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Senator Bob Dole Talking Points Food Marketing Institute Willard Hotel February 27, 1989

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Senator Bob Dole Talking Points Food Marketing Institute Willard Hotel February 27, 1989 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu SENATOR BOB DOLE TALKING POINTS FOOD MARKETING INSTITUTE WILLARD HOTEL FEBRUARY 27, 1989 TAXES 0 MY POSITION ON TAX INCREASES SHOULD BE VERY CLEAR. I DO NOT BELIEVE TAX INCREASES ARE A SUBSTITUTE FOR SPENDING RESTRAINT TO REDUCE THE FEDERAL BUDGET DEFICIT. I AGREE WITH THE PRESIDENT THAT TO BALANCE THE BUDGET WE NEED TO LOOK AT SPENDING CUTS AND NOT NEW TAXES. Page 1 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -2- 0 I ALSO BELIEVE THAT KEEPING THE LOWER RATES ENACTED IN 1986 IS VERY IMPORTANT, BOTH AS AN ECONOMIC INCENTIVE AND TO CONVINCE TAXPAYERS THAT OUR TAX LAWS ARE FAIR. IN 1987, I INTRODUCE[ A RESOLUTION ADOPTED BY THE SENATE THAT WE SHOULD NOT ATIEMPT TO REDUCE THE DEFICIT BY TAMPERING WITH TAX RATES. Page 2 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -3- 0 THE BUDGET PROPOSED BY PRESIDENT BUSH MAKES GOOD ON HIS CAMPAIGN PROMISES TO MEET THE GRAMM-RUDMAN-HOLLINGS DEFICIT TARGETS WITHOUT RAISING TAXES. IT IS NOW CLEAR THAT WHEN THE PRESIDENT SAID "NO NEW TAXES", HE MEANT IT. THAT INCLUDES EXCISE TAXES, AS WELL AS RATE INCREASES. Page 3 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -4- 0 IN ADDITION, PRESIDENT BUSH IS COMMITIED TO A REDUCTION IN THE LONG-TERM CAPITAL GAINS TAX RATE IMPOSED CERTAIN INVESTMENT AND BUSINESS ASSETS. HOWEVER, TREASURY AND CONGRESSIONAL ECONOMISTS DIFFER OVER THE REVENUE CONSEQUENCES OF THIS PROPOSAL. MOREOVER, THE CHAIRMAN OF THE WAYS AND MEANS COMMITIEE HAS STATED THAT HE WILL INSIST ON INCOME TAX RATE INCREASES IF CAPITAL GAINS TAX RATES ARE REDUCED. Page 4 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -5- SECTION 89 0 I KNOW THAT YOU ARE CONCERNED ABOUT THE ADMINISTRATIVE BURDENS IMPOSED ON HEALTH AND WELFARE BENEFIT PLANS BY SECTION 89 OF THE INTERNAL REVENUE CODE. I HAVE RECEIVED LETIERS FROM BUSINESSMEN ACROSS THE COUNTRY WHO ARE SIMILARLY CONCERNED. IN MANY CASES, I BELIEVE THAT THESE COMPLAINTS ARE JUSTIFIED. Page 5 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -6- 0 LAST YEAR, I SUPPORTED SUBSTANTIVE CHANGES TO SIMPLIFY SECTION 89 IN THE TECHNICAL CORRECTIONS ACT. SEVERAL OF THESE PROVISIONS WERE DESIGNED SPECIFICALLY TO EASE COMPLIANCE BURDENS FOR SMALL BUSINESSES. 0 I RECOGNIZE THAT THESE CHANGES ARE NOT ENOUGH, AND FRANKLY, I WOULD HAVE PREFERRED TO DO EVEN MORE TO SIMPLIFY THESE RULES. ACCORDINGLY I HAVE COSPONSORED LEGISLATION TO DELAY THE Page 6 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -7- EFFECTIVE DATE OF SECTION 89 TO GIVE CONGRESS THE TIME TO REVIEW THIS PROVISION. MY STAFF IS ACTIVELY WORKING WITH STAFFS OF OTHER FINANCE COMMITIEE MEMBERS AND INDUSTRY EXPERTS TO TRY TO DEVELOP WORKABLE TESTS. 