr. (b) EFFECTIVE DATE.—The amendment yet be, at that spending rate today, in SPECTER, proposes an amendment numbered made by subsection (a) shall apply to taxable 2009, to the full cost of this bill. So $50 112 to amendment No. 98. years ending on or after January 1, 2010. billion doesn’t do the whole job, but it Mrs. BOXER. Mr. President, I ask Mrs. BOXER. Mr. President, I am is a start. And I think the American unanimous consent that the amend- pleased to offer this amendment on be- people are watching and waiting to see ment be considered as read. half of myself and Senator ENSIGN. We

VerDate Nov 24 2008 02:46 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.059 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1409 have a number of cosponsors, so this is People, if you vote against this, I am proud that Senators ENSIGN, truly a bipartisan amendment, and I know you are voting against a stim- BAYH, SPECTER and INHOFE and I have think it is worthy of everyone’s consid- ulus because those funds will be avail- come together across party lines. I am eration. able to support the domestic oper- proud. This is a good amendment. I It is pretty simple what this amend- ations of U.S. companies. If you do not would ask my friends, where we have ment would accomplish. It provides an want to listen to Laura Tyson, listen an opportunity such as this in the cur- incentive for companies to bring back to Robert Shapiro, chairman of rent environment, to inject $300, $400, foreign earnings into the United Sonecon, former Under Secretary of $500, $600, up to $800 billion into this States, and those foreign earnings Commerce for Economic Affairs under economy. must be invested in our U.S. economic Bill Clinton. See what he says: Now, people are going to say it costs recovery. $421 billion in foreign-sourced income cur- money. Joint Tax says it is a few bil- Right now there is about $800 billion rently held abroad could be repatriated. We lion dollars over the first couple of sitting offshore because companies do project that nearly $97 billion of the $421 bil- years. Let me say, only in the Govern- not want to bring it in because it lion would go to retaining or creating em- ment would there be a cost of some- would be taxed at a 35-percent rate. ployment. thing that actually increases revenue. This means, first and foremost, if you And he goes on to say: Those revenues were not coming in. We think about it, that our banks do not Additional funds used for employment have proven it. These revenues sat out have any of these funds at a time when could save or create an estimated 2.6 million there all these years until we passed they are desperate for capital. This jobs, including 2.1 million jobs in manufac- the bill. Then they came home and means that at a time that we want to turing. they paid their taxes. inject dollars into this economy, those That is a Democratic economist. I believe it brought in 16 billion—be- dollars are sitting offshore. Now, last time, everyone said: Oh, tween 16 and 18 billion came into the Now, we tried this once before. You nothing is going to come back in. No Federal Government. So this amend- are going to hear Senator LEVIN and taxes will be paid to the Government. ment means job creation, it means others attack us for that last attempt. That was wrong. As a result of this re- funding for the banks that need capital So to preempt that attack—I will have patriation in 2004, $18 billion in revenue injection. I am tired of voting for pub- more to say about it later—I wish to was received by the U.S. Treasury, six lic money to fund banks. I did it. It was show you what actually occurred last times what some experts predicted. tough. Taxpayer money. I wish to see time that we did this. Now, 62 percent of the funds were some of this money that is sitting out We saw in 1997, 1998, 1999, 2000, 2001, spent on worker hiring and training, there get injected into the banks. 2002, 2003, 2004, before we passed our re- R&D, and capital investments. You are You are going to hear horror stories, patriation, all of these dollars, almost going to hear horror stories, and I say you are going to hear populist argu- more than $350 billion, sitting offshore, to my cosponsor from Nevada, you are ments. I would put my populism to the not doing the American economy any going to hear a litany of horror stories. test. I do not stand here every day and good. When we passed this, those funds Well, I am going to tell some of the endorse tax breaks. I am very cautious. came back. good stories. Oracle, a California high- But common sense says, you have hun- Now, what you are going to hear tech company, used the funds repatri- dreds of billions of dollars sitting off- from some of my colleagues is that ated in 2004 to outbid foreign competi- shore, we are not being paid taxes on some of the companies did not live up tors to acquire two U.S. companies— the money. to the spirit of the amendment. The one in California, the other in Min- They will pay taxes on the money spirit of the amendment was to bring nesota, and to keep the companies and when it comes in. We have heavy the money home and invest it here at their intellectual property in the strings attached. We require an audit. home in job-producing activity. United States. Oracle has increased We have transparency attached. We It is true. That is why, in this amend- jobs at both firms. have support from the National Tax- ment we are offering, we have tight- Intel, another California company, payers Union, from the U.S. Chamber ened the strings of what the companies used repatriated funds to help build of Commerce, we have support from in- can do, and we have required an audit new fabrication plants. Now, some of dustry. They very much would like to of each and every company that takes the things you are going to hear I do bring this back but do not want to this particular tax break. We have said not like to hear. I do not like that bring it back in a circumstance where that you only can use these funds to some companies did not act in the spir- they are so heavily taxed. create or retain jobs, to make capital it of the amendment. But the amend- So we have a choice: We can walk improvements in your business, to buy ment was not tightly drawn. away from this amendment and we can other businesses that will otherwise Let me say, loudly and clearly, if any let $800 billion sit offshore or we can fail, to invest in clean technology. company or any individual in the learn from our experience the last We do not allow these companies to United States of America does not live time, where we did take in $18 billion use any of these funds for golden para- up to the law, they should be gone into the Treasury. chutes or high CEO pay. We do not after by the IRS and have to pay their But no question, we could have had allow these funds to be used for divi- back taxes. That is what is going to some tighter strings. Senator ENSIGN, I dends. We do not allow these funds to happen to companies that disobey this have to thank him, because I am sure be used to buy stocks. Now, I can tell law. That is clear in our amendment. he had some other ideas for some of the you a lot of the companies would like I tell you what we do, we guarantee uses, and I prevailed upon him. I said: to see fewer strings. But Senator EN- that there will be an audit of these Let’s allow for a few uses. SIGN and I have agreed, in order to pass companies. Now, I would say to any of I see that the Senator from New this, we are going to put some tough my colleagues who oppose it, show an- Hampshire is here. I wanted to close strings on it. That is what we have other case where we pass a tax break right now in this argument by telling done. and we require every company that you the uses that would be allowed be- Now, I do not have to go through the takes advantage of it to get audited. As cause I think those are very important. litany of job losses we have seen in our a matter of fact, I think it is a fan- Here is the chart, folks. I ask Sen- great Nation. Last month, there were tastic precedent to set around here, so ator SHAHEEN to take a look at this: 500,000 jobs lost. Laura Tyson, former maybe Chairman LEVIN does not have These are the sole permitted uses of re- Chairman of the Council of Economic to hold hearings if the IRS did its job patriated funds. I hope my colleagues Advisers under President Clinton, says: and go after the bad apples. who stand and bash this tell me why In the current crisis, even credit-worthy We address the issue of fungibility. these are not good. and profitable companies face liquidity and We require that foreign funds must be Why is it not good to hire workers credit constraints. spent in addition to the current spend- and train them? Why is it not good to And she said, in essence, that the re- ing level, not to displace money. We re- do more research and development? patriation policies provide a short-run quire that. We assure transparency and Why is it not good to do capital im- stimulus. accountability. provements which will put people to

VerDate Nov 24 2008 02:46 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.061 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1410 CONGRESSIONAL RECORD — SENATE February 3, 2009 work? Why is it not good to acquire partisan fashion, passed 75 to 25 in the funds used for employment could create or distressed businesses to avoid layoffs, Senate. It turned out to be a great suc- save an estimated 2.6 million jobs, and the shutdowns or bankruptcy? Why is not cess. So we are trying to put a new additional funds used for capital investments good to allow these funds to be used for version of this on this bill. To our could lead to long-term average wage in- creases of nearly 1.3 percent. The policy clean energy initiatives? amazement, the outside economists could produce more than $22 billion in direct Now, I ask that rhetorically. Maybe again are predicting that $565 billion corporate tax revenues and another $22 bil- the answer comes back, we do not trust this time is going to come back to the lion in individual income tax revenues on these companies. Well, let me tell you, United States. wage income stimulated by the job creation we have added an audit. Every com- There is about $800 billion sitting and job retention and by the wage increases pany that does this has to be audited overseas. The companies are not bring- associated with the additional capital spend- by the IRS. It is automatic. So I am ing it back. It creates jobs overseas. ing. We further estimate that the policy very pleased to present this That helps the banks that are overseas could produce or free up $52 billion used to with their capital. They are not bring- reduce the domestic debt of companies repa- admendment tonight. I am looking for- triating foreign-source income, providing an ward to hearing from Senator ENSIGN. I ing it back because they have to pay up infusion of new capital into the financial know we have a debate for which we to a 35-percent corporate tax rate. system equivalent to 21 percent of the $250 will stick around, but at this point I We want to bring foreign earnings billion provided in 2008 for bank equity infu- will yield the floor. back one time. If they bring the money sions under the current TARP program. The PRESIDING OFFICER. The Sen- back in the next 12 months, we charge This analysis shows that a temporary pol- ator from Nevada. them a 5.25-percent tax. Well, is not icy of sharply reducing the tax on profits Mr. ENSIGN. Mr. President, first of 5.25 percent on $565 billion better than held abroad by foreign subsidiaries of U.S. all, I wish to congratulate and thank 35 percent of zero? companies can play a meaningful role in sta- This is common sense. That is going bilizing and restoring U.S. employment, cap- my colleague from California, Senator ital spending and wages in the current deep BOXER. A few years ago, we worked on to help the deficit. We have to get real recession, and provide additional liquidity to an amendment together. Not a lot of about this and put some commonsense the U.S. financial system. people knew about it. The first time it thinking into this. was voted on in the Finance Com- I commend to my colleagues two MACROECONOMIC EFFECTS OF REDUCING THE mittee, most of the Republicans in the studies: One is by Allen Sinai and the EFFECTIVE TAX RATE ON REPATRIATED FOR- Finance Committee voted against it. I other by Robert Shapiro and Aparna EIGN SUBSIDIARY EARNINGS IN A CREDIT- remember talking to Senator Nickles Mathur. By the way, Robert Shapiro, AND LIQUIDITY-CONSTRAINED ENVIRONMENT at the time. He was leading the charge former Clinton adviser, liberal econo- (By Allen Sinai) with the Republicans against the mist; Allen Sinai, by any stretch of the CONCLUDING PERSPECTIVES amendment, frankly, because a lot of imagination, at best a moderate econo- All-in-all, repatriation of foreign subsidi- people did not understand it. mist. These are not rightwing radical aries’ funds via a program similar to the It does not sound right that someone economists. These are not neoclassical American Jobs Creation Act (AJCA) of 2004 who invested overseas can bring the economists who are talking about this. that allows an 85% dividends-received-deduc- I ask unanimous consent to have tion and provides a lift to the U.S. business money back for less than what they sector and significantly improves the finan- pay in the United States. But the prob- their conclusions printed in the cial position of nonfinancial corporations. lem is that companies, if they have to RECORD. The program works through providing an ex- pay a 35-percent tax on the money to There being no objection, the mate- ogenous lift in business cash flow and then bring it back, as Senator BOXER and I rial was ordered to be printed in the through the uses of the new cash flows by in- recognized it is common sense, they RECORD, as follows: creasing corporate condition through the are not going to bring the money back. USING WHAT WE HAVE TO STIMULATE THE uses of new cash flows for capital spending, R&D, jobs, and strengthening of corporate The chart Senator BOXER had clearly ECONOMY: THE BENEFITS OF TEMPORARY TAX RELIEF FOR U.S. CORPORATIONS TO RE- balance sheets. The overall economy gains in showed that. Very small amounts each growth, jobs, and the lower unemployment year of the profits that companies PATRIATE PROFITS EARNED BY FOREIGN SUB- SIDIARIES rate as a result. made overseas actually came back into (By Robert J. Shapiro and Aparna Mathur, Increased liquidity, less need for credit, the United States, until we passed Jan. 2009) and much greater cash flow to nonfinancial what we called, at the time, the Invest corporations stimulate business capital CONCLUSION in the USA Act. spending and capital formation, R&D, and In this analysis, we have evaluated the hiring to raise the growth and levels of real The outside economists got it. They economic effects of the 2004 American Jobs understood it. They projected—Allen economic activity. This comes at the cost of Creation Act, which provided one-year of fa- only a slight increase for inflation. The fed- Sinai, who was the economist at the vorable tax treatment for repatriated profits eral government budget deficit actually im- time, did the studies. He predicted be- from foreign subsidiaries of U.S. corpora- proves, benefiting from the taxation of funds tween $300 and $400 billion would come tions. Using newly-released data from the In- that would otherwise be untaxed and left back to the United States and it would ternal Revenue Service on repatriated earn- abroad and from increased tax receipts be- actually produce tax revenues, it would ings by industry under this program, we ex- cause of a stronger economy. produce jobs. amined the range of stimulus-related effects, Depending upon assumptions made with re- Guess what happened, $360 billion including significant positive effects on em- gard to repatriated funds later in the period, ployment, domestic capital spending and there may be no cost to the federal govern- came back to the United States. The wages associated with the use of repatriated Congressional Budget Office, Joint ment, with net, ex-post new higher tax re- profits for purposes assigned under the legis- ceipts and a lower budget deficit than other- Tax, they said only about $135 billion lation, as well as significant revenue gains wise from the stronger economy. would come back, and it would lose for the federal government. Essentially repeating the AJCA in the cur- revenue to the Federal Government. This report extends this analysis to esti- rent context of a credit- and liquidity-con- Well, a minimum of $16 to $20 billion mate the effects of a comparable one-year strained environment appears to be a ‘‘win- was paid in taxes on the money that policy in 2009. We conclude that a one-year win’’ event for all, the exception being those policy of taxing repatriated foreign-source was repatriated, so it only increases countries from which U.S. funds are repatri- profits at a 5.25 percent rate, as in 2004–2005, ated. The other cost, which is arguable, is revenues to the Federal Government. It would have substantial stimulative effects did not hurt the deficit; it actually the possibility of an incentive to keep earn- on the current recession and expand capital ings abroad, awaiting another one-time tax helped the deficit. The economists have flows in the currently-constrained financial break for repatriation. studied the indirect and the direct rev- system. We estimate that such a policy This cost would appear to be minimal com- enue effects of the jobs that were saved would result in the repatriation of nearly pared with the benefit of repatriation to the and the jobs that were created. The es- $421 billion in foreign-source income held economy, businesses and in the credit- and timates are closer to $34 billion of addi- abroad, including nearly $340 billion repatri- liquidity-constrained situation that cur- ated by U.S. manufacturers. Under the per- rently exists. tional revenue, tax revenue to the Fed- mitted purposes of the 2004 Act, this policy eral Government from the last repatri- in 2009 would result in an additional $97 bil- Mr. ENSIGN. What their studies are ation. lion for job creation or retention, $101 billion showing today, as they showed before So the Invest in the USA Act, which for new capital spending, and $52 billion to we acted in 2004, is that money is going Senator BOXER and I worked on in a bi- pay down domestic debt. The additional to come back. The Treasury actually

