Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 106 CONGRESS, FIRST SESSION

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E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 106 CONGRESS, FIRST SESSION

Vol. 145 WASHINGTON, FRIDAY, JULY 30, 1999 No. 110 Senate The Senate met at 8:31 a.m. and was SCHEDULE be imposed on amounts received, and lands recovered, by Holocaust victims for their called to order by the President pro Mr. DOMENICI. Mr. President, on be- tempore [Mr. THURMOND]. heirs. half of the leader, I have the following Roth (for Sessions) amendment No. 1412, to statement: provide for the Collegiate Learning and Stu- PRAYER Today, by a previous order, the Sen- dents Savings (CLASS) Act title. The Chaplain, Dr. Lloyd John ate will begin 30 minutes of debate for Roth (for Collins/Coverdell) modified Ogilvie, offered the following prayer: closing remarks with respect to the amendment No. 1446, to eliminate the 2-per- Dear God, You have taught us that cent floor on miscellaneous itemized deduc- Bingaman amendment regarding edu- tions for qualified professional development yesterday is already a memory and to- cation and the Hutchison amendment and incidental expenses of elementary and morrow is only a vision, but today regarding the marriage tax penalty. secondary school teachers. well-lived makes every yesterday an Two back-to-back votes will then occur Roth (for Abraham) amendment No. 1455, affirmation of Your grace and every to- at approximately 9 a.m. to amend the Internal Revenue Code of 1986 morrow an expectation of Your bless- Following those votes, any additional to expand the deduction for computer dona- ing. Make our life an accumulation of amendments will be limited to 2 min- tions to schools and to allow a tax credit for donated computers. grace-filled days. We’ve learned that utes of debate. Therefore, numerous AMENDMENT NO. 1462 we can’t do much with our yesterdays, votes will occur in a stacked sequence, The PRESIDING OFFICER. Under and worry over tomorrow is futile. Liv- and Senators are asked to remain in the previous order, there will now be 15 ing today is so crucial. We want to be the Chamber in order to conclude the faithful and obedient to You today. We minutes equally divided with respect to voting process as early as possible dur- the Bingaman amendment No. 1462. know that anything is possible if we ing today’s session of the Senate. Who yields time? take it in day-sized bites. The dynamic I thank my colleagues for their at- Mr. BINGAMAN addressed the Chair. person You want us to be, the issues we tention and their cooperation. The PRESIDING OFFICER. The Sen- want to confront, the people we want I yield the floor. ator from New Mexico. to bless, the projects we want to f Mr. BINGAMAN. How much time is start—all can be done by Your grace RESERVATION OF LEADER TIME allotted to me? today. The PRESIDING OFFICER. The Sen- Bless the Senators. Enable them to The PRESIDING OFFICER (Mr. ator has 7 minutes 30 seconds. enjoy the sheer delight of glorifying SANTORUM). Under the previous order, Mr. BINGAMAN. I yield myself 4 You by serving this Nation. May they leadership time is reserved. minutes. live Andrew Murray’s motto: ‘‘To be f The PRESIDING OFFICER. The Sen- ator is recognized for 4 minutes. thankful for what I have received and TAXPAYER REFUND ACT OF 1999 for what the Lord has prepared is the Mr. BINGAMAN. Mr. President, the surest way to receive more.’’ Amen. The PRESIDING OFFICER. Under amendment I presented yesterday and the previous order, the Senate will now that we are going to vote on first this f resume consideration of S. 1429, which morning is a simple statement that we the clerk will report. should reduce the size of the tax cut PLEDGE OF ALLEGIANCE The legislative assistant read as fol- that is proposed by $132 billion so that lows: we will have funds available to main- The Honorable CONRAD BURNS, a A bill (S. 1429) to provide for reconciliation tain the current level of effort in sup- Senator from the State of Montana, led pursuant to section 104 of the concurrent res- port of education. It, I grant you, is a the Pledge of Allegiance, as follows: olution on the budget for fiscal year 2000. sense-of-the-Senate resolution. It does I pledge allegiance to the Flag of the Pending: not ensure that the money is spent United States of America, and to the Repub- Bingaman amendment No. 1462, to express there, but to my mind it at least relic for which it stands, one nation under God, the sense of the Senate regarding investment serves those funds so we can maintain indivisible, with liberty and justice for all. in education. the current level of effort in support of Hutchison modified amendment No. 1472, education. In other words, I believe we f to provide for the relief of the marriage tax should be on record for funding edu- penalty beginning in the year 2001. Roth (for Grassley) amendment No. 1388, cation at least at current levels before RECOGNITION OF THE ACTING we settle on the size of the tax cut that MAJORITY LEADER making technical corrections to the Saver Act. we can afford. The PRESIDENT pro tempore. Sen- Roth (for Abraham) amendment No. 1411, Some might ask why am I singling ator DOMENICI is recognized. to provide that no Federal income tax shall out education. Well, S. 1429 is more

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

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VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00001 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9886 CONGRESSIONAL RECORD — SENATE July 30, 1999 than just a tax bill; it is a reconcili- have extra money that we can turn Mr. DOMENICI. Mr. President, as I ation bill, which means, at least in around and spend on discretionary ac- said yesterday, I don’t normally take rough form, it purports to set national counts. to the Senate floor and speak in oppo- priorities for the next 10 years. I be- Mr. President, that doesn’t add up in sition to an amendment of my col- lieve that a very top priority should be my mind. I believe discretionary ac- league from New Mexico. But I did yes- providing quality education to the counts are important. I believe edu- terday, and I must this morning be- young people of this Nation. Our future cation has to be at the top of that list. cause if this amendment is reported in depends more on that investment than I do not see where we can expect to New Mexico, and if it says to constitu- it does on virtually any other invest- find the money to maintain current ents of our State that the budget reso- ment we might make. levels of effort on education if we vote lution we adopted, and what will be left So if education is a priority, what is for this very large tax cut. That is why over after the tax cut would decimate the relationship of this tax cut bill to the size of the tax cut should be re- education, then it would appear to me education? Now, as I understand the es- duced so that education programs will that I must answer because that isn’t timates for the next 10 years, the tax not have to be cut. true. cut bill is so large that it will require How much time remains? First of all, the Senator from New us to make significant cuts in discre- The PRESIDING OFFICER. The Sen- Mexico, my colleague, is at least not as tionary spending, including education, ator has 2 minutes 25 seconds. sensational in his approach as the Mr. BINGAMAN. I yield the balance in this coming decade, and that is the President was yesterday. The President of my time to the Senator from Wash- concern I have and that is what has even knows right down to the nickel ington. what is not going to be spent in edu- prompted this amendment. Mrs. MURRAY. Mr. President, I rise Yesterday, as I was describing the cation. That is impossible. He says in support of the amendment offered by amendment, I was informed that my the Senator from New Mexico, Mr. that 544,000 kids aren’t going to be able concern is unfounded; that in fact even to learn to read. That is ludicrous. If BINGAMAN. This is a very important after the tax cut—and I know people do amendment that he has offered. Cer- that is the kind of talk he needs to de- not like to have it referred to as a mas- tainly, as we are talking about what feat a tax bill, then good luck to him. sive tax cut; I notice that is what the the future of our country is going to It is just absolutely untrue. Let’s get the facts as I remember and Wall Street Journal called it this be, we should be looking at what we understand them. We produced a budg- morning in their headline—there will are doing to invest in our young chil- be plenty of discretionary funds for dren today so they can be economically et resolution. It is nothing new with education. That was the information I viable when they graduate from high reference to the taxes; $792 billion was given. school and college 15, 20 years from spread out over 10 years was the tax So let me look at the figures I have now, making sure that we have the cut in that bill. We also allocated the and see where I am confused on this money there for the Head Start Pro- remaining money for the next decade and where I have misunderstood the gram, Pell grants, early childhood edu- and, incidentally, in doing that, even situation. cation. though there was a reduction in discre- First of all, we all expect a surplus, These are important investments in tionary spending, the highest priority and that is why we are having this de- our children, and if we follow through domestic program was education, for bate and talking about cutting taxes in on a massive tax cut at this time, as all the reasons stated on the floor by the first place. So we all agree to that. the Senator from New Mexico has said, Senator MURRAY and Senator BINGA- We also all agree that the portion of in the future we will not have the MAN. It is terribly important that we that surplus attributable to Social Se- money to make sure that our kids get use our education dollars right and bet- curity should be left for Social Secu- the kind of education they need to be ter but that there be more of them. We rity. And that is about $1.9 trillion. viable members of our community. put $37 billion in additional money dur- There is no dispute about that that I This is a very important amendment. ing the first 5 years of that budget for am aware of, at least in this debate. As we come to the end of this debate education. So after we take that out, what is about what we are going to do to invest Now, what happened after that? After left? At the beginning of the debate, in our future, let’s remember that if we that, some 3 months later, the Congres- the Congressional Budget Office came put in place a tax cut such as this, we sional Budget Office did a midsession out with the figure in the range of $1 will harm our young children, we will review and told us there was more trillion, the non-Social Security-re- harm Social Security and Medicare and money than that. As a matter of fact, lated surplus. So that is represented critical programs for women in this there was $170 billion more in the sur- here. This chart shows CBO, Congres- country to make sure they don’t live in plus account. We didn’t add some of sional Budget Office. This column rep- poverty. We will not be able to pay off that to the tax cut. It is sitting there. resents the non-Social Security surplus our debt, a very important issue that is What I did, so that everyone would un- as it was understood by me when we facing us, which we have not left our- derstand, I said let’s look at this sur- started the debate. selves room for with a massive tax cut plus in the chart I used yesterday, and Now I am informed that we have a of this size. let’s assume that we freeze discre- new estimate and that the surplus is Most critically, we will not be able to tionary spending and ask CBO how not going to be $2.8 trillion over the do what we have a responsibility to do, much money would then be available next 10 years; instead, it is going to be not only as Senators but as parents and to put back into discretionary ac- over $3.3 trillion. So there is going to as adults in this country, to make sure counts during the decade. be substantially more money. The that those who follow us have the They told us: We don’t know whether question is, Where did we find this ad- skills they need to make sure this you will use it in discretionary ac- ditional $400 to $500 billion? country continues to run well in the counts. We can’t say that. Mr. President, let me yield myself 1 future. Investment in Pell grants and But there is $505 billion that could be more minute. in early childhood education, and in- added into priority spending. I believe The PRESIDING OFFICER. The Sen- vestment in education, class size reduc- that means all of the discretionary ator is recognized. tion, and training of our teachers will spending can go up significantly and Mr. BINGAMAN. It was arrived at by make a difference for the future. We you can establish education as a high- assuming that less money is going to have a responsibility to do that. priority item and fund it at levels high- be spent on discretionary spending dur- I thank the Senator from New Mex- er than we have now, which I think Re- ing the 10 years. The Congressional ico for his work on education, and I publicans will do if we have reform in Budget Office assumed that $595 billion urge my colleagues to support this the educational allowances of the Fed- would be cut in discretionary spending. amendment. eral Government, so that there is ac- The new claim is that there is going to I thank the Chair. countability and flexibility in the pro- be $1 trillion cut, and that by cutting Mr. DOMENICI addressed the Chair. grams that we send there. discretionary spending by $1 trillion in- The PRESIDING OFFICER. The Sen- I believe what my colleague from stead of by $595 billion, we are going to ator from New Mexico is recognized. New Mexico is expressing on the floor

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9887 is a sincere desire that we be sure that amendment to the desk to amendment On page 38, line 18, strike ‘‘2000’’ and insert in the discretionary accounts we fund No. 1472. ‘‘2002’’. education adequately. If that is what The PRESIDING OFFICER. The On page 236, strike line 12 through the mat- he was saying, I join with him in say- amendment is so modified. ter following line 21, and insert: (a) IN GENERAL.—Section 2503(b) (relating ing that is true. But when he says you The amendment (No. 1472), as further to exclusions from gifts) is amended— need to take $122 billion—or whatever modified, is as follows: (1) by striking the following: the number is—out of the tax cut in On page 10, line 6, strike ‘‘2004’’ and insert ‘‘(b) EXCLUSIONS FROM GIFTS.— order to do that, I disagree. I don’t ‘‘2005’’. ‘‘(1) IN GENERAL.—In the case of gifts’’, think you have to do that. On page 10, strike the matter between lines (2) by inserting the following: Plain and simple, I think there is 19 and 20, and insert: ‘‘(b) EXCLUSIONS FROM GIFTS.—In the case plenty of discretionary money avail- Applicable of gifts’’, able. I add, if you use the President’s ‘‘Calendar year: dollar amount: (3) by striking paragraph (2), and (4) by striking ‘‘$10,000’’ and inserting numbers on Medicare—and he said you 2006 or 2007 ...... $4,000 2008 and thereafter ...... $5,000. ‘‘$20,000’’. only needed $46 billion to fix prescrip- On page 237, line 3, strike ‘‘2000’’ and insert tion drugs—you have $505 billion, less On page 11, strike the matter before line 1, and insert: ‘‘2004’’. the $46 billion, and all the rest can go On page 262, strike lines 15 through 17, and Applicable to discretionary spending in the next insert: ‘‘Calendar year: dollar amount: (c) EFFECTIVE DATE.—The amendments decade. I am not trying to mislead any- 2006 or 2007 ...... $2,000 made by this section shall apply to taxable body. In order to understand it, I said 2008 and thereafter ...... $2,500. start with the premise that we freeze years beginning after December 31, 2004, and On page 11, line 3, strike ‘‘2007’’ and insert before January 1, 2007. all these accounts and put in what is ‘‘2008’’. On page 270, line 18, strike ‘‘2003’’ and in- left. If you look at the budget resolu- On page 11, line 11, strike ‘‘2006’’ and insert sert ‘‘2004’’. tion, we put $181 billion into those ac- ‘‘2007’’. On page 273, line 21, strike ‘‘2003’’ and in- counts, with education being the high- On page 32, between lines 14 and 15, insert: sert ‘‘2004’’. est priority. It just happens there is SEC. ll. ELIMINATION OF MARRIAGE PENALTY On page 275, line 12, strike ‘‘2003’’ and in- more than that $181 billion because the IN STANDARD DEDUCTION. sert ‘‘2004’’. midsession review added many billions (a) IN GENERAL.—Paragraph (2) of section On page 277, line 13, strike ‘‘2003’’ and in- 63(c) (relating to standard deduction) is of dollars in accumulated surplus. sert ‘‘2005’’. amended— On page 278, line 13, strike ‘‘2002’’ and in- I am fully aware that Senator BINGA- (1) by striking ‘‘$5,000’’ in subparagraph (A) sert ‘‘2004’’. MAN, my colleague, has regularly and and inserting ‘‘twice the dollar amount in ef- consistently as a member of the Com- fect under subparagraph (C) for the taxable Mrs. HUTCHISON. Mr. President, I mittee on Education, and on the floor, year’’, now yield 2 minutes to Senator been a promoter and a staunch sup- (2) by adding ‘‘or’’ at the end of subpara- ASHCROFT of Missouri. porter of education. I agree with him, graph (B), The PRESIDING OFFICER. The Sen- but I believe he is wrong in thinking (3) by striking ‘‘in the case of’’ and all that ator from Missouri is recognized for 2 follows in subparagraph (C) and inserting ‘‘in minutes. that we have to reduce the tax cut in any other case.’’, and order to be sure we do that. I also re- Mr. ASHCROFT. Mr. President, first (4) by striking subparagraph (D). of all, I thank the Senator from Texas mind everybody that there are some (b) PHASE-IN.—Subsection (c) of section 63 very significant education programs in is amended by adding at the end the fol- for her outstanding work correcting a this tax bill. It makes it easier to con- lowing new paragraph: pernicious discrimination against the tinue your education because it has al- ‘‘(7) PHASE-IN OF INCREASE IN BASIC STAND- most valuable institution in our soci- lowances, credits, and deductions in ARD DEDUCTION.—In the case of taxable years ety, the family. I thank the chairman the adult education area. It makes it beginning before January 1, 2008— for his sensitivity to this important ‘‘(A) paragraph (2)(A) shall be applied by issue, for placing in this bill procedures easier to pay off student loans. It substituting for ‘twice’— makes college more affordable, and it to remedy the marriage penalty. ‘‘(i) ‘1.671 times’ in the case of taxable The marriage penalty simply is an provides tax exempt financing for years beginning during 2001, school construction. All of that is in ‘‘(ii) ‘1.70 times’ in the case of taxable anomaly. It is a strangeness in the tax the Roth bill. years beginning during 2002, structure that has evolved, that penal- Whatever time I had remaining, I ‘‘(iii) ‘1.727 times’ in the case of taxable izes people for being married. It puts yield back. years beginning during 2003, them into higher tax brackets when I make a point of order that the ‘‘(iv) ‘1.837 times’ in the case of taxable they get married than when they were Bingaman amendment No. 1462 is ex- years beginning during 2004, single. When people get married, they ‘‘(v) ‘1.951 times’ in the case of taxable traneous to the bill before us. There- start paying a tax penalty. That is years beginning during 2005, something we should stop. fore, I raise a point of order under sec- ‘‘(vi) ‘1.953 times’ in the case of taxable tion 313(b)(1)(A) of the Congressional years beginning during 2006, and The Senator from Texas and the Budget Act. ‘‘(vii) ‘1.973 times’ in the case of taxable chairman of this committee have Mr. BINGAMAN. Mr. President, pur- years beginning during 2007, and agreed that we should stop it. And we suant to section 904 of the Congres- ‘‘(B) the basic standard deduction for a should, as a matter of fact, according sional Budget Act, I move to waive the married individual filing a separate return to the amendment of the Senator from applicable sections of that act for the shall be one-half of the amount applicable Texas, of which I am an original co- under paragraph (2)(A). consideration of the pending amend- sponsor along with Senator BROWN- ment. If any amount determined under subpara- BACK, accelerate the time at which we I ask for the yeas and nays. graph (A) is not a multiple of $50, such begin to stop this very serious fault amount shall be rounded to the next lowest with the tax system. The PRESIDING OFFICER. Is there a multiple of $50.’’. sufficient second? (c) TECHNICAL AMENDMENTS.— America should not penalize the fam- There is a sufficient second. (1) Subparagraph (B) of section 1(f)(6) is ily. It should not make it harder for The yeas and nays were ordered. amended by striking ‘‘(other than with’’ and people to have families. It should not AMENDMENT NO. 1472, AS FURTHER MODIFIED all that follows through ‘‘shall be applied’’ make it financially more difficult for The PRESIDING OFFICER. Under and inserting ‘‘(other than with respect to two people to be married and live to- the previous order, there will now be 15 sections 63(c)(4) and 151(d)(4)(A)) shall be ap- gether than unmarried and live to- minutes equally divided for concluding plied’’. gether. That is a simple fact. It is be- (2) Paragraph (4) of section 63(c) is amend- cause the family is the best depart- remarks with respect to the Hutchison ed by adding at the end the following flush of Texas amendment, No. 1472. sentence: ment of social services, the best department of education; it is the best Who yields time? ‘‘The preceding sentence shall not apply to The Senator from Texas. the amount referred to in paragraph (2)(A).’’. place in which individuals are enriched Mrs. HUTCHISON. Mr. President, (d) EFFECTIVE DATE.—The amendments to learn individual responsibility and under the previous unanimous consent made by this section shall apply to taxable the values and character our culture agreement, I send a modification of the years beginning after December 31, 2000. needs to survive.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9888 CONGRESSIONAL RECORD — SENATE July 30, 1999 I am very pleased to be a part of this ator from Texas, as well as the chair- penalty tax. I hope as well we could go tax measure which will say about man of the committee. The Senator further in the future and enact income America’s families that we cherish from Texas offered this amendment splitting, that we could provide for a them rather than punish them and it is last night, and at that time I explained couple to split their income. This time for all of us to join together and we thought this was a very good would be even more supportive of this eliminate the marriage tax penalty. amendment because it moves in the di- fundamental institution in our culture, The PRESIDING OFFICER. The time rection of the Democratic substitute, in our Nation, of marriage. I hope we of the Senator has expired. raising the standard deduction, in her can take that step on into the future. Who yields time? The Senator from case for married couples, to eliminate I am delighted to have the chair- Delaware. the marriage tax penalty. We would man’s support in this. I urge all my Mr. ROTH. Mr. President, I yield my- have gone further, but we compliment colleagues in the name of family val- self 4 minutes. the Senator in going in this direction. ues, vote for this amendment. Mrs. HUTCHISON. Mr. President, Last night, too, there was a slight I yield the remainder of my time to parliamentary inquiry. Is the 4 min- question how this was going to be paid the Senator from Texas. utes from my 71⁄2 minutes? for. We have worked it out overnight. The PRESIDING OFFICER. Who Mr. ROTH. I am yielding this from As I understand it—the Senator may yields time? my time. correct me if I am wrong—the AMT de- The Senator from Texas. The PRESIDING OFFICER. Time in layed relief provisions are no longer in Mrs. HUTCHISON. Mr. President, opposition to the amendment? place, but rather there will be a delay how much time remains? Mr. ROTH. Actually, Mr. President, I in the expansion of the 15-percent The PRESIDING OFFICER. There want to add my support for the amend- bracket in order to pay for this. are remaining 3 minutes 20 seconds. ment put forward by Senator Mrs. HUTCHISON. The Senator is Mrs. HUTCHISON. Mr. President, I HUTCHISON. It builds on the basic objec- correct. There are delays. Nothing is will finish on my statement. tives of the Taxpayer Refund Act of eliminated, but there are delays in sev- Something very important is hap- 1999, particularly objectives of helping eral provisions because we are trying pening. What is important is, we are families bring greater equity to the to say this is our first priority. apparently going to pass overwhelm- Tax Code. Mr. BAUCUS. Mr. President, I think ingly the only amendment that will One very important provision of the that is a good offset. It adds a little have passed on this bill. On this very tax relief package we have proposed is more progressivity, frankly, to the bill, important tax cut measure, we are the elimination of the marriage tax than otherwise would be there. going to add certainly the first amend- penalty. There is strong bipartisan I compliment the Senator on her ment, and maybe the only one, that agreement that this penalty is not only amendment. says the marriage tax penalty is not unfair but that it is counterproductive The PRESIDING OFFICER. Who going to be allowed to stand in the in a way that discourages couples from yields time? United States of America. That is what marrying. The Senator from Texas. we are doing today. The bill provides When I introduced the Taxpayer Re- Mrs. HUTCHISON. I yield the Sen- for marriage tax penalty relief in 2005. fund Act 2 days ago, I introduced Rob- ator from Kansas, Senator BROWNBACK, I applaud the committee for doing ert and Dianne, a hypothetical couple 2 minutes. that. But I thought we should address who had fallen in love and wanted to The PRESIDING OFFICER. The Sen- it earlier. That is why Senator marry. I explained how, as individuals, ator is recognized for 2 minutes. ASHCROFT, Senator BROWNBACK, Sen- they would not be considered wealthy, Mr. BROWNBACK. Mr. President, I ator DOMENICI, Senator ROTH, and Sen- how Robert worked as a foreman in an thank the Senator from Texas. I am de- ator BAUCUS have come together and auto plant and Dianne worked as a lighted to join her in this amendment said that is right. The people of this nurse. I then explained how, as a mar- that it appears will garner over- country who want to get married ried couple with a combined income, whelming support. I hope that sends a should not have to pay $1,000 in taxes they would be considered well off and strong signal across this country that just because they got married. We are how they would end up paying the Gov- today is a day to celebrate. We should going to end it today because we are ernment $1,500 more in taxes than they be celebrating the institution of mar- sending a signal that is joined by the would if they remained single. riage and support that institution House that this is our first priority. The Taxpayer Refund Act of 1999 does rather than tax it. So a high school football coach and a away with the marriage tax penalty. It For many years now we have taxed schoolteacher can get married and not completely eliminates the penalty for it. Clearly, if there is a policy in Gov- move into a bracket that is almost Robert and Dianne and for any other ernment that stands it is if you want double just because they got married. couples who choose to marry. What I less of something, tax it; if you want It hits our middle-income taxpayers like about the amendment introduced more of something, subsidize it. We the most. They are the ones who are by our distinguished colleague from have been taxing marriage, and mar- trying to save for a new house or a new Texas, Senator HUTCHISON, is that riage has fallen off in this country 43 car or to do something special for their under her plan the tax relief is expe- percent over the last 30 years. That is new baby. We are going to send a signal dited. This is done at a price. The a terrible situation for an institution out of the Senate, along with the change does require the delay of other that is so central. House, to the President, saying: Mr. provisions that provide relief for the I note to my colleagues, we all fre- President, we are going to have $1 tril- taxpayer. I regret that. But we do quently talk about family values. lion in income tax surplus. Are you se- think it is desirable to provide mar- Thomas, from Hilliard, OH, writes in rious in saying you would veto this bill riage relief as early as possible. about this point on the marriage pen- that gives marriage tax penalty relief Therefore, I encourage my colleagues alty and the notion of family values: to our country, that gives pension re- to vote for this amendment. No person who legitimately supports fam- lief to the women who go in and out of I reserve the remainder of my time. ily values could be against this bill. The the workforce who are unable to have The PRESIDING OFFICER. Who marriage penalty is but another example of the same pension capabilities as those yields time? how in the past 40 years the federal govern- who never leave the workforce? Mr. BAUCUS. If the Senator will ment has enacted policies that have broken Is the President serious about yield just a few minutes? down the fundamental institutions that were vetoing a bill that provides for Social Mr. ROTH. I yield 3 minutes to the the strength of this country from the start. Security, that provides for Medicare Senator from Montana. I could not have put it better. I am and education, and, yes, the marriage The PRESIDING OFFICER. The Sen- delighted it appears that this amend- tax penalty relief? ator from Montana is recognized for 3 ment is going to be agreed to. I hope Mr. President, we are making a minutes. we can get it to the President’s desk statement with this amendment. I am Mr. BAUCUS. Mr. President, I again and that the President will be sup- proud the Senate is going to take up compliment my good friend, the Sen- portive of eliminating the marriage and I believe overwhelmingly pass a

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9889 priority of eliminating the marriage Mr. LOTT. I urge my colleagues, NAYS—2 tax penalty in this country once and please stay in the Chamber. We still do Hollings Voinovich for all. I urge my colleagues to give a have a number of amendments we will The amendment (No. 1472), as further unanimous vote for the married people need to go through. Senator DASCHLE modified, was agreed to. who have been living with a penalty and I have agreed that we want to Mrs. HUTCHISON. Mr. President, I that is not warranted. limit those to 10 minutes each, with 2 move to reconsider the vote. I yield the floor. minutes between the 10 minutes for 1 Mr. BROWNBACK. I move to lay that Mr. ROTH. Mr. President, we yield minute of explanation on each side. If motion on the table. back the remainder of the time. we do that, I believe we can still finish The motion to lay on the table was VOTE ON AMENDMENT NO. 1462 this bill at a reasonable hour. agreed to. The PRESIDING OFFICER. Under Mr. ROTH addressed the Chair. Ms. LANDRIEU addressed the Chair. the previous order, the question is now The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The Sen- on the motion to waive the Budget Act ator from Delaware. ator from Louisiana is recognized. on the Bingaman amendment. PRIVILEGE OF THE FLOOR PRIVILEGE OF THE FLOOR The yeas and nays have been ordered. Mr. ROTH. Mr. President, I ask unan- Ms. LANDRIEU. Mr. President, I ask The clerk will call the roll. imous consent that Brig Pari and Ed unanimous consent that two staffers, The legislative assistant called the Kathleen Strottman and Ben Cannon, roll. McClellan of the Finance Committee staff be granted floor privileges for the have floor privileges. The PRESIDING OFFICER (Mr. The PRESIDING OFFICER. Without DEWINE). Are there any other Senators duration of the consideration of this bill. objection, it is so ordered. in the Chamber desiring to vote? Mr. DURBIN addressed the Chair. The yeas and nays resulted—yeas 48, The PRESIDING OFFICER. Without objection, it is so ordered. The PRESIDING OFFICER. The Sen- nays 52, as follows: ator from Illinois is recognized. [Rollcall Vote No. 232 Leg.] VOTE ON AMENDMENT NO. 1472, AS FURTHER PRIVILEGE OF THE FLOOR MODIFIED YEAS—48 Mr. DURBIN. Mr. President, I ask Akaka Edwards Lieberman The PRESIDING OFFICER. The question is now on the amendment of unanimous consent that a member of Baucus Feingold Lincoln my staff, Chris Stanek, have access to Bayh Feinstein Mikulski the Senator from Texas. Does the Sen- Biden Graham Moynihan ator request the yeas and nays? the floor. Bingaman Harkin Murray The PRESIDING OFFICER. Without Mrs. HUTCHISON. Yes. Boxer Hollings Reed objection, it is so ordered. Breaux Inouye Reid The PRESIDING OFFICER. Is there a Bryan Johnson Robb sufficient second? MOTION TO RECOMMIT Byrd Kennedy Rockefeller There is a sufficient second. Mr. KERRY. Mr. President, I have a Cleland Kerrey Sarbanes motion at the desk and ask that it be Collins Kerry Schumer The yeas and nays were ordered. Conrad Kohl Snowe Mrs. HUTCHISON. I ask unanimous called up. The PRESIDING OFFICER. The Daschle Landrieu Specter consent that Senator DOMENICI be Dodd Lautenberg Torricelli added as an original cosponsor of the clerk will read the motion. Dorgan Leahy Wellstone The legislative clerk read as follows: Durbin Levin Wyden amendment. The PRESIDING OFFICER. Without The Senator from Massachusetts [Mr. NAYS—52 KERRY] moves to recommit S. 1429, the Tax- objection, it is so ordered. Abraham Frist McConnell payer Refund Act of 1999, to the Committee Allard Gorton Murkowski The question is on agreeing to on Finance, with instructions to report back Ashcroft Gramm Nickles amendment No. 1472, as further modi- to the Senate within 3 days, with an amend- Bennett Grams Roberts fied. The yeas and nays have been or- ment to reserve $20 billion over ten years for Bond Grassley Roth dered. The clerk will call the roll. relief from the unintended consequences of Brownback Gregg Santorum Bunning Hagel The legislative clerk called the roll. the Balanced Budget Act on teaching hos- Sessions pitals, skilled nursing facilities, home health Burns Hatch Shelby The PRESIDING OFFICER. Are there Campbell Helms care providers, rural and other community Smith (NH) any other Senators in the Chamber de- Chafee Hutchinson Smith (OR) hospitals, and other health care providers, Cochran Hutchison siring to vote? Stevens by reducing or deferring certain new tax Coverdell Inhofe The result was announced—yeas 98, Thomas breaks in the bill. Craig Jeffords nays 2, as follows: Crapo Kyl Thompson Mr. KERRY. Mr. President, I under- DeWine Lott Thurmond [Rollcall Vote No. 233 Leg.] stand I have 1 minute. Domenici Lugar Voinovich YEAS—98 The PRESIDING OFFICER. That is Enzi Mack Warner Fitzgerald McCain Abraham Enzi Lugar correct. Akaka Feingold Mack Mr. KERRY. Mr. President, let me The PRESIDING OFFICER. On this Allard Feinstein McCain share with my colleagues what this is. Ashcroft Fitzgerald vote the yeas are 48, the nays are 52. McConnell Under the Balanced Budget Act, we set Three-fifths of the Senators duly cho- Baucus Frist Mikulski Bayh Gorton out to save some $103 billion in Medi- sen and sworn not having voted in the Moynihan Bennett Graham Murkowski care expenditures with respect to hos- affirmative, the motion is rejected. Biden Gramm Murray Bingaman Grams pitals, home care, et cetera. The prob- The point of order is sustained and the Nickles lem is the unintended consequences of amendment falls. Bond Grassley Reed Boxer Gregg Reid the way that has happened, coupled Mr. LOTT. I move to reconsider the Breaux Hagel Robb with the managed care process, in fact, Brownback Harkin vote. Roberts Bryan Hatch about $205 billion in Medicare pay- Mr. LEAHY. I move to lay that mo- Rockefeller Bunning Helms Roth ments has been reduced. The result is tion on the table. Burns Hutchinson Santorum that, in hospitals, home care facilities, The motion to lay on the table was Byrd Hutchison agreed to. Campbell Inhofe Sarbanes and nursing homes all across the coun- Mr. LOTT addressed the Chair. Chafee Inouye Schumer try, all of our States are significantly Cleland Jeffords Sessions The PRESIDING OFFICER. The ma- Shelby affected in the quality of care that is Cochran Johnson being delivered. jority leader. Collins Kennedy Smith (NH) Mr. LOTT. Mr. President, I would ob- Conrad Kerrey Smith (OR) Special care units in hospitals are ject to any unanimous consent regard- Coverdell Kerry Snowe closing. Home care facilities are refus- Specter ing comments on my outfit this morn- Craig Kohl ing patients. There has been a signifi- Crapo Kyl Stevens ing. Daschle Landrieu Thomas cant reduction in the quality of care I ask unanimous consent that the re- DeWine Lautenberg Thompson across the country. Our teaching hos- maining votes in the series be limited Dodd Leahy Thurmond pitals are threatened. What we are say- to 10 minutes in length. Domenici Levin Torricelli ing is that we need to reserve some $20 Dorgan Lieberman Warner The PRESIDING OFFICER. Without Durbin Lincoln Wellstone billion in order to be able to ade- objection, it is so ordered. Edwards Lott Wyden quately make up for the unintended

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9890 CONGRESSIONAL RECORD — SENATE July 30, 1999 consequences of the Balanced Budget hard hit in cities and towns across the NAYS—50 Act. nation. Allard Graham McConnell Mr. ROTH. Mr. President, although Often, the hospitals and other insti- Ashcroft Gramm Murkowski the Kerry amendment is well-intended, Bennett Grams Nickles tutions that care for Medicare patients Bond Grassley Roberts it is not germane to this reconciliation also care for other patients as well. Brownback Gregg Roth bill. The Finance Committee is paying Health care in the entire community is Bunning Hagel Santorum Burns Hatch close attention to the concerns of being threatened. Sessions Campbell Helms Shelby health care providers and beneficiaries. Cochran Hutchinson Teaching hospitals are on the receiv- Smith (NH) Over ten Medicare hearings have been Coverdell Inhofe Smith (OR) ing end of a triple-whammy. The slash Craig Jeffords held this year, three focusing specifi- Stevens cally on BBA 1997 policies. in Medicare reductions is leading to Crapo Kerrey DeWine Kyl Thomas The Finance Committee is also devel- less patient care, less doctor training, Thompson and less medical research at the na- Domenici Lott oping a Medicare package that will ad- Enzi Lugar Thurmond dress the many concerns in the Bal- tion’s top hospitals. In my own state of Fitzgerald Mack Voinovich Warner anced Budget Act. The tax package in Massachusetts, for the first time in Gorton McCain no way interferes with this process. history, some of the finest and most re- The PRESIDING OFFICER. On this Finally, I might add that even the nowned teaching hospitals in the coun- vote the yeas are 50, the nays are 50. President’s Medicare proposal sets try are now operating at a deficit. This Three-fifths of the Senators duly cho- aside a maximum of only $7.5 billion situation is unsustainable—and it is sen and sworn not having voted in the over 10 years to address BBA fixes, $12.5 happening all over our country. We will affirmative, the motion is rejected. billion less than this amendment. all suffer if these great institutions are The point of order is sustained and the The amendment is not germane to forced out of business or into the arms motion falls. this reconciliation legislation, and I of for-profit corporations. Without objection, the motion to raise a point of order under section 305 Community hospitals are suffering, table is agreed to. (b)(2) of the Budget Act. too. Throughout my State of Massa- The Senator from Tennessee. Mr. KERRY. Mr. President, pursuant chusetts, we are seeing red ink and cut- CHANGE OF VOTE to section 904 of the Budget Act, I backs in essential services. This, too, is Mrs. HUTCHISON. Mr. President, on move to waive that section in that act happening all over the country. rollcall vote No. 234, I voted ‘‘no.’’ It for consideration of this motion. was my intention to vote ‘‘aye.’’ There- In Massachusetts alone, house health fore, I ask unanimous consent that I I ask for the yeas and nays. agencies are losing $160 million a year. The PRESIDING OFFICER. Is there a may be permitted to change my vote. Twenty agencies have closed their It will in no way change the outcome sufficient second? doors since the Balanced Budget Act There is a sufficient second. of the vote. went into effect. Many others are see- The PRESIDING OFFICER. Without The yeas and nays were ordered. ing fewer patients, and seeing their re- Mr. KENNEDY. The Balanced Budget objection, it is so ordered. maining patients less often. The home- (The foregoing tally has been Act of 1997 helped bring us to this era bound elderly are especially vulner- changed to reflect the above order.) of budget surpluses and economic pros- able, and are suffering even more. In perity. But too much of the actual sav- AMENDMENT NO. 1467 just the last two weeks, two Massachu- Mr. FRIST. Mr. President, I call up ings used to balance the budget have setts nursing homes have declared come from Medicare. amendment No. 1467. bankruptcy. The PRESIDING OFFICER. The At the time the BBA was enacted, This proposal is an important step to clerk will report. those savings were expected to total The bill clerk read as follows: $116 billion over five years. Now, they restore the viability of these indispen- sable institutions in our health care The Senator from Tennessee (Mr. FRIST) are estimated by CBO to be nearly proposes an amendment numbered 1467. twice as great—nearly $200 billion over system, and I urge the Senate to ap- Mr. FRIST. Mr. President, I ask five years. Such deep cuts in Medicare prove it. We must undo the damage be- unanimous consent that reading of the are clearly unfair and unacceptable. fore it is too late. The last thing we need to see on the doors of the nation’s amendment be dispensed with. Not surprisingly, all of us are now The PRESIDING OFFICER. Without hearing from bedrock health care insti- teaching hospitals, community hospitals, home health agencies, and nurs- objection, it is so ordered. tutions across the country that are (The amendment is printed in a pre- ing homes, is a sign that says, ‘‘Closed being devastated by these excessive vious edition of the RECORD.) cuts. Teaching hospitals—community because of the ill-considered activities Mr. FRIST. Mr. President, this hositals—community health centers of the United States Congress.’’ amendment is a sense-of-the-Senate and many others. We are hearing from The PRESIDING OFFICER. The amendment that goes right at the those who care for the elderly and dis- question is on agreeing to the motion. heart of what we should be doing about abled when they leave the hospital— The yeas and nays have been ordered. Medicare. It says Congress should be nursing homes—home health agen- The clerk will call the roll. acting to modernize Medicare, to en- cies—rehabilitation facilities. We are The assistant legislative clerk called sure its solvency, and to include pre- hearing from virtually every one who the roll. scription drugs. cares for the 40 million senior citizens The congressional budget plan has The yeas and nays resulted—yeas 50, and disabled citizens on Medicare. $505 billion over the next 10 years in nays 50, as follows: They are telling us in no uncertain unallocated budget surpluses that terms that Congress went too far. [Rollcall Vote No. 234 Leg.] could be used for long-term Medicare This motion is the first step toward YEAS—50 reform. In addition, the congressional reducing the steepest cuts. It would budget resolution for the year 2000 has Abraham Durbin Lieberman provide $20 billion over the next ten Akaka Edwards Lincoln specifically set aside $90 billion for this years to slow or eliminate the harshest Baucus Feingold Mikulski purpose. impact of the Balanced Budget Act. It Bayh Feinstein Moynihan Thus, my sense-of-the-Senate amend- would ensure that the nation’s hos- Biden Frist Murray Bingaman Harkin ment says that the unallocated on- pitals and other health care facilities Reed budget surpluses provide adequate re- Boxer Hollings Reid will be able to care for senior citizens Breaux Hutchison Robb sources and that: No. 1, the congres- Bryan Inouye and the disabled in the years ahead. Rockefeller sional budget resolution provides a Byrd Johnson Sarbanes With the retirement of the baby Chafee Kennedy sound framework for the moderniza- Schumer boom generation, the last thing we Cleland Kerry tion of Medicare; No. 2, improving the should be doing is jeopardizing the via- Collins Kohl Snowe Specter solvency of Medicare; and No. 3, im- bility of the many health care facili- Conrad Landrieu Daschle Lautenberg Torricelli proving coverage of prescription drugs. ties that depend on Medicare for their Dodd Leahy Wellstone Congress should act to accomplish survival. These institutions are being Dorgan Levin Wyden these goals for the Medicare program.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9891 The PRESIDING OFFICER. The Sen- Specter Thomas Thurmond using the Social Security surplus. As ator from Montana. Stevens Thompson Warner anyone can plainly see, that is just not Mr. BAUCUS. Mr. President, with NAYS—46 possible. In all good conscience, I could great respect, I must inform this body Akaka Feingold Lincoln not vote for the Frist amendment. that this amendment is pure fiction. It Baucus Feinstein Mikulski The PRESIDING OFFICER. The Sen- is pure fiction because the House and Bayh Graham Moynihan ator from New Jersey. Biden Harkin Murray the Senate this year have been using Bingaman Hollings Reed MOTION TO RECOMMIT Congressional Budget Office baseline Boxer Inouye Reid Breaux Johnson Mr. LAUTENBERG. Mr. President, I numbers to predict what the surplus is Robb call up a motion we have at the desk Bryan Kennedy Rockefeller or is not and what is left for spending. Byrd Kerrey Sarbanes and ask for its immediate consider- Under that formula, there is virtually Cleland Kerry Schumer ation. Conrad Kohl no money in this tax bill left for discre- Torricelli Daschle Landrieu The PRESIDING OFFICER. The tionary spending. Dodd Lautenberg Voinovich clerk will report. Wellstone A few days ago, a new chart suddenly Dorgan Leahy The assistant legislative clerk read Durbin Levin Wyden popped up. The new chart comes up as follows: with this money. How does it come up Edwards Lieberman The Senator from New Jersey [Mr. LAU- with this money? It basically assumes The PRESIDING OFFICER (Mr. GOR- TENBERG] moves to recommit the bill to the TON). On this vote the yeas are 54, the that the Congress, over the next 10 Committee on Finance, with instructions to years, is going to not only cut discre- nays are 46. Three-fifths of the Sen- report back to the Senate within 3 days, with tionary spending under the caps as ators duly chosen and sworn not having an amendment to correct the fact that the planned but then not raise discre- voted in the affirmative, the motion is bill uses Social Security surpluses for tax tionary spending above inflation over rejected. The point of order is sus- breaks by causing on-budget deficits, taking the next 8 years. tained and the amendment falls. into account both revenue losses and addi- I say that is a fiction—it is just not Mr. MOYNIHAN. Mr. President, I tional interest costs caused by the higher going to happen, so the money is not move to reconsider the vote. levels of debt that would result from the bill’s enactment. there—developed by this recent new Mr. STEVENS. I move to lay that chart. motion on the table. The PRESIDING OFFICER. The Sen- If it is an accurate assumption that The motion to lay on the table was ator from New Jersey. there is no spending, then it cuts disagreed to. Mr. LAUTENBERG. Mr. President, cretionary spending by 50 percent, one FRIST MEDICARE AMENDMENT the motion is very simple. It directs or the other. It is a fiction. Mr. BYRD. Mr. President, today I the Finance Committee to correct the The PRESIDING OFFICER. The voted against the Medicare Sense of bill so that it does not raid Social Se- question is on amendment No. 1467. the Senate amendment numbered 1467, curity surpluses in any year to pay for Mr. BAUCUS. Mr. President, I raise a offered by Senator FRIST. For the ben- tax cuts. In its current form, this bill point of order that the pending amend- efit of my constituents in West Vir- would use Social Security surpluses in ment violates 313(b)(1)(A) of the Con- ginia, I offer a brief explanation for each of the second 5 years after enact- gressional Budget Act of 1974. why I voted the way I did. ment. Mr. FRIST. Pursuant to section 904 I opposed Senator FRIST’s amend- Altogether, $75 billion of Social Secu- of the Budget Act, I move to waive the ment because, in my judgment, it is rity money will be used to pay for the Budget Act for the consideration of my based on a fiction. As we all know, the broad-based tax rebates that are large- amendment No. 1467, and I ask for the Congressional Budget Office (CBO) has ly for special interests and for the very yeas and nays. projected a $996 billion non-Social Se- wealthy. That is the intent, and it is The PRESIDING OFFICER. Is there a curity surplus over the next ten years. inconsistent with the Social Security sufficient second? There is a sufficient The Frist amendment said that, even lockbox that the Republicans claim to second. The yeas and nays were or- allowing for the $792 billion tax cut, support. dered. there was still enough money left over If my colleagues are serious about The clerk will call the roll. to provide for the long-term solvency stopping Congress from raiding these The legislative clerk called the roll. of the Medicare system. One need not surpluses, they will support my mo- The yeas and nays resulted—yeas 54, be an economist, or even an expert in tion. The Finance Committee can cor- nays 46, as follows: budget policy, to understand why that rect the problem very quickly, and [Rollcall Vote No. 235 Leg.] was just plain wrong. then we can proceed to consider the YEAS—54 The Republican tax cut plan will cost bill within only a few days. The PRESIDING OFFICER. The Sen- Abraham Domenici Kyl $971 billion over the next ten years— Allard Enzi Lott $792 billion for the actual tax cut, plus ator’s time has expired. Ashcroft Fitzgerald Lugar $179 billion in additional interest pay- Mr. LAUTENBERG. I urge my col- Bennett Frist Mack ments on the debt. That leaves $25 bil- leagues to support the motion. Bond Gorton McCain Brownback Gramm McConnell lion of the non-Social Security surplus. The PRESIDING OFFICER. The Sen- Bunning Grams Murkowski From that amount, the Republicans ator from New Mexico. Burns Grassley Nickles have said we can provide for emergency Mr. DOMENICI. Mr. President, I ask Campbell Gregg Roberts unanimous consent that a table pre- Chafee Hagel Roth expenditures for natural disasters and Cochran Hatch Santorum international conflicts, which averages pared by the Congressional Budget Of- Collins Helms Sessions $80 billion over ten years; fund current fice be printed in the RECORD. Coverdell Hutchinson Shelby operations of government; and reserve There being no objection, the table Craig Hutchison Smith (NH) Crapo Inhofe Smith (OR) enough money for Medicare. And, as I was ordered to be printed in the DeWine Jeffords Snowe say, they would do all that without RECORD, as follows: TABLE 3.—CBO ESTIMATE OF THE CONGRESSIONAL BUDGET RESOLUTION FOR FISCAL YEAR 2000 [By fiscal year, in billions of dollars]

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000–2009

BASELINE SURPLUS OR DEFICIT (¥) On-budget ...... ¥4 14 38 82 75 85 92 129 146 157 178 996 Off-budget ...... 125 147 155 164 172 181 195 205 217 228 235 1,901 Total ...... 120 161 193 246 247 266 286 334 364 385 413 2,986

EFFECTS OF THE BUDGET RESOLUTION’S POLICIES Revenues ...... 0 0 ¥8 ¥54 ¥32 ¥49 ¥63 ¥109 ¥136 ¥151 ¥177 ¥778

Outlays: Discretionry 1 ...... 0 0 0 0 10 6 ¥6 ¥24 ¥42 ¥55 ¥70 ¥180

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9892 CONGRESSIONAL RECORD — SENATE July 30, 1999 TABLE 3.—CBO ESTIMATE OF THE CONGRESSIONAL BUDGET RESOLUTION FOR FISCAL YEAR 2000—Continued [By fiscal year, in billions of dollars]

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000–2009

Mandatory ...... 0 (2) 1 1 1 1 1 (2) (2) ¥1 ¥1 4 *COM008**COM008* ...... 0 (2) (2) 2 4 7 10 15 20 26 32 117

Subtotal 3 ...... 0 (2) 1 3 16 14 5 ¥9 ¥22 ¥29 ¥38 ¥59 Total 4 ...... 0 (2) ¥9 ¥57 ¥48 ¥63 ¥68 ¥100 ¥114 ¥121 ¥139 ¥719

SURPLUS OR DEFICIT (¥) UNDER THE BUDGET RESOLUTION’S POLICIES AS ESTIMATED BY CBO On-budget ...... ¥4 14 29 26 27 21 24 29 32 36 39 277 Off-budget ...... 125 147 155 164 172 181 195 205 217 228 234 1,901 Total ...... 120 161 184 190 199 203 219 234 250 263 275 2,178 Memorandum: Debt Held by the Public: Baseline ...... 3,168 3,473 3,297 3,066 2,835 2,584 2,312 1,992 1,640 1,267 865 NA Budget resolution as estimated by CBO ...... 3,618 3,473 3,305 3,132 2,949 2,761 2,557 2,336 2,099 1,847 1,584 NA 1 The effect of the 1999 supplemental appropriations bill (P.L. 106–31), which was enacted after the resolution was passed, has been added to the resolution totals. Also, the projections include spending from contingent emergencies. 2 Less than $500 million. 3 Effect on outlays. 4 Effect on the surplus. Note: NA = not applicable. Source: Congressional Budget Office.

Mr. DOMENICI. Mr. President, this Edwards Kerry Murray SEC. 702. TERMINATION OF STEP UP IN BASIS AT Feingold Kohl Reed DEATH. table clearly shows there is no Social Feinstein Landrieu Reid Security money in this tax cut. (a) TERMINATION OF APPLICATION OF SEC- Graham Lautenberg Robb TION 1014.—Section 1014 (relating to basis of Secondly, maybe the Senator is con- Harkin Leahy Rockefeller property acquired from a decedent) is fused. CBO says the President still does Hollings Levin Sarbanes Inouye Lieberman Schumer amended by adding at the end the following: not lock up all the Social Security Johnson Lincoln Torricelli ‘‘(f) TERMINATION.—In the case of a dece- money. It is $30 billion short. Kennedy Mikulski Wellstone dent dying after December 31, 2007, this sec- Last, I suggest if they are really con- Kerrey Moynihan Wyden tion shall not apply to property for which cerned about the Social Security trust The motion was agreed to. basis is provided by section 1022.’’ fund size, why are they filibustering (b) CONFORMING AMENDMENT.—Subsection Mr. LAUTENBERG. I move to recon- (a) of section 1016 (relating to adjustments to against a lockbox that would encap- sider the vote. basis) is amended by striking ‘‘and’’ at the sulate it and make sure it is there? Mr. DOMENICI. I move to lay that end of paragraph (26), by striking the period In summary, the Senator from New motion on the table. at the end of paragraph (27) and inserting ‘‘; Jersey is using the wrong chart. It does The motion to lay on the table was and’’, and by adding at the end the following: not apply to the real situation. We are agreed to. ‘‘(28) to the extent provided in section 1022 using no Social Security money in Mr. KYL addressed the Chair. (relating to basis for certain property ac- terms of our tax cut. The PRESIDING OFFICER. The Sen- quired from a decedent dying after December I move to table the Lautenberg mo- ator from Arizona. 31, 2007).’’ SEC. 703. CARRYOVER BASIS AT DEATH. tion to recommit and ask for the yeas AMENDMENT NO. 1469, AS MODIFIED (a) GENERAL RULE.—Part II of subchapter and nays. (Purpose: To repeal the Federal estate and O of chapter 1 (relating to basis rules of gen- The PRESIDING OFFICER. Is there a gift taxes and the tax on generation-skip- eral application) is amended by inserting sufficient second? ping transfers, to repeal a step up basis at after section 1021 the following: There is a sufficient second. death, and for other purposes) ‘‘SEC. 1022. CARRYOVER BASIS FOR CERTAIN The yeas and nays were ordered. Mr. KYL. I call up amendment No. PROPERTY ACQUIRED FROM A DE- The PRESIDING OFFICER. The 1469, and ask unanimous consent that CEDENT DYING AFTER DECEMBER 31, 2007. question is on agreeing to the motion it be modified. ‘‘(a) CARRYOVER BASIS.—Except as other- to table the motion to recommit. The The PRESIDING OFFICER. Is there wise provided in this section, the basis of yeas and nays have been ordered. The objection? carryover basis property in the hands of a clerk will call the roll. Without objection, it is so ordered. person acquiring such property from a dece- The assistant legislative clerk called The clerk will report. dent shall be determined under section 1015. the roll. The legislative clerk read as follows: ‘‘(b) CARRYOVER BASIS PROPERTY DE- FINED.— The result was announced—yeas 55, The Senator from Arizona [Mr. KYL] pro- nays 45, as follows: poses an amendment numbered 1469, as modi- ‘‘(1) IN GENERAL.—For purposes of this sec- fied. tion, the term ‘carryover basis property’ [Rollcall Vote No. 236 Leg.] means any property— YEAS—55 Mr. KYL. I ask unanimous consent ‘‘(A) which is acquired from or passed from Abraham Frist Murkowski that reading of the amendment be dis- a decedent who died after December 31, 2007, Allard Gorton Nickles pensed with. and Ashcroft Gramm Roberts The PRESIDING OFFICER. Without ‘‘(B) which is not excluded pursuant to Bennett Grams Roth objection, it is so ordered. paragraph (2). Bond Grassley Santorum The amendment, as modified, is as The property taken into account under sub- Brownback Gregg Sessions Bunning Hagel follows: paragraph (A) shall be determined under sec- Shelby tion 1014(b) without regard to subparagraph Burns Hatch Smith (NH) Beginning on page 226, line 1, strike Campbell Helms (A) of the last sentence of paragraph (9) Smith (OR) through page 237, line 5, and insert: Chafee Hutchinson Snowe thereof. Cochran Hutchison TITLE VII—ESTATE AND GIFT TAX RELIEF Specter ‘‘(2) CERTAIN PROPERTY NOT CARRYOVER Collins Inhofe PROVISIONS BASIS PROPERTY.—The term ‘carryover basis Coverdell Jeffords Stevens Thomas Subtitle A—Repeal of Estate, Gift, and Gen- property’ does not include— Craig Kyl eration-Skipping Taxes; Repeal of Step Up Crapo Lott Thompson ‘‘(A) any item of gross income in respect of DeWine Lugar Thurmond in Basis At Death a decedent described in section 691, Domenici Mack Voinovich SEC. 701. REPEAL OF ESTATE, GIFT, AND GEN- ‘‘(B) property which was acquired from the Enzi McCain Warner ERATION-SKIPPING TAXES. decedent by the surviving spouse of the dece- Fitzgerald McConnell (a) IN GENERAL.—Subtitle B is hereby re- dent, the value of which would have been de- NAYS—45 pealed. ductible from the value of the taxable estate (b) EFFECTIVE DATE.—The repeal made by of the decedent under section 2056, as in ef- Akaka Boxer Conrad Baucus Breaux Daschle subsection (a) shall apply to the estates of fect on the day before the date of enactment Bayh Bryan Dodd decedents dying, and gifts and generation- of the Taxpayer Refund Act of 1999, and Biden Byrd Dorgan skipping transfers made, after December 31, ‘‘(C) any includible property of the dece- Bingaman Cleland Durbin 2007. dent if the aggregate adjusted fair market

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9893 value of such property does not exceed Subtitle B—Reductions of Estate, Gift, and repeal, because I believe death should $2,000,000. Generation-Skipping Transfer Taxes not be a taxable event. For purposes of this paragraph and para- SEC. 711. REDUCTIONS OF ESTATE, GIFT, AND Others agree that the tax is problem- graph (3), the term ‘adjusted fair market GENERATION-SKIPPING TRANSFER atic, but are concerned the appreciated value’ means, with respect to any property, TAXES. (a) MAXIMUM RATE OF TAX REDUCED TO 50 value of certain assets might escape fair market value reduced by any indebted- taxation forever if the death tax is re- ness secured by such property. PERCENT.—The table contained in section ‘‘(3) PHASEIN OF CARRYOVER BASIS IF IN- 2001(c)(1) is amended by striking the 2 high- pealed while the step-up in basis al- CLUDIBLE PROPERTY EXCEEDS $1,300,000.— est brackets and inserting the following: lowed by the Internal Revenue Code re- ‘‘(A) IN GENERAL.—If the adjusted fair mar- Over $2,500,000 ...... $1,025,800, plus 53% of the mains in effect. That is a legitimate ket value of the includible property of the excess over $2,500,000.’’ concern. decedent exceeds $1,300,000, but does not ex- (b) REPEAL OF PHASEOUT OF GRADUATED We try to reconcile these positions in ceed $2,000,000, the amount of the increase in RATES.—Subsection (c) of section 2001 is this amendment by eliminating both the basis of such property which would (but amended by striking paragraph (2). the death tax and the step-up in basis, for this paragraph) result under section 1014 (c) EFFECTIVE DATE.—The amendments shall be reduced by the amount which bears made by this section shall apply to estates of and attributing a carryover basis to in- the same ratio to such increase as such ex- decedents dying, and gifts made, after De- herited property so that all gains are cess bears to $700,000. cember 31, 2003. taxed at the time the property is sold ‘‘(B) ALLOCATION OF REDUCTION.—The re- Subtitle C—Simplification of Generation- and income is realized. duction under subparagraph (A) shall be allo- Skipping Transfer Tax The concept of a carryover basis is cated among only the includible property Mr. KYL. Mr. President, I begin not new. It exists in current law with having net appreciation and shall be allo- today by thanking Senator ROTH, the respect to gifts, property transferred in cated in proportion to the respective chairman of the Senate Finance Com- cases of divorce, and in connection amounts of such net appreciation. For purposes of the preceding sentence, the term mittee, for recognizing that there is a with involuntary conversions of prop- ‘net appreciation’ means the excess of the place for estate-tax relief in this bill. erty relating to theft, destruction, sei- adjusted fair market value over the dece- The measure reported by the Finance zure, requisition, or condemnation. dent’s adjusted basis immediately before Committee includes a variety of In the latter case, when an owner re- such decedent’s death. changes: a one-time reduction in the ceives compensation for involuntarily ‘‘(4) INCLUDIBLE PROPERTY.— top death-tax rate, converting the uni- converted property, a taxable gain nor- ‘‘(A) IN GENERAL.—For purposes of this sub- fied credit to a true exemption, and mally results to the extent that the section, the term ‘includible property’ means value of the compensation exceeds the property which would be included in the raising the annual gift exclusion. These gross estate of the decedent under any of the are all steps in the right direction. The basis of the converted property. How- following provisions as in effect on the day problem is, at the end of the day, the ever, section 1033 of the Internal Rev- before the date of the enactment of the Tax- Roth bill leaves the death tax in place. enue Code allows the taxpayer to defer payer Refund Act of 1999: By contrast, the bill that the House the recognition of the gain until the ‘‘(i) Section 2033. of Representatives passed last week property is sold. This amendment ‘‘(ii) Section 2038. phases out the death tax over a 10-year would treat the transfer of property at ‘‘(iii) Section 2040. period, and then implements a version death—perhaps the most involuntary ‘‘(iv) Section 2041. of the bill I introduced back in May conversion of all—the same way, defer- ‘‘(v) Section 2042(a)(1). with Senator BOB KERREY and a bipar- ring recognition of any gain until the ‘‘(B) EXCLUSION OF PROPERTY ACQUIRED BY SPOUSE.—Such term shall not include prop- tisan group of 19 other Senators. inherited property is sold. erty described in paragraph (2)(B). The amendment I am offering today Small estates, which currently pay ‘‘(c) REGULATIONS.—The Secretary shall is based upon that bipartisan initia- no estate tax by virtue of the unified prescribe such regulations as may be nec- tive. I would replace the death tax with credit, and no capital-gains tax by vir- essary to carry out the purposes of this sec- a tax on the appreciated value of inher- tue of the step up, would be unaffected tion.’’ ited assets to be paid when the assets by the basis changes being proposed (b) MISCELLANEOUS AMENDMENTS RELATED TO CARRYOVER BASIS.— are sold. In other words, the tax would here. The estate tax would be elimi- (1) CAPITAL GAIN TREATMENT FOR INHERITED be imposed when income is actually re- nated for them, and they would still ART WORK OR SIMILAR PROPERTY.— alized from inherited property. Death get the benefit of the current law’s (A) IN GENERAL.—Subparagraph (C) of sec- would no longer be a taxable event. step-up. The basis changes would apply tion 1221(3) (defining capital asset) is amend- This amendment represents an effort only to estates valued at over $2 mil- ed by inserting ‘‘(other than by reason of to find bipartisan consensus about how lion. section 1022)’’ after ‘‘is determined’’. to deal with the death tax, and I hope There are four problems I see with (B) COORDINATION WITH SECTION 170.—Para- all Senators will consider it with an the underlying bill’s death-tax provi- graph (1) of section 170(e) (relating to certain contributions of ordinary income and capital open mind. It is an approach that Sen- sions. First, the bill tries to make pal- gain property) is amended by adding at the ators MOYNIHAN and KERREY actually atable what is fundamentally indefen- end the following: ‘‘For purposes of this suggested to me during a hearing be- sible. Taxing death is wrong. paragraph, the determination of whether fore the Finance Committee two years Second, because it leaves the death property is a capital asset shall be made ago. Bill Beach of the Heritage Founda- tax in place, the need for expensive es- without regard to the exception contained in tion discussed its merits at the same tate-tax planning also remains. Some section 1221(3)(C) for basis determined under hearing. The more I looked into the people will have to divert money they section 1022.’’ idea since then, the more sense I would have spent on new equipment or (2) DEFINITION OF EXECUTOR.—Section 7701(a) (relating to definitions) is amended thought it made. The essence of it is new hires to insurance policies de- by adding at the end the following: very simple: It takes death out of the signed to cover death-tax costs. Still ‘‘(47) EXECUTOR.—The term ‘executor’ equation. Whether an asset is sold by others will spend millions on lawyers, means the executor or administrator of the the decedent during his or her lifetime, accountants, and other advisors for decedent, or, if there is no executor or ad- or by someone who later inherits the death-tax planning purposes. But that ministrator appointed, qualified, and acting property, the gain is taxed the same. leaves fewer resources to invest, start within the United States, then any person in Under this approach, death neither up new businesses, hire additional peo- actual or constructive possession of any confers a benefit, nor results in a puni- ple, or pay better wages. property of the decedent.’’ tive, confiscatory tax. This is an ap- Third, the higher exemption proposed (3) CLERICAL AMENDMENT.—The table of sections for part II of subchapter O of chap- proach that I believe both Republicans in the committee bill provides some re- ter 1 is amended by adding at the end the fol- and Democrats should be able to ac- lief, but I believe it also serves as an lowing new item: cept. artificial cap on small businesses’ ‘‘Sec. 1022. Carryover basis for certain prop- We know that many Americans are growth. To avoid the death tax, an en- erty acquired from a decedent troubled by the estate tax’s complexity trepreneur merely needs to limit the dying after December 31, 2007.’’ and high rates, and by the mere fact growth of his or her business so it does (c) EFFECTIVE DATE.—The amendments that it is triggered by a person’s death not exceed the $1.5 million exemption made by this section shall apply to estates of rather than the realization of income. amount. That means fewer jobs, and decedents dying after December 31, 2007. For a long time, I have advocated its less output.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9894 CONGRESSIONAL RECORD — SENATE July 30, 1999 I believe it would be better to elimi- posable personal income. So much for Now, for days on end we have been nate the tax and, if there is a need to the contention that this is a tax that talking about what Mr. Greenspan said impose a tax, impose it when income is touches only a few. here, what Mr. Greenspan said here. As actually realized—that is, when the as- It appears that the chairman of the our friend, the former Attorney Gen- sets are sold. That is what this amend- Finance Committee will raise a point eral Mitchell said: Watch what we do, ment would do. of order against this amendment. I not what we say. I want to stress to colleagues, par- think that is regrettable. If there is a He has been trying to stay the ticularly colleagues on the Democratic way to improve this amendment, I am course; namely, just take, in a sense, side of the aisle, that we do not allow willing to work with Chairman ROTH any surpluses—don’t argue about them, appreciation in inherited assets to go on any ideas he might have. But if the but if you can find them, then apply untaxed, as other death-tax repeal pro- point of order is intended to preserve that to reducing the national debt. So posals would do. We are merely saying the death tax as a permanent part of often we say that all of us want to go that if a tax is imposed, it should be the Tax Code, we have a very signifi- to heaven but we don’t want to do what imposed when income is realized. Earn- cant difference of opinion, and I think is necessary to get there. All of us say ings from an asset should be taxed the he should allow the Senate to work its we want to reduce or pay down the na- same whether the asset is earned or in- will, rather than use a parliamentary tional debt, but we don’t want to do herited. point of order to block it. what is necessary to get there. All you The question has been posed at var- This is a good amendment; the policy have to do in order to get there or re- ious times during debate on this bill it proposes is sound, and fair. Its time duce the debt is vote for this motion. whether the American people want tax has come. I urge my colleagues to sup- I yield to Senator LIEBERMAN. relief. Let me answer that question port the amendment. Mr. LIEBERMAN. Mr. President, in with respect to the issue at hand. Al- As I say, this amendment would re- the interest of legislative efficiency, though most Americans will probably peal the estate tax, the so-called death let alone fiscal responsibility, Senator never pay a death tax, most people still tax. According to the Joint Tax Com- LEVIN and I are withdrawing our mo- sense that there is something terribly mittee, under scoring, it cannot occur tion to strike the entire tax cut and wrong with a system that allows Wash- until the eighth year or until 2007. But joining to raise the same issue with ington to seize more than half of what- at that point it replaces the death tax Senator HOLLINGS on this amendment ever is left after someone dies—a sys- with a tax on the sale of the assets, which says you can’t have a tax cut if tem that prevents hard-working Amer- usually a capital gains tax, if and when the surplus is not there, and there is no icans from passing the bulk of their the property is sold. In other words, it evidence the surplus is there. The PRESIDING OFFICER. The time nest eggs to their children or grand- is a very fair compromise between of the Senator has expired. The Sen- children. those who believe there should be some Seventy-seven percent of the people tax on the sale of assets and those who ator from Delaware. Mr. ROTH. Mr. President, I rise in responding to a survey by the Polling believe that death itself should not be opposition to this motion. In a very Company last year indicated that they a taxable event. I am advised that a point of order real way, this is the final vote on the favor repeal of the death tax. When will be made that this amendment is legislation before us. Let me point out Californians had the chance to weigh in not germane. If that is done, I believe that both Democrats and Republicans with a ballot proposition, they voted that to be very unfortunate. But be- have broadly agreed that there should two-to-one to repeal their state’s death cause Senator KERREY would prefer be a tax cut. That tax cut should be tax. The legislatures of five other that we not proceed with a vote on the now. The American people are entitled states have enacted legislation since point of order, I will not contest the to relief. What we are really doing here 1997 that will either eliminate or sig- ruling of the Chair. is restoring the excess taxes already nificantly reduce the burden of their I believe that repeal of the death tax paid. For that reason, I shall make a states’ death taxes. enjoys more than majority support and motion to table. The 1995 White House Conference on am confident that in the conference Let me reemphasize again, the Demo- Small Business identified the death tax committee, we will be able to accept crats have had a proposal of $300 billion as one of small business’s top concerns, the House version or something close in a tax cut. There has been a $500 bil- and delegates to the conference voted to it which repeals the death tax along lion tax cut. We have followed the overwhelming to endorse its repeal. the lines of the Kyl-Kerrey approach. budget recommendations of $792 bil- Outright repeal received the fourth I urge my colleagues to support re- lion. To deny the working people of highest number of votes among all res- peal of the death tax. If a point of order America the tax break they deserve olutions approved at the conference. is made, I will not contest it. today makes no sense at all. A couple of other points to consider The PRESIDING OFFICER. Who For that reason, I move to table the about the death tax. it is one of the seeks recognition? motion to recommit, and I ask for the most inefficient taxes that the govern- Mr. MOYNIHAN. Mr. President, the yeas and nays. ment levies. Alicia Munnell, who was a pending amendment is not germane. I The PRESIDING OFFICER. Is there a member of President Clinton’s Council therefore raise a point of order that the sufficient second? There is a sufficient of Economic Advisors, estimated that amendment violates section 305(b)(2) of second. the costs of complying with death-tax the Congressional Budget Act of 1974. The yeas and nays were ordered. laws are of roughly the same mag- The PRESIDING OFFICER. The Mr. LEVIN. Mr. President, I join in nitude as the revenue raised. In 1998, point of order is well taken and the cosponsoring the Hollings motion to that was about $23 billion. In other amendment falls. Who seeks recogni- recommit the bill to the Finance Com- words, for every dollar of tax revenue tion? mittee with instructions to defer tax raised by the death tax, another dollar Mr. HOLLINGS addressed the Chair. reductions in order to reduce the na- is squandered in the economy simply to The PRESIDING OFFICER. The Sen- tional debt. I cosponsored the Hollings comply with or avoid the tax. ator from South Carolina. motion in lieu of calling up the Lieber- The tax hurts the economy. A report MOTION TO RECOMMIT man-Levin amendment because the ef- issued by the Joint Economic Com- Mr. HOLLINGS. Mr. President, on be- fect of the Hollings motion, had it been mittee in December of 1998 concluded half of Senator LIEBERMAN, Senator adopted, would have been largely the that the existence of the death tax this LEVIN, and myself, I move to recommit same as the Lieberman-Levin amend- century has reduced the stock of cap- the bill to the Finance Committee with ment. ital in the economy by nearly half a instructions that the committee report The tax program before the Senate is trillion dollars. By repealing it and back within 3 days with an amendment unfair to middle income Americans, it putting those resources to better use, that implements the Greenspan rec- is economically unwise and it’s based the Joint Committee estimated that as ommendations by deferring tax reduc- on unrealistic assumptions. The unfair- many as 240,000 jobs could be created tions and by taking any projected rev- ness is perhaps best shown by the fact over seven years and Americans would enue surplus and actually reducing the that about two-thirds of its tax bene- have an additional $24.4 billion in dis- national debt. fits go to the upper one-fifth of our

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9895 people. In addition to being unfair, it is tax bill like the one before us, head Payments and Social Security’’ based economically unwise in that jeopard- back down the road toward new future on data which has been provided to me izes Medicare, fails to strengthen So- deficits. by the Office of Management and Budg- cial Security, and risks higher interest I joined with Senator HOLLINGS in his et (OMB) be printed in the RECORD. rates. motion to defer the tax cut, because it (See Exhibit 1.) This bill takes us back to the bad old seems clear to me that we should first days of backloaded tax breaks whose see if the surplus is real before we The table shows that through 2035, real costs explode several years after adopt tax cuts; second, if those sur- under current projections, that al- enactment. This budgetary time bomb pluses are real, we should pay down the though the cash interest payments to is set to go off at roughly the same national debt faster; and third, we the public on external debt go down time as the Medicare trust fund is ex- should save tax cuts for a time of eco- over the course of the next 15 years or pected to be bankrupt and the bill be- nomic slow down. so to zero, the amount of interest that gins to come due for Social Security. During the consideration of this leg- the Treasury will be required to pay to In that decade, as the ‘‘baby boomers’’ islation and the national debate which the Social Security Trust Funds in begin to retire, the Social Security has surrounded it, much has been made bonds and eventually in cash rises Trust fund will begin to run a deficit, of the projected reduction of the na- steadily during that period and beyond. requiring the redemption of Treasury tional debt and concurrent reductions After that, the amount of cash nec- bonds which it holds. in interest payments. Although the essary to redeem bonds representing It is also based on unrealistic projec- debt held by the public, or the so-called principal held by the Social Security tions. Projections are always risky. We external debt, is projected to be paid Trusts Funds kicks in and then rises have seen many federal budget esti- down by the surpluses accumulated in sharply. The projections show that in mates, and we know well that as quick- the Social Security Trust Funds, inter- the year 2025, for example, the Treas- ly as these surpluses appear, they can est paid to the Social Security Trust ury would be required to pay to Social disappear. In 1981, President Ronald funds in the form of bonds will con- Security $295 billion in interest pay- Reagan introduced his Economic Re- tinue to increase for more than a dec- ments and an additional $35 billion in covery Tax Act which included huge ade. At that time, in approximately cash to redeem bonds representing tax cuts and predictions that the budg- 2014, unless Social Security reform has principal held by the Social Security et would be balanced by 1984. In 1981, I been accomplished, the Trust Funds Trust Funds which will then be needed opposed the Reagan tax cut because I will no longer be in surplus, but in- was convinced that it would lead to stead there will be a shortfall in those to pay benefits to recipients. Ten years huge deficits. We have paid dearly for funds. As the bonds held by the Social later, in the year 2035, the projections the debt which resulted from that leg- Security Trust Funds are redeemed, we show that, in the absence of Social se- islation. In 1992, the deficit in the fed- will therefore begin paying a portion of curity reform, the Treasury would be eral budget was $290 billion. The re- the interest owed to the Social Secu- required to pay to Social Security $135 markable progress which has brought rity Trust Funds, and eventually all of billion in interest payments and an ad- us now to the threshold of surpluses the interest owed to the Social Secu- ditional $576 in cash for bonds rep- has come about in large part as a re- rity Trust Funds, in cash. Also, we will resenting principal redeemed. These sult of the deficit reduction package then have to redeem the trillions of obligations are one more powerful rea- which President Clinton presented in dollars of bonds representing principal son why a huge tax cut, at this time, 1993, and which this Senate passed by a owed to the trust funds. before the surpluses have even actually margin of one vote, the Vice-Presi- Mr. President, I ask unanimous con- materialized is, in my judgement, both dent’s. We should not now, by passing a sent that a table entitled ‘‘Interest unwise and imprudent.