0 THE TREASURY IS EXPECTED TO ISSUE REGULATIONS INTERPRETING SECTION 89 IN MARCH. I UNDERSTAND THAT THESE REGULATIONS WILL DELAY THE Page 7 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -8- NON-DISCRIMINATION TESTING PERIODS UNTIL JULY 1989, AND WILL DELAY THE PLAN QUALIFICATION RULES UNTIL 1990. 0 ONCE THESE REGULATIONS ARE ISSUED, I HOPE THAT THE FINANCE COMMITIEE WILL TAKE THE TIME TO STUDY THIS ISSUE AND DECIDE WHETHER OR NOT THESE PROVISIONS CAN EVER BE MADE TO WORK FAIRLY AND EFFECTIVELY. THE AIM OF SECTION 89 -- TO DENY A FEDERAL TAX SUBSIDY TO Page 8 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -9- DISCRIMINATORY BENEFIT PLANS -- IS VALID. BUT, IN MY JUDGMENT, THE PRICE OF THE CURRENT RULES IN TERMS OF COMPLEXITY AND BURDENS ON AMERICAN BUSINESS IS CLEARLY TOO HIGH. MINIMUM WAGE 0 ON JANUARY 25, SEN. KENNEDY INTRODUCED S. 4, THE MINIMUM WAGE RESTORATION ACT. A MARK-UP OF S. 4 HAS BEEN SCHEDULED BY THE SENATE LABOR AND HUMAN RESOURCES COMMITIEE FOR MARCH 8. IF Page 9 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -10- ENACTED INTO LAW, S. 4 WOULD INCREASE THE MINIMUM WAGE FROM ITS PRESENT LEVEL OF $3.35 At'- HOUR TO $3.85 IN 1990, $4.25 IN 1991, AND $4.65 IN 1992. 0 I AM OPPOSED TO ANY SIGNIFICANT INCREASE IN THE MINIMUM WAGE. AS NUMEROUS STUDIES HAVE DEMONSTRATED, RAISING THE MINIMUM WAGE WILL RESULT IN THE LOSS OF MANY JOBS. A 1988 COUNCIL OF ECONOMIC ADVISORS' COST ESTIMATE, Page 10 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -11- FOR EXAMPLE, CALCULATED THAT INCREASING THE MINIMUM WAGE TO $4.65 PER HOUR WOULD RESULT IN THE LOSS OF MORE THAN 600,000 JOBS. 0 MOREOVER, RAISING THE MINIMUM WAGE WILL DISPROPORTIONATELY --AND UNFAIRLY --AFFECT CERTAIN GROUPS. WORKERS WHO ARE THE LEAST-SKILLED AND THE LEAST-EDUCATED WOULD BE THE FIRST ON THE UNEMPLOYMENT LINE. OF THIS GROUP, MINORITIES, TEENAGERS, AND WORKERS IN DEPRESSED AREAS WOULD BE PARTICULARLY HARD HIT. Page 11 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -12- 0 WHILE A MINIMUM WAGE INCREASE OFTEN HURTS THOSE PEOPLE IT WAS INTENDED TO HELP, IT OFTEN HELPS PEOPLE WHO DON'T NEED ANY ASSISTANCE. A LARGE PORTION OF MINIMUM WAGE EARNERS ARE WHAT ECONOMISTS CALL SECONDARY WAGE EARNERS, TYPICALLY TEENAGERS. THESE WORKERS OFTEN WORK PART-TIME AND ARE NOT THE PRIMARY SOURCE OF INCOME FOR THEIR FAMILIES. Page 12 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -13- 0 DESPITE THESE OBJECTIONS, I WOULD CONSIDER AN INCREASE IN THE MINIMUM WAGE IF THIS INCREASE WERE COUPLED WITH A SUBMINIMUM "TRAINING WAGE." A "TRAINING WAGE" WOULD ENABLE MORE YOUNG PEOPLE TO OBTAIN THAT VALUABLE FIRST JOB, AT A TIME IN THEIR LIVES WHEN MOST DO NOT HAVE THE RESPONSIBILITY OF SUPPORTING A FAMILY, AND AT A COST THAT BUSINESS COULD MORE REASONABLY AFFORD. Page 13 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -14- MANDATED