VerDate Nov 24 2008 03:31 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.062 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1411 will be helped. Jobs will be created in keep the money in Ireland. They But when it is brought home, then it is the United States. And a side benefit is produce products in Ireland, and they taxed at the basic 35-percent rate. $565 billion comes into the banks in the export those products from Ireland in- There are some who claim that that United States to help capitalize the stead of bringing the money back to revenue overseas is trapped. It is banks. What are we all talking about the United States and creating jobs trapped overseas. Because they are here? That our banks don’t have where they can have exports from the bringing it back home, where they enough capital. This, without a cost to United States. From a commonsense have to pay our rate. That is a totally the taxpayer, brings capital back. perspective, it makes no sense to me to unfair mischaracterization. It is not But in the wisdom of Joint Tax, they oppose this piece of legislation that trapped. It would be trapped if they actually say that this bill is going to will help capitalize our banks. It will had to pay a penalty to bring it back, cost money, that it is going to decrease help improve the capital structure of say a 70-percent rate. They bring it revenues to the Federal Government, our businesses, because the money, as back at the ordinary rate, the rate the where all the evidence by outside Senator BOXER so eloquently discussed, other companies have to pay. So it is economists as well as all the evidence can only be used to hire and train not trapped. It is just that companies by history shows otherwise. Look at workers. It can only be used for re- want to take advantage of this argu- this. Every year money being repatri- search and development, for capital ment that they have to do it to create ated to the United States, pretty con- improvements, for acquisition of busi- jobs. sistent down here, below $50 billion was nesses that may be distressed. That is Data shows that the last time we en- acted something such as this, there brought back in each year. Guess what. certainly what Oracle did. Oracle were virtually no new jobs created in We passed the Invest in USA Act in bought two companies. They outbid a the United States. Why is that? Be- 2004. Repatriation shot up to $360 bil- German company that was going to cause companies use this money for lion. Look what happened the next take 2,000 jobs outside the United other purposes. If there were provisions year. It went right back down, and it States. Oracle buys them, keeps them in the law that they had to use to it has been down since. in the United States, and then over the create jobs—money is fungible. So they Mrs. BOXER. Will my colleague next few years increases employment say: OK, we will use some of this to yield? at both places. Dell built a plant where Mr. ENSIGN. I will. make our payroll. Then we will use the they hired 1,800 workers. Those are money to pay dividends, go pay stock- Mrs. BOXER. I have been advised by good things to do with the money and my staff that Joint Tax today told us holders, go do something else. It is so more companies will do exactly this. easy to get around the nominal puta- that in the first 2 years we will get rev- We look forward to the debate. I enues of $5 billion. Then they go off tive provisions in this amendment. think it makes common sense. I thank I must say also this is expensive. and speculate as to what is going to my colleague from California, Senator This costs $30 billion over 10 years for happen in 2017. So we can tell our BOXER, who has done great work this no good reason. Sure, if I am an Amer- friends here, in the first 2 years, Joint time as she did last time. I appreciate ican company with significant overseas Tax tells us we are going to gain $5 bil- working with her. operations and I parked a lot of my, lion. Obviously, they are off on that. The PRESIDING OFFICER. The Sen- say, patent development over in the We got $16 billion the last time. But ator from Montana. Cayman Islands—and that is what they even they are saying in the early years Mr. BAUCUS. Mr. President, this do, many of them, they develop a pat- may sound like a good idea, but it we gain revenue. I wanted to make sure ent in the United States and park it isn’t. There are a lot of reasons. First, my friend knew that. over in the Cayman Islands, enjoy a Mr. ENSIGN. I was aware of the new it is a question of fairness, fairness to very low tax rate, and then send the numbers coming out of Joint Tax. But American companies that do their revenue generated by that patent back the outside economists say this will business in America compared with to the United States, that is what they probably mean $45 billion in direct rev- American companies that do their want to do under this amendment— enues, not including revenues produced business in America and maybe signifi- sure, I would like to do that, if I were when you actually have people in jobs cantly overseas. If you are an Amer- an American company. I don’t want to and people paying taxes who are earn- ican company and you are doing busi- pay taxes, compared with the garden ing the money in those jobs. We have ness in America, let’s say you are variety American company that does some great examples of what busi- doing pretty well. You pay the stand- have to pay taxes. nesses did with that. ard 35-percent corporate rate; that is, if There are a lot of reasons why this is But let me quote Dr. Tyson, who was you are an American company. If you a bad idea. It will not create new jobs. the chairman of President Clinton’s are an American company but you In fact, there is no job creation accord- Council of Economic Advisers. She re- have significant overseas operations, ing to a study, which I can put in the cently wrote a report that said $565 bil- subsidiaries and businesses in the Cay- RECORD, done on the last repatriation lion would be repatriated. The money man Islands and other offshore enti- provision. We also know from the IRS would be brought back to the United ties, under this bill you don’t pay that that most of the dividends in 2004 came States. She believes it could raise $28 35-percent rate that the American com- from tax havens such as Bermuda and billion in investment in renewable en- pany pays that is doing business. You the Cayman Islands and other low tax ergy projects alone, health care initia- pay a much lower rate under this bill jurisdictions such as Ireland and Swit- tives, and broadband deployment. and basically pay 5 percent. I think zerland. These companies took advan- We have bipartisan economists say- that is about it. tage. It is not illegal, but they took ad- ing this is going to work. The only peo- So on the first level, this is totally vantage of the law by parking their op- ple who don’t seem to think this is unfair. Here we are, an American com- erations over in those countries. going to work are the people somehow pany doing business in America. We I do not think we should be reward- inside the walls here in Washington, have to pay the full 35-percent cor- ing bad conduct by enacting this DC who don’t seem to get that if you porate tax rate compared with compa- amendment. This is an enabling kind of have to pay a 35-percent tax, it is bet- nies that have significant revenues amendment. It encourages and enables ter to keep the money overseas. overseas. They bring it back to the future conduct. Where companies One of the great American companies United States, and they only pay 5 per- would say they developed a U.S. pat- is Microsoft. Do you know that Micro- cent. These are companies that are ent, they would sell the patent, put the soft has no exports from the United taking advantage of the current tax cash in an overseas subsidiary in the States. They have a lot of them from laws by bringing it home, especially Cayman Islands, and that sub then Ireland. Guess why. Ireland has a 12.5- bringing back home repatriated in- buys the patent and the money is then percent corporate tax rate. If they pay come. repatriated back. It is very much at that and they want to bring the profit Under our tax laws, income by an the expense of good, solid American back to the United States, they have to American company earned overseas, companies doing business in America. pay a lot of money, up to a 35-percent active income, is not taxed unless it is This amendment will not encourage tax rate. So guess what they do. They brought home to the United States. business to reinvest in America. The

VerDate Nov 24 2008 03:31 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.065 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1412 CONGRESSIONAL RECORD — SENATE February 3, 2009 last evidence shows it did not happen. dence to the contrary. We know what tively in the first 2 years. That is Money is fungible. A lot of it went to happened. Even Joint Tax says in the right. But over 10 years, it is negative stocks and dividend payments. first 2 years we are going to make $5 $30 billion, and a positive score does I yield the floor. billion. The whole notion that these not mean jobs. A positive score just The PRESIDING OFFICER. The Sen- companies are going to bring the means there is more money for Uncle ator from California. money in out of the goodness of their Sam because they are paying a lower Mrs. BOXER. Before the distin- hearts, I wish they would. Believe me, tax rate. But that begs the question: guished chairman of the committee I wish they would. So you will hear What are they going to do with those might leave the floor, he said some more of this attack, and I hope you dollars? I submit, based upon the evi- things that are not true, so I wish to will put it into perspective, because the dence we have from the Congressional point out to him that I am holding in facts are otherwise. Research Service, they do not use it for my hand a report done by Robert J. I yield the floor. new jobs. Past experience indicates, if Shapiro and Aparna Mathur. Robert The PRESIDING OFFICER (Mr. anything, it is that these companies, in Shapiro was a former Under Secretary UDALL of Colorado). The Senator from fact, took this money and cut jobs. of Commerce for Economic Affairs Montana. The PRESIDING OFFICER. The Sen- under Bill Clinton. He says that almost Mr. BAUCUS. Mr. President, I will ator from Nevada. 2 million jobs were created the last speak briefly. I know others want to Mr. ENSIGN. Mr. President, first of time we brought the money home. speak. I asked the Congressional Re- all, there is not fungibility this time. Let’s take a look at that chart again, search Service to investigate this ques- Senator BOXER and I worked very because I think it is worth looking at. tion, and I have a memorandum from closely to make sure there were very He shows where they were created. Job them dated January of this year. It is tight uses of the money, and there is creation or retention: 1.6 million man- from Jane Gravelle, senior specialist in going to be IRS audits afterward to ufacturing. They either retained it or economic policy. Jane Gravelle is a make sure they use the money exactly created it. He goes through how many very respected analyst at the Congres- how the bill specifies. of them were food industry, paper, sional Research Service. This is an The other thing is the distinguished chemical. independent study. She has no ax to I can tell you about Oracle, which chairman of the Finance Committee grind except to just get the facts. was trying to point out the companies was stated by my distinguished cospon- Let me briefly indicate some of the repatriated money and then laid off sor, that Oracle went in and bought findings they have. I will read here: companies that were going downhill workers, and he was trying to point out The following is a list of firms with repa- that was somehow a causative effect. It and were going to be bought up by a triations and job reductions— had nothing to do with it. Ford repatri- foreign company and saved those jobs. Not job additions, ‘‘job reductions’’— I can tell you, because we have the list ated $1 billion almost and laid off 30,000 along with the news source, in order of the to 40,000 employees. OK. Ford had a lot of things that were done. We will take size of the repatriations. The total in repa- a look at Cisco. of other problems. These companies triations for these twelve firms is $140 bil- had a lot of other problems. And then my friend, the chairman of lion, or one third of the total repatriations the committee, talks about these com- of $312 billion reported by the Internal Rev- Hewlett-Packard had huge problems panies as if they are some terrible peo- enue Service. going on, and the repatriation made it ple. Cisco Systems, we should be proud First: a lot better, so they ended up in a short of Cisco Systems. Intel, we should be Pfizer repatriated [in that period] $37 bil- period of time laying off some people, proud of these companies. Cisco lion. According to a New York Times Edi- but in the long run they ended up in- brought back $1.2 billion in 2004. They torial . . . [and lots of other sources] Pfizer creasing American employment over were right here. And it was used to cre- planned to lay off— the next several years because they ate 1,200 R&D engineering jobs in the ‘‘Lay off,’’ not add, ‘‘lay off’’— were in a better financial position. United States. Cisco says they have 10,000 employees. That is the way our companies are today. You could take a lot of other added 8,500 jobs in the United States, I might say, according to Michelle companies during that same period of excluding employees added through ac- Lederer, of Slate Magazine, in an arti- time that did not repatriate a dollar quisitions. cle entitled ‘‘The $104 Billion Refund,’’ and laid off people. So what did repatri- So my friends who are opposing this dated April 13, 2008, Pfizer had a 106,000 ation have to do with anything? are going to stand up and throw out job loss in 2005. Now, the chairman of the Finance the horror stories and numbers. We Merck repatriated $15.9 billion and an- have the studies. It doesn’t take a de- nounced layoffs of 7,000 workers. . . . Committee brought up that it is a question of fairness, that U.S. compa- gree—although I have one—in econom- Not additions—layoffs. ics to understand that if money is sit- nies doing business overseas would ting offshore and it isn’t coming in in Hewlett-Packard repatriated $14.5 billion only have to pay at a 5.25-percent tax with a layoff of 14,500 jobs. 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, Procter and Gamble repatriated $10.7 bil- rate on the money they made overseas, and then in 2005, it jumps up and comes lion . . . and cut jobs by an unspecified while companies in the United States in, gives $18 billion to the Treasury, amount. . . . pay a 35-percent corporate tax rate. and according to Robert Shapiro and We do not know what that number is. Well, I will join you right now in low- ering the corporate tax rate in the Laura Tyson, we see millions of jobs IBM repatriated $9.5 billion; it added only saved, then you can stand up and dem- 400 jobs worldwide out of 345,000 [jobs] but United States. I will join you hand in agog this thing to death. I could do it. eliminated 5 million square feet located in hand to lower it. By the way, if you They are going to demagog this to the United States. . . . lower it, you do not have to do the re- death. But I have the facts. Pepsi Co. repatriated $7.5 billion and laid patriation amendment. As a matter of I also want to say that there were off 200 to 250 Frito Lay workers. . . . fact, they tell us that at somewhere be- abuses the last time. The spirit of the The list goes on in descending order. tween a 20-percent and 25-percent cor- law was not followed. The law was The other amounts are not as great. porate tax rate, you do not have to do weak. That is why this is a very strong So there is ample documentation repatriation because then money can amendment. We tie down what they that companies that have repatriated flow where money would be used most can spend. They have to have mainte- did not add; they laid off. Why? It efficiently, and a lot of this money nance of effort. And any company that makes sense because the money that would come back on its own to the does this must be audited. It is in comes back is fungible. They can use it United States. The problem is, the way there. You show me another amend- for any purpose—any purpose—they the tax structure is set up today, it en- ment that gives a tax break that does want. It is not going to create jobs. courages companies in the United that kind of due diligence. They would like to have it come back States that have invested overseas to My friend can stand up there and say and say it creates jobs, but it does not. keep the money there because it is too it didn’t work the last time and it Now, my good friend from California prohibitive to bring the money back to won’t work this time. We have evi- said: Well, Joint Tax scores this posi- the United States.

VerDate Nov 24 2008 03:31 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.065 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1413 So I ask the rhetorical question, once gift to those companies that move op- mestic investment or employment, again: Is 5.25 percent of $560 billion bet- erations overseas, and then produce that the repatriations did not increase ter than 35 percent of zero or 35 percent overseas, and then have no tax on their domestic investment or employment. of a small number? That is really what profits because those taxes are deferred That is what they say. You cannot we are dealing with here. So whether it until they bring those profits home. show any empirical evidence. Or put it is CRS, whether it is Joint Tax, they Our tax structure says when you bring this way—this is their conclusion, not just do not seem to get it. The outside them home, you should pay the same mine—their conclusion: That empirical economists get it. They understand it. tax as your competitors pay in the evidence does not show an increase in That is why their studies show 2 mil- United States. The companies in the domestic investment or employment lion jobs will be created this time, United States that do not move oper- from what we did last time. Little evi- maybe more than that. Actually, Sha- ations overseas, they pay up to a 35- dence, they say, exists that new invest- piro actually says it will be about 2.6 percent tax. ment was spurred. million jobs created or saved with this By the way, the Senator from Nevada Some outside economists, Foley, amendment. So I think the facts are has an argument. The basic problem is Forbes, wrote the following: Repatri- clearly on our side on this issue. the size of the tax that we impose on ations—they are talking about in Whether it is a fairness issue or what- corporations. That is the fundamental 2004—did not lead to an increase in in- ever, the bottom line is we want to issue. But what the proponents are vestment, employment, or R&D, even help the United States of America. doing is creating a competitive advan- for the firms that lobbied for the tax The last point I will make is, if you tage for those companies that move op- holiday stating those intentions. In- did nothing with this money—abso- erations overseas because they do not stead, a one-dollar increase in repatri- lutely zero—if we required nothing ex- pay the 35-percent tax if they do not ations was associated with an increase cept for the money to come back to the bring back those profits. of approximately one dollar in payouts United States and come in to our Then, we were told 5 years ago: Let’s to shareholders. banks, wouldn’t that be a good thing just, one time—we were assured just Those are outside economists, for once—let them bring back this money right now? Common sense: Our banks what that distinction is worth. When and only hit them for 5 percent. We need capital. We need liquidity in the companies move jobs offshore and they were assured it would be a one-time- United States. Let’s try to follow this make profits overseas, they have a only deal. It would not be repeated, to simple formula: In order to have em- competitive advantage frequently be- use the words of the conference report. cause labor might be cheaper, and that ployees, you must first have employ- Lo and behold, now the proponents— is something we should not encourage, ers. OK. Are you with me so far? In the same proponents—want to repeat that movement of jobs. Our Tax Code order to have employers, you have to this. And what has happened—and this have capital. is not just me saying this; this is the should not give an incentive to the Mr. President, $560 billion in capital CRS saying this—is the companies wait movement of jobs overseas. It does leads to a lot of employees. That is for this opportunity believing that right now because you defer the profit capitalism, folks. You need capital to once again we are going to allow this you make overseas and don’t pay tax have employees. It is a simple formula. kind of repatriation at a much lower on it. That is already an incentive in Let’s get this right. rate. They hold money overseas, await- the Tax Code which, frankly, I don’t I yield the floor. ing the time when they can bring it like, and there may be, hopefully, some The PRESIDING OFFICER. The Sen- back at a 5-percent rate instead of pay- effort to correct that with this admin- ator from Michigan. ing the same tax rate their domestic istration and in this body. But at least Mr. LEVIN. Mr. President, I have competitors pay, which is up to 35 per- when they bring back the profits, they been listening to this debate and I am cent. So this ends up—with this kind of ought to pay the same tax their com- kind of, let’s say, astounded by the ar- repatriation, when we repeat it this petitors pay. guments of the proponents that some- way—being an incentive to keep the The argument is made that they are how or other you can cite the Joint profits overseas, waiting for the time not going to bring back the profits, Tax Committee for how much money when they can be repatriated at the that we lose money to the Treasury. will come into the Treasury for the lower rate. They, the proponents, cite a study— next 2 years and then trash the Joint Now, I want to quote some other in- and I believe they are relying on a cal- Tax Committee for everything else side economists since the distinction culation from the Grant Thornton they say. They are not outside econo- seems to be important to the pro- firm, although I am not sure; that mists, we are told; they are inside ponents, and they are in the CRS. What name has not been used here. But I economists. Yet the facts that the does the CRS say about the 2004 repa- think this is the assessment that is Joint Tax Committee give us for the triation package that was passed? The being relied upon. Here is what Joint years 2009 and 2010 are cited as sup- chairman of the Finance Committee Tax said about that calculation: porting the proponents’ argument be- has quoted the CRS for some of the It ignored the fact that a significant part cause it shows that money comes into data, and I am not going to repeat of the $18 billion in revenues that it attrib- the Treasury during those 2 years, but that. It is pretty powerful as to the uted to that 2004 Act would have been col- in order to sustain their position, they lack of impact in terms of jobs and in lected by Treasury in any event as dividends have to ignore all the rest of the Joint terms of investments from that repa- were paid in the ordinary course of business Tax’s position, which is that this costs over the 10-year budget window. Thus, the triation. They are inside economists, calculation— almost $30 billion in 10 years. yes, but objective economists, inde- And this is Joint Tax speaking— Is it just that the outside economists pendent economists not paid by any- take over the Joint Tax for the last 8 body else to make a study. You can get is not a revenue estimate at all. years? This argument about outside economists, I am sure, who are going When the Joint Committee on Tax- economists, inside economists—there to reach different conclusions on this ation issued its revenue estimate in are economists who differ on things. issue. But these objective, independent 2004 on the impacts of the 2004 repatri- We rely on Joint Tax. These are inde- economists, whom we rely upon— ation—a projection of how much addi- pendent, objective economists whom frankly, I rely on much more than out- tional tax revenue would be generated we have to rely on, and do rely on, not side economists who have all kinds of or lost by that proposal—it projected just for some of the things they say, as connections to all kinds of organiza- $2.8 billion in additional revenue would some of the proponents want to have tions, and no one knows exactly on be generated the first year, but the it, but for what they tell us about this whose payroll they are when they Joint Committee estimated that for amendment. make studies—the Congressional Re- the 5-year budget cycle, 2005 through This amendment will cost us over the search Service, with independent, ob- 2009, the repatriation proposal would first 5 years, $3 billion—that is Joint jective economists, what does it say cost the Treasury money—a loss of $2 Tax—over the 10 years, $28.6 billion. about that 2004 bill? billion, to be exact. The revenue esti- That is a major loss to the Treasury, They say: Imperial evidence is unable mate for the 10-year budget cycle of and we cannot afford it. This is a tax to show a corresponding increase in do- 2005 through 2014 was estimated by the