EXHIBIT 1

INTEREST PAYMENTS AND SOCIAL SECURITY [By fiscal year, in billions of dollars]

2000 2005 2010 2015 2020 2025 2030 2035

Cash Interest Paid to Trust Fund ...... 0 0 0 0 139.7 295 .4 253 .3 135.9 Interest Paid on External Debt ...... 218 .5 155 .2 43 .1 0 0 0 0 0 Bond Interest Paid to Trust Fund ...... 58.2 98.5 158.8 225.0 139.2 0 0 0 Trust Fund Principal Redemptions in Cash ...... 0 0 0 0 0 35 .3 279.7 576 .7 Source: OMB.

The PRESIDING OFFICER. The Schumer Snowe Thurmond The PRESIDING OFFICER. The question is on agreeing to the motion Sessions Specter Torricelli clerk will report. Shelby Stevens Warner to table the motion to recommit. The Smith (NH) Thomas Wyden The legislative clerk read as follows: yeas and nays have been ordered. The Smith (OR) Thompson The Senator from Arizona (Mr. MCCAIN) clerk will call the roll. NAYS—35 proposes an amendment numbered 1397. The legislative clerk called the roll. Akaka Edwards Lincoln Mr. MCCAIN. Mr. President, I ask The result was announced—yeas 65, Baucus Feingold Mikulski unanimous consent that reading of the nays 35, as follows: Biden Feinstein Moynihan amendment be dispensed with. Boxer Graham Murray The PRESIDING OFFICER. Without [Rollcall Vote No. 237 Leg.] Bryan Harkin Reed objection, it is so ordered. YEAS—65 Byrd Hollings Reid Cleland Inouye (The amendment is printed in a pre- Abraham Crapo Jeffords Robb Conrad Johnson Rockefeller vious edition of the RECORD.) Allard DeWine Kennedy Daschle Lautenberg Sarbanes Mr. MCCAIN. Mr. President, my Ashcroft Domenici Kerrey Dodd Leahy Voinovich Bayh Enzi Kerry Dorgan Levin amendment would create a national Wellstone Bennett Fitzgerald Kohl Durbin Lieberman three-year school choice demonstra- Bingaman Frist Kyl Bond Gorton Landrieu The motion was agreed to. tion for children from economically Breaux Gramm Lott disadvantaged families and the cost of Mr. MCCAIN addressed the Chair. Brownback Grams Lugar this is fully paid for by eliminating un- Bunning Grassley Mack The PRESIDING OFFICER. The Sen- necessary corporate subsidies for the Burns Gregg McCain ator from Arizona is recognized. Campbell Hagel McConnell ethanol, oil, gas, and sugar industries. Chafee Hatch Murkowski AMENDMENT NO. 1397 This demonstration would provide Cochran Helms Nickles Mr. MCCAIN. Mr. President, I call up educational opportunities for low-in- Collins Hutchinson Roberts Coverdell Hutchison Roth amendment No. 1397 and ask for its im- come children by providing parents and Craig Inhofe Santorum mediate consideration. students the freedom to choose the

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9896 CONGRESSIONAL RECORD — SENATE July 30, 1999 best school for their unique academic Budget Act, I move to waive the point The Senator from Massachusetts [Mr. KEN- needs, while encouraging schools to be of order against amendment No. 1397, NEDY] proposes an amendment numbered creative and responsive to the needs of and I ask for the yeas and nays. 1383. all students. The PRESIDING OFFICER. Is there a Mr. KENNEDY. Mr. President, I ask Each eligible child would receive sufficient second? unanimous consent reading of the $2,000 each year for attending any There is a sufficient second. amendment be dispensed with. school of their choice—including pri- The yeas and nays were ordered. The PRESIDING OFFICER. Without vate or religious schools. The PRESIDING OFFICER (Mr. objection, it is so ordered. In total, the amendment authorizes HAGEL). The question is on agreeing to (The amendment is printed in a pre- $5.4 billion for the three-year school the motion to waive the Congressional vious edition of the RECORD.) choice demonstration program, as well Budget Act in relation to the McCain Mr. KENNEDY. Mr. President, Re- as a GAO evaluation of the program amendment No. 1397. The yeas and nays publicans continue to deny us the op- upon its completion. The cost of this have been ordered. The clerk will call portunity to vote on our bill to raise important test of school vouchers is the roll. the minimum wage for the lowest paid The legislative assistant proceed pro- fully offset by eliminating more than workers. That is why I have filed the ceeded to call the roll. $5.4 billion in unnecessary and inequi- Fair Minimum Wage Act of 1999 as an The yeas and nays resulted—yeas 13, amendment to the Budget Reconcili- table corporate tax loopholes which nays 87, as follows: benefit the ethanol, sugar, gas and oil ation Bill. [Rollcall Vote No. 238 Leg.] industries. Shame on Congress for giving tax YEAS—13 These tuition vouchers would help breaks to the rich, but denying a pay provide over 1 million low-income chil- Allard Kyl Shelby raise for the working poor. The $792 bil- Biden Lieberman Specter lion Republican tax package will dis- dren trapped in poor performing DeWine McCain Thompson schools the same educational choices Gregg Moynihan proportionately benefit the richest as children of economic privilege. Hutchinson Santorum Americans. Almost thirty percent of Providing educational choice to low- NAYS—87 the tax breaks, once fully imple- income children is an important step in Abraham Edwards Lincoln mented, will go to the wealthiest 1 per- ensuring all our children, not just Akaka Enzi Lott cent of Americans—those who make wealthy children can make their Ashcroft Feingold Lugar over $300,000 a year. Seventy-five per- Baucus Feinstein Mack cent of the tax breaks will benefit the dreams a reality. Bayh Fitzgerald McConnell We can not afford to continue sub- Bennett Frist Mikulski wealthiest 20 percent of Americans— sidizing the ethanol, sugar, oil and gas Bingaman Gorton Murkowski those with an average income of over industries at a time when we are strug- Bond Graham Murray $139,000. Boxer Gramm Nickles gling to save Social Security and Medi- Breaux Grams Reed But these tax breaks do virtually care, provide much needed and de- Brownback Grassley Reid nothing for the lowest paid workers. served tax relief to American families Bryan Hagel Robb They give minimum wage earners less Bunning Harkin Roberts than $22 a year in tax relief, compared and strengthening our investment in Burns Hatch Rockefeller the health, security and education of Byrd Helms Roth to an average tax break of $22,964 a our children—our future. Campbell Hollings Sarbanes year for the wealthiest Americans. The The PRESIDING OFFICER. The time Chafee Hutchison Schumer Republicans want to give America’s Cleland Inhofe Sessions of the Senator has expired. Cochran Inouye Smith (NH) wealthiest 1 percent a tax break that is Mr. REED addressed the Chair. Collins Jeffords Smith (OR) equal to or higher than what 40 percent The PRESIDING OFFICER. The Sen- Conrad Johnson Snowe of Americans earn in a year. Coverdell Kennedy Stevens The vast magnitude of these tax ator from Rhode Island is recognized. Craig Kerrey Thomas Mr. REED. Mr. President, I oppose Crapo Kerry Thurmond breaks is possible only because they de- this amendment on procedural Daschle Kohl Torricelli pend on severe budget cuts in Head grounds. This is a highly complex sub- Dodd Landrieu Voinovich Start, Summer Jobs for low-income Domenici Lautenberg Warner ject. It is a subject that I am sure will Dorgan Leahy Wellstone youth, and HUD housing subsidies for be debated extensively as we consider Durbin Levin Wyden low-income tenants. Shame on Con- the Elementary and Secondary Edu- The PRESIDING OFFICER. On this gress for ignoring the majority of cation Act. But in principle also I vote the yeas are 13 and the nays are America’s workers to benefit the think it is inappropriate to divert 87. Three-fifths of the Senators present wealthy few. these resources to private education and voting, not having voted in the af- Our amendment is a modest proposal when we have so many unmet needs in firmative, the motion to waive the to raise the minimum wage from its public education. Budget Act is rejected. The point of present level of $5.15 an hour to $5.65 on I believe also that if we adopt the un- order is sustained, and the amendment September 1, 1999 and to $6.15 on Sep- derlying tax bill there will be even less falls. tember 1, 2000. It will help over 11 mil- resources to devote to public education The Senator from Nebraska. lion American families. and it will exacerbate the demands CHANGE OF VOTE At $6.15 an hour, working full-time, a that we already must meet with re- Mr. HAGEL. Mr. President, on roll- minimum wage worker would earn spect to public education. call No. 238, I voted ‘‘aye’’. It was my $12,800 a year under this amendment— There is a difference between private intention to vote ‘‘no.’’ Therefore, I an increase of over $2,000 a year. schools and public schools. Private ask unanimous consent that I be per- That additional $2,000 will pay for schools can exclude children. Public mitted to change my vote since it seven months of groceries to feed the schools must educate every child in would in no way change the outcome of average family. It will pay the rent for America. the vote. an average family for five months. It I believe our obligation and commit- The PRESIDING OFFICER. Without will pay for almost ten months of utili- ment is to public education, and this objection, it is so ordered. ties. It will cover a year and a half of amendment will defeat that. (The foregoing tally has been tuition and fees at a two-year college, I also note that the pending amend- changed to reflect the above order.) and provide greater opportunities for ment is not germane. AMENDMENT NO. 1383 those struggling at the minimum wage Therefore, I raise a point of order (Purpose: To Increase the Federal minimum to obtain the skills needed to obtain that the amendment violates Section wage.) better jobs. 305(b)(2) of the Congressional Budget Mr. KENNEDY. Mr. President, I have The national economy is the strong- Act of 1974. an amendment at the desk. est in a generation, with the lowest un- The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The employment rate in three decades. ator from Arizona. clerk will report. Under the leadership of President Clin- Mr. MCCAIN. Mr. President, pursuant The assistant legislative clerk read ton, the country as a whole is enjoying to section 904 of the Congressional as follows: a remarkable period of growth and

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9897 prosperity. Enterprise and entrepre- The PRESIDING OFFICER. Is there a minutes. It eliminates taxes on capital neurship are flourishing—generating sufficient second? gains, on estates, and on dividends, all unprecedented expansion, with impres- There is a sufficient second. of which have been taxed before. It is sive efficiencies and significant job cre- The yeas and nays were ordered. not regressive. There is no tax for a ation. The stock market has soared. In- The PRESIDING OFFICER. The family of four up to $27,500 in earnings, flation is low, and interest rates are question is on agreeing to the motion which is 53 percent of Americans. low. We are witnessing the strongest to waive the Budget Act in relation to There is a reduction in tax for $1,000 up peace-time growth in our history. the Kennedy amendment, No. 1383. The to $35,000. It is even at $75,000. An af- The sad reality, however, is that low yeas and nays have been ordered. firmative vote will signal a protest to wage workers are being left behind. The clerk will call the roll. urge the Finance Committee and Ways And the Republican tax bill only wid- The legislative clerk called the roll. and Means to give serious consider- ens the gap between the wealthy and The yeas and nays resulted—yeas 46, ation to this important reform. the working poor. The Republican pen- nays 54, as follows: The PRESIDING OFFICER. The Sen- sion provisions, for example, only ben- [Rollcall Vote No. 239 Leg.] ator from Montana. efit high income Americans with extra YEAS—46 Mr. BAUCUS. Mr. President, we have income to contribute to IRAs and Akaka Feingold Lincoln not seen a copy of this amendment, but 401(k) plans. Raising the contribution Baucus Feinstein Mikulski I assume it is the standard flat tax limits on these savings vehicles only Bayh Fitzgerald Moynihan that has been discussed for years. If discourages companies from offering Biden Harkin Murray that is the case, then the net effect of Bingaman Hollings across-the-board retirement plans that Reed it will be, for most income earners, Boxer Inouye Reid benefit all employees. The Republican Breaux Johnson Robb most American taxpayers, in effect, a tax bill also undermines the current Bryan Kennedy Rockefeller tax increase. The only taxpayers with a Byrd Kerrey tax code rules that require retirement Sarbanes Cleland Kerry tax reduction under the standard flat Schumer benefits to be distributed fairly among Conrad Kohl tax proposal will be those of adjusted Specter lower and higher paid workers. Daschle Landrieu gross incomes of over $200,000, and the Torricelli Under current law, minimum wage Dodd Lautenberg tax reduction will be 50 percent. Stated Dorgan Leahy Wellstone earners can barely make ends meet. Durbin Levin Wyden differently, this is a tax on workers but Working 40 hours a week, 52 weeks a Edwards Lieberman it is not a tax on investment income, it year, they earn $10,712—almost $3,200 NAYS—54 is not a tax on other income, which I below the poverty line for a family of think is unfair. Abraham Frist McCain three. The real value of the minimum Allard Gorton McConnell In any event, the amendment is not wage is now more than $2.00 below Ashcroft Graham Murkowski germane. I raise a point of order that it what it was in 1968. To have the pur- Bennett Gramm Nickles violates section 305(b)(2) of the Budget chasing power it had in 1968, the min- Bond Grams Roberts Brownback Grassley Roth Act. imum wage should today be at least Bunning Gregg Santorum Mr. SPECTER. Mr. President, under $7.49 an hour, not $5.15. This uncon- Burns Hagel Sessions the applicable provision, I move to scionable gap shows how far we have Campbell Hatch Shelby waive the provision as to germaneness, Chafee Helms Smith (NH) fallen short over the past three decades Cochran Hutchinson Smith (OR) and I ask for the yeas and nays. in giving low income workers their fair Collins Hutchison Snowe The PRESIDING OFFICER. Is there a share of the country’s extraordinary Coverdell Inhofe Stevens sufficient second? prosperity. Craig Jeffords Thomas Crapo Kyl Thompson There is a sufficient second. To rub salt in the wound, Congress DeWine Lott Thurmond The yeas and nays were ordered. recently signed off on a cost of living Domenici Lugar Voinovich The PRESIDING OFFICER. The pay increase for every member of the Enzi Mack Warner question is on agreeing to the motion Senate and House of Representatives. The PRESIDING OFFICER. On this to waive the Budget Act with respect Republican Senators don’t blink about vote, the yeas are 46, the nays are 54. to amendment No. 1386. The yeas and giving themselves an increase—how Three-fifths of the Senators duly cho- nays have been ordered. The clerk will can they possibly deny a fair increase sen and sworn not having voted in the call the roll. to minimum wage workers? affirmative, the motion is rejected. The assistant legislative clerk called It is time to raise the Federal min- The point of order is sustained, and the the roll. imum wage. No one who works for a amendment falls. The yeas and nays resulted—yeas 35, living should have to live in poverty. I AMENDMENT NO. 1386 nays 65, as follows: urge my colleagues to join me in rais- (Purpose: To provide a complete substitute) [Rollcall Vote No. 240 Leg.] ing the minimum wage. YEAS—35 The PRESIDING OFFICER. The Sen- Mr. SPECTER. Mr. President, I call ator from Oklahoma. up amendment No. 1386. Allard Gramm Murkowski Bennett Grassley Nickles Mr. NICKLES. Mr. President, we The PRESIDING OFFICER. The clerk will report. Brownback Gregg Reid should not be passing a law on a tax Burns Hatch Sessions cut bill to say it is against the law The legislative clerk read as follows: Campbell Helms Shelby The Senator from Pennsylvania [Mr. SPEC- Cochran Hutchison Smith (NH) anywhere in the country to work for Collins Inhofe $6.10 an hour, that the Federal Govern- TER] proposes an amendment numbered 1386. Specter Coverdell Kyl Stevens Craig Lott ment, in its infinite wisdom, decided if (The amendment is printed in a pre- Thomas Crapo Mack you don’t have a job that pays at least vious edition of the RECORD.) Thompson Frist McCain Thurmond $6.15 an hour you should be unem- The PRESIDING OFFICER. The Sen- Gorton McConnell ployed. That would be a serious mis- ator from Pennsylvania. take. Mr. SPECTER. Mr. President, I urge NAYS—65 This language in this amendment is my colleagues to support this flat tax Abraham Conrad Harkin Akaka Daschle Hollings not germane to the bill now before us. amendment realistically as a protest Ashcroft DeWine Hutchinson I now raise a point of order under sec- against the complicated Tax Code Baucus Dodd Inouye tion 305(b)(2) of the Congressional which now numbers some 7.5 million Bayh Domenici Jeffords words, costs $600 billion in compliance, Biden Dorgan Johnson Budget Act. Bingaman Durbin Kennedy Mr. KENNEDY. Mr. President, pursu- and takes 5.4 billion hours to comply. Bond Edwards Kerrey ant to section 904 of the Congressional This amendment is supported by Sen- Boxer Enzi Kerry Budget Act, I move to waive all the ap- ator LOTT, Senator NICKLES, Senator Breaux Feingold Kohl Bryan Feinstein Landrieu plicable sections of the Act for consid- CRAIG, and others. Bunning Fitzgerald Lautenberg eration of the pending amendment. In a very shorthand statement, this Byrd Graham Leahy Mr. President, I ask for the yeas and is a tax return under the flat tax. It is Chafee Grams Levin nays. a postcard, and it can be filled out in 15 Cleland Hagel Lieberman

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9898 CONGRESSIONAL RECORD — SENATE July 30, 1999 Lincoln Roberts Snowe The PRESIDING OFFICER. The Sen- Three-fifths of the Senators duly cho- Lugar Rockefeller Torricelli ator from Delaware. sen and sworn not having voted in the Mikulski Roth Voinovich Moynihan Santorum Warner Mr. ROTH. Mr. President, Senator affirmative, the motion is rejected. Murray Sarbanes Wellstone SCHUMER’s amendment would provide a The point of order is sustained and the Reed Schumer Wyden full tax deduction for higher education amendment falls. Robb Smith (OR) and a tax credit for student loans. OBJECTION TO COMMITTEE MEETING The PRESIDING OFFICER. On this While I recognize that we need to assist The PRESIDING OFFICER. The Sen- vote the yeas are 35, the nays are 65. American families with the cost of ator from Rhode Island. Three-fifths of the Senators duly cho- higher education, I cannot support this Mr. REED. Mr. President, I note that sen and sworn not having voted in the amendment. The costs of this amend- the banking committee is meeting at affirmative, the motion is rejected. ment are enormous. I understand that this time, and objection to that meet- The point of order is sustained and the it would cost something like $25 billion ing has been made for the RECORD. amendment falls. over 10 years, but the pay-for would The PRESIDING OFFICER. It is so AMENDMENT NO. 1416 delay the AMT relief that is provided noted. (Purpose: To amend the Internal Revenue in this bill. That delay would impact The PRESIDING OFFICER. The Sen- Code of 1986 to make higher education on working Americans, depriving them ator from Oklahoma. more affordable by providing a full tax de- of the child credit, personal exemp- Mr. NICKLES. Mr. President, I thank duction for higher education expenses and tions, and, ironically, educational ben- the majority leader, the minority lead- a tax credit for student education loans) efits such as the HOPE scholarship and er, and also Senator ROTH, Senator Mr. SCHUMER. Mr. President, I call lifetime earnings. REID, and Senator MOYNIHAN. up my amendment. Mr. President, I regret that I must We have made very good progress in The PRESIDING OFFICER. The make a point of order against the reducing the number of amendments. I clerk will report. amendment under section 305 of the think we are down to maybe a few The legislative assistant read as fol- Budget Act on the grounds it is not amendments. I know that on this side lows: germane. we are only looking at one or two that The Senator from New York [Mr. SCHU- The PRESIDING OFFICER. The Sen- would require a rollcall vote. We are MER], for himself, Ms. SNOWE, Mr. BAYH, and ator from New York. trying to make it one or two. We have Mr. SMITH of Oregon, proposes an amend- Mr. SCHUMER. Mr. President, I ment numbered 1416. a few more requests. I think we are move to waive the Budget Act, and I making good progress. I know Senator Mr. SCHUMER. Mr. President, I ask ask for the yeas and nays. REID is making good progress. unanimous consent that reading of the The PRESIDING OFFICER. Is there a That is for the information of our amendment be dispensed with. sufficient second? There is a sufficient colleagues. The PRESIDING OFFICER. Without second. We would also like to keep the roll- objection, it is so ordered. The yeas and nays were ordered. call votes to 10 minutes. The last roll- (The text of the amendment is print- The PRESIDING OFFICER. The call vote went a little extra. We are ed in a prior edition of the RECORD.) question is on agreeing to the motion going to finish this bill today. It is in Mr. SCHUMER. I thank the Chair. I to waive the Congressional Budget Act everybody’s interest to stay on the yield 30 seconds of my time to the Sen- in relation to the Schumer amendment floor and to have timely rollcall votes. ator from Maine when I am completed. No. 1416. The yeas and nays have been We expect to accept a couple of This amendment is simple. It is bi- ordered. amendments right now. That will help partisan, sponsored by the Senator The clerk will call the roll. expedite the process. from Maine, Ms. SNOWE, Mr. SMITH of The legislative assistant called the I yield the floor. Oregon, Mr. BAYH of Indiana, and my- roll. AMENDMENT NO. 1452 self. It seeks no political advantage for The result was announced—yeas 53, (Purpose: To increase the mandatory spend- either side. It helps the middle class in nays 47, as follows: ing in the Child Care and Development a vitally needed way, by making col- [Rollcall Vote No. 241 Leg.] Block Grant by $10,000,000,000 over 10 years lege tuition, up to $12,000, fully deduct- YEAS—53 in order to assist working families with ible for all those in the 28 percent Abraham Edwards Lincoln the costs of child care, and for other pur- bracket or lower. That is over 90 per- Akaka Feingold Mikulski poses) cent of all Americans. The average Baucus Feinstein Moynihan Mr. DODD. Mr. President, I call up middle class person making $50,000, Bayh Fitzgerald Murray amendment 1452 and ask for its imme- Biden Graham $60,000, $70,000 a year sweats at night Reed diate consideration. Bingaman Harkin Reid worrying about paying for the cost of Boxer Hollings Robb The PRESIDING OFFICER. The college, which is getting higher and Breaux Inouye Rockefeller clerk will report. Bryan Johnson higher. I urge support of the amend- Santorum The assistant legislative clerk read Byrd Kennedy Sarbanes ment. Cleland Kerrey as follows: Schumer The PRESIDING OFFICER (Mr. BUN- Collins Kerry The Senator from Connecticut [Mr. DODD], Conrad Kohl Smith (OR) NING). The Senator’s 30 seconds have Snowe for himself and Mr. JEFFORDS, proposes an Daschle Landrieu amendment numbered 1452. expired. DeWine Lautenberg Specter The Senator from Maine. Dodd Leahy Torricelli (The text of the amendment is print- Ms. SNOWE. Mr. President, I urge Dorgan Levin Wellstone ed in a previous edition of the RECORD.) my colleagues to support this amend- Durbin Lieberman Wyden Mr. JEFFORDS. Mr. President, the ment. It will dramatically improve ac- NAYS—47 child development block grant has cess for working American families in Allard Gorton McCain helped thousands of families keep jobs this country to pursue higher edu- Ashcroft Gramm McConnell by helping offset the enormous costs of cation. The bottom line is that even as Bennett Grams Murkowski child care, which enable them to go to Bond Grassley Nickles the cost of college has quadrupled over Brownback Gregg Roberts work. In most cases, subsidies are so the past 20 years, in fact, growing near- Bunning Hagel Roth low that families are forced to use the ly to twice the rate of inflation, the Burns Hatch Sessions cheapest and, in many cases, the poor- Campbell Helms Shelby value of Pell grants has actually de- Chafee Hutchinson est quality child care. Smith (NH) creased. Where it used to cover 39 per- Cochran Hutchison There are 66 Senators who voted for Stevens Coverdell Inhofe cent of the cost of public education, Thomas the money in the budget for this pur- Craig Jeffords today it is 22 percent. In fact, in the Crapo Kyl Thompson pose. The kids at the Burlington YMCA last 5 years alone, the total amount of Domenici Lott Thurmond are right: We must act now for quality college loans has soared by 82 percent, Enzi Lugar Voinovich child care. even after adjusted for inflation. I hope Frist Mack Warner Mr. DODD. Mr. President, this is a that we will help American families The PRESIDING OFFICER. On this very good amendment. Only one in 10 with this amendment. vote the yeas are 53, the nays are 47. eligible children is being served.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9899 I thank my colleagues, Senators JEF- The yeas and nays have been ordered. That is consistent with what the Vet- FORDS, CHAFEE, SNOWE, COLLINS, ROB- The clerk will call the roll. erans’ Affairs Committee has said we ERTS, SPECTER, STEVENS, and DOMENICI. The assistant legislative clerk called need to do. That is consistent with the This is a large bipartisan group that the roll. veterans independent budget. That is cares about this very much. The result was announced—yeas 55, consistent with the report we did last These are needed resources to get to nays 45, as follows: week on the gaps in veterans’ health children who are not being well served. [Rollcall Vote No. 242 Leg.] care, and every single Senator voted on The tax credit is not refundable so it YEAS—55 the budget resolution for a $3 billion does not reach that low-income cat- Abraham Frist Murkowski increase for veterans’ health care. That egory. This child care development Allard Gorton Nickles is the least we should do to make sure block grant does assist these families. Ashcroft Gramm Roberts there is high-quality health care for For those reasons, we urge adoption Bennett Grams Roth veterans in our country. Bond Grassley Santorum of the amendment. I thank the leader- Brownback Gregg Mr. JOHNSON. Mr. President, the ship for agreeing this be done on a Sessions Bunning Hagel Shelby underlying tax bill calls for domestic voice vote. Burns Hatch Smith (NH) spending reductions of anywhere from Campbell Helms The PRESIDING OFFICER. The Smith (OR) Chafee Hutchinson 24 to 38 percent, closing down VA hos- Snowe question is on agreeing to the amend- Cochran Hutchison pitals from one end of this country to Specter ment. Collins Inhofe Stevens the other. This is the one vote on The amendment (No. 1452) was agreed Coverdell Jeffords which my colleagues will have an op- to. Craig Kyl Thomas Thompson portunity to make sure there is enough Mr. DODD. Mr. President, I move to Crapo Lott DeWine Lugar Thurmond money in the VA system to keep those reconsider the vote. Domenici Mack Voinovich hospitals open. Mr. ROBB. I move to lay that motion Enzi McCain Warner on the table. Fitzgerald McConnell The PRESIDING OFFICER. The Sen- ator from Missouri. The motion to lay on the table was NAYS—45 agreed to. Mr. BOND. Mr. President, I agree Akaka Edwards Levin with my colleagues on the other side. MOTION TO RECOMMIT Baucus Feingold Lieberman The PRESIDING OFFICER. The Sen- Bayh Feinstein Lincoln Yet the President’s budget devastates ator from Virginia. Biden Graham Mikulski veterans’ health care. The flat-line Bingaman Harkin Moynihan budget proposed by this administration Mr. ROBB. Mr. President, despite the Boxer Hollings Murray opportunities we have had in this bill Breaux Inouye Reed will result in some 13,000 Veterans Af- and in the Finance Committee to ad- Bryan Johnson Reid fairs employees being RIF’d or fur- dress the $112 billion school repair Byrd Kennedy Robb loughed. It will close down facilities. It Cleland Kerrey Rockefeller will throw people out of the care of the needs in this country, this tax bill is Conrad Kerry Sarbanes simply inadequate in terms of infra- Daschle Kohl Schumer veterans facilities. structure assistance for our Nation’s Dodd Landrieu Torricelli The problem is that this motion does Dorgan Lautenberg Wellstone nothing to get money to veterans. This schools. Durbin Leahy Wyden We know 14 million children attend body has already gone on record saying schools in need of extensive repair or The motion was agreed to. we do not want to stay at the low level complete replacement. We know we Mr. DOMENICI. Mr. President, I submitted by the President. That is need to build 2,400 new schools by 2003 move to reconsider the vote. why we are going to increase by hun- to accommodate record school enroll- Mr. ROBB. I move to lay that motion dreds of millions of dollars in the ap- ments. We know we need to equip our on the table. propriations bill the amount we spend schools with modern technology and The motion to lay on the table was for veterans’ health care. We are con- the infrastructure necessary to support agreed to. cerned about veterans’ health care. that technology. We know all these MOTION TO RECOMMIT That is why we are not going to tol- things. Yet we have reported a tax bill Mr. WELLSTONE. I call up my mo- erate the unforgivably small budget that only helps build and renovate 200 tion to recommit on veterans’ health that the President has proposed. This schools. We cannot starve our schools care. is an attempt to provide appropriations of resources and then criticize them The PRESIDING OFFICER. The when, in fact, it will have no such im- when they are overcrowded or dilapi- clerk will report. pact. There is $505 billion set aside in dated. The legislative clerk read as follows: this plan for spending on high-priority On behalf of Senators LAUTENBERG, The Senator from Minnesota [Mr. matters. CONRAD, HARKIN, and WELLSTONE, I WELLSTONE] moves to recommit the bill, S. Mr. President, I make a point of move to recommit the bill to the Com- 1429, to the Committee on Finance with in- order against the amendment under mittee on Finance, with instructions structions that the Committee on Finance section 305 of the Budget Act on the report the bill to the Senate with provisions grounds that it is not germane. to report back to the Senate within 3 which— days with an amendment reducing or Establish a reserve account for purposes of Mr. WELLSTONE. Mr. President, I deferring by $5.7 billion over the next providing funds for medical care for vet- move to waive the Budget Act, and I 10 years certain new tax rates in the erans; ask for the yeas and nays on the mo- bill that benefit those who least need Provide for the deposit in the reserve action. relief. count of $3,000,000,000 in each of fiscal years The PRESIDING OFFICER. Is there a Mr. NICKLES. I think this procedure 2000 through 2004; sufficient second? would be a serious mistake. We don’t Make available amounts in the reserve ac- There is a sufficient second. count in those fiscal years for purposes of want Federal bureaucrats trying to im- medical care for veterans, which amounts The yeas and nays were ordered. prove school construction programs. I shall be in addition to any other amounts The PRESIDING OFFICER. The think it would be a serious mistake. available for medical care for veterans in question occurs on agreeing to the mo- We should leave those decisions of those fiscal years; and tion to waive the Budget Act with re- which schools to be building and which Provide that amounts for deposits in the spect to the motion to recommit. The schools to repair to the State and local reserve account shall be derived by reduc- yeas and nays have been ordered. The governments. tions in the amounts of new tax reductions clerk will call the roll. I move to table the motion, and I ask provided in the bill, wherever possible, for The legislative clerk called the roll. for the yeas and nays. individuals with incomes exceeding $200,000 per year. The yeas and nays resulted—yeas 58, The PRESIDING OFFICER. Is there a nays 42, as follows: Mr. WELLSTONE. Mr. President, I sufficient second? [Rollcall Vote No. 243 Leg.] There is a sufficient second. introduce this motion with Senator The yeas and nays were ordered. JOHNSON, Senator DASCHLE, and Sen- YEAS—58 The PRESIDING OFFICER. The ator HARKIN. This motion calls for $3 Abraham Baucus Biden question is on agreeing to the motion. billion added to veterans’ health care. Akaka Bayh Bingaman

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9900 CONGRESSIONAL RECORD — SENATE July 30, 1999 Boxer Hutchinson Murray I am deeply concerned about the Re- a fiction; the fiction that Republicans Bryan Hutchison Reed publican plan for using this surplus. In will be able to cut spending dramati- Burns Inouye Reid Byrd Jeffords Robb my opinion, they are squandering an cally—by nearly one-fourth. And if de- Cleland Johnson Rockefeller opportunity we won’t have again to ex- fense is funded at the level the Admin- Collins Kennedy Santorum tend the solvency of Medicare and So- istration has requested, other impor- Conrad Kerrey Sarbanes cial Security, to invest in key prior- tant domestic programs would face Daschle Kerry Schumer DeWine Kohl ities like education, the environment Smith (NH) cuts of nearly 40 percent. This means Dodd Landrieu Snowe and medical research, and to pay down less medical research, dramatic cuts in Dorgan Lautenberg Specter our national debt. We shouldn’t go off Durbin Leahy the number of children participating in Edwards Levin Thomas on a spending or tax-cutting spree Head Start, substantial reductions in Feingold Lieberman Torricelli when we have this huge debt to repay. the number of law enforcement per- Warner Feinstein Lincoln Unfortunately, the Republicans have sonnel, no new environmental clean- Graham McCain Wellstone chosen to focus single-mindedly on cut- ups, closures at national parks. The Harkin Mikulski Wyden ting taxes. I believe we should have a Hollings Moynihan list goes on. tax cut—I would favor tax relief for NAYS—42 working families, such as easing the However, as we all know, Democrats Allard Enzi Lugar marriage penalty and increasing the and Republicans both, there is really Ashcroft Fitzgerald Mack per-child credit—but this bill goes no support for cuts of that magnitude, Bennett Frist McConnell either in Congress or among the public. Bond Gorton Murkowski much too far. Instead, we need to bal- Breaux Gramm Nickles ance the money among several key pri- A story on the front page of the Wash- Brownback Grams Roberts orities. ington Post on July 27, 1999 puts the lie Bunning Grassley Roth There is almost no single policy that to Republican assertions that they will Campbell Gregg Sessions Chafee Hagel Shelby is more important to the long-term be able to cut spending. They can’t Cochran Hatch Smith (OR) health of our budget, to the sustain- even pass this year’s appropriations Coverdell Helms Stevens ability of the surplus, and to our over- bills without resorting to smoke-and- Craig Inhofe Thompson mirrors gimmickry to hid the cost of Crapo Kyl Thurmond all economy, than paying off some of Domenici Lott Voinovich our three-and-half trillion dollar na- their bills. The PRESIDING OFFICER (Mr. ROB- tional debt. We cannot leave this bur- Without those cuts, they need to raid ERTS). On this vote the yeas are 58, the den to our grandchildren. the Social Security trust fund to pay nays are 42. Three-fifths of the Sen- With a single voice, economists have for their tax cut. And they will in- ators duly chosen and sworn not having told us of the benefits of and impor- crease, rather than reduce, our na- voted in the affirmative, the motion is tance of paying down that debt. It will tional debt. rejected. The point of order is sus- lead to lower interest rates. It will produce higher surpluses, because we The truth is, they want their exces- tained and the motion falls. sive, risky tax cut so badly that they Mr. MOYNIHAN. Mr. President, I will be paying less interest. And it will be of tremendous benefit to the econ- are willing to put the health of our move to reconsider the vote. economy at risk, to endanger the secu- Mr. NICKLES. I move to lay that mo- omy, because it will free up private rity of retirees, and to short-change tion on the table. capital for productive investment that The motion to lay on the table was makes our economy grown, and raise important national priorities like in- agreed to. the standard of living for us all. vestments in education, medical re- Mr. BINGAMAN addressed the Chair. Alan Greenspan himself has said research, the environment and even na- The PRESIDING OFFICER. The Sen- peatedly that the most important tional defense. ator from New Mexico. thing to do with the surplus is to pay Republicans want to spend 97 percent MOTION TO RECOMMIT down the debt. He has said it over and of the available non-Social Security Mr. BINGAMAN. Mr. President, I over and over again. And he’s been say- surplus on tax cuts—tax cuts whose have a motion at the desk to recommit ing it for quite some time now. Some of cost explodes in the future, overheat to the Finance Committee that I call my Republican colleagues have seized our economy, and disproportionately up at this time. on another statement he made—saying favor the rich and special interests. The PRESIDING OFFICER. The that if paying down the debt is not po- Democrats have offered reasonable clerk will report. litically feasible, then he prefers tax alternatives that balance tax cuts with The legislative assistant read as fol- cuts to spending. lows: My colleagues, there is no one here Medicare solvency, debt reduction and The Senator from New Mexico [Mr. BINGA- but us. We are in charge. We are free to investments in key domestic priorities. MAN] moves to recommit the bill to the Com- vote for what’s right, and to define But these have all been rejected. mittee on Finance with instructions to re- So I am making this last, very mod- port back within three days with an amend- what’s possible or what’s not. We can ment providing for an additional $100 billion vote to reduce the debt, or to irrespon- est attempt to avoid wasting surplus— of debt reduction, and to do so by reducing sibly spend this one-in-a-lifetime sur- asking that $100 billion of this exces- narrowly-targeted, special-interest tax plus on an excessively large tax cut sive tax cut be used instead for paying breaks and tax reductions that dispropor- that would damage our economy and off more of our national debt. This tionately benefit the wealthy. endanger Medicare and Social Secu- would leave about 86 percent of the sur- Mr. BINGAMAN. Mr. President, we rity, education, law enforcement, de- plus for tax cuts—this is less than 97 have a historic opportunity before us. fense—just about any important na- percent they want to spend, but is still For the first time in my nearly two tional program. a substantial amount. We could do decades in the Senate, we are presented Paying off the debt today will also more to reduce the debt. I would like with predictions of a growing surplus. leave us in a much stronger position to to do more. But this is a starting point. We made the tough choices in 1993 and afford the cost of the baby boom’s re- My motion would instruct the Fi- again in 1997 to bring spending under tirement. As other speakers have nance Committee to report the bill control, to reduce the deficit, and to pointed out, the cost of the Republican back in 3 days, with an amendment to restore the federal budget to balance. tax cuts begin to rise dramatically just reduce the tax cut by $100 billion, and We are at a crossroads now and must at the same time the pressures on the use the savings to pay down more of decide how to respond to this oppor- budget begin to grow as the baby our national debt. It also instructs the tunity. Will we invest it wisely and boomers start to retire. prudently, or will it be squandered? But Republicans have rejected our Committee to find the savings by re- Will we return to the disastrous poli- attempts to pay down the debt. They ducing narrowly-targeted special inter- cies of the 1980’s, or can we stay on the claim they are doing plenty to pay est tax breaks in the bill, and tax relief path of fiscal discipline? The American down the debt—and that this is enough. that disportionately benefits the public is deeply cynical about govern- They may even talk about a Congres- wealthy. ment. Now is our chance to prove we sional Budget Office report that pur- Last week, just days after Repub- can come together in our national in- ports to show how their plan reduces licans passed their tax bill out of com- terest. the debt. But that analysis is based on mittee, the Washington Post ran a

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9901 story detailing the special-interest reserve sufficient amounts to establish of the Senate suggesting we should, in giveaways in the Republican tax bills. an improved income safety net for fam- the conference that will follow the pas- These include special breaks for sea- ily farmers and ranchers in fiscal years sage of this legislation, recede to the plane owners in Alaska, barge lines in 2000 through 2009 by limiting the bill’s House position which reduces capital Mississippi, and foreign residents who new tax breaks for large corporations gains tax rates. use frequent-flyer miles to purchase and those with annual incomes in ex- The PRESIDING OFFICER. The dis- airline tickets. Since then, we have cess of $300,000. tinguished Senator from New York. also learned just how skewed the bill is I ask for its immediate consider- Mr. MOYNIHAN. Mr. President, the toward families with the very highest ation. pending amendment is not germane. incomes. The top 1 percent of all tax- Mr. ROTH. Mr. President, I suggest Accordingly, I raise a point of order payers would receive a whopping 30 we are ready for a voice vote. that the amendment violates section percent of the tax cuts. Overall, the top The PRESIDING OFFICER. The 305(b)(2) of the Congressional Budget one-fifth of taxpayers would receive 75 question is on agreeing to the motion. Act of 1974. percent of the tax relief. It seems to me The motion was rejected. Mr. ABRAHAM. Mr. President, I re- there is plenty of room in this bill to Mr. MOYNIHAN. Mr. President, I spond by saying that it is my impres- reduce the tax cut by $100 billion for move to reconsider the vote. sion that we will not have a majority the sake of reducing our national debt. Mr. ROTH. I move to lay that motion for this amendment. We will not over- The Republicans have rejected our on the table. come the point of order. So at this balanced alternative to a huge, impru- The motion to lay on the table was time, in light of the time constraints dent tax cut, and they have rejected agreed to. we are operating under today, I with- our lockbox that would set aside The PRESIDING OFFICER. The Sen- draw the amendment. money for Social Security and Medi- ator from New York. The PRESIDING OFFICER. Without care—but can’t they even reduce their Mr. MOYNIHAN. May I just note, sir, objection, the amendment is with- enormous, risky tax cut by $100 billion for the RECORD, there are several of us, drawn. in order to further reduce our nation’s including the junior Senator from The distinguished Senator from indebtedness? That’s only about 10 per- Alaska, who regret that the rum cover- North Dakota. cent of the available surplus. Only 10 over provisions for Puerto Rico and the AMENDMENT NO. 1439 percent for prudence and responsi- Virgin Islands are not included in this (Purpose: To amend the Internal Revenue bility, the rest to fulfill their agenda. legislation. We hope to do so at some Code of 1986 to allow employers a credit Mr. NICKLES addressed the Chair. early future date. I yield the floor. against income tax for information tech- The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The Sen- nology training expenses paid or incurred ator from Oklahoma. ator from Michigan. by the employer, and for other purposes) Mr. NICKLES. One, I appreciate our AMENDMENT NO. 1470, WITHDRAWN Mr. CONRAD. Mr. President, I call up my amendment No. 1439. colleague’s willingness to have a voice (Purpose: Providing the Sense of the Senate vote. I encourage others to have voice regarding Capital Gains Tax Cuts) The PRESIDING OFFICER. The votes. clerk will report the amendment. Mr. ABRAHAM. Mr. President, I call The legislative clerk read as follows: For the information of all Senators, I up amendment No. 1470. The Senator from North Dakota [Mr. CON- think we are making good progress. We The PRESIDING OFFICER. The only have a few amendments left, RAD], for himself, Mr. REID, and Mr. ROBB, clerk will report the amendment. proposes an amendment numbered 1439. maybe just three or four that require The legislative clerk read as follows: votes. Mr. CONRAD. Mr. President, I ask The Senator from Michigan [Mr. ABRAHAM] unanimous consent that reading of the I urge our colleagues, on this par- proposes an amendment numbered 1470. ticular motion—despite my colleague’s amendment be dispensed with. Mr. ABRAHAM. Mr. President, I ask very good intentions—to vote no by The PRESIDING OFFICER. Without unanimous consent that reading of the voice vote. objection, it is so ordered. amendment be dispensed with. The PRESIDING OFFICER. The (The amendment is printed in a pre- The PRESIDING OFFICER. Without question is on agreeing to the motion. vious edition of the RECORD.) objection, it is so ordered. The motion was rejected. Mr. CONRAD. Mr. President, this (The amendment is printed in a pre- Mr. SANTORUM. Mr. President, I amendment, I believe, addresses a crit- vious edition of the RECORD.) move to reconsider the vote. ical national need. The Commerce De- Mr. ABRAHAM. Mr. President, this Mr. NICKLES. I move to lay that mo- partment tells us we have a shortage of amendment tries to address what I con- tion on the table. information technology workers of sider to be one of the shortfalls in the The motion to lay on the table was 34,000 and that that will grow by 130,000 Senate Finance Committee’s tax bill. agreed to. a year every year for the next 10 years. This tax bill does not include any pro- This amendment seeks to deal with MOTION TO RECOMMIT visions to reduce the capital gains tax that situation by providing for a tax Mr. DORGAN. Mr. President, I call rate. I believe we need to address the credit of 20 percent, up to a limit of up my motion to recommit. needs of America’s growing investor $6,000 per worker per year. The PRESIDING OFFICER. The class through mutual funds, pension This means that the Federal Govern- clerk will report the motion. plans, IRAs and other investment vehi- ment would be in partnership with The legislative clerk read as follows: cles about 50 percent of Americans businesses training high-technology The Senator from North Dakota [Mr. DOR- have. Half the Nation’s population own workers. The company would have to GAN] moves to recommit the the bill to the stocks and other financial assets. put up 80 percent of the cost, the Fed- Committee on Finance, with instructions to I believe it is time to put to rest once report back within 3 days, with an amend- eral Government, through a tax credit, ment to reserve amounts sufficient to estab- and for all the old class warfare slogan 20 percent. This is a reasonable re- lish an improved income safety net for fam- that only the rich pay capital gains sponse to a critical national need. ily farmers and ranchers in fiscal years 2000 taxes. Forty-nine percent of the inves- This amendment is cosponsored by through 2009, by limiting the bill’s new tax tor class are women, and 38 percent are Senator REID of Nevada, Senator ROBB breaks for large corporations and those with nonprofessional, salaried workers. Wall of Virginia, and Senator ABRAHAM of annual incomes in excess of $300,000. Street and Main Street are no longer Michigan. It is endorsed by the Infor- The PRESIDING OFFICER. The Sen- separated. I believe it is time we recog- mation Technology Association of ator from North Dakota. nize this fact and help new middle-class America, the Software Information In- Mr. DORGAN. Mr. President, this is a investors succeed in their drive to industry Association, the American Soci- motion to recommit. I will not seek a vest and save for the future. ety for Training and Development, recorded vote on it. My motion to re- I think it is time to cut the tax on Cisco Systems, EDS, Intel, Microsoft, commit is to recommit the bill to the mutual funds and pensions for working Texas Instruments, and many others. Finance Committee with instructions Americans and, therefore, I have of- Mr. NICKLES. Mr. President, I urge to report back with an amendment to fered this amendment which is a sense our colleagues to vote no on this

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9902 CONGRESSIONAL RECORD — SENATE July 30, 1999 amendment, both on substance and Three-fifths of the Senators duly cho- This amendment would also substan- also on a germaneness point, which I sen not having voted in the affirma- tially impair the employer’s ability to will raise in a moment. tive, the motion is rejected. The point design and change their pension plans The Senator is proposing a $6,000 tax of order is sustained and the amend- to meet the changing needs of the busi- credit if somebody is trained as a high- ment falls. ness and of the employees. In addition, tech employee. We are going to have Mr. MOYNIHAN. Mr. President, I it would punish good corporate citizens the Federal Government saying in this move to reconsider the vote. who maintain pension plans while leav- one area we want to pay $6,000 for this Mr. BOND. I move to lay that motion ing other companies free to terminate person to be trained how to run com- on the table. their plans in order to get from under puters. The motion to lay on the table was this new law. I want people to learn how to run agreed to. We have dealt with the concerns that computers. Millions of people are doing The PRESIDING OFFICER. The dis- participants do not know or under- it today. They don’t need the Federal tinguished Senator from Iowa is recog- stand changes to their pension plans Government to give them $6,000 to do nized. with the more expansive disclosure reit. What about steelworkers? What AMENDMENT NO. 1454 quirements that are contained in this about auto workers? What about oil bill. workers? What about factory workers? (Purpose: To block companies from entering into a situation where they are giving ben- We should focus on revitalizing the We don’t do it for them. We shouldn’t efits to younger workers and denying those defined pension system, rather than do it for this industry. same benefits to older employees. The adding new burdens on employers who Also the Senator pays for it by tak- amendment clearly stops a method by voluntarily establish these plans. For ing away the tax benefits we have that which some employers skirt the intent of these reasons, I urge my colleagues to allow people to enhance their retire- current law that prevents them from tak- oppose this amendment. ment income. I think that is a serious ing away already accrued pension benefits) Mr. President, I make a point of mistake. Mr. HARKIN. Mr. President, I call up order against the amendment under I make a point of order against the amendment No. 1454 and ask unani- section 305 of the Budget Act on the amendment under section 305 of the mous consent that Senator KENNEDY grounds that it is not germane. Budget Act on the grounds that it is and Senator WELLSTONE be added as co- Mr. HARKIN. Mr. President, pursu- not germane, and I ask for the yeas and sponsors. ant to section 904 of the Congressional nays. The PRESIDING OFFICER. Without Budget Act, I move to waive the Con- Mr. CONRAD. Mr. President, I move objection, it is so ordered. gressional Budget Act for the consider- to waive the Congressional Budget Act The clerk will report. ation of amendment No. 1454, and I ask point of order. The legislative clerk read as follows: The PRESIDING OFFICER. Is there a for the yeas and nays. The Senator from Iowa (Mr. HARKIN), for The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient himself, and Mr. KENNEDY, and Mr. second. sufficient second? WELLSTONE, proposes an amendment num- There is a sufficient second. The yeas and nays were ordered. bered 1454. The PRESIDING OFFICER. The The yeas and nays were ordered. Mr. HARKIN. Mr. President, I ask question is on agreeing to the motion The PRESIDING OFFICER. The unanimous consent that reading of the to waive the Congressional Budget Act question is on agreeing to the motion amendment be dispensed with. in relation to the Conrad amendment to waive the Congressional Budget Act The PRESIDING OFFICER. Without No. 1439. The yeas and nays have been in relation to the Harkin amendment objection, it is so ordered. ordered. The clerk will call the roll. No. 1454. The yeas and nays have been (The amendment is printed in a pre- The legislative assistant called the ordered. The clerk will call the roll vious edition of the RECORD.) roll. The legislative clerk called the roll. The result was announced—yeas 46, Mr. HARKIN. Mr. President, right The yeas and nays resulted—yeas 48, nays 54, as follows: now companies are changing pension nays 52, as follows: [Rollcall Vote No. 244 Leg] plans. They are going from defined ben- [Rollcall Vote No. 245 Leg.] YEAS—46 efit plans to these cash balance plans. YEAS—48 That is OK. This amendment doesn’t Abraham Edwards Lieberman Akaka Feingold Levin Akaka Feingold Lincoln stop that. But what is happening now Baucus Feinstein Lieberman Baucus Feinstein Mikulski is workers who have worked at these Bayh Graham Lincoln Bayh Graham Moynihan companies for sometimes 20 or 25 years Biden Grassley Mikulski Biden Harkin Murray Bingaman Harkin Moynihan have their pensions degraded. There Boxer Hollings Murray Bingaman Hollings Reed are 5 to 7, and sometimes as many as Breaux Inouye Reed Boxer Inouye Reid Bryan Jeffords Reid Breaux Johnson Robb 10, years when nothing is put into their Bryan Kennedy Byrd Johnson Robb Rockefeller pension plans. The younger workers Byrd Kerrey Cleland Kennedy Rockefeller Sarbanes Cleland Kerry are getting money paid into their pen- Conrad Kerrey Sarbanes Schumer Conrad Kohl sions and the older workers are not. Daschle Kerry Schumer Daschle Landrieu Torricelli This amendment says that if they Dodd Kohl Specter Wellstone Dodd Lautenberg change pension plans they can not dis- Dorgan Landrieu Torricelli Dorgan Leahy Wyden Durbin Lautenberg Wellstone Durbin Levin criminate against the older workers, Edwards Leahy Wyden and the companies have to put into the NAYS—54 NAYS—52 older workers’ pension accounts what- Allard Frist McConnell Abraham Fitzgerald Murkowski Ashcroft Gorton Murkowski ever they are putting into the younger Allard Frist Nickles Bennett Gramm Nickles workers’ pension accounts so that we Ashcroft Gorton Roberts Bond Grams Roberts don’t have this kind of wear away for 5 Bennett Gramm Roth Brownback Grassley Roth or 7 years when older workers are de- Bond Grams Santorum Bunning Gregg Santorum Brownback Gregg nied their pension benefits. Sessions Burns Hagel Sessions Bunning Hagel Shelby Campbell Hatch Shelby The PRESIDING OFFICER. The Sen- Burns Hatch Smith (NH) Campbell Helms Chafee Helms Smith (NH) ator from Tennessee. Smith (OR) Cochran Hutchinson Chafee Hutchinson Smith (OR) Snowe Collins Hutchison Snowe Mr. THOMPSON. Mr. President, I Cochran Hutchison Stevens Coverdell Inhofe Specter rise to oppose this amendment. Collins Inhofe Thomas Craig Jeffords Stevens Coverdell Kyl Employer sponsorship of defined ben- Thompson Crapo Kyl Thomas efit pension plans have been declining Craig Lott DeWine Lott Thompson Crapo Lugar Thurmond Domenici Lugar Thurmond over the last few years, mainly due to DeWine Mack Voinovich Enzi Mack Voinovich the increased regulatory burden that Domenici McCain Warner Fitzgerald McCain Warner Congress and the IRS has placed on Enzi McConnell The PRESIDING OFFICER. On this employers who offer these plans to em- The PRESIDING OFFICER. On this vote the yeas are 46, the nays are 54. ployees. vote the yeas are 48, the nays are 52.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9903 Three-fifths of the Senators duly cho- We provide substantial funding in Pell the ag appropriations bill we will have sen and sworn not having voted in the grants in guaranteed student loans. a recorded vote. affirmative, the motion is rejected. What we have before us is not another The PRESIDING OFFICER. Does any The point of order is sustained and the assistance program, not another pro- Senator wish to speak in opposition? amendment falls. gram that is trying to single out every Mr. ROTH. I suggest a voice vote. Mr. MOYNIHAN. Mr. President, I interest group in America and give The PRESIDING OFFICER. The move to reconsider the vote. them something, but instead we have a question is on agreeing to the motion Mr. LEAHY. I move to lay that mo- tax bill that is aimed at letting work- to recommit. tion on the table. ing Americans keep more of what they The motion was rejected. The motion to lay on the table was earn so they can help send their chil- Mr. MOYNIHAN. Mr. President, I agreed to. dren to college. move to reconsider the vote. Mr. HATCH. I move to lay that mo- MOTION TO RECOMMIT I hope we might see an amendment such as this withdrawn and not have to tion on the table. The PRESIDING OFFICER. The dis- The motion to lay on the table was vote on it. tinguished Senator from Massachusetts agreed to. I yield the remainder of my time. is recognized. The Senate will be in AMENDMENT NO. 1456 order. Mr. KENNEDY. Mr. President, as I understand it, the time has been used Mr. ASHCROFT. Mr. President, I call Mr. KENNEDY. Mr. President, I send up amendment No. 1456 which is at the a motion to the desk and ask for its or yielded back. I look forward to a vote on this motion. desk. immediate consideration. The PRESIDING OFFICER. The The PRESIDING OFFICER. The The PRESIDING OFFICER. The question is on agreeing to the motion. clerk will report the amendment. clerk will report the motion. The assistant legislative clerk read The motion was rejected. The legislative clerk read as follows: as follows: Mr. MOYNIHAN. Mr. President, I The Senator from Massachusetts [Mr. KEN- move to reconsider the vote. The Senator from Missouri [Mr. ASHCROFT] NEDY] moves to recommit the bill to the proposes an amendment numbered 1456. Committee on Finance, with instructions to Mr. ROTH. I move to lay that motion on the table. Mr. ASHCROFT. Mr. President, I ask report back to the Senate within 3 days, with unanimous consent that the reading of an amendment to reserve $39 billion to pro- The motion to lay on the table was vide permanent appropriations to the Pell agreed to. the amendment be dispensed with. Grant program in years 2000 through 2009 by The PRESIDING OFFICER. Without MOTION TO RECOMMIT objection, it is so ordered. reducing or deferring certain new tax breaks Mr. DORGAN. I have a motion at the in the bill, especially those that dispropor- (The amendment is printed in a pre- tionately benefit the wealthy. desk and ask for its immediate consid- vious edition of the RECORD.) eration. Mr. KENNEDY. Mr. President, as I The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The ator is recognized for 1 minute. understand, there is a 2-minute time clerk will report. limit, 1 minute to either side; is that Mr. ASHCROFT. Mr. President, this The assistant legislative clerk read amendment simply eliminates from correct? as follows: The PRESIDING OFFICER. The Sen- this bill a special tax cut aimed at for- The Senator from North Dakota [Mr. DOR- ator’s time is limited to 1 minute. eign technologies for converting poul- GAN] moves to recommit the bill to the Com- try waste into electricity. I agree with If we could have order in the Senate, mittee on Finance, with instructions to re- please, we could expedite things. converting poultry waste into some- port back within 3 days, with an amendment thing useful, but I disagree with giving The Senator is recognized for 1 to reserve sufficient amounts of funding to minute. allow our nation to reach our goal of serving a tax break to foreign corporations Mr. KENNEDY. Mr. President, this is one million children through the Head Start when there are U.S. companies capable to try to provide some help and addi- program and to ensure that the number of of achieving that end. Two such companies exist in my tional assistance to those individuals nutritionally at-risk women and children being served by the Special Supplemental home State. Agri-Cycle of Springfield, who are receiving the Pell grants. Nutrition Program for Women, Infants, and MO, processes chicken manure into Those are virtually the lowest-income Children will not be reduced in fiscal years pollution-free fertilizer pellets. The students. For the over 4 million stu- 2000 through 2009, by limiting the bill’s new British company that wants to build dents who are receiving Pell grants, tax breaks for those with annual incomes in the facility here and burn the waste their average income is $14,000 a year. excess of $300,000 and for large businesses. claims they need the tax break because They are the students who are encum- The PRESIDING OFFICER. Without without it, they would not be able to bered to the greatest degree as a result objection, the Senator is recognized. expand here because they are used to of borrowing. They start out, if they Mr. DORGAN. Mr. President, I would large subsidies they receive from the are lucky enough to get into college, like to take just a few seconds and British Government. having these overwhelming debts. This then yield to Senator WELLSTONE the I ask my colleagues to support this would provide some $39 billion which remainder of the 1 minute. amendment, and I ask for the yeas and would increase the Pell grants some This is a motion to recommit the bill nays. $400. It would still only make them to the Committee on Finance with in- The PRESIDING OFFICER. Is there a about 60 percent of what the Pell structions to report back with an sufficient second? grants were some 20 years ago. amendment to reserve sufficient There appears to be a sufficient sec- As we are looking out after providing amounts of funding to allow our Nation ond. tax breaks for those in the upper in- to reach our goal of serving 1 million The yeas and nays were ordered. comes, it does seem to me that to try children through the Head Start Pro- The PRESIDING OFFICER. Does any to give further encouragement to able gram and to make sure we are not di- Senator wish to speak in opposition to and gifted students at the lower in- minishing or threatening those who are the amendment? come level deserves support. receiving benefits under the WIC Pro- The Senator from Delaware. The PRESIDING OFFICER. The dis- gram. Mr. ROTH. Mr. President, I rise in tinguished Senator from Texas is rec- We hope if there is enough oppor- opposition to this amendment. The ognized. tunity to provide tax cuts for 9 or 10 poultry provision in the Taxpayer Re- Mr. GRAMM. We are all aware Con- years, Members of the Senate will fund Act of 1999 meets three important gress has provided substantial funds for agree that Head Start and WIC also criteria: Pell grants. ought to receive priority. First, it facilitates the development The PRESIDING OFFICER. The Sen- I yield to Senator WELLSTONE. and use of alternative fuel to generate ate is not in order. Mr. WELLSTONE. Mr. President, clean electricity—energy that is not Mr. GRAMM. Mr. President, you this is all about whether or not we sup- only abundant, but environmentally would have had to have just come in on port children in our country. It is a friendly. Certainly, in this summer of a turnip truck not to realize this Con- terribly important program. We will rolling brownouts, we cannot overstate gress is a major funder of Pell grants. vote it up or down on a voice vote. On how important this is.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9904 CONGRESSIONAL RECORD — SENATE July 30, 1999 Second, the poultry provision in this The PRESIDING OFFICER (Mr. gains) is amended by redesignating section bill addresses the need to safely and ef- BROWNBACK). The Senator from Wis- 1202 as section 1203 and by inserting after fectively dispose of chicken waste. consin. section 1201 the following new section: ‘‘SEC. 1202. CAPITAL GAINS DEDUCTION FOR IN- Poultry production in the United AMENDMENT NO. 1417 DIVIDUALS. States has tripled since 1975. Along (Purpose: To amend the Internal Revenue ‘‘(a) IN GENERAL.—In the case of an indi- with this growth, comes the waste, and Code of 1986 to repeal the percentage deple- vidual, there shall be allowed as a deduction the need to dispose of it. tion allowance for certain hardrock mines) for the taxable year an amount equal to the And third, the poultry provision in Mr. FEINGOLD. Mr. President, I call lesser of— the bill demonstrates Congress’ will- up amendment No. 1417. ‘‘(1) the net capital gain of the taxpayer for ingness to help our poultry farmers, The PRESIDING OFFICER. The the taxable year, or while encouraging technological ad- clerk will report. ‘‘(2) $1,000. vances. Providing incentives for facili- The legislative clerk read as follows: ‘‘(b) SALES BETWEEN RELATED PARTIES.— The Senator from Wisconsin [Mr. FEIN- Gains from sales and exchanges to any re- ties that turn chicken waste into clean lated person (within the meaning of section energy is consistent with our objec- GOLD] proposes an amendment numbered 1417. 267(b) or 707(b)(1)) shall not be taken into ac- tives. count in determining net capital gain. For these reasons, I urge my col- Mr. FEINGOLD. Mr. President, I ask ‘‘(c) SPECIAL RULE FOR SECTION 1250 PROP- leagues to vote against this amend- unanimous consent that reading of the ERTY.—Solely for purposes of this section, in ment, and to support the production of amendment be dispensed with. applying section 1250 to any disposition of clean electricity—production that will The PRESIDING OFFICER. Without section 1250 property, all depreciation ad- help America meet its energy needs, objection, it is so ordered. justments in respect of the property shall be (The amendment is printed in a pre- treated as additional depreciation. while helping our farmers and pro- vious edition of the RECORD.) ‘‘(d) SECTION NOT TO APPLY TO CERTAIN tecting our environment. Mr. FEINGOLD. Mr. President, my TAXPAYERS.—No deduction shall be allowed Mr. MOYNIHAN. Mr. President, this amendment eliminates the percentage under this section to— measure was thoroughly discussed in depletion allowance for minerals mined ‘‘(1) an individual with respect to whom a the Committee on Finance and is well deduction under section 151 is allowable to on Federal public lands. It applies only another taxpayer for a taxable year begin- understood on our side. I support the to hard rock minerals and does not chairman in the existing provision of ning in the calendar year in which such indi- touch oil and gas, and it preserves the vidual’s taxable year begins, the bill. deduction for private lands. The PRESIDING OFFICER. The op- ‘‘(2) a married individual (within the mean- The President’s fiscal year 2000 budg- ing of section 7703) filing a separate return position time has expired. et recommends eliminating this tax for the taxable year, or Mr. ROTH. I call for the yeas and break. OMB estimates this amendment ‘‘(3) an estate or trust. nays. would raise $478 million over 5 years. ‘‘(e) SPECIAL RULE FOR PASS-THRU ENTI- The PRESIDING OFFICER. The yeas We allow companies to mine on pub- TIES.— and nays have already been ordered. lic lands for very low patent fees al- ‘‘(1) IN GENERAL.—In applying this section The question is on agreeing to with respect to any pass-thru entity, the de- ready. We shouldn’t continue to pro- amendment No. 1456. The yeas and nays termination of when the sale or exchange oc- vide them with a double subsidy by have been ordered. The clerk will call curs shall be made at the entity level. preserving this special tax break for ‘‘(2) PASS-THRU ENTITY DEFINED.—For pur- the roll. hard rock mining companies which or- The assistant legislative clerk called poses of paragraph (1), the term ‘pass-thru dinary businesses do not get. entity’ means— the roll. I understand this will be the subject ‘‘(A) a regulated investment company, The result was announced—yeas 23, of a voice vote. ‘‘(B) a real estate investment trust, nays 77, as follows: The PRESIDING OFFICER. The ‘‘(C) an S corporation, [Rollcall Vote No. 246 Leg.] question is on agreeing to amendment ‘‘(D) a partnership, YEAS—23 No. 1417. ‘‘(E) an estate or trust, and Abraham Durbin Kyl The amendment (No. 1417) was re- ‘‘(F) a common trust fund.’’ Allard Enzi McCain (b) COORDINATION WITH MAXIMUM CAPITAL jected. GAINS RATE.—Paragraph (3) of section 1(h) Ashcroft Fitzgerald Nickles Mr. ROTH. Mr. President, I recognize Bond Gorton Roberts (relating to maximum capital gains rate) is Brownback Gregg Smith (NH) Senator COVERDELL for the next amended to read as follows: Burns Inhofe Thomas amendment. ‘‘(3) COORDINATION WITH OTHER PROVI- Craig Johnson Wyden AMENDMENT NO. 1426, AS MODIFIED SIONS.—For purposes of this subsection, the Crapo Kohl Mr. COVERDELL. Mr. President, I amount of the net capital gain shall be re- NAYS—77 ask unanimous consent to send a modi- duced (but not below zero) by the sum of— Akaka Frist McConnell fication of my amendment No. 1426 to ‘‘(A) the amount of the net capital gain Baucus Graham Mikulski taken into account under section 1202(a) for Bayh Gramm the desk. Moynihan The PRESIDING OFFICER. Without the taxable year, plus Bennett Grams Murkowski ‘‘(B) the amount which the taxpayer elects Biden Grassley Murray objection, it is so ordered. The clerk to take into account as investment income Bingaman Hagel Reed will report. Boxer Harkin for the taxable year under section Reid The legislative clerk read as follows: 163(d)(4)(B)(iii).’’ Breaux Hatch Robb The Senator from Georgia [Mr. COVER- (c) DEDUCTION ALLOWABLE IN COMPUTING Bryan Helms Rockefeller DELL], for himself, Mr. TORRICELLI, Mr. ADJUSTED GROSS INCOME.—Subsection (a) of Bunning Hollings Roth Byrd Hutchinson Santorum DOMENICI, Mr. BAYH, and Mr. ABRAHAM, pro- section 62 (defining adjusted gross income) is Campbell Hutchison Sarbanes poses an amendment numbered 1426, as modi- amended by inserting after paragraph (17) Chafee Inouye Schumer fied. the following new paragraph: Cleland Jeffords Sessions ‘‘(18) LONG-TERM CAPITAL GAINS.—The de- Cochran Kennedy Mr. COVERDELL. Mr. President, I Collins Kerrey Shelby ask unanimous consent that further duction allowed by section 1202.’’ Smith (OR) (d) TREATMENT OF COLLECTIBLES.— Conrad Kerry reading of the amendment be dispensed Coverdell Landrieu Snowe (1) IN GENERAL.—Section 1222 (relating to Daschle Lautenberg Specter with. other terms relating to capital gains and DeWine Leahy Stevens The PRESIDING OFFICER. Without losses) is amended by inserting after para- Dodd Levin Thompson objection, it is so ordered. graph (11) the following new paragraph: Thurmond Domenici Lieberman The amendment, as modified, is as ‘‘(12) SPECIAL RULE FOR COLLECTIBLES.— Dorgan Lincoln Torricelli follows: ‘‘(A) IN GENERAL.—Any gain or loss from Edwards Lott Voinovich Feingold Lugar Warner On page 32, strike lines 12 through 14, in- the sale or exchange of a collectible shall be Feinstein Mack Wellstone sert the following: treated as a short-term capital gain or loss (as the case may be), without regard to the Mr. MOYNIHAN. Mr. President, I (2) EFFECTIVE DATE.—The amendments made by this subsection shall apply to tax- period such asset was held. The preceding move to reconsider the vote. able years beginning after December 31, 2005. sentence shall apply only to the extent the Mr. LOTT. I move to lay that motion SEC. ll. LONG-TERM CAPITAL GAINS DEDUC- gain or loss is taken into account in com- on the table. TION FOR INDIVIDUALS. puting taxable income. The motion to lay on the table was (a) GENERAL RULE.—Part I of subchapter P ‘‘(B) TREATMENT OF CERTAIN SALES OF IN- agreed to. of chapter 1 (relating to treatment of capital TEREST IN PARTNERSHIP, ETC.—For purposes