HEALTH BENEFITS 0 LAST YEAR, SEN. KENNEDY INTRODUCED S. 1265, WHICH WOULD HAVE AMENDED THE FAIR LABOR STANDARDS ACT AND THE PUBLIC HEALTH SERVICE ACT TO REQUIRE EMPLOYERS TO PROVIDE A MINIMUM HEALTH BENEFIT PLAN TO THEIR FULL-TIME EMPLOYEES AND THEIR DEPENDENTS. UNDER THIS PLAN, ALL EMPLOYERS -- REGARDLESS OF SIZE -- WOULD HAVE BEEN REQUIRED TO PROVIDE A PACKAGE Page 14 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -15- OF HEALTH INSURANCE BENEFITS FOR THEIR EMPLOYEES. THESE BENEFITS INCLUDED: 1) COVERAGE OF AT LEAST 80% OF NECESSARY HOSPITAL, DOCTOR AND LAB COSTS; 2) A "CATASTROPHIC" PROVISION LIMITING COSTS FOR A FAMILY TO $3,000 PER YEAR; AND 3) 100% COVERAGE OF THE COSTS OF PRENATAL AND "WELL-BABY" CARE. Page 15 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -16- 0 ALTHOUGH S. 1265 WAS REPORTED OUT OF THE SENATE LABOR AND HUMAN RESOURCES COMMITIEE J IT WAS NEVER CONSIDERED BY THE FULL SENATE. APPARENTLY, SEN. KENNEDY COULD NOT MUSTER SUFFICIENT SUPPORT FOR THE BILL IN ORDER TO JUSTIFY BRINGING THE BILL TO THE SENATE FLOOR FOR CONSIDERATION. SEN. KENNEDY, HOWEVER, INTENDS TO REINTRODUCE THE BILL SOMETIME IN EARLY MARCH. Page 16 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -17- 0 THERE ARE OVER 37 MILLION AMERICANS WITHOUT HEALTH INSURANCE. OBVIOUSLY, THIS IS AN IMPORTANT SOCIETAL PROBLEM THAT MERITS ATIENTION BY THE CONGRESS. 0 NONETHELESS, THE FEDERAL GOVERNMENT SHOULD NOT BE IN THE POSITION OF DECIDING THE SPECIFIC FORM AND CONTENT OF EMPLOYEE BENEFITS. FEDERALLY MANDATED HEALTH BENEFITS --AS ENVISIONED BYS. 1265 -- WILL SURELY INCREASE Page 17 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -18- THE COST OF LABOR. AND INCREASED LABOR COSTS WILL CERTAINLY SEND SOME SMALL BUSINESSES INTO BANKRUPTCY AND INHIBIT GROWTH IN THE SMALL BUSINESS SECTOR. 0 FURTHERMORE, S. 1265 WOULD HAVE DONE NOTHING TO STEM --AND, IN FACT, WOULD HAVE EXACERBATED -- THE RISING COSTS OF HEALTH CARE IN THIS COUNTRY. IN 1986, AMERICANS SPENT $1,837 PER Page 18 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -19- CAPITA ON HEALTH; BY THE YEAR 2000, ANNUAL HEALTH CARE COSTS ARE EXPECTED TO RISE TO $5,500 PER CAPITA. 0 DURING LAST YEAR'S CAMPAIGN, PRESIDENT BUSH EXPRESSED SUPPORT FOR ALLOWING THE WORKING POOR TO BUY-IN TO THE MEDICAID SYSTEM ON AN ABILITY-TO-PAY BASIS. I BELIEVE THAT THIS WOULD BE A STEP IN THE RIGHT DIRECTION AND I LOOK FORWARD TO CONSIDERING SUCH A PROPOSAL. Page 19 of 125 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu -20- PARENTAL LEAVE 0 EARLIER IN THE MONTH, SENATOR DODD INTRODUCED THE FAMILY AND MEDICAL LEAVE ACT. THIS BILL WOULD REQUIRE EMPLOYERS WITH 20 OR MORE WORKERS PER WORKSITE TO PROVIDE UP TO 1C WEEKS UNPAID PARENTAL LEAVE FOR THE BIRTH, ADOPTION, OR SERIOUS ILLNESS OF AN EMPLOYEE'S CHILD, AND UP TO 13 WEEKS OF UNPAID MEDICAL LEAVE FOR AN EMPLOYEE 1S OWN SERIOUS ILLNESS.
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