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That is it seems to me, if anything, should other countries, then this is the legis- what this amendment is. work to the advantage of the inde- lation for you. This is an acceleration Now, the New York Times. The pendent, objective, inside economists of what we have done for far too long drugmakers were the biggest bene- on whom we rely. These are non- and what some of us have tried to cor- ficiaries of the amnesty program—this partisan experts we put in place to give rect for a long time. There is an unbe- is the 2004 program—repatriating about us the very projections which we have lievably pernicious provision in our tax $100 billion in foreign profits and pay- in front of us tonight. Those projec- laws that says: If you have two busi- ing only minimal taxes. That is the tions are mighty clear. Those projec- nesses right across the street from purpose of this amendment. But the tions show, yes, year 1 and 2, there is each other and one of them decides companies did not create many jobs in going to be additional money coming they are going to fire all of their work- return. Instead, since 2005, the Amer- into the Treasury, but then we start ers and move to China, and they both ican drug industry has laid off tens of losing money big time, and we cannot make the same product and sell the thousands of workers in this country. afford to do that. same product in the United States, the I was part of that 2004 debate. I re- Finally, a lot has been said here only thing that is different once they member the claims that were made: Do about the fact that there are going to have moved those jobs to China is the this. Give a special deal to these com- be audits of this—and, indeed, the company that left our country and panies. They will create jobs. Well, the amendment does provide for audits—to fired their workers ended up with a biggest beneficiaries were the big drug try to determine whether the money lower tax bill. What an unbelievable companies. They didn’t create jobs; which comes back into the treasuries thing to have in the middle of our Tax they cut jobs in our country. A success of these companies is spent for the pur- Code. I intend to try to correct that or failure? It seems to me that is a fail- poses that are stated in the amend- with another amendment, by the way. ure, and now we have the same propo- ment. But what the amendment does But this repatriation tax holiday sition back saying: Let’s have another not do is require that those funds be amendment is kind of a cheerleader round of this. amendment for that proposition: Well, spent. There is no time limit saying Hewlett Packard: $14.5 billion in re- we like that; in fact, let’s encourage that the funds must be spent in year 1 patriated profits, 14,500 jobs cut. more of it. or year 2. What it does say is that if Colgate-Palmolive. Motorola. I could Let me straighten out a couple of they are spent, an auditor is going to spend a lot of time, but I got rid of things with facts. Everybody is enti- try to determine that they are spent most of those charts, so just to show an tled to their own opinion but not their for the enumerated purposes. But what example. it doesn’t do is provide the requirement own facts. This is an editorial by the Chat- that those funds be spent in years 1 and First of all, the corporate tax paid in tanooga Times: It shouldn’t escape 2, and that is the purpose of the stim- this country is not 35 percent. That is Americans’ attention—this is 2005— ulus package. The purpose of the stim- a statutory rate. The effective tax rate that U.S. companies have disclosed ulus package is to try to get money paid by corporations in America is plans to repatriate some $206 billion in spent on job creation, and the amend- around 17 percent, not 35 percent. So foreign profits—that is as a result of ment fails in that very fundamental when we talk about it, let’s talk about the 2004 legislation—under a one-time way. It does not require the funds that what is real. All right. So big corpora- tax break allowed by Congress on the are brought back to be spent for the tions on average pay 17 percent. But grounds—you guessed it—that such a identified purposes. It says if they are what we have in this piece of legisla- big break would ignite a strong spurt spent, it must be for those purposes, tion is to say those corporations that in growth. The upshot, of course, is but it doesn’t require that they be have, in many cases, moved their that no such job spurt appears to be spent in year 1 or year 2 or year 3 or plants overseas and made profits over- materializing. Some have even an- year 4 or whenever. When they are seas with the full understanding in our nounced plans to cut domestic oper- spent, they will be audited. That is an tax laws that they will at some point ations and jobs. effort on the part of the proponents to repatriate those profits and then pay Colgate-Palmolive repatriated $800 avoid the problems discovered the last the corporate tax rate on those profits million in foreign profits and cut 4,450 time we did this, but it doesn’t address in our country, this amendment says jobs and shut a third of its plants over the fundamental purpose of a stimulus no, that is not going to be the case. the next 4 years. Even the primary ad- package. What we are going to try to do is say: So it costs us money—that is Joint If you bring them back, you get to pay vocate—and I mention this because my Tax. The last time we did this, which a 5.25-percent tax rate—not a tax rate colleague just mentioned Mr. Allen was supposed to be the last time we that ordinary folks pay, a tax rate that Sinai—even the primary advocate for would do this, according to CRS, it did is almost one-half of the tax rate the the special one-time break, economist not stimulate the creation of jobs, and lowest income folks pay. That is pretty Allen Sinai, is now soft-pedaling his re- it fails to pass the fundamental test unreasonable, in my judgment. Now, duction of 660,000 new jobs over 5 years. that it is not required to be spent for let me just say that in the ranks of bad He now says the efficacy of the tax the enumerated purposes. ideas, the pantheon of bad ideas, this break will be hard to prove. I yield the floor. ranks way up there. It is tired, old, Well, some other thoughts about The PRESIDING OFFICER. The Sen- shopworn, and they try to slide it this. Michael McIntyre, Wayne State ator from North Dakota is recognized. through here with a thick coat of legis- University: There is no evidence that Mr. DORGAN. Mr. President, there lative Vaseline, just sort of slip it all the tax amnesty added a single job to has been a generous amount of discus- through here while we are debating the U.S. economy. sion and debate. In fact, I was sitting how to promote economic recovery in Michael wrote a piece about this in listening to it and curious that my this country. December of 2008. friend from California described those Let me just turn to a few facts, if I Again, Michael McIntyre: Most of the who would speak in opposition as being might. This is the New York Times, repatriated money was used to buy engaged in demagoguery before she Lynnley Browning talking about the back corporate shares and for other ex- heard the opposition. So there is a one-time tax holiday—this isn’t new; penditures favoring management. Not clairvoyance here, I guess, before we we have done this before—in 2004 that exactly something that fits very well have an opportunity to speak on these offered companies the chance to bring in an economic recovery plan. One issues. I will not engage in dema- that money back at a reduced rate of study found that repatriations did not

VerDate Nov 24 2008 03:31 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.070 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1415 lead to an increase in investment, em- folks and we are producing the little know will further deepen the Federal ployment, or R&D. Instead, a $1 in- red wagon in China. budget deficit. crease in repatriations was associated We are doing the same thing with Mr. President, having given full with an increase of approximately $1 in Huffy Bicycles and with Etch A measure and vent to my concern and payouts for shareholders. Sketch. I could talk about a hundred interest, I yield the floor. So much for new jobs. products that are all in China. We gave The PRESIDING OFFICER. The Sen- Professors Clemons and Kinney, them all a tax break to leave. Isn’t ator from California is recognized. Texas A&M research study: On aver- that something? Mrs. BOXER. Mr. President, I love age, firms appear to have responded to This now says to American compa- this debate and I love my colleague the opportunity to reap tax savings nies that own the product that is now from North Dakota. I am going to start provided by the act but did not use the going to be produced in China: If you off by saying I have a 9.2-percent unem- funds to increase domestic investment. bring your money back here, we will ployment rate in my State. People are Finally, Robert Willens, tax and ac- cut your tax rate by 85 percent. struggling and suffering. That is why I counting authority, New York Times There is an old country saying, support this amendment, which I was article: It was basically worked out to ‘‘There is no education in the second proud to work on with Senator ENSIGN, be one big giveaway. The law never kick of a mule.’’ We don’t have to re- Senator BAYH, and Senator SPECTER. took into account the fact that money learn what we knew in 2004. Some of us First, my friend has it wrong. He has is fungible. made the case in 2004 that this was an it absolutely wrong. We are bringing That is the most important point. unbelievably bad idea, that it rewards money home to America. We are not Money is fungible. You can say it will exactly the wrong thing. I am all for sending money out. It is already gone. create jobs; it doesn’t mean anything. tax breaks. I would like to see on this Look what happened the last time we It doesn’t mean a whit. bill a 15-percent investment tax credit did this. The money came home. Now, So here we are in February of 2009, 5 that has an end date to it, which says you can argue theoretically in any way years after the last time the proposal if companies—small businesses and you want, but we have the proof. Here was made to give a very big tax break large businesses—make these invest- it is. We passed a law in 2004 and this by saying to some corporations: You ments now, before July 1 next year, money came home. I say to my friend know what, we have tax rates that we they will get that. I would like to see from Michigan, eloquent on the point want you to pay, but if you are big a big investment tax credit and require of defending the Joint Tax Com- enough and if some of you move jobs investments in the early period. I am mittee—and I ask my friend from Ne- overseas from our country, we will give all for big tax breaks for consumers to vada to back me up on this point. I say you a 5.25-percent tax rate. buy cars and homes. I would like to see to my friend from Michigan, if I can Now, this is the Bismarck, ND, phone people start buying homes and cars get his attention, that we can worship directory. We are not a metropolis and again. I think that would help the re- at the altar of the Joint Tax Com- we don’t have the largest city in the covery. I am not opposed to tax breaks. mittee. I don’t. I don’t because they country, but I could go through this I want us to do things that provide in- were wrong. They were wrong. It is not phone directory and read some names. centives to keep jobs in this country, a theoretical argument. They were We have a lot of Olsens, by the way, to create jobs, and we know—we don’t wrong. and a lot of Schultzes because we are a have to guess—this amendment does Mr. ENSIGN. Will my friend yield for lot of Scandinavians and Germans and exactly the opposite. I have heard num- a question? so on. But I could go through all of bers and studies discussed. This is not Mrs. BOXER. Yes. these names and ask the question: Do rocket science. We have the definitive Mr. ENSIGN. The opponents of this you think Mr. Copeler would like to analysis of what happened in 2004. We measure are saying the Joint Tax pay 5.25 percent income tax? I think so. have an estimate of what this will cost seems to be the experts we should I hope so. How about Mr. Clause? now. trust. Is my friend from California Would he be able to pay 5.25 percent? I We lost jobs in 2004 and forward, and aware, I wonder, that in 2004 when we am sure he would like it if we just cold- this will cost us $29 billion in lost in- were doing this debate, the Joint Tax called him and said: What do you think come now. It will say to any other Committee estimated this measure about this? But no person I am aware company, if you ever think about mov- would decrease revenue by $3 billion? of will be invited by this Senate to say: ing jobs overseas, understand there are But is my friend from California aware We would like to give you a 5.25-per- enough people in Congress who in 2004 this actually produced to the Federal cent income tax rate—just the biggest and 2009 will come up with another idea Government a net of $16 billion in tax companies in America, many of which in 2014 and 2019 that will cut your tax revenue? We were not hurting the Gov- move their jobs overseas, and we say: rate to 51⁄4 percent some day and you ernment revenue but helping it? I fur- We will give you a big fat reward. We will never have to pay your full meas- ther ask, through the Chair, is my will claim that you are going to create ure of income tax on profits as an friend from California aware that the jobs, but we know better because the American corporation. This rewards all Joint Tax Committee, last year, scored studies are clear. of the wrong things. this same measure at $18 billion? This As for the studies that have been I don’t accuse my opponents of year, they scored it $29 billion. Was done about the cost of this, we don’t demagoging. I think they are wrong last year’s estimate right, or was this have to debate that. This loses $29 bil- and they are using bad facts. We dis- year’s right? They were so wrong in lion in 10 years. There is no debate agree about that. I agree that there are 2004 when, by the way, the outside about that. We only have one entity very different opinions on this issue. economists were right. The inside that makes those estimates. This costs One is wrong and one is right. Ours economists were wrong. Was my friend $29 billion in losses over 10 years. happens to be right. There is only one from California aware of those facts? But the major point—which I assume public interest here. The public inter- Mrs. BOXER. I was aware. The Sen- causes the gritting of teeth by those est is demonstrable here, not even a ator is absolutely right. They said it who believe it is demagoguery—is we close question. I hope if we are talking would cost $3 billion from the Treasury have been fighting for years to say to tonight, on a day when 20,000 Ameri- and, in essence, $16 billion was added to American employers: For God’s sake, cans lost their jobs—every day some- the Treasury, and even now they are stay here in this country. Don’t go in body comes home and says, ‘‘Honey, I saying over the first 2 years there will search of 30-cent labor in Shenzhen; lost my job’’—when we are trying to be $5 billion added to the Treasury. My keep your jobs here. And many of them create jobs and restore jobs by creating friends don’t talk about that; they talk said: Tough luck. Take a hike. We are an economic recovery package, we about the long range. leaving. We are going to go produce don’t have people coming to the well of I also say to my friends who oppose Radio Flyer little red wagons in the Senate and saying count me in for us so vociferously, on the other side of Shenzhen, China. Yes, it was produced providing a 85-percent tax cut to big this, you will find very respected in Chicago for decades, years, but companies that moved overseas, that economists who believe that the Boxer- tough luck, we are firing all of those we know will not create jobs and we Ensign-Bayh-Specter amendment