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of subparagraph (A), any gain from the sale ‘‘For treatment of eligible gain not ex- AMENDMENT NO. 1468 or exchange of an interest in a partnership, cluded under subsection (a), see section Ms. SNOWE. Mr. President, I call up S corporation, or trust which is attributable 1202.’’ amendment No. 1468. to unrealized appreciation in the value of (12) The table of sections for part I of sub- The PRESIDING OFFICER. The collectibles held by such entity shall be chapter P of chapter 1 is amended by strik- clerk will report. treated as gain from the sale or exchange of ing the item relating to section 1202 and by The assistant legislative clerk read a collectible. Rules similar to the rules of inserting after the item relating to section section 751(f) shall apply for purposes of the 1201 the following new items: as follows: The Senator from Maine [Ms. SNOWE] pro- preceding sentence. ‘‘Sec. 1202. Capital gains deduction. ‘‘(C) COLLECTIBLE.—For purposes of this poses an amendment numbered 1468. paragraph, the term ‘collectible’ means any ‘‘Sec. 1203. 50-percent exclusion for gain Ms. SNOWE. Mr. President, I ask capital asset which is a collectible (as de- from certain small business stock.’’ unanimous consent that reading of the fined in section 408(m) without regard to amendment be dispensed with. paragraph (3) thereof).’’ (g) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in The PRESIDING OFFICER. Without (2) CHARITABLE DEDUCTION NOT AFFECTED.— objection, it is so ordered. (A) Paragraph (1) of section 170(e) is paragraph (2), the amendments made by this amended by adding at the end the following section shall apply to taxable years begin- (The amendment is printed in a pre- new sentence: ‘‘For purposes of this para- ning after December 31, 2005. vious edition of the RECORD.) graph, section 1222 shall be applied without (2) COLLECTIBLES.—The amendments made Ms. SNOWE. Mr. President, I ask regard to paragraph (12) thereof (relating to by subsection (d) shall apply to sales and ex- unanimous consent to add Senator special rule for collectibles).’’ changes after December 31, 2005. SCHUMER as a cosponsor of this amend- (B) Clause (iv) of section 170(b)(1)(C) is Mr. COVERDELL. Mr. President, it ment. amended by inserting before the period at is my understanding this will be done The PRESIDING OFFICER. Without the end the following: ‘‘and section 1222 shall by a voice vote. I am going to speak for objection, it is so ordered. be applied without regard to paragraph (12) about 50 seconds and yield to my co- Ms. SNOWE. Mr. President, essen- thereof (relating to special rule for collect- author, Senator TORRICELLI from New tially this takes a provision that is in- ibles)’’. Jersey. cluded in the amendment that Senator (e) PERSONAL EXEMPTIONS ALLOWED IN COM- Seventy-five percent of stockholders SCHUMER and I had offered that ad- PUTING MINIMUM TAX.— today have household incomes less (1) IN GENERAL.—Subparagraph (E) of sec- dresses the growing debt burden faced tion 6(b)(1) is amended by striking ‘‘$50’’ and than $75,000. The Coverdell-Torricelli by recent college students. inserting ‘‘$300’’. amendment targets middle-class inves- The bottom line is, we all recognize (2) CONFORMING AMENDMENT.—Subpara- tors by exempting their first $1,000 cap- that the cost of college education has graph (E) of section 56(b)(1), as amended by ital gains from taxation, beginning in quadrupled over the last 20 years, section 206(b)(2), is amended by striking fiscal year 2006. This is a bipartisan growing at twice the rate of inflation. ‘‘$50’’ and inserting ‘‘$300’’. amendment, which is also cosponsored In fact, over the past 5 years, the de- (f) CONFORMING AMENDMENTS.— by, as I said, Senators TORRICELLI, mand for college loans has soared by (1) Section 57(a)(7) is amended by striking DOMENICI, BAYH, and ABRAHAM. It will more than 82 percent. Therefore, recent ‘‘1202’’ and inserting ‘‘1203’’. wipe out the gains tax for millions of graduates have been forced to assume a (2) Clause (iii) of section 163(d)(4)(B) is amended to read as follows: middle-class taxpayers and promote greater burden of debt after they grad- ‘‘(iii) the sum of— tax simplification. uate from college. ‘‘(I) the portion of the net capital gain re- I yield the remainder of my minute My amendment would add a tax cred- ferred to in clause (ii)(II) (or, if lesser, the to the Senator from New Jersey. it for interest on student loans for the net capital gain referred to in clause (ii)(I)) The PRESIDING OFFICER. The Sen- first 5 years upon graduation so that it taken into account under section 1202, re- ator from New Jersey. would ease the amount of debt that induced by the amount of the deduction al- Mr. TORRICELLI. Mr. President, dividuals have to assume. It would be a lowed with respect to such gain under sec- Senator BAYH and I have joined with $1,500 tax credit. In fact, this has re- tion 1202, plus Senator COVERDELL on this amend- ceived the support of the American ‘‘(II) so much of the gain described in sub- ment. It is simple on its face: to en- clause (I) which is not taken into account Council on Education. under section 1202 and which the taxpayer courage people to engage in modest I will quote from this letter: elects to take into account under this savings, eliminating $1,000 of capital By adding your amendment to the Roth clause.’’ gains tax for modest savers. Seventy- provision, students who are working hard to (3) Subparagraph (B) of section 172(d)(2) is five percent of the people who will be repay their loans will receive tax relief for amended to read as follows: affected by this earn less than $70,000. the duration of their repayment and benefit ‘‘(B) the deduction under section 1202 and It is to encourage the culture of sav- from the additional relief of your credit dur- the exclusion under section 1203 shall not be ings so people plan for their own retire- ing their first years out of college. allowed.’’ ments and security in their own fami- I ask unanimous consent to have (4) Section 642(c)(4) is amended by striking printed in the RECORD the letter from ‘‘1202’’ and inserting ‘‘1203’’. lies. The Nation today is in the midst of a which I just quoted. (5) Section 643(a)(3) is amended by striking There being no objection, the letter ‘‘1202’’ and inserting ‘‘1203’’. savings crisis. I know of no better way (6) Paragraph (4) of section 691(c) is amend- to encourage people to participate in was ordered to be printed in the ed inserting ‘‘1203,’’ after ‘‘1202,’’. the growth of this economy and invest- RECORD, as follows: (7) The second sentence of section 871(a)(2) ment than giving this simple $1,000 ex- AMERICAN COUNCIL ON EDUCATION, is amended by inserting ‘‘or 1203’’ after ‘‘sec- clusion on their capital gains. OFFICE OF THE PRESIDENT, tion 1202’’. I thank the Chair. Washington, DC, July 30, 1999. (8) The last sentence of section 1044(d) is The PRESIDING OFFICER. Who Hon. OLYMPIA J. SNOWE, amended by striking ‘‘1202’’ and inserting yields time in opposition? U.S. Senate, ‘‘1203’’. Washington, DC. Mr. ROTH. Mr. President, I call for a (9) Paragraph (1) of section 1402(i) is DEAR SENATOR SNOWE: The higher edu- amended by inserting ‘‘, and the deduction voice vote. cation associations listed below write in sup- provided by section 1202 and the exclusion The PRESIDING OFFICER. The port of your amendment to create a tax cred- provided by section 1203 shall not apply’’ be- question is on agreeing to amendment it for interest payments on student loans. fore the period at the end. No. 1426, as modified. Your amendment, which would provide a (10) Section 121 is amended by adding at The amendment (No. 1426) was agreed $1,500 tax credit on interest payments for the the end the following new subsection: to. first 60 months of repayment, is a welcome ‘‘(h) CROSS REFERENCE.— Mr. GRAMM. Mr. President, I move addition to the provisions already contained in Chairman Roth’s bill. ‘‘For treatment of eligible gain not ex- to reconsider the vote. Mr. ROTH. I move to lay that motion We strongly support the provisions that cluded under subsection (a), see section Chairman Roth has included in his bill to ex- 1202.’’ on the table. pand the existing Student Loan Interest De- (11) Section 1203, as redesignated by sub- The motion to lay on the table was duction by eliminating the 60 payment re- section (a), is amended by adding at the end agreed to. striction and by modestly increasing the in- the following new subsection: Mr. ROTH. I recognize Senator come limits for married couples. We under- ‘‘(l) CROSS REFERENCE.— SNOWE for the next amendment. stand that your amendment is fully offset,

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and will not change any of the underlying taxpayer shall be deemed to have employ- MOTION TO WAIVE education provisions in S. 1429. ment-related expenses for the taxable year Mr. ROTH. Mr. President, section 202 By adding your amendment to the Roth with respect to each such qualifying indi- of S. 1429 makes certain that the mar- provisions, students who are working hard to vidual in an amount equal to the sum of— riage penalty relief in the bill also ap- repay their loans will receive tax relief for ‘‘(i) $200 for each month in such taxable plies to married couples receiving the duration of their repayment and benefit year during which such qualifying individual from the additional relief of your credit dur- is under the age of 1, and earned-income tax credits. Thus, the ing their first years out of college. ‘‘(ii) the amount of employment-related provision violates the Budget Act be- Thank you for your efforts to lessen the expenses otherwise incurred for such quali- cause it increases outlays. burden on student borrowers. fying individual for the taxable year (deter- In order to protect the provision Sincerely, mined under this section without regard to against a point of order, I move to STANLEY O. IKENBERRY, this paragraph). waive any point of order against sec- President. ‘‘(B) ELECTION TO NOT APPLY THIS PARA- tion 202 in this legislation, a subse- On behalf of: GRAPH.—This paragraph shall not apply with quent conference report, or in an American Association of Community Col- respect to any qualifying individual for any leges. taxable year if the taxpayer elects to not amendment between the Houses if such American Association of State Colleges have this paragraph apply to such qualifying point of order is made on the grounds and Universities. individual for such taxable year.’’. that the enhancement of the earned-in- American Council on Education. On page 21, line 1, strike ‘‘(c)’’ and insert come tax credit for married couples is Association of American Universities. ‘‘(d)’’. an increase in outlays. Association of Jesuit Colleges and Univer- Mr. GREGG. Mr. President, this is I call for a voice vote. sities. the stay-at-home-moms amendment. It The PRESIDING OFFICER. The Council of Independent Colleges. question is on agreeing to the motion National Association of Independent Col- basically extends the dependent care leges and Universities. tax credit to stay-at-home moms. I of the Senator from Delaware. National Association of State Universities note that the Senate voted 96–0 in a In the opinion of the Chair, three- and Land-Grant Colleges. sense of the Senate for this proposal. It fifths of the Senators duly sworn hav- National Association of Student Financial applies to the first year of the child’s ing voted in the affirmative, the mo- Aid Administrators. life and would apply the dependent care tion is agreed to. United States Student Association. tax credit to that first year, so that Mr. ROTH. Mr. President, I ask unan- US PIRG. mothers who stay at home and raise imous consent that notwithstanding The PRESIDING OFFICER. The Sen- children are treated the same way as the passage of the reconciliation bill, ator’s time has expired. mothers who have to go to work and the managers of the bill have the au- Mr. ROTH. Mr. President, I suggest a send their children to day care. thority, in conjunction with the Sec- voice vote. I note that it is an amendment that retary of the Senate, to make further The PRESIDING OFFICER. The is targeted at middle- and low-income changes to the bill. I further ask consent that the question is on agreeing to amendment families, with stay-at-home mothers in changes just described must be cleared No. 1468. households with an average $38,000 in by both managers and the authority The amendment (No. 1468) was re- income and with two working parents extend until 5 p.m. on Friday. jected. with an average income of about Mr. GRAMM. Mr. President, I move The PRESIDING OFFICER. Without $58,000. It is a proposal the Senate has objection, it is so ordered. to reconsider the vote. spoken on relative to the sense of the AMENDMENTS AGREED TO, EN BLOC Mrs. BOXER. I move to lay that mo- Senate. Therefore, I hope the Senate Mr. ROTH. Mr. President, I send a se- tion on the table. supports this proposal. ries of amendments to the desk and ask The motion to lay on the table was I ask for a voice vote. agreed to. Mr. NICKLES addressed the Chair. unanimous consent that these amend- Mr. ROTH. Mr. President, I recognize The PRESIDING OFFICER. The Sen- ments be considered agreed to en bloc, Senator GREGG for the next amend- ator from Oklahoma. the motion to reconsider be laid upon ment. Mr. NICKLES. Mr. President, I urge the table, and any statements relating AMENDMENT NO. 1375, AS MODIFIED my colleagues to support the Gregg to these amendments appear at this (Purpose: To provide a minimum dependent amendment. point in the RECORD. I indicate to my care credit for stay-at-home parents, and The PRESIDING OFFICER. The colleagues that these amendments for other purposes) question is on agreeing to the amend- have been cleared on both sides of the Mr. GREGG. Mr. President, I send an ment. aisle. amendment to the desk and ask for its The amendment (No. 1375) was agreed The PRESIDING OFFICER. Without modification. to. objection, it is so ordered. The amendments (Nos. 1377, 1387, The PRESIDING OFFICER. Without VOTE ON AMENDMENT NO. 1468 1394, 1402, 1407, 1425, 1441, 1458, 1460, 1464, objection, it is so ordered. The clerk Mr. NICKLES. Mr. President, if I 1479, 1485, 1488, and 1491), en bloc, were will report the amendment. might have the attention of the Sen- The assistant legislative clerk read agreed to. ate, a moment ago we had a voice vote (The amendments are printed in a as follows: on the Snowe amendment and there previous edition of the RECORD.) The Senator from New Hampshire [Mr. was some question on the outcome. I The amendments (Nos. 1378, as modi- GREGG] proposes an amendment numbered think the Chair ruled ‘‘no’’ on the 1375, as modified. fied; 1403, as modified; 1404, as modi- Snowe amendment, and I personally fied; 1418, as modified; 1443, as modi- Mr. GREGG. Mr. President, I ask think there was a significant question fied; 1465, as modified; 1474, as modi- unanimous consent that reading of the about that. A lot of people voted in fied), en bloc, were agreed to, as fol- amendment be dispensed with. favor of the Snowe amendment. So I lows: The PRESIDING OFFICER. Without move to reconsider the vote on the AMENDMENT NO. 1378 AS MODIFIED objection, it is so ordered. Snowe amendment. The amendment, as modified, is as (Purpose: To amend the Internal Revenue The PRESIDING OFFICER. Is there Code of 1986 to expand S corporation eligi- follows: objection to reconsidering the vote? bility for banks, and for other purposes) On page 21, before line 1, insert: Without objection, the vote will be On page 225, after line 24, add the fol- (c) MINIMUM DEPENDENT CARE CREDIT AL- reconsidered. lowing: LOWED FOR STAY-AT-HOME PARENTS.—Section The question is on agreeing to SEC. ll. EXCLUSION OF INVESTMENT SECURI- 21(e) (relating to special rules) is amended by amendment No. 1468 by the Senator TIES INCOME FROM PASSIVE IN- adding at the end the following: from Maine, Ms. SNOWE. COME TEST FOR BANK S CORPORA- ‘‘(11) MINIMUM CREDIT ALLOWED FOR STAY- TIONS. The amendment (No. 1468) was agreed AT-HOME PARENTS.— (a) IN GENERAL.—Section 1362(d)(3)(C) (de- ‘‘(A) IN GENERAL.—Notwithstanding sub- to. fining passive investment income) is amend- section (d), in the case of any taxpayer with Mr. ROTH addressed the Chair. ed by adding at the end the following: 1 or more qualifying individuals described in The PRESIDING OFFICER. The Sen- ‘‘(v) EXCEPTION FOR BANKS; ETC.—In the subsection (b)(1)(A) under the age of 1, such ator from Delaware is recognized. case of a bank (as defined in section 581), a

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bank holding company (as defined in section AMENDMENT NO. 1403, AS MODIFIED (d) DEFINITION OF ELIGIBLE CHILD.—Section 246A(c)(3)(B)(ii)), or a qualified subchapter S (Purpose: To amend the Internal Revenue 23(d)(2) is amended to read as follows: subsidiary bank, the term ‘passive invest- Code of 1986 with respect to the treatment ‘‘(2) ELIGIBLE CHILD.—The term ‘eligible ment income’ shall not include— of the transportation of person traveling to child’ means any individual who— ‘‘(I) interest income earned by such bank, or from areas not connected to a road sys- ‘‘(A) has not attained age 18, or bank holding company, or qualified sub- tem) ‘‘(B) is physically or mentally incapable of chapter S subsidiary bank, or At page 180, line 18 before the period insert caring for himself.’’ ‘‘(II) dividends on assets required to be the following new phrase: (e) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable held by such bank, bank holding company, or ‘‘AND PASSENGERS PERMITTED TO UTILIZE OTH- qualified subchapter S subsidiary bank to ERWISE EMPTY SEATS ON AIR- years beginning after December 31, 2000. conduct a banking business, including stock CRAFT’’. in the Federal Reserve Bank, the Federal At page 180, between lines 21 and 22 insert AMENDMENT NO. 1418 AS MODIFIED Home Loan Bank, or the Federal Agricul- the following new subsections: (Purpose: To amend the Internal Revenue ‘‘(b) Subsection (h) of section 132 of the In- tural Mortgage Bank or participation certifi- Code of 1986 with respect to the treatment ternal Revenue Code of 1986 (relating to cer- cates issued by a Federal Intermediate Cred- of maple syrup production) tain fringe benefits) is amended by adding at it Bank.’’ On line 3 of subsection (k) of section 3306 of the end thereof the following new paragraph: the Internal Revenue Code of 1986 is amended (b) EFFECTIVE DATE.—The amendment ‘‘(4) SPECIAL RULE FOR PASSENGERS TRAV- by inserting after ‘‘chapter’’ the following: ELING ON NONCOMMERCIAL AIRCRAFT.—Any use made by this section shall apply to taxable ‘‘agricultural labor includes labor connected of non-commercial air transportation by an years beginning after December 31, 1999. to the harvesting or production of maple sap individual shall be treated as use by an em- into maple syrup or sugar, and’’. SEC. ll. TREATMENT OF QUALIFYING DIREC- ployee if no regularly scheduled commercial TOR SHARES. flight is available that day from the air fa- AMENDMENT NO. 1443 AS MODIFIED (a) IN GENERAL.—Section 1361 is amended cility at the individual location. by adding at the end the following: ‘‘(c) Subsection (j) of section 132 of the In- (Purpose: To provide that trusts established ternal Revenue Code of 1986 (relating to cer- for the benefit of individuals with disabil- ‘‘(f) TREATMENT OF QUALIFYING DIRECTOR tain fringe benefits’’ is amended by adding at ities shall be taxed at the same rates as in- SHARES.— the end thereof the following new paragraph: dividual taxpayers, and for other purposes) ‘‘(1) IN GENERAL.—For purposes of this sub- ‘‘(9) SPECIAL RULE FOR CERTAIN NONCOMMER- On page 32, between lines 14 and 15, insert chapter— CIAL AIR TRANSPORTATION.—For the purposes the following: of subsection (b) the term ‘‘no-additional- ‘‘(A) qualifying director shares shall not be SEC. 207. MODIFICATION OF TAX RATES FOR treated as a second class of stock, and cost service’’ includes the value of transpor- TRUSTS FOR INDIVIDUALS WHO ARE ‘‘(B) no person shall be treated as a share- tation provided by an employer to an em- DISABLED. holder of the corporation by reason of hold- ployee on a noncommercially operated air- (a) IN GENERAL.—Section 1(e) (relating to ing qualifying director shares. craft if— tax imposed on estates and trusts) is amend- ‘‘(A) such transportation is provided on a ‘‘(2) QUALIFYING DIRECTOR SHARES DE- ed to read as follows: flight made in the ordinary course of the FINED.—For purposes of this subsection, the ‘‘(e) ESTATES AND TRUSTS.— trade or business of the employer owning or term ‘qualifying director shares’ means any ‘‘(1) IN GENERAL.—Except as provided in leasing such aircraft for use in such trade or shares of stock in a bank (as defined in sec- paragraph (2), there is hereby imposed on the business, taxable income of— tion 581) or in a bank holding company reg- ‘‘(B) the flight on which the transportation istered as such with the Federal Reserve ‘‘(A) every estate, and is provided by the employer would have been ‘‘(B) every trust, System— made whether or not such employee was ‘‘(i) which are held by an individual solely taxable under this subsection a tax deter- transported on the flight, and mined in accordance with the following by reason of status as a director of such bank ‘‘(C) the employer incurs no substantial ad- table: or company or its controlled subsidiary; and ditional cost in providing such transpor- ‘‘(ii) which are subject to an agreement tation to such employee. ‘‘If taxable income is: The tax is: pursuant to which the holder is required to For purposes of this paragraph, an aircraft is Not over $1,500 ...... 15% of taxable income. dispose of the shares of stock upon termi- Over $1,500 but not over $225, plus 28% of the ex- noncommercially operated if transportation $3,500. cess over $1,500. nation of the holder’s status as a director at provided by the employer is not provided or Over $3,500 but not over $785, plus 31% of the ex- the same price as the individual acquired made available to the general public by pur- $5,500. cess over $3,500. such shares of stock. chase of a ticket or other fare. Over $5,500 but not over $1,405, plus 36% of the ex- ‘‘(3) DISTRIBUTIONS.—A distribution (not in At page 180 line 22 strike ‘‘(b)’’ and insert $7,500. cess over $5,500. part or full payment in exchange for stock) in lieu thereof ‘‘(d)’’. Over $7,500 ...... $2,125, plus 39.6% of the excess over $7,500. made by the corporation with respect to AMENDMENT NO. 1404 AS MODIFIED ‘‘(2) SPECIAL RULE FOR TRUSTS FOR DIS- qualifying director shares shall be includible ABLED INDIVIDUALS.— as ordinary income of the holder and deduct- (Purpose: To expand the adoption credit to provide assistance to adoptive parents of ‘‘(A) IN GENERAL.—There is hereby imposed ible to the corporation as an expense in com- on the taxable income of an eligible trust puting taxable income under section 1363(b) special needs children, and for other purposes) taxable under this subsection a tax deter- in the year such distribution is received.’’ mined in the same manner as under sub- At the end of title II, insert the following: (b) CONFORMING AMENDMENTS.— section (c). SEC. ll. EXPANSION OF ADOPTION CREDIT. (1) Section 1361(b)(1) is amended by insert- ‘‘(B) ELIGIBLE TRUST.—For purposes of sub- (a) IN GENERAL.—Section 23(a)(1) (relating paragraph (A), a trust shall be treated as an ing ‘‘, except as provided in subsection (f),’’ to allowance of credit) is amended to read as before ‘‘which does not’’. eligible trust for any taxable year if, at all follows: times during such year during which the (2) Section 1366(a) is amended by adding at ‘‘(1) IN GENERAL.—In the case of an indi- trust is in existence, the exclusive purpose of the end the following: vidual, there shall be allowed as a credit the trust is to provide reasonable amounts ‘‘(3) ALLOCATION WITH RESPECT TO QUALI- against the tax imposed by this chapter— for the support and maintenance of 1 bene- FYING DIRECTOR SHARES.—The holders of ‘‘(A) in the case of an adoption of a child ficiary who is permanently and totally dis- qualifying director shares (as defined in sec- other than a child with special needs, the abled (within the meaning of section tion 1361(f)) shall not, with respect to such amount of the qualified adoption expenses 22(e)(3)). A trust shall not fail to meet the re- shares of stock, be allocated any of the items paid or incurred by the taxpayer, and quirements of this subparagraph merely be- described in paragraph (1).’’ ‘‘(B) in the case of an adoption of a child cause the corpus of the trust may revert to (3) Section 1373(a) is amended by striking with special needs, $7,500.’’ the grantor or a member of the grantor’s ‘‘and’’ at the end of paragraph (1), by strik- (b) DOLLAR LIMITATION.—Section 23(b)(1) is family upon the death of the beneficiary.’’ ing the period at the end of paragraph (2) and amended— (b) EFFECTIVE DATE.—The amendments inserting ‘‘, and’’, and adding at the end the (1) by striking ‘‘($6,000, in the case of a made by this section shall apply to taxable following: child with special needs)’’, and years beginning after December 31, 2006. ‘‘(3) no amount of an expense deductible (2) by striking ‘‘subsection (a)’’ and inserting ‘‘subsection (a)(1)’’. under this subchapter by reason of section AMENDMENT NO. 1465 AS MODIFIED (c) YEAR CREDIT ALLOWED.—Section 23(a)(2) 1361(f)(3) shall be apportioned or allocated to is amended by adding at the end the fol- (Purpose: To index the State-ceiling on the such income.’’ lowing new flush sentence: low-income housing credit, and for other (c) EFFECTIVE DATE.—The amendments ‘‘In the case of the adoption of a child with purposes) made by this section shall apply to taxable special needs, the credit allowed under para- On page 288, strike line 5 and insert: years beginning after December 31, 1999. graph (1) shall be allowed for the taxable (c) ADJUSTMENT OF STATE CEILING FOR IN- year in which the adoption becomes final.’’ CREASES IN COST-OF-LIVING.—Paragraph (3) of

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9908 CONGRESSIONAL RECORD — SENATE July 30, 1999 section 42(h) (relating to housing credit dol- I support tax relief for the American ture. These include one to permit Indi- lar amount for agencies), as amended by sub- people, and I will support this tax bill. vidual Retirement Accounts to be section (b), is amended by adding at the end The surplus belongs to the American shareholders in an S corporation. This the following new subparagraph: people, and I think a refund of one- provision is a recognition of the impor- ‘‘(I) COST-OF-LIVING ADJUSTMENT.— ‘‘(i) IN GENERAL.—In the case of a calendar third of the surplus is reasonable. tance of IRAs. year after 2005, the $1.75 amount in subpara- While I support the bill, I have been We have found that many community graph (H) shall be increased by an amount working to improve it before final pas- bank owners have their shares in an equal to— sage. IRA. There is nothing wrong with this. ‘‘(I) such dollar amount, multiplied by In particular, we should expand the We should let them be shareholders. ‘‘(II) the cost-of-living adjustment deter- small business tax section of the code In addition, we hope in the future to mined under section 1(f)(3) for such calendar known as Subchapter S. Subchapter S permit S corporations to issue pre- year by substituting ‘calendar year 2004’ for of the Internal Revenue Code was en- ferred stock. This would give all small ‘calendar year 1992’ in subparagraph (B) businesses that are S corporations ac- thereof. acted by Congress in 1958 and has been liberalized a number of times over the cess to investment capital. ‘‘(ii) ROUNDING.—Any increase under clause Let me conclude with a general (i) which is not a multiple of 5 cents shall be last two decades, significantly in 1982 statement on why we should enact rounded to the next lowest multiple of 5 and again in 1996. these changes. Last year we enacted cents.’’. This reflects a desire on the part of ONFORMING MENDMENTS broad legislation to support credit (d) C A .— Congress to reduce taxes on small busi- On page 288, line 19, strike ‘‘(d)’’ and insert unions. I supported this legislation. ‘‘(e)’’. nesses. Subchapter S eliminates the We should now give small banks double taxation of small business in- some tax relief. They are in a tough AMENDMENT NO. 1474 AS MODIFIED come. competitive position. (Purpose: To exclude certain severance Under Subchapter S the business is We are about to approve financial payment amounts from income) taxed at the shareholder level alone, it modernization in this Congress. I am a On page 371, between lines 16 and 17, insert is not taxed at the corporate level. member of the Conference on this im- the following: Subchapter S is available only to small portant legislation. I support the legis- SEC. ll. EXCLUSION FROM INCOME OF SEVER- businesses that have a small number of ANCE PAYMENT AMOUNTS. lation. (a) IN GENERAL.—Part III of subchapter B shareholders. But I think it is right to note that of chapter 1 (relating to items specifically Congress made small banks eligible this legislation is of greatest appeal to excluded from gross income) is amended by for S corporation status in the 1996 larger financial institutions. redesignating section 139 as section 140 and ‘‘Small Business Job Protection Act.’’ Again, our small community banks by inserting after section 138 the following Since first becoming eligible, nearly need help. They need tax relief to help new section: 1,000 small banks have converted from them compete and survive. This ‘‘SEC. 139. SEVERANCE PAYMENTS. regular corporations to small business amendment give the small banks tax ‘‘(a) IN GENERAL.—In the case of an individual, gross income shall not include any corporations. relief. qualified severance payment. Unfortunately, many more would This amendment is supported by the ‘‘(b) LIMITATION.—The amount to which the like to convert, but are prevented from Independent Community Bankers of exclusion under subsection (a) applies shall doing so by a number of remaining ob- America, the American Bankers Asso- not exceed $2,000 with respect to any separa- stacles in the tax law. ciation, the Independent Bankers of tion from employment. My amendment builds on and clari- Colorado, the Colorado Bankers Asso- ‘‘(c) QUALIFIED SEVERANCE PAYMENT.—For fies the Subchapter S provisions from ciation, the Independent Bankers Asso- purposes of this section— ciation of Texas, and others. ‘‘(1) IN GENERAL.—The term ‘qualified sev- 1996. It contains several provisions of erance payment’ means any payment re- particular benefit to community banks I am pleased that the Finance Com- ceived by an individual if— that may be contemplating a conver- mittee has accepted the passive income ‘‘(A) such payment was paid by such indi- sion to Subchapter S. and director stock provisions of the vidual’s employer on account of such individ- The amendment is based on S. 875, amendment. ual’s separation from employment, legislation that I introduced earlier In addition, Senator ROTH and his ‘‘(B) such separation was in connection this year with the cosponsorship of staff have agreed to work with us on with a reduction in the work force of the em- the remaining provisions of the amend- Senators GRAMM, BENNETT, SHELBY, ployer, and ment and S. 875. ‘‘(C) such individual does not attain em- ABRAHAM, HAGEL, ENZI, MACK, GRAMS, AMENDMENT NO. 1403 ployment within 6 months of the date of INHOFE, BROWNBACK, and THOMAS. such separation in which the amount of com- I have selected several provisions Mr. STEVENS. Mr. President, my pensation is equal to or greater than 95 per- from the bill for this amendment and amendment mirrors a bill I introduced cent of the amount of compensation for the the Finance Committee has agreed to on an earlier occasion-S. 1410. This amendment would equate the employment that is related to such payment. accept them. Let me review these pro- ‘‘(2) LIMITATION.—Such term shall not in- tax treatment of persons flying what visions: clude any payment received by an individual would otherwise be empty seats on pri- if the aggregate payments received with re- First, we exclude investment securi- vate noncommercial aircraft with the spect to the separation from employment ex- ties income from the passive income treatment of airline employees flying ceed $75,000.’’ test for banks. Banks are unique, they on space available basis on regularly (b) CLERICAL AMENDMENT.—The table of are required to hold passive invest- sections for part III of subchapter B of chap- scheduled flights. Currently, use of ments such as federal bonds and munic- these empty seats is deemed taxable ter 1 is amended by striking the item relat- ipal bonds in order to comply with ing to section 139 and inserting the following personal income to the employee. I new items: safety and soundness regulations. refer to it as the empty-seat tax. In This provision is only fair. If we re- ‘‘Sec. 139. Severance payments. contrast, under current law, airline quire certain investments by regula- employees, retirees and their parents ‘‘Sec. 140. Cross references to other Acts.’’ tion, we should not use this require- (c) EFFECTIVE DATE.—The amendments and children can fly tax-free on sched- made by subsections (a) and (b) shall apply ment to prohibit banks from becoming uled commercial flights for nonbusi- to taxable years beginning after December Subchapter S small businesses. ness reasons. Military personnel and 31, 2000, and before January 1, 2002. Second, we permit Subchapter S their families can hop military flights AMENDMENT NO. 1378, AS MODIFIED small business corporations to have for nonbusiness reasons without the Mr. ALLARD. Mr. President, this bank director stock. Again, regulations imposition of tax. Current and former amendment would expand the small require banks to have bank director employees of airborne freight or cargo business provisions of this tax bill. I stock. haulers, together with their parents am pleased that several of the provi- We clarify that this does not punish and children, can fly tax-free for non- sions have been accepted. We are mak- banks. They can still become small business reasons on seats that would ing solid progress on this issue. business corporations. have otherwise been empty. This is a bipartisan amendment, co- In addition, I will be working with Employers who own or lease these sponsored by Senators ROBB of Virginia Chairman ROTH and his staff on several aircraft are compelled by IRS regula- and HAGEL of Nebraska. other provisions to consider for the fu- tions to consider 13 separate factors or

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9909 steps in determining the incidence and discrimination against the users of ternative minimum tax (AMT). This amount of tax to be imposed on their empty seats who live or do business in would ensure that a farmer’s AMT is employees. My proposal seeks to deal rural areas. not increased solely because he or she with this inequity by treating all pas- It is my hope that we can address elects income averaging. sengers the same way, but includes a this basic issue of tax fairness and Under section 604 of the Finance provision which retains a reasonable complexity by eliminating the empty Committee’s bill, a farmer electing to standard of proof at audit to prevent seat tax. average his or her farm income would abuse. AMENDMENT NO. 1460 owe AMT only to the extent he or she This amendment would not allow an Mr. STEVENS. Mr. President, the would have owned alternative min- executive to use a company jet to fly proposed Taxpayers Refund Act of 1999 imum tax had averaging not been with his family and friends on vaca- includes a provision to create farm and elected. I have offered an amendment tion. My amendment would require ranch risk management (FARRM) ac- that would extend the income aver- proof to be shown that the flight was counts to help farmers and ranchers aging to fishermen and would coordi- made in the ordinary course of busi- through down times. The estimated nate the tax treatment with the AMT, ness, the flight would have been made cost for this provision is $887 million just as the bill attempts to do for farm- whether or not the person was trans- over the next ten years. The FARRM ers. ported on the flight, and no substantial accounts would be used to let farmers Fishermen should receive the same additional cost was incurred in pro- and ranchers set aside up to 20 percent treatment as farmers. The Joint Com- viding the transportation for the pas- of their income on a tax deferred basis. mittee on Taxation estimates the senger. The money could be held for up to five measure for farmers would cost $22 mil- In addition to the facilitation of em- years, then it would have to be with- lion over the next ten years. According ployee travel, this provision is an espe- drawn from the individual’s account. to the Joint Committee on Taxation, cially important issue to large States Once the money is withdrawn from the my amendment for fishermen would with smaller populations because air account, the farmers and ranchers cost $5 million over the next ten years. This is a small amount to ensure that travel comprises such a large part of would pay tax on the amount that was fishermen receive the same benefits as our transportation systems. Instead of originally deferred. Any interest farmers under our current tax struc- driving a car from city to city, many earned on the money in the account ture. people from rural areas get on a plane would be taxed in the year that it was Fishermen face the same type of eco- to travel within their States. There are earned. nomic ups and downs that farmers and This approach to encouraging farm- no roads from Barrow to Nome or An- ranchers face. Because of this, they chorage to Cold Bay. Additionally, in ers and ranchers to set some money shouldn’t be excluded from income the event of illness, many people in aside for downturns in the market averaging or coordination with the rural States must take an empty seat makes sense. However, this provision AMT. I thank my colleagues who have on a company owned airplane and incur should be expanded to include fisher- joined me on this amendment, Sen- men—I have an amendment that would a tax penalty because they need med- ators MURKOWSKI, INOUYE, SHELBY, do just that. The Joint Committee on ical treatment that can only be found BREAUX, HOLLINGS, GORTON, and MUR- Taxation estimates allowing fishermen in larger cities. My amendment in- RAY. cludes a provision to allow passengers to set aside 20 percent of their income AMENDMENT NO. 1485, AS MODIFIED to be treated as employees if they live into these tax deferred accounts would Mr. BENNETT. Mr. President, I ask in remote areas that are not connected cost only an additional $18 million over unanimous consent that amendment to a road system. For cases of medical 10 years. No. 1485, which was previously adopted, Fishermen are the farmers of the sea. emergency or other time sensitive situ- be modified with the changes that are They face the same type of economic ations, a passenger could as if they at the desk. were an employee of the operator of problems that farmers and ranchers The PRESIDING OFFICER. Without the non-commercial aircraft without face and they shouldn’t be excluded objection, it is so ordered. being taxes on the value of the seat. from establishing their own tax de- The amendment (No. 1485), as modi- This is a modest proposal with small ferred accounts. In previous years we fied, is as follows: revenue impacts. The joint Committee have had to bail out fishing areas that On page 286, line 6, strike ‘‘1999’’ and insert on Taxation estimates the revenue im- have been hit hard by fishery failures. ‘‘2004’’. pact for this provision would be ap- A recent fishery failure in Alaska, and On page 371, between lines 16 and 17, insert proximately five million dollars per the impact of that failure on families the following: year over the next ten year period. and communities, is still being felt SEC. ll. TREATMENT OF BONDS ISSUED TO AC- QUIRE RENEWABLE RESOURCES ON While this is a small amount against today. We were forced to allocate $50 LAND SUBJECT TO CONSERVATION the backdrop of the overall tax cut million to bail out those fishermen and EASEMENT. measure we are considering, it is a the local communities. This amend- (a) IN GENERAL.—Section 145 (defining large amount to the people who are ment, at a cost of $18 million over ten qualified 501(c)(3) bond) is amended by redes- forced to pay the tax simply because years, is a far-sighted way to let fisher- ignating subsection (e) as subsection (f) and they do not work for or are not related men play a part in a disaster recovery by inserting after subsection (d) the following new subsection: to an employee of an airline, the mili- and preserve the proud self-reliance ‘‘(e) BONDS ISSUED TO ACQUIRE RENEWABLE tary, a cargo freight company, or be- that marks their industry. RESOURCES ON LAND SUBJECT TO CONSERVA- cause they live in remote areas with- Fishermen should receive the same TION EASEMENT.— out road access. Flights are often, at benefits as farmers and ranchers under ‘‘(1) IN GENERAL.—If— best, biweekly to some rural villages in the Tax Code. They share seasonal cy- ‘‘(A) the proceeds of any bond are used to my State and during the long periods clical harvest levels and should not be acquire land (or a long-term lease thereof) when no flights are scheduled, trans- left behind in the Tax Code. While this together with any renewable resource associ- amendment is one step toward equal ated with the land (including standing tim- portation out of these remote areas in ber, agricultural crops, or water rights) from emergency situations requires char- treatment, it is an important part of an unaffiliated person, tering an aircraft. ensuring the long-term sustainability ‘‘(B) the land is subject to a conservation We should keep in mind that we are of our fishing industry. I thank my col- restriction— currently debating a tax refund bill leagues who have joined me on this ‘‘(i) which is granted in perpetuity to an that seeks to level the playing field for amendment, Senators MURKOWSKI, unaffiliated person that is— the American taxpayers. The tax re- INOUYE, SHELBY, BREAUX, HOLLINGS, ‘‘(I) a 501(c)(3) organization, or fund bill would remove the marriage GORTON, and MURRAY. ‘‘(II) a Federal, State, or local government conservation organization, penalty that discriminate against mar- AMENDMENT NO. 1488 ‘‘(ii) which meets the requirements of ried couples. It addresses inequities in Mr. STEVENS. Mr. President, the clauses (ii) and (iii)(II) of section 170(h)(4)(A), pension plans that discriminate proposed Taxpayer Refund Act of 1999 ‘‘(iii) which exceeds the requirements of against certain workers. Yet, the Tax contains a provision to coordinate a relevant environmental and land use stat- Refund Act does not address the tax farmer’s income averaging with the al- utes and regulations, and

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9910 CONGRESSIONAL RECORD — SENATE July 30, 1999 ‘‘(iv) which obligates the owner of the land so that they can bequeath a legacy to I agree with Chairman Greenspan to pay the costs incurred by the holder of the their children. that tax cuts cannot be our first pri- conservation restriction in monitoring com- All this, Mr. President, without ority. Our first priority must be to pro- pliance with such restriction, greatly increasing the complexity of tect Social Security and address the ‘‘(C) a management plan which meets the the tax code. national debt. Which is exactly what requirements of the statutes and regulations Over the next 10 years the federal referred to in subparagraph (B)(iii) is devel- this substitute does by setting aside oped for the conservation of the renewable government will accumulate surpluses more than half our projected surpluses resources, and of about $3 trillion. Now that the age of for those purposes. ‘‘(D) such bond would be a qualified surpluses has arrived, we must decide At the same time, we cannot allow 501(c)(3) bond (after the application of para- what to do with them, how we can best these surpluses to become ‘‘lightning graph (2)) but for the failure to use revenues use them to insure economic growth rods’’ for yet more increases in the size derived by the 501(c)(3) organization from the and security into the next millennium. and scope of government, and in the sale, lease, or other use of such resource as Thus, of the $3 trillion in coming surtax burden on the American people. otherwise required by this part, pluses, the $1.8 trillion for the Social And that is precisely what the Presi- such bond shall not fail to be a qualified Security Trust Funds must be pro- 501(c)(3) bond by reason of the failure to so dent’s plan would do; it would spend use such revenues if the revenues which are tected; it must stay in Social Security. the surplus, including the Social Secu- not used as otherwise required by this part The question is, what should we do rity surplus, on further government are used in a manner consistent with the with the remaining $1 trillion? programs, leaving nothing for the stated charitable purposes of the 501(c)(3) or- I believe that we should give at least American people. ganization. $800 billion back to the American peo- That is simply wrong. And I was ‘‘(2) TREATMENT OF TIMBER, ETC.— ple. Whatever plan we adopt, it seems pleased to learn that Chairman Green- ‘‘(A) IN GENERAL.—For purposes of sub- to me we must ensure that Social Se- span agrees. In his testimony he said ‘‘I section (a), the cost of any renewable re- curity remains strong so that the sen- have great sympathy for those who source acquired with proceeds of any bond ior citizens of today and tomorrow may wish to cut taxes now to pre-empt that described in paragraph (1) shall be treated as depend on it for security in their old a cost of acquiring the land associated with [spending] process, and indeed, if it the renewable resource and such land shall age. We also must approach our na- turns out that they are right, then I not be treated as used for a private business tional debt in a responsible way seeing would say moving on the tax front use because of the sale or leasing of the re- to it that it never again becomes a makes a good deal of sense to me.’’ newable resource to, or other use of the re- drain on our economy. And, also for It makes a great deal of sense, Mr. newable resource by, an unaffiliated person the sake of our economy, we must see President, for us to set aside the bulk to the extent that such sale, leasing, or other to it that investments in plant, equip- of the surplus for Social Security and use does not constitute an unrelated trade or ment and human capital increase over debt relief, then to return the rest to business, determined by applying section the coming decades. Finally, we must the American people. It makes a great 513(a). address a worsening problem in Amer- ‘‘(B) APPLICATION OF BOND MATURITY LIMI- deal of sense for us, after reserving ican life: the overtaxation of the Amer- TATION.—For purposes of section 147(b), the over $2 trillion for these essential func- cost of any land or renewable resource ac- ican people. tions to return $800 billion to the quired with proceeds of any bond described The President’s plan addresses none American people, as a refund of their in paragraph (1) shall have an economic life of these needs. It does nothing to save tax overpayment. commensurate with the economic and eco- Social Security, instead merely com- I believe we are doing the right thing logical feasibility of the financing of such mencing a vast shell game with tax- by giving 25 cents back to the Amer- land or renewable resource. payer money. What is more, the Presi- ican people for every surplus dollar. I ‘‘(C) UNAFFILIATED PERSON.—For purposes dent proposes massive new spending, of this subsection, the term ‘unaffiliated per- believe the plan crafted by those on the and even $95 billion in new taxes. other side of the aisle is wrong to give son’ means any person who controls not The bottom line is this, Mr. Presi- more than 20 percent of the governing body back only 10 cents on each surplus dol- dent Clinton wants to spend the sur- of another person.’’ lar. (b) EFFECTIVE DATE.—The amendment plus. According to the CBO, the Presi- Let me briefly outline the provisions made by subsection (a) shall apply to obliga- dent proposes $1 trillion in new spend- of this substitute, crafted as I said by tions issued after the date of the enactment ing over the next 10 years. That would majority Leader LOTT. It includes: of this Act. mean taking $29 billion out of the So- Broad-based rate cuts, expanding the SEC. . MODIFICATION OF ALTERNATIVE MIN- cial Security Trust Fund surplus. 15% tax bracket upwards by $10,000. IMUM TAX FOR INDIVIDUALS. Now I know some of my colleagues Family tax relief, including an end to Section 56(b)(1)(e), as amended by section on the other side of the aisle have been the marriage penalty and provisions 206, is amended by striking ‘‘$250’’ and insert- quoting from Federal Reserve Chair- ing ‘‘$300’’. for child care and foster care. man Greenspan’s recent Congressional An end to the estate or death tax. TAX RELIEF testimony. In that testimony, Chair- Incentives for savings and invest- Mr. ABRAHAM. Mr. President, my man Greenspan said ‘‘My first priority, ments, including exclusions for inter- motion to recommit is the substitute if I were given such a priority, is to let est and dividend income and a cut in tax plan submitted by Majority Leader the surpluses run.’’ individual capital gains rates to 15% LOTT in the Finance Committee. I will Some of my colleagues have been and 7.5%. not request a vote on this motion. claiming that, in these words, Chair- Retirement savings incentives I commend the efforts of Chairman man Greenspan has rejected tax relief through an increase in the IRA con- ROTH in putting together the Taxpayer for the American people. But this is tribution limit to $5,000 per year. Refund Act. However, it is my belief simply not so, Mr. President. Any rea- Education incentives, including edu- that Congress right now has a unique sonable examination of the record cation savings accounts, student loan opportunity to enact broad-based tax would show Chairman Greenspan’s true interest deductions and prepaid tuition cuts, providing more pro-growth and views on the matter, namely that he plans for public and private schools. pro-family relief than is currently pro- would delay tax cuts ‘‘unless, as I’ve Provisions making health care more vided in the Finance Committee bill. indicated many times, it appears that affordable, including a new deduction This substitute combines the ele- the surplus is going to become a light- for health insurance expenses, long- ments I believe are essential to pre- ening rod for major increases in out- term care provisions, Medical Savings serving economic security for years to lays. That’s the worst of all possible Accounts, and an additional caretaker come: It preserves Social Security and worlds, from a fiscal policy point of dependency deduction. Medicare; It reduces the near-record view, and that, under all conditions, Small business tax relief, including tax burden currently placed on the should be avoided.’’ immediate 100% deductibility of health American people; and It empowers Chairman Greenspan was not saying insurance for the self-employed and in America’s growing investor class— ‘‘I oppose tax cuts.’’ Rather, he was increase in small business expensing to working, middle class families who saying, quite reasonably in my view, $30,000. strive to save for the future so that that tax cuts must not come at the ex- Risk management accounts for farm- they may enjoy secure retirements and pense of fiscal and monetary stability. ers and ranchers.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9911 Permanent extension of the Research they want no special favors, just the State College survey found that close and Development tax credit, and opportunity to save and invest. And, to a third of African American-owned An extension of the work oppor- with $4.5 trillion invested in mutual businesses would have to be sold by tunity credit and welfare to work cred- funds alone, America’s investor class their inheriting heirs to pay taxes. The it. has become the bedrock of our econ- death tax destroys family businesses. I would like to focus on the provi- omy. It destroys wealth, and it destroys jobs. sions in this substitute that I believe It is time to put to rest once and for It is time to end it. differentiate it from the Finance Com- all the old class warfare slogan that But entrepreneurs need more help mittee legislation; provisions that in only the rich pay capital gains taxes. Is from us. Current tax laws, by sub- my view provide even more pro-family half of America ‘‘rich?’’ Do half our sidizing employer-purchased health and pro-growth tax relief where it is people earn so much money that they plans, penalize small business owners. most needed. do not deserve a tax relief? They make it more difficult for them First is family tax relief. Families I think not. Indeed, 49% of the inves- to afford their own health insurance today pay a higher proportion of their tor class if female, 38% are non-profes- and to attract and keep good employ- incomes in taxes than ever before in sional salaried workers. Wall Street ees without spending themselves into our history—31.7 percent. They pay and Main Street are no longer sepa- bankruptcy. more in income taxes than at any time rated by a vast socioeconomic divide. The substitute framed by Leader since World War II. They spend more It is high time we recognized this fact, Lott would address these barriers to on taxes than on food, clothing and and helped new, middle class investors family-owned business survival by ac- shelter combined. And this tax burden succeed in their drive to invest for the celerating the 100% deductibility of leaves families with less money to future. self-employed health insurance. spend on necessities, and less to save This substitute would do precisely The provisions I have outlined aim to for their retirement and for their chil- that, Mr. President. It would make the bring substantive tax relief to the dren’s education. first $500 of interest and/or dividend in- mainstream of the American economy. Families deserve tax relief, particu- come tax-free for families, with the This is crucial to the economic well- larly at a time when they are over- first $250 of this income becoming tax- being of our nation. But we must do more. We also must paying to the tune of over a trillion free for individuals. It also would in- bring greater economic opportunity to dollars. crease the IRA contribution limit to disadvantaged urban and rural areas This substitute will give families the $5,000 per year, allowing Americans to throughout the United States. If we are substantive tax break they need and more effectively save for retirement. to remain prosperous over the long deserve. Finally, it would cut capital gains tax term, we must bring more Americans First, it includes broad-based tax re- rates, reducing the current 20 and 10% into the vast mainstream of our econ- lief by increasing the amount of in- tax brackets to 15 and 7.5%, respec- omy by empowering them to take con- come a family can earn while remain- tively. trol of their own economic lives. That ing in the 15% income tax bracket by Of course, not all of nation’s eco- is why this substitute extends the crit- $10,000. The figure for single taxpayers nomic growth comes from stock invest- ical work opportunity credit and wel- will increase by $5,000. In this way, Mr. ment. Many entrepreneurs in this fare-to-work credits through 2004. President, we will return 7 million tax- country invest their blood, tears, toil Finally, we must continue to encour- payers to the lower, 15% tax bracket, and sweat into family owned busi- age the research and development so and 35 million taxpayers will receive a nesses—businesses that keep our main crucial to maintaining our competitive tax cut. streets vital and our economy growing. edge in global markets, particularly in Under this proposal, even a single Our nation was built on the strength this era of high-tech development. filer would save $550 on his or her of family-owned businesses. Whether That is why this substitute provides for taxes. on the frontier or in more settled the permanent extension of the R&D In addition, this substitute ends the urban areas, family businesses have de- tax credit. marriage penalty and provides relief livered the goods for generations. Yet All told, the provisions making up for child and foster care services. the federal government sets up almost this substitute will provide $800 billion Taken together, these provisions will insurmountable obstacles to family in tax relief for the American people. directly reduce the tax rate imposed on businesses. This substitute will encourage work, American families and increase incen- The death tax makes it impossible savings and investment, it will help tives for work and economic growth. for many entrepreneurs to pass the working families, it will help dis- Second, this substitute will provide business on to their children. Too often tressed urban and rural areas, and it tax relief to literally millions of work- today, children must sell the family will provide $2.2 trillion for Social Se- ing Americans struggling to build a business just to pay taxes. And the re- curity, Medicare, and debt reduction. nest egg for the future. By cutting sult is often a sell-off of assets to large It is my hope that the conference taxes on interest, dividends and capital corporations, destroying jobs and in- committee on the tax bill will produce gains. vestment opportunities. an agreement that mirrors the Lead- This latest era of economic growth I realize that some people favor the er’s substitute tax plan. has been unique, Mr. President, in that death tax as a means of punishing peo- I believe we must look to this era of it has seen savings rates fall into nega- ple who have amassed great quantities budget surpluses with confidence. Con- tive numbers—indicating an increase of wealth. But the IRS’ own records fidence in ourselves and confidence in in consumer borrowing in excess of sav- show that fully 80% of all taxable es- the American people. This is no time ings. We cannot sustain economic tates are worth less than $1 million. for business as usual. Rather, we are growth and job creation unless Ameri- $1 million still sounds like a lot of faced with once-in-a-lifetime oppor- cans save and invest for the future. money, Mr. President. But consider tunity to free Americans from the bur- That is why this substitute will ad- this: according to the Associated Gen- den of stifling overtaxation, freeing dress the needs of America’s growing eral Contractors of America, any con- their energies and their intellects even ‘‘investor class.’’ These working Amer- tractor who purchases the three pieces as we provide a solid grounding of So- icans—125 million and counting—are of equipment essential to this trade, an cial Security and Medicare for genera- the real owners of the means of produc- off-highway dump truck, bulldozer and tions to come. tion in America. front-end loader, will have already There are voices of doom abroad in Surveys conducted by a number of amassed assets valued at over $1 mil- the land, Mr President. But these sources agree that, through pension lion. voices are as wrong today as they have plans, IRAs and other investment vehi- And relatively new businesses, such always been. They would have us put cles, roughly 50% of Americans—half as those begun by black Americans all of our faith and confidence in an our nation—owns stocks. They out- until recent years deprived of the ever-growing federal government, with number any of the special interest chance to compete, are especially vul- its ever-growing financial resources di- groups you would care to name. Yet nerable to the death tax. A Kennesaw verted by its bureaucratic experts into

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9912 CONGRESSIONAL RECORD — SENATE July 30, 1999 programs designed to protect us from take a moment to review the real sur- items they would forego if they needed ourselves. plus numbers and join us in our effort. extra money to cover unforseen ex- I say no to these doomsayers. I say Mr. EDWARDS. Mr. President, I rise penses, which one would it be? ‘‘no’’ to them because I believe it is im- today to oppose S. 1429. Passing this If making these projections for a portant for us to say ‘‘yes’ to the bill is like going on a spending spree family is difficult, what can be said American people. Yes to their dreams just because a sweepstakes company about the difficulty of predicting the of financial security, yes to their desire tells you ‘‘you might be a winner.’’ federal government’s budget 10 years? to pass the family business on to their I support tax cuts. The question for I’ll tell you what I think about it. I children, yes to their cries for help re- me is, when? I am a fiscal conservative think it is extremely difficult. And I lieving the highest tax burden since and am happy to vote for tax cuts. Any am not alone. World War II. tax cut, however, needs to be done in a I had an exchange the day before yes- It is time to provide the kind of fiscally-responsible manner. This is terday with Federal Reserve Board broad-based tax relief in this substitute common sense. Chairman Alan Greenspan during a so that the American economy and the But we need to look at the big pic- hearing. I talked to him about his ear- American spirit may grow and prosper. ture, and we can’t engage in wishful lier comments about the surplus, the This act of hope will protect our sen- thinking. So when we talk about cut- proposed tax cuts and about the prob- iors, pay down our debt and constitute ting taxes we must do it in the same lems the federal government has show- an investment in our future that will breath as paying down the national ing restraint. pay dividends for decades to come. debt and dealing with Social Security Mr. Greenspan noted that these pro- Mr. REED. Mr. President, I am proud and Medicare. jections are rarely accurate. to join Senator ROCKEFELLER in pro- We should cut government spending. His advice, then, is very simple and posing a prudent, fiscally responsible Working Americans pay taxes to the practical: wait. ‘‘Several years,’’ he tax cut alternative. federal government, and that money said. ‘‘In other words, one year, two Like many, we are skeptical with the buys a lot of great things. But we have years.’’ Chairman Greenspan said he fa- underlying assumption that there will a responsibility and obligation to only vors paying down the public debt—not be nearly a trillion dollar surplus. In- spend what is absolutely necessary, using any surplus for increasing gov- deed, the numbers show that much of and I am afraid that we haven’t done a ernment spending. the surplus is generated under the as- very good job of that. The federal gov- It is hard to wait. This has been a sumption that Congress will signifi- ernment is too big and spends too real struggle. I break with the Presi- cantly slash investments in education, much, and we need to do something dent, with my party and with the Re- veterans, and defense below the level about it. publican party. But I do so because needed to keep pace with inflation. We should pay down the public debt. first and foremost we should not im- Such cuts in key investments are not If we reduce our public debt, we reduce peril our unprecedented economic pros- what the American people want. More- the money the federal government perity by moving too quickly. To put it over, the current majority has already owes to foreign investors and other simply: look before you leap. A huge exceeded last year’s spending limit by bondholders. If we reduce our public tax cut today is like entering the big- $35 billion in the first 10 months of this debt—a debt that has accumulated be- gest watermelon contest the day after fiscal year. cause of out-of-control government an especially good-looking vine sprouts The real surplus from our current spending in years past—it will lower up. economic growth is closer to $112 bil- interest rates, increase investment in I, myself, just don’t have that much lion when one eliminates the unreal- America’s economy, and help ensure confidence that we have a surplus at istic, rosy scenarios painted by the Re- our economy’s continued growth and all or that the economic assumptions publican’s $800 billion tax bill. success. That has real benefits for aver- underlying the surplus projections are Mr. President, our great economic age Americans: lower mortgage inter- reliable. It feels like smoke and mir- growth has presented us with an oppor- est rates and a booming economy. rors—hocus pocus. And when people tunity to do many things. Sensible, This isn’t inside-the-Beltway stuff. waive around numbers like $1 trillion, modest, and targeted tax cuts for This is important to North Carolinians it’s hard not to get swept away. working families is part of that mix and all other Americans. And I think But if we step back and take a look along with domestic investments and all of them can relate to why it is un- at the facts, we get a more frightening Medicare reform. wise to cut taxes before we are certain picture. If government spending is 1 In that spirit of balancing priorities, there is a surplus and before we are on percent higher than projected and reve- I supported the proposal of Sen. MOY- the road to securing the future of So- nues are 1 percent lower than pro- NIHAN to provide $290 billion in tar- cial Security and Medicare. jected, then the so-called $1 trillion geted tax relief, while extending the Look into your crystal ball. How surplus would be off by $170 billion an- life of Medicare and preserving funding much will you be earning in the year nually. for our most pressing domestic needs. 2008? Will your 10-year-old be going to When it comes to government spend- That proposal was realistic and based Duke or UNC, and what will be the tui- ing, the truth is Congress has not been on sound footings. tion? What are you going to pay for able to live within its budgets. Federal But, we should not enact an $800 bil- health insurance during the next 10 spending should be cut, but let’s not be lion tax cut based on mere projections; years? And how much can you put naive: Congress has bad spending hab- which slashes domestic investments; away for retirement? its. and which does nothing to preserve I think these questions are important Current projections are based on as- Medicare. to North Carolinians and all other sumptions about our spending habits Our $112 billion tax cut proposal is Americans. I have been thinking about that everyone admits have been impos- tied to a realistic review of the actual how a family might try to answer these sible to live with. This is a fact. I want unencumbered surplus. This is the questions, and two things come to to remind everyone that this body judgement of many outside experts in- mind. passed a $12 billion ‘‘emergency’’ cluding former Congressional Budget First, answers are extremely difficult spending package—raiding the Social Office Director Robert Reischauer. to find with any degree of certainty. Security Trust Fund—earlier this year. Using this figure we can still provide Unforseen expenses can arise. And I voted against that package because marriage penalty relief, education tax other factors—career changes, interest nearly half of it was spending that no credits, preserve Medicare, and meet rates, or family size—may also affect honest person would consider an the expectations of America’s families. the answers. It seems to me very like- ‘‘emergency.’’ We’ve also been pouring That is why Senators ROCKEFELLER, ly, given this uncertainty, that a fam- money into defense spending—some- LEAHY, and I have put forth this pro- ily would be very cautious about their thing I support—but it’s not within the posal. financial planning. budget we tried to set for the govern- Mr. President, my hope is that our Second, if that family had to make a ment. We can’t stick to our limits now, colleagues on the side of the aisle will decision now about which one of those and yet we are talking about a tax cut

