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CONGRESSIONAL RECORD—SENATE November 7, 2001

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CONGRESSIONAL RECORD—SENATE November 7, 2001 21930 CONGRESSIONAL RECORD—SENATE November 7, 2001 (ii) can or is required to be directly col- ing 0.4 percent in the third quarter—a key criteria for stimulus proposals: lected by retail sellers from purchasers of one-third decline in spending this sea- they should take effect quickly, pro- such property, son could be detrimental. mote new spending or investment that (B) a use tax, or Clearly, we need to take action to re- otherwise would not occur, and do no (C) the Illinois Retailers’ Occupation Tax, as defined under the law of the State of Illi- store this confidence in the economy, long-term damage.’’ nois, and tell consumers that ‘‘Help is on the Our plan fits the bill and makes per- but excludes any tax payable with respect to way.’’ As Lynn Franco, director of The fect sense—and will pay off for con- food and beverages sold for immediate con- Conference Board Consumer Research sumers with more dollars and cents in sumption on the premises, beverages con- Center said recently, ‘‘Widespread lay- their pockets. What better signal of taining alcohol, and tobacco products. offs and rising unemployment do not holiday cheer and confidence than to (4) SALES TAX HOLIDAY PERIOD.—The term signal a rebound in confidence anytime include a savings on every purchase, ‘‘sales tax holiday period’’ means the period soon. With the holiday season quickly enticing consumers back into the beginning after November 22, 2001, and end- stores and giving a much-needed boost ing before December 3, 2001. approaching, there is little positive stimuli on the horizon.’’ to our economy? (5) SECRETARY.—The term ‘‘Secretary’’ As we approach this holiday season, means the Secretary of the Treasury. Indeed, the signs are ominous. Ac- (6) STATE.—The term ‘‘State’’ means any of cording to the National Governors As- rather than being ‘‘a day late and a the several States, the District of Columbia, sociation, dollar Christmas sales may dollar short’’ in helping consumers and or the Commonwealth of Puerto Rico. actually fall below last year—which stimulating the economy, we should (7) USE TAX.—The term ‘‘use tax’’ means a would be the first decline since Christ- pass this legislation and give America tax imposed on the storage, use, or other mas of 1953, in the wake of the Korean the gift of an immediate boost to our consumption of tangible property that is not War. economic strength and well-being. subject to sales tax. Our Sales Tax Holiday Act of 2001 I thank the Chair. Ms. SNOWE. Madam President, I rise will provide that positive stimuli at a By Mr. CAMPBELL: today with Senator MURRAY and our critical time when consumers need the other colleagues to introduce the Sales S. 1644. A bill to further the protec- help most. Holiday sales make up one- tion and recognition of veterans’ me- Tax Holiday Act of 2001. fifth, 22.8 percent, of annual consumer Since last Wednesday, when Senators morials, and for other purposes; to the spending, so we will target our bill di- MURRAY, LIEBERMAN and I first pub- Committee on Veterans’ Affairs. rectly toward these sales. States that lically raised the idea of a national f opt to participate by rolling back their sales tax holiday, this exciting and in- sales tax will be ‘‘held harmless’’ for PROTECTING THE SITES HON- novative concept has truly taken root. their decisions, with reimbursement ORING THOSE WHO PROTECT US Indeed, the idea of a sales tax holiday made by the Federal Government for has been supported by economists and Mr. CAMPBELL. Madam President, editorial writers alike and from all lost sales tax revenue. This revenue today, 4 days before Veterans Day, I in- across the political spectrum—from will be replaced on a timely basis so troduce legislation that would recog- Alan Blinder, former Vice Chairman of that States’ cash flows are not af- nize and protect the sanctity of vet- the Federal Reserve Bank to Grover fected, with States opting to be reim- erans’ memorials. Currently, there is Norquist, President of Americans for bursed for lost revenue based on a for- no comprehensive Federal law to pro- Tax Reform. So we are talking about a mula which is based on historical De- tect veterans’ memorials, which is why bipartisan bill with support as wide as cember sales tax revenue, or opting to I am introducing the Veterans’ Memo- it is deep. receive dollar for dollar reimbursement rial Preservation and Recognition Act And one thing everyone agrees on is based on actual sales. States will have of 2001. that our National Sales Tax Holiday to choose which method of reimburse- My bill would prohibit the desecra- legislation offers the ultimate eco- ment they would like to receive prior tion of veterans’ memorials, provide nomic stimulus, literally feeding Fed- to implementation of the sales tax