VerDate Nov 24 2008 03:31 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.071 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1416 CONGRESSIONAL RECORD — SENATE February 3, 2009 makes sense. They are Alan Sinai—I was brought up earlier that the money cause Joint Tax says A, B, and C, I say don’t know how my friend says he is going to come back anyway. The to my friend, Joint Tax has been so out backtracked. He said this in December. Senator from California has a chart in to lunch on this. They didn’t even Maybe he backtracked in the last 2 front of her. I ask her if she could ex- come close to what happened. weeks. In December, he said that repa- plain the chart and that the money We can have lots of arguments, but I triation has spurred $280 billion in cap- wasn’t coming back until we lowered can tell you this: Nobody gains in ital investments over a 5-year period, the tax rate. And then it went right America when that money sits off- increased R&D development by $7 bil- back up after we lowered the tax rate. shore. They did not gain in 1997, 1998, lion a year for 5 years, increased Fed- Mrs. BOXER. My friend is so right to 1999, 2001, 2002, 2003, and 2004. We had eral revenue by $82 billion, and will ask that. Sometimes debates are dif- Oracle buying companies that were create or save up to 425,000 jobs by 2012. ficult to follow. They are confusing and failing. We had Cisco Systems expand- Mr. DORGAN. Will the Senator yield complicated. This is not complicated. ing. Yes, we know there were job lay- for a question? We know the way the corporations offs. Of course, we know that. If Pfizer Mrs. BOXER. Yes. were acting before, and we know what has a problem—let’s just say they have Mr. DORGAN. The Senator asked me happened when we took this chance. a drug on the market that is causing a about backtracking. He made the same We got arguments from people here problem, they are going to lay off peo- prediction in 2004 and then back- that money won’t come back and it ple. They are going to have problems. tracked. I predict he will do the same will not be spent here. By the way, this We do not allow funds to be used for dividends. We do not allow funds to be thing. is a tight bill. My friend from Michigan Mrs. BOXER. Joint Tax ought to used for any kind of golden parachutes argues that we don’t force the compa- backtrack. They were flat wrong. They or CEO pay. We do not allow buybacks nies to spend the money. We don’t said maybe $200 billion will come back, of stock. We tighten it up very much. force them to spend the money. I don’t and $360 billion came back. They said I hope we can get to the 60 votes. I even think that is constitutional. But I we would lose money. We wound up am very confident we will get a major- have to tell you this: Even if the with $16 billion added to the Treasury. ity. I hope we get to the 60 votes. It money sat in American banks, I say to So it is very easy to demagog. It is sends a good message. The message is my friend from Nevada, who is my pal very easy. But my friend has it wrong. we do not like money sitting offshore. Then my friend says that effectively on this one, wouldn’t that be in and of We want to bring it home and help the the corporate rate is only 17 percent. itself a reason to do this? We are banks. We want to bring it home and Well, if that is true, then this is less of breaking the backs of taxpayers to help the workers. We want to bring it a tax break than he is making it out to take $770 billion, I think it is, through home and invest it in America. That is be. You cannot have it both ways and TARP to capitalize our banks. As my why it is called repatriation. You can say, look at this giant tax break and friend says, if they don’t spend the get up and you can make every argu- then say the effective rate is 17 per- money right away, they let it sit in ment in the book, but when you do, I cent. I suggest to my friend, as he went these banks that need this capital and, think you have to explain to people through the phone book in his State, hopefully, they will start lending, why economists such as Laura Tyson, thank goodness, because of the work of which we hope will happen so we can Allen Sinai, Robert Shapiro are very this Congress, people in the $40,000 to get back to an orderly market. It will clear, why they say that Joint Tax was $50,000 range don’t pay any taxes. make the banks healthier. off, why they say that even the last bill I will tell you something. I am rarely My view is that this year there is that was not as strong as this actually standing up here and saying a tax cut more of a reason to do it than ever be- created and saved jobs, and why they to the business community is stimula- fore—the terrible recession. We have a predict that if we do this, it will stimu- tive. But this one is, because it was tight bill that will only allow this tax late the economy. stimulative. We have it right here from break to be utilized if the money is I know my friends would like to have Robert Shapiro, who worked for Bill used to create jobs, where they bring a time agreement. I have no problem Clinton. He said that jobs saved or cre- the money home. That is it. Otherwise, with that whatsoever. If there is to be ated were 1.6 million from the last tax they cannot get the break. We have a a time agreement, Senator ENSIGN and break. So my friends come here and forced audit in here, and I defy my I are very happy to agree to it as long quote Joint Tax as if we have to say friends to find another piece of legisla- as we have full measure to respond to they are right, when they were wrong— tion that has such an audit—a forced speakers. just wrong—wrong on estimating what audit. The PRESIDING OFFICER. The Sen- would come back, wrong on estimating Mr. ENSIGN. Will my friend yield for ator from Montana. Mr. BAUCUS. Mr. President, I ask what would come into the Treasury. If a question? unanimous consent that the time until you read these economists, whom I Mrs. BOXER. I am happy to, yes. 8:15 p.m. be for debate with respect to have heard colleagues on this side Mr. ENSIGN. A big deal has been made of which economists we can the Boxer-Ensign amendment No. 112, quote constantly—Laura Tyson, Alan with the time equally divided and con- Sinai, and Robert Shapiro—they are trust. I ask my friend from California, trolled by Senators BOXER and BAUCUS saying how to stimulate the economy, when Joint Tax scored this last time, not only were they wrong on revenue or their designees, and that no amend- and this is one way to do it. To stand ment be in order to the amendment up here and be against it is fine. I don’t estimates, but they estimated that about $100 billion or so would come prior to a vote in relation to the mind that one bit. But to stand up here amendment; further, that the Vitter and be against it because you were for back to the United States. The outside economists estimated between $300 bil- amendment No. 179 not be divisible. the fact that there are corporations Mr. LEVIN. Reserving the right to lion and $400 billion would come back that have earnings offshore, I abhor object, I believe a point of order lies to the United States. According to CRS that, too. I want to bring them home. against this amendment. Does that this time, according to the study the No matter what my colleagues say, preclude—— guess what. This is a free marketplace, chairman of the Finance Committee Mr. BAUCUS. No. and they don’t have to and they won’t quoted, $360 billion came back and $312 The PRESIDING OFFICER. Without unless they have an incentive. That is billion was used according to the meas- objection, it is so ordered. a fact. We may wish it to be another ures we put in the bill. Was she aware Mr. BAUCUS. Mr. President, I might way. that the Joint Tax Committee was that add, I ask unanimous consent that pro- Look at this chart. Year after year far off on their estimates, not only on vided further, at 8:15 p.m., the Senate after year, very little came back. When revenues produced but on how much proceed to vote in relation to the Boxer we took action, all of this came back. money could come back? amendment. The reports are in from these econo- Mrs. BOXER. Mr. President, that is The PRESIDING OFFICER. Is there mists—and most happen to be Demo- right. My understanding is they were objection? crats—that it worked. way off by more than $100 billion. So Mrs. BOXER. Reserving the right to Mr. ENSIGN. Mr. President, I ask my for us to say: Oh, my God, don’t vote object, I don’t understand what we are friend from California this question. It for the Boxer-Ensign amendment be- doing.

VerDate Nov 24 2008 04:48 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.076 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1417 Mr. BAUCUS. We are going to vote at I strongly oppose the amendment. I ably wrong again. As a matter of fact, 8:15 p.m. and the time is equally di- hope my colleagues will vote against I cannot even believe the last year they vided. it. I am one of those who voted for it scored a repatriation bill with a larger The PRESIDING OFFICER. The Sen- the first time we did it because I be- scope at around $15.9 billion. This year ator from California. lieved what was said at that time, they are scoring a more narrowly tai- Mrs. BOXER. I would agree to that, which was it was a one-time tax holi- lored version at almost $29 billion. In happily, if we can have 1 minute prior day. I did not realize that every 4 or 5 one year, they are that far off, and to the vote to restate. years we were going to be faced with they were totally wrong back in 2004. Mr. BAUCUS. The Senator controls another proposal to do the same thing. The outside economists are saying time so she can get that 1 minute. That If we want to redo the corporate tax this is going to save or create over 2 is a gentleman’s agreement, or gentle- rate, that is a good debate. We ought to million jobs. Isn’t that what we are lady. have that debate. We ought to have it about, trying to create and save jobs in The PRESIDING OFFICER. Without in the Finance Committee. But we this bill? This particular amendment, objection, it is so ordered. should not be in a de facto way pro- even if it did cost the money Joint Tax Mr. BAUCUS. Mr. President, I yield 5 viding for a 5.25-percent corporate tax is saying, creates more jobs for the dol- minutes to the Senator from New Mex- rate for anyone who is willing to earn lar than anything else in this entire ico. their profits overseas. stimulus package. The PRESIDING OFFICER. The Sen- Mr. President, I yield the floor. We ought to adopt this amendment. ator from New Mexico. The PRESIDING OFFICER. Who It is common sense, and we ought to Mr. BINGAMAN. Mr. President, part yields time? put common sense to work when we are of this discussion has been what mes- Mrs. BOXER. I yield to Senator EN- trying to save the U.S economy. sage does this amendment send. I will SIGN for as much time as he may con- I reserve the remainder of our time. tell you what message it would send to sume. The PRESIDING OFFICER. The Sen- me if we adopt this amendment. It The PRESIDING OFFICER. The Sen- ator from Montana. sends a message to all corporations ator from Nevada. Mr. BAUCUS. Mr. President, I yield 4 that do business overseas that they are Mr. ENSIGN. Mr. President, I wish to minutes to the Senator from Massa- never going to have to pay the regular make a couple points. Once again, I chusetts, Mr. KERRY. corporate tax in this country on any wish to get back to some common The PRESIDING OFFICER. The Sen- earnings overseas. They are going to sense. Is it better for the money to be ator from Massachusetts. have to pay those on earnings in this overseas, or is it better for the money Mr. KERRY. Mr. President, I thank country. If they keep a plant here and to be in the United States? If it is over- the Finance Committee chairman. Let keep hiring people here, they are going seas, it creates jobs. If it is in the me suggest to colleagues why this is to have to pay the regular corporate United States, it can create jobs in the not common sense, and I think experi- tax rate. But if they move those oper- United States. That is the bottom line. ence tells us it is not common sense on ations overseas, then they will be as- On the chart my friend from Cali- this bill at this time, where the pur- sured, with pretty good certainty, that fornia showed earlier, the money was pose is to create jobs and to try to get every 4 or 5 years, Congress is going to not coming back to the United States the maximum return on our invest- come along and give them a 5.25-per- in any significant amounts until we ment of the American taxpayers’ dol- cent tax rate that they can bring those passed the 2004 ‘‘Invest in the USA lar. profits back with. I think that is a ter- Act.’’ And then the next year, $360 bil- The fact is, I voted for this, too, back rible message for us to be sending to lion came back to the United States. in 2004. This was the America Jobs Cre- U.S. corporations. After that, it went back down as far as ation Act of 2004. At the time, it was Part of the discussion has also been the money coming back into the argued that this was going to create that U.S. corporations have to pay too United States. jobs. I, personally, believe in macro tax much in taxes. I know Senator DORGAN By common sense, we have to know policy. If we were reforming tax policy, said the effective tax rate, in his view, that the money is not going to come it might make sense to suggest that re- was 17 percent. I asked research to be back to the United States. By doing patriated profits ought to be taxed at a done, and I want to show this chart so this, we are not encouraging companies lower rate as part of a broader tax re- people can know what it says. The to go overseas. Quite frankly—and I form and that policy of deferral ought source for this information is the Orga- said to my friend, the chairman of the to be revisited but not as part of this nization for Economic Cooperation and Finance Committee—if he wants to legislation. Development, OECD. What this shows lower the corporate tax rate, I would The reason for that is very simple. is that the effective corporate tax rate join him right now. As a matter of fact, During the 1-year period during which in this country—this is on profits gen- I may be offering an amendment to do U.S. multinational corporations were erated in this country—the effective that because I believe that our cor- able to bring profits back at a lower corporate tax rate is 13.4 percent. The porate tax rate, being the second high- rate, the result was simply not what average OECD corporate tax rate is 16.1 est in the industrialized world, is too was promised by the supporters. Yes, it percent. We are way down on the list high, and it encourages other compa- did result in a substantial increase in compared to most other industrial nies to go overseas. But we cannot do the repatriation, but it did not increase countries we compete against as far as that. We do not have enough bipartisan domestic investment or employment, the level of corporate tax we impose. support to do that. and that is the measure by which we This amendment would say that this Here we have a bipartisan measure. ought to be making a judgment. 13.4 percent is too high. What we need Very few things happen on this bill in The 2004 provision resulted in $312 to do is say if you are going to gen- a bipartisan way. This is truly bipar- billion being repatriated. In fact, one- erate your profits overseas, we are tisan. The four sponsors of this amend- third of all offshore earnings was repa- going to give you a special deal. As an ment—two Democrats, two Repub- triated. Ten firms accounted for about incentive to put more of your oper- licans—are working together. The last 42 percent of that repatriation. ations overseas, we are going to give time this bill passed the Senate was a The fact is that many of the firms you a 5.25-percent tax rate on the prof- 75-to-25 bipartisan vote. That should that benefited from this during that its you generate over there. To me that show us right now a lot of people period of time laid off workers after is just contrary to exactly what we are looked at this and said it was a good they brought that money back. They trying to do with this underlying legis- idea, and a lot of people are looking at passed on the benefits to their share- lation. The purpose of this legislation this again. It is a good idea because it holders. Pfizer repatriated approxi- should be to stimulate job creation in makes common sense to bring money mately $37 billion and cut 3,500 jobs in this country. This amendment, to my back into the United States to create 2005. Another company that benefited mind, has the opposite effect. It pro- jobs in the United States. cut 7,000 jobs. motes and incentivizes companies to I will just say, if Joint Tax was So the bottom line is, common sense move their jobs overseas. wrong a few years ago, they are prob- tells you, if you tried something once

VerDate Nov 24 2008 03:31 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.079 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1418 CONGRESSIONAL RECORD — SENATE February 3, 2009 and it didn’t work, don’t repeat the by Robert Schapiro, Under Secretary of The PRESIDING OFFICER. The Sen- same mistake. Commerce under Bill Clinton, in which ator has used 5 minutes. Secondly, with respect to what the he points out that 1.6 million jobs were Mrs. BOXER. I will take 1 more Senator from New Mexico said, don’t in fact created or retained, just in minute. Then I will retain. repeat a mistake so soon after you manufacturing; 102,000 jobs in whole- So I love a debate, but I would like to have already made it so that the mes- sale and retail; in transportation he debate on the facts. The facts are that sage to everybody is: Oh, you can go goes on and shows all the different jobs this is what happened until we had the overseas, you can create any company that were created for a total of 2.1 mil- tax holiday. Now there is a new hue you want and, eventually, Congress is lion jobs. Now, does that mean every and cry: You did it in 2004; never do it going to fold and wind up giving you a company added jobs? No, some didn’t, again. Well, I think it is a good thing much lower tax rate when you bring it but it has nothing to do with this. that Oracle bought up two or three home. So the fact is, when my colleagues companies that were going to go belly Moreover, the provisions in here that stand up and say, why are we doing up and that were going to be bought suggest there is some limitation on this when it was such an utter failure, out by a foreign competitor. I think how the money is going to be spent do well, take your argument to Laura that was good. I think it was good that not get the job done. One of the limita- Tyson, take your argument to Allen Cisco Systems added so many jobs— tions is that you put it into research Sinai, take your argument to Robert more than 1,000 new jobs. and development. You have an existing Schapiro and show them where they So when my friends stand and they research and development entity that are wrong. lament the loss of jobs, I lament every doesn’t create a job, certainly not in Then we are told Joint Tax has to be job loss in this country. And I say to the near term. You also can do acquisi- paid attention to. They were dead Cisco Systems: Good for you. You tions of a business entity for the pur- wrong the last time. I mean, they said brought the money in and you did the pose of retaining and creating jobs. maybe we would have $100 billion come right thing. Did every company do That could be just about anything. You in, maybe up to $200 billion. Well, $360 that? No. That is why we have tight- can argue that is the purpose, but it billion came in. They were way off on ened up this bill. doesn’t necessarily have the impact the revenues. The revenues they said I thank the Chair, and I reserve the and there is absolutely no enforcement would come in—it was $16 billion that remainder of my time. mechanism and no way to measure it. came into Treasury. They said it would The PRESIDING OFFICER. Who At a time when we are fighting over cost $3 billion. So they were wrong. So yields time? diminished resources and what we are how can we stand here and try to de- Mr. BAUCUS. Mr. President, I yield 4 going to do, it seems to me this provi- feat this measure? minutes to the Senator from North Da- sion is simply not going to guarantee Now, my friend from Massachusetts kota. us the kind of provision of jobs we says this isn’t the time or the place or Mr. DORGAN. Mr. President, I don’t need. Past history shows that very few the bill and so forth. This is a moment know what people are to think when companies actually benefit. we can respond to this recession. We they watch this or hear this debate—he I think having this tax holiday again are going to do it in many other ways, said, she said, they said, we said. At so soon without broader tax reform is and I will be supporting things and op- the end, the question is, What is real? not the way we ought to be approach- posing things, but let me just read to What are the facts? So let me see if I ing this issue. you from Robert Schapiro’s report—re- can uncomplicate this. By almost every measurement, I sug- member, a Bill Clinton Commerce This isn’t like trying to connect two gest to my colleagues that common Under Secretary. plates of spaghetti. This is a place of sense says this is not the time, this is public interest about what should we not the piece of legislation, and this is As President Obama and Congress expand the catalogue of measures to help stabilize do to try to create jobs in this country. not the plan to put people to work. the financial system and address the eco- My colleagues say we are worried be- I yield back whatever time I have to nomic decline, a major untapped resource cause there is so much foreign income the chairman. sits on the balance sheets of the foreign sub- overseas. That is not our worry. Our Mrs. BOXER. Mr. President, can you sidiaries of U.S. multinational corporations. worry is that they have decided to take tell me how much time remains on These subsidiaries hold up to $1 trillion in hundreds and hundreds of billions of each side? past earnings because current U.S. law defers The PRESIDING OFFICER. The Sen- U.S. corporate tax on those profits until overseas income that is required to pay ator from California has 10 minutes 6 they repatriate. If those earnings were trans- an income tax when it comes back to seconds. The Senator from Montana ferred to the parent companies in the United this country and have said let’s give has 5 minutes 34 seconds. States, they could find substantial new cap- those companies an 85-percent tax cut Mrs. BOXER. Mr. President, if you ital investment and employment and provide if they do what they had previously additional liquidity to the strapped U.S. fi- promised they were going to have to do could tell me when I use 5 minutes, nancial system as companies reduce their please. anyway, and that is repatriate this in- domestic debt. In principal, the earnings cur- come. That is what we are concerned The PRESIDING OFFICER. The Sen- rently held abroad would provide significant ator will be notified. economic stimulus and financial market li- about. Mrs. BOXER. Mr. President, people quidity if a change in government policy So let me see if I can put it in the stand and argue against this amend- could induce U.S. multinationals to prompt- frame of a company—Huffy bicycles. A ment, and they say things that are not ly repatriate them and use them for des- lot of people worked at Huffy bicycles factual. They have every right to say ignated purposes. for a long time. They made $11 an hour it. I protect and defend their right to So my friends stand here and make making Huffy bicycles, sold in Wal- say it, but they are not factual. an argument about how horrible it is Mart, Sears, and Kmart, capturing 20 Now, Senator KERRY said there is no that these companies have money percent of the American bicycle mar- proof that any jobs were created. Well, abroad, and I agree. I am upset about ket. But they all got fired. They all Allen Sinai, Robert Schapiro, and it. I was upset in 1997 about it. I was lost their job because that company Laura Tyson have all said jobs were upset in 1998 about it. I was upset in moved to China in search of 30-cent created and jobs will be created. Sen- 1999, 2000, 2001, 2002, and 2003. Finally, labor in Shenzhen, China. The last day ator KERRY said, in his forceful argu- in 2004, Senator ENSIGN and I got to- of work at the Huffy plant in Ohio, the ment against this amendment, that gether and we said: Let’s see if we can workers, as they left their jobs and companies simply didn’t do anything, get that money home. So for my col- pulled out of their parking space, left a and now if they do R&D it will simply leagues who are lamenting the fact pair of empty shoes where their car replace what R&D they were going to that this money is abroad, we say: Join used to park. Their jobs were gone, but do. We don’t allow this to happen. It with us; bring it home. it was the only way they could say to has to be new spending, maintenance of If you are saying the effective rate is their employer, who moved their jobs effort must continue. 17 percent, if we can bring it in at 5.25 to China: You can ship our jobs over- I want to call to my colleagues’ at- percent, that is less of a loss to the seas, but, by God, you are not going to tention to the report that was issued Treasury. fill our shoes. That was the plaintiff