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9913 based on the assumption that we are After a few years we may know a few Clearly a tax is not temporary when going to spend less. This just doesn’t things. it has already been in place for over make sense to me. First, are we keeping spending rea- twenty years. Having noted that we never stay sonably under control? Based on the original purpose, the within the spending caps, let me say Second, have we saved Social Secu- surtax is no longer needed. that we should not give up on them. rity and reformed Medicare? The economy is experiencing the They are important. And, despite our Third, how’s the economy doing? highest level of employment in dec- history of breaking them, they have Fourth, have we paid down some of ades, and all state unemployment acted to keep our spending lower than our national debt? funds have surpluses. it would have been otherwise. This is Our first real test will come this It is inappropriate for the govern- important because we need to make fall—when we will again start the proc- ment to continue to raise excess unem- sure that the federal government ess that will lead to meeting—or break- ployment taxes and then use the sur- doesn’t just spend money because taxing—the spending caps. The federal plus for purposes completely unrelated payers send it to us. We need to con- government needs to prove to the to unemployment. stantly look for ways to cut unneces- American public that it can operate Repeal of the temporary unemploy- sary spending and pressure the federal under its own budgetary limits. If we ment surtax will also be beneficial to government to operate more effi- can do this, if we can break the habit small businesses. ciently. of busting the budget caps, we will The surtax is especially hard on the Even as we propose to dramatically then be able to tell if we do in fact small businesses because they are often cut taxes based on the fantasy that we have a surplus. labor intensive. will control spending and enjoy unprec- I want the American people to know Any payroll tax is added directly to edented economic prosperity, we are this: I am for cutting taxes paid by the employer’s payroll costs. hiding our head in the sand about a working Americans. We’ve got an In fact, according to the National very real and very near fiscal catas- amazingly successful economy right Federation of Independent Business, trophe. In 2012, we will need to pay now. I want to make sure when I cast payroll taxes are the fastest growing more for Medicare than we have. We’ll my vote that I’m voting for something federal tax burden on small business. It is also important to note that the need to dip into a Medicare trust fund. that will ensure, not destroy, the con- payroll taxes must be paid whether the But there is no Medicare trust fund. In tinued growth of our economy. Right business experiences a profit or a loss. 2014, Social Security benefits paid out now, the projections are too specula- As a former small businessman my- will exceed receipts, and we will have tive, the assumptions too unrealistic, self, I am particularly aware of this to start dipping into the trust fund. and to me, the solution is obvious. We should not spend money until we know fact. This tax cut puts the cart before the I suspect that my view is similar to horse. Cut taxes and then try to figure we have it—and when we do have it, we need to give it back to working Ameri- the view of many other small business out how to deal with a looming crisis? owners. No one could call that fiscally respon- cans. Mr. ALLARD. Mr. President, I would It is one thing to have a surtax when sible. like to make some comments regarding unemployment is high and the surtax What if there’s a real emergency? repeal of the ‘‘temporary’’ 0.2 percent is necessary. This bill leaves me worried. Suppose a Federal unemployment tax (FUTA) However, it is totally unjustified Class 5 hurricane were to strike North surtax. when unemployment is at the lowest Carolina sometime in the next few Earlier this year I introduced S. 103 level in three decades. years. If we needed emergency relief, to repeal the surtax. Repeal of the 0.2 percent surtax will this proposal could leave us high and I commend Chairman ROTH and my reduce the tax burden on employers dry—or taking a dip into Social Secu- colleagues on the Finance Committee and workers by $6 billion over the next rity. for including in their tax bill repeal of five years. North Carolinians might be excused the temporary 0.2 percent FUTA sur- Lower payroll taxes mean higher for thinking that the current tax de- tax. wages for workers. bate sounds like hocus pocus. And they I would, however, like to accelerate Although the employer appears to might be excused for wondering wheth- the effective date from 2004 to next fully pay the unemployment surtax er people are making promises they year. and other payroll taxes, the economic can’t keep. This government has made I believe that this tax relief provision evidence is strong that the cost is actu- a great many promises: is very important for both businesses ally passed along to workers in the Putting more money in your pocket; and employees. We should repeal the form of lower wages. Saving Social Security; surtax immediately. Consistent tax relief will help to en- Reserving money for Medicare; The ‘‘temporary’’ surtax was enacted sure that our economy remains the Improving Veterans’ health care; in 1976 by Congress to repay the gen- strongest and most vibrant in the Funding for the National Institute of eral fund of the Treasury for funds bor- world. Health; rowed by the unemployment trust Low taxes reduce unemployment and Putting 100,000 cops on the street; fund. help ensure that future surtaxes are Aiding America’s farmers; Although the borrowings were repaid unnecessary. Funding for programs like Head in 1987, Congress has continued to ex- The time has come to do away with Start; tend the surtax in tax bill after tax this outdated and unnecessary surtax. Maintaining interstate highways; bill. Again, I commend the Finance Com- and Since 1987, Congress has used exten- mittee for their provision to repeal the Supporting National Missile Defense sion of the surtax to help raise revenue FUTA surtax, and I urge my colleagues and other spending to ensure a strong to pay for tax packages. to support efforts to accelerate the ef- national defense. In fact, the surtax was most recently fective date so that repeal is imme- I don’t think we can keep all of these extended to help pay for the 1997 tax diate. promises. And I can’t bring myself to bill. Mr. REED. Mr. President, we are at a bait the American public with a tax The tax takes money out of the pri- historic juncture. In the 1980’s, we cut only to be forced to cut their legs vate economy for no valid reason. faced massive deficits and growing off on Social Security, Medicare and By repealing the surtax, Congress debts. In sum, Congress debated red debt reduction or raise taxes again. will honor a promise that it made when ink. If not now, when? the surtax was first enacted. On the edge of the millennium, we I heard this question asked earlier Small businesses were told repeat- are debating the question of what to do today about tax cuts. My answer is the edly that the tax was temporary and with about $1 trillion in anticipated same as the one Chairman Greenspan would be repealed when it was no budget surpluses. gave at the hearing yesterday—he said longer needed to finance the unemploy- Why are we here debating a surplus? wait a few years. ment tax system. We are here because of the tough

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9914 CONGRESSIONAL RECORD — SENATE July 30, 1999 choice we made in the past: a choice to cannot afford $600 billion in cuts to Unfortunately, Medicare does not cover use fiscal discipline. We started down Pell Grants, Head Start, the Special this expense nor does the COLA for So- the road of deficit reduction with the Supplemental Nutrition Program for cial Security accurately represent the 1993 budget package, which passed Women Infants and Children, medical expenditures of today’s sen- without a single Republican vote. In Brownfield cleanup, Community Polic- iors. fact, some members on the other side ing, Veterans benefits, and the Na- While consideration of these matters of the aisle claimed the bill would lead tional Institutes of Health, to name a should be made in the context of over- to economic collapse. However, because few essential initiatives. Let me em- all structural reform, we must ensure of the courageous stand we took then, phasize that the $600 billion figure is that there are adequate resources to we have gone from a $290 billion deficit not for new, outlandish investments. guarantee a basic benefit package upon in 1992 to an estimated $70 billion sur- Rather, that figure represents the re- which Medicare beneficiaries continue plus in 1999. sources we need to maintain current to rely. But we did more than reduce the def- levels of funding. Make no mistake, Sadly, the Republican tax bill saps icit and restore fiscal discipline, we these are cuts, not ‘‘reductions in the these resources before the debate can spurred tremendous economic growth rate of growth’’, but real cuts. even begin. The massive size of the Re- and unprecedented economic expan- Moreover, if we adopt the Republican publican tax plan threatens to unravel sion. For the sake of perspective, I $800 billion tax cut plan and if we fund the many years of fiscal austerity that would like to list the following facts: the President’s plan to meet the mili- have brought us to this important we have seen 3.5% annual growth since tary’s personnel and equipment needs, juncture. Their unrealistic and dan- 1993, 18.9 million new jobs, 4.3% unem- as the Republican leadership has said it gerous proposal sacrifices the future ployment, and the median family in- will do, non-defense domestic spending for short-term gratification. come grow by more than $3,500 since will be cut by a whopping 38% in 2009. Mr. President, these are good times 1993. This is good news, and we cannot Under this scenario, 375,000 children in our nation. More Americans are em- afford to squander it. will not get Head Start services, 1.4 ployed. More Americans own a home. The days of red ink as far as the eye million veterans will lose medical care, Crime is down. Productivity is up, and can see are gone. Instead, based on var- and 6.5 million poor students will lose inflation is low. ious budget projections, we can suppose Title I education aid. Simply put, the Working families in Rhode Island ex- that there will be a total surplus of ap- $800 billion tax cut before us today pect us to be responsible and prepare proximately $3 trillion over the next crowds out every priority we know for the future. They want us to pre- ten years. More than $2 billion of that must be met in the future. serve Medicare, but the Republicans total comes from Social Security pay- Mr. President, the most serious say ‘‘no’’. They want us to invest in roll taxes and must absolutely be set shortfall of the Republican tax bill is education, but the Republicans say aside to preserve Social Security for that it disposes of the entire surplus ‘‘no’’. They want us to care for our vet- current and future beneficiaries. Social without making any provisions to erans, but the Republicans say ‘‘no’’. Security is a promise to those Ameri- shore up Medicare. By using all of the They want us to address the shameful cans who worked and fought to make projected surplus for tax cuts, we leave fact that 1 out of every 5 children in this nation great, and it is a program ourselves severely restricted in the op- America lives in poverty, but the Re- that must be preserved. tions we will have in the future. publicans say ‘‘no’’. The Office of Management and Budg- Actuarial reports from the Medicare Mr. President, saying ‘‘no’’ to the et and the Congressional Budget Office Trustees project that, under current needs of the American people is not an both project that the remaining non- economic conditions, we will have to acceptable legacy for this Congress. On Social Security surplus totals roughly contend with the inevitable fact that the edge of the Millennium, we should $965 billion. But these are merely pro- the Medicare program will be insolvent not put politics ahead of what is fair jections, dependent upon the perform- by 2015. Regrettably, by allocating the and responsible. Let’s build for the fu- ance and vagaries of the economy. And, entire federal budget surplus for tax ture. I would caution that the Office and cuts, we will be forced to make radical Ms. COLLINS. Mr. President, yester- Management and Budget and the Con- changes to the program, either in the day I offered an amendment to the gressional Budget Office have a history form of dramatic benefit reductions, Taxpayer Refund Act of 1999. My good of predictions that fall far short of the large increases in premiums, or tax in- friend Senator COVERDELL and I crafted mark. Indeed, Mr. President, because of creases. this amendment to help our public changes in the economy between April In addition, the Republican tax cut school teachers pursue professional de- and July of 1999, the Congressional plan completely ignores the impending velopment and pay for incidental sup- Budget Office revised its ten year pro- burdens of a retiring baby boom gen- plies for their classrooms. jections, adding $300 billion to the sur- eration. The truth is that by 2030, there Our amendment will allow teachers plus. Imagine—a swing of $300 billion in will be about 70 million Americans 65 to deduct their professional develop- three months. years or older, more than twice their ment expenses without subjecting the But how are we generating the sur- number in 1996. In terms of the total deduction to the existing two percent plus, or more accurately, why is the population, seniors will grow from 13% floor. It will also allow teachers to de- Congressional Budget Office predicting to 20% between 1999 and 2030. duct up to $125 for books, supplies, and a budget surplus? In spite of these imminent demo- equipment related to their teaching. Quite simply, the vast bulk of the graphic challenges, the Republican tax Mr. President, while our amendment non-Social Security surplus, nearly cut bill is structured in a way that tax provides financial relief for teachers, $600 billion of it, comes from the con- breaks would explode during their sec- its ultimate beneficiaries will be their tinuation of arbitrary spending caps es- ond ten years. As the baby boom gen- students. Other than involved parents, tablished in the 1997 Balanced Budget eration retirements occur, the cost of a well-qualified teacher is the most im- Act. When we passed that legislation, the tax cuts would explode to $2 tril- portant prerequisite for student suc- we still had a deficit, but many of us lion. cess. Educational researchers have realized then that if these budget caps Prudence dictates that we should demonstrated the close relationship be- were maintained beyond the period take the opportunity the surplus pre- tween qualified teachers and successful they were required to balance the sents to make meaningful changes to students. Moreover, teachers them- budget, they would prevent us from the Medicare program. I believe that selves understand how important pro- meeting our long-term obligations for we should be looking at the possibility fessional development is to maintain- education, health care, and the envi- of adding a prescription drug benefit as ing and extending their levels of com- ronment. well as additional preventive benefits petence. When I meet with teachers The American people cannot afford, to the basic package of health care from Maine, they repeatedly tell me of as my colleagues on the other side of benefits. For elderly Rhode Islanders their need for more professional devel- the aisle have asked of them, to retain the cost of prescription drugs is a opment and the scarcity of financial these caps for the next 10 years. We major concern and a major expense. support for this worthy pursuit.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9915 The willingness of Maine’s teachers I’ve looked at both the Senate and The Coverdell-Torricelli amendment to fund their own professional develop- House bills. I think we can come up would give parents greater choice in ment activities has impressed me deep- with a very good conference report how best to educate their children. The ly. For example, an English teacher based on these two bills—a conference issue here is parental choice. Who who serves on my Educational Policy report that preserves the best of both knows best—parents or a distant gov- Advisory Committee told me of spend- bills, and helps improve the lives of all ernment bureau in Washington, DC? In ing her own money to attend a cur- Americans. recent years, the focus has been en- riculum conference. She is typical of We are talking about a tax bill that tirely too much on growing the govern- many teachers who generously reach removes some fundamental unfairness ment and inventing federal programs. into their own pockets to pay for pro- from the current system. But much of that national government fessional development and to purchase For example, it just isn’t fair that is far removed from the year-to-year materials that enhance their teaching. two individuals should be forced to pay and day-to-day decisions that parents Let me explain how our amendment hundreds of dollars more in taxes sim- must make, and work on with teachers works in terms of real dollars. The av- ply because they get married. That’s and school boards, about their chil- erage yearly salary of a teacher in 1997 why the Senate bill ends the marriage dren’s education. was about $38,500. Under current law, a penalty for two earners. I think we This amendment would shift power teacher making this salary could not should go farther, which is why I’ve and resources back to the most local deduct the first $770 in professional de- supported the Gramm amendment and level—Mom and Dad. The Coverdell velopment and incidental instruction- the Hutchison amendment and hope we amendment would allow more flexi- related expenses that he or she paid for can do more in conference. bility—and the use of more of their out of pocket. Our amendment would Mr. President, it just isn’t fair that own money—as they face decisions see to it that teachers receive tax relief working families sometimes have to about paying for things like tutoring, for all such expenses. sell part or all of the family farm or home computers, private or religious I greatly admire the many teachers the family business just to pay taxes. school, higher education, and voca- who have voluntarily financed the ad- I’ve seen family farms carved up be- tional education. The amendment fo- cause of the death tax. The other side ditional education that they need to cuses especially on those who find it would have us believe that this is a de- improve their skills and to serve their hard to pay for educational expenses bate about the so-called ‘‘estates’’ of students better and who purchase now. In talking about public schools, books, supplies, equipment and other rich people. It’s not. Death tax relief is a question of sav- supplies and activity fees are a burden materials that enhance their teaching. ing the family farm; maintaining the on parents today. The Coverdell I hope that this change in our tax code family business; and allowing people amendment would help families deal will encourage teachers to continue to the fundamental freedom to dispose of with those costs. Mr. President, a few months ago, we take formal course work in the subject their own property and their own sav- matter that they teach, to complete ings as they see fit. The death tax im- passed the Ed-Flex bill. This law gives graduate degrees in either their subject poses a double tax, because it con- the state educational agency and the matter or in education, and to attend fiscates property and savings built up local educational agency the flexibility conferences to give them new ideas for from income left over after it’s already in how they spend federal dollars. Now, presenting course work in a chal- been taxed one, two, or three times be- Mr. President, it is time to give par- lenging manner. This amendment will fore. ents similar flexibility in how they reimburse teachers for a small part of But we know where the other side help provide for their children’s edu- what they invest in our children’s fu- and the Administration are coming cation. ture. from. In fact, this Administration’s I hope we can do more to help fami- Mr. President, this would be money former Secretary of Labor, in one of lies with their children’s educational well spent. Investing in education is his books, called it a ‘‘loophole’’ for the needs when this bill goes to conference. the surest way for us to build one of tax code to allow parents actually to I hope we can include provisions that the most important assets for our pass along some of their savings and come much closer to the Coverdell- country’s future, a well-educated popu- possessions to their children. Torricelli amendment. lation. We need to ensure that our pub- I support the relief from the death Besides helping families with the lic schools have the best teachers pos- tax in this bill and wish we could do care and education of their children sible in order to bring out the best in more. That’s why I’ve supported the early in life, this bill also will help pro- our students. Adopting this amend- Kyl amendment. vide care in the twilight of life, ment will help us to accomplish this This tax relief bill is good for chil- through an additional deduction for goal. I thank my colleagues in joining dren. It would allow more parents to providing in-home care for an elderly Senator COVERDELL and me in support afford child care, both because it in- family member. of this effort. creases and expands the child care tax This bill takes a significant step for- Mr. CRAIG. Mr. President, I rise in credit, also called the Dependent Care ward in making health care coverage support of S. 1429, the Taxpayer Refund Credit, and because it allows more more affordable and available for mil- Act of 1999. modest- and middle-income families to lions of Americans. Small businesses This debate has been about numbers make full use of the child tax credit we and farm families, especially, will be and surpluses and budget rules. To enacted in the 1997 Tax Relief Act. It helped by the accelerated, full deduct- some extent, it has to be. But our ef- also would expand the tax exclusion for ibility of health care premiums, as will forts to provide tax relief are also foster care payments. other workers not covered by an em- about something more important: This bill will help make education ployer-provided plan. More Americans People. more affordable and available to indi- would be able to plan for long-term The kind of relief that both the Sen- viduals and families. It includes tax- care, a critical area of growing need, ate and House tax bills would provide free, qualified tuition plans; extends because of an above-the-line deduction is a matter of providing real help to the employer-provided tuition assist- for individuals and inclusion in cafe- real people who have real needs. ance; and makes our 1997 education tax teria plans at work. This tax relief is about returning credits more fully available to modest- America’s farm families are in a pe- some modest amount of liberty, some and middle-income families, by taking riod of economic crisis today. That cri- small measure of power, to the people. it out of the Alternative Minimum Tax sis should be, and will be, addressed in This is the most heavily taxed genera- calculations. a major farmers’ aid package a number tion of Americans in history. Providing We should be doing even more to help of us are working on. But additional, some degree of tax relief will return to families meet their educational needs much-needed help is provided in this individuals and families more power and opportunities. This is why I’ve sup- bill, as well. over their own lives, more ability to ported the Coverdell-Torricelli amend- Besides self-employed health insur- meet their pressing needs, and more of ment to expand and improve Edu- ance and death tax relief, this bill an opportunity to pursue their dreams. cational Savings Accounts. would provide for increased expensing,

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9916 CONGRESSIONAL RECORD — SENATE July 30, 1999 starting next year, to $30,000; create employers they can keep a little more Now, Congress has taken the first the new FARRM Accounts—Farm and of what they earn, if they also provide critical steps needed to save and pre- Ranch Risk Management Accounts— jobs for disadvantaged, hard-to-place serve Social Security for the current that Senators GRASSLEY, BURNS, I, and workers. generation of seniors and those who ex- others have been working on; protect Today, 70 percent of taxpayers re- pect to retire soon. We all agree the income averaging from the Alternative ceive no recognition of charitable giv- next step is to modernize it for future Minimum Tax; increase credits for re- ing—because they don’t itemize their generations. Our budget, and this tax forestation; and allow farmer co-ops deductions. We can, in this bill, reward relief, is perfectly consistent with that more dividend flexibility. and encourage those middle-class tax- commitment. Like farmers, small business, the payers who benefit their community, Most of us agree with the majority of over-taxed engines of job-creation, in- help the less fortunate, and promote the bipartisan Medicare Commission novation, and economic opportunity in the social good, by letting them keep a that we need to shore up that program our economy, will finally receive some little more of their hard-earned in- as well, too. That will involve expand- relief from many of these same provi- come, with an above-the line deduction ing or improving some of what Medi- sions. for charitable donations. care provides, as well as expanding con- The Senate bill makes tremendous We are talking about a modest and sumer choice, increasing market dis- strides in retirement security. Today’s reasonable package of tax relief. Both cipline, curbing waste and abuse, and baby boomers, the first generation to Houses are calling for a tax cut of only finding savings. Unfortunately, the have spent their entire lives in the 3.5 percent over the next 10 years, or necessary super-majority of the com- most heavily-taxed generation, are be- less than one-fourth of the total mission didn’t allow it to turn its ma- coming increasingly anxious about amount taxpayers have been over- jority views into what it could call its their prospects for retirement security. charged by their government. ‘‘official’’ recommendations. But we in Why is no mystery: Since the baby We are proposing a modest amount of Congress stand ready to work with the boomers were children, they have seen tax relief that leaves plenty of room to President on the responsible reforms the average family’s tax burden, at all safeguard Social Security completely. suggested by that commission and oth- levels, increase by more than 50 per- In fact, with the budget we passed ear- ers. cent, as a share of income. When the lier this year, for the first time in his- And this Congress remains com- government takes 50 percent more tory, Congress has committed itself to mitted to reducing the national debt. from you than it did from your par- reserving all of the Social Security Under our budget, and including this ents, how do you save and invest for surplus, and all future Social Security tax bill, we will cut the public debt in your own retirement? revenues, exclusively for future Social half over the next ten years, and re- All taxpayers, of all incomes and all Security benefits. duce the debt by more than $200 billion ages, stand to benefit from expanding Our tax relief is based upon huge over what the President’s budget rec- the use of Individual Retirement Ac- over-collections of taxes from Amer- ommendations called for. counts. In the past, IRAs were a sim- ican workers and taxpayers. In other Still, Mr. President, even as we tack- ple, universally-understood, readily-ac- words, yes, it is based upon projections le all these challenges, we do have the cessible to save for retirement. One of of budget surpluses—surpluses pro- capability of refunding to the hard- the worst things in the 1986 tax bill was jected both by the nonpartisan Con- working American taxpayers a little of the confusing limitations placed on gressional Budget Office and the Presi- what they have been overcharged. IRAs that, in fact, have discouraged dent’s own Office of Management and That’s what this legislation, and this many modest- and middle-income Budget. It is interesting that the same debate, are all about today. workers from using them. Farmers and critics who criticize the idea of basing The choice is simple: More govern- small business owners and their em- tax relief on projections then make up ment and more spending versus letting ployees, especially, have an important their own, speculative projections the people keep a little more of their stake in more accessible IRAs, because about the cuts in future spending pro- hard-earned incomes and a little more they have no other large, employer- grams they claim would result from control over their own lives. provided pension plan to participate in. this tax relief. Mr. President, I vote for this tax re- Mr. President, the tax relief bills In point of fact, we all agree that lief bill because I am casting a vote of moving through Congress will help real Medicare, Veterans programs, edu- confidence for the wisdom of the peo- people. The real debate is over two cation, and other priorities must be ple, and a vote to help by removing competing visions of how the govern- maintained and improved in the future. some of the heavy tax burden they are ment can help people. Those of us who The budget we passed earlier this year bearing. support tax relief say, we help people provides for that, and this tax relief COMMUNITY RENEWAL AND CHARITY when we give them back the power and package doesn’t infringe on them. EMPOWERMENT AMENDMENT freedom to control their own destinies. I remember how, just a few years Mr. SANTORUM. Mr. President, I The other side says, they think it ago, some in Congress, the White rise to discuss one of my amendments, would help people if the government House, and special interest groups No. 1476, offered with Senator ABRAHAM made decisions for them, and dispensed made dire predictions of how spending and Senator DEWINE, to establish re- dependency through an expensive bu- on all kinds of essential programs newal communities and encourage reaucracy. would have to be slashed to balance the charitable giving to those organiza- You can confiscate more and more budget. tions which make a lasting difference money from workers, savers, and fami- Since then, a new Congress came to in the lives of people. lies. That, in fact, has been and is the town in 1995, committed to balancing The amendment creates 100 renewal trend. Then the government can spend the budget and reining in the growth of communities where businesses will that money, grow the bureaucracy, government. have the incentive to stay and locate write more rules, make citizens feel We’ve still had increases in spending, to provide economic opportunity for more like supplicants, and, in the end, but they’ve been more moderate. We do some of the most disadvantaged com- hand someone another small govern- have some high priority programs to munities in America. The amendment ment check. re-evaluate. Some increases are need- also allows states to utilize federal Or we can let workers, savers, entre- ed. In other places, we need more re- block grant funds, if they choose to, in preneurs, and families keep a little straint, and even some cuts. order to offset any revenue loss associ- more of their fruits of their own labors, But a balanced budget and a signifi- ated with offering a targeted state and let them apply that directly to cant surplus have emerged—along with charity tax credit for individual dona- taking care of their children, their par- an economy that is strong because the tions to charities working predomi- ents, their health care needs, and their people who work, save, invest, and cre- nantly to alleviate poverty. education. ate jobs took us seriously when we said Mr. President, I will continue to We can, as this bill does by extending we would balance the budget and limit work with the chairman of the Finance the Work Opportunity Tax Credit, tell the growth of spending. Committee in order to see that these

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9917 critical provisions for expanding oppor- We all know that this surplus exists on I am not opposed to tax cuts when it tunity and transforming lives are in- paper only. It is no more than a prom- is the right time to do so. I believe it cluded in the conference report. The issory note and we don’t know if that is the right time for tax cuts when Renewal Community provisions were note can or will be delivered. there is a real and actual surplus or an included in the House of Representa- Second, these tax cuts are irrespon- incredible recession and we need to tives tax relief package and I look for- sible. With no surplus, we are spending stimulate consumption. It is clear that ward to working with the chairman to money before we have it. We are on a neither of these conditions exists see that these provisions are included collision course between monetary and today. which unleash the power of the private fiscal responsibility. Shouldn’t we We need to get back to basics—to sector and American charitable and combine our monetary and fiscal re- save lives, save communities, and save faith-based resources to renew our sponsibilities to get the country in the America. I urge my colleagues to join commodities. right direction towards growth in the me in rejecting this phony tax cut. Mr. ROTH. I appreciate the com- future? CIAC ments of the Senator from Pennsyl- Third, these tax cuts are callous. We Mr. GRASSLEY. Mr. President, in vania. My staff has been reviewing this are giving money away that we don’t the Small Business Job Protection Act proposal and we will continue working have—when we’ve not even met the of 1996, I had the good fortune of work- with him toward a favorable outcome. compelling needs of our country: We’ve ing with my esteemed colleague, the Mr. SANTORUM. I thank the Sen- not fixed the draconian Medicare cuts senior senator from Nevada, on an ator. I appreciate his continued assist- stemming from the Balanced Budget amendment restoring the exclusion for ance. Act of 1997. We’ve not ensured the long- the receipt of contributions in aid of Mr. ABRAHAM. Mr. President, I also term solvency of Social Security and construction (CIAC) for water and sew- rise in strong support of this legisla- Medicare. We’ve not addressed the age disposal property repealed by the tion creating Renewal Communities. spending caps—which are forcing cruel Tax Reform Act of 1986. These distressed communities will be cuts in critical services for veterans I rise today to voice my concern able to benefit from lower taxes, regu- health, and children’s education, and about the possible direction of the De- latory relief, and brownfields clean-up which are crippling scientific research. partment of the Treasury’s regulations while committing to lowering barriers The Medicare cuts in the Balanced interpreting the definition of CIAC to economic opportunity. The Presi- Budget Act of 1997 have already caused under Internal Revenue Code section dent of the United States has voiced 34 Home Health agencies in my state to 118(b). Specifically, I am troubled by an his support for helping these commu- close—only two public Home Health effort to narrow the definition to ex- nities. The House of Representatives Agencies remain in Maryland. Mary- clude service laterals. has already passed this legislation. land is also facing a managed care cri- The Senator from Nevada and I, Moreover, our amendment also pro- sis. Because of Balanced Budget Act of along with many of our colleagues here vides states the option to leverage fed- 1997, 18,000 people in Maryland will lose in the Chamber worked hard over the eral dollars to transform lives and access to supplemental benefits such as course of a number of years to restore communities to the extent that indi- prescription drug coverage and preven- the pre-1986 Act exclusion for the re- viduals are motivated to contribute to tive health benefits. ceipt of CIACs for water and sewage. As charitable organizations walking along Republicans may say that a tax cut part of our efforts, we developed a rev- side those in need. will allow these senior citizens to use enue raiser in cooperation with the in- Mr. ROTH. I thank the Senator from the money from a tax cut to buy sup- dustry to make up any revenue loss Michigan for his comments and look plemental coverage, such as Medi-Gap due to our legislation. This revenue forward to working with him. and that they are returning ‘‘choice’’ raiser extended the life, and changed Mr. ABRAHAM. I thank the Senator. and ‘‘freedom’’ to the American people. the method, for depreciating water Mr. ASHCROFT. Mr. President, I join But what about the forty-percent of utility property from 20 year acceler- the Senator from Pennsylvania and the Medicare beneficiaries who do not even ated to 25 year straight line deprecia- Senator from Michigan and rise in sup- submit tax returns because their in- tion. As a consequence of this coopera- port of the American community re- comes are so low. Those people will not tion with the industry, our CIAC newal and charity empowerment see a dime of the tax out. They will change made a net $274 million con- amendment. I would also encourage the still not have any way to afford pre- tribution toward deficit reduction. Chairman to include these essential scription drugs like heart medication In addition to these efforts, we made provisions in the conference report. or insulin for diabetes, because their a number of changes to the pre-1986 The legislation will also provide in- HMO left town. language. The most important of these creased flexibility for states that Spending caps will threaten our abil- was a change to clarify that service choose to offer targeted charity tax ity to meet compelling human needs; laterals should be included in the defi- credits. This principle is consistent to maintain the national security of nition of CIAC. with the growing support for expansion the United States; and to stay the These lines typically run from a larg- of charitable choice and recognizes course on research and development. er water distribution line to the prop- that empowering faith-based and other Because of the spending caps, vet- erty line of one or more customers. The charities is an essential next step in erans of this nation are facing a 10% utility is responsible for all mainte- welfare reform. cut in health care. nance and liability associated with Mr. ROTH. I thank the Senator from Because of the spending caps, our service laterals. Additionally, state Missouri and appreciate the commit- members of the military will continue public utility commissions treat con- ment of the Senators who have spoken to be forced to shop in consignment tributions for service laterals (or any to these important issues. shops and use food stamps because they other capital component of the water Ms. MIKULSKI. Mr. President, I rise are not making enough money. Mr. supply system) as a CIAC and, there- today to oppose what the Republicans President, we cannot have a second- fore, do not allow a utility company to are calling a tax cut. This so-called tax hand military. These are people who include them in its rate base. cut is a gimmick to get attention, to put their lives on the line to protect It is important to distinguish that get votes, but not to get America what our nation. They should not have to service laterals are not fees charged to it needs. use food stamps to feed their families customers for the right to start and The Republicans are trying to pander and shop in second-hand stores for stop service. Such fees would be treat- to every interest group in America and clothing. ed as taxable income. However, as ele- give them a tax break. And who doesn’t Because of the spending caps, our ments of utility plant, the service want a tax break? continued technological advancement laterals should be treated as CIAC. I oppose these tax cuts for three rea- will be jeopardized. America must Additionally, it is my sense that the sons. First, these tax cuts are pre- maintain its competitive edge if we are final revenue estimate done by the mature. They are based on a projected to maintain our leadership in science Joint Committee on Taxation on the surplus of funds that we do not have. and technology. restoration of CIAC included service

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9918 CONGRESSIONAL RECORD — SENATE July 30, 1999 laterals. In an October 11, 1995 letter to make large and drastic spending cuts, ance we have worked so hard to me the Joint Committee on Taxation which is notoriously nonexistent. achieve, and pay down the national provided revenue estimates for the Over the next 5 years, the smallest debt. CIAC legislation. A footnote in this let- changes in the economy could lead the Mr. President, for all these reasons, I ter states, ‘‘These estimates have been $1 trillion surplus estimate to be off by hope, when we finally get serious about revisited to reflect more recent data.’’ as much as $250 billion. writing a tax bill later this year, we The industry had only recently sup- And, who among us believes that will seriously consider the Moynihan plied the committee with comprehen- Congress and the President have the alternative. It is balanced, responsible sive data, which reflected total CIAC in ability, or the desire, to cut programs and fiscally prudent. It will help us ex- the industry including service laterals. like education, agriculture, and bio- pand opportunities and make life bet- It is my sincere hope that the De- medical research by the approximately ter and easier for more Americans and partment of the Treasury drafts the 50% required? In fact, already this year their families. And we should reject the regulations on this important matter we have increased spending by $35 bil- Roth proposal. It turns the clock back clearly reflecting the intent of Con- lion with more added every day. Fur- to the failed budget policies of the gress to include service laterals in the thermore, members of Congress from past, while providing too much benefit definition of CIAC. both sides of the aisle admit there is no for too few Americans at too great a Mr. REID. Mr. President, I, too, way we will finish our annual appro- cost. stand to express my concern over the priations bill without yet another, end- Mr. GORTON. Mr. President, the possible direction of the Treasury regu- of-the-year cash infusion. question now being considered by the lations. The Senator from Iowa and I The surplus is not a sure thing, and Senate is whether we should refund a worked long and hard to fix this prob- basing an $800 billion tax cut on it is a portion of the federal government sur- lem in 1996. We worked with the var- long-shot gamble. It was wrong, during plus to American families. ious staffs here in Congress and at the the years of deficit spending, to take Over the next ten years, the federal Department of the Treasury to ensure money from future generations and government will collect $996 billion that all contributions in aid of con- spend it on ourselves. It is equally more in income and other taxes than is struction as regulated by the various wrong today to bet the money of future necessary to pay fully for every exist- state utility commissions were in- generations on shaky economic projec- ing federal program, agency and de- cluded under our legislation. We tions and the surreal expectation that partment. This means that the IRS worked with the industry to develop a Congress will suddenly—for the first will be taking almost $1 trillion more revenue raiser paid for by companies time—decide to make tough cuts in in taxes from the American people’s receiving relief in our legislation. I government spending. paychecks than it needs to operate the urge the Department to stick closely None of this is to suggest that our government. This is a tax surplus—a with the congressional intent of our budget is as bad as it was ten years tax overpayment. amendment and look forward to work- ago—it is just not as good as the Roth This tax relief debate, serious as it is, ing with my colleague to ensure that proposal assumes. Our nation is cur- concerns only the non-Social Security we reach the correct result on this rently enjoying record unemployment, surplus. Both sides agree that the So- issue. falling welfare rolls, and increased cial Security surplus itself is to be re- Mr. KOHL. Mr. President, I rise in prosperity for more Americans than at served for Social Security recipients opposition to the Roth tax bill and to any time in history. We can and should only, and not be diverted to any other express disappointment that Senator use this opportunity to fix oversights purpose. MOYNIHAN’s alternative did not pass and inequities in our tax code. Working There is, however, an important dis- the Senate. The Moynihan amendment Americans have driven this economy, tinction between the two parties even would have provided real tax relief to and they deserve to share in it—they on Social Security. Republicans, my- those Americans who need it most, deserve a tax code that helps them self included, believe that we should maintained the balanced budget that send their children to college, that pass a ‘‘lockbox’’ law, giving the we fought so hard to achieve, and eases the burden of paying for long- strongest possible statutory protection strengthened the Social Security and term care, that encourages marriage, to that Social Security surplus. Demo- Medicare programs for generations to saving and high quality child care. crats have consistently filibustered our come. Simply put, in times of economic pros- proposal, asking Americans simply to Senator MOYNIHAN’s amendment perity, we have the chance—and the trust them not to raid the Social Secu- would have reduced the unprecedented obligation—to expand the pool of win- rity surplus in the future as they have $800 billion, ten year tax cut to a more ners in our economy. in the past. That is not enough. reasonable $295 billion. The Moynihan And there are definitely some provi- The difference between the parties on proposal pays a fair dividend, fairly sions in the Roth proposal that do just taxes is even more striking. Repub- distributed, to the working families that. Both Senator ROTH’s bill and the licans believe that the lion’s share of that have fueled the current economic Moynihan amendment contain a the non-Social Security surplus ought recovery. The Roth proposal breaks the version of my Child Care Tax Credit to to be returned to the American tax- bank with tax breaks for those who encourage employers to get involved in payer whose taxes created that surplus; don’t need them, and benefit cuts to increasing the supply of quality child Democrats want to spend that surplus those who have already suffered them. care. Both bills also contain my Farm- on new and expanded government pro- The Moynihan proposal takes a con- er Tax Fairness Act to allow farmers to grams. servative, cautious estimate of the realize the benefits of income aver- I am convinced that this tax overpay- American economic pie and divides it aging. And both bills provide for edu- ment should be refunded to the Amer- evenly. The Roth proposal uses ‘‘pie in cation tax relief, marriage penalty re- ican people who worked for and earned the sky’’ surplus estimates to justify lief, full health insurance deduction for it. It is their money and it should be huge tax breaks for a very small seg- the self-employed, tax relief to cover returned to them to invest and spend ment of society. the costs of long-term care, and the ex- as they deem best for their families The proponents of $800 billion worth tension of tax credits that are vital to and their futures. The alternative to of tax relief would have us believe that our economic health. refunding the tax surplus to taxpayers a $1 trillion surplus is as reliable and But despite any common elements, is to leave the money in Washington, inevitable as the sun coming up in the on almost every point, the Moynihan DC where it will be spent to create $1 morning. But as my colleagues know, alternative not only does a better job trillion in new government programs. this projection is based on the most op- of containing the overall cost of tax re- The President and his supporters in timistic and unrealistic assumptions— lief, it also focuses that relief on those Congress are making outrageous assumptions about the precise direc- taxpayers most in need of help. It is a claims that giving a refund to tax- tion of the economy, which is notori- conservative package that leaves plen- payers is risky or even dangerous. ously hard to predict, and assumptions ty of room to preserve Social Security They say that somehow returning a about the willingness of Congress to and Medicare, preserve the fiscal bal- portion of the government surplus to

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9919 American families will somehow en- with one that is much simpler and easi- them, and they deserve it in a manner danger the very livelihoods of women er to understand. We need to focus our that doesn’t make filling out their IRS and children. On that point, I would energy and attention in Congress on return by April 15th even more of an ask every American citizen to chal- developing an alternative. I will sup- exasperating experience. lenge the President and his Democratic port a replacement code that is based For now, I will continue to push for a allies to back up with facts their politi- on four principles: the new code must debate that reforms our tax code. In cally-charged claims. be fair, simple, uniform and consistent. the meantime, I am committed to This latest shameless charade by the Americans deserve a tax code they can pushing onward with the principles President is absolutely outrageous. understand and predict. that guide this debate: Should a por- The inference propounded by President A vast majority of the American peo- tion of the government surplus be re- Clinton is that those of us in this ple and those in Congress support refunded to American families, or should Chamber who support a tax refund are forming our tax code. I hope that when the rest of the non-Social Security and out to harm women and children, and Congress takes action to ease the cost Medicare surplus be left in Washington, that those who oppose such a refund burden of the federal tax code, the op- D.C. for increased spending on govern- care more about women and children portunity to simplify or reduce the ment programs? than we do. That’s an absolute outrage, complexity of the tax code will be On that question, the answer is easy and I’m truly sorry to see that the seized. I do not pretend to believe there . . . give American families a tax re- President of the United States will is consensus on how to reform the code fund. That requires a yes vote, though stoop to such low levels in order to completely at this time, but at the with serious reservations. keep this money here in Washington, very least Congress should pass a tax CAPTIAL GAINS EXCLUSION D.C. so that he can spend it on new bill that does not make the code even Mr. DORGAN. Mr. President, I rise to government programs. more of a bewildering mess than it is enter into a colloquy with the chair- I will resist the temptation to join today. man of the Finance Committee, Sen- the President in his game of scare tac- Unfortunately, the bill reported out ator ROTH, about a tax issue that is im- tics, but I will take this opportunity to of the Finance Committee does not portant to farm families across the challenge all Americans to ask them- achieve the goals of either simplifying country. selves this question when they hear the code, or even to do no further The Senate is on record in this year’s these ridiculous charges: how will harm. The bill contains 15 titles, 19 budget resolution as supporting legisla- women and children, or anyone else for subtitles and 163 various sections to tion to end the disparity between fam- that matter, possibly be hurt by the total over 400 pages in length. It takes ily farmers and their urban and subur- government giving them back some of a report of an additional almost 300 ban counterparts with respect to the the money they overpaid to Wash- pages to explain what the bill even $500,000 capital gains inclusion for ington, D.C.? does. Yes, the bill does refund nearly homes sales that Congress passed in To further illustrate the weakness of $800 billion in unneeded tax dollars 1997 by expanding it to cover capital the President’s argument, I’d like ev- back to the American people, but at gains from the sale of farmland along eryone watching this on C–Span back what price? Adding more pages to the with the farmhouse. Under current law, home to take three dollars out of his or tax code? Making the code more com- farmers receive little or no benefit her purse or wallet. Now imagine that plicated? Further confusing taxpayers from the existing capital gains exclu- each dollar bill is worth a trillion dol- as they struggle to fill out their tax re- sion because farm homes away from lars. That’s the surplus—the people’s turns? town often hold little or no value. tax overpayment. That’s the amount What is most unfortunate is that a It is my understanding that the that Americans have overpaid the gov- tax relief bill need not be so complex. chairman is supportive of the effort to ernment in personal income and other It is certainly possible to refund the end this tax inequity and will work to taxes. tax surplus simply and directly. An al- include this family farmers capital We Republicans want to put two of ternative was proposed during com- gains fairness proposal in conference these dollars aside to protect Social mittee consideration by Senator should the final tax bill include other Security and Medicare and other essen- GRAMM that accomplished the goal of capital gains tax relief. tial programs, and to cut the national simple tax relief by including just four Mr. ROTH. I understand the Sen- debt in half. elements: broad-based income tax rate ator’s concerns. In the context of cap- The debate with the Democrats is relief, repeal of death taxes, elimi- ital gains, I believe the needs of farm- over what to do with the third dollar. nation of the marriage penalty, and ers should be considered as we develop Republicans want to give it back to the full deductibility for health insurance future legislation. In the conference, taxpayers who earned it. Democrats for all Americans. I voted for that al- we will certainly be discussing capital want to spend it on new programs and ternative in the Senate. gains. And we will consider the special bureaucracies. It’s as simple and clear While I may not fully endorse every needs of farmers in this area. as that. aspect of this specific proposal, I Mr. CAMPBELL. Mr. President. The surplus is generated from per- strongly and enthusiastically support Today I express my support for S. 1429, sonal income and other taxes, it be- its intent to refund the taxpayers’ The Taxpayer Refund Act of 1999. This longs to the American people. It’s not money in a manner that simplifies and is a sound bill based on real need and I the government’s money—it’s your corrects injustices in the current tax believe the American taxpayers de- money . . . you sent it here. code. We should get rid of death taxes, serve and want this legislation. Shouldn’t you get some of it back? stop penalizing married couples The Taxpayer Refund Act of 1999 goes While I strongly support refunding through the tax code, allow self-em- a long way to relieve taxpayers of an the tax surplus to the taxpaying fami- ployed and individual Americans to unfair tax burden. This bill provides: lies and hardworking individuals all fully deduct their health insurance broad-based tax relief; family tax relief across this country, it is my sincere costs just as corporations can, and we by addressing the Marriage Penalty hope that Congress will ultimately should permanently extend the R&D Tax; retirement savings and education pass a bill that reduces the tax burden tax credit so that our increasingly incentives; health care tax reductions; on Washington state families while technology driven economy can con- small business tax relief; international moving towards simplification of the tinue to grow and create jobs. tax reform, and death and gift tax re- federal tax code. I cannot, though, happily endorse a lief, among other provisions. Fundamental reform of the tax code tax relief package that moves toward I am particularly interested in the is my number one tax priority. I am a such reform only to get lost in a 443- estate tax relief because earlier this strong, committed advocate for the page swamp of countless new provi- year I introduced the Estate and Gift elimination of our current federal tax sions and rules. The citizens of Wash- Tax Rate Reduction Act of 1999, (S. 38). system. It is too complicated, too bur- ington state and the taxpayers of this Estate and gift taxes remain a burden densome, too unfair. The current sys- nation deserve to have a significant on American families, particularly tem should be scrapped and replaced portion of the tax surplus returned to those who pursue the American dream

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9920 CONGRESSIONAL RECORD — SENATE July 30, 1999 of owning their own business. This is the Reagan administration and I think study also demonstrates how this tax under- because family-owned businesses and it’s high time the hard-working tax- mines family-owned businesses and farms—a farms are hit with the highest tax rate payer get this refund. segment of our economy responsible for 2 when they are handed down to descend- I ask unanimous consent to have per- about ⁄3 of new job creation since the early ants—often immediately following the 1970s. Clearly, the time for eliminating the tinent information printed in the estate tax has arrived. death of a loved one. These taxes, and RECORD. My bill would gradually eliminate this tax the financial burdens and difficulties There being no objection, the mate- completely, by reducing the tax five percent they create come at the worst possible rial was ordered to be printed in the each year, until the highest rate reaches time. Making a terrible situation worse RECORD, as follows: zero. Although the $23 billion received from this tax last year represents only a tiny per- is the fact that the rate of this estate CONGRESS OF THE UNITED STATES, centage of overall IRS receipts, eliminating tax is crushing, reaching as high as 55 JOINT COMMITTEE ON TAXATION, percent for the highest bracket. That’s Washington, DC, March 5, 1999. it requires a gradual approach. A gradual reduction over ten years is wise as we struggle higher than even the highest income Senator BEN NIGHTHORSE CAMPBELL, U.S. Senate, to maintain our commitment to balance the tax rate bracket of 39 percent. budget and prune the federal government. A Furthermore, the tax is due as soon Washington, DC. DEAR SENATOR CAMPBELL: This is in re- gradual approach minimizes possible disloca- as the business is turned over to the tions. heir, allowing no time for financial sponse to your request dated February 24, 1999, for a revenue estimate of your bill, S. Several states have already taken a simi- planning or the setting aside of money 38, ‘‘The Estate and Gift Tax Rate Reduction lar initiative and phased out their state to pay the tax bills. Estate and gift Act.’’ Briefly, this bill would reduce the stat- taxes on their own. I think it’s time we fol- taxes right now are one of the leading utory estate and gift tax rates contained in low their example and eliminate this federal reasons why the number of family- section 2010 of the Internal Revenue Code of tax. My bill last year was endorsed by the owned farms and businesses are declin- 1986 (the ‘‘Code’’) each year by subtracting 5 American Farm Bureau, the Family Business Estate Tax Coalition, the U.S. Chamber of ing; the burden of this tax is just too percent from each rate in each rate bracket contained therein. In addition, your bill Commerce, and other interested groups. much. Should you wish to be an original cospon- would also reduce the credit for State death This tax sends the troubling message sor of this bill when I reintroduce it, or if taxes contained in section 2011 of the Code that families should either sell the you have any questions about this bill, by subtracting each year 1.5 percent from business while they are still alive, in please contact me, or have your staff contact each rate in each rate bracket contained Amy Amato of my staff at 224–5852. I look order to spare their descendants this therein. As the result of these reductions in forward to working with you. huge tax after their passing, or run- the statutory estate and gift tax rates, Sub- Sincerely, down the value of the business, so that title B of the Code pertaining to estate, gift, BEN NIGHTHORSE CAMPBELL, it won’t make it into their higher tax and generation-skipping transfer taxes will U.S. Senator. brackets. Whichever the case may be, effectively be repealed for decedents dying and gifts made after December 31, 2009. it hardly seems to encourage private UNITED STATES SENATE, Assuming that your bill would take effect investment and initiative, which have Washington, DC, April 22, 1999. for decedents dying and gifts made after De- always been such a strong part of our DEAR COLLEAGUE: We are writing to re- cember 31, 1999, we estimate that this pro- American heritage. quest your cosponsorship of S. 38, the Estate posal would decrease Federal fiscal year and Gift Tax Rate Reduction Act of 1999. I am pleased that the bill before us budget receipts as follows: takes the important step to address This bill takes a fresh and prudent approach [In billions of dollars] this unfair burden. I will continue to to reducing the burden of estate and gift taxes by phasing out gift and estate taxes work with my colleagues for the com- Fiscal years: 2000 ...... completely over a ten year period. plete elimination of the death tax. 2001 ...... ¥4.1 In December, the Joint Economic Com- I have heard the argument that this 2002 ...... ¥8.4 mittee released its study entitled, ‘‘The Eco- tax cut will threaten Social Security, 2003 ...... ¥13.4 nomics of the Estate Tax.’’ This thorough but that’s just not true. In fact, this 2004 ...... ¥18.1 analysis concluded that ‘‘the estate tax gen- bill saves every penny of the money set 2005 ...... ¥22.1 erates costs to taxpayers, the economy and aside for Social Security. Social Secu- 2006 ...... ¥26.3 the environment that far exceed any poten- ¥ rity is safe and secure with this bill. 2007 ...... 30.8 tial benefits that it might arguably 2008 ...... ¥35.1 This bill also leaves $277 billion to fi- produce.’’ The study shows persuasively that 2009 ...... ¥39.5 this unfair and Byzantine tax retards eco- nance Medicare, emergencies or other nomic growth, and squelches entrepreneurial ¥ priorities, so this bill does not threaten Total ...... 197.8 initiative. The study also demonstrates how Medicare or Medicare beneficiaries. In I hope this information is helpful to you. this tax undermines family-owned businesses contrast, the administration’s budget Please let me know if we can be of further and farms—a segment of our economy re- would increase spending by $1 trillion assistance in this matter. sponsible for about 2⁄3 of new job creation and increase taxes by $100 billion over Sincerely, since the early 1970s. In fact, in large part the next 10 years according to the Con- LINDY L. PAUL. due to this tax, only 30% of family-owned gressional Budget Office. How can this businesses survive through the second gen- UNITED STATES SENATE, administration believe that they can eration and only 13% survive through the Washington, DC, December 11, 1998. third. Clearly, the time for eliminating the increase spending and taxes even DEAR COLLEAGUE: As we prepare to con- estate tax has arrived. though they already admitted raising vene the 106th Congress, I am writing to seek S. 38 would gradually eliminate this tax taxes too much? I think since we now your co-sponsorship of legislation that would completely, by reducing the tax five percent have a balanced budget, then the eliminate the burden of the death taxes. On each year, until the highest rate reaches American people deserve this tax cut. July 16, 1998, I introduced S. 2318, a bill that zero. Although the $23 billion received from The American people have earned this took a fresh and prudent approach to reduc- this tax last year represents only a tiny per- tax cut, this is their money and I think ing the burden of estate and gift taxes. This centage of overall IRS receipts, eliminating important bill, which I plan on re-intro- it requires a gradual approach to minimize we should give it back to them. ducing as soon as we reconvene, would I know that $792 billion is a lot of possible dislocations. A gradual reduction amend the Internal Revenue Service Code of over ten years is prudent as we struggle to money, but we have a $3 trillion sur- 1986 to phase out gift and estate taxes com- maintain our commitment to balance the plus and one reason we have a $3 tril- pletely over a ten year period. A copy of S. budget and prune the federal government. lion surplus is the taxpayers got their 2318 is enclosed for your convenience. Several states have already taken a simi- taxes raised too much. I realize that we Just this month, the Joint Economic Com- lar initiative and phased out their state es- could just go ahead and spend that mittee released its study entitled, ‘‘The Eco- tate taxes on their own. It’s time we follow extra money like the administration nomics of the Estate Tax.’’ This thorough their example and eliminate this federal tax. wants to do, but I think that would be analysis concluded that ‘‘the estate tax gen- Eliminating the tax has widespread support. irresponsible. I think if the American erates costs to taxpayers, the economy and In fact, 60% of business owners report that the environment that far exceed any poten- they would increase investment and add people overpaid, then the American tial benefits that it might arguably more jobs if this tax were eliminated. That people should get their money back— produce.’’ The study shows persuasively that kind of positive effect on the American econ- that’s just fair. this unfair and byzantine tax restricts eco- omy is tremendous. This bill has the en- The Taxpayer Refund Act of 1999 is nomic growth and squelches entrepreneurial dorsement of the American Farm Bureau, the largest middle-class tax relief since initiative. Of special importance to me, the the Family Business Estate Tax Coalition,

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9921 the U.S. Chamber of Commerce, the National fallen by record numbers, as reasons tainty, particularly in the bakery in- Federation of Business, and over 100 other why this money is not needed by states dustry. interested organizations. The time to elimi- and remains unobligated. I have prepared an amendment to nate this tax has clearly come. However, many states are relying Should you wish to be a cosponsor of this clarify that an investment in facilities bill, or if you have any questions about this heavily on these unobligated funds and can include a substantial investment in bill, please contact us, or have your staff have already committed them for a a distribution route, area, or territory. contact Amy Amato of Senator Campbell’s wide variety of uses. States need to dis- Thus, an independent-contractor truck staff at 224–5852 or Kolan Davis of Senator tribute some of this funding to coun- driver who has a substantial invest- Grassley’s staff at 224–3744. We look forward ties and local agencies, or to child care ment in a distribution route or terri- to working with you. and social services activities. Gov- tory will not be treated as a statutory Sincerely, ernors are keeping ‘‘rainy day’’ funds employee for FICA and FUTA tax pur- BEN NIGHTHORSE CAMPBELL, for contingencies such as recessions or poses. U.S. Senator. periods of stagnant growth—as we have Unfortunately, I am prevented from CHARLES GRASSLEY, now in my State of Hawaii—that force offering my amendment to this tax rec- U.S. Senator. families back onto welfare and leave onciliation bill because it affects the Mr. AKAKA. Mr. President, I rise, states without enough money until the Social Security program. Under Sec- while we are debating the budget rec- next quarterly federal payment. States tion 310(g) of the Budget Act, the adop- onciliation bill, to talk about an im- are also planning to use this money for tion of my amendment would cause the portant family issue that I raised dur- fundamental or new, innovative ex- entire bill to be subject to a 60-vote ing debate on the emergency supple- penses to help poor families become fi- point of order. mental bill in March. I want to voice nancially independent. Therefore, I will not offer my amend- my strong opposition to efforts by In July 23, the National Governors ment to this bill. However, I ask my Members in the other body to use $6 Association wrote to Congressmen colleague from Delaware, Senator billion in unspent welfare and health JOHN PORTER and DAVID OBEY of the ROTH, if he would work with me to con- care funds, intended for low-income House Appropriations Committee, to sider this amendment on the next non- children and their families, as a gim- plead their case. This letter is signed reconciliation tax measure considered mick to overcome their problem with by Governors Thomas R. Carper of by the Senate Finance Committee. this year’s low budget caps. Delaware and Michael O. Leavitt of Mr. ROTH. I thank the Senator from Mr. President, I am referring to at- Utah, one Democrat and one Repub- Oklahoma for his comments on this tempts to rescind $6 billion in unobli- lican. The letter states, ‘‘Cutting fund- issue. The budget reconciliation proce- gated Temporary Assistance for Needy ing for vital health and human services dures do prevent the consideration of Families, or TANF money, and unobli- programs such as Medicaid, CHIP, some amendments such as the one de- gated Medicaid or Children’s Health In- TANF, and child support would ad- scribed by the Senator from Oklahoma. surance Plan funds. I learned of this versely affect millions of Americans— I look forward to working with the proposal after reading the July 28, 1999, with the greatest impact on children Senator from Oklahoma on this impor- New York Times, in which appeared a and the elderly in the greatest need. tant issue on the next non-reconcili- story entitled, ‘‘Leaders in House We reiterate our adamant and uniform ation tax bill. Covet States’ Unspent Welfare Money.’’ opposition to these unprecedented cuts TAX RULES FOR CONSOLIDATION OF LIFE Why do they want to do this? To help and to any proposal that would result INSURANCE COMPENSATION fund the $792 billion tax cut proposal in such drastic cuts to our most vul- Mr. COVERDELL. Mr. President, let that the other body passed last week— nerable citizens.’’ me ask the Chairman. As I understand a proposal that would mostly help the I concur with the Governors’ senti- it, the tax rules regarding the taxation wealthy in our nation. Any such action ments about these valuable programs. of life insurance companies have would be a repudiation of our promise Mr. President, I do this especially be- changed substantially over the past to help families living in poverty. It is cause the monies in question were years. As a vestige of these old tax a classic situation of reverse Robin originally designated to help our poor- rules, however, there are certain limi- Hood: robbing the poor to give more to est children and their families. Instead, tations on when life insurance compa- the rich. they would, over the next 10 years, go nies can file consolidated tax returns Mr. President, during debate on the toward such things as estate tax relief with non-life companies. welfare reform bill in 1996, states and capital gains tax relief—tax bene- Mr. ROTH. Yes, I agree. agreed to trade entitlement status fits for the wealthiest taxpayers in the Mr. SHELBY. I also want to note under the Aid to Families with Depend- Nation. that in the Senator’s tax bill and in the ent Children program for the assurance Tax relief can be a good thing. How- House tax bill, some of these restric- of a fixed, annual amount in the form ever, it should not be the top priority tions on life insurance consolidation of a block grant. Those of us who op- when we face the urgent need to pay have been addressed. posed the welfare bill for this and other down our country’s debt and save So- Mr. ROTH. Yes, that is true. reasons warned that it would be harder cial Security and Medicare. I hope my Mr. SHELBY. I ask that the Chair- under a block grant to keep welfare colleagues agree with me on an issue man keep in mind the further rational- funds from being cut. Now, certain that is important to many poor Ameri- ization of these restrictions as this bill members are turning our fears into re- cans. I hope funding is not taken out of heads into conference and in future ac- ality. The cuts in this former entitle- TANF, Medicaid or CHIP, as a solution tion in the Committee. ment program have begun. Cutting to low budget caps. Mr. ROTH. I will keep in mind the funds in this manner, Mr. President, INDEPENDENT BAKERY DRIVERS concerns of both Senators in this im- would represent a betrayal of our Mr. NICKLES. Mr. President, I have portant issue. promise to protect America’s poor fam- been working for several years to clar- BRINGING COMPUTERS TO THE CLASSROOM ilies. ify a provision of the tax code which Mr. DASCHLE. Mr. President, as a Again, as I explained in March, the treats certain truck drivers as ‘‘statu- cosponsor of the New Millennium term, ‘‘unobligated,’’ may seem self-ex- tory employees,’’ meaning they are Classrooms Act, introduced by Sen- planatory—that these are simply funds independent contractors except for ators ABRAHAM and WYDEN, I am very that have not been spent under TANF, payroll tax purposes. pleased the Senate adopted this provi- Medicaid, or CHIP. Under TANF, ac- Prior to 1991, these individuals could sion to encourage computer donations cording to the U.S. Department of pay their own payroll taxes if they had to schools. While I oppose the under- Health and Human Services, a com- a substantial investment in a distribu- lying bill, and believe the magnitude of bined total of $4.2 billion from fiscal tion route. However, a 1991 IRS ruling the Republican tax cut is irresponsible, years 1997, 1998 and 1999 is available. said that an investment in a distribu- I do support a more reasonable level of Some would point out that many poor tion route no longer qualified as an in- tax relief with provisions targeted to families have worked their way to self- vestment in ‘‘facilities.’’ This reversal address national needs. This provision, sufficiency and that welfare rolls have by the IRS has created much uncer- which has strong bipartisan support,

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9922 CONGRESSIONAL RECORD — SENATE July 30, 1999 meets that test. I would also like to nology effectively in their classes. But they simply need to gain some basic point out that Senator BAUCUS spon- many schools have a fundamental prob- computer skills. sored a similar provision that was part lem in obtaining suitable hardware. While it is important for all Ameri- of the Democratic alternative consid- Current law provides an enhanced de- cans to have equal access to informa- ered earlier. duction for corporate donations to tion technology, the most pressing Technology is playing an increas- schools until December 31, 2000. Unfor- need is in our schools. The Department ingly important role in our society, in tunately, few corporations are taking of Commerce recently published a re- homes, in businesses, and in many as- advantage of the enhanced deduction port, ‘‘Falling Through the Net: Defin- pects of everyday life. Employers will for two main reasons: the requirement ing the Digital Divide.’’ It shows that require increasingly sophisticated lev- that donated equipment be 2 years old the rapid build-out of the information els of technological literacy in the or less does not fit companies’ equip- superhighway has by-passed many in workplace of the 21st Century. Edu- ment use cycles, and the deduction rural and in less-advantaged urban cation Secretary Riley has pointed out does not provide a sufficient incentive. communities. The report says factors that we can expect 70 percent growth Modifying the tax code to address these such as race, income and area of resi- in computer and technology-related limitations, as the Abraham-Wyden dence help limit access to information jobs in the next 6 years. amendment proposes, will help us technology. For example, the study Yet, a recent U.S. Department of achieve the goal of putting a computer found that households earning more Commerce report, ‘‘Falling Through in every classroom and create ongoing than $75,000 are five times more likely the Net: Defining the Digital Divide,’’ incentives to make sure the technology to own computers than those earning finds there is a growing disparity in is kept reasonably up-to-date. less than $10,000. Households earning terms of who has access to technology. The Rand Institute has estimated the more than $75,000 are seven times more While more Americans are embracing cost of providing our schools with ap- likely to use the Internet as those technology, African Americans and propriate technology to be about $15 earning less than $10,000. Hispanics, particularly from lower-in- billion. The New Millennium Class- We know that very early in the next come families and from rural areas, rooms Act will help stretch federal Century 60% of all jobs will require have less access to computers, and that funds efficiently and effectively to ad- high-tech computer skills. To prepare gap is growing. We find ourselves with dress this shortfall. our children for the jobs of the future, a new, information-age definition of Mr. President, we all talk about the they not only must have access to ‘‘haves’’ and ‘‘have-nots.’’ These condi- importance of encouraging businesses technology, but they must be trained tions are not good either for those left to become more involved in the edu- to use it as well. But we cannot count on children in low-income and rural behind, or for those who will be looking cational process in their communities. communities even to have access to to hire employees in the future. This provision creates a strong incen- Every child should be able to gain tive to help build those relationships computers. Schools can serve as great equalizers technological skills through his or her while providing school children with in this equation, giving all children ac- classroom. Yet many schools are hav- access to updated equipment. I thank cess to information technology re- ing difficulty meeting this challenge. my colleagues for supporting it and in- sources. However, a 1997 report by the Sadly, while some schools have access tend to work to see it enacted as part Educational Testing Service found that to the latest in equipment, too many of a more responsible budget plan. on average there was only one multi- schools, particularly in fiscally Mr. WYDEN. Mr. President, I am media computer for every 24 students. pleased that last night the Senate strapped urban and rural areas, have In economically disadvantaged commu- adopted the Abraham-Wyden New Mil- an insufficient number of computers, nities, the situation is worse: the com- lennium Classrooms Act as an amend- and most of those are outdated. The puter to student ratio rises to one in average computer in the classroom is 7 ment to the reconciliation tax bill. 32. years old—and many are even older. A Senator ABRAHAM and I have worked The purpose of our amendment is to large proportion of these computers on many technology issues together as build more bridges between the tech- cannot run current educational soft- members of the Senate Commerce nology ‘‘haves’’ and the ‘‘have nots’’ to ware or connect to the Internet. Committee. build more on-ramps to the informa- The Department of Education rec- The New Millennium Classrooms Act tion superhighway. You can’t get 21st ommends that the optimal ratio of stu- is about digital recycling. It gives com- Century classrooms, using Flintstones dents per computer is five to one. Yet panies an incentive to recycle tech- technology. However, technology is not schools where 81 percent or more of the nology. It says the computer Bill Gates cheap and school budgets are limited, children meet the Title I eligibility may see as a dinosaur, is really a dy- making it tough for schools to upgrade standards have only one multimedia namic new opportunity for seniors and their systems by themselves. The point computer for every 32 students. Even students who have none. of our amendment is to enhance exist- schools where less than 20 percent of There is a growing need to encourage ing incentives to businesses to donate the students are economically dis- access to information technology for computer equipment to schools. advantaged have only one multimedia both seniors and students. The Admin- There is a federal program in place, computer for every 22 students. istration on Aging estimates there are the 21st Century Classroom Act of 1997, At the same time, research shows about 11,500 senior centers throughout but its use has been limited. It allows that students with the least access to the United States serving millions of businesses to take a tax deduction for technology can be helped most from ef- older Americans. The centers offer a certain computer equipment donations fectively integrating technology into variety of services, including employee to K–12 schools. But most businesses the classroom. A study by City Univer- assistance and educational programs. take longer to upgrade their computers sity of New York found test scores of Equipping senior centers with donated than allowed for under the law. disadvantaged children increased dra- computer equipment could help open The New Millennium Classrooms Act matically with computer-aided instruc- the door to employment opportunities. would make this law work the way it tion. We know there is a growing demand was intended, and include donations to We have taken several steps at the for skilled high tech workers. Just last senior centers under this tax credit. federal level to increase schools’ abil- year, the high tech community came to First, our legislation would increase ity to integrate technology into the Congress asking for a large increase in the age limit from two to three years classroom. The creation of the E-rate the number of skilled H–1B visas so for donated equipment eligible for a program, for example, is helping they could hire foreign workers to fill tax credit. This more realistically schools obtain access to the Internet. the gap. Congress agreed to boost the tracks the time line businesses follow Technology Challenge grants are pro- number of H–1B visas from 65,000 to for their computer upgrades. It will viding resources to schools to upgrade 115,000 for 1999 and 2000. Those are cover hardware that possesses the nec- their computer programs. We are also 50,000 jobs that could have gone to essary memory capacity and graphics providing more resources to help train Americans. Many seniors have the capability to support Internet and teachers on the best ways to use tech- drive and the desire to keep working; multimedia applications.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9923 Second, our bill expands the current of favors for a privileged few and a After locking up the Social Security limitation of ‘‘original use’’ to include chamber of horrors for the rest of surpluses, I would dedicate 62 percent both original equipment manufacturers America—except perhaps the account- of the remaining $1 trillion in non-So- and any corporation that reacquires ants and lawyers. cial Security surplus revenues, or their equipment. We believe that by ex- No one can possibly believe it’s fair about $620 billion, to shore up the So- panding the number of donors eligible to tax your salary, your investments, cial Security Trust Funds, extending for the credit, we will expand the num- your property, your expenses, your the solvency of the Social Security sys- ber of computers donated to schools marriage, and your death. Taxes claim tem until at least the middle of the and senior centers. nearly 40 percent of the average tax- next century. The President promised Third, our bill provides for a 30% tax payer’s income. This is simply not to save Social Security, but he failed credit of the fair market value for right. to include this proposal anywhere in school and senior center computer do- This bill takes several steps toward his budget submission. In fact, he has nations, and a 50% credit for donations relieving that excessive tax burden, since proposed or supported spending to schools located in empowerment and I congratulate the Chairman and billions of dollars from the surplus on zones, enterprise communities and In- his colleagues on the Senate Finance other government programs, depleting dian reservations. The Department of Committee for their hard work in the funds needed to ensure retirement Commerce report highlights the need crafting this bill for the Senate’s con- benefits are paid as promised. to encourage school computer donation sideration. I would also reserve 10 percent of the There are many good provisions in in these notoriously under-served com- non-Social Security surplus to protect this bill, and I intend to support it in munities and we want to target dona- the Medicare system, and use 5 percent the hope that a conference agreement tions toward these communities. to begin paying down our $5.6 trillion can be reached that provides meaning- Finally, our bill requires an oper- national debt. ful tax relief and that the President ating system to be included on a do- With the remaining $230 billion in will sign into law. However, I am con- nated computer’s hard drive in order to surplus revenues, plus about $300 bil- cerned that the majority of the tax re- qualify for the tax credit. This will en- lion raised by closing inequitable cor- lief proposed in this bill will not be sure students and seniors don’t get porate tax loopholes and ending unnec- available to taxpayers for several empty computer shells, but the brains essary spending subsidies, I would pro- years. The bill also excludes other very that drive the computers. vide meaningful tax relief that benefits good ideas but includes several provi- Our legislation is supported by a wide Americans and fuels the economy. sions that are clearly intended to ben- My tax relief plan, which was filed as range of business and education groups. efit special interests. I hope the an amendment to this bill, provides Leaders of technology associations, amendment process, limited though it slightly more than $500 billion in tax like the Information Technology Indus- is by the Senate’s arcane rules for deal- relief over 10 years, targeted toward try Council and TechNet, and the Na- ing with reconciliation measures, will lower- and middle-income Americans, tional Association of Manufacturers improve it before we are asked to vote family farmers and small businessmen, have joined education associations, on final passage. and families. The bill before the Senate such as the National Association of Mr. President, the latest reports includes provisions that are similar to Secondary School Principals and the project a nearly $3 trillion federal some of the proposals included in my National Association of State Univer- budget surplus over the next 10 years. plan. sity and Land Grant Colleges, in sup- About two-thirds of the projected sur- The bill does provide relief from the port of the amendment. plus comes from Social Security pay- marriage penalty and gift and estate The Digital Millennium Classrooms roll taxes that are deposited in the So- taxes, but these important provisions Act promotes digital recycling. It will cial Security Trust Funds, and must be do not take effect for several years. I encourage companies to put their used kept away from spendthrift politicians believe we should repeal, once and for computers into classrooms instead of to ensure that Social Security benefits all, the disgraceful tax penalty that into landfills. It will help build a safety are paid as promised. Our first priority punishes couples who want to get mar- net under students trying to cross the must be to lock up the Social Security ried. We should also slash the death tax digital divide. I thank my colleagues Trust Funds to prevent Presidential or that prevents a father or a mother for supporting this amendment, and Congressional raids on workers’ retire- from leaving the hard-earned fruits of again wish to commend Senator ABRA- ment funds to pay for so-called ‘‘emer- their labor to their children. Why wait HAM for his leadership on this legisla- gency’’ spending or new big govern- five or seven years to provide some re- tion. ment programs. Most Americans don’t lief from these onerous and unfair Mr. MCCAIN. Mr. President, as one share the view that dubious pork-bar- taxes? who has advocated tax relief and re- rel projects, such as millions of dollars The bill properly targets the lowest form for American families throughout in assistance to reindeer ranchers and 15 percent tax bracket for a one-per- my 17 years in Congress, I welcome the maple sugar producers, should be treat- cent rate reduction and provides for a opportunity to speak on the Taxpayer ed as emergencies to be paid for with gradual increase in the upper limit of Refund Act of 1999. their Social Security taxes, but that is the bracket. My plan would also ex- Americans want, need, and deserve what Congress did earlier this year. pand this bracket to allow as many as tax relief. The government takes too That leaves nearly $1 trillion in non- 17 million more Americans to pay taxes much of the American people’s earn- Social Security revenue surpluses. at the lowest rate. ings to fund the bloated bureaucracy in Now, the typical Washington response The bill also increases the income Washington. The notion that the gov- would be to spend the money on new threshold for tax-deferred contribu- ernment knows better than families government programs and bureauc- tions to IRAs, but not until 2008, and how to spend their money is absurd. racies. Let me state very clearly that I very gradually increases the amount Americans should be able to keep much vehemently oppose the view that that employees can contribute each more of their hard-earned money to use ‘‘growing government’’ should be a na- year to employer-sponsored retirement and invest for themselves and their tional priority. To the contrary, our plans. We should make these increases family’s future. goal should be to continue to shrink effective immediately to encourage Not only do Americans want and the size of the federal government, re- more Americans to save now for their need tax relief, they also deserve fun- turning more power and money to the retirement. damental reform of our unfair and people. What the bill before the Senate does overly complex tax code. For years, I firmly believe a healthy portion of not do is provide much-needed incen- and this bill is no exception, we have the projected non-Social Security sur- tives for saving. Restoring to every compounded the tax code’s complexity plus should be returned to the Amer- American the tax exemption for the and put tax loopholes for special inter- ican people in the form of tax cuts. I first $200 in interest and dividend in- ests ahead of tax relief for working also believe we have a responsibility to come would go a long way toward re- families. The result is a tax code that balance the need for tax relief with versing the abysmal savings rate in is a bewildering 44,000 page catalogue other pressing national priorities. this country.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9924 CONGRESSIONAL RECORD — SENATE July 30, 1999 Most important, we must eliminate I intend to vote for this bill, even est 20 percent of families. Only 12 per- immediately the Social Security earn- though I know, as do my colleagues, cent of the tax benefits are targeted at ings test. This tax unfairly penalizes that the President has pledged to veto the bottom 60 percent of income earn- senior citizens who choose to, or have both the Senate and House tax bills. ers. The bill contains estate tax relief to, work by taking away $1 of their So- Neither bill will ever become law, and that eases tax burdens for those with cial Security benefits for every $3 they the American people will never see a estates exceeding $10,000,000 in worth. earn. There is no justifiable reason to nickel’s cut in their taxes, if the Presi- Is this middle America? I don’t believe force seniors with decades of knowl- dent has his way. That is the unfortu- so. Meanwhile, the Majority has once edge and expertise out of the workforce nate reality that the conferees on this again refused to extend child care tax by imposing such a punitive tax. measure must recognize as they work credits to people earning less than Many of the other provisions in this to craft a meaningful tax relief bill $28,000. bill that provide tax relief for edu- that can be enacted and implemented The Republicans stress the impor- cation, health care, and other issues for the benefit of the American people. tance of securing the solvency of So- important to American families are I will vote for this bill to move the cial Security and Medicare. Again, it is implemented gradually or simply de- process along and send this bill to con- a cruel irony that, at precisely the layed for several years. Likewise, some ference with the House. What will mat- time early in the next century that of the provisions that benefit small ter at the end is that we focus on Medicare is scheduled to become insol- businesses and tax-exempt organiza- crafting a bill that can become law so vent and Social Security surpluses are tions do not take effect for a number of that the American taxpayers get the expected to disappear, the cost of the years. In fact, less than half of the 120 relief they deserve and need. I have put Majority’s tax cut will begin to sky- provisions in this bill provide any tax forward a plan, described briefly here, rocket to almost $2 trillion. As the relief at all in the year 2000. Those tax that I believe can be a starting point baby boomers begin to retire and the cuts that do take effect immediately for meaningful and achievable tax cuts. solvency needle approaches zero, the amount to just $5 billion of the nearly I urge the conferees on this legislation Republicans have left virtually nothing $800 billion total tax cuts in the bill. to focus on a conference agreement to secure the viability of these impor- But look at some of the provisions that the President will sign and that tant programs for future generations of that do take effect immediately: will become law this year. That is what retirees. —A provision to extend the tax credit the American people want and need. Drastic cuts to domestic and defense for electricity produced from wind and Mr. DODD. Mr. President, I would spending are a third consequence of closed-loop biomass sources, and also like to take this opportunity to express this ill-conceived tax bill. It will have extend the credit to electricity pro- my thoughts and observations on the the effect, if not the intent, of crowd- duced from poultry waste, which is de- Senate’s consideration of S. 1429, The ing out investments in critical domes- fined to include rice hulls, wood Taxpayer Refund Act of 1999. tic and defense priorities. This bill as- shavings, straw, bedding, and other lit- Regrettably, in choosing to pass this sumes cuts in defense of $198 billion ter. This provision goes into effect im- bill, the Senate has missed a unique op- and cuts of $511 billion in discretionary mediately, and will cost $1.6 billion portunity to provide Americans with priorities. As a result, 375,000 children over 10 years. long-term economic stability, im- would be cut from the Head Start pro- —A provision to exempt individuals proved retirement and health security gram, 1.4 million veterans would be de- with foreign addresses from paying the for seniors, and targeted tax cuts for nied much needed medical services 7.5 percent air passenger ticket tax on working families. from VA hospitals, and approximately frequent flier miles, leaving American Instead, the Senate has adopted— 1.25 million low-income tenants would passengers to pay for our over-bur- along largely partisan lines—a package lose rental subsidies in FY 2009. Even dened air traffic control system. The of reckless and fiscally irresponsible more troublesome is the fact that if de- provision goes into effect on January 1, tax cuts that threatens our economic fense spending is funded at the Presi- 2000, and will cost $238 million over 10 prosperity and short-changes our com- dent’s request, cuts in domestic spend- years. mitment to Social Security, Medicare, —A provision that exempts small education, and other priorities. ing would be as high as 40 percent. seaplanes from paying ticket taxes. Let me briefly express my concerns Mr. President, I am deeply disturbed This provision goes into effect on De- about this legislation in more detail. not only by the details of this tax plan cember 31, 1999, and will cost $11 mil- First, it would harm the country’s but also by the erosion of the integrity lion over 10 years. long-term economic prospects. I find it of the budget process that it rep- —A provision to reduce the excise somewhat ironic that many of our Re- resents. It is premised on accounting tax, from 12.4 percent to 11 percent, on publican colleagues applaud Federal gimmicks, false assumptions, and component parts of arrows used for Reserve Chairman Greenspan’s eco- budgetary slights of hand to achieve its hunting fish and game that measure 18 nomic stewardship, yet choose to ig- desired numbers on spending and reve- inches overall or more in length. This nore his warnings about the ill-consid- nues. That was tried in the 1980’s, with provision takes effect immediately. ered implications of their tax plan. In disastrous results. In this decade, we How can we justify giving a $33 mil- fact, the Chairman has made abun- have restored the integrity of the budg- lion tax break next year to companies dantly clear that this tax package will et process. In some ways, that is an producing electricity from chicken stimulate an economy that is already achievement almost as important as waste, when senior citizens have to performing at a high level. That will balancing the budget itself, since it has forego some of their Social Security only contribute to the kinds of infla- given confidence to taxpayers and fi- benefits if they must work to make tionary pressures that have already nancial markets that the Administra- ends meet. How can we justify writing caused the Fed to recently raise inter- tion and Congress can keep its fiscal off $15 million in revenue next year est rates. The further irony, of course, house in order. Now, with S. 1429, we from people from other countries who is that, as we all know, an increase in risk simply squandering the gains that fly to the U.S., when American families interest rates acts as a hidden tax on have been made. This distorted process get absolutely no relief from the egre- taxpayers. So by contributing to a hike using budgetary smoke and mirrors gious marriage penalty until 2005? in interest rates, this tax package will, I fear, lead this nation down a pre- Mr. President, as I have said, there could actually have the effect of rais- carious path in years to come. are many good provisions in this bill ing the cost of a mortgage loan, a car This is not to say that I do not sup- which reflect the hard work and dif- loan, a student loan, and so many other port some reasonable tax relief tar- ficult decisions that Chairman ROTH items upon which working families de- geted at those who need it the most. and the Finance Committee faced. pend. But just as no family would leave for They have worked hard to do the best Second, S. 1429 fails the test of tax vacation without making sure that we can for the American people who fairness. According to the Department their bills could be paid, the Congress need and deserve relief from excessive of the Treasury, nearly 67 percent of should not provide tax cuts without taxation and a burdensome tax code. the tax cuts would benefit the wealthi- first meeting our obligations to