hol- for repairs of veterans memorials and eral stimulus dollars directly into the iday. permit guide signs to veterans’ ceme- economy. We believe that this direct Forty-five States, and the District of teries on Federal-aid highways. approach is perhaps the most imme- Columbia will be eligible to participate Under this legislation, someone who diate, fair, and responsible approach in our plan, with an estimated overall willfully desecrates any type of monu- that will have the most stimulative ef- economic impact of about $6.5 billion ment commemorating those in the fect on the economy. for the 10-day sales tax holiday. Need- Armed Forces on public property would With December fast approaching, we less to say, no State would be required be fined or put in jail. The violator need to give a ‘‘shot in the arm’’ to our to take action, but we think they de- would be subject to a civil penalty in economy and help restore the con- serve to have the option. addition to the fine, equal to the cost fidence of consumers, because we have This is a proven approach that can of repairing the damage. seen a dramatic and negative reaction dramatically boost sales. When Mary- The funds generated by these pen- to the events of September 11. In fact, land and the District of Columbia tried alties would then go into a Veterans’ the Conference Board’s first report on sales tax holidays last August, for ex- Memorial Restoration Fund, estab- consumer confidence since the attacks ample, monthly sales jumped by 10 per- lished by the Secretary of Veterans’ showed the steepest two-month drop cent. One retailer even saw sales jump Affairs, to make those monies avail- since the 1980 recession—and con- 35 percent over the same period a year able for the repair of the damaged me- fidence has plummeted to the lowest ago. And the Wall Street Journal in morials. But the vandals won’t be the level in 7 years, since 1994, even as con- 1997 reported that a survey of 102 stores only ones contributing to the fund; in- sumer spending dropped 1.8 percent in in the New York City metropolitan dividuals and veterans’ organizations September, the first decline in 21⁄2 area averaged 125 percent increases in could also make donations and get a years and the biggest spending drop sales during the region’s January sales charitable contribution deduction. In since 1987. tax holiday on most clothing and foot- essence, this would be a new way to According to a survey released yes- wear. provide for the repair of veterans’ me- terday by the Credit Union National The fact is, this is an approach that morials without any new appropriation Association and the Consumer Federa- fulfills every one of the principles for a or providing other Federal funding. tion of America, almost one-third, 28 stimulus that the Centrist Coalition I The second part of this bill would percent, of those surveyed plan to cochair laid out earlier this month. permit states to place supplemental spend less this year than last. With the And as the Los Angeles Times reported guide signs for veterans’ cemeteries on economy already on the brink of a re- on October 12, ‘‘in the view of many Federal-aid highways. These veterans’ cession following the attacks—includ- economists—conservative as well as cemeteries deserve recognition; by al- ing economic growth actually declin- liberal—most plans fall short of the lowing signs to be posted, we pay our VerDate Aug 04 2004 08:51 Aug 15, 2005 Jkt 089102 PO 00000 Frm 00049 Fmt 0686 Sfmt 0634 E:\BR01\S07NO1.001 S07NO1 November 7, 2001 CONGRESSIONAL RECORD—SENATE 21931 respect to these sites by offering direc- have the support of several veterans’ Memorials to the men and women who tion to them. It is my goal to make organizations, who have offered words have served this Nation, in times of war and these important sites easily accessible. of encouragement for this bill. These in times of peace, are tokens of our gratitude Our veterans, living and lost, are a for their service, and their sacrifice. They Americans know, firsthand, the con- are tangible reminders of our past, and an in- reminder of our unity. Those who cept of service. Let’s honor what they spiration for our future. For this reason they served in our Armed Services are more and thousands of others have done to are well worth protecting and preserving. than just symbols of freedom and jus- preserve our freedom. This legislation addresses both of these tice in the midst of conflict and during Madam President, I thank the Chair goals. times of peace. and ask unanimous consent that let- Again, thank you for introducing the ‘‘Vet- They are real people, integral to our ters of support from the American Le- erans’ Memorial Preservation and Recogni- tion Act of 2001.’’ entire population, who enrich our day- gion, Rolling Thunder, Inc., and the Sincerely, to-day lives with their proud service, Paralyzed Veterans of America be RICHARD B.
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