VerDate Nov 24 2008 03:31 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.080 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1419 cry of all the folks who lost their jobs In fact, if this happens—it happened 5 Robert Schapiro, Under Secretary of who loved to make bicycles. years ago—if it happens now and it Commerce under Bill Clinton: Guess what. Our Tax Code gives a tax happens 5 years from now, every com- The earnings currently held abroad would break for shipping those jobs overseas. pany will understand, you can move provide significant economic stimulus and fi- This amendment continues that very jobs overseas and you will never ever nancial market liquidity if a change in gov- approach and says: By the way, if you have to pay the corporate tax rate ernment policy could induce U.S. multi- ship your jobs overseas and then repa- when you bring foreign earnings back. nationals to promptly repatriate them and triate the income from what you have You will always have somebody stand- use them for certain purposes. earned overseas, we will give you an 85- ing up to say we have a sweetheart deal You know, here it is. If you want to percent tax break. for you. get the break, these are the things you I am telling you, it makes no sense. Oh, it doesn’t apply to the Joneses or have to do. You have to hire workers. There is no evidence anywhere, no mat- the Olsens or the Larsons or the You have to use it for research and de- ter what charts you put up, that this Christiansens, it just applies to the big velopment, for capital improvements. created jobs in 2004. It did not. It cost companies that decided to park that You have to acquire distressed compa- jobs. Allen Sinai, noted economist, yes, income overseas. I say this: How about nies and clean energy investments. he made the same claims then, and a 5.25-percent income tax rate for every Look, my friends. The world is the then backpedaled. He makes the same American, rather than just a few of the way the world is. I think Senator EN- claims now. But let’s talk a year or so biggest companies? How about all of us SIGN and I, Senator BAYH, and Senator from now, and he will backpedal again. get a chance to get some of this 5.25 SPECTER are realists. Yes, in many The fact is, this is a giant tax break percent income tax rate? I don’t think ways I would like to think I am an to some of the largest companies that that is being proposed. Let me propose idealist. I don’t like the fact that these cut their tax bill by 85 percent without that. companies are keeping their money any evidence they will create jobs. In The PRESIDING OFFICER. The Sen- abroad. But guess what. They are not fact, exactly the opposite evidence ex- ator has used 4 minutes. going to bring the money back because ists because we have experienced it, Mrs. BOXER. Mr. President, how BYRON DORGAN or BARBARA BOXER and we lost jobs as a result. This also much time remains? comes on the floor of the Senate and will cost the American taxpayers $29 The PRESIDING OFFICER. The Sen- says: Please be good. Please be good. billion in lost tax revenue at a time ator from California has 3 minutes 59 We need the capital in our banks. We when we are up to our neck in debt. seconds remaining. need the capital to create jobs. So you know, let’s think of what we Mrs. BOXER. We will call it 4, and I We need to make it profitable for are debating. We are debating an eco- will take 2 and yield 2 to my friend, them, and that is what we are doing. nomic recovery program. We are going and we will close. We did it before. to promote recovery by dragging out a First of all, this isn’t a shop-worn ar- Mr. President, I ask unanimous con- shop-worn, tired old argument that the gument. This is an argument that is sent to have printed in the RECORD a way to do that is to give an 85-percent going to create jobs, if we win it. Who chart that was done by Mr. Schapiro tax cut to companies that have earned says it? Laura Tyson: proving that 2.1 million jobs the last income overseas, many of whom have Repatriation policy provides a short-run time were either created or saved. fired their American workers and stimulus and would make funds available to There being no objection, the mate- shipped the jobs overseas. I don’t think support the domestic operations of U.S. com- rial was ordered to be printed in the that makes any sense at all. panies quickly. RECORD, as follows: TABLE 3: EMPLOYMENT EFFECTS OF REPATRIATED FUNDS UNDER THE 2004 ACT

Average Job creation annual wage or retention

Manufacturing ...... $34,241 1,694,372 Food Manufacturing ...... 26,497 153,100 Paper Manufacturing ...... 39,215 36,284 Chemical Manufacturing ...... 42,626 648,585 Basic Chemical ...... 53,873 20,507 Pharmaceutical & Medicine ...... 46,383 489,820 Plastic & Rubber Products ...... 30,683 5,969 Primary Metal ...... 41,589 2,648 Fabricated Metal Product ...... 32,698 33,832 Machinery ...... 36,371 33,851 Computer & Electronic Equipment ...... 36,290 364,339 Computer & Peripheral Equipment ...... 43,713 179,944 Semiconductor & Electronic Component ...... 33,987 91,830 Electrical Equipment, Appliance & Component ...... 31,564 29,880 Transportation Equipment ...... 47,453 49,647 Wholesale and Retail Trade ...... 28,857 102,504 Wholesale trade, Durables ...... 36,496 29,261 Wholesale trade, Nondurables ...... 30,775 29,226 Retail Trade ...... 19,299 51,328 Transportation & Warehousing ...... 31,971 6,605 Information ...... 40,417 75,130 Software Publishers ...... 69,782 27,213 Finance, Insurance, Real Estate, Rental & Leasing ...... 29,620 92,524 Insurance & Related Activities ...... 39,309 16,021 Professional, Scientific & Technical Services ...... 31,073 20,281 Management of Companies ...... 42,785 37,758 Other Services and Industries ...... 22,679 115,747 Total ...... $32,705 2,144,921

Mrs. BOXER. Mr. President, I yield Senator from New Mexico said he voted Both the Senators from North Da- the remainder of my time to my col- for it last time; it is a bad idea, and he kota and New Mexico have stated the league, Senator ENSIGN. is going to vote against it this time. I fact that this amendment is going to Mr. ENSIGN. Mr. President, how think the Senator from Massachusetts encourage companies to go overseas. much time is on the opposition side? said the same thing: He voted for it That is true. But the effect is even The PRESIDING OFFICER. The op- last time, he learned it is a bad idea, it more pernicious than that. This position has 11⁄2 minutes remaining. didn’t work, and he is voting against it amendment encourages companies to Mr. BAUCUS. I will take it. this time. I confess, Mr. President, I go to low-tax jurisdiction countries, The PRESIDING OFFICER. The Sen- am in that same situation. I voted for such as the Cayman Islands and the ator from Montana is recognized. this last time, it is a bad idea, it didn’t Bahamas. Why? Because, currently, an Mr. BAUCUS. Mr. President, there is work, and I am very much opposed to American company that has operations a parade of repentant sinners here. The it this time. overseas, say the U.K., it pays the U.K.

VerDate Nov 24 2008 03:31 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.081 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1420 CONGRESSIONAL RECORD — SENATE February 3, 2009 tax. It does not pay the American tax Mr. LEVIN. Mr. President, I com- sen and sworn having not voted in the until it is brought back, with the U.K. mend to the attention of my colleagues affirmative, the motion is rejected. tax offsetting the American tax. That the Congressional Research Service re- The point of order is sustained, and the is standard law. Under this amend- port R40178, ‘‘Tax Cuts on Repatriation amendment falls. ment, because the income coming back Earnings as Economic Stimulus: An Mr. REID. Mr. President, I suggest will be at a very low rate—5 percent— Economic Analysis,’’ that indicates the absence of a quorum. there is no incentive for these compa- what little evidence there was about The PRESIDING OFFICER. The nies to go to a higher jurisdiction new investments from the 2004 deci- clerk will call the roll. country because there is no need to off- sion, which is available at The assistant legislative clerk pro- set. Rather, there is an incentive to go www.crs.gov. ceeded to call the roll. to the lower jurisdiction country—a The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The Sen- low-tax jurisdiction country—because ator from Montana is recognized. ator from Pennsylvania is recognized. the tax rate is so low, such as the Cay- Mr. BAUCUS. Mr. President, I raise a Mr. SPECTER. Mr. President, I ask man Islands or the Bahamas, and all point of order that the pending amend- unanimous consent that the order for that. ment violates the pay-as-you-go sec- the quorum call be rescinded. So not only does it encourage compa- tion of S. Con. Res. 21, the concurrent The PRESIDING OFFICER. Without nies to go overseas, it encourages them resolution on the budget for fiscal year objection, it is so ordered. to go to low income tax countries such 2008. Mr. SPECTER. Mr. President, the as the Cayman Islands and the Baha- Mrs. BOXER. Mr. President, I move status of the pending amendments of- mas. This is a bad amendment, and I to waive the relevant section and ask fered by the Senator from Iowa and urge its defeat. myself is a procedural snarl. I want to The PRESIDING OFFICER. The Sen- for the yeas and nays. Mr. BAUCUS. I ask for the yeas and get the $6.5 billion appropriated for ator’s time has expired. The Senator NIH. I am going to withdraw my from Nevada is recognized. nays. amendment and join with Senator HAR- Mr. ENSIGN. Mr. President, first of The PRESIDING OFFICER. Is there a KIN on the amendment for $6.5 billion all, to set the record straight, Senators sufficient second on the motion to for NIH without an offset. BINGAMAN and KERRY both voted no the waive? last time. There is a sufficient second. AMENDMENT NO. 101 WITHDRAWN Several other things. The Senator The question is on agreeing to the The PRESIDING OFFICER. Is the from North Dakota said he would like motion. Senator seeking to withdraw his all Americans to pay a 5-percent in- The clerk will call the roll. amendment at this time? come tax, such as in this bill. Well, The legislative clerk called the roll. Mr. SPECTER. I am. that means that he would raise taxes Mr. DURBIN. I announce that the The PRESIDING OFFICER. Without on 40 million Americans who pay no in- Senator from Massachusetts (Mr. KEN- objection, it is so ordered. come tax today. Let’s get the facts NEDY) is necessarily absent. The Senator from Nevada. clear. Last time, $360 billion came back Mr. KYL. The following Senator is Mr. ENSIGN. Mr. President, what is into the country and created about 2 necessarily absent: the Senator from the regular order? million jobs. This time, more money is New Hampshire (Mr. GREGG). AMENDMENT NO. 178 going to come back. Almost double, The PRESIDING OFFICER. Are there The PRESIDING OFFICER. The about $565 billion the estimates are, is any other Senators in the Chamber de- question is on agreeing to amendment going to come back this time. We have siring to vote? No. 178, offered by Senator HARKIN of to ask ourselves this commonsense The yeas and nays resulted—yeas 42, Iowa. question. nays 55, as follows: Mr. ENSIGN. Is it subject to a point The opponents would argue the [Rollcall Vote No. 36 Leg.] of order? I believe it is, and I make a money came back last time and no jobs YEAS—42 budget point of order. were created. From a commonsense Akaka Crapo McCain The PRESIDING OFFICER. The cur- perspective, if the companies did not Alexander DeMint McConnell rent version, as modified, does contain do anything that they said they were Bayh Ensign Nelson (NE) the element the Senator asked about. going to do last time, if money is in Bennett Feinstein Pryor Mr. ENSIGN. I raise a point of order the United States—you need capital to Bond Graham Reid Boxer Hatch Risch on this amendment. create jobs. Right now we have a bank- Brownback Hutchison Roberts Mr. HARKIN. Mr. President, I move ing system that does not have capital. Bunning Inhofe Shelby to waive the relevant parts of the Capital markets are shut down. Guess Burr Isakson Specter Budget Act and ask for the yeas and what? Jobs are not being created be- Chambliss Johanns Thune Coburn Kyl Vitter nays. cause there is no capital to invest to Cochran Lieberman Voinovich The PRESIDING OFFICER. Is there a create jobs. Corker Lugar Warner sufficient second? If $360 billion came back last time Cornyn Martinez Wicker Mr. ENSIGN. I suggest the absence of and $565 billion is going to come back NAYS—55 a quorum. this time, doesn’t anybody with any Barrasso Gillibrand Murkowski The PRESIDING OFFICER. Is there a kind of common sense know jobs are Baucus Grassley Murray sufficient second? going to be created with that? We have Begich Hagan Nelson (FL) There is a sufficient second. to get real. Put your thinking caps on. Bennet Harkin Reed Bingaman Inouye Rockefeller The yeas and nays were ordered. I don’t care what Joint Tax says. I Brown Johnson Mr. ENSIGN. I suggest the absence of don’t care what the CRS says. Put your Sanders Burris Kaufman Schumer a quorum. commonsense thinking cap on, and we Byrd Kerry Sessions Cantwell Klobuchar The PRESIDING OFFICER. The are going to have a good piece of legis- Shaheen Cardin Kohl clerk will call the roll to ascertain the lation if we adopt this amendment. Snowe Carper Landrieu presence of a quorum. I encourage all of us to vote in a bi- Stabenow Casey Lautenberg The assistant legislative clerk pro- partisan fashion for this bipartisan Collins Leahy Tester Udall (CO) ceeded to call the roll. amendment. I yield the floor and ask Conrad Levin Dodd Lincoln Udall (NM) Mr. REID. Mr. President, I ask unan- for the yeas and nays. Dorgan McCaskill Webb The PRESIDING OFFICER. Is there a imous consent that the order for the Durbin Menendez Whitehouse quorum call be rescinded. sufficient second? Enzi Merkley Wyden There is a sufficient second. Feingold Mikulski The PRESIDING OFFICER. Without objection, it is so ordered. The yeas and nays were ordered. NOT VOTING—2 The PRESIDING OFFICER. The Sen- Mr. REID. I ask unanimous consent ator from Montana is recognized. Gregg Kennedy that the order for the yeas and nays be Mr. BAUCUS. Mr. President, the Sen- The PRESIDING OFFICER. On this vitiated. ator from Michigan wishes to enter vote, the ayes are 42, the nays are 55. The PRESIDING OFFICER. Without something in the RECORD. Three-fifths of the Senators duly cho- objection, it is so ordered.