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9925 strengthen Social Security and Medi- the capital gains holding period for VETERANS HEALTH CARE care, reduce the debt, and invest in de- horses from 24 months to 12 months Mr. ROCKEFELLER. Mr. President, I fense and domestic priorities. What the and would correct an inequity in the filed a motion to protect veterans’ supporters of this bill have done is es- tax code that has discriminated health care because veterans are apt to sentially to buy a vacation without against the horse industry since 1969. be hurt by the tax reduction bill before making sure they could pay for the ne- Currently, all capital assets—with the us. I was joined in this effort by Sen- cessities. exception of horses and cattle—qualify ators MIKULSKI, BRYAN, DASCHLE, HAR- Senator MOYNIHAN’s amendment for the lowest capital gains tax rate if KIN, and BINGAMAN. Senator MIKULSKI, struck the proper balance among these held for 12 months. This discrepancy in as vice chair of VA Appropriations important obligations by devoting one- the tax code is simply not fair to the Subcommittee, and my other cospon- third of the surplus to discretionary horse industry and must be changed. sors all understand what is at stake spending, one-third to paying down the The horse industry is extremely im- here. I did not proceed in offering this debt, and $290 billion in tax cuts for portant to our economy, and accounts motion, however, because Senator low and middle income Americans. It for thousands of jobs. Whether it is WELLSTONE offered a similar motion. would have, among other provisions, owning, breeding, racing, or showing The issue raised by my amendment increased the standard deduction for horses—or simply enjoying an after- still applies to this tax bill. It is very the 73 percent of Americans who claim noon ride along a trail—one in thirty- simple: approval of this $800 billion tax the standard deduction, provided a 100 five Americans is touched by the horse reduction bill leaves no ability to meet percent deduction for health insurance industry. In Kentucky alone, the horse our obligations to veterans. If we spend for the self-employed, and offered a 25 industry has an economic impact of all of the federal surplus on tax give- percent credit for employers who oper- $3.4 billion, involving 150,000 horses and aways, there will be nothing left to ate child care centers on site or who more than 50,000 employees. fund veterans’ health care. help employees pay the cost of off-site What supports this industry is the in- In my view, the Senate Finance Com- child care. This is broad-based tax re- vestment in the horses themselves. mittee needed to rethink this tax bill lief targeted to the people who need it Much like other businesses, outside in- and reserve $8.5 billion over 5 years to the most. While the Dodd-Jeffords vestments are essential to the oper- appropriately fund VA health care. amendment on child care was adopted ation and growth of the horse industry. This is simple math. My motion in- by voice vote, regrettably the Moy- Without others willing to buy and structed the Finance Committee to nihan amendment did not prevail. Nor breed horses, it is impossible for the in- provide for slightly more than 1 per- did other important amendments. Chief dustry to remain competitive. The 2- cent of the tax cut included in the bill among these was Senator KENNEDY’s year holding period ultimately discour- before us. I want to repeat that—it efforts to provide a much needed pre- ages investment, putting this indus- would have set aside about 1 percent of scription drug benefit. Three-quarters try—and the 1.4 million jobs it sup- the tax cut included in the bill for vet- of American seniors lack dependable ports nationwide—at risk. Clearly, this erans. private sector coverage of prescription is bad economic policy and must be The amount included in the motion— drugs. Yet seniors increasingly rely on changed. $8.5 billion over 5 years—has been fully new and often costly medicines to pre- The two-year holding period for justified by the Committee on Vet- serve their health and prolong their horses is sorely outdated. It was estab- erans’ Affairs in its Views and Esti- life. In a bill providing $792 billion in lished in 1969, primarily as an anti-tax mates letter to the Committee on the tax breaks, I regret that the Senate shelter provision. Since then, there Budget. could not find $49 billion for modest have been a number of changes in the I ask unanimous consent that a copy drug coverage for seniors. tax code. Specifically, the passive loss of this letter be printed in the RECORD. My friend and colleague from Con- limitations have been adopted, putting There being no objection, the letter necticut, Senator LIEBERMAN, along an end to these previous tax loopholes. was ordered to be printed in the with Senator HOLLINGS, offered an im- RECORD, as follows: Although horses are categorized as portant amendment that would have U.S. SENATE, stricken all of S. 1429’s provisions, ef- livestock, they have an entirely different function than other animals, COMMITTEE ON VETERANS’ AFFAIRS, fectively eliminating the tax cut for Washington, DC, March 15, 1999. like cattle. While both are livestock, now. The surplus would have then been Hon. PETE V. DOMENICI, used to pay down the debt. I voted in the investment in these two animals is Chairman, favor of this amendment not as a state- entirely different. Beef is a commodity, Hon. FRANK R. LAUTENBERG, ment against all tax cuts, but rather to with a finite and generally short life Ranking Minority Member, support its message of fiscal responsi- span. However, horses—whether they Committee on the Budget, U.S. Senate, are used for racing, showing, or work- Washington, DC. bility and to express my utter opposi- DEAR PETE AND FRANK: Pursuant to section tion to the Majority’s tax bill. ing—are frequently bought and sold multiple times over their longer life in 301(d) of the Congressional Budget Act of Mr. President, in simple terms, tax 1974, the Committee on Veterans’ Affairs cut may be compared to apple pie. Ev- order to maximize the return on the (hereafter, ‘‘Committee’’) hereby reports to eryone likes them. Everyone would owner’s investment. Additionally, once the Committee on the Budget its views and like a slice. But we have other respon- horses retire from the track or show estimates on the fiscal year 2000 (hereafter, sibilities. We should provide tax cuts, arena, they continue to enhance their ‘‘FY 00’’) budget for veterans’ programs but we should take care of our other value through breeding. within the Committee’s jurisdiction. This report is submitted in fulfillment of the Com- priorities as well. Especially now, when The cost of my amendment will be completely offset by postponing for one mittee’s obligation to provide recommenda- economic times are as good as they tions for programs in Function 700 (Vet- have been in our lifetimes, we should year the 7.5 percent Air Passenger erans’ Benefits and Services) and for certain build a strong foundation for long-term Ticket Tax that has been proposed on veterans’ programs included in Function 500 prosperity by reducing the national the frequent flier miles for persons (Education, Training, Employment, and So- debt, strengthening Social Security with foreign addresses. Changes to the cial Services). and Medicare, boosting our national capital gains holding period for horses I. SUMMARY defense, and investing in education, the would go into effect in 2001 and the Air VA requires over $3 billion in additional environment, and other vital priorities. Passenger Ticket Tax would also go discretionary account funding in FY 00 to The bill that has just passed the Sen- into effect in 2001. support its medical care operations: an addi- ate fails to do that. I remain optimistic There is no sound argument for dis- tional $1.26 billion to meet unanticipated that in conference we can craft legisla- tinguishing horses from other capital spending requirements; an additional $853.1 assets. The two-year holding period million to overcome the effects of inflation tion that is more faithful to our shared and other ‘‘uncontrollables’’ in order that it vision of future prosperity and sta- discriminates against the horse indus- might maintain current services; and at bility for all Americans. try and must be reduced. I urge my col- least $1 billion in additional funding to bet- Mr. MCCONNELL. Mr. President, the leagues to join me in correcting this ter address the needs of an aging, and in- amendment I submitted would reduce unfair tax policy. creasingly female, veterans population. At

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9926 CONGRESSIONAL RECORD — SENATE July 30, 1999 this time, however, we limit our request to could not be anticipated when the Balanced hearing aids, eyeglasses, walkers, etc.—have $1.7 billion in additional FY 00 medical care Budget Act was enacted. increased markedly between 1993 and 1998, at funding. We believe that this level of addi- Hepatitis C treatment annual rates of up to 18.90%. A portion of those increases are an unanticipated side ef- tional funding, coupled with ongoing VA ef- Hepatitis C virus (HCV) is today the most fect of ‘‘eligibility reform’’ legislation, en- forts to gain efficiencies and passage of VA common chronic bloodborne infection in the acted in 1996, which allows VA to enroll all Medicare subvention legislation this year, United States. The Centers for Disease Con- will allow VA to meet veterans’ medical care veterans, subject to available funding, for trol and Prevention (CDC) reports highest VA medical care. That legislation appears to needs in FY 00. prevalence rates among males aged 30–49 and With respect to mandatory account pro- have stimulated demand for VA services intravenous drug users. VA studies now indi- grams, the Budget Committee has already among persons needing such devices. cate that at least 20% of hospitalized vet- approved provisions of S. 4, the ‘‘Soldiers’, Even after general inflation is factored eran-patients test positive for HCV, twice Sailors’, Airmen’s and Marines’ Bill of out, VA anticipates that its prosthetic de- the rate reported among the population gen- Rights Act of 1999,’’ which will raise VA vice expenses will increase by a rate of 14.8%. erally. VA will require an additional $74.075 million mandatory account spending by $3.8 billion No vaccine against hepatitis C exits, nor is over fiscal years 2000–2004. We do not request to defray these expenses in FY 00. there a cure. And while it is true that HCV 2. Current services—$853.1 million ‘‘pay-go’’ relief beyond that amount. We will, was first identified in the late 1980’s no We have closely observed VA’s recent ef- however, anticipate the availability of such treatment regime was generally recognized forts to restructure to deliver health care funds in the event that S. 4 falters. until last year, when a recommended drug services to the Nation’s veterans more effi- II. GENERAL COMMENTS therapy of interferon and ribavirin was ap- ciently. Generally, we are satisfied with proved. This drug therapy alone cost $13,200 We note at the outset that the Nation’s VA’s effort, and we acknowledge that fiscal veterans have already contributed signifi- per patient—costs that VA did not anticipate restraints have been—and will continue to cantly to the cause of fiscal restraint. On the prior to approval of this treatment regime in be—a stimulus to change. Nonetheless, we mandatory account side, numerous money- late 1998. Related testing, biopsy and other believe that a fourth consecutive year of saving measures, unanimously approved by costs amount to an additional $1,820 per pa- non-growth in the medical care budget would the Committee’s membership in both 1996 tient. be destructive. and 1997, were enacted into law as Title VIII VA anticipates that of the 3.3 million pa- As anyone who pays medical bills or health of Public Law 105–33, the ‘‘Balanced Budget tients it will treat in FY 00, 36,300 will be insurance premiums knows, medical costs Act of 1997.’’ Relative to baseline assump- candidates for HCV drug therapy. Taking are rising. Payroll inflation, increases in the tions then in effect, these measures are re- into account the completion of treatments costs of goods, and other ‘‘uncontrollables’’ sulting in savings of $2.783 billion in manda- initiated in FY 99, VA will require an addi- dictate funding increases of $853.1 million in tory account outlays over fiscal years 1998 tional $625 million in FY 00 to respond to FY 00 just to maintain current service levels. through 2002. In addition, the statutory bar this unanticipated medical challenge. Health care is an extremely labor-inten- on VA compensation for disabilities stem- Emergency medical services sive enterprise; that is why VA is the largest ming from in-service tobacco use, approved VA currently provides enrolled veterans civilian agency, in terms of employment, in as section 8202 of the ‘‘Transportation Eq- with a full range of hospital care and med- the Federal government. Can labor effi- uity Act for the 21st Century,’’ Public Law ical services. It does not, however, generally ciencies be wrung out of health care systems, VA included? Most assuredly so, as dem- 105–178, has resulted in net savings of $15.2 provide comprehensive emergency care serv- onstrated by the annual shrinkage of VA’s billion during fiscal years 1999 through 2003. ices. Rather, VA patients must rely on insur- medical labor force (from 201,000 in FY 95 to In addition to these mandatory account ance they may have to defray such expenses, 174,000 in FY 00) even as the number of vet- savings, the Balanced Budget Act froze vet- or pay for such expenses themselves. erans treated during that period increased by erans’ programs discretionary spending out- The Administration intends to propose leg- almost 40% (from 2.6 million to 3.6 million). lays through fiscal year 2002. This freeze has islation this year declaring that emergency But even with the shrinkage of VA’s medical required—and will continue to require at an care is a basic right of all Americans. Such labor pool, VA’s medical care payroll costs accelerating pace—unacceptable cuts in vet- legislation would, reportedly, require that will increase by $562.6 million in FY 00 due to erans’ discretionary spending, particularly all health care plans provide such care, as a non-optional cost-of-living and within-grade medical care spending, even after projected matter of right, to the enrollees. In such cir- salary and wage adjustments, and increases third-party receipt/Medical Care Cost Recov- cumstances, VA will be compelled to offer in Government-paid Social Security, health ery (MCCF) funds are collected. Whatever emergency care services to its enrollees, ei- the merits of this plan when enacted, it was insurance, retirement, and other benefit ther directly or more likely, by reimbursing costs. passed before budgetary surpluses has mate- fees charged by other providers. Prior to the rialized. The freeze on medical care funding Other inflation-related cost increases must development of the Administration’s pro- also be borne by the Veterans Health Admin- can no longer be justified. It must now be posal on the issue, VA had not anticipated lifted. istration. While VA has implemented an ag- the assumption of this added responsibility. gressive pharmaceutical management pro- Regrettably, the Administration has pro- Legislation requiring VA to pay for emer- posed a budget that would impose further gram which has saved more than $350 mil- gency care provided to veterans by non-VA lion—making VA the model for Medicare, cuts in veterans’ medical care programs by medical facilities has already been intro- freezing appropriated medical care funding DOD and others to emulate—increases in duced in the House and will be advanced in VA’s annual pharmaceutical costs, medical at $17.306 billion, the FY 99 appropriation. the Senate. and non-medical supply costs, leased build- Since VA anticipates an increase in MCCF VA estimates the costs of providing emer- ing space costs, and the like, will account for receipts of only $124 million in FY 00, overall gency care services and subsequent hospital an additional $267.1 million. Finally, the Vet- medical care spending would increase under admission to VA enrolles will be $548 million erans Health Administration will be required the Administration’s plan by less than 7⁄10’s in FY 00. to absorb an additional $23.4 million in other of 1%. This is unacceptable; after three years Weapons of mass destruction preparedness uncontrollable expenses (e.g., State home of flat-line medical care appropriations, VA and CHAMPVA workload increases, storage requires, at minimum, a 10% (or $1.7 billion) In response to Public Law 105–114, VA has and space requirements, additional calendar increase in appropriated funding. enchanced its role in assisting the Depart- ment of Health and Human Services (HHS) in day costs, etc.) III. DISCRETIONARY ACCOUNT SPENDING stockpiling antidotes and other pharma- It is imperative that the Budget Com- A. PROPOSED MEDICAL CARE SPENDING ceuticals needed for response to potential do- mittee understand that requiring VA to ab- The standstill level of funding proposed by mestic terrorist attacks with weapons of sorb such cost increases continually must re- the Administration for FY 00 medical care mass destruction. VA medical facilities are sult, at some point, in cuts in the amount of spending is inadequate for VA to fulfill unan- dispersed nationwide and thus, along with care—or, more alarmingly, in the quality of ticipated spending requirements imposed on Department of Defense hospitals located care—which VA provides. We have docu- VA by events outside the Department’s con- within the continental U.S., they are natural mented serious quality problems, e.g., an in- trol. Indeed, the proposed flat-line budget depositories of drugs, supplies and other ma- crease in dangerous pressure ulcer sores, will not even allow VA to maintain current terials which might be needed to respond to which appear to be directly associated with services. Clearly, the budget will not permit such emergencies. inpatient staffing shortfalls. With respect to VA to better address the single most press- VA participation in preparatory activities outpatient care access, waiting times for ap- ing, and least met, medical need of the World is cost-efficient—but it is not without costs. pointments for routine services have reached War II/Korean War veteran generation: long- Such costs, which had not been anticipated 100 days or longer. Mental health services term care. Nor is it sufficient for VA to serve by VA prior to enactment of Public Law 105– are simply unavailable at 60% of VA’s out- the growing cohort of female veterans. Thus, 114, will amount to $14.619 million in FY 00. patient clinics. In short, VA operates in a national envi- budget relief is imperative. Increased prosthetic costs ronment where medical care cost inflation 1. Unanticipated VA spending requirements— VA expenditures in meeting the prosthetic exceeds the general inflation rate by a factor $1.26 billion device needs of its patients—needs which in- of more than two; if the medical care infla- VA will require an additional $1.26 billion clude not only artificial limbs and the like, tion rate, 3.6% were to be applied to VA’s fis- in FY 00 to meet care requirements which but also more conventional aids such as cal year 1999 medical care budget, on that

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basis alone a funding increase of $650 million Two construction projects which would V. CONCLUSION would be justified. Yet VA is required to— rectify such shortcomings warrant par- In summary, VA requires at least $1.26 bil- and is succeeding in—treating more patients ticular mention. The first is a $29.7 million lion in additional discretionary account with funding that is declining in real terms. outpatient clinic expansion at the VA Med- funding to meet unanticipated spending re- Such a situation cannot persist into a fourth ical Center in Washington, DC, which was quirements that have been thrust upon VA year without drastically affecting quality. authorized by Public Law 105–368. The second by events beyond VA’s control; an additional 3. Unmet needs—$1 billion + is a relatively modest ($10.8 million) environ- $853.1 million to overcome the effects of in- The foregoing discussion has focused on ad- mental improvements project at VA’s Med- flation and other ‘‘uncontrollables’’ and ditional funding of $2 billion needed to meet ical and Regional Office Center in Fargo, ND. maintain current services for eligible vet- unanticipated requirements and to maintain That project would address asbestos re- erans; and at least $1 billion in additional current services. Further funding increases moval, fire prevention, patient privacy, and discretionary account funding to begin to of $1 billion or more are required to address handicapped accessibility needs. We particu- better address the needs of an aging, and in- the two largest unmet needs VA faces due to larly request funding for these projects in creasingly female, veterans population. demographic shifts in the veterans’ popu- FY 00. These needs total over $3 billion. lation: long-term care for aging World War II C. GENERAL OPERATING EXPENSES—VETERANS We do not request, however, that discre- and Korea veterans, and maternity and re- BENEFITS ADMINISTRATION tionary account ceilings be raised $3 billion+ productive health services for the growing In a reversal of recent trends, in the last for FY 00. While such an increase would be number of female veterans. two years the Veterans Benefits Administra- totally justified to make up for flat VA med- Long-term care tion (VBA) has experienced increases in both ical care funding levels over the last three the size of the pending compensation and years, we believe that recent budgetary re- In our view, the health care issue that VA pension case backlog, and the average ‘‘age’’ straints have stimulated needed reform. We must face over the intermediate term—in- of cases which comprise the backlog. At the believe, further, that VA can squeeze out yet deed, the health care issue that the Nation same time, the quality of VBA decision mak- more efficiencies in the way it provides must face over the next decade—is the need ing has not improved sufficiently despite health care, and we would not want to im- for long-term care among the aging World promises of improvements which were the pede such reforms by requesting funding in- War II generation. WWII veterans saved rationale for a slowdown in case processing. creases beyond VA’s ability to absorb them Western civilization. We cannot turn our Internal VA reviews indicate an error rate of without waste. Thus, we request that VA dis- backs on them now. 36%. The Budget Committee can anticipate an cretionary spending be allowed to increase VBA requests $49 million in additional by $1.7 billion for FY 00. extended dialog with the Committee on Vet- funding to support an FY 00 personnel in- erans’ Affairs on this issue. For now, we ad- As for mandatory account spending, we do crease of 164 FTE. These new hires would, ac- not, at this time, request a five-year ‘‘pay- vise that, at minimum, an additional $1 bil- cording to VBA, join personnel shifted from lion per year in funding will be necessary, go’’ waiver beyond the $3.8 billion already other duties to yield a net addition of 440 acceded to by the Budget Committee. starting in FY 00, to begin addressing the staff devoted to adjudication functions. We needs of VA patients who seek long-term These views reflect our best judgment as of have seen no specific plan which identifies this date. If we can provide further assist- care. For the most part, such funding would the source of the majority of these trans- not be directed to new programs. Rather, it ance in your consideration of this report, ferred employees, so we must question please feel free to call on us. would be devoted to providing VA-supplied, whether this plan will actually materialize. State home-supplied, or VA- supported con- Sincerely, We do, however, support VBA’s request for ARLEN SPECTER, tract/community-based care. These programs an additional $49 million in funding to add are, in our view, effective. But they are Chairman. new adjudication staff. In addition, we be- JOHN D. ROCKEFELLER, IV, grossly underfunded and do not begin to lieve that the adjudication backlog must be meet the WWII generation’s need for long- Ranking Minority attacked now using current staff in a one- Member. term care services. In addition, we antici- time, targeted, and carefully controlled pate other initiatives—e.g., increased VA overtime effort. Mr. ROCKEFELLER. Mr. President, support for State veterans’ homes in the IV. PROJECTED MANDATORY ACCOUNT it is a reasonable amount which covers form of both increased per diem payments SPENDING $853 million in ‘‘automatic’’ costs such and pharmaceutical supplies, and initiatives A. EDUCATION ASSISTANCE PROGRAMS as inflation and wage increases. It also to transfer excess VA property in exchange allows for new initiatives, such as the for cash to support medical operations or As part of the ‘‘Soldiers’, Sailors’, Air- discounted medical services to VA-eligible mens’ and Marines’ Bill of Rights Act of need to address the dramatic increase patients. 1999,’’ the Senate has already approved, within deadly hepatitis C, particularly out objection from the Budget Committee, Maternity benefits and reproductive health among veterans who served in Viet- the following improvements in VA edu- services nam; emergency care; and the rising cational assistance programs: An increase in Women now make up 13% of the active long-term care needs of World War II monthly assistance payments (from $528 to veterans. duty military. At lower ranks, the percent- $600 for veterans who served three-year en- age of women serving is higher. For example, listments, and from $325 to $429 for two-year The Conference Report on the Budget 20% of new recruits to the services other enlistees); a repeal of the requirement that Resolution includes this number. And than the U.S. Marine Corps are now women. servicemembers contribute $100 per month in an April 30, 1999, letter to the Appro- These women will become veterans, and VA for 12 months from base pay to ‘‘buy’’ eligi- priations Committee, 51 Senators are must be prepared to meet their care needs. bility; the allowance of a ‘‘lump sum’’ ben- on record supporting it. Such needs invariably include maternity efit at the beginning of a training term; and Even with the economic prosperity benefits and reproductive health services a provision allowing veterans to transfer since 62% of all women veterans are under our country has recently begun to ex- benefits to a spouse and/or children. CBO has perience, if we approve the proposed the age of 45, when childbearing generally estimated that these provisions will result in ends. Women who are drawn to service with additional mandatory account costs of $3.8 huge tax cuts, or fail to adjust the a promise of benefits, and then induced to billion over fiscal years 2000–2004, and $13 bil- budget caps, there simply will not be enroll for VA care with the promise of a full lion over fiscal years 2000–2009. money left to increase the veterans’ continuum of care, rightfully demand that Had this business been conducted in the health care budget to what it needs to their basic health care needs be met. regular order, these improvements would be. B. MEDICAL FACILITY CONSTRUCTION have been considered by the Committee on I can assure my colleagues that fur- As noted above, we are generally satisfied Veterans’ Affairs, the committee of primary ther cuts will seriously jeopardize the with VA’s efforts to restructure the delivery jurisdiction. Our committee, perhaps would quality of VA health care. Earlier this of health care services. VA’s construction have recommended a different mix of pro- programs, however, have not kept pace with gram improvements—e.g., the Commission week, I spoke about the erosion of VA’s changes needed to accommodate the struc- on Servicemembers and Veterans Transition programs to help veterans with special tural reorganization. Older hospitals de- Assistance had recommended enactment of a needs. Resource shortfalls have imper- signed around an outmoded inpatient treat- tuition-reimbursment benefits program like iled services for the spinal-cord in- ment model lack space to handle increased that in force after World War II. We did not, jured, for blind veterans, for veterans outpatient demand. In addition, such facili- however, impede these Armed Services Com- in need of prosthetics, and for veterans ties generally fall far short of modern pa- mittee-reported measures, and we continue in need of mental health care. Health tient privacy, handicapped accessibility, fire to support them. Of course, we reserve the care professionals within VA are over- sprinkler, and air conditioning standards. At right to revisit the issue within our combest, these shortcomings hinder VA’s ability mittee irrespective of the fate of the ‘‘Sol- worked. Reductions-in-force have also to attract veterans into the system. At diers’, Sailors’, Airmens’ and Marines’ Bill of become a reality for them. worst, they seriously compromise patient Rights Act of 1999.’’ We almost certainly will In my own state, we are already see- safety. do so should that legislation falter. ing lapses in the availability of health

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9928 CONGRESSIONAL RECORD — SENATE July 30, 1999 care. For example, at the Beckley VA been included in the legislation we are whether there might be an opportunity Medical Center, approximately 400 new considering today, I continue to believe to consider this legislation and wheth- veterans are waiting to be seen in pri- that a tax bill should ultimately in- er he would work with us toward its in- mary care. Approximately 500 veterans clude these provisions. clusion in a future tax package. already in the system are on a waiting As the Chairman and Senator HATCH Senator ROTH. I thank my col- list for hearing evaluations. And the know, the increased use of these fuels leagues from Rhode Island and Utah for caseload in pharmacy has increased and vehicles will provide substantial their hard work on this legislation. over 41 percent in the last year, with environmental and energy efficiency The bipartisan support for this pro- no increase in staffing, causing many benefits. The vehicles targeted for posal is impressive. This is legislation veterans to wait two hours or longer to credits by our amendment are far less that could make an important con- have a prescription filled. polluting than conventional cars and tribution to the environment. I look At the Martinsburg VA Medical Cen- trucks. So, one result of our amend- forward to working with my colleagues ter, veterans are waiting six months ment would be improved air quality. on this effort. for a urology appointment. In the One study of the effect of our proposal Mr. BIDEN. Mr. President, it has PTSD program, the number of beds estimates that the number of natural taken a lot of tough choices here in have increased by 14 while the number gas vehicles in operation could more Washington—and a lot of hard work of staff have been reduced, making one- than triple by 2004, exceeding 250,000 and restructuring in the private econ- on-one counseling very difficult. vehicles. That number would continue omy—to put our country’s budget into At the Clarksburg VA Medical Cen- to grow exponentially. These cars are the black. For the first time in a gen- ter, current staffing has not kept pace so much cleaner than gasoline and die- eration, we have a balanced federal with the demand for inpatient care, sel vehicles that our proposal could budget. And for the first time in our and veterans are too often referred to eliminate 58,000 tons of smog-forming modern history, we can project sub- private hospitals because no beds are emissions by 2004. That number would stantial surpluses for the foreseeable available at the VA. more than double by 2009. In order to future. In outpatient care at Clarksburg, the accomplish that without alternative There were times I believed we would waiting times for an appointment in fuel vehicles, we would have to remove never see this day, Mr. President, but optometry and dermatology are ap- 1.5 million conventionally-fueled vehi- our official forecasts now call for as proximately four months, and in urol- cles from the road. much as one trillion dollars in surplus ogy, veterans are waiting seven months Furthermore, each gallon of alter- over the next ten years. That’s on top for an appointment. native fuel used in such a vehicle rep- of the two trillion in Social Security There has been a recent proposal to resents one less gallon of gasoline that surpluses that will build up over that close both the inpatient and outpatient we need to obtain from imported oil. same time, money that is already surgical programs at the Huntington The Department of Energy estimates promised to future retirees. VA Medical Center and to refer vet- that nearly three billion gallons of gas- I want to say something about erans to a VAMC in Kentucky, over 130 oline would be displaced, thus reducing whether we should count on those sur- miles away. our foreign oil dependence. pluses actually materializing, Mr. I can assure my colleagues that if Mr. HATCH. The Senator from Rhode President, but first I want to talk these things are happening in the VA Island is correct. Millions of Americans about what most families I know would medical centers in my state of West live in areas that are not in compliance do if they woke up to the kind of wind- Virginia—and trust me, they are—then with air quality standards. The in- fall in their household budgets that we you can be sure that they are occurring creased motor vehicle traffic antici- anticipate in our federal budget today. in the VA medical centers in your pated in the four county Wasatch front Take your average family, Mr. Presi- states, as well. in my home state of Utah will cer- dent, with a mortgage, maybe paying Staff at each of our VA medical cen- tainly push us toward non-attainment for one or two children already in col- ters have been stretched to the limit, compliance problems. Promoting the lege, maybe another child with college and without additional funding, staff- increased use of alternative fuel vehi- still in his or her future. They have ing will only get worse. The erosion of cles is a viable option available to help some debts, some worries about how to services and the huge reductions in Utah achieve our clean air objectives. pay for a retirement that gets closer staff have already put the veterans’ Alternative fuel vehicles represent the every year, some aspirations for their health care system in serious jeopardy, cleanest vehicles in the world. Market- children that they may not be able to and I cannot allow it to continue. based incentives will help encourage afford. Maybe Grandma and Grandad In summary, there is no doubt that the use of such vehicles. I am very have moved in with them, bringing we are at a precipice, and the fate of pleased to be part of this effort with with them some health care problems veterans and their families, as well as my colleagues from the Finance Com- that add to the family’s expenses. millions of other Americans, are mittee and am looking into getting a Let’s assume that after years of threatened by this rush to enact natural gas car of my own at this very spending more than they took in, our hugely bloated tax giveaways. moment. family finally turns the corner. Let’s Mr. President, I am pleased that a Mr. CHAFEE. The legislation Sen- borrow a story from today’s new high- majority of the Senate recognized that ator HATCH and I have drafted would tech economy and say that the stock the size of this tax bill would have address the problem that currently pre- they hold in their new start-up com- jeopardized veterans’ health care. As vents these fuels and vehicles from pany has just jumped in value. They we proceed to conference, I now hope competing on their own in the market. cannot be sure that the stock will stay they will come to the same conclusion Incentives to make them less costly that high next year, or the year after about other critical domestic programs will stimulate demand and permit the that, but they feel a whole lot richer and rethink this tax cut. economies of scale that are needed in than they did before. ALTERNATIVE FUEL VEHICLES order for them to gain more widespread Now let’s picture the discussion Mr. CHAFEE. I would like to engage use. Our proposal has been endorsed by around their kitchen table, with this the Chairman of the Finance Com- a diverse group of stakeholders includ- new problem to discuss. I’m betting mittee, Senator ROTH, and the Senator ing the Natural Resources Defense that most of the families I know in from Utah, Senator HATCH, in a col- council, the Union of Concerned Sci- Delaware would make plans to pay loquy regarding alternative fuel vehi- entists, virtually all the major auto- down their past debts, the mortgage cles. As the chairman knows, Senator mobile manufacturers, and the Amer- hanging over their heads, make provi- HATCH and I presented an amendment ican Gas Association. There is growing sions for their children’s education, during the finance Committee’s mark- bipartisan support in the Senate for their parents’ health needs, and their up of the tax bill, to provide incentives many of these concepts; on the Finance own retirement. Maybe, after they had for the sale and use of clean alternative Committee, Senators ROCKEFELLER, taken care of those priorities, they motor fuels and alternative fuel vehi- BRYAN, and ROBB have all expressed would allow themselves to relax and cles. Although the amendment has not support. I would ask Senator ROTH enjoy a more affluent lifestyle.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9929 Mr. President, I don’t claim that this we pay to perform those functions, the population—10 percent above the is a perfect analogy to the situation be- down more than 340,000 in the past middle and on down—would get just an fore us in the Senate. I certainly don’t seven years—are both at levels we have average of $174 a year from the tax plan claim that for many hardworking not seen since 1962. before us today. But a one percent in- Americans sensible tax relief is some We should recognize the hard work crease in a 7 percent mortgage on a kind of luxury. But I think it makes an that achieved those low numbers, Mr. $250,000 house amounts to over $2,000 a important point, which is simply that President. They are an important part year in additional payments. That is most Americans would be a lot more of how we got to where we are today, not a deal any informed American cautious, and a lot more prudent, in with a balanced budget in hand, and would take, Mr. President. using any anticipated surplus in their surpluses in sight. As the private sec- If Greenspan thinks the economy is family budget. tor has become leaner and more effi- already at risk of overheating, imagine Those are the priorities that I think cient, the federal government has also his reaction if we throw an $800 billion should guide us in our deliberations moved in the same direction. tax cut into his calculations the next today. We should take the opportunity But we must also realize that na- time he considers increasing interest given us with the expectation of future tional defense, the FBI, medical re- rates. budget surpluses first to pay down the search, education, veterans’ health Everybody here knows that low in- debt that has built up in a generation care, air traffic control, water qual- terest rates and low inflation have of deficit finance, then we should re- ity—all of those things we have learned been the keys that have unlocked the store solvency to Social Security and to count on as citizens of the richest potential of our economy. I can’t think Medicare, and then we should prevent nation the world has ever known—com- of anything more likely to throw both further erosion in funding for national bined now comprise just 6.5 percent of of those keys out the window than a re- security, law enforcement, education, GDP. But the surpluses my colleagues turn to unbalanced budgets. and the other basic functions of a expect to be there to pay for this tax That is why I will oppose a tax cut of space-age, high-technology, industrial cut depend on pushing that down to the size before us here today. Not be- economy. just 5 percent of GDP—a further cut of cause Americans don’t deserve tax re- I think we can do all that, Mr. Presi- more than 20 percent. lief—of course they do. But they also dent, and still provide tax relief to the But after years of defense cuts at the deserve our best judgement about how millions of Americans whose hard work end of the Cold War, the Pentagon is we manage the public finances of their and sacrifice—through downsizing, re- asking for substantial increases to country after so many years of deficit structuring, and all the rest—has been meet future threats. I agree with those financing. And as far as I’m concerned, the real driving force behind the re- who see the need for further invest- I’ll take my guidance from the com- markable economy we enjoy today. ments in our nation’s defense. If we ac- mon sense of the average American But as we all know, Mr. President, tually increase defense spending to family, and put first the priorities of the forecasts on which our projected meet that request, we would have to debt reduction, Social Security and surpluses are based make a lot of as- cut the remaining functions of the fed- Medicare, funding national security sumptions. That’s all well and good for eral government by almost forty per- and law enforcement, education and making long-term economic projec- cent. health care, and then, a more prudent, tions. But it is not good enough, as far Now, Mr. President, I hear a lot of sensible tax cut. as I’m concerned, for making long term calls for responsible budgeting these Mr. DOMENICI. Mr. President, pursu- economic policy. days, but I don’t hear many people ant to section 313(c) of the Congres- I ask my colleagues to listen to some calling for cutting forty percent from sional Budget Act of 1974, I submit for of these assumptions, and to answer our law enforcement, education, or the RECORD a list of material consid- honestly if our country can really af- health care programs. For example, ered to be extraneous under sub- ford the nearly $800 billion tax cut be- cuts of those size would eliminate sections (b)(1)(A), (b)(1)(B), and fore us today. health care for 1,430,000 of our coun- (b)(1)(E) of section 313. The inclusion or The surplus that is forecast assumes try’s veterans. Cuts of that size would exclusion of material on the following no major interruption in the economic eliminate $6.0 billion from the research list does not constitute a determina- growth we have enjoyed in what is now into cancer and other diseases at the tion of extraneousness by the Presiding the longest economic expansion in our National Institutes of Health. Cuts of Officer of the Senate. history. That unprecedented economic that size would require the FBI to cut Title III, subtitle E, sec. 345—Protection of growth has kept revenues strong over 4,000 agents from its current force Investment of Employee Contributions to enough to meet and exceed our spend- of 10,600. 401(k) plans—(b)(1)(A). ing plans. But as Alan Greenspan has That’s what a $800 billion tax cut Title III, subtitle F, sec. 351—Periodic Pen- reminded us, it is not a question of if, would require, Mr. President—either sion Benefits Statements—(b)(1)(A). but when, that growth will slow. Still, cuts of unacceptable size in basic serv- Title III, subtitle F, sec. 356—Notice and those who call for an $800 billion tax ices, or, just as bad, we would simply Consent Period Regarding Distributions— cut are basing policy on the false hope return to the destructive path of def- (b)(1)(A). Title III, subtitle G, sec. 369—Annual Re- that inevitable day will never come. icit spending. port Dissemination—(b)(1)(A). Mr. President, the surplus that some Mr. President, one thing that ought Title III, subtitle H, sec. 371—Provisions of my colleagues want to use to pay for to sober us up is what Alan Greenspan Relating to Plan Amendments—(b)(1)(A). this tax cut also assumes that there has been saying about delaying any tax Title IV, sec. 407—Federal Guarantee of will be no emergencies—no Bosnias, no cut until the surpluses actually mate- School Construction Bonds by Federal Home Kosovos, no Iraqs, no hurricanes, no rialize, until a downturn in the econ- Loan Banks—(b)(1)(A). floods—that could increase spending, omy might justify the boost that would Title IX, sec. 905—Advance Pricing Agree- even though we regularly spend an av- come from a tax cut. Twice he has ments Treated as Confidential Taxpayer In- formation—(b)(1)(A). erage of $8 billion a year on such emer- come here to Congress in the past two Title X, subtitle C, sec. 1071—Study Relat- gencies. weeks, to tell us that he continues to ing to Taxable REIT Subsidiaries—(b)(1)(A). The surplus also assumes that we be concerned about our economy over- Title XIV, sec. 1401—Amendments Relating will continue deep cuts in national de- heating, and that he is prepared to to Tax and Trade Relief Extension Act of fense, in education, health care, law bump interest rates up again to pre- 1998—(b)(1)(A). enforcement, in environmental protec- vent that from happening. Title XIV, sec. 1402—Amendment Related tion. It assumes that we will continue Every American with a mortgage to Internal Revenue Service Restructuring to reduce spending beyond the current should think long and hard about the and Reform Act of 1998—(b)(1)(A). levels, levels that are already causing trade off between a tax break now and Title XIV, sec. 1403—Amendments Related to Taxpayer Relief Act of 1997—(b)(1)(A). gridlock in our budget process this the long term costs that an increase in Title XIV, sec. 1404—Other Technical Cor- year. Right now, Mr. President, spend- interest rates would mean. The Treas- rections—(b)(1)(A). ing for the basic functions of govern- ury Department estimates that a Title XIV, sec. 1405—Clerical Changes— ment—as well as the number of people household in the lower 60 percent of (b)(1)(A).

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9930 CONGRESSIONAL RECORD — SENATE July 30, 1999 Mr. HELMS. Mr. President, I genu- the willingness of Chairman ROTH to porate taxation,’’ said Richard E. Andersen inely appreciate the courtesy of the work with me to find a way to make of the law firm Jones, Day, Reavis & Pogue. distinguished Chairman of the Finance this tax credit a reality. He said the size of the award, expected to ultimately be the full $180 million plus interest Committee (Mr. ROTH) for allowing me EXHIBIT 1 that NetWest sought, and the ‘‘drubbing’’ the to discuss an innovative new tech- [From the New York Times, July 7, 1999] I.R.S. took from the judge ‘‘will force the nology more readily available to the BRITISH BANK WINS DISPUTE WITH THE I.R.S. I.R.S. to think hard about thumbing their dry cleaning industry. JUDGE RULES TAX TREATY SUPERSEDES nose at this because if they do, they will Dr. Joe DeSimone, an highly-re- REGULATION have to devote a lot of legal resources to spected professor on the faculties of (By David Cay Johnston) fighting other cases on similar issues and both the University of North Carolina they will probably lose.’’ In a stunning defeat for the Internal Rev- Mr. Andersen and other lawyers said that at Chapel Hill and N.C. State Univer- enue Service’s efforts to restrict strategies sity in Raleigh has developed an envi- because of its enormous market the United that foreign corporations employ to avoid States had been able to ‘‘get away with’’ ig- ronmentally safe way to dry clean taxes, a Federal judge ruled in favor of Na- noring tax treaties. ‘‘The fact is no bank has clothes while eliminating the millions tional Westminister Bank P.L.C. of Britain withdrawn from the U.S. because of this of pounds of toxic solvents currently in its demand for a $180 million tax refund. issue,’’ he said. now being used to clean clothes, and, Lawyers who specialize in international Arthur D. Pasternak, an international tax at the same time, advancing more en- corporate tax said yesterday that the deci- specialist at Gibson, Dunn & Crutcher, said sion would prompt more foreign companies that ‘‘the I.R.S. has this no-cheating concept ergy-efficient technology. This proce- to challenge the I.R.S. in future cases and to dure would dramatically reduce the dry that, to its credit, it tends to apply evenly to press for favorable rulings on issues cur- American and foreign corporations operating cleaning industry’s reliance on haz- rently in dispute. in the United States.’’ ardous chemicals as solvents. Judge James T. Turner of the United ‘‘And the I.R.S. has become much more ag- My amendment will allow for a 20 States Court of Claims ruled Wednesday that gressive in recent years in fighting what it percent tax credit to new and existing the I.R.S had violated a 1980 tax treaty be- regards as using tax treaties for aggressive dry cleaners who purchase the equip- tween the United States and Britain by re- tax avoidance,’’ he said. ‘‘The general rule is ment which uses non-toxic solvents. fusing to allow NatWest to deduct interest that the United States Government has been on loans from its home office and Hong Kong saying that statutes passed by Congress can The equipment includes both wet operations to its American branches from cleaning and liquid carbon dioxide override existing treaties, but this case 1981 to 1987. shows that mere regulations can’t override cleaning systems which are now read- In effect NatWest was taking money from treaties.’’ ily available. In fact, the EPA recently one pocket, in, say, Hong Kong, and lending Sydney E. Unger, chairman of the tax de- published a case study extolling the it to another pocket in, say, New York. partment at Kaye Scholer Fierman Hays & benefits of carbon dioxide technology. Doing this allowed the bank to reduce its Handler in New York, said that foreign cor- The Joint Tax Committee estimates profits, and thus its taxes, in the United porations operating in the United States the tax credit would decrease revenues States and to shift profits to places, like were a convenient target for American poli- by a little more than $500 million dur- Hong Kong, where tax rates are lower. ticians and that the regulation the judge The 1980 tax treaty allowed NatWest and ruled on illustrated this. ing the next 10 years. I find this a mod- all other British banks to take such deduc- ‘‘Fundamentally, there has been a sense at est price to pay considering the tions. NatWest contended that under the tax Treasury and among politicians that foreign amount Americans rely on dry cleaners treaty its American branch must be treated entities with operations in the United States and by the fact that so many of these as a separate company and not just another are not paying their far share of tax,’’ Mr. Americans bring potentially hazardous pocket in its worldwide operations. Unger said. ‘‘Whether that is true or not, chemicals into their homes when they But the Treasury Department, ever on the certainly it is a wonderful issue for Amer- dry clean their clothes. alert for abusive tax strategies, issued a reg- ican politicians and for Treasury officials to I believe that clarification of a ulation shortly after the treaty took effect want to pursue because it’s about taxing allowing the I.R.S. to disregard any deduc- someone else, who doesn’t vote.’’ Treasury regulation’s application to an tions deemed excessive. The regulation lets Inland Revenue, the British tax agency, international tax treaty would provide the I.R.S. apply a complicated formula to al- filed a friend-of-the-court brief supporting an ample offset for this tax credit. Let locate interest based on a company’s world- NatWest. me briefly explain the current situa- wide operations. Jerome Libin, a tax specialist in the Wash- tion: But, Judge Turner wrote, the Treasury reg- ington office of Sutherland Asbill & Brennan Just this month, a judge in New York ulation is ‘‘fundamentally incompatible’’ who filed the brief, said that Inland Revenue overturned 19 years of tax treaty pol- with the tax treaty and must be ignored. In believed that even if NatWest’s interest de- icy. The judge ruled that an existing his 21-page decision, he also castigated the ductions were dubious—and that point was United States for its conduct, quoting in de- not conceded—the deductions still had to be regulation that permits the Treasury tail from written promises made during the allowed under the tax treaty. to allocate interest based on a com- treaty negotiations and other documents to Mr. Libin won a similar case three years pany’s worldwide operations did not show that NatWest was justified in relying ago in United States Tax Court over a tax comply with the 1980 treaty. I disagree. on the tax treaty in preparing its corporate treaty with Canada, but that case involved The regulations allowed the U.S. tax returns for the I.R.S. allocating income, while the NatWest case Treasury to disallow abusive tax strat- The judge said the regulation ‘‘plainly vio- involved allocating deductions. egies and make sure that these compa- lates’’ the tax treaty and he characterized He said that in newer tax treaties the the reasoning behind it as ‘‘fundamentally United States had sought to reserve a right nies pay their fair share of taxes. Tax flawed.’’ to disallow deductions if it could show that treaties are never intended to be a He did not award the $180 million, plus in- they were abusive. means to avoid taxes, simply a means terest, to NatWest, however. Instead, Judge One of NatWest’s lawyers, Jerry Snider of to prohibit double taxation. This Turner ruled in the bank’s favor on the issue Davis Polk & Wardwell, called Judge Turn- amendment will continue this policy in a pretrial hearing. er’s decision ‘‘a terrific, thorough and care- and avoid a rush for billions of dollars Tax lawyers said the United States can fully written opinion.’’ in tax refunds by international cor- now appeal the judge’s ruling, continue the The Internal Revenue Service declined to comment or even to make documents avail- porations. case and then appeal the entire case, or go to Congress for relief or give up. able. It referred questions to the Treasury Mr. President, I ask unanimous con- The case may cause a stampede by other Department, where a spokeswoman, Maria sent that an article from the July 9 foreign banks to recover billions of dollars in Ibanez, offered to make a senior official edition of The New York Times enti- taxes paid when their interest deductions available for an interview on condition that tled ‘‘British Bank Wins Dispute With were curtailed. More broadly, the case is an he neither be identified nor quoted directly. the IRS’’ be printed in the RECORD at important development in a growing global That offer was declined. the conclusion of my remarks. battle between multinational corporations, The Justice Department said last night The PRESIDING OFFICER. Without which want to take profits and pay taxes in that senior officials who could discuss the countries of their choice, and national gov- case had left and could not be reached for objection, it is so ordered. comment. (See Exhibit 1.) ernments that would be protect the integrity of their tax regimes and maximize tax reve- NatWest sold its American retail branches Mr. HELMS. Unfortunately, Mr. nues, a variety of tax lawyers said yesterday. to the Fleet Corporation of Boston in Decem- President, under the rules of the budg- ‘‘This is a tremendously important deci- ber 1995. et act, my amendment is subject to a sion, although it specifically involves a Mr. ROTH. Mr. President, I appre- point of order. However, I do appreciate backwater of the issues about global cor- ciate the courtesy of the Senator from

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9931 North Carolina in working with us to fore the Senate. Furthermore, the Re- spending over the next 10 years. That expedite consideration of the Taxpayer publican tax cuts of $792 billion would, being the case, wouldn’t it be prudent Refund Act by not asking for a roll call if enacted, also result in increased in- to reduce the $996 billion projection by vote in relation to his amendment. terest on the Federal Debt over the at least the $80 billion historical aver- This is certainly an interesting idea, next 10 years totaling $179 billion. In age per decade that we have seen in the and my staff and I look forward to reality, then, the Republican tax cut past? After so doing, even if Congress working with him in the future to ex- bill eats up $971 billion of the $996 bil- and the Administration agreed to the plore the possibility of a drycleaning lion in projected non-social security $775 billion of cuts in purchasing power equipment tax benefit. surpluses over the next 10 years, leav- for national priorities that the Repub- REPUBLICAN TAX CUT PLAN ing only $25 billion remaining. lican tax cut bill requires, there would Mr. BYRD. Mr. President, I will vote We should heed the advice of Federal not be sufficient surpluses remaining against this Republican tax cut plan. I Reserve Chairman Greenspan in his to cover this Republican tax cut plan cannot conceive of a more ill-advised testimony before Congressional Com- without either reverting back into def- fiscal plan for the Nation over the next mittees when he advised caution when icit spending, or repealing the tax cut, 10 years than the Republican tax cut considering what to do with these pro- or dipping into the Social Security bill. I say this for a number of reasons. jected surpluses. In the first place, it is Trust Fund surpluses. Having seen the National debt ex- extremely unlikely that these projec- Next, let’s look at the question of plode from less than $1 trillion on the tions will come true. The fact is that whether Congress can, or should, stay day that President Reagan took office CBO’s estimates of revenues over the within the existing spending caps for to over $5.6 trillion today, we should past two decades have been off by an FY2000, much less the more difficult have learned that the supply-side eco- absolute average of $38 billion per year; caps of FY2001 and FY2002. One need nomic theories of the Reagan-Bush their estimates on spending over that only pick up the morning newspaper on years, which called for massive tax period have been off by $36 billion per any one of the past several days to find cuts together with a massive defense year; and their deficit/surplus projec- an article or two discussing the build-up, while at the same time bal- tions have been off by an absolute aver- progress, or lack thereof, that the Ap- ancing the federal budget, are pure, un- age of $54 billion per year over the past propriations Committees are making adulterated hogwash. They didn’t work two decades. If these averages hold up in completing action on the FY2000 then; they won’t work now. over the next 10 years, the trillion-dol- funding bills. Recently, it is reported, Thankfully, due to a number of fac- lar non-social security surpluses could the House Appropriations Committee tors—for example, the fiscal policies of be slashed by $540 billion purely due to found that the VA–HUD Subcommittee the Federal Reserve, and improvements mis-estimates by the Congressional could not stay within its allocations in the productivity of the Nation’s Budget Office. Further, as CBO states without declaring some $3 billion in businesses—we have been able not only in virtually every report that they pub- funding for VA medical care, as well as to stem the tide of red ink that ran lish, cyclical disturbances such as re- $2.5 billion in FEMA funding, as ‘‘emer- into the triple-digit billion-dollar lev- cessions, changes in interest rates, in- gency’’ spending, which as I have ex- els for each of the Reagan-Bush years flation, etc., could have significant ef- plained earlier, does not count against but, if the latest projections of both fects on their projected surpluses at the spending caps, but will, nonethe- the OMB and CBO pan out, we also can any time during the projection period. less, decrease the surplus. Addition- look forward to huge federal surpluses Then, there is the question of emer- ally, some $4.5 billion has been de- each year as far as the eye can see. gency spending. As Senators are aware, clared emergency spending for the De- That’s good news, if those projections under the Budget Enforcement Act, un- cennial Census by the House Appro- come true and if Congress is able to foreseen emergencies, which cannot be priations Committee. Those three withstand another round of tax cut predicted accurately and, therefore, items alone, if enacted as emergency fever. are not budgeted, are allowed to be spending, will cut the projected FY2000 The Congressional Budget Office funded outside the spending caps that surplus by $10 billion. Furthermore, as projects surpluses over the next ten have been in place since 1990 and which CBO points out on page 6 of their mid- years (FY 2000–2009) totaling nearly $3 will remain in place through FY2002. Session Review, they have been di- trillion. Of that amount, about $2 tril- The fact is, emergency spending over rected by the Budget Committees to re- lion would be surpluses in the Social the past decade (other than spending duce their outlay projections in FY2000 Security Trust Fund, and the other $1 for Desert Storm/Desert Shield and the by $10 billion for defense, $1 billion for trillion ($996 billion to be exact) would $21 billion in emergency spending in transportation, and $3 billion for other be non-social security surpluses. How- the FY1999 Omnibus Appropriations non-defense programs. That knocks an- ever, a closer look at these non-social Act) has averaged $8 billion per year. other $14 billion dent in CBO’s non-so- security surpluses projected by CBO In other words, but for those two in- cial security surplus projections for over the next ten years, reveals that stances, Congress has enacted spending FY2000. On that same page, CBO also they rest on a very shaky foundation. outside of the budgetary caps for such points out that their non-social secu- The fact is, these non-social security things as disaster assistance to the na- rity surplus projections exclude some surpluses which are projected to total tion’s farmers, relief for victims of $3 billion per year in spending for the $996 billion, are based in large part on floods, hurricanes, tornadoes, and administrative expenses of the Social huge cuts in investments and national earthquakes, as well as assistance for Security Administration. When all of priorities—such as national security, victims of similar occurrences over- these factors are taken into account, veterans’ medical care, the FBI and seas. for FY2000, actions by Congress to date other crime-fighting programs, the en- That type of assistance has averaged have already added emergency spend- vironment, agriculture, border patrol $8 billion per year since 1990. There is ing of some $10 billion; and have in- agents, health research, education, and no indication that these natural disas- creased outlays by $14 billion. This $24 many other critical programs. Of the ters will suddenly cease. To the con- billion, together with the $3 billion in $996 billion in non-social security sur- trary, there is substantial evidence administrative expenses for the Social pluses projected by CBO for the next 10 that they have become more frequent Security Administration, means that years, $595 billion results from real and and more severe in the latter part of Congress is likely to not only spend all devastating cuts in these national pri- this Century. What does this mean? It of the $14 billion FY2000 non-social se- orities. As if that were not bad enough, means that it is highly likely that over curity surplus projected by CBO, but, the Republican tax cut plan calls for the next decade, at least $80 billion in actually, to exceed it by at least $13 additional cuts of some $180 billion to emergency spending will be needed. billion. In other words, it is highly these same programs. That makes a But, keep in mind that the $996 billion likely that for FY2000 alone, Congress total of $775 billion in cuts in these na- in non-social security surpluses pro- and the Administration will enact tional investments over the next 10 jected by CBO, the large bulk of which spending levels which will not only use years. That is what is being proposed results from real cuts in national prior- up the entire $14 billion non-social se- in the Republican tax cut bill now be- ities, does not allow for any emergency curity surplus projected for that year,

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9932 CONGRESSIONAL RECORD — SENATE July 30, 1999 but will also eat into the Social Secu- be undertaken if we were to enact this spent—either to address public needs or rity Trust Fund surpluses by at least Republican tax cut. to cut taxes—is only slightly above $13 billion. So much for the Social Se- Mr. KENNEDY. Mr. President, very $800 billion. Their $792 billion tax cut curity Lock-box! Congress has already few decisions we make in Congress will will consume the entire surplus. found the key that unlocks it. What have more impact on the long-term Even more troubling, the Republican about next year, when the spending economic well-being of our nation than tax cut has been designed to expand caps are much tougher to stay within? how we allocate the projected surplus. dramatically beyond the tenth year. Is one to believe that Congress will By our votes this week, we are setting The cost between 2010 and 2019 will make the Draconian cuts in national priorities that will determine whether dwarf the cost in the first decade. It priorities that would be called for to the American economy is on firm will rise from $800 billion to $2 trillion stay within the Republican tax plan? If ground or dangerously shifting sand as dollars. And the cost of the debt serv- not, further erosion of these projected we enter the 21st century. These votes ice payments necessitated by a tax cut surpluses will occur. Keep in mind that will determine whether we have the fi- of that magnitude will grow exponen- once tax cuts are enacted, those reve- nancial capacity to meet our respon- tially as well. The GOP plan will usher nues are gone, and can only be re- sibilities to future generations, and in a new era of deficits—just as the trieved by repealing the tax cuts. Does whether we have fairly shared the eco- baby boom generation is reaching re- anyone think that Congress will do nomic benefits of our current pros- tirement age. that in an Election Year? If not, then it perity. Sadly, the legislation before us While the Senate Rules have been in- is a foregone conclusion that the sur- today fails all of these standards. We voked to prevent the current tax cut plus projections for even the upcoming should vote to reject it. from going beyond ten years, the Re- three fiscal years, to say nothing of the A tax cut of the enormous magnitude publican leadership has made clear remaining seven years of the next dec- proposed by our Republican colleagues their intent to make these massive ade, will be eaten away because they would reverse the sound fiscal manage- cuts permanent. If these tax cuts were are based on virtually impossible, and ment which has created the inflation- to become permanent, they would pre- extremely unsound, cuts in spending on free economic growth of recent years. cipitate a genuine fiscal crisis. Most Americans understand the word national priorities. Keeping two sets of That is the clear view of the two prin- ‘‘surplus’’ to mean dollars remaining books, as the Republicans are attempt- cipal architects of our current pros- after all financial obligations have ing to do, won’t fool the American peo- perity—Robert Rubin and Alan Green- span. Devoting the entire on-budget been met. If that common sense defini- ple for very long. tions is applied to the federal budget, In closing, Mr. President, let me surplus to tax cuts will deprive us of the surplus would be far smaller than quote from the text of a recent state- the funds essential to preserve Medi- care and Social Security for future $996 billion. ment by 50 of the Nation’s most re- We have existing obligations which vered economists, including six Nobel generations of retirees. It will force harsh cuts in education, in medical re- should be our first responsibility. We laureates, concerning the tax cuts now have an obligation to preserve Medi- before the Senate. search, and in other vital domestic priorities. This tax cut jeopardizes our fi- care for future generations of retires, The federal budget is projected to show and to modernize Medicare benefits to nancial future—and it also dismally substantial surpluses over the next 15 years. include prescription drug assistance. These surpluses offer an exceptional oppor- flunks the test of fairness. When fully The Republican budget does not pro- tunity to pay down government debt and implemented, the Republican plan vide one additional dollar to meet thereby strengthen Social Security and would give 75% of the tax cuts to the Medicare in order to prepare for the retire- these needs. wealthiest 20% of the population. The The American people clearly believe ment of the baby boomers. . . . richest 1%—those earning over $300,000 In contrast, a massive tax cut that encour- that strengthening Social Security and ages consumption would not be good eco- a year—would receive tax breaks as Medicare should be our highest prior- nomic policy. With the unemployment rate high as $23,000 a year, while working ities for using the surplus. By margins at its lowest point in a generation, now is men and women would receive an aver- of more than two to one, they view pre- the wrong time to stimulate the economy age of only $139 a year. serving Social Security and Medicare through tax cuts. Moreover, an ever growing Republicans claim that the ten year as more important than cutting taxes. tax cut would drain government resources surplus is three trillion dollars and We should use the surplus to meet just when the aging of the population starts that they are setting two-thirds of it to put substantial stress on Social Security these existing responsibilities first, in aside for Social Security, and only order to fulfill the promise of a secure and Medicare. Further, the projections as- spending one-third on tax cuts. That sume substantial undesirable reductions in retirement with access to needed med- real spending for non-entitlement programs, explanation is grossly misleading. The ical care. including important public investments. two trillion dollars they say they are If we do nothing, Medicare will be- Given the uncertainty of long-term budget giving to Social Security already become insolvent by 2015. The surplus projections, committing to a large tax cut longs to Social Security. It consists of gives us a unique opportunity to pre- would create significant risks to the budget payroll tax dollars expressly raised for serve Medicare, without reducing med- and the economy. the purpose of paying future Social Se- ical care or raising premiums. The Re- Mr. President, it could not be any curity benefits. Using those dollars to publican tax cut would take that op- clearer to any rational human being fund tax cuts or new spending would be portunity away. It would leave nothing that this Republican tax cut plan is ex- to raid the Social Security Trust Fund. for Medicare. actly the wrong fiscal blueprint for the The Republicans are not providing a We must seize this opportunity. Sen- Nation as we enter the next Millen- single new dollar to help fund Social ate Democrats have proposed commit- nium. As I have shown, it is highly un- Security benefits for future generating one-third of the surplus—$290 bil- likely that these forecasts will come tions. They are not extending the life lion over the next ten years—to true. Even if they do, some $80 billion of the Trust Fund for even one day. It strengthening Medicare and to assist- in emergency spending for natural dis- is a mockery to characterize those paying senior citizens with the cost of pre- asters has not been accounted for; an- roll tax dollars as part of the surplus. scription drugs. The Administration’s other $30 billion in administrative That leaves the $996 billion on-budget 15 year budget plan provides an addi- costs of the Social Security Adminis- surplus as the only funds available to tional $500 billion for Medicare between tration has not been accounted for; and address all of the nation’s unmet needs 2010 and 2014. Enactment of the Repub- the budget caps for FY2000 alone are over the next ten years. Republicans lican tax cut would make this $800 bil- likely to be exceeded by over $20 bil- propose to use that entire amount to lion transfer to Medicare impossible. If lion. Now is not the time to return to fund their tax cut scheme. Since CBO we squander the entire surplus on tax the failed economic policies that pre- projections assume that all surplus dol- breaks, there will be no money left to vailed during the Reagan-Bush years. lars are devoted to debt reduction, the keep our commitment to the nations’ Rosy Scenario in all her splendor could $996 billion figure includes nearly $200 elderly. not make their policies work. The billion in debt service savings. The Unless we use a portion of the surplus same is true of the policies that would amount which is available to be to strengthen Medicare, senior citizens