VerDate Nov 24 2008 03:31 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.083 S03FEPT1 wwoods2 on PRODPC68 with SENATE February 3, 2009 CONGRESSIONAL RECORD — SENATE S1421 Mr. REID. I ask unanimous consent would look toward when they want to ‘‘(B) JOINT PURCHASE.—In the case of a pur- that the point of order be vitiated. get out of here, having done a decent chase of a qualified principal residence by 2 The PRESIDING OFFICER. Without job in completing this most important or more unmarried individuals or by 2 mar- objection, it is so ordered. ried individuals filing separately, no credit legislation. shall be allowed under this section if a credit The question is on agreeing to AMENDMENT NO. 106 TO AMENDMENT NO. 98 under this section has been allowed to any of amendment No. 178, as modified. The PRESIDING OFFICER. The Sen- such individuals in any taxable year with re- The amendment (No. 178), as modi- ator from Georgia is recognized. spect to the purchase of any other qualified fied, was agreed to. Mr. ISAKSON. I ask unanimous con- principal residence. Mr. SCHUMER. Mr. President, I sent to set aside the pending amend- ‘‘(c) QUALIFIED PRINCIPAL RESIDENCE.—For move to reconsider the vote. ment for the purposes of calling up purposes of this section, the term ‘qualified Mr. INOUYE. I move to lay that mo- principal residence’ means a single-family amendment No. 106. residence that is purchased to be the prin- tion on the table. The PRESIDING OFFICER. Without cipal residence of the purchaser. The motion to lay on the table was objection, it is so ordered. ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No credit agreed to. The clerk will report. shall be allowed under this section for any Mr. REID. Mr. President, that was The assistant legislative clerk read purchase for which a credit is allowed under the last rollcall vote tonight. There as follows: section 36 or section 1400C. ‘‘(e) SPECIAL RULES.— will be a number of amendments of- The Senator from Georgia [Mr. ISAKSON], fered tonight. In fact, it is my under- ‘‘(1) JOINT PURCHASE.— for himself, and Mr. LIEBERMAN, proposes an ‘‘(A) MARRIED INDIVIDUALS FILING SEPA- standing that Senator FEINGOLD has an amendment numbered 106 to amendment No. RATELY.—In the case of 2 married individuals amendment he wants to offer regarding 98. filing separately, subsection (a) shall be ap- earmarks. The next Republican amend- Mr. ISAKSON. I ask unanimous con- plied to each such individual by substituting ment will be an Isakson amendment re- sent that reading of the amendment be ‘$7,500’ for ‘$15,000’ in subsection (a)(1). garding housing. dispensed with. ‘‘(B) UNMARRIED INDIVIDUALS.—If 2 or more Tomorrow, we are going to be in ses- The PRESIDING OFFICER. Without individuals who are not married purchase a sion at 10:30 with no morning business. objection, it is so ordered. qualified principal residence, the amount of the credit allowed under subsection (a) shall We will be in full operation. As some The amendment is as follows: be allocated among such individuals in such know, we have an appointment down- (Purpose: To amend the Internal Revenue manner as the Secretary may prescribe, ex- town. We will have the floor manned. Code of 1986 to provide a Federal income cept that the total amount of the credits al- There are a number of amendments al- tax credit for certain home purchases) lowed to all such individuals shall not exceed ready lined up to be offered tomorrow. Strike section 1006 of title I of Division B $15,000. We hope Senators will come aboard. and insert the following: ‘‘(2) PURCHASE.—In defining the purchase We have had a very good day. There SEC. 1006. CREDIT FOR CERTAIN HOME PUR- of a qualified principal residence, rules simi- have been some very good debates on CHASES. lar to the rules of paragraphs (2) and (3) of (a) ALLOWANCE OF CREDIT.—Subpart A of section 1400C(e) (as in effect on the date of various amendments. I hope tomorrow part IV of subchapter A of chapter 1 is the enactment of this section) shall apply. will be the same. We will work into to- amended by inserting after section 25D the ‘‘(3) REPORTING REQUIREMENT.—Rules simi- morrow night. We are going to work following new section: lar to the rules of section 1400C(f) (as so in Thursday, and, with a little bit of luck, ‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PUR- effect) shall apply. we might be able to finish this bill this CHASES. ‘‘(f) RECAPTURE OF CREDIT IN THE CASE OF week. ‘‘(a) ALLOWANCE OF CREDIT.— CERTAIN DISPOSITIONS.— ‘‘(1) IN GENERAL.—In the event that a tax- I know there is a lot to do, but I hope ‘‘(1) IN GENERAL.—In the case of an indi- vidual who is a purchaser of a qualified prin- payer— people will understand where the votes ‘‘(A) disposes of the principal residence are lined up. We have had a number of cipal residence during the taxable year, there shall be allowed as a credit against the with respect to which a credit was allowed votes that have been not dominated by tax imposed by this chapter an amount equal under subsection (a), or Republicans or Democrats, a lot of to 10 percent of the purchase price of the res- ‘‘(B) fails to occupy such residence as the mixture. We hope that as the debate idence. taxpayer’s principal residence, continues, people will only offer those ‘‘(2) DOLLAR LIMITATION.—The amount of at any time within 24 months after the date amendments they think will really the credit allowed under paragraph (1) shall on which the taxpayer purchased such resi- help the bill and will help us work to- not exceed $15,000. dence, then the tax imposed by this chapter ward finishing this legislation. ‘‘(3) ALLOCATION OF CREDIT AMOUNT.—At for the taxable year during which such dis- Remember, we have another big step. the election of the taxpayer, the amount of position occurred or in which the taxpayer the credit allowed under paragraph (1) (after failed to occupy the residence as a principal At this stage, unless something goes application of paragraph (2)) may be equally residence shall be increased by the amount untoward, Senator MCCONNELL and I divided among the 2 taxable years beginning of such credit. think this matter should move to con- with the taxable year in which the purchase ‘‘(2) EXCEPTIONS.— ference. We have two choices that we of the qualified principal residence is made. ‘‘(A) DEATH OF TAXPAYER.—Paragraph (1) have done before. The House can send ‘‘(b) LIMITATIONS.— shall not apply to any taxable year ending us a message, but that has created ‘‘(1) DATE OF PURCHASE.—The credit al- after the date of the taxpayer’s death. problems in the past. We hope we do lowed under subsection (a) shall be allowed ‘‘(B) INVOLUNTARY CONVERSION.—Paragraph have a conference. At this stage, unless only with respect to purchases made— (1) shall not apply in the case of a residence ‘‘(A) after December 31, 2008, and which is compulsorily or involuntarily con- something goes awry, that is what the ‘‘(B) before January 1, 2010. verted (within the meaning of section Republican leader and I hope to do. We ‘‘(2) LIMITATION BASED ON AMOUNT OF TAX.— 1033(a)) if the taxpayer acquires a new prin- would appoint conferees when the bill In the case of a taxable year to which section cipal residence within the 2-year period be- is passed. We have to complete this leg- 26(a)(2) does not apply, the credit allowed ginning on the date of the disposition or ces- islation, including the conference, be- under subsection (a) for any taxable year sation referred to in such paragraph. Para- fore we leave here for the Presidents shall not exceed the excess of— graph (1) shall apply to such new principal Day recess. The mere fact we have a ‘‘(A) the sum of the regular tax liability residence during the remainder of the 24- conference doesn’t mean it is finished (as defined in section 26(b)) plus the tax im- month period described in such paragraph as posed by section 55, over if such new principal residence were the con- like that. This will be a conference ‘‘(B) the sum of the credits allowable under verted residence. where Democrats and Republicans will this subpart (other than this section) for the ‘‘(C) TRANSFERS BETWEEN SPOUSES OR INCI- work toward what needs to be done. taxable year. DENT TO DIVORCE.—In the case of a transfer of I hope everyone will come tomorrow ‘‘(3) ONE-TIME ONLY.— a residence to which section 1041(a) applies— invigorated to proceed on this legisla- ‘‘(A) IN GENERAL.—If a credit is allowed ‘‘(i) paragraph (1) shall not apply to such tion. This legislation is extremely im- under this section in the case of any indi- transfer, and portant. People have differing views as vidual (and such individual’s spouse, if mar- ‘‘(ii) in the case of taxable years ending to what should be in it and what should ried) with respect to the purchase of any after such transfer, paragraph (1) shall apply qualified principal residence, no credit shall to the transferee in the same manner as if not. That is what is going on now, to be allowed under this section in any taxable such transferee were the transferor (and try to make that determination. The year with respect to the purchase of any shall not apply to the transferor). only ones who can decide that are us, other qualified principal residence by such ‘‘(D) RELOCATION OF MEMBERS OF THE the Senate. I would hope everyone individual or a spouse of such individual. ARMED FORCES.—Paragraph (1) shall not

VerDate Nov 24 2008 04:48 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 E:\CR\FM\G03FE6.073 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1422 CONGRESSIONAL RECORD — SENATE February 3, 2009 apply in the case of a member of the Armed SEC. lll. CURTAILING CONGRESSIONAL EAR- a motion agreed to by the affirmative vote of Forces of the United States on active duty MARKS AND LOBBYING DISCLO- three-fifths of the Senators duly chosen and SURE. who moves pursuant to a military order and sworn. If an appeal is taken from the ruling (a) IN GENERAL.—Title III of the Congres- incident to a permanent change of station. of the Presiding Officer with respect to such sional Budget Act of 1974 is amended by add- ‘‘(3) JOINT RETURNS.—In the case of a credit a point of order, the ruling of the Presiding allowed under subsection (a) with respect to ing at the end the following: Officer shall be sustained absent an affirma- a joint return, half of such credit shall be ‘‘CONGRESSIONAL EARMARKS tive vote of three-fifths of the Senators duly treated as having been allowed to each indi- ‘‘SEC. 316. (a) IN GENERAL.—On a point of chosen and sworn. vidual filing such return for purposes of this order made by any Senator: subsection. ‘‘(1) No unauthorized appropriation may be ‘‘(g) FORM OF POINT OF ORDER, MULTIPLE ‘‘(4) RETURN REQUIREMENT.—If the tax im- included in any general appropriation bill. PROVISIONS.— posed by this chapter for the taxable year is ‘‘(2) No amendment may be received to any ‘‘(1) IN GENERAL.—Notwithstanding any increased under this subsection, the tax- general appropriation bill the effect of which other rule of the Senate, it shall be in order payer shall, notwithstanding section 6012, be will be to add an unauthorized appropriation for a Senator to raise a single point of order required to file a return with respect to the to the bill. that several provisions of a general appro- taxes imposed under this subtitle. ‘‘(3) No unauthorized appropriation may be priation bill or an amendment between the ‘‘(g) BASIS ADJUSTMENT.—For purposes of included in any amendment between the Houses on a general appropriation bill vio- this subtitle, if a credit is allowed under this Houses, or any amendment thereto, in rela- late subsection (a). The Presiding Officer section with respect to the purchase of any tion to a general appropriation bill. may sustain the point of order as to some or residence, the basis of such residence shall be ‘‘(b) POINT OF ORDER NEW LEGISLATION.— all of the provisions against which the Sen- reduced by the amount of the credit so al- ‘‘(1) SENATE MEASURE.—If a point of order ator raised the point of order. lowed. under subsection (a)(1) against a Senate bill ‘‘(2) SUSTAINED POINT OF ORDER.—If the ‘‘(h) ELECTION TO TREAT PURCHASE IN PRIOR or amendment is sustained— Presiding Officer sustains the point of order YEAR.—In the case of a purchase of a prin- ‘‘(A) the unauthorized appropriation shall under paragraph (1) as to some or all of the cipal residence during the period described in be struck from the bill or amendment; and provisions against which the Senator raised subsection (b)(1), a taxpayer may elect to ‘‘(B) any modification of total amounts ap- the point of order, then only those provisions treat such purchase as made on December 31, propriated necessary to reflect the deletion against which the Presiding Officer sustains 2008, for purposes of this section.’’. of the matter struck from the bill or amend- the point of order shall be deemed stricken (b) CLERICAL AMENDMENT.—The table of ment shall be made. sections for subpart A of part IV of sub- pursuant to this paragraph. ‘‘(2) HOUSE MEASURE.—If a point of order chapter A of chapter 1 is amended by insert- ‘‘(3) MOTION TO WAIVE.—Before the Pre- under subsection (a)(1) against an Act of the siding Officer rules on such a point of order, ing after the item relating to section 25D the House of Representatives is sustained when following new item: any Senator may move to waive such a point the Senate is not considering an amendment of order, in accordance with subsection (f), as ‘‘Sec. 25E. Credit for certain home pur- in the nature of a substitute, an amendment it applies to some or all of the provisions chases.’’. to the House bill is deemed to have been against which the point of order was raised. (c) SUNSET OF CURRENT FIRST-TIME HOME- adopted that— Such a motion to waive is amendable in ac- BUYER CREDIT.— ‘‘(A) strikes unauthorized appropriation cordance with the rules and precedents of (1) IN GENERAL.—Subsection (h) of section from the bill; and the Senate. 36 is amended by striking ‘‘July 1, 2009’’ and ‘‘(B) modifies, if necessary, the total ‘‘(4) APPEAL.—After the Presiding Officer inserting ‘‘the date of the enactment of the amounts appropriated by the bill to reflect rules on such a point of order, any Senator American Recovery and Reinvestment Tax the deletion of the matter struck from the Act of 2009’’. may appeal the ruling of the Presiding Offi- bill; cer on such a point of order as it applies to (2) ELECTION TO TREAT PURCHASE IN PRIOR ‘‘(c) POINT OF ORDER UNAUTHORIZED APPRO- some or all of the provisions on which the YEAR.—Subsection (g) of section 36 is amend- PRIATIONS IN AMENDMENT.—If the point of Presiding Officer ruled. ed by striking ‘‘July 1, 2009’’ and inserting order against an amendment under sub- ‘‘the date of the enactment of the American section (a)(2) is sustained, the amendment ‘‘(h) DEFINITION.—For purposes of this sec- Recovery and Reinvestment Tax Act of shall be out of order and may not be consid- tion, the term ‘unauthorized appropriation’ 2009’’. ered. means a ‘congressionally directed spending (d) EFFECTIVE DATE.—The amendments ‘‘(d) POINT OF ORDER UNAUTHORIZED APPRO- item’ as defined in rule XLIV of the Standing made by this section shall apply to taxable PRIATIONS IN AMENDMENT BETWEEN THE Rule of the Senator— years beginning after December 31, 2008. HOUSES.— ‘‘(1) that is not specifically authorized by AMENDMENT NO. 140 TO AMENDMENT NO. 98 ‘‘(1) SENATE.—If a point of order under sub- law or Treaty stipulation (unless the appro- The PRESIDING OFFICER. The Sen- section (a)(3) against a Senate amendment is priation has been specifically authorized by ator from Wisconsin. sustained— an Act or resolution previously passed by the Mr. FEINGOLD. Mr. President, I ask ‘‘(A) the unauthorized appropriation shall Senate during the same session or proposed unanimous consent that the pending be struck from the amendment; in pursuance of an estimate submitted in ac- ‘‘(B) any modification of total amounts ap- cordance with law); or amendment be set aside. propriated necessary to reflect the deletion The PRESIDING OFFICER. Without ‘‘(2) the amount of which exceeds the of the matter struck from the amendment amount specifically authorized by law or objection, it is so ordered. shall be made; and Mr. FEINGOLD. I have an amend- Treaty stipulation (or specifically author- ‘‘(C) after all other points of order under ized by an Act or resolution previously ment, No. 140, and I ask for its imme- this section have been disposed of, the Sen- passed by the Senate during the same session diate consideration. ate shall proceed to consider the amendment or proposed in pursuance of an estimate sub- The PRESIDING OFFICER. The as so modified. mitted in accordance with law) to be appro- clerk will report. ‘‘(2) HOUSE.—If a point of order under sub- priated. The assistant legislative clerk read section (a)(3) against a House of Representa- ‘‘(i) CONFERENCE REPORTS.— as follows: tives amendment is sustained— ‘‘(A) an amendment to the House amend- ‘‘(1) IN GENERAL.—On a point of order made The Senator from Wisconsin [Mr. FEIN- ment is deemed to have been adopted that— by any Senator, no unauthorized appropria- GOLD], for himself, Mr. MCCAIN, Mrs. ‘‘(i) strikes the unauthorized appropriation tion may be included in any conference re- MCCASKILL, Mr. GRAHAM, Mr. LIEBERMAN, from the House amendment; and port on a general appropriation bill. Mr. BURR, and Mr. COBURN, proposes an ‘‘(ii) modifies, if necessary, the total ‘‘(2) POINT OF ORDER SUSTAINED.—If the amendment numbered 140 to amendment No. amounts appropriated by the bill to reflect point of order against a conference report 98. the deletion of the matter struck from the under paragraph (1) is sustained— Mr. FEINGOLD. I ask unanimous House amendment; and ‘‘(A) the unauthorized appropriation in consent that reading of the amendment ‘‘(B) after all other points of order under such conference report shall be deemed to be dispensed with. this section have been disposed of, the Sen- have been struck; The PRESIDING OFFICER. Without ate shall proceed to consider the question of ‘‘(B) any modification of total amounts ap- propriated necessary to reflect the deletion objection, it is so ordered. whether to concur with further amendment. ‘‘(e) OTHER POINTS OF ORDER.—The disposi- of the matter struck shall be deemed to have The amendment is as follows: tion of a point of order made under any other been made; (Purpose: To provide greater accountability rule of the Senate, that is not sustained, or ‘‘(C) when all other points of order under of taxpayers’ dollars by curtailing congres- is waived, does not preclude, or affect, a this subsection have been disposed of— sional earmarking and requiring disclosure point of order made under subsection (a) ‘‘(i) the Senate shall proceed to consider of lobbying by recipients of Federal funds) with respect to the same matter. the question of whether the Senate should At the appropriate place, insert the fol- ‘‘(f) SUPERMAJORITY.—A point of order recede from its amendment to the House bill, lowing: under subsection (a) may be waived only by or its disagreement to the amendment of the

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Without get worse or if they go worse under- ‘‘(iii) no further amendment shall be in objection, it is so ordered. water, if they get foreclosed upon, the order; and Mr. FEINGOLD. I yield the floor and American taxpayers are going to have ‘‘(D) if the Senate agrees to the amend- suggest the absence of a quorum. to pay for them. Now, who is that ment, then the bill and the Senate amend- The PRESIDING OFFICER. The American taxpayer? It is not us. We ment thereto shall be returned to the House clerk will call the roll. are going to be dead and gone when it for its concurrence in the amendment of the The assistant legislative clerk pro- comes time to pay off the massive Senate. ceeded to call the roll. ‘‘(3) FURTHER POINTS OF ORDER.—The dis- Mr. COBURN. I ask unanimous con- amounts of borrowing we are putting position of a point of order made under any sent that the order for the quorum call forward in this bill. That American other provision of this section, or under any be rescinded. taxpayer is our kids and our grandkids. other Standing Rule of the Senate, that is The PRESIDING OFFICER (Mr. So we dare not make the mistake of not sustained, or is waived, does not pre- treating just symptoms. clude, or affect, a point of order made under BEGICH). Without objection, it is so or- dered. My contention is we are way too paragraph (1) with respect to the same mat- early with a stimulus bill. We can ter. Mr. COBURN. Mr. President, one of spend this $1.12 trillion by the time you ‘‘(4) SUPERMAJORITY.—A point of order the things the American people have under paragraph (1) may be waived only by a not heard about is everything that is in add in the interest plus the six point motion agreed to by the affirmative vote of this bill. I want to spend some time to- some billion dollars we just added on three-fifths of the Senators duly chosen and night outlining the situation we are in top of it without paying for it. We can sworn. If an appeal is taken from the ruling as a nation, the fact that we have pass this bill. But we run the risk of of the Presiding Officer with respect to such never had a bill this large at any time, doing exactly what the Japanese did in a point of order, the ruling of the Presiding in any way, shape, or form. the 1990s. They passed eight separate Officer shall be sustained absent an affirma- I want to first start out by noting my stimulus bills, none of which addressed tive vote of three-fifths of the Senators duly chosen and sworn. experience as a physician. The greatest the real underlying disease of the Japa- ‘‘(5) SINGLE POINT OF ORDER.—Notwith- mistake physicians make is when they nese economy. That is why it is called standing any other rule of the Senate, it don’t listen to the patient. One of the the ‘‘lost decade’’ in Japan. They now shall be in order for a Senator to raise a sin- things we know is, if we don’t listen to have a debt to GDP ratio of 150 percent gle point of order that several provisions of patients when they are sick, we end up of their GDP. a conference report on a general appropria- making a lot of mistakes. The other So what are we to do? Are we to con- tion bill violate paragraph (1). The Presiding thing we know as physicians is that if tinue down this path with a bill that is Officer may sustain the point of order as to we treat just the symptoms of a dis- going to spend over $1 trillion or some or all of the provisions against which ease, what we oftentimes do is worsen should we be about fixing the real dis- the Senator raised the point of order. If the Presiding Officer so sustains the point of the disease. I want to use an example ease, which is the housing and the order as to some or all of the provisions of pneumonia. I will relate to this ex- mortgage problems this country faces? against which the Senator raised the point of ample throughout the time I talk. Now, it is not easy to fix that. I know order, then only those provisions against If you come to me as a physician and that. And I am not putting forward a which the Presiding Officer sustains the you have a cough, a pain in your chest, definitive plan tonight to do that, al- point of order shall be deemed stricken pur- a fever, and you are ill, I can make though I think my side of the aisle is suant to this subsection. Before the Pre- your symptoms go away, but I won’t going to be offering one in the next few siding Officer rules on such a point of order, cure the underlying pneumonia you days that will address the real disease: any Senator may move to waive such a point have as a patient. I can give you a housing and mortgages in this country. of order, in accordance with paragraph (4), as it applies to some or all of the provisions cough medicine to suppress your We got here—and it is important to against which the point of order was raised. cough. I can give you an antipyretic to remember how we got here, how we got Such a motion to waive is amendable in ac- control your temperature. I can give the ‘‘pneumonia’’—we got the ‘‘pneu- cordance with the rules and precedents of you, with that cough medicine, some- monia’’ because we said we were going the Senate. After the Presiding Officer rules thing to control the pain in your chest. to socialize the risk on mortgages so on such a point of order, any Senator may I can do all those things. But if I fail to people in this country could buy a appeal the ruling of the Presiding Officer on diagnose your real problem, which is home who really could not afford a such a point of order as it applies to some or pneumonia, all I am doing is covering home, and we were going to put that all of the provisions on which the Presiding Officer ruled.’’. up the symptoms of the real disease. risk on the rest of the American tax- (b) LOBBYING ON BEHALF OF RECIPIENTS OF I would contend with my colleagues payers. FEDERAL FUNDS.—The Lobbying Disclosure and the American public that the bill Well, that bill has come home. That Act of 1995 is amended by adding after sec- we have before us is a bill that covers bill now—besides the cost of actually tion 5 the following: up the symptoms of the real disease. being responsible for the 31-some mil- ‘‘SEC. 5A. REPORTS BY RECIPIENTS OF FEDERAL The real disease we have is the fact lion failed mortgages, of which prob- FUNDS. that housing and mortgages are in ably 30 or 40 percent we are going to ‘‘(a) IN GENERAL.—A recipient of Federal funds shall file a report as required by sec- trouble. Everything we do that does end up owning as American taxpayers; tion 5(a) containing— not address that disease first, that does besides that cost, the cost in terms of ‘‘(1) the name of any lobbyist registered not attempt to solve that problem, ev- lost jobs, the cost in terms of true, real under this Act to whom the recipient paid erything we do that does not address pain to American citizens who are hav- money to lobby on behalf of the Federal the real disease we have is going to be ing trouble feeding their families, pay- funding received by the recipient; and wasted effort. It is not going to accom- ing their bills, the real cost of that is ‘‘(2) the amount of money paid as described plish its purpose. As a matter of fact, enormous on our society. in paragraph (1). What I want the American people to ‘‘(b) DEFINITION.—In this section, the term there is not an economist out there ‘recipient of Federal funds’ means the recipi- right now who says if we pass this bill know is we caused that. We did that. ent of Federal funds constituting an award, without fixing the mortgage problem, We created Fannie Mae and Freddie grant, or loan.’’. without fixing the housing problem— Mac, and then we did not do the regu- Mr. FEINGOLD. I am pleased to be none of them agree that what we are latory work we should have done. We joined by the Senator from Arizona, going to do is going to have a signifi- encouraged them to be irresponsible. Mr. MCCAIN; the Senator from Mis- cant impact. There is not one. You We encouraged them to have bonuses, souri, Mrs. MCCASKILL; the Senator can’t get one to come and testify un- by making more and more and more of from South Carolina, Mr. GRAHAM; the less you fix the real problem. the loans and guaranteeing them and Senator from Connecticut, Mr. We as American citizens are on the packaging them and selling them LIEBERMAN; and the Senator from hook for 31 million mortgages. throughout the world. We did that. The

VerDate Nov 24 2008 04:48 Feb 04, 2009 Jkt 079060 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 E:\CR\FM\A03FE6.023 S03FEPT1 wwoods2 on PRODPC68 with SENATE S1424 CONGRESSIONAL RECORD — SENATE February 3, 2009 Congress did that. No President did income is—they are reassessing every All of the others have been ineffective that—not President Clinton, not Presi- day what they need to do in terms of to fix what was ailing us. dent Bush, and not President Obama. how to get by in the economic situa- If we do not fix the mortgage prob- We did it. So we ought to be about fix- tion in which we find ourselves. They lem in this country, and housing, this ing the real problem. are making tough choices. There is not money will be to no avail other than to Until we fix this problem, we are one tough choice in this bill. Let me shackle our children and our grand- going to stay in a recession. We can explain what I mean by that. children for years to come. What does pass a bill that spends $1.12 trillion, President Obama campaigned on the that mean when I say ‘‘shackle’’? It and we are still going to be in a reces- fact that we ought to live within our means stealing their future. Right now sion because what the economists tell means; that every program ought to be the average American has a 30-percent us this year is that home prices are reviewed; that those that are not effec- higher standard of living than the aver- going to decline another 11 to 12 per- tive, those that have waste, those that age European and the average Japa- cent, which is going to put millions have high fraud rates, those that are nese. What we are about to do—and we more Americans and their mortgages low priority ought to be eliminated. have been doing—is to guarantee that in trouble. So we can pass a bill that There is not one penny of effort placed 30-percent advantage in standard of liv- spends $1.12 trillion or we can say in this bill that will get rid of less im- ing is going to go away. maybe we ought to address the real portant Federal programs today. Other people say: Well, you have to problem. We know there is at least $300 billion fix the finance, you have to fix the It is not going to be long until the a year that is inefficiently, erro- credit markets, you have to fix the li- Obama administration comes to this neously, and fraudulently spent by the quidity markets. You cannot fix the body and asks for $500 billion more to Federal Government. We ask our chil- credit markets, you cannot fix the li- solve the problem with bank loans and dren and our grandchildren to choke quidity problems we have by spending mortgages. We ought to be doing that down $1.1 trillion more of debt when we money. We have already spent $400 bil- first. That is the real disease. There is have not done anything—not one lion of the TARP money, and other not anybody in this body who will deny thing—to lessen the waste, fraud, and than pulling us back from the precipice that the real disease is the housing and abuse, the inefficiency, and to make of an absolute collapse of our financial the mortgage failure in this country. choices on what is more important. markets, we still have the credit mar- We are going to spend a week on this What we are saying is everything we kets tied up and frozen in this country. legislation. It is going to go to con- are doing now is important, everything I want to give you an example. I have ference. It is going to come back. Most we are doing is efficient, everything is a farmer friend who has been banking of the stuff we are able to take back is working fine, and, by the way, we are with a bank for 15 years. He has never going to be added in conference be- going to add another $1.1 trillion. missed a payment. He has been 100 per- cause the power to do that is there, and I have this chart to show how we got cent on his payments every time. He it is incumbent on the other side of the in trouble—because we were spending has assets far in excess of what his aisle that they are going to take care money we did not have on things we do loans are—far in excess—15, 20 times of those who are on their team. not need. That is how we got in trou- what his loans are. He was told this I want to make another point. In this ble. This chart shows the deficits of the last week by his bank: We don’t want bill we are talking about, we are mak- Federal Government from 2004, plus your business anymore. ing a fatal mistake. Let me tell you what CBO expects, without interest Now, this is a guy who is a premium what that fatal mistake is. We are costs, by the way, as to what is going credit risk. Why do they not want his transferring the irresponsibility we to happen to us. business? Because they want the have had over the last 6 years in this We know, last year, under real ac- money in the bank rather than to have Congress—or last 8 years in this Con- counting, accounting for the Social Se- even a good loan outstanding. gress—to the States because what we curity money we stole—and that is the Our credit problems are not getting are telling them is: You do not have to only way you can say it; we stole about better. They are getting worse. We be fiscally responsible. You do not have $160 billion out of the Social Security have not solved the problem by putting to live within your means because system—the real deficit, last year, set money on the equity side of the bal- Uncle Sam is going to bail you out. a record we have never seen. It was $609 ance sheets of the banks. The reason That is what this bill says. We are billion. That is as of September 30. The we have not solved the problem is be- going to bail them out. estimate of CBO for this year is we are cause we have not approached and fixed So for the States, such as my State, going to have—before we even talk the real disease, which is the mortgage that were smart enough and wise about stimulus, before we do anything markets and the mortgages that are enough to create a rainy day fund and on stimulus, and before we account for underwater and the housing crisis in live within their means, we are going the interest costs on stimulus—we are this country. to ask all the taxpayers of all the going to have a $1.2 trillion deficit. I want to spend a moment on another States that have done that to pay for Now, divide that out by 300 million issue. A lot of the rhetoric we have the exorbitant spending and growth in Americans, and what you see is we are heard in the last 3 or 4 months in this Government in all the rest of the going to have a deficit of about $16,000 country goes after markets and cap- States. per family. For every family in this italism. Market forces and capitalism What is that going to do in the fu- country, we are going to borrow $16,000 in this country created the greatest ture? What is the signal that sends to against their kids’ future before we do country that has ever been or ever will the rest of the States? Here is what the this, before we even approach doing be. When we hear market forces and signal says. Do not worry about it be- this. It does not get a lot better. Note capitalism criticized as the cause of all cause if you get in trouble again, the these numbers: $1.4 trillion, if we add of our problems, we need to do a gut Federal Government is going to bail what the CBO expects to come out of check. you out. this stimulus package, and only one- Market forces and capitalism didn’t Remember when New York City was fourth of it is going to get spent this cause this problem. Congress caused going bankrupt? What did we do? Did year. this problem, by our short-term think- we just pay for everything? Did we just Now, what do we know about stim- ing, by thinking, How do I look good send Federal money? No. We created an ulus packages in the past? Here is what politically, how do I do something that environment where they made the we know. Only two times in our his- isn’t based on markets? That is what changes. We helped them. And I am not tory—only two times in our history— Fannie Mae and Freddie Mac were all opposed to helping the States make the have we ever had a stimulus package about. We were actually giving loans to changes to put them back on a fiscal that was effective. Two times. John people who couldn’t afford them. It course to live within their means. Fitzgerald Kennedy created a stimulus wasn’t market capitalism that got us The other thing that is bad about package that was effective, and Ronald in trouble, it was short-term, politi- this bill is every American family out Reagan, in the early 1980s, created a cally expedient thinking that got us in there today—I do not care what their stimulus package that was effective. trouble. So the next time you hear