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9933 will be confronted with nearly a tril- Our Republican friends claim that For two-thirds of America’s senior lion dollars in health care cuts and pre- these enormous tax cuts will have no citizens, Social Security retirement mium increases. We know who the peo- impact on Social Security, because benefits provide more than 50% of their ple are who will be asked by the Repub- they are not using payroll tax reve- annual income. Without Social Secu- licans to carry this enormous burden. nues. On the contrary, the fact that the rity, half the nation’s elderly would be The typical Medicare beneficiary is a Republican budget commits every last living in poverty. Social Security en- widow, seventy-six years old, with an dollar of the on-budget surplus to tax ables millions of senior citizens to annual income of $10,000. She has one cuts does imperil Social Security. spend their retirement years in secu- or more chronic illnesses. She is a First, revenue estimates projected rity and dignity. A Republican tax cut mother and a grandmother. Yet the Re- ten years into the future are notori- of the magnitude proposed here today publican budget would force deep cuts ously unreliable. As the Director of the will put their retirement security in in her Medicare benefits, in order to Congressional Budget Office candidly serious jeopardy. pay for new tax breaks for the wealthy. acknowledged: The votes which we cast this week— As a result, elderly women will be un- Ten year budget projections are highly un- the choices which we are required to able to see their doctor. They will go certain. In the space of only six months, make—will say a great deal about our without needed prescription drugs, or CBO’s estimate of the cumulative surplus values. We should use the surplus as an without meals or heat, so that wealthy has increased by nearly $300 billion. Further opportunity to help those in need—sen- Americans earning hundreds of thou- changes of that or a greater magnitude are ior citizens living on small fixed in- sands of dollars a year can have addi- likely—in either direction—as a result of comes, children who need educational tional thousands of dollars a year in economic fluctuations, administrative and opportunities, millions of men and judicial actions, and other developments. tax breaks. women whose lives may well depend on The projected surplus also assumes Despite this warning, the Republican medical research and access to quality drastic cuts in a wide range of existing tax cut leaves no margin for error. If health care. We should not use the sur- programs over the next decade—cuts in we commit the entire surplus to tax plus to further enrich those among us domestic programs such as education, cuts and the full surplus does not ma- who are already the most affluent. The medical research, and environmental terialize, Social Security revenues will issue is a question of fundamental val- cleanup; and cuts in national defense. be required to cover the shortfall. We have an obligation to adequately ues and fundamental fairness. Second, even if the projected surplus The Republican tax cut would con- fund these programs. If existing pro- does materialize, the cost of the Repub- sume the entire surplus, and distribute grams merely grow at the rate of infla- lican budget exceeds the surplus in five the overwhelming majority of it to tion over the next decade and no new of the next ten years—2005, 2006, 2007, those with the highest incomes. The programs are created and no existing 2008, and 2009. Unless the Republican authors of the Republican plan have programs are expanded, the surplus proposal is restructured, Social Secu- highlighted the reduction of the 15% would be reduced by $584 billion dol- rity revenues will be required to cover tax bracket to 14%. They have pointed lars. That is the amount it will cost to the shortfall in each of those years. merely continue funding current dis- to this as middle class tax relief. But Third, the Republican tax cut leaves that relief is only a small part of the cretionary programs at their inflation- no money to pay for emergency spend- adjusted level. In fact, the real surplus overall tax breaks in their bill. It ac- ing, which has averaged $9 billion a counts for only $216 billion of the $792 over the next ten years is only slightly year in recent years. Over the next dec- above $200 billion, roughly one-quarter billion in GOP tax cuts. Most of the re- ade, we are likely to need approxi- maining provisions are heavily weight- the size of the proposed Republican tax mately $90 billion to cover emergency cut. ed toward the highest income tax- needs. That money has to come from payers. In other words, the Republican tax somewhere. With the entire surplus cut would necessitate more than a If the Republican plan were enacted spent on tax cuts, the Social Security twenty percent across the board cut in and fully implemented, nearly 50% of Trust Fund will have to fund these discretionary spending—in both domes- the tax benefits would go to the richest emergency costs as well. tic and national defense—by the end of 5% of taxpayers, and more than 75% of The three threats to Social Security the next decade. If defense is funded at the benefits would go to the wealthiest I have described are very real. How- the Administration’s proposed level, 20%. Those with annual incomes ex- ever, there is an even greater impact of and it is highly unlikely that the Re- ceeding $300,000 would receive tax the Republican plan on the future of publican Congress will do less, domes- breaks of $23,000 per year. The lowest Social Security. As I noted earlier, tic spending would have to be cut 38% 60% of wage-earners would share less that plan does not provide Social Secu- by 2009. No one can reasonably argue than 11% of the total tax cuts—they that cuts that deep should be made, or rity with a single new dollar to fund fu- would receive an average tax cut of will be made. ture benefit payments. only $139 per year. That gross disparity We know what cuts of this magnitude In contrast, the Administration has is unfair and unacceptable. would mean in human terms by the end proposed using a major portion of the This is not the way the American of the decade. We know who will be surplus to strengthen Social Security people want to spend their surplus. I hurt: 375,000 fewer children will receive for future generations of retirees. Be- urge my colleagues to reject this bill. a Head Start; 6.5 million fewer children ginning in 2011, the President’s budget The American people deserve better will participate in Title I education allocates to Social Security the sav- than this. programs; 14,000 fewer biomedical re- ings which will result from debt reduc- Mr. DASCHLE. Mr. President, as the search grants will be available from tion. Between 2011 and 2014, the Social debate on the Senate’s version of the the National Institutes of Health; Security Trust Fund would receive 543 reconciliation tax bill winds down, I 1,431,000 fewer veterans will receive billion new dollars from the surplus, wanted to come to the floor and say a V.A. medical care; and there will be and it would receive an additional $189 few words about where we are in this 6,170 fewer Border Patrol agents and billion each year after that. As a re- process, how we got here, and where I 6,342 fewer FBI agents insuring safer sult, the solvency of Social Security think we ought to go. communities. These are losses that the would be extended for a generation, to Let me begin by saying that the dis- American people are not willing to ac- well beyond 2050. cussions we have seen on the Senate cept. The Republican tax cut proposal, floor these past few days should lead The Democratic alternative would re- which costs over $2 trillion between all of my colleagues—Democratic and store $290 billion, substantially reduc- 2010 and 2019, will consume all of the Republican alike—to agree on one ing the size of the proposed cuts. A sig- surplus dollars which were intended for thing: the issues affected by this bill— nificant reduction would still be re- Social Security. There will be nothing Social Security, Medicare, education, quired over the decade. One thing is left for Social Security. As a result, no tax relief—are serious and should not clear—even with a bare bones budget, new dollars will flow into the Trust fall prey to political gamesmanship. It we cannot afford a tax cut of the mag- Fund, and the future of Social Security is not an overstatement to say that the nitude the Republicans are proposing. will remain clouded. nation’s economic and fiscal health are

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9934 CONGRESSIONAL RECORD — SENATE July 30, 1999 at stake. What we do on these issues The question for the Congress and the our course is followed, eventually will affect the lives of millions of American people is which road will we eliminate it. Democrats invest some of Americans for decades to come. take—the dangerous one or the respon- the non-Social Security surplus in crit- The discussion has also revealed an- sible one? Will we build on our success ical priorities, such as defense, edu- other truth. The debate on the proper or put our national health at risk? cation, veterans’ health, agriculture, course for this nation and its people as After carefully listening to the de- and NIH. Finally, Democrats believe in we head into the 21st century is really bate, it is apparent to me that many on a significant, responsible tax cut. a tale of two paradigms. the other side of the aisle would like to It is projected there will be sufficient The Republican vision for the future do it all over again. I have heard some resources to do all of this. Yet, Repub- is to replay the past. They would have of the same old, dangerous rhetoric and licans refuse to do most of it. Instead, us follow their economic policies of the false rosy scenarios I heard in the early they choose to follow a course that has 1980s, a course that can best be charac- 1980s. Like then, I have heard mis- become all too familiar to Americans. terized as one of both wishful thinking leading representations of government Republicans again choose to pursue and fiscal disaster. This is a course of spending—both current and future. I ideologically extreme positions that irresponsible tax breaks for the have again heard talk of irresponsible best serve special interests instead of wealthiest among us. This is a course tax cuts tilted to the wealthy and spe- the needs of ordinary, hard-working of voodoo economics, where providing cial interests. Once again, my Repub- Americans. The Senate has seen this huge tax breaks to the wealthiest was lican colleagues are proposing that we before, on the overall budget plan, on to somehow benefit everyone and re- give short shrift to Medicare and, in a juvenile justice, and, most recently, on duce government deficits. new twist, a prescription drug benefit the Patients’ Bill of Rights. As history demonstrates, this really as well. And finally, Republicans are This is not a political game. We face was a course of rosy scenarios and dis- again proposing massive cuts in edu- serious challenges and historic oppor- astrous results. The benefits of their cation, veterans’ health, defense and tunities. We have wasted precious tax breaks were, not surprisingly, es- agriculture. These cuts are as unprece- time. The list of unresolved items that sentially confined to the wealthiest. dented as they are unrealistic. If one the Senate should address is a long Small deficits turned into massive assumes the Republicans simply match one. And time is short. I hope that ones. Government debt exploded, quad- the President’s defense spending pro- when we come back next week and in rupling in the 1980s. Unemployment posals, all remaining discretionary pro- September, Republicans will discard averaged 7.1 percent in the previous grams would have to be cut by 38 per- their agenda written by special inter- decade. Median family income fell cent below today’s levels. If we follow ests and pursue the people’s agenda. If $1,825 in just four years. Welfare rolls the new, phantom baseline created ex- they do so, we can accomplish much to- were up 22 percent. pressly for the floor debate by Senators gether. If they do not, the American The Democratic vision for the future DOMENICI and FRIST, and again exempt people will be the losers. is to continue along the path we set defense, the cuts to all remaining pro- Mr. ROTH. Mr. President, I suggest forth in 1993, a path marked by fiscal grams will easily exceed 50 percent. the absence of a quorum. responsibility and economic pros- Mr. President, it is all the more dis- The PRESIDING OFFICER. The perity. Just to remind my colleagues of appointing to me that in the face of the clerk will call the roll. what we have accomplished since we historic opportunity afforded this body The legislative clerk proceeded to embarked on this road, let me talk by our unmatched fiscal strength, the call the roll. about the state of our economy when Senate is about to fail on three counts. Mr. ROTH. Mr. President, I ask unan- President Clinton took office. The def- The Republican majority is about to imous consent that the order for the icit in 1992 was $290 billion and pro- prevail and pass an irresponsible fiscal quorum call be rescinded. jected to grow to over $500 billion by policy. Their tax cuts would reverse The PRESIDING OFFICER. Without the end of the decade and to continue the progress of the 1990s and lead to us objection, it is so ordered. rising each year thereafter. Again, un- back to huge deficits and more debt. Mr. ROTH. Mr. President, we are now employment was up, and family in- The Republican position also con- ready for final passage. come was down. Welfare rolls were stitutes irresponsible national policy. I ask for the yeas and nays. growing. The cost of the Republican tax cut The PRESIDING OFFICER. Is there a The Democratic-led Congress enacted would explode in the second decade of sufficient second? a comprehensive economic plan in 1993. the 21st century—precisely when the There is a sufficient second. This plan was approved without a sin- baby boomer generation is retiring and The yeas and nays were ordered. gle Republican vote. And today, the re- resources are needed if the federal gov- The PRESIDING OFFICER. The sults are clear. Economists have said ernment is to keep its commitments on question is on the engrossment and this is the strongest U.S. economy they Social Security and Medicare. Finally, third reading of the bill. have seen in a generation. The record the majority has chosen to pursue this The bill was ordered to be engrossed deficits have turned into record sur- course in the face of a certain Presi- for a third reading and was read the pluses—$120 billion this year and larger dential veto, should the bill reach the third time. every year thereafter for at least a dec- President’s desk in something even The PRESIDING OFFICER. The bill ade. We are experiencing the longest close to its current form. having been read the third time, the peacetime economic expansion in this Instead of wasting the precious time question is, Shall the bill pass? nation’s history and, if it continues for of this Congress and the American peo- The yeas and nays are ordered, and several additional months, the longest ple, it would have been better if Repub- the clerk will call the roll. in history, period. Economic growth licans had opted to work together with The legislative clerk called the roll. during this period has averaged 3.5 per- Democrats to develop a fiscally respon- The result was announced—yeas 57, cent—nearly double that experienced sible plan that could get the Presi- nays 43, as follows: during the Reagan-Bush years. Unem- dent’s signature. Democrats have of- [Rollcall Vote No. 247 Leg.] ployment is just over four percent— fered the major parts of such a plan roughly one-half the level during the during the debate. Our plan consists of YEAS—57 Reagan-Bush years. Median income for five components. Democrats protect Abraham Collins Grassley Allard Coverdell Gregg a family of four is up $3,500 since 1993. the entire $1.9 trillion Social Security Ashcroft Craig Hagel Welfare rolls are down 35 percent since surplus; every dollar, every year. Bennett Crapo Hatch 1994. Democrats strengthen and modernize Bond DeWine Helms These are the two choices presented Medicare by setting aside a portion of Breaux Domenici Hutchinson Brownback Enzi Hutchison during this debate—whether we step the on-budget surplus to extend sol- Bunning Fitzgerald Inhofe back into a past filled with record defi- vency and provide a prescription drug Burns Frist Jeffords cits and debt or continue moving for- benefit for Medicare beneficiaries. Campbell Gorton Kerrey Chafee Gramm Kyl ward to sustain the economic and fiscal Democrats pay down the federal gov- Cochran Grams Landrieu progress we have achieved since 1993. ernment’s publicly held debt, and, if

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9935 Lott Roberts Snowe Timothy Dowd, Economist; our side of the aisle. I have said I will Lugar Roth Stevens Mack Santorum Thomas Patrick A. Driessen, Senior Econo- never fail to seek opportunities to con- McCain Sessions Thompson mist; gratulate his generosity. McConnell Shelby Thurmond Christopher P. Giosa, Economist; I have the names of members of our Murkowski Smith (NH) Torricelli Robert C. Gotwald, Refund Counsel; staff we thank, including David Podoff, Nickles Smith (OR) Warner Richard A. Grafmeyer, Deputy Chief Russell Sullivan, and Maury Passman, NAYS—43 of Staff; who is leaving, and others who have Akaka Feingold Mikulski H. Benjamin Hartley, Senior Legisla- worked so hard. I particularly thank Baucus Feinstein Moynihan tion Counsel; Frank Polk and Joan Woodward on Bayh Graham Murray Robert P. Harvey, Economist; Biden Harkin Reed your side. Bingaman Hollings Reid David P. Hering, Accountant; I also wish to thank Boxer Inouye Robb Harold E. Hirsch, Senior Legislation Dr. David Podoff, Staff Director and Bryan Johnson Rockefeller Counsel; Chief Economist; Byrd Kennedy Sarbanes Cleland Kerry Thomas Holtmann, Economist; Russell Sullivan, Chief Tax Counsel; Schumer Conrad Kohl Melani M. Houser, Statistical Ana- Chuck Konigsberg, Chief Health Specter Daschle Lautenberg Voinovich lyst; Counsel and General Counsel; Dodd Leahy Dorgan Levin Wellstone Allison M. Ivory, Economist; Maury Passman, Tax Counsel; Durbin Lieberman Wyden Deidre James, Legislation Counsel; Stan Fendley, Tax Counsel; Edwards Lincoln M.L. Sharon Jedlicka, Secretary; Anita Horn, Tax Professional Staff The bill (S. 1429), as amended, was Ronald A. Jeremias, Senior Econo- Member; passed. mist; Mitchell Kent, Tax Legislative Re- Mr. MOYNIHAN. Mr. President, I John L. Kirkland, Jr., Staff Assist- search Assistant; move to reconsider the vote. ant; Kristen Testa, Medicaid Professional Mr. ROTH. I move to lay that motion Leon W. Klud, Special Assistant; Staff Member; on the table. Gary Koenig, Economist; Jon Resnick, Health Legislative Re- The motion to lay on the table was Thomas F. Koerner, Associate Dep- search Assistant; agreed to. uty Chief of Staff; Liz Fowler, Medicare Professional Mr. ROTH. Mr. President, I want to Debra L. McMullen, Senior Staff As- Staff Member; give my thanks to the many staff sistant; Julianne Fisher, Assistant to the Mi- members on both sides of the aisle, in- Neval E. McMullen, Staff Assistant; nority Staff Director; cluding my good friend and colleague, David R. Macall, Intern/Tax Policy; Jewel Harper, Receptionist; and our PAT MOYNIHAN, and all the many peo- Laurie A. Matthews, Senior Legisla- interns: Alison Egan, Patricia ple who made this possible. This after- tion Counsel; Daugherty, and Noam Mohr. noon, I think we took a giant step to- Pamela H. Moomau, Senior Econo- FURTHER MODIFICATION TO AMENDMENT NO. 1426 ward getting the American people a tax mist; Mr. ROTH. Mr. President, I ask unan- break. Tracy S. Nadel, Director of Tax Re- imous consent that the Coverdell- I would like to thank the following sources; Torricelli previously agreed to amend- staff on this bill; Frank Polk, Joan John F. Navratil, Economist; ment be modified as follows, and I send Woodward, Mark Prater, Brig Pari, Jeff Joseph W. Nega, Legislation Counsel; it to the desk. Kupfer, Bill Sweetnam, Tom Roesser, Diana L. Nelson, Computer Spe- The PRESIDING OFFICER. Without Ed McClellan, John Duncan, Connie cialist; objection, it is so ordered. Foster, and Jane Butterfield. Hal G. Norman, Computer Specialist; The amendment (No. 1426), as further I also thank: Melissa A. O’Brien, Tax Resource modified, is as follows: Frank Polk, Chief of Staff and Chief Specialist; On page 32, strike lines 6 through 11, and Counsel; Samuel Olchyk, Legislation Counsel; insert: Joan Woodward, Deputy Staff Direc- Christopher J. Overend, Economist; (1) IN GENERAL.—Subparagraph (E) of section 56(b)(1) is amended to read as follows: tor; Lindy L. Paull, Chief of Staff; Oren S. Penn, Legislation Counsel; ‘‘(E) SPECIAL RULE FOR CERTAIN DEDUC- Mark Prater, Chief Tax Counsel; TIONS.—The standard deduction under sec- Alexander Vachen, Chief Social Secu- Cecily W. Rock, Senior Legislation tion 63(c) shall not be allowed and the deduc- rity Analyst; Counsel; tion for personal exemptions under section Brig Pari, Tax Counsel; Lucia J. Rogers, Secretary; 151 and the deduction under section 642(b) Tom Roesser, Tax Counsel; Paul Schmidt, Legislation Counsel; shall each be allowed, but shall each be re- Bill Sweetnam, Tax Counsel; Bernard A. Schmitt, Deputy Chief of duced by $lllll.’’ Jeff Kupfer, Tax Counsel; Staff; On page 32, strike lines 12 through 14, in- Ed McClellan, Tax Counsel; Mary M. Schmitt, Deputy Chief of sert the following: (2) EFFECTIVE DATE.—The amendments Kathy Means, Chief Health Analyst; Staff; Melbert E. Schwarz, Accountant; made by this subsection shall apply to tax- DeDe Spitznagel, Health Analyst; able years beginning after December 31, 2005. Todd Simmens, Legislation Counsel; Monica Tencate, Health Analyst; SEC. ll. LONG-TERM CAPITAL GAINS DEDUC- Darcel Savage; Christine J. Simmons, Secretary; TION FOR INDIVIDUALS. Jane Butterfield; and Carolyn E. Smith, Associate Deputy (a) GENERAL RULE.—Part I of subchapter P Mark Blair. Chief of Staff; of chapter 1 (relating to treatment of capital Further, I wish to thank: Thomas A. St. Clair, Jr., Staff Assist- gains) is amended by redesignating section Carolyn D. Abraham, Secretary; ant; 1202 as section 1203 and by inserting after Robert (Greg) Bailey, Legislation William T. Sutton, Senior Econo- section 1201 the following new section: Counsel; mist; ‘‘SEC. 1202. CAPITAL GAINS DEDUCTION FOR IN- DIVIDUALS. Carl E. Bates, Refund Counsel; Peter M. Taylor, Senior Economist; ‘‘(a) IN GENERAL.—In the case of an indi- B. Jean Best, Secretary; Melvin C. Thomas, Jr., Senior Legis- vidual, there shall be allowed as a deduction John H. Bloyer, Chief Clerk; lation Counsel; for the taxable year an amount equal to the Michael E. Boren, Administrative As- Michael A. Udell, Economist; lesser of— sistant; Carolyn (Morey) Ward, Legislation ‘‘(1) the net capital gain of the taxpayer for Mary Ann Borrelli, Economist; Counsel; the taxable year, or Norman J. Brand, Senor Refund Barry L. Wold, Legislation Counsel; ‘‘(2) $1,000. Counsel; and ‘‘(b) SALES BETWEEN RELATED PARTIES.— Tanya Butler, Secretary; Joanne Yanusz, Secretary. Gains from sales and exchanges to any related person (within the meaning of section William J. Dahl, Senior Computer Mr. MOYNIHAN. Mr. President, I 267(b) or 707(b)(1)) shall not be taken into ac- Specialist; first express my great appreciation to count in determining net capital gain. Debbie A. Davis, Secretary; the chairman. Members may have seen ‘‘(c) SPECIAL RULE FOR SECTION 1250 PROP- Kathleen Dorn, Executive Assistant; the affection with which he is held on ERTY.—Solely for purposes of this section, in

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9936 CONGRESSIONAL RECORD — SENATE July 30, 1999 applying section 1250 to any disposition of regard to paragraph (12) thereof (relating to (The text of the amendment is print- section 1250 property, all depreciation ad- special rule for collectibles).’’ ed in today’s RECORD under ‘‘amend- justments in respect of the property shall be (B) Clause (iv) of section 170(b)(1)(C) is ments submitted.’’) treated as additional depreciation. amended by inserting before the period at Mr. ROTH. I ask unanimous consent ‘‘(d) SECTION NOT TO APPLY TO CERTAIN the end the following: ‘‘and section 1222 shall TAXPAYERS.—No deduction shall be allowed be applied without regard to paragraph (12) that the Senate proceed to the consid- under this section to— thereof (relating to special rule for collect- eration of the House companion bill, ‘‘(1) an individual with respect to whom a ibles)’’. Calendar No. 234, H.R. 2480. I further deduction under section 151 is allowable to (e) CONFORMING AMENDMENTS.— ask consent that all after the enacting another taxpayer for a taxable year begin- (1) Section 57(a)(7) is amended by striking clause be stricken, and the text of the ning in the calendar year in which such indi- ‘‘1202’’ and inserting ‘‘1203’’. Senate bill be inserted in lieu thereof, vidual’s taxable year begins, (2) Clause (iii) of section 163(d)(4)(B) is the bill then be read for the third time ‘‘(2) a married individual (within the mean- amended to read as follows: ing of section 7703) filing a separate return and passed, with a motion to recon- ‘‘(iii) the sum of— sider laid upon the table. I also ask for the taxable year, or ‘‘(I) the portion of the net capital gain re- ‘‘(3) an estate or trust. ferred to in clause (ii)(II) (or, if lesser, the consent that the Senate then insist on ‘‘(e) SPECIAL RULE FOR PASS-THRU ENTI- net capital gain referred to in clause (ii)(I)) its amendment and request a con- TIES.— taken into account under section 1202, reference with the House. I finally ask ‘‘(1) IN GENERAL.—In applying this section duced by the amount of the deduction al- consent that the passage of S. 1429 be with respect to any pass-thru entity, the de- lowed with respect to such gain under sec- termination of when the sale or exchange oc- vitiated and the bill be placed back on tion 1202, plus curs shall be made at the entity level. the calendar. ‘‘(II) so much of the gain described in sub- ‘‘(2) PASS-THRU ENTITY DEFINED.—For pur- The PRESIDING OFFICER. Without clause (I) which is not taken into account poses of paragraph (1), the term ‘pass-thru objection, it is so ordered. under section 1202 and which the taxpayer entity’ means— The bill (H.R. 2480), as amended, was elects to take into account under this ‘‘(A) a regulated investment company, clause.’’ passed. ‘‘(B) a real estate investment trust, (3) Subparagraph (B) of section 172(d)(2) is (The bill will be printed in a future ‘‘(C) an S corporation, amended to read as follows: edition of the RECORD.) ‘‘(D) a partnership, ‘‘(B) the deduction under section 1202 and Mr. BIDEN. Mr. President, I rise first ‘‘(E) an estate or trust, and the exclusion under section 1203 shall not be to compliment my senior colleague ‘‘(F) a common trust fund.’’ allowed.’’ (b) COORDINATION WITH MAXIMUM CAPITAL from Delaware on his effectiveness. We (4) Section 642(c)(4) is amended by striking GAINS RATE.—Paragraph (3) of section 1(h) agree on an awful lot of things. We dis- (relating to maximum capital gains rate) is ‘‘1202’’ and inserting ‘‘1203’’. agreed on this tax bill, but that in no amended to read as follows: (5) Section 643(a)(3) is amended by striking way diminishes my admiration for his ‘‘1202’’ and inserting ‘‘1203’’. ‘‘(3) COORDINATION WITH OTHER PROVI- (6) Paragraph (4) of section 691(c) is amend- effectiveness. As a matter of fact, this SIONS.—For purposes of this subsection, the ed inserting ‘‘1203,’’ after ‘‘1202,’’. is one of the few occasions I wish he amount of the net capital gain shall be re- were not as effective as he has been. duced (but not below zero) by the sum of— (7) The second sentence of section 871(a)(2) ‘‘(A) the amount of the net capital gain is amended by inserting ‘‘or 1203’’ after ‘‘sec- I compliment him and I echo the taken into account under section 1202(a) for tion 1202’’. comments of my friend from New York the taxable year, plus (8) The last sentence of section 1044(d) is who said he is held in affection by ‘‘(B) the amount which the taxpayer elects amended by striking ‘‘1202’’ and inserting Members on both sides of the aisle. I to take into account as investment income ‘‘1203’’. am first among those. I congratulate for the taxable year under section (9) Paragraph (1) of section 1402(i) is amended by inserting ‘‘, and the deduction him for his success. I will not use the 163(d)(4)(B)(iii).’’ word ‘‘deplore,’’ but I disagree strongly (c) DEDUCTION ALLOWABLE IN COMPUTING provided by section 1202 and the exclusion with the outcome. However, I admire ADJUSTED GROSS INCOME.—Subsection (a) of provided by section 1203 shall not apply’’ be- section 62 (defining adjusted gross income) is fore the period at the end. the way in which he—and maybe only amended by inserting after paragraph (17) (10) Section 121 is amended by adding at he—could have been able to put this to- the following new paragraph: the end the following new subsection: gether. ‘‘(18) LONG-TERM CAPITAL GAINS.—The de- ‘‘(h) CROSS REFERENCE.— Mr. ENZI. Mr. President, I congratu- duction allowed by section 1202.’’ ‘‘For treatment of eligible gain not ex- late the chairman of the Finance Com- (d) TREATMENT OF COLLECTIBLES.— cluded under subsection (a), see section mittee and the ranking member of the (1) IN GENERAL.—Section 1222 (relating to 1202.’’ Finance Committee for the out- other terms relating to capital gains and (11) Section 1203, as redesignated by sub- losses) is amended by inserting after para- standing work they have done together section (a), is amended by adding at the end through this week to bring together a graph (11) the following new paragraph: the following new subsection: bill that could have bipartisan support ‘‘(12) SPECIAL RULE FOR COLLECTIBLES.— ‘‘(l) CROSS REFERENCE.— ‘‘(A) IN GENERAL.—Any gain or loss from in the Senate. the sale or exchange of a collectible shall be ‘‘For treatment of eligible gain not ex- I particularly thank Senator ROTH treated as a short-term capital gain or loss cluded under subsection (a), see section for the depth of understanding he has (as the case may be), without regard to the 1202.’’ (12) The table of sections for part I of sub- on tax issues, the way he has worked period such asset was held. The preceding across the aisle, the way he has worked sentence shall apply only to the extent the chapter P of chapter 1 is amended by strik- gain or loss is taken into account in coming the item relating to section 1202 and by through such a variety of measures. puting taxable income. inserting after the item relating to section There were over 126 amendments we ‘‘(B) TREATMENT OF CERTAIN SALES OF IN- 1201 the following new items: have just done. He understood and TEREST IN PARTNERSHIP, ETC.—For purposes ‘‘Sec. 1202. Capital gains deduction. worked through and negotiated those of subparagraph (A), any gain from the sale into a package that I hope will be ac- ‘‘Sec. 1203. 50-percent exclusion for gain or exchange of an interest in a partnership, cepted by the House and signed by the S corporation, or trust which is attributable from certain small business stock.’’ President. to unrealized appreciation in the value of As the accountant in the Senate, I collectibles held by such entity shall be (f) EFFECTIVE DATES.— treated as gain from the sale or exchange of (1) IN GENERAL.—Except as provided in have been fascinated by the debate we a collectible. Rules similar to the rules of paragraph (2), the amendments made by this have had this week. I volunteered to section 751(f) shall apply for purposes of the section shall apply to taxable years begin- serve late a couple of nights. For us ac- preceding sentence. ning after December 31, 2005. countants, what we have seen here this ‘‘(C) COLLECTIBLE.—For purposes of this (2) COLLECTIBLES.—The amendments made week has been live entertainment— paragraph, the term ‘collectible’ means any by subsection (d) shall apply to sales and ex- some of the finest stuff you can see on capital asset which is a collectible (as de- changes after December 31, 2005. television. fined in section 408(m) without regard to AMENDMENT NO. 1496 I know my fellow accountants across paragraph (3) thereof).’’ (Purpose: To provide a manager’s the Nation have been watching. While (2) CHARITABLE DEDUCTION NOT AFFECTED.— amendment) (A) Paragraph (1) of section 170(e) is we did not get the simplification we amended by adding at the end the following The PRESIDING OFFICER. Under would have liked to have had, and that new sentence: ‘‘For purposes of this para- the previous order, amendment No. 1496 simplification is necessary for the graph, section 1222 shall be applied without is agreed to. American people, we have gotten some

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9937 very exciting, necessary provisions, Pact, which would deliver reconstruc- cept for infrastructural projects like some provisions where all Americans tion assistance on a regional basis, I energy and water, which spanned the taxpayer will receive back part of the thought it would be appropriate at this inter-entity boundary line with the overpayment they paid in. time briefly to discuss two alleged his- Federation. That meant that in the im- We have made a dent in the death torical parallels, one of which I believe mediate post-Dayton period the Fed- taxes. We fixed the marriage penalty— is fallacious, the other which I would eration received about ninety-eight eventually, with a start immediately, assert is directly applicable to the cur- percent of American development as- and a myriad of other provisions in rent situation. sistance to Bosnia. At yesterday’s hearing it was as- there that will affect the lives of lit- Largely as a result of this policy, the serted that there was a moral impera- erally every person in the United Federation’s economy immediately tive for NATO countries to offer recon- States. began to recover from the war, while I thank the chairman of the com- struction aid to Serbia just as after the Republika Srpska, under Karadzic’s mittee who has been a part of the last World War II the United States in- control in the town of Pale, stagnated. great tax relief that was done as well cluded Germany in its Marshall Plan as this great tax relief. assistance. But our policy has not been one ex- I thank the chairman and my col- Mr. President, I would submit that clusively of sticks; there have also leagues who worked on and supported this intended parallel falls short in sev- been carrots. If localities in the this measure. eral respects. First of all, in spite of Republika Srpska cooperated with I yield the floor. twelve brutal years of criminal Nazi Dayton implementation, the U.S. Mr. HUTCHINSON. Mr. President, I rule, post-war Germany still had the Agency for International Development also associate myself with the remarks democratic tradition of Weimar as a was prepared to channel assistance to of the Senator from Wyoming com- basis for rebuilding its political sys- them. USAID lays down strict condi- mending Senator ROTH and the Finance tem, with several prominent surviving tions in contracts with the individual Committee for their work on this very leaders. Nothing like that exists in localities. The policy is not perfect, important landmark tax relief legisla- Serbia today. There are no Serbian and it is carefully monitored by Con- tion the Senate passed today. I believe, Konrad Adenauers or Kurt gress. But, in general, it has worked, in taking the step we did today, in low- Schumachers. and it has had positive results. ering the tax burden upon the Amer- Secondly, the United States made as People in the Republika Srpska saw ican people from 21 percent of GDP to preconditions for Marshall plan assist- the economic resuscitation of the Fed- 20 percent of the gross domestic prod- ance adherence to democracy, free- eration and noticed the assistance that uct, we have taken a modest but a very market capitalism, and cooperation a few of their own localities were re- important step in providing relief to with neighboring countries. Needless to ceiving. They compared this modest, all Americans. I commend the Senate say, the Serbia of Slobodan Milosevic but undeniable economic progress with today, and the staff, and ask the Presi- would qualify on none of those the persistent, grinding poverty of dent to reconsider his proposed veto. grounds. most of the Republika Srpska, led by f Finally, in order to guide post-war Karadzic and his corrupt, criminal Germany toward democracy, the vic- MORNING BUSINESS gang in Pale, which had been effec- torious allies occupied the country, di- tively isolated. The indicted war crimi- Mr. HUTCHINSON. Mr. President, I viding up responsibility into four nal Karadzic was finally banned from ask unanimous consent the Senate now zones. The Soviets quickly made clear political life, but one of his puppets proceed to a period of morning business their intention to impose communism took his place. with Senators permitted to speak for in what became East Germany, and up to 10 minutes each. Stalin pressured the East Germans and No matter how ultra-nationalistic or The PRESIDING OFFICER. Without other satellite countries to refuse the even racist many of the people in the objection, it is so ordered. offer of Marshall Plan aid. In the U.S., Republika Srpska were, most of the population caught on pretty quickly f British, and French zones of Germany, however, hundreds of thousands of that their future was an absolute zero BALKAN HISTORICAL PARALLELS troops and civilian officials essentially as long as their current leaders stayed Mr. BIDEN. Mr. President, yesterday ran political life until the Federal Re- in office. the Committee on Foreign Relations public of Germany was established in The result was a reform movement, held a remarkable hearing on the pros- 1949, and allied troops have remained initially led by Mrs. Plavsic, which le- pects for democracy in Yugoslavia. until today. gally wrested control from the Pale Testifying were two of the Administra- It may well be that in order to bring thugs and moved the capital of the tion’s top Balkan experts, two leading Serbia into the family of democratic Republika Srpska to Banja Luka. Last representatives of the non-govern- nations just such an international oc- year she lost an election, but the gov- mental organization community with cupation would have to happen, but it ernment of the Republika Srpska is wide and deep experience in the Bal- is simply not in the cards. now led by Prime Minister Dodik, a kans, the executive director of the Of- So, Mr. President, the alleged par- genuine democrat, who has survived at- fice of External Affairs of the Serbian allel of today’s Serbia with post-war tempts from Belgrade by Milosevic to Orthodox Church in the United States, Germany is totally inappropriate. unseat him, is supported by a multi- and a courageous woman from Belgrade There is, however, a historical par- ethnic parliamentary coalition, kept who chairs the Helsinki Committee for allel chronologically much closer to the lid on the situation during the Human Rights in Serbia. today, which is, in fact, an appropriate Yugoslav air campaign, and now is be- One of the many topics raised during one. That is the case of the Republika ginning to implement Dayton. this hearing was the question of the Srpska, one of the two entities of Bos- correctness of the decision of the nia and Herzegovina. The situation in Bosnia, as we all United States to refuse to give recon- After the Dayton Accords were know, is far from satisfactory, but real struction assistance—as distinct from signed in late 1995 and the two enti- progress has been made. And, back to humanitarian assistance—to Serbia as ties—the Bosniak-Croat Federation my original point, in the Republika long as Slobodan Milosevic remains in and the Republika Srpska—were estab- Srpska we have the real historical par- control in Belgrade. I completely sup- lished, the Congress of the United allel of a policy of excluding a govern- port the Administration’s policy in States put together a reconstruction ment from economic reconstruction as- this matter, which, I am certain, comes assistance package. Because of the bru- sistance as long as it is ruled by an in- as no surprise to any of my colleagues. tal crimes of the Bosnian Serbs under dicted war criminal or his puppet. Since on this very day President Radovan Karadzic from 1992 to 1995, the I hope this discussion of historical Clinton and more than forty other legislation excluded the new Republika precedents may be helpful as the Sen- world leaders are meeting in Sarajevo Srpska, then under Karadzic’s control, ate continues to debate our Balkan re- to discuss a so-called Balkans Stability from any reconstruction assistance ex- construction policy.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9938 CONGRESSIONAL RECORD — SENATE July 30, 1999 REGULATORY OPENNESS AND In response to statements by Tai- cratic and more wealthy, it has become more FAIRNESS ACT OF 1999 wan’s President Lee Teng-hui that dis- aggressive in expressing this wish. cussions and talks between Taiwan and On the one hand, we have China. The Peo- Mr. BURNS. Mr. President I rise ple’s Republic is a doddering, desperate des- today to speak on the Regulatory China should be conducted on a ‘‘spe- potism, in which a corrupt oligarchy pre- Openness and Fairness Act of 1999, of cial state-to-state’’ basis, China has re- sides, only by the power of the gun, over a which I am an original cosponsor. peatedly issued not-so-veiled threats of billion people who would rather live in free- This legislation will ensure that the its intent to use military force against dom. China has always regarded Taiwan as Food Quality Protection Act (FQPA) Taiwan unless President Lee retracts an illegitimately errant province, ultimately will carry out its original intent while his statements. to be subjugated to Beijing’s rule. In recent protecting agricultural producers from What was the response of the Clin- years, as China’s rulers have found them- ton-Gore Administration? Let me ref- selves increasingly uneasy on their thrones, unnecessary regulations. The FQPA, they have attempted, in the usual last refuge enacted in 1996, was put in place to en- erence a news story from the July 26th of dictators, to excite popular support by sure that highest level of food safety. edition of the Washington Post entitled threatening belligerence against an exterior This is a necessary and worthwhile ‘‘Albright, Chinese Foreign Minister enemy—in this case, Taiwan. goal. However, the EPA currently Hold ‘Very Friendly Lunch.’ ’’ The arti- For two decades, the United States has makes rulings that are based on data cle reads in part, supported a deliberately ambiguous policy, without a sound science base. Instead, Lee’s announcement triggered a ferocious which says that there should be ‘‘one China,’’ but carefully does not say who should rule assumptions are based on propaganda response by Beijing. Washington also criti- cized it and dispatched a representative to that China. Ambiguity worked pretty well and worst-case scenarios. for a long time, but it is a Cold War relic This legislation requires EPA to pressure Taiwan to modify its statement. Today, Albright said that Richard Bush, whose logic has expired, and its days are run- modernize the laws governing pesticide the U.S. envoy to Taiwan, told Lee ‘‘that ning out. use, using science-based data and eval- there needs to be . . . a peaceful resolution Two weeks ago, Taiwan’s president, Lee uations. This will ensure that Amer- to this and a dialogue. And I think that the Teng-hui, recognized this reality and said ican consumers will continue to re- explanations offered thus far don’t quite do that henceforth Taiwan and China should ceive the world’s safest food supply, it.’’ deal with each other on a ‘‘state-to-state’’ basis. Beijing reacted with its usual and still allow those agricultural pro- Mr. President, this is an amazing as hysterical bellicosity. This week, Chinese ducers that provide food and fiber the it is outrageous. Rather than defend Foreign Minister Tang Jiaxuan used a ses- means to do so. the Republic of China on Taiwan and sion of the Association of Southeast Asian This bill will also require EPA to es- its right to live in peace and choose its Nations to again threaten Taiwan: ‘‘If there tablish and administer a program for own form of government, Secretary of occur any action for Taiwan independence tracking the effect of regulatory deci- State Albright has a ‘‘very friendly and any attempt by foreign forces to sepa- sions of U.S. agriculture as compared lunch’’ with one of the highest ranking rate Taiwan from the motherland, the Chi- to world trends. Producers in other nese people and government will not sit members of the repressive communist back,’’ Tang said. He added a warning to Sec- countries often do not face the regu- Chinese regime while one of her assist- retary of State Madeleine Albright to ‘‘be latory nightmare American producers ants reprimands and pressures Taiwan very careful not to say anything to fan the do. This will provide a measure for that to appease China. Can it truly be our flames’’ of independence. different and the impact it has on agri- nation’s policy is to protect China from Not to worry. Neither Madame Secretary cultural producers in the U.S. Taiwan? nor anyone else in the Clinton administra- Additionally, this bill will establish a Taiwan is not the bully in this mat- tion has the slightest intention of fanning freedom’s flames. Quite the contrary. The permanent Pesticide Advisory Com- ter. Taiwan deserves America’s committee including food consumers, envi- administration has reacted to Lee’s ‘‘state- mitment to defend it against China’s to-state’’ remarks by repeatedly reassuring ronmental groups, farmers, non-agri- threats. Our nation should proudly and Beijing that the United States is entirely cultural pesticide users, food manufac- firmly stand by Taiwan, a blooming with it in this matter. On Monday Albright turers, food distributors, pesticide and prosperous democracy where free made a point of saying that Lee’s efforts to manufacturers, federal and state agen- speech, religious freedom and the bene- back off of his remarks ‘‘thus far don’t quite cies. Such a diverse group will serve all fits of capitalism are practiced and en- do it.’’ So, we are on China’s side. We are on the side of a regime that, the ad- interests and maintain a safe food sup- joyed. The United States should stand ply. ministration’s own Justice Department tells in the future, as it has in the past, for us, has engaged in (1) a massive and perhaps I thank Mr. HAGEL for sponsoring freedom and democracy whenever those still ongoing campaign to steal America’s this fine bill and look forward to work- great qualities are threatened by the most valuable nuclear secrets; and (2) an ef- ing with him in its passage. Through it forces of repression. fort to corrupt the 1996 elections by fun- we can work for the good of agriculture Mr. President, I ask unanimous con- neling cash to, principally, the Clinton-Gore and food consumers alike. sent that the article ‘‘On The Wrong campaign and the Democratic National Com- f Side,’’ by Michael Kelly be printed in mittee. We are on the side of a regime that, the ad- ADMINISTRATION’S CONSTRUC- the RECORD. ministration assures, is becoming more tol- TIVE ENGAGEMENT WITH CHINA There being no objection, the article erant of political freedom. Is that so? Beijing was ordered to be printed in the Mr. GORTON. Mr. President, I sub- has intensified the persecution of political RECORD, as follows: dissidents since Clinton began his policy of mit for the CONGRESSIONAL RECORD a [From the Washington Post, July 28, 1999] ‘‘constructive engagement’’ with China. column by Michael Kelly that appeared Most recently, Beijing has been hosting old- ON THE WRONG SIDE in the July 28th edition of the Wash- fashioned Stalinist show trials of democratic ington Post. Mr. Kelly asks in his col- (By Michael Kelly) dissidents; three organizers of the fledgling umn whether it ‘‘strikes anyone as Back in the dear, dead days when the China Democratic Party drew sentences of, odd’’ that the Clinton-Gore Adminis- Democratic Party stood for dreams a bit respectively, 13, 12 and 11 years. tration continues desperately to hand loftier than clinging to power, the labor wing China also continues its campaign to de- of the party liked to ask a question: ‘‘Whose onto its policy of ‘‘constructive en- stroy independent religious movements. Ac- side are you on?’’ It was a good question be- cordingly to the group Human Rights in gagement’’ with China, even as Beijing cause it was an awkward one and an inescap- China, the regime arrested 7,410 leaders of breaths fire in response to reasonable able one. The question presents itself these the Protestant house-church movement in statement made by the freely- and fair- days, awkwardly and inescapably as always, two months last year. Currently, Beijing is ly-elected President of Republic of in the matter of Taiwan and China. Whose undertaking a countrywide effort to stamp China on Taiwan. side are we on? out the spiritual movement Falun Gong. The This Senator, for one, has serious On the one hand, we have Taiwan, which is New York Times reports that more than 5,000 questions about the wisdom of Presi- an ally and a democracy. It is not a perfect people have been arrested, and 1,200 govern- dent Clinton’s foreign policy as it really nor a perfect democracy (but neither is ment officials who are movement members the United States). Formed out of the na- lates to China, and the competence of have been shipped off to re-education schools tionalist movement that lost China to Mao’s to study Communist Party doctrine. the Clinton-Gore Administration to Communists, Taiwan increasingly has We are on the side of a regime that forces protect and advance America’s interest wished for independent statehood. In recent abortions on women who attempt to give in this vital region of the world. years, as the island has become more demo- ‘‘unplanned’’ births; a regime that exploits

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9939 the accidental bombing of its embassy to in- of U.S. Southern Command. The ations, Counternarcotics Operations, cite anti-American riots, threatening U.S. School’s staff and faculty includes over and Human Rights Train-the-Trainer, citizens; a regime that continues to sell 170 U.S. Army officers, noncommis- directly support shared security inter- weapons of mass destruction to rogue states sioned officers, enlisted soldiers, and ests in the region, and are not offered inimical to U.S. interests. We are acting against a regime that seeks Department of the Army civilians. The elsewhere. Other proposed changes in- democratic independence and a society root- School counts among its graduates clude placing the School under the ju- ed in the pursuit of life, liberty and happi- over 1,500 U.S. military personnel in- risdiction of U.S. Southern Command ness. cluding five general officers currently and expanding the Board of Visitors to Doesn’t any of this strike anyone as odd? serving on active duty in our military. include congressional membership— f I agree completely with critics of the both proposals which I strongly sup- School that ‘‘Human rights is not a port. THE U.S. ARMY SCHOOL OF THE partisan issue,’’ and I further agree AMERICAS By focusing on the negative, critics that, in the past there were indeed ignore the many recent positive con- Mr. CLELAND. Mr. President, I rise some shortcomings in the School’s ful- tributions that U.S. Army School of today to express my continued support fillment of its mission to transmit all the Americas graduates have made. In for the U.S. Army School of the Amer- of the values we hold dear in our coun- 1995, this nation helped broker a cease icas (SOA), located at Fort Benning, try. In that regard, today, the U.S. fire between Peru and Ecuador when a Georgia. Legislation has been intro- Army School of the Americas has the historical border dispute threatened to duced by my colleagues both in the U.S. Army’s premier human rights ignite into war. The key members of House and the Senate which would training program. The program has the delegations that put together that close the School of the Americas, and been expanded in recent years in con- accord were U.S. Army School of the last evening the House adopted an sultation with the International Com- Americas graduates, from Peru, from amendment to do so. Mr. President, I mittee of the Red Cross and Mr. Steve Ecuador, and from the guarantor na- rise to support the School of the Amer- Schneebaum, a noted human rights at- tions of the United States and Chile. In icas and the vital mission it performs torney and a member of the School’s fact, the Commander of the U.S. con- in encouraging diplomacy and democ- Board of Visitors. Every student and tingent to the multinational peace- racy within the militaries located in instructor at the School receives man- keeping force, who received special rec- the Americas. datory human rights instruction and ognition from the State Department The School of the Americas has been the International Committee of the for ‘‘extraordinary contributions to a key instrument of U.S. foreign policy Red Cross teaches human rights each U.S. diplomacy,’’ was a 1986 graduate of in Latin and Southern America for year during the School’s Command and the School’s Command and General over fifty years and is the single most General Staff and Peace Operations Staff course, and serves as the current important instrument of our National courses. Last year, over 900 Latin Commandant of the School. More re- Security Strategy of engagement in American soldiers, civilians, and police cently, in 1997, the President of Ecua- the Southern Hemisphere. received human rights instruction at dor was removed from office, creating a The legislation opposing the School the U.S. Army School of the Americas. constitutional crisis. Some of the peo- has been accompanied by a mountain Latin America is currently under- ple of Ecuador called for the military of communications alleging that this going an unparalleled transformation to take power, but their military re- School, operated by the U.S. Army and to democratic governance, civilian confused. Many of the officers in the high funded by taxpayers’ dollars, is the trol of the military, and economic re- command were U.S. Army School of cause of horrendous human rights form along free market principles. Al- the Americas graduates. Finally, less abuses in Central and South America. most every nation in Latin America than four months ago, the President of In twelve separate investigations since has a democratically elected govern- Paraguay was impeached for mis- 1989, the Department of Defense, the ment. During this transition, the re- conduct. Once again, a constitutional Army, the GAO and others have found gion’s militaries have accepted struc- crisis ensued. Once again, the military nothing to suggest that the School ei- tural cuts, reduced budgets, and cur- refused to take power. Once again ther taught or inspired Latin Ameri- tailed influence in society. In many many of the officers in that military cans to commit such crimes. Yet, spon- cases, their acceptance of this new re- were U.S. Army School of the Americas sors of these measures reproduce the ality has been encouraged and en- graduates, including one general offi- critics’ list of atrocities allegedly com- hanced by the strategy of engagement cer who played a key role in the re- mitted by a small number of graduates of which the U.S. Army School of the fusal. in order to transfer responsibility for Americas is an integral part. However, I ask each of you to take a careful these crimes to the backs of the School many Latin American democracies are look at the U.S. Army School of the and the Army rather than to the indi- fragile. True change does not occur in Americas as it exists today. Look to viduals themselves. days, months, or even years. We must the future. As stated by the School’s The School is, and always has been, a continue to engage Latin American critics, ‘‘The contentious politics of U.S. Army training and education in- governments, including their mili- U.S. foreign policy in Central America stitution teaching the same tactics, taries. Marginalizing or ignoring the in the 1980s are over.’’ I strongly urge techniques, and procedures taught at militaries of the region will not help in you to continue your support of the other U.S. Army schools and imparting consolidating hard-won democracy but, Army School of the Americas and the the very same values that the Army instead, will have the opposite effect. U.S. Army. teaches its own soldiers. These U.S. Our efforts to engage the militaries of f military personnel receive the same the region are more important and training as all graduates of our mili- more relevant than ever. The U.S. REGULATORY FAIRNESS AND tary schools. To suggest that terrorist Army School of the Americas is unique OPENNESS ACT activities are taught to students would in this regard because it trains and Mr. GORTON. Mr. President, I rise suggest that we in fact teach terrorist educates large numbers of Latin Amer- today to signify my support for the in- activities to all of our own military ican students who cannot be accommo- troduction of the Regulatory Fairness personnel. This is assuredly not the dated in other U.S. military service and Openness Act of 1999. case. schools due to limited student spaces According to data compiled in the The School is commanded by a U.S. and the inability of other U.S. military last five years, the State of Wash- Army colonel whose chain of command schools to teach in Spanish. ington produces more than 230 food, includes the Commanding General of Over the years, changes have been feed and seed crops; ranks in the top the U.S. Army Infantry Center and the made to enhance the School’s focus on five for the value of the commodities Commanding General of the U.S. Army human rights and diplomacy. Recently produced; leads the nation in the pro- Training and Doctrine Command. The introduced courses such as Democratic duction of apples, spearmint oil, red School also receives oversight and di- Sustainment, Humanitarian Demining, raspberries, hops, edible peas and len- rection from the Commander-in-Chief International Peacekeeping Oper- tils, asparagus, sweet cherries, and

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9940 CONGRESSIONAL RECORD — SENATE July 30, 1999 pears; is second in the nation in the have suggested, improper application in my state that I am most concerned production of winter wheat, potatoes, of the FQPA to household pest controls will be the first to find what may be Concord grapes, and carrots; and con- could create a host of health hazards the only available crop protection tool tributes more than $5 billion to the for children and the elderly. For exam- arbitrarily axed by EPA. At a time State’s economy annually. Not only do ple, there is a real threat that current when farms all across the country are all these facts signify the importance FQPA implementation could eliminate in the grip of a price depression crisis, of the agriculture industry to the State the use of some household insecticides our farmers simply can’t afford to take of Washington and the nation, but and repellants. As many of you know, another hit—especially one from their highlight the importance of having the children and the elderly are susceptible own government. proper tools and chemicals necessary to disease, often carried by cock- Despite our hopes to the contrary, it to produce one of the most abundant, roaches and other insects. Improper has become apparent in recent months economical, and safest food supplies in control of these pests could equate to that legislation is needed to steer the the world. serious health hazards across the na- Environmental Protection Agency I agreed to be an original cosponsor tion, a scenario none of us predicted the Regulatory Fairness and Openness back towards science-based review of with the passage of FQPA. pesticide tolerances under the Food Act of 1999 for many reasons, but the Again, I stress that the intent of the most significant reason comes down to Quality Protection Act. The Regu- legislation is not to alter the impor- latory Fairness and Openness Act that common sense. I supported the passage tance or significance of human health, of the Food Quality Protection Act in we are introducing today requires the but to ensure that decisions regarding EPA to expose its decisionmaking 1996 and still believe in the intent of health risks are informed and not the legislation. However, recent ac- process for public comment, identify hasty, that the intent of the FQPA is areas where assumptions were made, counts from the agriculture industry carried out with the use of sound cite concern about the practical appli- expedite data collection procedures science and practical application, that where needed, and streamline the proc- cation of reliable data and science to a dose of common sense is applied, and the process. ess to get economically viable alter- that adequate time is available to native products approved. The com- Just this week a 25-year-old apple make certain all decisions and toler- farmer from Orondo, Washington vis- mon-sense legislation is the result of ance standards are healthy and equi- ited my office to voice her concerns consultation with more than 60 agri- table. culture and pest control organizations. over the implementation of FQPA. Without question, the United States Karen Simmons explained that with produces the most abundant, desirable, Mr. President, the public has a right the current manner in which FQPA is inexpensive, and safest food supplies in to know what processes are beingused being implemented, entire classes of the world. The FQPA must be imple- in the implementation of the FQPA pesticides are threatened with elimi- mented in a fashion that not only and how the EPA is arriving at its de- nation. Should these tools of agri- takes into account these very facts, cisions. Our farmers have a right to culture be lost, an orchard like Karen’s but continues to consider the needs, know that important crop protection faces possible extinction. Karen’s story choices and health of the American chemicals will not be eliminated on a is not the first I’ve heard, as farmers consumer. whim by a federal agency. I hope col- from Washington have been invaluable I thank my colleagues for their con- leagues agree with me that this meas- in expressing their concerns to me over tinuing interest in this issue, and look ure of regulatory relief is urgently the future of their livliood. forward to working with everyone to needed, and I urge my colleagues to Karen’s account mimics the thou- join me in support of the Regulatory sands of reports my colleagues and I pass the Regulatory Fairness and Openness Act of 1999. Fairness and Openness Act. have heard from growers across this Mr. SMITH of Oregon. Mr. President, country. Karen, like many farmers, I rise today to speak for a moment f never follows the application sugges- about the Regulatory Fairness and tions prescribed by the chemicals she Openness Act that I am pleased to co- uses. Not only does she not follow THE VERY BAD DEBT BOXSCORE sponsor with a number of my col- these recommendations for practical leagues who are concerned about the Mr. HELMS. Mr. President, at the purposes, but because of the cost in- state of agriculture today. I want to close of business yesterday, Thursday, curred as well. thank Senator HAGEL and his staff for July 29, 1999, the Federal debt stood at For example, one of the pesticides $5,640,577,276,840.14 (Five trillion, six she utilizes recommends application up their work on this legislation which refects the input of a number of agri- hundred forty billion, five hundred sev- to twice a week, but Karen informed us enty-seven million, two hundred sev- that she rarely uses it that frequently. culture groups, including the American Farm Bureau Federation. enty-six thousand, eight hundred forty While Karen might not utilize this dollars and fourteen cents). chemical often, it is imperative that When the Congress passed the Food she has it as a tool. Should this tool be Quality Protection Act in 1996, the idea One year ago, July 29, 1998, the Fed- eliminated altogether, Karen’s crop is was to update our pesticide laws so eral debt stood at $5,543,291,000,000 susceptible to infestation, thereby put- that our farmers could continue to pro- (Five trillion, five hundred forty-three ting her entire orchard in jeopardy. vide the safest and most economical billion, two hundred ninety-one mil- Unfortunately, in establishing the food supply in the world. FQPA elimi- lion). risk cup for chemicals, EPA has been nated the outdated zero-tolerance Five years ago, July 29, 1994, the Fed- using application recommendations, Delaney clause for pesticide residues eral debt stood at $4,636,362,000,000 often referred to as default assump- and provided the EPA a framework to (Four trillion, six hundred thirty-six tions, and not taking into consider- review and approve pesticides based on billion, three hundred sixty-two mil- ation actual usage. This approach is the best scientific evidence available lion). threatening the tools growers have at about any health risks these chemicals Twenty-five years ago, July 29, 1974, their disposal. That is why it is imper- may pose. What was not intended was the Federal debt stood at ative that we incorporate into the im- to give the EPA the authority to em- $476,155,000,000 (Four hundred seventy- plementation of FQPA a rulemaking bark on a course to eliminate pes- process, allowing growers, chemical ticides based on unrealistic, worst-case six billion, one hundred fifty-five mil- utilizers, and household pest producers scenarios while keeping important lion) which reflects a debt increase of the ability to divulge actual usage and stakeholders in the dark. more than $5 trillion— to apply practical sense to the process. Agriculture in my state of Oregon is $5,164,422,276,840.14 (Five trillion, one How could we suggest threatening the incredibly diverse. We have everything hundred sixty-four billion, four hun- livelihood of the American farmer and from large wheat or nursery operations dred twenty-two million, two hundred others, while not providing for them an to small berry farms and hazelnut or- seventy-six thousand, eight hundred avenue to participate, comment and chards. While implication of FQPA will forty dollars and fourteen cents) during clarify? surely have implications for program the past 25 years. Children’s health is equally impor- commodities like wheat and soybeans, The PRESIDING OFFICER. The Sen- tant, and, as several of my colleagues it is the small speciality crops grown ator from Mississippi is recognized.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9941 MR. COCHRAN. I thank the Chair. unsuited for crop production because of 93–642 (20 U.S.C. 2004(b)), the Speaker (The remarks of Mr. COCHRAN and Mr. elevated levels of salt from irrigation appoints the following Members of the HUTCHINSON pertaining to the submis- water. In this case, WRP lands filter House as Members of the Board of sion of S. Res. 169 are located in to- runoffs, keeping salts and sediments in Trustees of the Harry S. Truman day’s RECORD under ‘‘Submission of the wetlands and out of the natural wa- Scholarship Foundation: Mrs. EMERSON Concurrent and Senate Resolutions.’’) terways. of Missouri and Mr. SKELTON of Mis- f Despite the benefits to farmers souri. across America, the WRP will soon be- The message also announced that the WETLANDS RESERVE PROGRAM come a victim of its own success. The House insists upon its amendments to ENHANCEMENT ACT current WRP is authorized to enroll up the bill (S. 900) to enhance competition Mr. HUTCHINSON. Mr. President, to 975,000 acres nationally through the in the financial services industry by earlier this week I introduced the year 2002. WRP is in such high demand providing a prudential framework for Hutchinson-Lincoln Wetlands Reserve from America’s farmers that it will the affiliation of banks, securities Program Enhancement Act to help reach its acreage cap next year. The firms, insurance companies, and other strengthen the popular Wetlands Re- top 10 States—Louisiana, Mississippi, financial service providers, and for serve Program administered by the Arkansas, California, Missouri, Iowa, other purposes, disagreed to by the Natural Resources Conservation Serv- Texas, Florida, Oklahoma, and Illi- Senate, and agree to the conference ice. Simply put, this legislation will nois—have a combined enrollment of asked by the Senate on the disagreeing act to strengthen the current WRP almost 427,000 acres in these States votes of the two Houses thereon; and which provides financial incentives to alone. appoints the following Members as the farmers and private landowners who In response to the success of WRP, managers of the conference on the part voluntarily set aside marginal lands my bill seeks to expand the acreage of the House: and restore them to optimal wetland cap from the proposed 180,000 acres in From the Committee on Banking and wildlife habitat. fiscal year 2000 to a newly authorized Financial Services, for consideration of These restored wildlife areas are maximum of 250,000 acres per year the Senate bill, and the House amend- some of the best wildlife conservation through the year 2005. This will help to ment, and modifications committed to habitat in America and are critical to ensure that farmers who want to enroll conference: Mr. LEACH, Mr. MCCOLLUM, the future of waterfowl throughout our in the program will have the option to Mrs. ROUKEMA, Mr. BEREUTER, Mr. Nation. Established by the 1990 farm do so. BAKER, Mr. LAZIO, Mr. BACHUS, Mr. bill as a long-term conservation option There is no doubt that the American CASTLE, Mr. LAFALCE, and Mr. VENTO. for farmers, the WRP protects farm farmer faces an industry that is in cri- As additional conferees from the wetlands using 10-year, 30-year, and sis. In the race to find solutions for the Committee on Banking and Financial permanent easements. Land which is many challenges facing farmers, I want Services, for consideration of titles I, eligible for WRP is characterized by to ensure that my colleagues in the III (except section 304) IV, and VII of wetlands that are farmed, lands adja- Senate do not overlook the importance the Senate bill, and title I of the House cent to protected wetlands, and crop- of conservation to family farmers, both amendment, and modifications com- lands and pastures which are naturally as a way to protect valuable wildlife mitted to conference: Mr. FRANK of prone to flooding. resources and as a source of additional Massachusetts, Mr. KANJORSKI, Ms. If eligible, the landowner voluntarily income. WATERS, and Mrs. MALONEY of New limits the use of the lands while retain- In the Mississippi Delta, family farm- York. ing private ownership and access to the ers are using the WRP to move fre- As additional conferees from the land. In addition, they may also lease quently flooded farmland away from Committee on Banking and Financial the land for hunting, fishing, and other high-risk, high-cost farming back to Services, for consideration of title V of undeveloped recreational activities. original hardwood timberlands. the Senate bill, and title II of the The NRCS, in conjunction with the Mr. President, I thank you for this House amendment, and modifications landowner, then develops a plan for the opportunity to speak on behalf of fam- committed to conference: Mr. KAN- restoration and the maintenance of the ily farmers who care about protecting JORSKI, Mrs. MALONEY of New York, wetland. the natural resources with which they Mr. WATT of North Carolina, and Mr. Once restored, wetlands act to: No. 1, are entrusted. I ask my colleagues to MALONEY of Connecticut. improve water quality by filtering consider the importance of wildlife As additional conferees from the sediments; No. 2, reduce flooding; No. 3, conservation in the life of family farm- Committee on Banking and Financial recharge ground water; No. 4, promote ers. Join me in the support of what I Services, for consideration of title II of biological diversity; and No. 5, furnish think is very good, very important, bi- the Senate bill, and title III of the educational, recreational, and aes- partisan conservation legislation. House amendment, and modifications thetic benefits. These benefits, as a re- committed to conference: Mr. KAN- f sult of the WRP, have helped land- JORSKI, Mrs. MALONEY of New York, owners throughout the 46 States where MESSAGES FROM THE HOUSE Ms. VELA´ ZQUEZ, and Ms. HOOLEY of Or- farmers have currently enrolled in At 3:20 p.m., a message from the egon. what has become a very successful pro- House of Representatives, delivered by As additional conferees from the gram. Mr. Berry, one of its reading clerks, an- Committee on Banking an Financial At the local level, I want to mention nounced that the House has passed the Services, for consideration of title VI three farmers in Arkansas who are ben- following bill, in which it requests the of the Senate bill, and title IV of the efiting from the WRP. Hattie Neely of concurrence of the Senate: House amendment, and modifications Moro, AR, in Lee County, grows soy- committed to conference: Ms. WATERS, H.R. 2587. An act making appropriations beans and has enrolled 31 acres in this for the government of the District of Colum- Mrs. MALONEY of New York, Mr. very important program. Then there is bia and other activities chargeable in whole GUTIERREZ, and Mr. BENTSEN. Donald Wallace of Gillett, AR, in Ar- or in part against revenues of said District As additional conferees from the kansas County, who grows soybeans, for the fiscal year ending September 30, 2000, Committee on Banking an Financial and he has enrolled 30 acres in the and for other purposes. Services, for consideration of section WRP. And Dick Carmichael of Monti- The message also announced that 304 of the Senate bill, and title V of the cello, AR, in Drew County, grows soy- pursuant to 10 U.S.C. 9355(a), the House amendment, and modifications beans and rice and has enrolled 115 Speaker appoints the following Mem- committed to conference: Mr. FRANKS acres in the WRP. bers of the House to the Board of Visi- of Massachusetts, Mr. KANJORSKI, MS. In each case, these farmers are using tors to the United States Air Force WATERS, and Mr. ACKERMAN. the WRP to restore bottom land hard- Academy: Mr. THOMPSON of California From the Committee on Commerce, wood forests and a natural wildlife and Mr. DICKS of Washington. for consideration of the Senate bill, habitat. Other farmers in Arkansas are The message further announced that and the House amendment, and modi- using WRP to retire agricultural lands pursuant to section 5(b) of Public Law fications committed to conference: Mr.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9942 CONGRESSIONAL RECORD — SENATE July 30, 1999 BLILEY, Mr. OXLEY, Mr. TAUZIN, Mr. Provided, That Mr. BILIRAKIS is ap- EC–4456. A communication from the Direc- GILLMOR, Mr. GREENWOOD, Mr. COX, Mr. pointed for consideration of section tor, Office of Regulatory Management and LARGENT, Mr. BILBRAY, Mr. DINGELL, 1365 of the House bill and section 1523 Information, Office of Policy, Planning and Evaluation, Environmental Protection Agen- Mr. TOWNS, Mr. MARKEY, Mr. WAXMAN, of the Senate amendment. cy, transmitting, pursuant to law, the report Ms. DEGETTE, and Mrs. CAPPS. Provided further, That Mr. TAUZIN is of a rule entitled ‘‘OMB Approvals Under the Provided, That Mr. RUSH is appointed appointed for consideration of sections Paperwork Reduction Act; Technical Amend- in lieu of Mrs. CAPPS for consideration 1401–03 of the House bill and sections ment’’ (FRL #6409–2), received July 27, 1999; of section 316 of the Senate bill. 1504 and 1515 of the Senate amendment. to the Committee on Environment and Pub- From the Committee on Agriculture, f lic Works. for consideration of title V of the EC–4457. A communication from the Direc- EXECUTIVE AND OTHER House amendment, and modifications tor, Office of White House Liaison, Depart- COMMUNICATIONS ment of Commerce, transmitting, pursuant committed to conference: Mr. COMBEST, The following communications were to law, a report relative to the resignation of Mr. EWING, and Mr. STENHOLM. the Chief Financial Officer and Assistant From the Committee on the Judici- laid before the Senate, together with Secretary for Administration, and the des- ary, for consideration of sections accompanying papers, reports, and doc- ignation of an Acting Chief Financial Officer 104(a), 104(d)(3), and 104(f)(2) of the Sen- uments, which were referred as indi- and Assistant Secretary; to the Committee ate bill, and sections 104(a)(3), cated: on Commerce, Science, and Transportation. 104(b)(3)(A), 104(b)(4)(B), 136(b), 136(d)– EC–4448. A communication from the Acting EC–4458. A communication from the Direc- Director, Fish and Wildlife Service, Depart- tor, Office of White House Liaison, Depart- (e), 141–44, 197, 301, and 306 of the House ment of Commerce, transmitting, pursuant amendment, and modifications comment of the Interior, transmitting, pursuant to law, the report of a rule entitled ‘‘Endan- to law, a report relative to the resignation of mitted to conference: Mr. HYDE, Mr. gered and Threatened Wildlife and Plants; the Under Secretary for Technology, and the GEKAS, and Mr. CONYERS. Final Rule to List Nine Evolutionary Sig- designation of an Under Secretary; to the The message further announced that nificant Units of Chinook Salmon Committee on Commerce, Science, and the House disagrees to the amendment (Oncorhynchus tshawytscha), Chum Salmon Transportation. EC–4459. A communication from the Direc- of the Senate to the bill (H.R. 1501) to (Oncorhynchus keta), Sockeye Salmon tor, Office of White House Liaison, Depart- (Oncorhynchus nerka), and Steelhead amend the Omnibus Crime Control and ment of Commerce, transmitting, pursuant (Oncorhynchus mykiss), as Threatened or Safe Streets Act of 1968 to provide to law, a report relative to the resignation of grants to ensure increased account- Endangered’’, received July 28, 1999; to the the Assistant Secretary for Technology Pol- ability for juvenile offenders; to amend Committee on Environment and Public icy; to the Committee on Commerce, Works. Science, and Transportation. the Juvenile Justice and Delinquency EC–4449. A communication from the Chair, Prevention Act of 1974 to provide qual- EC–4460. A communication from the Sec- National Women’s Business Council, trans- retary, Federal Trade Commission, transmit- ity prevention programs and account- mitting, pursuant to law, a report entitled ting, pursuant to law, a report relative to ability programs relating to juvenile ‘‘The 1999 NWBC Best Practices Guide: Con- cigarette labeling and advertising for 1997; to delinquency; and for other purposes, tracting with Women’’; to the Committee on the Committee on Commerce, Science, and and agree to the conference asked by Small Business. Transportation. the Senate on the disagreeing votes of EC–4450. A communication from the Sec- EC–4461. A communication from the Pro- retary of Housing and Urban Development, gram Analyst, Office of the Chief Counsel, the two Houses thereon; and appoints transmitting, a draft of proposed legislation the following Members as the managers Federal Aviation Administration, Depart- relative to vouchers for extremely low-in- ment of Transportation, transmitting, pur- of the conference on the part of the come elderly families; to the Committee on suant to law, the report of a rule entitled House: Banking, Housing, and Urban Affairs. ‘‘Airworthiness Directives: Saab Model From the Committee on the Judici- EC–4451. A communication from the Sec- SAAB 2000 Series Airplanes; request for Com- ary, for consideration of the House bill retary of Housing and Urban Development, ments; Docket No. 98–NM–350 (7–22/7–26)’’ and the Senate amendment, and modi- transmitting, a draft of proposed legislation (RIN2120–AA64) (1999–0280), received July 26, relative to technical and conforming amend- 1999; to the Committee on Commerce, fications committed to conference: Mr. ments necessitated by passage of the Quality HYDE, Mr. MCCOLLUM, Mr. GEKAS, Mr. Science, and Transportation. Housing and Work Responsibility Act of 1998; EC–4462. A communication from the Pro- COBLE, Mr. SMITH of Texas, Mr. CANADY to the Committee on Banking, Housing, and gram Analyst, Office of the Chief Counsel, of Florida, Mr. BARR of Georgia, Mr. Urban Affairs. Federal Aviation Administration, Depart- CONYERS, Mr. FRANK of Massachusetts, EC–4452. A communication from the Com- ment of Transportation, transmitting, pur- Mr. SCOTT, Mr. BERMAN, and Ms. LOF- missioner, Bureau of Reclamation, Depart- suant to law, the report of a rule entitled ment of the Interior, transmitting, a draft of GREN. ‘‘Airworthiness Directives: Alexander proposed legislation relative to the security Provided, That Ms. JACKSON-LEE of Schleicher Segelflugzeubau Model ASH 26E of dams, facilities and resources under the Sailplanes; Docket No. 99–CE–06 (7–26/7–26)’’ Texas is appointed in lieu of Mr. FRANK jurisdiction of the Bureau; to the Committee of Massachusetts for consideration of (RIN2120–AA64) (1999–0282), received July 26, on Energy and Natural Resources. 1999; to the Committee on Commerce, sections 741, 1501, 1505, 1534–35, and ti- EC–4453. A communication from the Direc- Science, and Transportation. tles V, VI, and IX of the Senate amend- tor, Office of Regulatory Management and EC–4463. A communication from the Pro- ment. Information, Office of Policy, Planning and gram Analyst, Office of the Chief Counsel, Provided further, That Mr. MEEHAN is Evaluation, Environmental Protection Agen- Federal Aviation Administration, Depart- cy, transmitting, pursuant to law, the report appointed in lieu of Mr. BERMAN for ment of Transportation, transmitting, pur- of a rule entitled ‘‘Acquisition Regulation: suant to law, the report of a rule entitled consideration of sections 741, 1501, 1505, Contractor Performance Evaluation’’ (FRL 1534–35, and titles V, VI, and IX of the ‘‘Airworthiness Directives: Sikorsky Air- #6409–6), received July 27, 1999; to the Com- craft-Manufactured Model CH–54B Heli- Senate amendment. mittee on Environment and Public Works. copters; Docket No. 97–SW–59 (7–22/7–26)’’ From the Committee on Education EC–4454. A communication from the Direc- (RIN2120–AA64) (1999–0281), received July 26, and the Workforce, for consideration of tor, Office of Regulatory Management and 1999; to the Committee on Commerce, the House bill, and the Senate amend- Information, Office of Policy, Planning and Science, and Transportation. ment (except sections 741, 1501, 1505, Evaluation, Environmental Protection Agen- EC–4464. A communication from the Pro- 1534–35, and titles V, VI, and IX), and cy, transmitting, pursuant to law, the report gram Analyst, Office of the Chief Counsel, of a rule entitled ‘‘Air Quality Index Report- modifications committed to con- Federal Aviation Administration, Depart- ing’’ (FRL #6409–7), received July 27, 1999; to ment of Transportation, transmitting, pur- ference: Mr. GOODLING, Mr. PETRI, Mr. the Committee on Environment and Public suant to law, the report of a rule entitled CASTLE, Mr. GREENWOOD, Mr. DEMINT, Works. ‘‘Airworthiness Directives: Allied Signal Inc. Mr. CLAY, Mr. KILDEE, and Mrs. EC–4455. A communication from the Direc- ALF502R and ALF502R–3A Turbofan Engines; MCCARTHY of New York. tor, Office of Regulatory Management and Docket No. 98–ANE–42 (7–19/7–26)’’ (RIN2120– From the Committee on Commerce, Information, Office of Policy, Planning and AA64) (1999–0283), received July 26, 1999; to for consideration of sections 1365 and Evaluation, Environmental Protection Agen- the Committee on Commerce, Science, and 1401–03 of the House bill, and sections cy, transmitting, pursuant to law, the report Transportation. of a rule entitled ‘‘Approval and Promulga- EC–4465. A communication from the Pro- 1504, 1515, and 1523 of the Senate tion of State Plans for Designated Facilities gram Analyst, Office of the Chief Counsel, amendment, and modifications com- and Pollutants: Washington’’ (FRL #6408–6), Federal Aviation Administration, Depart- mitted to conference: Mr. BLILEY and received July 27, 1999; to the Committee on ment of Transportation, transmitting, pur- Mr. DINGELL. Environment and Public Works. suant to law, the report of a rule entitled