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What got us in this trouble was cre- 3 percent. So we are going to go from I am going to wind up here and fin- ating a socialized risk that abandoned about 16 percent of our budget for in- ish, but I wanted to spend some time to the market principles and created a terest payments to about 40 percent of make sure the American people know system of loans to people who could our budget for interest payments. What what is in this bill. I think once they not afford the loans. are we going to do then? The very real know what is in this bill, they are One of the questions I think we ought important things we need to do—not going to reject it out of hand. Let me to ask—at least the American taxpayer the superfluous stuff; the important read for my colleagues some of the ought to be asking every Member of things the Constitution says we should things that are in this bill. The biggest Congress—is what guarantee do you be doing—what are we going to do earmark in history is in this bill. There have that passing this $1.12 trillion then? Are we going to borrow more? is $2 billion in this bill to build a coal spending bill is going to solve the prob- What happens when we borrow more? plant with zero emissions. That would lem? You know what. There is not a What happens when we borrow more is be great, maybe, if we had the tech- guarantee out there. No Member of interest rates go up, inflation goes up, nology, but the greatest brains in the Congress can tell them that. We are and we have one of two choices: We can world sitting at MIT say we don’t have going to treat the symptoms with this file bankruptcy as a nation or we can the technology yet to do that. Why bill. We are going to solve some of the have hyperinflation and a marked de- would we build a $2 billion powerplant short-term problems. We are going to valuation of the value of the dollar. we don’t have the technology for that create dependency from the States. We What does that mean? That means you we know will come back and ask for are going to outline and do things we won’t be able to keep up with your pay- another $2 billion and another $2 bil- have no business doing. We are going to ments, you won’t be able to buy a lion and another $2 billion when we expand Federal bureaucracies. We are home, the cost of any good that is im- could build a demonstration project going to raise the baseline to $300 bil- ported in here will rise astronomically. that might cost $150 million or $200 lion that will never go away. That is This is Armageddon for us. While we million? There is nothing wrong with what we are going to do with this bill. are in this shape, how dare we think we having coal-fired plants that don’t We are going to emphasize and fund the can spend money we don’t have now on produce pollution; I am not against most inefficient bureaucracies in the things we don’t need now and get out of that. Even the Washington Post said world, not on the basis of what is the a problem that was caused by the very the technology isn’t there. It is a boon- best thing to do but because we will same philosophy: It cannot happen and doggle. Why would we do that? look good and we will help out some- it will not happen. We eliminated tonight a $246 million body who needs our help right now. Let me outline what we have done so payback for the large movie studios in I am not opposed to us helping people far in terms of this ‘‘economic down- Hollywood. who are unemployed. I am not opposed turn.’’ Last April, we borrowed $160 bil- We are going to spend $88 million to to giving extra food stamps to people lion from our grandkids and we gave study whether we ought to buy a new who find themselves, through no fault everybody a tax credit under $75,000 a ice breaker for the Coast Guard. You of their own, in a predicament they year or $150,000 for families. We didn’t know what. The Coast Guard needs a can’t change, but that is not what this pay for a penny of it. We didn’t get rid new ice breaker. Why do we need to bill does. What this bill does is take a of one wasteful program. We didn’t spend $88 million? They have two ice list of policy options that have been on make one hard choice. What do the breakers now that they could retrofit the table for years and funds them in economists tell us we did with that? and fix and come up with equivalent to enormous, extravagant amounts, that What was the net effect? The net effect what they needed to and not spend the will have no impact—zero impact—in was that 12 percent of it had an effect. $1 billion they are going to come back terms of getting us out of a recession, Twelve percent. Now, crank that up to and ask for, for another ice breaker, so and will have a 100-percent impact in $1.1 trillion at 12 percent, which is why would we spend $88 million doing guaranteeing we are going to lower the what the estimate is of this bill in that? standard of living in this country and terms of what kind of effect it is going We are going to spend $448 million to we are going to steal opportunity from to have. We are going to have about build the Department of Homeland Se- our children. $120 billion that is going to have a posi- curity a new building. We have $1.3 Let’s look at where we are right now tive effect, and then we are going to trillion worth of empty buildings right as a nation. At the end of this year, we have another $850 billion or $860 billion now, and because it has been blocked in will have an $11.6 trillion debt, prob- that is going to have no effect whatso- Congress we can’t sell them, we can’t ably an $11.8 trillion debt, very close to ever except to steal the future from our raze them, we can’t do anything, but our total GDP. We have $95 billion in kids and our grandkids. we are going to spend money on a new unfunded liabilities we are going to We are going in exactly the wrong di- building here in Washington. We are place on the backs of our children and rection. We ought to be standing on the going to spend another $248 million for our grandchildren through Medicare, principles that made this country new furniture for that building; a quar- Social Security, Medicaid, and Medi- great. There ought to be a review of ter of a billion dollars for new fur- care Part D—things we are going to every program in the Federal Govern- niture. What about the furniture the give people that they have not paid for ment that is not effective, that is not Department of Homeland Security has or we have stolen the money that was efficient, that is wasteful or fraudu- now? These are tough times. Should we there to pay for them, and we are going lent, and we ought to get rid of it right be buying new furniture? How about to transfer that to our children. now. We ought to say, Gone, to be able using what we have? That is what a Last year, we paid, as Americans, to pay for a real stimulus plan that family would do. They would use what $230 billion in interest. Do you know might, in fact, have some impact. they have. They wouldn’t go out and what it is going to be 2 years from I would be remiss if I didn’t remind spend $248 million on furniture. now? It is going to be $450 billion. How everybody that next week we are going How about buying $600 million worth many people think the interest rates to hear from the Obama administration of hybrid vehicles? Do you know what we are seeing today are going to be sta- wanting another $500 billion. Outside of I would say? Right now times are ble and the same 5 years from now? All this, they are going to want another tough; I would rather Americans have of the economists tell us they are not. $500 billion to handle the banking sys- new cars than Federal employees have As the world looks toward us and we tem. Still not fixing the real disease— new cars. What is wrong with the cars continue to borrow—we have increased the pneumonia—we are going to treat we have? Dumping $600 million worth

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I have delivered 4,000 babies. know, if we could sell half of the $1.3 will never go away. So we will continue We don’t need to spend $400 million on trillion worth of properties we have, we putting that forward until our kids STDs. What we need to do is properly could take care of every Federal build- have grandkids of their own. educate about the infection rates and ing requirement and backlog we have. There is about $47 billion for a vari- the effectiveness of methods of preven- Then there’s $412 million for CDC ety of energy programs that are pri- tion. That doesn’t take a penny more. buildings and property. We spent bil- marily focused on renewable energy. I You can write that on one piece of lions on a new center and headquarters am fine with spending that. But we paper and teach every kid in this coun- for CDC. Is that a priority? Building ought to get something for it. There try, but we don’t need to spend $400 another Government building instead ought to be metrics. There are no million on it. It is not a priority. of—if we are going to spend $412 mil- metrics. It is pie in the sky, saying we How about $1.4 billion for rural waste lion on building buildings, let’s build will throw some money at it. Let me disposal programs? That might even be one that will produce something, one conclude by saying we are at a seminal somewhat stimulative. New sewers. that will give us something. moment in our country. We will either That might create jobs. How about $850 million for that most start living within the confines of real- How about $150 million for a Smith- ‘‘efficient’’ Amtrak that hasn’t made ism and responsibility or we will blow sonian museum? Tell me how that any money since 1976 and continues to it and we will create the downfall of helps get us out of a recession. Tell me have $2 billion or $3 billion a year in the greatest Nation that ever lived. how that is a priority. Would the aver- subsidies? This bill is the start of that downfall. age American think that is a priority Here is one of my favorites: $75 mil- To abandon a market-oriented society that we ought to be mortgaging our lion to construct a new ‘‘security and transfer it to a Soviet-style, gov- kids’ future to spend another $150 mil- training’’ facility for State Depart- ernment-centered, bureaucratic-run lion at the Smithsonian? ment security officers, and we have and mandated program, that is the How about $1 billion for the 2010 cen- four other facilities already available thing that will put the stake in the sus? So everybody knows, the census is to train them. But it is not theirs. heart of freedom in this country. so poorly managed that the census this They want theirs. By the way, it is I hope the American people know year is going to cost twice—in 2010 is going to be in West Virginia. I wonder what is in this bill. I am doing every- going to cost twice what it cost 10 how that got there. So we are going to thing I can to make sure they know. years ago, and we wasted $800 million build a new training facility that dupli- But more important, I hope somebody on a contract because it was no-bid cates four others that we already have is listening who will treat the ‘‘pneu- that didn’t perform. Nobody got fired, that could easily do what we need to monia’’ we are faced with today, which no competitive bidding, and we blew do. But because we have a stimulus is the housing and mortgage markets. $800 million. package, we are going to add in oink It doesn’t matter how much money we We have $75 million for smoking ces- pork. spend in this bill. It is doomed to fail- sation activities, which probably is a How about $200 million in funding for ure unless we fix that problem first. great idea, but we just passed a bill— a lease—not buying, but a lease of al- Failing that, we will go down in his- the SCHIP bill—that we need to get 21 ternative energy vehicles on military tory as the Congress that undermined million more Americans smoking to be installations? We are going to bail out the future and vitality of this country. able to pay for that bill. That doesn’t the States on Medicaid. Total all of the Let it not be so. make sense. health programs in this, and we are Mr. President, I appreciate the indul- How about $200 million for public going to transfer $150 billion out of the gence of you and the staff. With that, I computer centers at community col- private sector and we are going to yield the floor. leges? Since when is a community col- move it to the Federal Government. Mr. LEAHY. Mr. President, this lege in my State a recipient of Federal You talk about backdooring national week, the Senate is considering critical largesse? Is that our responsibility? I health care. Henry Waxman has to be legislation to renew our economy and mean, did we talk with Dell and Hew- smiling big today. He wants a single- to renew America’s promise of pros- lett-Packard and say, How do we make payer Government-run health care sys- perity and security for all of its citi- you all do better? Is there not a mar- tem. We are going to move another $150 zens. I have long held the view that ket force that could make that better? billion to the Federal Government American innovation can and should Will we actually buy on a true com- from the private sector. play a vital role in revitalizing our petitive bid? No, because there is noth- We are going to eliminate fees on economy and in improving our Nation’s ing that requires competitive bidding loans from the Small Business Admin- health care system. I commend the in anything in this bill. There is noth- istration. You know what that does? lead sponsors of this legislation for ing that requires it. It is one of the That pushes productive capital to un- making sure that the economic recov- things President Obama said he was productive projects. It is exactly the ery package includes an investment in going to mandate at the Federal Gov- wrong thing to do. health information technology that ernment, but there is no competitive Then there is $160 million to the Job also takes meaningful steps to protect bidding in this bill at all. Corps Program—but not for jobs and the privacy of American consumers. We have $10 million to inspect canals not to put more people in the Job The privacy protections for elec- in urban areas. Well, that will put 10 or Corps but to construct or repair build- tronic health records in the economic 15 people to work. Is that a priority for ings. recovery package are essential to a us right now? We are going to spend $524 million for successful national health IT system, There is $6 billion to turn Federal information technology upgrades that and these safeguards should not be buildings into green buildings. That is the Appropriations Committee claims weakened. In America today, if you a priority, versus somebody getting a will create 388 jobs. If you do the math have a health record, you have a health job outside of Washington, a job that on that, that is $1.5 million a job. Don’t privacy problem. The explosion of elec- actually produces something, that ac- you love the efficiency of Washington tronic health records, digital data- tually increases wealth? thinking? bases, and the Internet is fueling a How about $500 million for State and We are going to create $79 billion in growing supply of and demand for local fire stations? Where do you find additional money for the States, a Americans’ health information. The in the Constitution us paying for local ‘‘slush fund,’’ to bail out States and ability to easily access this informa- fire stations within our realm of pre- provide millions of dollars for edu- tion electronically—often by the click

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Without adequate safeguards to pro- Again, I commend the lead sponsors They would also beef up the penalties for tect health privacy, many Americans of the economic recovery bill and noncompliance and allow state attorneys will simply not seek the medical treat- President Obama for their commit- general to help enforce the rules—a useful ment that they need for fear that their ment to include meaningful health pri- backup in case the federal government falls sensitive health information will be vacy protections in the bill. I also com- down on the job. The House version would disclosed without their consent. And also encourage the use of protective tech- mend the many stakeholders, including nologies, like encryption, to protect personal those who do seek medical treatment the Center for Democracy & Tech- medical information that will be trans- assume the risk of data security nology, Consumers Unions, the Amer- mitted. breaches and other privacy violations. ican Civil Liberties Union, and Micro- Health insurance plans and some disease Likewise, health care providers who soft, that have advocated tirelessly for management groups are complaining that perceive the privacy risks associated meaningful health IT privacy protec- the new requirements would impose adminis- with health IT systems as inconsistent tions in this legislation. I urge all trative burdens that could actually impede with their professional obligations will Members to support the health IT pri- the use of electronic records and interfere avoid participating in a national with coordination of care. They want to ease vacy protections in the bill, so that our the marketing restrictions, notify patients health IT system. national health care system will have only if security breaches are harmful, and The economic recovery package the support and confidence of the keep the attorneys general out of the en- takes several important steps to avoid American people. forcement role. these pitfalls and to protect Ameri- I ask to have a copy of a February 1, It should be possible through imple- cans’ health information privacy. 2009, editorial from the New York menting regulations to fine-tune the privacy First, the provisions give each indi- Times in support of funding protec- requirements so that they do not disrupt pa- vidual the right to access his or her tions for patients’ privacy entitled, tient care. Congress must make every effort own electronic health records and the ‘‘Your E-Health Records,’’ printed in to ensure that patients’ privacy is protected. right to timely notice of data breaches the RECORD following my full state- Mr. LEAHY. I suggest the absence of involving their health information. ment. a quorum The economic recovery bill also places There being no objection, the mate- The PRESIDING OFFICER. The critical restrictions on the sale of sen- rial was ordered to be printed in the clerk will call the roll. sitive health data and requires that the RECORD, as follows: The legislative clerk proceeded to Department of Health and Human [From the New York Times, Feb. 1, 2009] call the roll. Services educates and conducts out- YOUR E-HEALTH RECORDS Mr. DURBIN. Mr. President, I ask reach to American consumers and busi- As part of the stimulus package, $20 billion unanimous consent that the order for nesses regarding their privacy rights will be pumped into the health care system the quorum call be rescinded. and obligations. Lastly, the bill en- to accelerate the use of electronic health The PRESIDING OFFICER. Without hances the enforcement tools available records. The goal is both to improve the objection, it is so ordered. quality and lower the costs of care by replac- to the States, as well as to Federal au- f thorities, to deter lax health informa- ing cumbersome paper records with elec- tronic records that can be easily stored and MORNING BUSINESS tion privacy. These key privacy safe- swiftly transmitted. guards must not be weakened as the The idea is sound, but it also raises impor- Mr. DURBIN. Mr. President, I ask Senate considers the economic recov- tant questions about how to ensure the pri- unanimous consent that the Senate ery bill. vacy of patients. Fortunately, the legislation proceed to a period of morning busi- Of course, more can—and should—be would impose sensible privacy protections ness, with Senators permitted to speak done in the weeks and months ahead to despite attempts by business lobbyists to therein for up to 10 minutes. further improve health information weaken the safeguards. The PRESIDING OFFICER. Without privacy, such as strengthening the With paper records the opportunities for objection, it is so ordered. breaches are limited to over-the-shoulder rights of consumers to control their glimpses or the occasional lost or stolen f own electronic health records. In files. But when records are kept and trans- THE STIMULUS BILL Vermont, we have formed a public-pri- ferred electronically, the potential for abuse vate partnership that is charged with can become as vast as the Internet. Mr. DURBIN. Mr. President, my col- developing Vermont’s statewide elec- Electronic health records that can be league and friend Senator COBURN of tronic health information system, in- linked to individual patients are already pro- Oklahoma spoke at length about our cluding a policy on privacy. I believe tected by laws that apply primarily to hos- Nation’s deficit. I share his concern that in order for a national health IT pitals, doctors, nursing homes, pharmacists, about the impact of debt on future gen- laboratories and insurance plans. The stim- system to succeed, we in Congress ulus bill that has passed in the House, and a erations. It is an interesting moment should follow Vermont’s good example similar bill awaiting approval in the Senate, in time when many of my friends from and work together for the long term would strengthen the privacy requirements that side of the aisle are raising the with public and private stakeholders to and apply them more directly to ‘‘business issue of deficits and debt. We are in one ensure the privacy and security of elec- associates’’ of the providers, like billing and of the most serious economic crises of tronic health records. collection services or pharmacy benefit man- our time—maybe the most serious As the Senate considers the economic agers, that have access to sensitive data but since the Great Depression. This Presi- recovery package, we face many dif- are not readily held accountable for any mis- dent, recently inaugurated, 2 weeks use. ficult challenges in our Nation. The The potential for harm was spelled out by ago, inherited the worst economic situ- challenge of finding the right balance the American Civil Liberties Union in a re- ation since Franklin Roosevelt in the between privacy and efficiency for a cent letter to Congress. Employers who ob- Great Depression in 1933. He inherited national health IT system is just one, tain medical records inappropriately might a debt that was unimaginable 8 years but it is an important test that we reject a job candidate who looks expensive to ago when the previous President began must meet head on. Without meaning- insure. Drug companies with access to phar- his administration. When President ful privacy safeguards, our Nation’s maceutical records might try to pressure pa- Bush came to office, our national debt health IT system will fail its citizens. tients to switch to their products. Data bro- was in the range of $5 trillion. When he kers might buy medical and pharmaceutical In his inaugural address, President records and sell them to marketers. Unscru- left office, he doubled that national Obama eloquently noted that in our pulous employees with access to electronic debt to more than $10 trillion—in an 8- new era of responsibility ‘‘there is records might snoop on the health of their year period of time. The accumulated nothing so satisfying to the spirit, so colleagues or neighbors. debt of the United States of America,

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