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00058 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9943 ‘‘Establishment of VOR Federal Airways, ments; Docket No. 99–ASW–10 (7–21/7–26)’’ reau, Federal Communications Commission, WA; Establishment of Effective Date; Docket (RIN2120–AA66) (1999–0240), received July 26, transmitting, pursuant to law, the report of No. 97–ANM–23 (7–26/7–26)’’ (RIN2120–AA66) 1999; to the Committee on Commerce, a rule entitled ‘‘Amendment of Section (1999–0234), received July 26, 1999; to the Com- Science, and Transportation. 73.202(b), Table of Allotments, FM Broadcast mittee on Commerce, Science, and Transpor- EC–4474. A communication from the Pro- Stations (Indian Springs, Nevada; Mountain tation. gram Analyst, Office of the Chief Counsel, Pass, California; Kingman, Arizona; and St. EC–4466. A communication from the Pro- Federal Aviation Administration, Depart- George, Utah)’’ (MM Docket No. 96–171), re- gram Analyst, Office of the Chief Counsel, ment of Transportation, transmitting, pur- ceived July 27, 1999; to the Committee on Federal Aviation Administration, Depart- suant to law, the report of a rule entitled Commerce, Science, and Transportation. ment of Transportation, transmitting, pur- ‘‘Revision of Class E Airspace; Galveston, EC–4483. A communication from the Spe- suant to law, the report of a rule entitled TX; Direct Final Rule; Request for Com- cial Assistant to the Chief, Mass Media Bu- ‘‘Change of Name of Using Agency for Re- ments; Docket No. 99–ASW–09 (7–21/7–26)’’ reau, Federal Communications Commission, stricted Areas R–210A, R–210B, and R210C; AL (RIN2120–AA66) (1999–0241), received July 26, transmitting, pursuant to law, the report of (7–216/7–26)’’ (RIN2120–AA66) (1999–0243), re- 1999; to the Committee on Commerce, a rule entitled ‘‘Amendment of Section ceived July 26, 1999; to the Committee on Science, and Transportation. 73.202(b), Table of Allotments, FM Broadcast Commerce, Science, and Transportation. EC–4475. A communication from the Dep- Stations (Saltillo, Mississippi; Rozel, Kan- EC–4467. A communication from the Pro- uty Assistant General Counsel, Department sas; New Castle, Colorado; Walden, Colorado; gram Analyst, Office of the Chief Counsel, of Transportation, transmitting, pursuant to Aberdeen, Idaho; Palisade, Colorado; Rye, Federal Aviation Administration, Depart- law, the report of a rule entitled ‘‘Compensa- Colorado and Burdett, Kansas)’’ (MM Docket ment of Transportation, transmitting, pur- tion for Damage of Expensive Mobility Aids No. 99–2, 99–3, 99–27, 99–29, 99–30, 99–31, 99–32 suant to law, the report of a rule entitled in Air Travel’’ (RIN2105–AC77), received July and 99–33), received July 27, 1999; to the Com- ‘‘Amendment to Class E Airspace; Lawrence, 26, 1999; to the Committee on Commerce, mittee on Commerce, Science, and Transpor- KS; Direct Final Rule; Request for Com- Science, and Transportation. tation. ments; Docket No. 99–ACE–35 (7–21/7–26)’’ EC–4476. A communication from the Acting EC–4484. A communication from the Acting (RIN2120–AA66) (1999–0236), received July 26, Director, Office of Sustainable Fisheries, Na- Chief, Enforcement Division, Common Car- 1999; to the Committee on Commerce, tional Marine Fisheries Service, Department rier Bureau, Federal Communications Com- Science, and Transportation. of Commerce, transmitting, pursuant to law, mission, transmitting, pursuant to law, the EC–4468. A communication from the Pro- the report of a rule entitled ’’Closure for the report of a rule entitled ‘‘Amendment of gram Analyst, Office of the Chief Counsel, Trawl Deep-Water Species Fishery in the Policies and Rules Concerning Operator Federal Aviation Administration, Depart- Gulf of Alaska’’, received July 27, 1999; to the Services and Aggregators, CC Docket No. 94– ment of Transportation, transmitting, pur- Committee on Commerce, Science, and 158’’ (FCC 99–171, CC Docket No. 94–158), re- suant to law, the report of a rule entitled Transportation. ceived July 27, 1999; to the Committee on ‘‘Amendment to Class E Airspace; Parsons, EC–4477. A communication from the Assist- Commerce, Science, and Transportation. KS; Direct Final Rule; Request for Com- ant Administrator for Satellite and Informa- EC–4485. A communication from the Gen- ments; Docket No. 99–ACE–36 (7–21/7–26)’’ tion Services, National Oceanic and Atmos- eral Counsel, Federal Emergency Manage- pheric Administration, Department of Com- (RIN2120–AA66) (1999–0235), received July 26, ment Agency, transmitting, pursuant to law, merce, transmitting, pursuant to law, the re- 1999; to the Committee on Commerce, the report of a rule entitled ‘‘Extension of port of a rule entitled ‘‘Notice of Avail- Science, and Transportation. Filing Date for Discrimination Complaints; EC–4469. A communication from the Pro- ability of Federal Assistance (Use of Sat- 64 FR 38308; 07/16/99’’ (RIN2067–AC99), received gram Analyst, Office of the Chief Counsel, ellite Data for Studying Local and Regional July 22, 1999; to the Committee on Govern- Federal Aviation Administration, Depart- Phenomena)’’, received July 27, 1999; to the mental Affairs. EC–4486. A communication from the Assist- ment of Transportation, transmitting, pur- Committee on Commerce, Science, and ant Attorney General, Office of Justice Pro- suant to law, the report of a rule entitled Transportation. EC–4478. A communication from the Spe- grams, Violence Against Women Office, De- ‘‘Amendment to Class E Airspace; Grain Val- cial Assistant to the Chief, Mass Media Bu- partment of Justice, transmitting, pursuant ley, MO; Direct Final Rule; Request for Com- reau, Federal Communications Commission, to law, the report of a rule entitled ‘‘Grants ments; Docket No. 99–ACE–28 (7–21/7–26)’’ transmitting, pursuant to law, the report of to Combat Violent Crimes Against Women (RIN2120–AA66) (1999–0237), received July 26, a rule entitled ‘‘Amendment of Section on Campuses’’ (RIN1121–AA49) (OJP{OJP}– 1999; to the Committee on Commerce, 73.202(b), Table of Allotments, FM Broadcast 1206f), received July 23, 1999; to the Com- Science, and Transportation. Stations (Tecopa, California; Council Grove, mittee on the Judiciary. EC–4470. A communication from the Pro- Kansas; Carbondale, Colorado; El Jebel, Col- EC–4487. A communication from the Dep- gram Analyst, Office of the Chief Counsel, orado)’’ (MM Docket No. 99–46; RM–9470; MM uty Executive Secretary, Office of Inspector Federal Aviation Administration, Depart- Docket No. 99–47; RM–9471; MM Docket No. General, Department of Health and Human ment of Transportation, transmitting, pur- 99–48; RM–9472; MM Docket No. 99–49; RM– Services, transmitting, pursuant to law, the suant to law, the report of a rule entitled 9473), received July 27, 1999; to the Com- report of a rule entitled ‘‘Revised OIG Sanc- ‘‘Amendment to Class E Airspace; Decorah, mittee on Commerce, Science, and Transpor- tion Authorities Resulting from Public Law IA; Docket No. 99–ACE–19 (7–21/7–26)’’ tation. 105–33’’ (RIN0991–AA95), received July 23, (RIN2120–AA66) (1999–0242), received July 26, EC–4479. A communication from the Spe- 1999; to the Committee on Health, Education, 1999; to the Committee on Commerce, cial Assistant to the Chief, Mass Media Bu- Labor, and Pensions. Science, and Transportation. reau, Federal Communications Commission, EC–4488. A communication from the Assist- EC–4471. A communication from the Pro- transmitting, pursuant to law, the report of ant General Counsel for Regulatory Law, De- gram Analyst, Office of the Chief Counsel, a rule entitled ‘‘Amendment of Section partment of Energy, transmitting, pursuant Federal Aviation Administration, Depart- 73.202(b), Table of Allotments, FM Broadcast to law, the report of a rule entitled ‘‘Unclas- ment of Transportation, transmitting, pur- Stations (Genoa, Mt. Morris, and Oregon, Il- sified Foreign Visits and Assignments’’ (N suant to law, the report of a rule entitled linois)’’ (MM Docket No. 99–64; RM–9485), re- 142.1), received July 26, 1999; to the Com- ‘‘Revision of Class E Airspace; Perry, OK; Di- ceived July 27, 1999; to the Committee on mittee on Energy and Natural Resources. rect Final Rule; Request for Comments; Commerce, Science, and Transportation. EC–4489. A communication from the Assist- Docket No. 99–ASW–15 (7–21/7–26)’’ (RIN2120– EC–4480. A communication from the Spe- ant General Counsel for Regulatory Law, De- AA66) (1999–0238), received July 26, 1999; to cial Assistant to the Chief, Mass Media Bu- partment of Energy, transmitting, pursuant the Committee on Commerce, Science, and reau, Federal Communications Commission, to law, the report of a rule entitled ‘‘Depart- Transportation. transmitting, pursuant to law, the report of ment of Energy Employee Concerns Pro- EC–4472. A communication from the Pro- a rule entitled ‘‘Amendment of Section gram’’ (O 442.1 and G 442.1–1), received July gram Analyst, Office of the Chief Counsel, 73.202(b), Table of Allotments, FM Broadcast 26, 1999; to the Committee on Energy and Federal Aviation Administration, Depart- Stations (Llano, Texas)’’ (MM Docket No. 99– Natural Resources. ment of Transportation, transmitting, pur- 131; RM–9333), received July 27, 1999; to the EC–4490. A communication from the Assist- suant to law, the report of a rule entitled Committee on Commerce, Science, and ant General Counsel for Regulatory Law, De- ‘‘Revision of Class E Airspace; Center, TX; Transportation. partment of Energy, transmitting, pursuant Direct Final Rule; Request for Comments; EC–4481. A communication from the Spe- to law, the report of a rule entitled ‘‘Man- Docket No. 99–ASW–14 (7–21/7–26)’’ (RIN2120– cial Assistant to the Chief, Mass Media Bu- agement and Administration of Radiation AA66) (1999–0239), received July 26, 1999; to reau, Federal Communications Commission, Protection Programs Guide’’ (DOE G 441.1–1), the Committee on Commerce, Science, and transmitting, pursuant to law, the report of received July 26, 1999; to the Committee on Transportation. a rule entitled ‘‘Amendment of Section Energy and Natural Resources. EC–4473. A communication from the Pro- 73.202(b), Table of Allotments, FM Broadcast EC–4491. A communication from the Assist- gram Analyst, Office of the Chief Counsel, Stations (Lufkin, Texas)’’ (MM Docket No. ant General Counsel for Regulatory Law, De- Federal Aviation Administration, Depart- 98–125; RM–9301), received July 27, 1999; to the partment of Energy, transmitting, pursuant ment of Transportation, transmitting, pur- Committee on Commerce, Science, and to law, the report of a rule entitled ‘‘Occupa- suant to law, the report of a rule entitled Transportation. tional ALARA Program Guide’’ (G 441.1–2), ‘‘Revision of Class E Airspace; Shreveport, EC–4482. A communication from the Spe- received July 26, 1999; to the Committee on LA; Direct Final Rule; Request for Com- cial Assistant to the Chief, Mass Media Bu- Energy and Natural Resources.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00059 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9944 CONGRESSIONAL RECORD — SENATE July 30, 1999 EC–4492. A communication from the Acting tailed oversight and overfiling of state ac- the objective of attaining the highest pos- Assistant Secretary for Land and Minerals tions substantially weaken the state’s abil- sible level of health for all people; Management, Minerals Management Service, ity to take compliance actions and resolve Whereas, in 1977 the World Health Organi- Department of the Interior, transmitting, environmental issues; zation established ‘‘Health for all by the pursuant to law, the report of a rule entitled Whereas, the EPA’s enforcement practices year 2000’’ as its overriding priority and re- ‘‘Amendments to Gas Valuation Regulations and policies have had an adverse impact on affirmed that central vision with the initi- for Indian Leases’’ (RIN1010–AB57), received working relationships between the EPA and ation of its ‘‘Health for All’’ renewal process July 26, 1999; to the Committee on Indian Af- states; in 1995; fairs. Whereas, the EPA’s reliance on the threat Whereas, Taiwan’s population of 21 million EC–4493. A communication from the Acting of enforcement action to force compliance people is larger than that of 3⁄4 of the mem- Associate Chief, Forest Service, Department may not result in environmental protection, ber states already in the World Health Orga- of Agriculture, transmitting, pursuant to but rather may result in delay and litiga- nization and shares the noble goals of the or- law, the report of the Forest Service for fis- tion, cripple incentives for technological in- ganization; cal year 1998; to the Committee on Agri- novation and provoke animosity between Whereas, Taiwan’s achievements in the culture, Nutrition, and Forestry. government, industry, and the public; and field of health are substantial, including one Whereas, the Western Governor’s Associa- of the highest life expectancy levels in Asia, f tion has adopted ‘‘Principles of Environ- maternal and infant mortality rates com- PETITIONS AND MEMORIALS mental Protection in the West,’’ which en- parable to those of western countries, the courages collaboration not polarization, ad- eradication of such infectious diseases as The following petitions and memo- vocates the replacement of command and cholera, smallpox, and the plague, the first rials were laid before the Senate and control with economic incentives and re- country in the world to provide children were referred or ordered to lie on the warding results and encourages the weighing with free hepatitis B vaccinations; table as indicated: of costs against benefits in environmental Whereas, prior to 1972 and its loss of mem- POM–280. A concurrent resolution adopted decisions: bership in the World Health Organization, by the Legislature of the State of Utah rel- Now, therefore, be it Resolved, That the Taiwan sent specialists to serve in other ative to state-negotiated compliance actions Legislature of the state of Utah, the Gov- member countries on countless health related to the environment: to the Com- ernor concurring therein, requests the EPA projects and its health experts held key posi- mittee on Environment and Public Works. to refrain from overfiling or threatening to tions in the organization, all to the benefit overfile on state-negotiated compliance ac- of the entire Pacific region; HOUSE CONCURRENT RESOLUTION 3 tions if the actions achieve compliance with Whereas, Taiwan is not allowed to partici- Be it resolved by the Legislature of the state applicable state and federal law and are pro- pate in may World Health Organization-orga- of Utah, the Governor concurring therein: tective of health and the environment. nized forums and workshops concerning the Whereas, protection of public health and Be it further Resolved, That the Legisla- latest technologies in the diagnosis, moni- the environment are among the highest pri- ture and the Government request that the toring, and control of diseases; orities of state governments; EPA, in taking enforcement and compliance Whereas, in recent years both the Tai- Whereas, Congress has provided by statute actions, recognize and defer to individual wanese Government and individual Tai- for the delegation of certain federal program state and local priorities that are important wanese experts have expressed a willingness responsibilities to the states; for the protection of the environment. to assist financially or technically in World Whereas, to obtain delegation of federal Be it further Resolved, That the EPA Health Organization-supported international environmental programs, a state must dem- should work with and assist states in evalu- aid and health activities, but have ulti- onstrate that it has adopted laws, regula- ating the overall effectiveness of state com- mately been unable to render such assist- tions, and policies as stringent as federal pliance programs and not focus on the detail ance; laws, regulations, and policies. of individual actions. Whereas, according to the constitutions of Whereas, over the past 25 years, the states Be it further Resolved, That the Legisla- the World Health Organization, Taiwan does have developed and demonstrated expertise ture and the Governor request the Congress not fulfill the criteria for membership; in operation of federal environmental proof the United States to investigate EPA en- Whereas, the World Health Organization gram enabling states to obtain and maintain forcement activities and require the EPA to does not allow observers to participate in the the delegations; defer to state enforcement and compliance activities of the organization; and Whereas, the state of Utah, Colorado, Mon- actions in delegated states where the actions Whereas, in light of all of the benefits that tana, Wyoming, North Dakota, and South achieve compliance and are protective of such participation could bring to the state of Dakota constitute an area designated by the health and the environment. health not only in Taiwan, but also region- Environmental Protection Agency (EPA) as Be it further Resolved, That copies of this ally and globally: Region VIII; resolution be sent to the President of the Now, therefore, be it Resolved, That the Whereas, the states in Region VIII make United States Senate, the Speaker of the Legislature of the state of Utah urge the compliance with environmental laws, rules, United States House of Representatives, Clinton Administration to support Taiwan and permits the highest priority; each member of the Utah congressional dele- and its 21 million people in obtaining appro- Whereas, the state of Utah has full delega- gation, the Administrator of the U.S. Envi- priate and meaningful participation in the tion in all federal environmental programs; ronmental Protection Agency, the Assistant World Health Organization. Whereas, the EPA and the states have bi- Administrator of the U.S. EPA Office of En- Be it further Resolved, That United States laterally developed over the past 25 years forcement and Compliance, the Regional Ad- policy should include the pursuit of some ini- policy agreements which reflect roles and ministrator of the U.S. EPA Region VIII, the tiative in the World Health Organization which recognize that the primary responsi- National Governor’s Association, the Na- which will give Taiwan meaningful partici- bility for enforcement and compliance re- tional Council of State Legislators, the pation in a manner that is consistent with sides with the states, with the EPA taking Council of State Governments, the Western such organization’s requirements. enforcement action principally when the Governor’s Association, and the Environ- Be it further Resolved, That a copy of this state requests assistance or is unwilling or mental Council of the States. resolution be sent to the President of the unable to take timely and appropriate en- United States, the United States Secretary forcement action; POM–281. A joint resolution adopted by the of State, the Secretary of Health and Human Whereas, inconsistent with these policy Legislature of the State of Utah relative to Services, the Speaker of the United States agreements, the EPA has conducted direct Taiwan’s participation in the World Health House of Representatives, the members of federal inspections within programs dele- Organization; to the Committee on Foreign Utah’s congressional delegation, the Govern- gated to states, has taken direct enforce- Relations. ment of Taiwan, and the World Health Orga- ment actions, has levied fines and penalties HOUSE JOINT RESOLUTION 12 nization. against regulated entities in cases where the Be it resolved by the Legislature of the state state previously took appropriate action POM–282. A resolution adopted by the of Utah: House of the Legislature of the State of consistent with the agreements to bring the Whereas, good health is a basic right for Michigan relative to imported apple juice entities into compliance, and has failed to every citizen of the world and access to the concentrate; to the Committee on Finance. notify the states in advance of their action; highest standards of health information and Whereas, the EPA had begun to use its en- services is necessary to help guarantee this HOUSE RESOLUTION 51 forcement authority in cases where the state right; Whereas. The production of apple juice had worked with the regulated entity to Whereas, direct and unobstructed partici- concentrate is an important component of achieve compliance, and the overfiling by pation in international health cooperation Michigan’s agricultural bounty. Michigan, the EPA accomplished no further protection forms and programs is therefore crucial, es- which is traditionally the third largest of the public health or environment but only pecially with today’s greater potential for apple-growing state, is the nation’s top imposed an additional penalty on the regu- the cross-border spread of various infectious apple-processing state. This record of con- lated entity; diseases through increased trade and travel; sistency has been achieved in the face of Whereas, the EPA’s current enforcement Whereas, the World Health Organization many uncertain times in farming, including practices and policies and the resultant de- set forth in the first chapter of its charter wild swings in our Midwestern weather; and

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00060 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9945 Whereas, In recent years, however, our Whereas, as we move toward final approval Resolved, That copies of this resolution be apple growers and processors have come to of the Master Tobacco Settlement Agree- transmitted to the President of the United face even more serious threats from foreign ment, it is imperative that state sovereignty States Senate, the Speaker of the United sources of apple juice concentrate selling be preserved; now, therefore, be it States House of Representatives, and the their products in this country at artificially Resolved by the State House of Representa- members of the Michigan congressional dele- low costs. From an average imported price of tives, the Senate concurring: gation. apple juice concentrate of $10 per gallon in That the New Hampshire legislature urges 1995, the price has fallen by fifty percent. the United States Congress to enact legisla- POM–285. A joint resolution adopted by the This is far below the break-even point for tion amending the Social Security Act to Legislature of the State of Utah relative to American growers. Coupled with the erosion prohibit recoupment by the federal govern- federal courts levying or increasing taxes; to of export opportunities due to the troubled ment of state tobacco settlement funds; and the Committee on the Judiciary. That it is the sense of the New Hampshire economies in the Asian markets, Michigan HOUSE JOINT RESOLUTION 5 state legislature that the respective state apple growers and those in other states face Be it resolved by the Legislature of the state severe threats to their livelihood; and legislatures should have complete autonomy over the appropriation and expenditure of of Utah: Whereas, The opening up of markets that Whereas, separation of powers between the has taken place in the past few years has state tobacco settlements funds; and That the New Hampshire state legislature legislative, executive, and judicial branches brought many benefits. However, there can of government is a fundamental principle be situations in which the removal of restric- most fervently opposes any efforts by the federal government to earmark or impose upon which the United States Constitution tions on trade offers the chance for abuses. is based; When a country, for whatever purpose, en- any other restrictions on the respective states’ use of state tobacco settlement funds; Whereas, actions of one branch of govern- courages certain activities by helping a spe- ment that encroach upon the duty and au- cific industry gain an unfair advantage and That copies of this resolution be trans- thority of another branch erode the Con- through below-cost prices, steps need to be mitted by the house clerk to the President of stitution’s checks and balances against taken to ensure the viability of American the United States; the President and the abuse of power by any branch; economic and social interests. The United Secretary of the United States Senate; the Whereas, the United States Supreme Court States Department of Agriculture has taken Speaker and the Clerk of the United States has asserted that federal judges have the steps to assist certain American farmers on House of Representatives; and to each mem- power under the United States Constitution a number of occasions. The possibility of ber of New Hampshire’s congressional dele- to levy or increase taxes; apple juice concentrate being ‘‘dumped’’ on gation. Whereas, this determination places the ju- the American market is a situation that de- dicial branch of government in direct com- mands immediate attention and thorough POM–284. A concurrent resolution adopted petition with state legislatures and limits study; now, therefore, be it by the Legislature of the State of Michigan the fiscal resources available to legislators Resolved by the house of representatives, relative to imported apple juice concentrate; to serve their constituents’ needs; That we memorialize the Congress of the to the Committee on Agriculture, Nutrition, Whereas, it also gives the federal judiciary United States to investigate the issue of and Forestry. a virtual veto-proof spending power over po- apple juice concentrate from other countries litical choices and spending priorities of HOUSE CONCURRENT RESOLUTION 27 being sold in the American market at prices democratically elected state legislatures; below cost; and be it further Whereas, The production of apple juice Whereas, federal courts continue to violate Resolved, That copies of this resolution be concentrate is an important component of the United States Constitution by ordering transmitted to the President of the United Michigan’s agricultural bounty. Michigan, states to levy or increase taxes to comply States Senate, the Speaker of the United which is traditionally the third largest with federal mandates; States House of Representatives, and the apple-growing state, is the nation’s top Whereas, a proposed amendment to the members of the Michigan congressional dele- apple-processing state. This record of con- United States Constitution to prohibit the gation. sistency has been achieved in the face of judiciary’s encroachment reads: ‘‘Neither the many uncertain times in farming, including Supreme Court nor any inferior court of the POM–283. A concurrent resolution adopted wild swings in our Midwestern weather; and United States shall have the power to in- by the Legislature of the State of New Whereas, In recent years, however, our struct or order a state or political subdivi- Hampshire relative to tobacco settlement apple growers and processors have come to sion thereof, or an official of such state or funds; to the Committee on Finance. face even more serious threats from foreign political subdivision, to levy or increase HOUSE CONCURRENT RESOLUTION 12 sources of apple juice concentrate selling taxes’’; and Whereas, on November 23, 1998, representa- their products in this country at artificially Whereas, encroachments by one branch of tives from 46 states signed a settlement low costs. From an average imported price of government upon the authority of another agreement with the 5 largest tobacco manu- apple juice concentrate of $10 per gallon in branch must be prevented, by a constitu- facturers; and 1995, the price has fallen by fifty percent. tional amendment if necessary, to preserve Whereas, the Attorneys General Master This is far below the break-even point for the balance of power the founding fathers Tobacco Settlement Agreement culminated American growers. Coupled with the erosion constructed: legal action that began in 1994 when states of export opportunities due to the troubled Now, therefore, be it Resolved, That the began filing lawsuits against the tobacco in- economies in the Asian markets, Michigan Legislature of the state of Utah urge the dustry; and apple growers and those in other states face United States Congress to amend the United Whereas, the respective states are pres- severe threats to their livelihood; and States Constitution to prohibit federal ently in the process of finalizing the terms of Whereas, The opening up of markets that courts from levying or increasing taxes. the Mast Tobacco Settlement Agreement, has taken place in the past few years has Be it further Resolved, That a copy of this and are making initial fiscal determinations brought many benefits. However, there can resolution be presented to the Speaker of the relative to the most responsible ways and be situations in which the removal of restric- United States House of Representatives, the means to utilize the settlement funds; and tions on trade offers the chance for abuses. President of the United States Senate, and Whereas, under the terms of the agree- When a country, for whatever purpose, en- to the members of Utah’s congressional dele- ment, tobacco manufacturers will pay $206 courages certain activities by helping a spe- gation. billion over the next 25 years to the respec- cific industry gain an unfair advantage tive states in up-front and annual payments; through below-cost prices, steps need to be POM–286. A resolution adopted by the City and taken to ensure the viability of American Council of Canton, Ohio relative to the pro- Whereas, New Hampshire is projected to economic and social interests. The United posed ‘‘Civil Asset Forfeiture Reform Act’’; receive $1,304,689,150 through the year 2025 States Department of Agriculture has taken to the Committee on the Judiciary. under the terms of the Master Tobacco Set- steps to assist certain American farmers on f tlement; and a number of occasions. The possibility of Whereas, because many state lawsuits apple juice concentrate being ‘‘dumped’’ on MESSAGES FROM THE PRESIDENT sought to recover Medicaid funds spent to the American market is a situation that de- Messages from the President of the treat illnesses caused by tobacco use, the mands immediate attention and thorough Health Care Financing Administration study; now, therefore be it United States were communicated to (HCFA) contends that it is authorized and Resolved by the house of representatives (the the Senate by Mr. Williams, one of his obligated, under the Social Security Act, to senate concurring), That we memorialize the secretaries. collect its share of any tobacco settlement Congress of the United States to investigate EXECUTIVE MESSAGES REFERRED funds attributable to Medicaid; and the issue of apple juice concentrate from As in executive session the Presiding Whereas, the Master Tobacco Settlement other countries being sold in the American Officer laid before the Senate messages Agreement does not address the Medicaid market at prices below cost, and to strength- recoupment issue, and thus the Social Secu- en laws to identify the country of origin for from the President of the United rity Act must be amended to resolve the all products using concentrate and to ensure States submitting sundry nominations recoupment issue in favor of the respective that imported concentrate meets United which were referred to the appropriate states; and States standards; and be it further committees.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00061 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9946 CONGRESSIONAL RECORD — SENATE July 30, 1999 (The nominations received today are The following named officer for appoint- STATEMENTS ON INTRODUCED printed at the end of the Senate pro- ment in the United States Army to the grade BILLS AND JOINT RESOLUTIONS ceedings.) indicated while assigned to a position of importance and responsibility under title 10, By Mr. CONRAD: f U.S.C., section 601: S. 1469. A bill to amend the Commu- To be lieutenant general nity Development Banking and Finan- REPORT ON THE NATIONAL EMER- cial Institutions Act of 1994 with re- Maj. Gen. James T. Hill, 0000 GENCY WITH RESPECT TO TER- spect to population out-migration lev- RORISTS WHO THREATEN TO (The above nominations were re- els in rural areas; to the Committee on DISRUPT THE MIDDLE EAST ported with the recommendation that Banking, Housing, and Urban Affairs. PEACE PROCESS—MESSAGE they be confirmed.) COMMUNITY DEVELOPMENT FINANCIAL INSTITU- FROM THE PRESIDENT—PM 53 f TIONS (CDFI) TECHNICAL CORRECTIONS ACT The PRESIDING OFFICER laid be- INTRODUCTION OF BILLS AND Mr. CONRAD. Mr. President, I rise fore the Senate the following message JOINT RESOLUTIONS today to introduce the Community De- from the President of the United velopment Financial Institutions Fund States, together with an accompanying The following bills and joint resolu- Technical Corrections Act. report; which was referred to the Com- tions were introduced, read the first This legislation will make the CDFI mittee on Banking, Housing, and and second time by unanimous con- program more responsive to low-popu- Urban Affairs. sent, and referred as indicated: lation rural areas. It will allow the pro- By Mr. MCCAIN: gram to fulfill its mission of building To the Congress of the United States: S. 1467. A bill to extend the funding levels the capacity of financial institutions in As required by section 401(c) of the for aviation programs for 60 days; considered parts of the country that have experi- National Emergencies Act, 50 U.S.C. and passed. enced chronic, sustained out-migration 1641(c), and section 204(c) of the Inter- By Mr. LOTT (for himself, Mr. DASCHLE, Mr. GRAMM, Mr. SARBANES, in recent years. national Emergency Economic Powers As many of my colleagues know, the Act, 50 U.S.C. 1703(c), I transmit here- Mr. MCCONNELL, Mr. DODD, Mr. BEN- NETT, Mr. MACK, Mr. LEAHY, Mr. CDFI Fund was established by the Rie- with a 6-month periodic report on the THURMOND, Mr. DOMENICI, Mr. GRAMS, gle Community Development and Reg- national emergency with respect to Mr. JEFFORDS, Mr. CRAPO, Mr. COVER- ulatory Improvement Act of 1994. This terrorists who threaten to disrupt the DELL, Mr. ROTH, Mr. INHOFE, Mr. BUN- program is intended to stimulate the Middle East peace process that was de- NING, Mr. DEWINE, Mr. SPECTER, Mr. creation and expansion of diverse com- clared in Executive Order 12947 of Jan- HELMS, Mr. CAMPBELL, Mr. DORGAN, munity development financial institu- Mr. BURNS, Mr. GREGG, Mr. ENZI, Mr. uary 23, 1995. tions. The fund invests federal re- WILLIAM J. CLINTON. WARNER, Mr. MURKOWSKI, Mr. COCH- RAN, Mr. ROBERTS, Mr. NICKLES, Mr. sources in—and builds the capacity of— THE WHITE HOUSE, July 29, 1999. SMITH of Oregon, Mr. CHAFEE, Mr. private, for-profit and nonprofit finan- f HUTCHINSON, Mr. STEVENS, Mr. CRAIG, cial institutions, leveraging private Mr. THOMPSON, Mr. HAGEL, Mr. capital and private-sector talent and REPORTS OF COMMITTEES LUGAR, Mr. HOLLINGS, Mr. KENNEDY, creativity. The fund invests in CDFI’s The following reports of committees Mr. KERRY, Ms. LANDRIEU, Mr. LEVIN, using flexible tools such as equity in- were submitted: Mr. LAUTENBERG, Mr. AKAKA, Mr. vestments, loans, grants, and deposits, BAYH, Mr. BIDEN, Mr. BINGAMAN, Mr. By Mr. MURKOWSKI, from the Committee BYRD, Mr. CLELAND, Mr. DURBIN, Mrs. depending upon market and institu- on Energy and Natural Resources, with an FEINSTEIN, Mrs. MURRAY, Mr. SMITH tional needs. amendment in the nature of a substitute: of New Hampshire, Mr. TORRICELLI, The Core Component is the CDFI S. 244. A bill to authorize the construction Mr. BREAUX, Mr. SESSIONS, Mr. REID, Fund’s main program. In order to be of the Lewis and Clark Rural Water System Mr. ROBB, Mr. BRYAN, Mr. ROCKE- certified for funding, an entity must and to authorize assistance to the Lewis and FELLER, Mr. VOINOVICH, Mr. THOMAS, Clark Rural Water System, Inc., a nonprofit demonstrate that it has a primary mis- Mr. REED, Mr. KERREY, Mr. HATCH, corporation, for the planning and construc- sion of promoting community develop- Mr. FRIST, Mr. CONRAD, Mr. JOHNSON, tion of the water supply system, and for ment, principally serves an under- Mr. BAUCUS, Mr. INOUYE, Ms. MIKUL- other purposes (Rept. No. 106–130). served investment area or targeted SKI, and Mr. GORTON): By Mr. MCCAIN, from the Committee on S. 1468. A bill to authorize the minting and population, makes loan or development Commerce, Science, and Transportation, issuance of Capitol Visitor Center Com- investments as its predominant busi- with an amendment in the nature of a sub- memorative coins, and for other purposes; ness activity, provides development stitute: considered and passed. services, maintains accountability to S. 761. A bill to regulate interstate com- By Mr. CONRAD: merce by electronic means by permitting its target market, and is a non-govern- S. 1469. A bill to amend the Community and encouraging the continued expansion of ment entity. Development Banking and Financial Institu- electronic commerce through the operation In order for a geographical area to be tions Act of 1994 with respect to population of free market forces, and for other purposes eligible for investment, one of a num- outmigration levels in rural areas; to the (Rept. No. 106–131). Committee on Banking, Housing, and Urban ber of objectively-defined economic f Affairs. distress criteria must be met. By Mr. LAUTENBERG: The problem, Mr. President, is that EXECUTIVE REPORTS OF S. 1470. A bill to amend the Clean Air Act the objective measures of economic COMMITTEES to ensure that adequate actions are taken to distress as currently defined by the The following executive reports of detect, prevent, and minimize the con- CDFI Fund do not fully reflect eco- committees were submitted: sequences of accidental releases that result nomic distress in low-population areas. from criminal activity that may cause sub- Allow me to share just a couple exam- By Mr. WARNER, for the Committee on stantial harm to public health, safety, and Armed Services: ples with my colleagues. the environment; to the Committee on Envi- First, significant parts of low-popu- The following named officer for appoint- ronment and Public Works. ment in the United States Army to the grade lation rural states like North Dakota indicated while assigned to a position of im- f have historically low unemployment portance and responsibility under title 10, SUBMISSION OF CONCURRENT AND rates and therefore cannot qualify on U.S.C., section 601: SENATE RESOLUTIONS that basis. In many rural areas unem- To be lieutenant general The following concurrent resolutions ployment remains statistically nearly Lt. Gen. John M. Pickler, 0000 and Senate resolutions were read, and non-existent despite—and in fact be- The following named officer for appoint- referred (or acted upon), as indicated: cause of—a lack of non-agricultural ment in the United States Army to the grade jobs. In rural North Dakota, the unem- By Mr. COCHRAN (for himself, Mr. indicated while assigned to a position of im- ployed have little choice but to leave MCCAIN, Mr. STEVENS, and Mr. GRA- portance and responsibility under title 10, HAM): for urban areas. U.S.C., section 601: S. Res. 169. A resolution commending Gen- The result is unemployment rates as To be lieutenant general eral Wesley K. Clark, United States Army; to low as two or three percent in rural Lt. Gen. Larry R. Jordan, 0000 the Committee on Armed Services. parts of my state and the misleading

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00062 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9947 impression of a strong economy. It is story of out-migration in a dozen coun- ical plants is a serious threat to public also worth noting that such rural areas ties in my state. safety. The scenarios they describe are often suffer from high underemploy- Mr. President, instead of wheat or truly chilling. ment, rather than high unemployment. sunflowers, the top export in many The concerns about criminal attack Additionally, the CDFI Fund pro- parts of farm country is people. Unless on chemical plants were initially gram considers an area economically they can find work in the shrinking ag- raised in the context of Internet access distressed if median family income is riculture industry, increasing numbers to chemical accident information. at or below 80 percent of the national of Americans who were born and raised Some were concerned that criminals average, or if the percentage of the in the rural Upper Great Plains are could use chemical accident informa- population living in poverty is at least being forced to the cities to find work. tion, gained through the Internet, to 20 percent. Here again, Mr. President, They become statistics in a continuing target their attacks. In response, we these criteria do not accurately cap- and under-recognized exodus driven by will soon send a bill to the President ture the level of economic distress in economic depression, one that is de- that will balance the benefits of public low-population rural areas. Prolonged stroying two of our nation’s greatest access to chemical accident informa- out-migration in many rural areas due assets: its small towns and family tion against the threat of criminal at- to the loss of family farms and a short- farms. tack. age of non-agricultural jobs keeps me- Mr. President, I want to see the CDFI However, Mr. President, the under- dian incomes at higher levels. program work for rural America, to lying issue is not Internet access to There are other economic distress help save our rural communities and such information—no resourceful criteria in the CDFI program, Mr. keep people on the land. Today, I am criminal needs the Internet to find a President, but they all share one thing introducing legislation that will help it chemical plant to attack. A chemical in common: they all fail to fully reg- do just that. plant target can be found by driving ister the unique economic distress Mr. President, my bill is very simple. through neighborhood, reading a city found in a good part of rural America. It amends the Riegle Community De- map, or accessing information already This leads me to the most frustrating velopment and Regulatory Improve- available from government and busi- aspect of the CDFI program for many ment Act of 1994 to allow non-metro ness sources. low-population rural areas. Current counties to qualify for the CDFI pro- The real issue is the vulnerability of CDFI guidelines consider an area eco- gram if net migration loss—rather chemical facilities to attack—a vulner- nomically distressed and suffering than just overall population loss—was ability which can arise from a lack of from out-migration if county popu- at least 10 percent during the years adequate security at chemical facili- lation loss between 1980 and 1990 was at 1980 to 1990. ties, as well as the use of inherently least 10 percent. This effort to utilize Let me be clear: my bill does not hazardous chemical operations, even out-migration figures as a measure of strike any part of the Riegle Act and when safer technologies are available. economic distress is laudable. However, does not make major revisions to that The Chemical Security Act of 1999 the CDFI program does so in a manner landmark legislation. Rather, my bill will directly address the potential dan- that does nothing for many parts of makes a technical, perfecting correc- ger of criminal attack on chemical fa- rural America, including my state. tion that will help make the CDFI cilities. First, the Act will clarify that Mr. President, change in the size of a Fund work as intended for rural Amer- it is the general duty of chemical fa- population has two components. One is ica. Consequently, I have entitled this cilities under the Clean Air Act to re- what demographers term natural popu- measure the CDFI Technical Correc- duce their own vulnerability to crimi- lation growth. This is computed by tions Act. nal attack. Second, it will require the subtracting deaths from births. The Eighteen states and the District of Attorney General, within one year, to other variable is migration, which is Columbia, had populations of fewer determine whether chemical facilities determined by subtracting departures than two million people during the 1990 are taking adequate measures to re- from arrivals. Census, Mr. President. That is roughly duce their vulnerability to criminal at- If you assumed that out-migration- one-third of the states. Yet of all the tacks that could cause substantial related economic distress was deter- Core Component loans the CDFI Fund harm to public health, safety, and envi- mined under the CDFI program by has made over the past three years, ronment. Third, if the Attorney Gen- looking at out-migration numbers, you only about 12 percent have been to en- eral finds that chemical facilities are would be mistaken. In fact, birth and tities in these low-population states. not taking such actions, the Act will mortality rates are effectively factored The CDFI economic distress criteria require the Attorney General, in con- into calculations of out-migration. need to be changed to more accurately sultation with the Environmental Pro- Instead of net migration loss, the de- reflect the level of economic distress in tection Agency, within two years, to terminate criterion under current much of rural America. I urge my col- promulgate regulations requiring ap- CDFI guidelines is the change in the leagues to join me in fixing the CDFI propriate measures to detect, prevent, overall sum total of the population economic distress criteria by passing and minimize the consequences of such from 1980 to 1990. Consequently, many my technical corrections bill. criminal attack. counties that have experienced a con- Mr. President, the American public tinual hemorrhage of population to the By Mr. LAUTENBERG: has the right to chemical facilities cities, but also which have robust birth S. 1470. A bill to amend the Clean Air that are safe from criminal attack. rates and long life expectancies, have Act to ensure that adequate actions I urge my colleagues to co-sponsor not qualified for the CDFI program. are taken to detect, prevent, and mini- this legislation.∑ Mr. President, this makes no sense. mize the consequences of accidental re- f Natality and mortality rates have leases that result from criminal activ- ADDITIONAL COSPONSORS nothing to do with out-migration. ity that may cause substantial harm to Just a couple of statistics illustrate public health, safety, and the environ- S. 218 why this problem needs to be fixed. ment; to the Committee on Environ- At the request of Mr. MOYNIHAN, the Nearly every non-metro county in ment and Public Works. name of the Senator from Pennsyl- North Dakota experienced a more than CHEMICAL SECURITY ACT OF 1999 vania (Mr. SANTORUM) was added as a 10 percent net migration loss between ∑ Mr. LAUTENBERG. Mr. President, I cosponsor of S. 218, a bill to amend the 1980 and 1990. However, today only rise to introduce the Chemical Secu- Harmonized Tariff Schedule of the slightly more than two thirds of rural rity Act of 1999, a bill which will ad- United States to provide for equitable North Dakota counties qualify for the dress the threat of criminal attack on duty treatment for certain wool used CDFI program because the program’s chemical facilities. in making suits. guidelines measure overall population The FBI and the Agency for Toxic S. 285 change, not net migration loss. Birth Substances and Disease Registry have At the request of Mr. MCCAIN, the rates have been high enough and life- warned us that the possibility of ter- name of the Senator from Pennsyl- spans long enough to hide the real rorist and criminal attacks on chem- vania (Mr. SANTORUM) was added as a

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00063 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9948 CONGRESSIONAL RECORD — SENATE July 30, 1999 cosponsor of S. 285, a bill to amend Rhode Island (Mr. CHAFEE) were added (Mr. BINGAMAN) was added as a cospon- title II of the Social Security Act to re- as cosponsors of S. 1131, a bill to pro- sor of Senate Concurrent Resolution 32, store the link between the maximum mote research into, and the develop- a concurrent resolution expressing the amount of earnings by blind individ- ment of an ultimate cure for, the dis- sense of Congress regarding the guar- uals permitted without demonstrating ease known as Fragile X. anteed coverage of chiropractic serv- ability to engage in substantial gainful S. 1145 ices under the Medicare+Choice pro- activity and the exempt amount per- At the request of Mr. LEAHY, the gram. mitted in determining excess earnings name of the Senator from Illinois (Mr. SENATE RESOLUTION 92 under the earnings test. DURBIN) was added as a cosponsor of S. At the request of Mrs. BOXER, the S. 472 1145, a bill to provide for the appoint- name of the Senator from Maine (Ms. At the request of Mr. GRASSLEY, the ment of additional Federal circuit and SNOWE) was added as a cosponsor of name of the Senator from Maryland district judges, and for other purposes. Senate Resolution 92, a resolution ex- (Mr. SARBANES) was added as a cospon- S. 1269 pressing the sense of the Senate that sor of S. 472, a bill to amend title XVIII At the request of Mr. MCCONNELL, funding for prostate cancer research of the Social Security Act to provide the name of the Senator from Missouri should be increased substantially. certain medicare beneficiaries with an (Mr. ASHCROFT) was added as a cospon- AMENDMENT NO. 1411 exemption to the financial limitations sor of S. 1269, a bill to provide that the At the request of Mr. ABRAHAM the imposed on physical, speech-language Federal Government and States shall names of the Senator from Ohio (Mr. pathology, and occupational therapy be subject to the same procedures and DEWINE), the Senator from Oklahoma services under part B of the medicare substantive laws that would apply to (Mr. INHOFE), the Senator from Maine program, and for other purposes. persons on whose behalf certain civil (Ms. COLLINS), and the Senator from S. 526 actions may be brought, and for other Pennsylvania (Mr. SANTORUM) were At the request of Mr. HAGEL, his purposes. added as cosponsors of amendment No. name was added as a cosponsor of S. S. 1277 1411 proposed to S. 1429, an original bill 526, a bill to amend the Internal Rev- At the request of Mr. BAUCUS, the to provide for reconciliation pursuant enue Code of 1986 to allow issuance of name of the Senator from South Da- to section 104 of the concurrent resolu- tax-exempt private activity bonds to kota (Mr. DASCHLE) was added as a co- tion on the budget for fiscal year 2000. finance public-private partnership ac- sponsor of S. 1277, a bill to amend title AMENDMENT NO. 1426 tivities relating to school facilities in XIX of the Social Security Act to es- At the request of Mr. THURMOND his public elementary and secondary tablish a new prospective payment sys- name was added as a cosponsor of schools, and for other purposes. tem for Federally-qualified health cen- amendment No. 1426 proposed to S. S. 805 ters and rural health clinics. 1429, an original bill to provide for rec- At the request of Mr. DURBIN, the At the request of Mr. LEAHY, his onciliation pursuant to section 104 of names of the Senator from Hawaii (Mr. name was added as a cosponsor of S. the concurrent resolution on the budg- INOUYE), the Senator from Rhode Is- 1277, supra. et for fiscal year 2000. land (Mr. REED), and the Senator from S. 1300 At the request of Mr. ABRAHAM his New York (Mr. MOYNIHAN) were added At the request of Mr. LEAHY, his name was added as a cosponsor of as cosponsors of S. 805, a bill to amend name was added as a cosponsor of S. amendment No. 1426 proposed to S. title V of the Social Security Act to 1300, a bill to amend the Internal Rev- 1429, supra. provide for the establishment and oper- enue Code of 1986 and the Employee Re- AMENDMENT NO. 1441 ation of asthma treatment services for tirement Income Security Act of 1974 At the request of Mr. DORGAN the children, and for other purposes. to prevent the wearing away of an em- names of the Senator from Virginia S. 877 ployee’s accrued benefit under a de- (Mr. ROBB), the Senator from Wis- At the request of Mr. BROWNBACK, the fined plan by the adoption of a plan consin (Mr. KOHL), the Senator from name of the Senator from Kansas (Mr. amendment reducing future accruals South Dakota (Mr. JOHNSON), and the ROBERTS) was added as a cosponsor of under the plan. Senator from Washington (Mrs. MUR- S. 877, a bill to encourage the provision S. 1438 RAY) were added as cosponsors of of advanced service, and for other pur- At the request of Mr. CAMPBELL, the amendment No. 1441 proposed to S. poses. name of the Senator from Washington 1429, an original bill to provide for rec- S. 1023 (Mr. GORTON) was added as a cosponsor onciliation pursuant to section 104 of At the request of Mr. MOYNIHAN, the of S. 1438, a bill to establish the Na- the concurrent resolution on the budg- name of the Senator from California tional Law Enforcement Museum on et for fiscal year 2000. (Mrs. BOXER) was added as a cosponsor Federal land in the District of Colum- AMENDMENT NO. 1442 of S. 1023, a bill to amend title XVIII of bia. At the request of Mr. BREAUX the the Social Security Act to stabilize in- S. 1449 name of the Senator from Louisiana direct graduate medical education pay- At the request of Mr. CONRAD, the (Ms. LANDRIEU) was added as a cospon- ments. name of the Senator from Mississippi sor of amendment No. 1442 proposed to S. 1036 (Mr. COCHRAN) was added as a cospon- S. 1429, an original bill to provide for At the request of Mr. KOHL, the name sor of S. 1449, a bill to amend title reconciliation pursuant to section 104 of the Senator from Maine (Ms. SNOWE) XVIII of the Social Security Act to in- of the concurrent resolution on the was added as a cosponsor of S. 1036, a crease the payment amount for renal budget for fiscal year 2000. bill to amend parts A and D of title IV dialysis services furnished under the AMENDMENT NO. 1454 of the Social Security Act to give medicare program. At the request of Mr. KENNEDY his States the option to pass through di- SENATE CONCURRENT RESOLUTION 9 name was added as a cosponsor of rectly to a family receiving assistance At the request of Ms. SNOWE, the amendment No. 1454 proposed to S. under the temporary assistance to name of the Senator from Arkansas 1429, an original bill to provide for rec- needy families program all child sup- (Mrs. LINCOLN) was added as a cospon- onciliation pursuant to section 104 of port collected by the State and the op- sor of Senate Concurrent Resolution 9, the concurrent resolution on the budg- tion to disregard any child support a concurrent resolution calling for a et for fiscal year 2000. that the family receives in determining United States effort to end restrictions At the request of Mr. WELLSTONE his a family’s eligibility for, or amount of, on the freedoms and human rights of name was added as a cosponsor of assistance under that program. the enclaved people in the occupied amendment No. 1454 proposed to S. S. 1131 area of Cyprus. 1429, supra. At the request of Mr. EDWARDS, the SENATE CONCURRENT RESOLUTION 32 AMENDMENT NO. 1455 names of the Senator from North Caro- At the request of Mr. CONRAD, the At the request of Mr. ABRAHAM the lina (Mr. HELMS) and the Senator from name of the Senator from New Mexico name of the Senator from Nebraska

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00064 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9949 (Mr. HAGEL) was added as a cosponsor Whereas General Clark was integral to the tail our military operations in Kosovo of amendment No. 1455 proposed to S. formulation of the Dayton Accords; and Serbia. His grasp of every nuance 1429, an original bill to provide for rec- Whereas General Clark most recently dis- of every plan and option, was evident, onciliation pursuant to section 104 of tinguished himself by his tireless, resource- and only reinforced his reputation for ful, and successful leadership of the first the concurrent resolution on the budg- military action of the North Atlantic Treaty thoroughness. Nothing demonstrates et for fiscal year 2000. Organization despite severe constraints; and his reputation for thoroughness and re- AMENDMENT NO. 1460 Whereas General Clark’s record of exem- sourcefulness. Nothing demonstrates At the request of Mr. STEVENS the plary and dedicated service is an example this more clearly than one simple fact: names of the Senator from Alaska (Mr. which all military officers should seek to In an environment where General MURKOWSKI), the Senator from Hawaii emulate and is deserving of special recogni- Clark was operating under severe con- (Mr. INOUYE), the Senator from South tion: Now, therefore, be it straints, he led NATO forces to victory. Resolved, That (a) the United States Senate Carolina (Mr. HOLLINGS), the Senator commends and expresses its gratitude to He was tireless; he was imaginative; from Louisiana (Mr. BREAUX), the Sen- General Wesley K. Clark, United States and ultimately, he was victorious. ator from Alabama (Mr. SHELBY), the Army, for his outstanding record of military This resolution commends General Senator from Washington (Mr. GOR- service to the United States of America. Clark and expresses the Senate’s grati- TON), the Senator from Washington (b) The Secretary of the Senate shall tude to him not just because of his re- (Mrs. MURRAY), and the Senator from transmit a copy of this resolution to General cent service, but because of his lifetime Mississippi (Mr. COCHRAN) were added Wesley K. Clark. of service. General Clark deserves rec- as cosponsors of amendment No. 1460 Mr. COCHRAN. Mr. President, I am ognition not only for achieving results, proposed to S. 1429, an original bill to submitting today a resolution which but also for his personal integrity. His provide for reconciliation pursuant to commends General Wesley K. Clark for record of saying what he believes section 104 of the concurrent resolution his outstanding service to the United should be said without respect to on the budget for fiscal year 2000. States. I am pleased to be joined by Mr. whether that is what other people nec- AMENDMENT NO. 1479 MCCAIN and Mr. STEVENS as cosponsors essarily want to hear is an example At the request of Mr. JOHNSON the of the resolution. that others should seek to emulate. name of the Senator from Nevada (Mr. I was sorry to learn from the Wednes- General Wes Clark has had a career REID) was added as a cosponsor of day morning’s newspapers that General distinguished by exemplary and dedi- amendment No. 1479 proposed to S. Clark would be leaving his current cated service to our Nation. I urge the 1429, an original bill to provide for rec- post, where he serves simultaneously adoption of the Senate of this resolu- onciliation pursuant to section 104 of as the NATO Supreme Allied Com- tion. the concurrent resolution on the budg- mander Europe and as Commander-in- The PRESIDING OFFICER. The Sen- et for fiscal year 2000. Chief of the United States European ator from the great State of Arkansas. AMENDMENT NO. 1480 Command, before his tour was sched- Mr. HUTCHINSON. Mr. President, At the request of Mr. COVERDELL his uled to end. When General Clark re- first of all, I commend the distin- name was added as a cosponsor of tires next year, the United States will guished Senator from Mississippi for amendment No. 1480 intended to be pro- be losing one of its finest officers. And the introduction of this resolution. I posed to S. 1429, an original bill to pro- I say that not just because of what he associate myself with his remarks. I vide for reconciliation pursuant to sec- just accomplished in successfully lead- note for the RECORD, among the bio- tion 104 of the concurrent resolution on ing NATO forces into battle for the graphical comments that Senator the budget for fiscal year 2000. first time, but because of the exem- COCHRAN made concerning General AMENDMENT NO. 1488 plary record General Clark compiled Clark, special emphasis on the fact At the request of Mr. STEVENS the over 33 years of service to our Nation. that he hails from Little Rock, AK. names of the Senator from Alaska (Mr. Wes Clark graduated first in his class So with my fellow Arkansans, we ex- MURKOWSKI), the Senator from Hawaii from West Point in 1966, and was se- press our pride at General Clark and (Mr. INOUYE), the Senator from South lected to attend Oxford University as a his exemplary career, the service he Carolina (Mr. HOLLINGS), the Senator Rhodes Scholar. After graduating from has rendered our country with great from Louisiana (Mr. BREAUX), the Sen- Oxford General Clark distinguished distinction. I commend the Senator ator from Alabama (Mr. SHELBY), the himself in Vietnam, where he com- from Mississippi for introducing, I Senator from Washington (Mr. GOR- manded a mechanized infantry com- think, a very important resolution. TON), the Senator from Washington pany in combat. General Clark went on Mr. COCHRAN. Mr. President, I (Mrs. MURRAY), and the Senator from to command two other companies, as thank the distinguished Senator from Mississippi (Mr. COCHRAN) were added well as an armor battalion at Fort Car- Arkansas for his kind remarks. We ap- as cosponsors of amendment No. 1488 son, Colorado, a brigade in the 4th In- preciate very much his cosponsorship proposed to S. 1429, an original bill to fantry Division, also at Fort Carson, of the resolution. provide for reconciliation pursuant to the National Training Center at Fort f section 104 of the concurrent resolution Irwin, California, the 1st Calvary Divi- on the budget for fiscal year 2000. sion at Fort Hood, Texas, and the AMENDMENTS SUBMITTED f United States Southern Command, headquartered in Panama. AGRICULTURE APPROPRIATIOINS SENATE RESOLUTION 169—COM- I won’t list the numerous staff jobs FOR FY 2000 MENDING GENERAL WESLEY K. in which General Clark has served, but CLARK, UNITED STATES ARMY I do point out that General Clark, as Mr. COCHRAN (for himself, Mr. the Director of Strategic Plans and BAUCUS AMENDMENT NO. 1495 MCCAIN, and Mr. STEVENS) submitted Policy on the Joint Staff, was integral (Ordered to lie on the table.) the following resolution; which was re- to the formulation of the Bosnian Mr. BAUCUS submitted an amend- ferred to the Committee on Armed Peace Accords, negotiated in Dayton. ment intended to be proposed by him Services: In reviewing the numerous positions to the bill (S. 1233) making appropria- S. RES. 169 General Clark has held since he grad- tions for Agriculture, Rural Develop- Whereas General Wesley K. Clark has had uated from West Point, it is beyond ment, Food and Drug Administration, a long and distinguished military career, question that Wes Clark is an officer and Related Agencies programs for the which includes graduating first in the class who has served our Nation well during of 1966 from the United States Military fiscal year ending September 30, 2000, the last 33 years. and for other purposes; as follows: Academy at West Point and serving in com- I recently had a chance to visit with mand positions at every level in the United General Clark at his headquarters in On page 76, between lines 6 and 7, insert States Army, culminating in service concur- the following: rently in the positions of Supreme Allied Brussels. Despite months of getting lit- SEC. 7ll. SENSE OF THE SENATE CON- Commander, Europe and Commander-in- tle sleep, I’m told it was about four CERNING ACTIONS BY THE WORLD TRADE ORGA- Chief of the United States European Com- hours per night, General Clark was NIZATION RELATING TO TRADE IN AGRICUL- mand; able to explain to me clearly and in de- TURAL COMMODITIES.—

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(a) FINDINGS.—The Senate finds that— a church plan (within the meaning of section (c) EFFECTIVE DATE.—The amendments (1) agricultural producers in the United 414(e)) with respect to which an election made by this section shall apply to plan States compete effectively when world mar- under section 410(d) has not been made.’’ years beginning after December 31, 2000. kets are not distorted by government inter- On page 158, strike lines 8 and 9, and insert: SEC. ll. INCREASE IN SECTION 415 EARLY RE- vention; ‘‘(B) an individual account plan which is TIREMENT LIMIT FOR GOVERN- (2) the elimination of barriers to competi- subject to the funding standards of section MENTAL AND OTHER PLANS. tion in world markets for agricultural com- 302. (a) IN GENERAL.—Subclause (II) of section modities is in the interest of producers and Such term shall not include a governmental 415(b)(2)(F)(i), as amended by section 346(c), consumers in the United States; plan (within the meaning of section 3(32)) or is amended— (3) the United States must provide leader- a church plan (within the meaning of section (1) by striking ‘‘$75,000’’ and inserting ‘‘80 ship on the opening of the agricultural mar- 3(33)) with respect to which an election under percent of the dollar amount in effect under kets in upcoming multilateral World Trade section 410(d) of the Internal Revenue Code paragraph (1)(A)’’, and Organization negotiations; of 1986 has not been made.’’ (2) by striking ‘‘the $75,000 limitation’’ and (4) countries that import agricultural com- inserting ‘‘80 percent of such dollar On page 161, after line 23, insert: modities are more likely to liberalize prac- amount’’. ll tices if they are confident that their trading SEC. . MAXIMUM CONTRIBUTION DEDUCTION (b) EFFECTIVE DATE.—The amendments partners will not curtail the availability of RULES MODIFIED AND APPLIED TO made by this section shall apply to years be- ALL DEFINED BENEFIT PLANS. agricultural commodities on world markets ginning after December 31, 1999. (a) IN GENERAL.—Subparagraph (D) of sec- for foreign policy purposes; and On page 180, after line 24, insert: (5) a multilateral commitment to use the tion 404(a)(1) (relating to special rule in case open market, rather than government inter- of certain plans) is amended to read as fol- SEC. 370A. REPORTING SIMPLIFICATION. vention, to guarantee food security would lows: (a) SIMPLIFIED ANNUAL FILING REQUIRE- advance the interests of the farm community ‘‘(D) SPECIAL RULE IN CASE OF CERTAIN MENT FOR OWNERS AND THEIR SPOUSES.— of the United States. PLANS.— (1) IN GENERAL.—The Secretary of the (b) SENSE OF THE SENATE.—It is the sense ‘‘(i) IN GENERAL.—In the case of any defined Treasury shall modify the requirements for of the Senate that— benefit plan, except as provided in regula- filing annual returns with respect to one- (1) members of the World Trade Organiza- tions, the maximum amount deductible participant retirement plans to ensure that tion should undertake multilateral negotia- under the limitations of this paragraph shall such plans with assets of $500,000 or less as of tions to eliminate policies and programs not be less than the unfunded termination li- the close of the plan year need not file a re- that distort world markets for agricultural ability (determined as if the proposed termi- turn for that year. commodities; and nation date referred to in section (2) ONE-PARTICIPANT RETIREMENT PLAN DE- (2) as part of the multilateral negotiations, 4041(b)(2)(A)(i)(II) of the Employee Retire- FINED.—For purposes of this subsection, the members of the World Trade Organization ment Income Security Act of 1974 were the term ‘‘one-participant retirement plan’’ should agree to renounce the use of unilat- last day of the plan year). means a retirement plan that— eral sanctions to prohibit, restrict, or condi- ‘‘(ii) PLANS WITH LESS THAN 100 PARTICI- (A) on the first day of the plan year— tion agricultural exports. PANTS.—For purposes of this subparagraph, (i) covered only the employer (and the em- in the case of a plan which has less than 100 ployer’s spouse) and the employer owned the f participants for the plan year, termination entire business (whether or not incor- TAXPAYERS REFUND ACT OF 1999 liability shall not include the liability at- porated), or tributable to benefit increases for highly (ii) covered only one or more partners (and compensated employees (as defined in sec- their spouses) in a business partnership (including partners in an S or C corporation), ROTH (AND MOYNIHAN) tion 414(q)) resulting from a plan amendment which is made or becomes effective, which- (B) meets the minimum coverage require- AMENDMENT NO. 1496 ever is later, within the last 2 years before ments of section 410(b) of the Internal Rev- Mr. ROTH (for himself and Mr. MOY- the termination date. enue Code of 1986 without being combined NIHAN) proposed an amendment to the ‘‘(iii) RULE FOR DETERMINING NUMBER OF with any other plan of the business that cov- bill, S. 1429, supra; as follows: PARTICIPANTS.—For purposes of determining ers the employees of the business, whether a plan has more than 100 partici- (C) does not provide benefits to anyone ex- On page 10, strike the matter between lines pants, all defined benefit plans maintained cept the employer (and the employer’s 19 and 20 (as added by the Hutchison amend- by the same employer (or any member of spouse) or the partners (and their spouses), ment), and insert: such employer’s controlled group (within the (D) does not cover a business that is a Applicable meaning of section 412(l)(8)(C))) shall be member of an affiliated service group, a con- ‘‘Calendar year: dollar amount: treated as 1 plan, but only employees of such trolled group of corporations, or a group of 2006 ...... $4,000 member or employer shall be taken into ac- businesses under common control, and 2007 and thereafter ...... $5,000. count. (E) does not cover a business that leases On page 11, strike the matter before line 1 ‘‘(iv) PLANS ESTABLISHED AND MAINTAIN BY employees. (as added by the Hutchison amendment), and PROFESSIONAL SERVICE EMPLOYERS.—Clause (3) OTHER DEFINITIONS.—Terms used in insert: (i) shall not apply to a plan described in sec- paragraph (2) which are also used in section Applicable tion 4021(b)(13) of the Employee Retirement 414 of the Internal Revenue Code of 1986 shall ‘‘Calendar year: dollar amount: Income Security Act of 1974.’’. have the respective meanings given such 2006 ...... $2,000 (b) CONFORMING AMENDMENT.—Paragraph terms by such section. 2007 and thereafter ...... $2,500. (6) of section 4972(c) is amended to read as (b) SIMPLIFIED ANNUAL FILING REQUIRE- On page 11, line 3, strike ‘‘2008’’ (as added follows: MENT FOR PLANS WITH FEWER THAN 25 EM- by the Hutchison amendment) and insert ‘‘(6) EXCEPTIONS.—In determining the PLOYEES.—In the case of a retirement plan ‘‘2007’’. amount of nondeductible contributions for which covers less than 25 employees on the On page 11, line 11, strike ‘‘2007’’ (as added any taxable year, there shall not be taken 1st day of the plan year and meets the re- by the Hutchison amendment) and insert into account so much of the contributions to quirements described in subparagraphs (B), ‘‘2006’’. 1 or more defined contribution plans which (D), and (E) of subsection (a)(2), the Sec- On page 19, line 7, strike ‘‘50’’ and insert are not deductible when contributed solely retary of the Treasury shall provide for the ‘‘40’’. because of section 404(a)(7) as does not ex- filing of a simplified annual return that is In the section at the end of title II relating ceed the greater of— substantially similar to the annual return to expansion of adoption expenses (as added ‘‘(A) the amount of contributions not in required to be filed by a one-participant re- by the Landrieu amendment), strike ‘‘$7,500’’ excess of 6 percent of compensation (within tirement plan. and insert ‘‘$10,000’’. the meaning of section 404(a)) paid or ac- (c) EFFECTIVE DATE.—The provisions of On page 75, line 6, strike ‘‘section crued (during the taxable year for which the this section shall take effect on January 1, 401(a)(11)’’ and insert ‘‘sections 401(a)(11) and contributions were made) to beneficiaries 2001. 411(b)(1)(H)’’. under the plans, or On page 195, strike lines 4 through 9, and On page 87, line 3, strike ‘‘Section’’ and in- ‘‘(B) the sum of— insert: sert ‘‘Except as provided in subsection ‘‘(i) the amount of contributions described SEC. 404. EXTENSION OF EXCLUSION FOR EM- (b)(4)(A), section’’. in section 401(m)(4)(A), plus PLOYER-PROVIDED EDUCATIONAL On page 153, strike lines 17 and 18, and in- ‘‘(ii) the amount of contributions described ASSISTANCE. sert: in section 402(g)(3)(A). (a) IN GENERAL.—Section 127(d) (relating to ‘‘(2) an individual account plan which is For purposes of this paragraph, the deduct- termination of exclusion for educational as- subject to the funding standards of section ible limits under section 404(a)(7) shall first sistance programs) is amended by striking 412. be applied to amounts contributed to a de- ‘‘May 31, 2000’’ and inserting ‘‘December 31, Such term shall not include a governmental fined benefit plan and then to amounts de- 2003’’. plan (within the meaning of section 414(d)) or scribed in subparagraph (B).’’. On page 202, between lines 9 and 10, insert:

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9951 SEC. ll. CERTAIN EDUCATIONAL BENEFITS ness-related credits) is amended by adding at (determined without regard to any dollar PROVIDED BY AN EMPLOYER TO the end the following: limitation contained in such section). CHILDREN OF EMPLOYEES EXCLUD- ‘‘(D) INFLATION ADJUSTMENT.— ABLE FROM GROSS INCOME AS A ‘‘SEC. 45E. EMPLOYEE HEALTH INSURANCE EX- SCHOLARSHIP. PENSES. ‘‘(i) IN GENERAL.—In the case of any tax- (a) IN GENERAL.—Section 117 (relating to ‘‘(a) GENERAL RULE.—For purposes of sec- able year beginning in a calendar year after qualified scholarships) is amended by adding tion 38, in the case of a small employer, the 2001, the $16,000 amount contained in sub- at the end the following: employee health insurance expenses credit paragraph (A) shall be increased by an ‘‘(e) EMPLOYER-PROVIDED EDUCATIONAL determined under this section is an amount amount equal to— BENEFITS PROVIDED TO CHILDREN OF EMPLOY- equal to the applicable percentage of the ‘‘(I) such dollar amount, multiplied by EES.— amount paid by the taxpayer during the tax- ‘‘(II) the cost-of-living adjustment under ‘‘(1) IN GENERAL.—In determining whether able year for qualified employee health in- section 1(f)(3) for the calendar year in which any amount is a qualified scholarship for surance expenses. the taxable year begins, determined by sub- purposes of subsection (a), the fact that such ‘‘(b) APPLICABLE PERCENTAGE.—For pur- stituting ‘calendar year 2000’ for ‘calendar amount is provided in connection with an poses of subsection (a), the applicable per- year 1992’ in subparagraph (B) thereof. employment relationship shall be dis- centage is equal to— ‘‘(ii) ROUNDING.—If any increase deter- regarded if— ‘‘(1) 60 percent in the case of self-only cov- mined under clause (i) is not a multiple of ‘‘(A) such amount is provided by the em- erage, and $100, such amount shall be rounded to the ployer to a child (as defined in section ‘‘(2) 70 percent in the case of family cov- nearest multiple of $100. 161(c)(3)) of an employee of such employer, erage (as defined in section 220(c)(5)). ‘‘(e) CERTAIN RULES MADE APPLICABLE.—For ‘‘(B) such amount is provided pursuant to a ‘‘(c) PER EMPLOYEE DOLLAR LIMITATION.— purposes of this section, rules similar to the plan which meets the nondiscrimination re- The amount of qualified employee health in- rules of section 52 shall apply. quirements of subsection (d)(3), and surance expenses taken into account under ‘‘(f) DENIAL OF DOUBLE BENEFIT.—No de- ‘‘(C) amounts provided under such plan are subsection (a) with respect to any qualified duction or credit under any other provision in addition to any other compensation pay- employee for any taxable year shall not ex- of this chapter shall be allowed with respect able to employees and such plan does not ceed— to qualified employee health insurance ex- provide employees with a choice between ‘‘(1) $1,000 in the case of self-only coverage, penses taken into account under subsection such amounts and any other benefit. and (a).’’ (b) CREDIT TO BE PART OF GENERAL BUSI- ‘‘(2) $1,715 in the case of family coverage For purposes of subparagraph (C), the busi- NESS CREDIT.—Section 38(b) (relating to cur- (as so defined). ness practices of the employer (as well as rent year business credit) is amended by ‘‘(d) DEFINITIONS.—For purposes of this sec- such plan) shall be taken into account. striking ‘‘plus’’ at the end of paragraph (13), tion— ‘‘(2) DOLLAR LIMITATIONS.— by striking the period at the end of para- ‘‘(1) SMALL EMPLOYER.— ‘‘(A) PER CHILD.—The amount excluded graph (14) and inserting ‘‘, plus’’, and by add- ‘‘(A) IN GENERAL.—The term ‘small em- from the gross income of the employee by ing at the end the following: ployer’ means, with respect to any calendar reason of paragraph (1) for a taxable year ‘‘(15) the employee health insurance ex- year, any employer if such employer em- with respect to amounts provided to each penses credit determined under section 45E.’’ child of such employee shall not exceed ployed an average of 9 or fewer employees on (c) NO CARRYBACKS.—Subsection (d) of sec- $2,000. business days during either of the 2 pre- tion 39 (relating to carryback and ‘‘(B) AGGREGATE LIMIT.—The amount ex- ceding calendar years. For purposes of the carryforward of unused credits) is amended cluded from the gross income of the em- preceding sentence, a preceding calendar by adding at the end the following: ployee by reason of paragraph (1) for a tax- year may be taken into account only if the ‘‘(10) NO CARRYBACK OF SECTION 45E CREDIT able year (after the application of subpara- employer was in existence throughout such BEFORE EFFECTIVE DATE.—No portion of the graph (A)) shall not exceed the excess of the year. unused business credit for any taxable year dollar amount contained in section 127(a)(2) ‘‘(B) EMPLOYERS NOT IN EXISTENCE IN PRE- which is attributable to the employee health over the amount excluded from the employ- CEDING YEAR.—In the case of an employer insurance expenses credit determined under ee’s gross income under section 127 for such which was not in existence throughout the section 45E may be carried back to a taxable year. 1st preceding calendar year, the determina- year ending before January 1, 2001.’’ ‘‘(3) PRINCIPAL SHAREHOLDERS AND OWN- tion under subparagraph (A) shall be based (d) CLERICAL AMENDMENT.—The table of ERS.—Paragraph (1) shall not apply to any on the average number of employees that it sections for subpart D of part IV of sub- amount provided to any child of any indi- is reasonably expected such employer will chapter A of chapter 1 is amended by adding vidual if such individual (or such individual’s employ on business days in the current cal- at the end the following: spouse) owns (on any day of the year) more endar year. ‘‘Sec. 45E. Employee health insurance ex- than 5 percent of the stock or of the capital ‘‘(2) QUALIFIED EMPLOYEE HEALTH INSUR- penses.’’ or profits interest in the employer. ANCE EXPENSES.— (e) EFFECTIVE DATE.—The amendments ‘‘(4) DEGREE REQUIREMENT NOT TO APPLY.— ‘‘(A) IN GENERAL.—The term ‘qualified em- In the case of an amount which is treated as ployee health insurance expenses’ means any made by this section shall apply to amounts a qualified scholarship by reason of this sub- amount paid by an employer for health in- paid or incurred in taxable years beginning section, subsection (a) shall be applied with- surance coverage to the extent such amount after December 31, 2000. On page 268, between lines 3 and 4, insert out regard to the requirement that the re- is attributable to coverage provided to any the following: cipient be a candidate for a degree. employee while such employee is a qualified SEC. ll. HOLDING PERIOD REDUCED TO 12 ‘‘(5) CERTAIN OTHER RULES TO APPLY.— employee. MONTHS FOR PURPOSES OF DETER- XCEPTION FOR AMOUNTS PAID UNDER Rules similar to the rules of paragraphs (4), ‘‘(B) E MINING WHETHER HORSES ARE SEC- (5), and (7) of section 127(c) shall apply for SALARY REDUCTION ARRANGEMENTS.—No TION 1231 ASSETS. purposes of this subsection.’’ amount paid or incurred for health insurance (a) IN GENERAL.—Subparagraph (A) of sec- (b) EFFECTIVE DATE.—The amendment coverage pursuant to a salary reduction ar- tion 1231(b)(3) (relating to definition of prop- made by this section shall apply to taxable rangement shall be taken into account under erty used in the trade or business) is amend- years beginning after the date of enactment subparagraph (A). ed by striking ‘‘and horses’’. of this Act. ‘‘(C) HEALTH INSURANCE COVERAGE.—The (b) EFFECTIVE DATE.—The amendment On page 216, line 1, insert ‘‘and fishing’’ term ‘health insurance coverage’ has the made by this section shall apply to taxable after ‘‘farm’’. meaning given such term by section years beginning after December 31, 2000. On page 225, after line 24, insert: 9832(b)(1). On page 318, line 20, strike ‘‘increased’’ and SEC. ll. INCREASE IN ESTATE TAX DEDUCTION ‘‘(3) QUALIFIED EMPLOYEE.— insert ‘‘decreased’’. FOR FAMILY-OWNED BUSINESS IN- ‘‘(A) IN GENERAL.—The term ‘qualified em- On page 321, between lines 4 and 5, insert TEREST. ployee’ means, with respect to any period, an the following flush sentence: (a) IN GENERAL.—Section 2057(a)(2) (relat- employee of an employer if the total amount ing to maximum deduction) is amended by Notwithstanding the preceding sentence, of wages paid or incurred by such employer striking ‘‘$675,000’’ and inserting ‘‘$1,975,000’’. such securities shall be taken into account (b) CONFORMING AMENDMENTS.—Section to such employee at an annual rate during in determining whether such trust fails to 2057(a)(3)(B) (relating to coordination with the taxable year exceeds $5,000 but does not meet the requirements of section 856(c)(4)(B) unified credit) is amended by striking exceed $16,000. of such Code (as amended by such amend- ‘‘$675,000’’ each place it appears in the text ‘‘(B) TREATMENT OF CERTAIN EMPLOYEES.— ments) if such trust acquires or receives se- and heading and inserting ‘‘$1,975,000’’. For purposes of subparagraph (A), the term curities to which the preceding sentence does (c) EFFECTIVE DATE.—The amendments ‘employee’— not apply. made by this section shall apply to estates of ‘‘(i) shall not include an employee within On page 337, line 15, insert ‘‘on or’’ before decedents dying after December 31, 2000. the meaning of section 401(c)(1), but ‘‘before’’. SEC. ll. CREDIT FOR EMPLOYEE HEALTH IN- ‘‘(ii) shall include a leased employee within On page 341, between lines 23 and 24, insert: SURANCE EXPENSES. the meaning of section 414(n). ‘‘(C) EARNINGS AND PROFITS.—The earnings (a) IN GENERAL.—Subpart D of part IV of ‘‘(C) WAGES.—The term ‘wages’ has the and profits of any Native Corporation mak- subchapter A of chapter 1 (relating to busi- meaning given such term by section 3121(a) ing a contribution to a Settlement Trust

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00067 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9952 CONGRESSIONAL RECORD — SENATE July 30, 1999

shall not be reduced on account thereof at ‘‘(A) EDUCATIONAL INSTITUTION.—A quali- ‘‘(e) CREDIT FOR INCREASING MEDICAL INNO- the time of such contribution, but such earn- fied organization described in section VATION EXPENSES.— ings and profits shall be reduced (up to the 170(b)(1)(A)(iii) which is owned by, or affili- ‘‘(1) IN GENERAL.—No deduction shall be al- amount of such contribution) as distribu- ated with, an institution of higher education lowed for that portion of the qualified med- tions are thereafter made by the Settlement (as defined in section 3304(f)). ical innovation expenses (as defined in sec- Trust which exceed the sum of— ‘‘(B) TEACHING HOSPITAL.—A teaching hos- tion 41A(b)) otherwise allowable as a deduc- ‘‘(i) such Trust’s total undistributed net pital which— tion for the taxable year which is equal to income for all prior years during which an ‘‘(i) is publicly supported or owned by an the amount of the credit determined for such election under paragraph (2) is in effect, and organization described in section 501(c)(3), taxable year under section 41A(a). ‘‘(ii) such Trust’s distributable net income. and ‘‘(2) CERTAIN RULES TO APPLY.—Rules simi- On page 364, beginning on line 15, strike ‘‘(ii) is affiliated with an organization lar to the rules of paragraphs (2), (3), and (4) ‘‘under section 1216 of the Transportation meeting the requirements of subparagraph of subsection (c) shall apply for purposes of Equity Act for the 21st Century, as in effect (A). this subsection.’’. on July 21, 1999,’’. ‘‘(C) FOUNDATION.—A medical research or- (d) DEDUCTION FOR UNUSED PORTION OF On page 371, between lines 16 and 17, insert ganization described in section 501(c)(3) the following: CREDIT.—Section 196(c) (defining qualified (other than a private foundation) which is af- business credits) is amended by redesig- SEC. ll. CAPITAL GAIN TREATMENT UNDER filiated with, or owned by— nating paragraphs (5) through (8) as para- SECTION 631(b) TO APPLY TO OUT- ‘‘(i) an organization meeting the require- RIGHT SALES BY LAND OWNER. graphs (6) through (9), respectively, and by ments of subparagraph (A), or (a) IN GENERAL.—Subsection (b) of section inserting after paragraph (4) the following 631 (relating to disposal of timber with a re- ‘‘(ii) a teaching hospital meeting the renew paragraph: tained economic interest) is amended— quirements of subparagraph (B). ‘‘(5) the medical innovation expenses credit (1) by inserting ‘‘AND OUTRIGHT SALES OF ‘‘(D) CHARITABLE RESEARCH HOSPITAL.—A determined under section 41A(a) (other than TIMBER’’ after ‘‘ECONOMIC INTEREST’’ in the hospital that is designated as a cancer center such credit determined under the rules of subsection heading, and by the National Cancer Institute. section 280C(d)(2)),’’. ‘‘(4) EXCLUSION FOR AMOUNTS FUNDED BY (2) by adding before the last sentence the (e) CLERICAL AMENDMENT.—The table of GRANTS, ETC.—The term ‘qualified medical following new sentence: ‘‘The requirement in sections for subpart D of part IV of sub- innovation expenses’ shall not include any the first sentence of this subsection to retain chapter A of chapter 1 is amended by adding amount to the extent such amount is funded an economic interest in timber shall not after the item relating to section 41 the fol- by any grant, contract, or otherwise by an- apply to an outright sale of such timber by lowing: the owner thereof if such owner owned the other person (or any governmental entity). land (at the time of such sale) from which ‘‘(c) MEDICAL INNOVATION BASE PERIOD ‘‘Sec. 41A. Credit for medical innovation ex- the timber is cut.’’ AMOUNT.—For purposes of this section, the penses.’’. (b) EFFECTIVE DATE.—The amendments term ‘medical innovation base period amount’ means the average annual qualified (f) EFFECTIVE DATE.—The amendments made by this section shall apply to sales made by this section shall apply to taxable after the date of the enactment of this Act. medical innovation expenses paid by the taxpayer during the 3-taxable year period end- years beginning after December 31, 1998. SEC. ll. CREDIT FOR CLINICAL TESTING RE- SEARCH EXPENSES ATTRIBUTABLE ing with the taxable year immediately pre- TO CERTAIN QUALIFIED ACADEMIC ceding the first taxable year of the taxpayer f INSTITUTIONS INCLUDING TEACH- beginning after December 31, 1998. ING HOSPITALS. ‘‘(d) SPECIAL RULES.— (a) IN GENERAL.—Subpart D of part IV of ‘‘(1) LIMITATION ON FOREIGN TESTING.—No NOTICE OF HEARINGS subchapter A of chapter 1 (relating to busi- credit shall be allowed under this section COMMITTEE ON RULES AND ADMINISTRATION ness related credits) is amended by inserting with respect to any clinical testing research after section 41 the following: activities conducted outside the United Mr. McCONNELL. Mr. President, I ‘‘SEC. 41A. CREDIT FOR MEDICAL INNOVATION States. wish to announce that the Committee EXPENSES. ‘‘(2) CERTAIN RULES MADE APPLICABLE.— on Rules and Administration will meet ‘‘(a) GENERAL RULE.—For purposes of sec- Rules similar to the rules of subsections (f) on Wednesday, August 4, 1999 at 9:15 tion 38, the medical innovation credit deter- and (g) of section 41 shall apply for purposes a.m. in Room SR–301 Russell Senate mined under this section for the taxable year of this section. Office Building, to receive testimony shall be an amount equal to 40 percent of the ‘‘(3) ELECTION.—This section shall apply to excess (if any) of— any taxpayer for any taxable year only if on committee funding resolutions. ‘‘(1) the qualified medical innovation ex- such taxpayer elects to have this section For further information concerning penses for the taxable year, over apply for such taxable year. this meeting, please contact Tamara ‘‘(2) the medical innovation base period ‘‘(4) COORDINATION WITH CREDIT FOR IN- Somerville at the Rules Committee. amount. CREASING RESEARCH EXPENDITURES AND WITH COMMITTEE ON ENERGY AND NATURAL ‘‘(b) QUALIFIED MEDICAL INNOVATION EX- CREDIT FOR CLINICAL TESTING EXPENSES FOR RESOURCES PENSES.—For purposes of this section— CERTAIN DRUGS FOR RARE DISEASES.—Any ‘‘(1) IN GENERAL.—The term ‘qualified med- qualified medical innovation expense for a Mr. MURKOSWKI. Mr. President, I ical innovation expenses’ means the amounts taxable year to which an election under this would like to announce that a full com- which are paid or incurred by the taxpayer section applies shall not be taken into ac- during the taxable year directly or indirectly mittee oversight hearing has been count for purposes of determining the credit scheduled before the Committee on En- to any qualified academic institution for allowable under section 41 or 45C for such clinical testing research activities. taxable year.’’ ergy and Natural Resources. The hear- ‘‘(2) CLINICAL TESTING RESEARCH ACTIVI- (b) CREDIT TO BE PART OF GENERAL BUSI- ing will take place Tuesday, August 10, TIES.— NESS CREDIT.— 1999 at 8:00 a.m. at the 2nd Floor of the ‘‘(A) IN GENERAL.—The term ‘clinical test- (1) IN GENERAL.—Section 38(b) (relating to Federal Building and U.S. Court House, ing research activities’ means human clin- current year business credits), as amended 7th & C Street in Anchorage, AK. ical testing conducted at any qualified aca- by this Act, is amended by striking ‘‘plus’’ at The purpose of this hearing is to re- demic institution in the development of any the end of paragraph (14), by striking the pe- product, which occurs before— riod at the end of paragraph (15) and insert- ceive testimony on the implementation ‘‘(i) the date on which an application with ing ‘‘, plus’’, and by adding at the end the of the Alaska National Interest Lands respect to such product is approved under following: Conservation Act. The hearing will section 505(b), 506, or 507 of the Federal Food, ‘‘(16) the medical innovation expenses cred- focus on how the Act has been inter- Drug, and Cosmetic Act (as in effect on the it determined under section 41A(a).’’. preted and implemented by federal reg- date of the enactment of this section), (2) TRANSITION RULE.—Section 39(d), as ulators since its passage in December ‘‘(ii) the date on which a license for such amended by this Act, is amended by adding product is issued under section 351 of the of 1980. There will be testimony from at the end the following new paragraph: the Administration, state and local of- Public Health Service Act (as so in effect), or ‘‘(11) NO CARRYBACK OF SECTION 41A CREDIT ‘‘(iii) the date classification or approval of BEFORE ENACTMENT.—No portion of the un- ficials, and other interested parties. such product which is a device intended for used business credit for any taxable year Those who wish to testify or to sub- human use is given under section 513, 514, or which is attributable to the medical innova- mit written testimony should write to 515 of the Federal Food, Drug, and Cosmetic tion credit determined under section 41A the Committee on Energy and Natural Act (as so in effect). may be carried back to a taxable year begin- Resources, U.S. Senate, Washington, ‘‘(B) PRODUCT.—The term ‘product’ means ning before January 1, 1999.’’. D.C. 20510. Presentation of oral testi- any drug, biologic, or medical device. (c) DENIAL OF DOUBLE BENEFIT.—Section ‘‘(3) QUALIFIED ACADEMIC INSTITUTION.—The 280C, as amended by this Act, is amended by mony is by Committee invitation only. term ‘qualified academic institution’ means adding at the end the following new sub- For further information, please contact any of the following institutions: section: Jo Meuse or Brian Malnak.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00068 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9953 ADDITIONAL STATEMENTS Special Forces Tab, the Senior Para- under the following limitations: 2 chutist Badge, and the Ranger Tab. hours of total debate on the legislation Through his distinctive accomplish- equally divided between Senator COL- TRIBUTE TO COLONEL CHARLES ments, Colonel Charles W. Alsup cul- LINS and Senator LEVIN or their des- W. ALSUP, USA minates a distinguished career in the ignees; the only amendment in order be ∑ Mr. WARNER. Mr. President, it is service of his country and reflects a managers’ amendment offered by with great pleasure that I rise today to great credit upon himself, the United Senators COLLINS and LEVIN. I further pay tribute to a great patriot, soldier, States Army, the Defense Intelligence ask unanimous consent that following and father, Colonel Charles W. Alsup. Agency, and the Department of De- the expiration or yielding back of de- After nearly 28 years of dedicated serv- fense. bate time and the disposition of the ice around the world, Colonel Alsup I wish every success to Colonel Alsup managers’ amendment, the bill be read will retire from the United States as he finishes his truly remarkable a third time and then temporarily set Army on September 30, 1999. Colonel military career and thank him for a job aside. I finally ask unanimous consent Alsup was born in Birmingham, Ala- exceedingly well done.∑ that at 5:30 p.m. on Monday, the Senate bama. He enlisted in the Army in 1971 proceed to a vote on passage of the bill f as a private and was later commis- with no intervening action or debate. sioned as a Military Intelligence Sec- TRIBUTE TO RICHARD The PRESIDING OFFICER. Without ond Lieutenant upon completion of the TORTORELLI objection, it is so ordered. Infantry Officer Candidate School at ∑ Mr. SMITH of New Hampshire. Mr. f Fort Benning, Georgia. President, I rise today to honor Rich- ORDER FOR PRINTING OF S. 1344 Throughout his military career, ard Tortorelli of Milford, New Hamp- Mr. HUTCHINSON. Mr. President, I Colonel Alsup distinguished himself as shire, who has retired from the Milford a true professional and an exceptional ask unanimous consent that S. 1344, Fire Department after 41 years of serv- the Patients’ Bill of Rights Plus Act, leader. His initial assignments in- ice. cluded: a tour with 8th Special Forces as amended and passed by the Senate Richard began his career with the on July 15, 1999, be printed as a docu- Group, Fort Gulick, Panama; duties as Milford Fire Department while in high a counterintelligence special agent and ment of the Senate. school. At the age of 21, he joined the The PRESIDING OFFICER. Without staff officer with the 902th Military In- fire department as an on-call fire fight- objection, it is so ordered. telligence Group, Fort Meade, MD; and er. In 1986, he became the first full- f intelligence officer, 4th Battalion, 69th rime Fire Chief in Milford’s history. Armor Regiment, 8th Infantry Division Under his leadership, the fire depart- EXTENSION OF FUNDING LEVELS in Mainz, Germany during the height ment has seen many changes: a move FOR AVIATION PROGRAMS of the Cold War. He successfully com- from Town Hall in 1974 into the current Mr. HUTCHINSON. Mr. President, I manded at the company, battalion, and station, a change from a one-town dis- ask unanimous consent that the Sen- brigade levels, culminating with the patch center to the regional Milford ate now proceed to the immediate con- prestigious 501st Military Intelligence Area Communication Center, and sideration of S. 1467 introduced earlier Brigade, Yongsan, Korea. equipment updates along with special- today by Senator MCCAIN. Colonel Alsup also excelled at a vari- ized training. The PRESIDING OFFICER. The ety of teaching and staff officer posi- Even though Richard works in one of clerk will report the bill by title. tions, including Reserve Officer Train- the most dangerous professions in the The legislative clerk read as follows: ing Corps duty at the University of country, he has never lost a member of A bill (S. 1467) to extend the funding levels Alabama; Staff Group Leader, Com- his department. One of the most re- for aviation programs for 60 days. bined Arms and services Staff School, warding aspects of his career is that There being no objection, the Senate Fort Leavenworth; Director of Intel- the number of fire calls in Milford has proceeded to consider the bill. ligence, 24th Infantry Division, Fort decreased over the years. He acknowl- Mr. MCCAIN. Mr. President, I rise in Stewart, GA; Director of Intelligence, edges that teaching fire prevention is support of S. 1467. This bill will extend Eight U.S. Army, Yongsan, Korea; and not as thrilling as fighting a fire, how- the Federal Aviation Administration’s, duty on the Army Staff in Legislative ever it is very important. FAA, Airport Improvement Program, Liaison and the Directorate for Oper- I would like to thank Chief Tortorelli AIP, for sixty days. It is critical that ations and Plans. for his service to the Town of Milford, Congress complete the authorization Colonel Alsup’s final assignment as and his dedication and leadership to for this program for this fiscal year. Assistant Director of Intelligence for the Milford Fire Department. I com- Otherwise, the FAA will be prohibited the Joint Staff, Washington, DC, show- mend Richard for his exemplary career from issuing much-needed grants to cased his superior grasp of national in- airports in every state, regardless of and tireless efforts. I wish him luck in telligence issues, his impressive man- whether or not funds have been appro- his future endeavors. It is an honor to agement skills, and his ability to per- priated. In fact, there are still nearly represent him in the United States form under pressure. Colonel Alsup $300 million in appropriated funds for Senate.∑ provided unparalleled intelligence sup- the current fiscal year that cannot be port to the senior leadership of the Ex- f spent because AIP authority expires on ecutive and Legislative Branches, con- APPOINTMENT August 6. tributing significantly to their under- If we do not act to reauthorize this standing of national level crisis and The PRESIDING OFFICER. The program for at least the remainder of contingencies. His positive impact on Chair, on behalf of the Majority Lead- this fiscal year, we will cause harm to the Joint Staff, the Defense Intel- er, pursuant to Public Law 100–458, ap- the transportation infrastructure of ligence Agency, and the intelligence points the Senator from Virginia (Mr. our country. AIP grants play a critical community will be felt for years to WARNER) to the Board of Trustees of part in airport development. Without come. the John C. Stennis Center for Public these grants, important safety, secu- Colonel Alsup is a distinguished grad- Service Training and Development, for rity, and capacity projects will be ham- uate of the U.S. Army Command and a term ending October 11, 2004. pered throughout the country. There- General Staff College, Fort Leaven- f fore, we must act swiftly. worth and the Naval War College, New- The safety of the traveling public de- port, Rhode Island. His awards and UNANIMOUS CONSENT pends upon the continued flow of AIP decorations include the Defense Supe- AGREEMENT—S. 335 monies. For example, airports use rior Service Medal, the Legion of Merit Mr. HUTCHINSON. Mr. President, I these funds to install instrument land- with Oak Leaf Cluster, the Meritorious ask unanimous consent that at 1 p.m. ing systems, which help guide airplanes Service Medal with Four Oak Leaf on Monday, August 2, the Senate pro- to safe landings when visibility is im- Clusters, the Army Commendation ceed to the consideration of Calendar paired. AIP funds are also used for air- Medal with two Oak Leaf Clusters, the No. 191, S. 335, and that it be considered port safety projects related to runway

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00069 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9954 CONGRESSIONAL RECORD — SENATE July 30, 1999 approach lighting; aircraft deicing (c) EXTENSION OF AVIATION INSURANCE PRO- construct a Capitol Visitor Center to provide equipment; snow removal equipment; GRAM.—Section 44310 of such title is amended continued high security for the Capitol and repair of damaged runways; rescue and by striking ‘‘August 6, 1999.’’ and inserting enhance the educational experience of visi- firefighting equipment; and runway ‘‘October 5, 1999.’’. tors to the Capitol; (d) AIRWAY FACILITIES IMPROVEMENT PRO- (6) Congress would like to offer the oppor- safety areas for aircraft that have GRAM.—Section 48101(a) of such title is tunity for all persons to voluntarily partici- trouble stopping after a landing. It is amended by adding at the end thereof the pate in raising funds for the Capitol Visitor my understanding that AIP funds were following: Center; and used to construct an innovative ‘‘arres- ‘‘(4) $30,000,000 for the period beginning Oc- (7) it is appropriate to authorize coins com- tor bed’’ at the end of a runway at New tober 1, 1999, and ending October 5, 1999.’’ memorating the first convening of the Con- York’s JFK Airport. A few months ago, (e) FAA OPERATIONS.—Section 106(k) of gress in the Capitol building with proceeds such title is amended by striking ‘‘1999.’’ and from the sale of the coins, less expenses, that arrestor bed prevented a com- inserting ‘‘1999,’’ and $80,000,000 for the pe- muter plane from plunging into a bay. being deposited for the United States Capitol riod beginning October 1, 1999, and ending Preservation Commission with the specific It was credited with saving lives on October 5, 1999.’’. purpose of aiding in the construction, main- that flight. (f) LIQUIDATION OF CONTRACT AUTHORIZA- tenance, and preservation of a Capitol Vis- This bill will also extend the Avia- TION.—The provision of the Department of itor Center. Transportation and Related Agencies Appro- tion Insurance Program, which is com- SEC. 3. COIN SPECIFICATIONS. priations Act, 1999, with the caption monly known as the War Risk Insur- (a) DENOMINATIONS.—The Secretary of the ance Program. It provides insurance ‘‘GRANTS-IN-AID FOR AIRPORT (LIQUIDATION OF CONTRACT AUTHORIZATION) (AIRPORT AND AIR- Treasury (hereafter in this Act referred to as for commercial aircraft that are oper- WAY TRUST FUND)’’ is amended by striking the ‘‘Secretary’’) shall mint and issue the ating in high-risk areas, such as coun- ‘‘Code: Provided further, That no more than following coins: tries at war or on the verge of war. $975,000,000 of funds limited under this head- (1) BIMETALLIC COINS.—Not more than Commercial insurers will not usually ing may be obligated prior to the enactment 200,000 $10 bimetallic coins of gold and plat- provide coverage for such operations, of a bill extending contract authorization for inum, in accordance with such specifications which are often required to further the Grants-in-Aid for Airports program to as the Secretary determines to be appropriate. U.S. foreign policy or national security the third and fourth quarters of fiscal year 1999.’’ and inserting ‘‘Code.’’. (2) $1 SILVER COINS.—Not more than 500,000 objectives. For example, commercial $1 coins, which shall— airlines were needed to ferry troops f (A) weigh 26.73 grams; and equipment to the Middle East for UNITED STATES CAPITOL VISITOR (B) have a diameter of 1.500 inches; and Operations Desert Shield and Desert CENTER COMMEMORATIVE COIN (C) contain 90 percent silver and 10 percent Storm. If War Risk Insurance had not ACT OF 1999 copper. (3) HALF DOLLAR.—Not more than 750,000 been available, our troops may not Mr. HUTCHINSON. Mr. President, I have been adequately supported. half dollar clad coins, each of which— ask unanimous consent that the Sen- (A) shall weigh 11.34 grams; This extension will also give us more ate now proceed to the immediate con- (B) have a diameter of 1.205 inches; and time to work on a more comprehensive sideration of S. 1468 introduced earlier (C) be minted to the specifications for half aviation bill that is still desperately today by Senators LOTT, DASCHLE, and dollar coins contained in section 5112(b) of needed. We have been working hard to others. title 31, United States Code. accommodate the concerns that many The PRESIDING OFFICER. The (b) $5 GOLD COINS.—If the Secretary deter- Senators have with respect to provi- mines that the minting and issuance of clerk will report the bill by title. bimetallic coins under subsection (a)(1) is sions in S. 82, the Air Transportation The legislative clerk read as follows: Improvement Act. I believe we can not feasible, the Secretary may mint and A bill (S. 1468) to authorize the minting bring a bill to the floor that will re- issue instead not more than 100,000 $5 coins, and issuance of Capitol Visitor Center Com- which shall— quire very little of the Senate’s time. memorative coins, and for other purposes. (1) weigh 8.359 grams; Mr. President, I urge all of my col- There being no objection, the Senate (2) have a diameter of 0.850 inches; and leagues to support swift passage of this proceeded to consider the bill. (3) contain 90 percent gold and 10 percent short-term extension of the AIP. If we Mr. HUTCHINSON. Mr. President, I alloy. fail to act, the FAA will not be able to ask unanimous consent that the bill be (c) WAIVER.—Each of the mintage levels address vital security and safety needs read the third time and passed, the mo- specified in subsection (a) may be waived in in every State in the Nation. We must accordance with section 5112(m)(2)(B) of title tion to reconsider be laid upon the 31, United States Code. reaffirm our commitment to providing table, and any statements relating to the public with a safe and efficient air (d) LEGAL TENDER.—The coins minted this bill be printed in the RECORD. under this Act shall be legal tender, as pro- transportation system. This bill will The PRESIDING OFFICER. Without vided in section 5103 of title 31, United States help us meet that goal. objection, it is so ordered. Code. Mr. HUTCHINSON. Mr. President, I The bill (S. 1468) was read the third SEC. 4. SOURCES OF BULLION. ask unanimous consent that the bill be time and passed, as follows: (a) PLATINUM AND GOLD.—The Secretary read a third time and passed, the mo- S. 1468 shall obtain platinum and gold for minting tion to reconsider be laid upon the Be it enacted by the Senate and House of Rep- coins under this Act from available sources. table, and any statements relating to resentatives of the United States of America in (b) SILVER.—The Secretary may obtain sil- this bill be printed in the RECORD. Congress assembled, ver for minting coins under this Act from The PRESIDING OFFICER. Without SECTION 1. SHORT TITLE. stockpiles established under the Strategic objection, it is so ordered. This Act may be cited as the ‘‘United and Critical Materials Stock Piling Act, and The bill (S. 1467) was read the third States Capitol Visitor Center Commemora- from other available sources. time and passed, as follows: tive Coin Act of 1999’’. SEC. 5. DESIGN OF COINS. S. 1467 SEC. 2. FINDINGS. (a) DESIGN REQUIREMENTS.— Be in enacted by the Senate and House of Congress finds that— (1) IN GENERAL.—The design of the coins Representatives of the United States of America (1) Congress moved to Washington, District minted under this Act shall be emblematic in Congress assembled, of Columbia, and first convened in the Cap- of the first meeting of the United States SECTION 1. EXTENSION OF AIRPORT IMPROVE- itol building in the year 1800; Congress in the United States Capitol Build- MENT PROGRAM, ETC. (2) the Capitol building is now the greatest ing. (a) AUTHORIZATION OF APPROPRIATIONS.— visible symbol of representative democracy (2) DESIGNATION AND INSCRIPTIONS.—On Section 48103 of title 49, United States Code, in the world; each coin minted under this Act, there shall is amended by striking ‘‘$2,050,000,000 for the (3) the Capitol building has approximately be— period beginning October 1, 1998 and ending 5,000,000 visitors annually and suffers from a (A) a designation of the value of the coin; August 6, 1999.’’ and inserting $2,410,000,000 lack of facilities necessary to properly serve (B) an inscription of the year ‘‘2000’’; and for the fiscal year ending September 30, 1999, them; (C) inscriptions of the words ‘‘Liberty’’, and $34,000,000 for the period beginning Octo- (4) the Capitol building and persons within ‘‘In God We Trust’’, ‘‘United States of Amer- ber 1, 1999, and ending October 5, 1999.’’. the Capitol have been provided with excel- ica’’, and ‘‘E Pluribus Unum’’. (b) OBLIGATIONAL AUTHORITY.—Section lent security through the dedication and sac- (b) SELECTION.—The design for the coins 47104(c) of such title is amended by striking rifice of the United States Capitol Police; minted under this Act shall be— ‘‘August 6, 1999,’’ and inserting ‘‘October 5, (5) Congress has appropriated $100,000,000, (1) selected by the Secretary, after con- 1999,’’. to be supplemented with private funds, to sultation with the United States Capitol

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00070 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9955 Preservation Commission (in this Act re- Secretary’s desk in the Air Force, To be lieutenant general ferred to as the ‘‘Commission’’) and the Com- Army, Marine Corps, and Navy. I fur- Maj. Gen. Johnny M. Riggs, 0000 mission of Fine Arts; and ther ask unanimous consent that the The following named officer for appoint- (2) reviewed by the Citizens Commemora- nominations be confirmed en bloc, the ment in the United States Army to the grade tive Coin Advisory Committee. motion to reconsider be laid upon the indicated while assigned to a position of im- SEC. 6. ISSUANCE OF COINS. table, any statements relating to the portance and responsibility under title 10, (a) QUALITY OF COINS.—Coins minted under U.S.C., section 601: nominations be printed in the RECORD, this Act shall be issued in uncirculated and To be lieutenant general proof qualities. the President be immediately notified Maj. Gen. Daniel G. Brown, 0000 (b) MINT FACILITY.—Only 1 facility of the of the Senate’s action, and the Senate United States Mint may be used to strike then return to legislative session. The following named officer for appoint- any particular combination of denomination The PRESIDING OFFICER. Without ment in the United States Army to the grade and quality of the coins minted under this objection, it is so ordered. indicated while assigned to a position of im- Act. The nominations considered and con- portance and responsibility under title 10, U.S.C., section 601: (c) FIRST USE OF YEAR 2000 DATE.—The firmed en bloc are as follows: coins minted under this Act shall be the first To be lieutenant general REFORM BOARD (AMTRAK) commemorative coins of the United States Maj. Gen. Michael W. Ackerman, 0000 to be issued bearing the inscription of the Sylvia de Leon, of Texas, to be a Member NAVY year ‘‘2000’’. of the Reform Board (Amtrak) for a term of The following named officer for appoint- (d) PROMOTION CONSULTATION.—The Sec- five years. (New Position) ment in the United States Navy to the grade retary shall— DEPARTMENT OF DEFENSE indicated under title 10, U.S.C., section 624: (1) consult with the Commission in order F. Whitten Peters, of the District of Co- To be rear admiral to establish a role for the Commission or an lumbia, to be Secretary of the Air Force. entity designated by the Commission in the Rear Adm. (lh) Alberto Diaz, Jr., 0000 DEPARTMENT OF ENERGY promotion, advertising, and marketing of Rear Adm. (lh) Bonnie B. Potter, 0000 Curt Hebert, Jr., of Mississippi, to be a the coins minted under this Act; and The following named officer for appoint- Member of the Federal Energy Regulatory (2) if the Secretary determines that such ment in the United States Navy to the grade Commission for the term expiring June 30, action would be beneficial to the sale of indicated while assigned to a position of im- 2004. (Reappointment) coins minted under this Act, enter into a portance and responsibility under title 10, contract with the Commission or an entity THE JUDICIARY U.S.C., section 601: referred to in paragraph (1) to carry out the Charles R. Wilson, of Florida, to be United To be vice admiral role established under paragraph (1). States Circuit Judge for the Eleventh Cir- Vice Adm. Robert J. Natter, 0000 SEC. 7. SALE OF COINS. cuit. The following named officer for appoint- (a) SALE PRICE.—The coins minted under William Haskell Alsup, of California, to be ment in the United States Navy to the grade this Act shall be sold by the Secretary at a United States District Judge for the North- indicated while assigned to a position of im- price equal to the sum of— ern District of California. portance and responsibility under title 10, (1) the face value of the coins; AIR FORCE U.S.C., section 601: (2) the surcharge provided in subsection (d) The following named officer for appoint- To be vice admiral with respect to such coins; and ment in the United States Air Force to the (3) the cost of designing and issuing the grade indicated under title 10, U.S.C., section Rear Adm. Gregory G. Johnson, 0000 coins (including labor, materials, dies, use of 624: AGENCY FOR INTERNATIONAL DEVELOPMENT machinery, overhead expenses, marketing, To be brigadier general J. Brady Anderson, of South Carolina, to and shipping). be Administrator of the Agency for Inter- Col. Gary H. Murray, 0000 (b) BULK SALES.—The Secretary shall national Development. make bulk sales of the coins issued under The following named officer for appoint- DEPARTMENT OF STATE this Act at a reasonable discount. ment in the United States Air Force to the Evelyn Simonowitz Lieberman, of New (c) PREPAID ORDERS.— grade indicated while assigned to a position York, to be Under Secretary of State of Pub- (1) IN GENERAL.—The Secretary shall ac- of importance and responsibility under title cept prepaid orders for the coins minted 10, U.S.C., section 601: lic Diplomacy. (New Position) NOMINATIONS PLACED ON THE SECRETARY’S under this Act before the issuance of such To be lieutenant general coins. DESK Lt. Gen. Robert H. Foglesong, 0000 (2) DISCOUNT.—Sale prices with respect to IN THE AIR FORCE, ARMY, MARINE CORPS, NAVY prepaid orders under paragraph (1) shall be The following named officer for appoint- Air Force nominations beginning Larita A. at a reasonable discount. ment in the United States Air Force to the Aragon, and ending James J. White, which (d) SURCHARGES.—All sales under this Act grade indicated while assigned to a position nominations were received by the Senate and shall include a surcharge established by the of importance and responsibility under title appeared in the Congressional Record of Secretary, in an amount equal to not more 10, U.S.C., section 601: June 30, 1999. than— To be lieutenant general Air Force nominations beginning Milton C. (1) $50 per coin for the $10 coin or $35 per Lt. Gen. Charles R. Heflebower, 0000 Abbott, and ending Scott J. Zobrist, which coin for the $5 coin; The following named officer for appoint- nominations were received by the Senate and (2) $10 per coin for the $1 coin; and ment in the United States Air Force to the appeared in the Congressional Record of July (3) $3 per coin for the half dollar coin. grade indicated while assigned to a position 1, 1999. SEC. 8. DISTRIBUTION OF SURCHARGES. of importance and responsibility under title Army nominations beginning Richard F. All surcharges received by the Secretary 10, U.S.C., section 601: Ballard, and ending Su T. Kang, which nominations were received by the Senate and ap- from the sale of coins minted under this Act To be lieutenant general shall be deposited in the Capitol Preserva- peared in the Congressional Record of June tion Fund in accordance with section 5134(f) Lt. Gen. Lansford E. Trapp, Jr., 0000 21, 1999. of title 31, United States Code, and shall be ARMY Army nominations beginning Donald M. made available to the Commission for the The following named officer for appoint- Cinnamond, and ending George R. Silver, purpose of aiding in the construction, main- ment in the United States Army to the grade which nominations were received by the Sen- tenance, and preservation of a Capitol Vis- indicated under title 10, U.S.C., section 624: ate and appeared in the Congressional itor Center. Record of June 21, 1999. To be major general Army nominations beginning Kimberly J. f Brig. Gen. Zannie O. Smith, 0000 Ballantyne, and ending Stephen C. Ulrich, EXECUTIVE SESSION The following named officer for appoint- which nominations were received by the Sen- ment in the United States Army to the grade ate and appeared in the Congressional indicated while assigned to a position of im- Record of June 21, 1999. Army nominations beginning Denise D. EXECUTIVE CALENDAR portance and responsibility under title 10, U.S.C., section 601: Adams, and ending Tami M. Zalewski, which nominations were received by the Senate and Mr. HUTCHINSON. Mr. President, I To be lieutenant general appeared in the Congressional Record of ask unanimous consent that the Sen- Maj. Gen. Lawson W. Magruder, III, 0000 ate immediately proceed to executive June 21, 1999. The following named officer for appoint- Army nominations beginning George D. session to consider the following nomi- ment in the United States Army to the grade Lanning, and ending Gregory J. Zanetti, nations, en bloc: Executive Calendar indicated while assigned to a position of im- which nominations were received by the Sen- Nos. 96, 168, 170, 171, 174, 177 through portance and responsibility under title 10, ate and appeared in the Congressional 188, 190 and 194, all nominations on the U.S.C., section 601: Record of June 23, 1999.

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00071 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY S9956 CONGRESSIONAL RECORD — SENATE July 30, 1999 Army nominations beginning Phil C. the skills necessary to address the The PRESIDING OFFICER. Without Alabata, and ending Joseph J. Zubak, which needs of each of these entities, while objection, it is so ordered. nominations were received by the Senate and keeping the best interest of the con- The concurrent resolution (H. Con. appeared in the Congressional Record of sumer in mind. Res. 107) was agreed to. June 28, 1999. Army nominations beginning Gary W. Ace, Congress must recognize that na- The preamble was agreed to. and ending X4393, which nominations were tional electric utility deregulation is f received by the Senate and appeared in the on the horizon. How and when a new UNANIMOUS CONSENT Congressional Record of July 19, 1999. system will be created remains to be Marine Corps nominations beginning David seen. What is certain, however, is that AGREEMENT—H. CON. RES. 168 J. Abel, and ending Raymon Zapata, Jr., the FERC will be instrumental in guid- Mr. BENNETT. Mr. President, I ask which nominations were received by the Sen- ing Congress toward competition in the unanimous consent that when the Sen- ate and appeared in the Congressional ate receives receives H. Con. Res 168 Record of June 23, 1999. utility industry. I am confident that Marine Corps nominations beginning Curt has the experience and insight from the House, it be considered as Charles E. Headden, and ending Robert L. necessary to help us reach the right agreed to and the motion to reconsider Williams, which nominations were received balance of interests. Most importantly, be laid upon the table. by the Senate and appeared in the Congres- Curt understands what deregulation The PRESIDING OFFICER. Without sional Record of June 30, 1999. means at the state level. Already, Con- objection, it is so ordered. Marine Corps nominations of James R. gress has witnessed deregulation of Judkins, which was received by the Senate f several states, but Congress will value and appeared in the Congressional Record of ORDERS FOR MONDAY, AUGUST 2, the FERC’s input concerning deregula- July 14, 1999. 1999 Navy nominations beginning Michael K. tion. Abate, and ending Gregg W. Ziemke, which There is no industry as complex as Mr. BENNETT. Mr. President, I ask nominations were received by the Senate and the utility world—and none that im- unanimous consent that when the Sen- appeared in the Congressional Record of pacts the lives of Americans more diate completes its business today, it June 23, 1999. rectly every hour of every day. The stand in adjournment until noon on Navy nominations of Laurel A. May, which challenges ahead are great and must be Monday, August 2. was received by the Senate and appeared in I further ask that when the Senate the Congressional Record of June 28, 1999. tackled head on. There is no denying Navy nominations beginning Dean D. that the FERC Commissioners have reconvenes on Monday, immediately Hager, and ending David F. Sanders, which their work cut out for them. following the prayer, the routine re- nominations were received by the Senate and I have enjoyed working with Curt, quests through the morning hour be appeared in the Congressional Record of July and spending time with his wife, Vir- granted and the Senate then proceed to 14, 1999. ginia, and their two children, Lane and a period of morning business until 1 Navy nominations beginning Scott R. Ashley. They are an authentic, Mis- p.m., with Senators to speak therein Barry, and ending Charles L. Taylor, which for up to 5 minutes each, with the fol- nominations were received by the Senate and sissippi family. appeared in the Congressional Record of July I am pleased that the Senate has lowing exceptions: Senator THOMAS for 21, 1999. unanimously confirmed Curt Hebert as up to 30 minutes, and Senator Navy nominations beginning Lloyd B.J. a member of the FERC, thus ensuring DASCHLE, or his designee, for up to 30 Callis, and ending Michelle L. Wulff, which that the future of the electric utility minutes, beginning at noon on Monday. nominations were received by the Senate and industry is in good hands. I congratu- Mr. President, I further ask unani- appeared in the Congressional Record of July late him on this accomplishment and mous consent that, at 1 p.m., the Sen- 21, 1999. wish him the best of luck in the future. ate proceed to S. 335, regarding sweep- NOMINATION OF CURTIS L. HEBERT, JR. stakes, under the previous order, with f Mr. LOTT. Mr. President, today the a vote to occur on passage of the bill at Senate is returning a very distin- LEGISLATIVE SESSION 5:30 p.m. on Monday. guished and qualified Commissioner The PRESIDING OFFICER. Under The PRESIDING OFFICER. Without back to the Federal Energy Regulatory the previous order, the Senate will now objection, it is so ordered. Commission. I am pleased that my return to legislative session. f good friend Curtis L. Hebert, Jr. of Pascagoula, Mississippi is that Com- f UNANIMOUS CONSENT missioner. REJECTING THE CONCLUSIONS OF AGREEMENT—S. 1233 As a former member of the Senate THE PSYCHOLOGICAL BULLETIN Mr. BENNETT. Mr. President, I ask Energy and Natural Resources Com- Mr. HUTCHINSON. Mr. President, I unanimous consent that the Senate mittee, I appreciate the high standard ask unanimous consent that H. Con. proceed to the Agriculture Appropria- that FERC nominees are held to during Res. 107 be discharged from the HELP tions bill, S. 1233, at 3 p.m. on Monday. committee consideration. Throughout Committee and, further, that the Sen- The PRESIDING OFFICER. Without Curt’s nearly two-year tenure as a ate proceed to its immediate consider- objection, it is so ordered. FERC Commissioner, he demonstrated ation. f that he has not only the knowledge, The PRESIDING OFFICER. Without PROGRAM but the determination and skills to get objection, it is so ordered. The clerk the job done. He has been a responsible will report the concurrent resolution Mr. BENNETT. Mr. President, for the and able federal steward of the utility by title. information of all Senators, when the industry across the United States. I ex- The legislative clerk read as follows: Senate reconvenes on Monday, there pect that he will continue to serve the will be an hour for morning business, FERC and our nation with the same A concurrent resolution (H. Con. Res. 107) expressing the sense of Congress rejecting to be followed by 2 hours for debate on enthusiasm and foresight. the conclusions of a recent article published the sweepstakes bill. At 3 p.m. on Mon- Before Curt came to Washington, he in the Psychological Bulletin, a journal of day, the Senate will resume the Agri- served the state of Mississippi as a the American Psychological Association, culture Appropriations bill, and the member and a chair of the Public Serv- that suggests that sexual relationships be- next rollcall vote will occur at 5:30 p.m. ice Commission for several years. Dur- tween adults and children might be positive Monday, August 2, on passage of S. 335. ing that time, he demonstrated the for children. Additional votes could occur relative ability to balance the diverse utility There being no objection, the Senate to the Agriculture Appropriations bill. interests in our state. This was no easy proceeded to consider the concurrent f task. Mississippi is the home to both resolution. public and private power companies, Mr. HUTCHINSON. I ask unanimous ADJOURNMENT UNTIL MONDAY, PUHCAs and providers of all sizes. Curt consent that the resolution be agreed AUGUST 2, 1999 was also my representative in the Mis- to, the preamble be agreed to, and the Mr. BENNETT. Mr. President, if sissippi legislature, where he did an ex- motion to reconsider be laid upon the there is no further business to come be- cellent job. Curt has proven that he has table. fore the Senate, I now ask that the

VerDate Mar 15 2010 23:06 Nov 01, 2013 Jkt 081600 PO 00000 Frm 00072 Fmt 0624 Sfmt 0634 E:\1999SENATE\S30JY9.REC S30JY9 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 30, 1999 CONGRESSIONAL RECORD — SENATE S9957 Senate stand in adjournment under the THE FOLLOWING NAMED OFFICER FOR APPOINTMENT WERE RECEIVED BY THE SENATE AND APPEARED IN THE IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- CONGRESSIONAL RECORD ON JUNE 30, 1999. previous order. CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE AIR FORCE NOMINATIONS BEGINNING MILTON C. AB- There being no objection, the Senate, AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION BOTT, AND ENDING SCOTT J. ZOBRIST, WHICH NOMINA- 601: TIONS WERE RECEIVED BY THE SENATE AND APPEARED at 3:37 p.m., adjourned until Monday, IN THE CONGRESSIONAL RECORD ON JULY 1, 1999. August 2, 1999, at 12 noon. To be lieutenant general LT. GEN. CHARLES R. HEFLEBOWER, 0000. IN THE ARMY f THE FOLLOWING NAMED OFFICER FOR APPOINTMENT ARMY NOMINATIONS BEGINNING RICHARD F. BALLARD, IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- AND ENDING SU T. KANG, WHICH NOMINATIONS WERE RE- NOMINATIONS CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE CEIVED BY THE SENATE AND APPEARED IN THE CON- AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION Executive nominations received by 601: GRESSIONAL RECORD ON JUNE 21, 1999. ARMY NOMINATIONS BEGINNING DONALD M. the Senate July 30, 1999: To be lieutenant general CINNAMOND, AND ENDING GEORGE R. SILVER, WHICH DEPARTMENT OF HOUSING AND URBAN NOMINATIONS WERE RECEIVED BY THE SENATE AND AP- LT. GEN. LANSFORD E. TRAPP, JR., 0000. DEVELOPMENT PEARED IN THE CONGRESSIONAL RECORD ON JUNE 21, IN THE ARMY 1999. SUSAN M. WACHTER, OF PENNSYLVANIA, TO BE AN AS- ARMY NOMINATIONS BEGINNING KIMBERLY J. SISTANT SECRETARY OF HOUSING AND URBAN DEVEL- THE FOLLOWING NAMED OFFICER FOR APPOINTMENT BALLANTYNE, AND ENDING STEPHEN C. ULRICH, WHICH OPMENT, VICE MICHAEL A. STEGMAN, RESIGNED. IN THE UNITED STATES ARMY TO THE GRADE INDICATED NOMINATIONS WERE RECEIVED BY THE SENATE AND AP- OVERSEAS PRIVATE INVESTMENT CORPORATION UNDER TITLE 10, U.S.C., SECTION 624: PEARED IN THE CONGRESSIONAL RECORD ON JUNE 21, To be major general 1999. ZELL MILLER, OF GEORGIA, TO BE A MEMBER OF THE ARMY NOMINATIONS BEGINNING * DENISE D. ADAMS, BOARD OF DIRECTORS OF THE OVERSEAS PRIVATE IN- BRIG. GEN. ZANNIE O. SMITH, 0000. AND ENDING * TAMI M. ZALEWSKI, WHICH NOMINATIONS VESTMENT CORPORATION FOR A TERM EXPIRING DE- WERE RECEIVED BY THE SENATE AND APPEARED IN THE CEMBER 17, 2000, VICE SIMON FERRO, TERM EXPIRED. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT CONGRESSIONAL RECORD ON JUNE 21, 1999. IN THE UNITED STATES ARMY TO THE GRADE INDICATED ARMY NOMINATIONS BEGINNING GEORGE D. LANNING, f WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND AND ENDING GREGORY J. ZANETTI, WHICH NOMINATIONS RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: CONFIRMATIONS WERE RECEIVED BY THE SENATE AND APPEARED IN THE To be lieutenant general CONGRESSIONAL RECORD ON JUNE 23, 1999. Executive Nominations Confirmed by the ARMY NOMINATIONS BEGINNING PHIL C. ALABATA, MAJ. GEN. LAWSON W. MAGRUDER III, 0000. AND ENDING JOSEPH J. ZUBAK, WHICH NOMINATIONS Senate July 30, 1999: WERE RECEIVED BY THE SENATE AND APPEARED IN THE THE FOLLOWING NAMED OFFICER FOR APPOINTMENT CONGRESSIONAL RECORD ON JUNE 28, 1999. REFORM BOARD (AMTRAK) IN THE UNITED STATES ARMY TO THE GRADE INDICATED ARMY NOMINATIONS BEGINNING GARY W. ACE, AND WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND SYLVIA DE LEON, OF TEXAS, TO BE A MEMBER OF THE ENDING X4393, WHICH NOMINATIONS WERE RECEIVED BY RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: REFORM BOARD (AMTRAK) FOR A TERM OF FIVE YEARS. THE SENATE AND APPEARED IN THE CONGRESSIONAL DEPARTMENT OF DEFENSE To be lieutenant general RECORD ON JULY 19, 1999. MAJ. GEN. JOHNNY M. RIGGS, 0000. F. WHITTEN PETERS, OF THE DISTRICT OF COLUMBIA, IN THE MARINE CORPS TO BE SECRETARY OF THE AIR FORCE. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT MARINE CORPS NOMINATIONS BEGINNING DAVID J. IN THE UNITED STATES ARMY TO THE GRADE INDICATED DEPARTMENT OF ENERGY ABEL, AND ENDING RAYMON ZAPATA, JR, WHICH NOMI- WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND NATIONS WERE RECEIVED BY THE SENATE AND AP- CURT HEBERT, JR., OF MISSISSIPPI, TO BE A MEMBER RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: OF THE FEDERAL ENERGY REGULATORY COMMISSION PEARED IN THE CONGRESSIONAL RECORD ON JUNE 23, FOR THE TERM EXPIRING JUNE 30, 2004. To be lieutenant general 1999. MARINE CORPS NOMINATIONS BEGINNING CHARLES E. MAJ. GEN. DANIEL G. BROWN, 0000. AGENCY FOR INTERNATIONAL DEVELOPMENT HEADDEN, AND ENDING ROBERT L. WILLIAMS, WHICH J. BRADY ANDERSON, OF SOUTH CAROLINA, TO BE AD- THE FOLLOWING NAMED OFFICER FOR APPOINTMENT NOMINATIONS WERE RECEIVED BY THE SENATE AND AP- MINISTRATOR OF THE AGENCY FOR INTERNATIONAL DE- IN THE UNITED STATES ARMY TO THE GRADE INDICATED PEARED IN THE CONGRESSIONAL RECORD ON JUNE 30, VELOPMENT. WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND 1999. RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: DEPARTMENT OF STATE THE FOLLOWING NAMED OFFICER FOR APPOINTMENT To be lieutenant general TO THE GRADE INDICATED IN THE UNITED STATES MA- EVELYN SIMONOWITZ LIEBERMAN, OF NEW YORK, TO RINE CORPS UNDER TITLE 10, U.S.C., SECTION 624: BE UNDER SECRETARY OF STATE FOR PUBLIC DIPLO- MAJ. GEN. MICHAEL W. ACKERMAN, 0000. MACY. NAVY To be major THE ABOVE NOMINATIONS WERE APPROVED SUBJECT JAMES R. JUDKINS, 0000. TO THE NOMINEES’ COMMITMENT TO RESPOND TO RE- THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY IN THE UNITED STATES NAVY TO THE GRADE INDICATED CONSTITUTED COMMITTEE OF THE SENATE. UNDER TITLE 10, U.S.C., SECTION 624: NAVY THE JUDICIARY To be rear admiral NAVY NOMINATIONS BEGINNING MICHAEL K. ABATE, AND ENDING GREGG W. ZIEMKE, WHICH NOMINATIONS CHARLES R. WILSON, OF FLORIDA, TO BE UNITED REAR ADM. (LH) ALBERTO DIAZ, JR., 0000. WERE RECEIVED BY THE SENATE AND APPEARED IN THE STATES CIRCUIT JUDGE FOR THE ELEVENTH CIRCUIT. REAR ADM. (LH) BONNIE B. POTTER, 0000. CONGRESSIONAL RECORD ON JUNE 23, 1999. WILLIAM HASKELL ALSUP, OF CALIFORNIA, TO BE THE FOLLOWING NAMED OFFICER FOR APPOINTMENT THE FOLLOWING NAMED OFFICER FOR APPOINTMENT UNITED STATES DISTRICT JUDGE FOR THE NORTHERN IN THE UNITED STATES NAVY TO THE GRADE INDICATED TO THE GRADE INDICATED IN THE UNITED STATES NAVY DISTRICT OF CALIFORNIA. WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND UNDER TITLE 10, U.S.C., SECTION 624: IN THE AIR FORCE RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: To be commander THE FOLLOWING NAMED OFFICER FOR APPOINTMENT To be vice admiral IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- VICE ADM. ROBERT J. NATTER, 0000. LAUREL A. MAY, 0000. CATED UNDER TITLE 10, U.S.C., SECTION 624: NAVY NOMINATIONS BEGINNING DEAN D. HAGER, AND To be brigadier general THE FOLLOWING NAMED OFFICER FOR APPOINTMENT ENDING DAVID F. SANDERS, WHICH NOMINATIONS WERE IN THE UNITED STATES NAVY TO THE GRADE INDICATED RECEIVED BY THE SENATE AND APPEARED IN THE CON- COL. GARY H. MURRAY, 0000. WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND GRESSIONAL RECORD ON JULY 14, 1999. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: NAVY NOMINATIONS BEGINNING SCOTT R. BARRY, AND IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- To be vice admiral ENDING CHARLES L. TAYLOR, WHICH NOMINATIONS CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE WERE RECEIVED BY THE SENATE AND APPEARED IN THE AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION REAR ADM. GREGORY G. JOHNSON, 0000. CONGRESSIONAL RECORD ON JULY 21, 1999. 601: IN THE AIR FORCE NAVY NOMINATIONS BEGINNING LLOYD B. J. CALLIS, To be lieutenant general AND ENDING MICHELLE L. WULFF, WHICH NOMINATIONS AIR FORCE NOMINATIONS BEGINNING LARITA A. ARA- WERE RECEIVED BY THE SENATE AND APPEARED IN THE LT. GEN. ROBERT H. FOGLESONG, 0000. GON, AND ENDING JAMES J. WHITE, WHICH NOMINATIONS CONGRESSIONAL RECORD ON JULY 21, 1999.

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